1、Proya Cosmetics Co., Ltd.Reporting PeriodScope of ReportingInformation ReportedForm of ReportingBasis for Report PreparationThis Report is the first sustainability report issued by Proya Cosmetics Co., Ltd. to stakeholders. The information and performance con-tained in the report are mainly for the

2、period from 1 January, 2020 to 31 December, 2020. Part of the information and performance may relate to previous years or reflect the policies and practices in 2021.This Report covers the environmental, social and corporate governance responsibilities of Proya Cosmetics Co., Ltd.hereinafter(re-ferre

3、d to as “Proya” or the “Company” or “We”).All information and data disclosed in this Report are derived from the official documents, statistical reports and annual reports of Proya Cosmetics Co., Ltd. The Board of Directors and all directors of the Company warrant that there are no false records, mi

4、sleading statements or major omissions in this Report and will be individually and jointly liable for its authenticity, accuracy and completeness. The financial data in this Report is in RMB. In case of any discrepancy with any financial report, the financial report shall prevail.This Report is rele

5、ased in electronic format. You can access it on our official website（www.proya-）About this ReportGB/T 36001-2015 Guidance on Social Responsibility Reporting ISO 26000:2010 Guidance on Social ResponsibilityThe United Nations 2030 Sustainable Development Goals (SDGs)Sustainability Reporting Standards

6、by Global Sustainability Standard Board (GRI Standards)CASS-CSR 4.0SSE Guidelines for the Preparation of Reports on the Performance of Social Responsibility by Companies SSE Guidelines for Environmental Information Disclosure by Listed Companies010203Green Intelligent Manufacturing: Creating an Eco-

7、Friendly Production ProcessGreen Procurement: Sustainable Raw Material SourcingGreen Logistics: Reducing Carbon FootprintGreen Office: Promoting Low-Carbon LifestyleGreen Charity: Contributing to a Circular Economy1013141515Messages from Co-foundersKey Performance HighlightsIndicators and StandardsF

8、eedback QuestionnaireAbout this ReportA Focus on Responsibility: Joint Efforts to Fight COVID-19About Proya090602038Sincere Service, Customer FirstPeople Oriented Continued Focus on Employee DevelopmentBe Open-minded and Collaborative to Sustain Healthy Industry GrowthSupporting Charities

9、 and Communities17212627Improving Corporate GovernanceImproving Disclosure QualityStrengthening Investors Relationship ManagementTightening Risk and Compliance ManagementIntellectual PropertyAnti-corruption292930303031ContentsSustainability ManagementEnvironmentalSocialGovernanceSupporting Heroes Wh

10、o Put Themselves in the FrontlineAfter the sudden outbreak of the COVID-19 Pandemic, we responded quickly by comprehensive planning of COVID-19 prevention and control and business operation, orderly arranging for the resumption of work and production. In 2020, Proya succeeded in ensuring no confirme

11、d case, suspected case or employee put in hospital under observation within the Company. While protecting the health of our employees and partners, we actively supported the battle against COVID-19 by contributing money and medical supplies, in a move to fight together with those heroes in the front

12、line and contribute to global COVID-19 prevention and control.Building a New Green EcologyResponsibility begins with the idea. Proya has always adhered to the idea of development of harmonious coexistence between man and nature and has integrated the idea of green development in the whole life cycle

13、 of its products. In 2020, we actively responded to the call for “peak carbon dioxide emis-sions” and “carbon neutrality” by continuing focusing on environmental management, practiced acts such as green intelligent manufacturing, green purchasing, and green logistics, and making useful trials in usi

14、ng clean energy, further controlling energy consumption and further managing sustainable management. While promoting environmentally-friendly production and operation modes, we also encourage consumers and the general public to prac-tice green consumption and concern ecological balance and environme

15、ntal protection so as to jointly build a green ecology for the sustainable develop-ment of man and nature.Adhering to People Orientation, Honesty and GratefulnessResponsibility is integrated into the business. Proya has always been adhering to the development principle of people-orientation, honesty

16、 and grateful-ness. We fully protected the basic rights and interests of our employees and further improved their career development path, so that every employee can harvest growth and realize personal value in a sound and safe working environment. In 2020, we actively undertook industry and social

17、responsibilities by carrying out continuous diversified cooperation with partners in and out of the industry, strengthening collaboration and innovation, jointly promoting industry development and progress, continuing focusing on public services, taking practical actions to assume corporate social r

18、esponsibility, contribute to the society, and work together to create a better life.Improving Corporate GovernanceWe continued optimizing our corporate governance and internal control system, thoroughly implemented the product-driven strategy, continuously improved our independent innovation capacit

19、y and scientific research competitiveness, actively promoted industry digitalization and intellectualization, and practiced the life cycle digital management to build a comprehensive, efficient and reliable product quality system. By continuously upgrading the product system, we have been committed

20、to providing customers with better products and excellent services, contributing to the sustainable develop-ment of the industry.Outlook 2021The year 2021 marks the launch of Chinas “14th Five-Year Plan” and achieving the second centenary goal, and also a key year for us to work towards a faster upg

21、rade, deepen the organizational reform, and achieve higher-quality development. After 18 years development, Proya is still at our marvelous time of making progress. In the pursuit and building of the dream of beauty, standing at a new historical starting point, we will continue upholding the corpora

22、te spirit of diligence, pragmatism, passion, initiative, honesty, and gratitude, carrying out the “6*N” development strategy, and working together with all sides to build a new national beauty industry platform with sound operation, high quality products, excellent service and solid development re-s

23、ults, and devoting ourselves to becoming a world-class beauty company!The year 2020 was an eventful year. In the face of the sudden outbreak of the COVID-19 Pandemic, the Company united all efforts throughout the Company to overcome the difficulty, in a way to interpret responsibility as perseveranc

24、e and dedication and continue optimizing the corporate governance and promoting the Company to develop towards overall high quality.Messages from Co-foundersMessages from Co-foundersProya Cosmetics Co., Ltd. Sustainability Report 202001The Spring Festival of China in 2020 was special. The outbreak o

25、f the COVID-19 Pandemic (hereinafter referred to as the “COVID-19”) concerned everyone. As a company with a mission of ever-lasting beauty and sharing happiness, Proya quickly responded to the gov-ernments COVID-19 prevention and control policies by comprehensively implementing COVID-19 prevention a

26、nd control measures, guaranteeing the lives and health of employees, steadily advancing resumption of work and production, actively undertaking social re-sponsibility, and contributing money and medical supplies to fight COVID-19. As of 31 December, 2020, the Company had donated RMB 15,106,453 in to

27、tal to the hospitals and charity associations in different provinces and cities and was therefore honored by the Wuhan Charity Federation of Hubei Province, the Zhong Nanshan Medical Foundation of Guangdong Province, and Zhejiang Federation of In-dustry and Commerce with the title of Outstanding Con

28、tribution to COVID-19 Prevention and Control and Great Zhejiang Entrepreneur for COVID-19 Control.Joint Efforts to Fight COVID-19A Focus on ResponsibilityAfter the outbreak of COVID-19, the Company immediately es-tablished the Special Leading Group for Response to COVID-19 under the command of Fang

29、Yuyou, the Co-founder and CEO. The Special Group contacted the Wuhan Red Cross to learn about actual needs and organized overseas teams to purchase from European countries medical supplies urgently needed in the frontline. On this basis, the Company set up an RMB 15 million charity fund for the purc

30、hase of medical supplies, cash donations and funding for employees, partners and family members.Setting up an RMB 15 Million Charity Fund to Fully Support COVID-19 Prevention and Control02A Focus on Responsibility: Joint Efforts to Fight COVID-19Proya Cosmetics Co., Ltd. Sustainability Report 202003

31、A Focus on Responsibility: Joint Efforts to Fight COVID-19Proya Cosmetics Co., Ltd. Sustainability Report 2020The Company donated RMB 3 million to Wu-han Charity Federation to support Wuhans COVID-19 prevention and control.The Company donated RMB 1 million to Wen-zhou Charity Federation and Yueqing

32、Charity Federation to support Wenzhous COVID-19 prevention and control.The Company purchased approximately 90,000 EN N95 or above masks 20,000 disposable medical masks from Europe to be donated to the Second Peoples Hospital of Xishui County, Huanggang, Hubei Province and Hubei Charity Federation.Th

33、e Company launched a public activity themed with #You behind Masks# on Weibo, in a move to encourage netizens to post their pic-tures of half taking off masks, paying tribute to all those heroes who put themselves in harms way, and express the hope for an early end of COVID-19.The Company donated mo

34、re than 200,000 disposable medical masks to the Fosun Foun-dation for use in a European COVID-19 control project and directed donations to 9 institutions in France, Italy, and Spain.Secretary General of LVMH Group, Chairman of La Cosmetic Valley, and Mayor of Val de Reuil, expressed their sincere gr

35、atitude to the Company and offered a Medal of Honor to Chair-man, Hou Juncheng.The Company donated nearly RMB 1 million rinsing-free hands sanitizer to China Children and Teenagers Foundation, for use in the Foundations Sunflower Project Love Fund project to ensure the healthy growth of young people

36、 and children.The Company initiated the Deep Ocean Energy Action, whereby to donate RMB 1.5 million (retail price) of personal care products together with the Huzhou Red Cross, including Deep Ocean Energy Wrinkless And Firming Essence, repair mask, hand cream, wash care, and rinsing-free hands sanit

37、izer, to 10 hospitals in Huzhou.Through the ZHONGNANSHAN MEDICAL FOUN-DATION OF GUANGDONG PROVINCE, the Com-pany effectuated the Deep Ocean Energy Action whereby to donate the second batch of RMB 6 million (retail price) personal care products to Hubei, including Deep Ocean Energy Wrinkless And Firm

38、ing Essence, repair mask, hand cream, wash care, and rinsing-free hands sanitizer.202001/27202002/04202002/01202002/26202003/04202003/08202005/1420200504A Focus on Responsibility: Joint Efforts to Fight COVID-19Proya Cosmetics Co., Ltd. Sustainability Report 2020Allowing for the new situation of COV

39、ID-19 prevention and control and the Companys business development plan-ning, the Company made the most of its professional advantages by adding med-ical equipment and disinfection prod-ucts and launching products designed for the circumstances, including Proya Anti-sensitive Repair Series (for “fac

40、es with masks”), Proya Rinsing-free Hands Sanitizer, and Proya alcohol disinfectant spray.At the early stage of the COVID-19, medical supplies were in short supply. While doing its prevention, the Company provided products including Rinsing-free Hands Sanitizer to of-fline dealers and other partners

41、 to assist them in COVID-19 prevention and control.Proya Anti-sensitive Repair Series for Faces with MasksProya Rinsing-free Hands Sanitizer1 with 99.99% Effective SterilizationAs of 31 December, 2020, the Company had purchased pandemic prevention materials including over 200,000 face masks, over 20

42、,000 protective gloves, goggles, protective clothing, disposable hats, forehead thermometers, forehead temperature scanners, rinsing-free hands sanitizer, dynalysors, and alco-hol sterilizers.Development of new anti-COVID-19 productsFree gift of Rinsing-free Hands SanitizerUndertaking Responsibility

43、 as a Backbone in COVID-19 PreventionThe Company attached great importance to COVID-19 prevention and control. During the pandemic, the Special Leading Group for Response to COVID-19 made timely sharing of COVID-19 developments and prevention and control measures released by the competent national a

44、uthorities. The Company made preparations in advance for resumption of work and production, including advocating working on site, working at home in different places, and teleconference; responding to the call of the local government for disinfection and protection in office space and distribution o

45、f face masks to employees every day; regularly keeping track of employees who had travelled to or from severely hit regions and remind-ing employees to take precautions.Proyas Headquarters and Huzhou production base were among the first to resume work and production in Xihu District, Hangzhou and Hu

46、zhou respectively. As of 8 April, the Com-pany provided free nucleic acid tests and quarantine accommodation to the last batch of employees from Wuhan, bringing 100% employees back to work.Fighting COVID-19 Scientifically and Promoting Resump-tion of Work and Production in OrderThe Companys First Ba

47、tch of Employees Resume Work against COVID-19 1During the COVID-19, anti-epidemic products such as “disinfecting hand sanitizer” were urgently launched to better help employees, distributors and other stakeholders, and non-marketed products.05A Focus on Responsibility: Joint Efforts to Fight COVID-1

48、9Proya Cosmetics Co., Ltd. Sustainability Report 2020The Company disinfected the public areas including office, canteens, exhibition halls and elevators on an hourly basis; provided tissues for public buttons in the elevator hall; checked the temperature and health code of all persons entering build

49、ings every day, and disinfected incoming and outgoing vehicles one by one; provided hand sanitizers and alcohol at every floor. Implementing strict management to build Proyas defense line against COVID-19Dining in turn, allowing for nutrition and safetyIn order to prevent cross-infection and satisfy

50、 the needs of employees for balanced nu-trition, every day, the Company provided employees in turn with free meals, with three dishes and one soup each meal.COVID-19 prevention publicity and mass prevention and controlThe Company specially prepared the guidelines for COVID-19 prevention, covering em

51、-ployee gathering and dining required for daily travel, transportation and work. The Com-pany also pasted tips on COVID-19 prevention in public areas of buildings and placed COVID-19 prevention posters at the gates.Purchasing heart-warming bags for volunteers in the frontlineFor anti-COVID-19 during

52、 the Spring Festival, Proyas Party branch members donated money to community volunteers for them to purchase heart-warming bags (including heating pads, Vitamin C effervescent tablets, and disposable gloves).Donating blood without compensation to address clinical blood de-mandsIn July 2020, employee

53、s were organized to help prevent and control COVID-19 by donat-ing blood without compensation to ensure clinical blood demands for the fight against COVID-19.06About ProyaProya Cosmetics Co., Ltd. Sustainability Report 2020The Company is committed to building a new domestic beauty industry platform,

54、 mainly engaged in the research and development, production and sales of beauty and personal care products. It mainly owns “Proya”, “Hapsode”, “TIMAGE”, “INSBAHA”, and “CORRECTORS” brands. At present, the Companys brands have covered the beauty fields such as popular exquisite skin care, make-up and

55、 high-efficacy skin care products:Company ProfileAbout ProyaPopular exquisite skin care brandMake-up brandHigh-efficacy skin care brandProya, focusing on technology skin care for young white-collar women. The main price range is RMB 100-300. This brand is sold both online and offline.Hapsode, specia

56、lly tailored for young skin, is aimed at students and young women in small towns. The main price range is RMB 50-100. This brand is sold mainly online.TIMAGE is a professional make-up brand for new Chinoiserie dressers. The main price range is RMB 150-200. This brand is sold online.INSBAHA is a punk

57、 style make-up brand for the minority. The main price range is RMB 50-150. This brand is sold online.CORRECTORS is a high-efficiency skin care brand. The main price range is RMB 260-600. This brand is sold online.Principal business07About ProyaProya Cosmetics Co., Ltd. Sustainability Report 2020Corp

58、orate MissionDevelopment StrategyCorporate CultureCorporate VisionCorporate EssenceCore Corporate ValuesEver-lasting beauty and sharing happinessBecoming a world-class beauty companyDiligence, pragmatism, passion, initiative, hones-ty, and gratitudeResponsibility and learn-ing Efficiency and collab-

59、oration Innovation and fairnessAdhering to the corporate Essence of “diligence and pragmatism, passion and initiative, honesty and gratitude”, the Company is committed to becoming a world-class beauty makeup enterprise, and building a new Chinese cosmetics industry platform. Focus on the “6 * N” str

60、ategy in the future（For details, please refer to The Proya 2020 Annual Report）:“6” refers to new consumption, new marketing, new organization, new mechanism, new technology and new intelligent creation, and “N” refers to creating N brandsThe core connotation of “6 * N” refers to the creation, empowe

61、rment and incubation of “different” brands that meet the “different” needs of “different” consumers based on the above six capabilities.New con-sumptionNew mar-ketingNew orga-nizationNew mech-anismNew tech-nologyNew intelli-gent manu-facturing08About ProyaProya Cosmetics Co., Ltd. Sustainability Rep

62、ort 2020Honors in 2020Company honorBrand honorIncluded in the MSCI flagship indexSelected in the FTSE Russell Global Stock IndexThe 14th Value Rankings of Chinas Top 100 Listed Companies on the Main BoardTop 5 Home & Personal Care Companies in the Valuation Rankings of Listed Companies in 2020P5W: B

63、est New Media Operation Award, Excellent IR TeamGreat Zhejiang Entrepreneur for COVID-19 ControlZhong Nanshan Medical Foundation of Guangdong Province: Charity Organization in the Fight Against COVID-19Wuhan Charity Federation: Outstanding Contribution Organization to COVID-19 Prevention and Control

64、Cosmetic Newspaper: China Cosmetics Aesthetic Charity AwardOutstanding Contribution Award for Drug Development and Innovation in 2020Zhejiang Standard Beauty Innovation Contribution Award in 2020Zhejiang Province Health and Beauty Industry Standard Innovation Contribution Award in 2020The first Doub

65、le Hundred Vanguard Training Bases in Zhejiang ProvinceZhejiang Science Progress Award (3rd prize: key technology and standardization of the detection of banned and restricted substances in cosmetics)Selected in Luxe Sustainable Fashion Power List Top Cases (Promoting domestic cosmetics to replace a

66、nimal experiments)China Association of Fragrance Flavor and Cosmetic Industries: Excellent R&D Team, Advanced Enterprise in the Fight against COVID-19Hangzhou Live Broadcast E-commerce Key Cultivation Park (Base)VOGUE: Chinese Brand Awards in 2020Rayli Beauty Awards: Super Single Mask Product of the

67、 Year (Aqua Moisturiz-ing Renewal Mask)Sina Beauty Awards: Single Product of New Trend in Ingredients (Deep Ocean Energy Essence)Selected in the List of Transparent Labels: in 2020Deep Ocean Energy Wrinkless And Firming Essence - Single Popular Anti-oxi-dant and Anti-aging Product of the YearElastic

68、 Brightening Youth Activating Eye Cream - Popular Eye Cream of the YearElastic Brightening Youth Essence - No. 1 in the New Product List of the YearCosmetic Newspaper: G20 Chinese Cosmetics Brands, Top 2 Hydrating Brands, Top 3 Sunscreen BrandsJumeili: Best Innovative Brand in 2020China Beauty Expo:

69、 CBE Good Brand in 2020Youzan: Top 10 Leaders in 2020Huzhou Gold Brand Featured Product SouvenirTop 10 Beauty Brands Made in ZhejiangProyaTIMAGECosmetic Newspaper: Emerg-ing Brand AwardLight And Shadow Blending Palette : 2020 Fashion COSMO Beauty AwardUse clean energy and strengthen energy consumpti

70、on controlIncrease environmental protection technology improvement, strengthen waste management and recycling, and reduce emissionsGive priority to raw materials that meet and have passed sustainable certificationUse recyclable packaging materials and environmentally-friendly transportation boxes, i

71、mprove transportation efficiency, build a green logistics system, and reduce product carbon footprintAdvocate green office, carry out public environmental protectionPlant trees to contribute to carbon neutralityOur actions5,82316,000106.569,68814.78The Companys Huzhou production base was namedWe hav

72、e plantedWe have savedwhich can absorbrolls of tapes andbytonsof carbon dioxide each yearcartons, which is equivalent to reducing carbon dioxide emissionssaplingstonsAll raw material suppliers have signed fair trade agreements, and the paper used in the CORRECTORS brandpackaging has passedcertificat

73、ionHuzhou Green FactoryFSC09EnvironmentalProya Cosmetics Co., Ltd. Sustainability Report 2020Proya has always adhered to the idea of green development and integrated it into the full life cycle of its products by continuously promoting the green, low-carbon, and sustainable transformation of product

74、ion, manufacturing, purchasing, packaging, and transportation, actively practicing green intelligent manufacturing, green purchasing, and green logistics, and building an environment-friendly production and operation way, so as to build environmental responsibilities in the Companys genes and contri

75、bute to an environmentally-friendly and resource-saving society. Besides, the Company encourages employees to follow green office by practicing a low-carbon life; with the help of the Companys advantageous communication channels, encourages consumers and the general public to follow consume green by

76、 paying attention to ecological balance, and environmental protection, so as to achieve naturally sustainable development of man and nature.EnvironmentalOur actionsSDGs BenchmarkThe Company and its subsidiaries strictly act on the Environmental Protection Law of the Peoples Republic of China and oth

77、er applicable environmental protection laws and regulations and actively practice environmental protection concepts and green factory management. In 2020, the Company was not found to have violated environmental protection laws and regulations or been involved in any pollution accident dispute or su

78、bjected to any administrative penalty due to violation of applicable environmental protection laws and regulations.Proyas Huzhou production base has always adhered to the idea of low-carbon, environmental protection and shared green production by building a green intelligent manufacturing system, st

79、rictly acting on applicable national laws and regulations, strictly providing for environmental, safety, energy consumption and other measurement indicators, methods, and control processes, reducing energy and water consumption as well as the discharge of waste water, waste gases and solid wastes in

80、 production, so as to reduce the impact of production on the ecological environment and truly achieve a win-win situation of resource conservation and environmental friendliness. The Companys Huzhou production base was named Huzhou Green Factory.The Company consumes electricity and natural gas, espe

81、cially electricity. With the use of clean energy and further energy consumption control, while an average annual increase is reported in output, the Companys increase in energy consumption (such as electricity) is less than the average annual growth in output. Besides, given that tap water is mainly

82、 consumed, the Company can promote the water recycling by advocating water conservation and investing in environmental protection equipment such as sewage treatment systems, so as to continuously increase the efficiency.Green Intelligent Manufacturing: Creating an Eco-Friendly Production ProcessMini

83、mized resource consumptionThe Company has installed PV power generation devices on the roofing of the Huzhou production base, with a total capacity of 2.13 MW and an annual power generation of more than 2 million kWh, which is equivalent to reducing carbon dioxide emissions by about 1,920 tons.The C

84、ompany has established an air compressor heat recovery system to make the most of the heat generated by air compressors. It can produce 40t hot water per day for canteen rinsing, staff bathing, cleaning the raw material barrels, and heating up the process water. The annual heat energy storage is equ

85、ivalent to saving 155t standard coal or reducing 30t carbon dioxide emissions.Environment of Proya Huzhou Production Base Park10EnvironmentalProya Cosmetics Co., Ltd. Sustainability Report 2020Notes: (1) Energy intensity reflects the energy consumed per RMB 10,000 output. The less energy consumption

86、 per unit output, the lower the energy intensity; (2) Energy efficiency reflects the revenue per KWh electricity output. The greater the output per unit electricity, the higher energy efficiency.Notes: (1) Water consumption intensity reflects the water consumed per RMB 10,000 output. The less water

87、consumption per unit output, the lower the water consumption intensity; (2) Water efficiency reflects the revenue per t water output. The greater the output per unit water, the higher the efficiency of water.Electricity consumption（KWh）Water consumption（T）Operating revenue（RMB 0000）Operating revenue

88、（RMB 0000）Energy Intensity（KWh/RMB 0000 revenue）Water consumption intensity（T/RMB 0000 revenue）Energy efficiency（RMB 0000 revenue/kWh）Water efficiency（RMB 0000 revenue/T）600153030300.0420.4300101515150.0210.2900204545450.0630.62020202020202020202020202020202020000182

89、00,225,680.00134,797.00236,124.88236,124.8830.600.570.031.756,902,580.00142,295.00312,352.02312,352.0222.10 0.46 0.052.208,435,445.00156,273.00375,238.68375,238.6822.480.420.042.40WaterEnergy11EnvironmentalProya Cosmetics Co., Ltd. Sustainability Report 2020Minimized environmen

90、tal impactThe Companys wastewater mainly comes from toilets, canteens, domestic sewage, and process wastewater. The Company has installed the Multi Vision COD online automatic monitor to monitor the COD in the treated water for 24 hours to ensure that sewage discharge reaches Class A standard; estab

91、lished a sewage treatment system to ensure that the treated sewage can be highly purified and recycled. The Company has also implemented a recycled water system to recycle and reuse the water eliminated from the production process water, which can reduce production water consumption by 1,500 tons pe

92、r month.Wastewater managementAnaerobic Tower for Sewage Treatment in Huzhou Production BaseProya has invested more than RMB 3 million to build a sewage treatment system under the national first-level discharge standard, which treats more than 250t sewage every day. The COD of the sewage after advanc

93、ed treatment is no more than 40mg/L, far less than the required first-level Class A standard in the Discharge standard of pollutants for municipal wastewater treatment plant (GB18918-2002), and can be reused for fish farming in landscape ponds, flushing toilets, gardening and irrigation, to the exte

94、nt to effectively improve water utilization efficiency.CaseEstablishment of a sewage treatment system under the national first-level discharge standardLandscape fish pondNotes: (1) Direct emissions (Category 1) refer to greenhouse gas emissions resulting from coal, natural gas, petroleum and other f

95、ossil energy combustion activities and industrial production processes; (2) Indirect emissions (Category 2) refer to greenhouse gas emissions resulting from outsourced electricity and heat; (3) Direct emissions are calculated as per the Technical Guide for Calculations for Coordinated Control of Gre

96、enhouse Gases in Pollutant Removal from Pollution Treatment Facilities (trial); (4) Indirect emissions are calculated as per the Baseline Emission Factors for Regional Power Grids in China in 2019 Emissions Reduction Projects.Greenhouse gas emissionsIndicatorMajor source of emissionsUnit201820192020

97、The waste gases emitted by the Company during production are dominated by boiler exhaust gas and canteen cooking fumes. The Company had renovated and replaced boilers since 2013. By 2020, all of the Companys boilers were fueled by natural gas to reduce exhaust gas emissions and effectively protect t

98、he environment; all of the canteens were installed with fume purification devices to reduce oil fume emissions.In 2020, the Company input a new 4-ton ultra-low nitrogen gas-fired boiler, which emits less than 30 mg/m nitrogen oxide, lower than the required threshold of 50mg/m boiler nitrogen oxide e

99、missions. The Company acts early on boiler nitrogen oxide emissions, in a way to contribute to improving local ambient air quality and build a resource-saving and environmentally-friendly factory.Waste gas managementDirect emissions (Category 1)Indirect emissions (Category 2)natural gasT carbon diox

100、ide equivalentPurchased electricity700,281.67748,261.50783,394.37783,394.375,888,297.935,643,664.226,866,116.386,866,116.3812EnvironmentalProya Cosmetics Co., Ltd. Sustainability Report 2020The general solid wastes generated during the Companys production are dominated by waste packaging materials,

101、non-conforming products, waste activated carbon, sewage station sludge, household garbage and canteen swill, and can be reasonably sorted, collected, disposed of or comprehensively utilized, to ensure that such solid wastes will have no impact on the surrounding environment.For hazardous solid waste

102、s, the Company has kept records and implements standardized management as per applicable laws and regulations;Waste packaging materials are recycled by manufacturers or sold to garbage disposal stations;The canteen swill is removed and transported by nearby farms, and used effectively after recyclin

103、g.Raw material barrels are recycled by the original manufacturers;Lining bags are to be disposed of by a commissioned professional third party;The sewage station sludge is landfilled by the sanitation department;Domestic garbage is disposed of by the local sanitation department;Waste managementGreen

104、 Procurement: Sustainable Raw Material SourcingProya has always been committed to the principle of sustainable development by applying this to the criteria for green purchasing, and giving priority to raw materials with less environmental and social impacts and renewable raw materials of sustainable

105、 or green sources, including those raw materials in line with the principle of sustainable development that protect biodiversity in planting and harvesting, implement sustainable low-carbon agricultural practices in preparation, protect womens rights, and comply with fair trade.Besides, the Company

106、also makes the most of its role as an industry leader by mobilizing upstream and downstream suppliers to improve environmental impacts, jointly build a green supply chain, and promote green production with green purchasing through selection from supply and demand sides based on the principle of gree

107、n environmental protection.Natural products are the core in-gredients of Proyas products. For BOERHAVIA DIFFUSA extracts, Tara gum and HEOBROMA GRANDIFLO-RUM SEED BUTTER, the Company preferentially selects manufactur-ers under the Nagoya Protocol;For raw materials from Africa, the Company preferenti

108、ally selects manufacturers that have signed a fair trade agreement;For the source of palm oil, the Company preferentially purchases raw materials under RSPO stan-dards.13EnvironmentalProya Cosmetics Co., Ltd. Sustainability Report 2020Proya attaches great importance to the sustainability of product

109、packaging by improving the environmental characteristics of products through packaging design, material selection and processing technology, so as to reduce product carbon footprint. Meanwhile, the Company also encourages suppliers to choose lower-carbon and more sustainable raw materials and produc

110、tion methods to jointly practice sustainable development.The product gift box is designed as a jewelry box and a storage box, which can be reused. After using the internal cosmetics, consumers can use it to hold other items as a storage boxEcologically recyclable packaging materialsThe Company has a

111、ssisted major suppliers in completing clean energy upgrade for boilers. In 2020, the major cooperative glass suppliers used pure oxygen and natural gas as energy for production.The Company prints instructions and mini-games on the inside of packaging and gift boxes, makes packaging and gift boxes in

112、to jewelry boxes and storage boxes, and encourages consumers to recycle gift boxes for reuse.Since 2011, the Company has gradually replaced non-degradable PVC materials with PET materials of less environmental impacts; as of 2020, no product of the Company was made from PVC materials;In 2020, the Co

113、mpany began to use uncovered and uncoated paper, fully covering the Ocean Hydropower series packaging;In 2020, the paper used in the Companys CORRECTORS brand packaging has passed FSC certification;In 2020, the gray paper used in 90% of the Companys box sets was recycled paper.More environmentally-f

114、riendly materialsEnvironmentally conscious suppliersReusable packaging designProya has built five regional sub-warehouses in China based on the proportion of online orders from each province to im-prove transportation efficiency and reduce carbon emissions during transportation. In the future, Proya

115、 will continue opti-mizing and adjusting warehous-ing equipment, and more offline sub-warehouses are already in the pipeline.Improved logistics transportation efficiencyRegionLocationCovered provincesEast China Sub-WarehouseSouth China Sub-WarehouseCentral China Sub-WarehouseSouthwest Sub-WarehouseN

116、orth China Sub-WarehouseZhejiang, Anhui, Jiangsu, ShanghaiGuangdong, Fujian, Guangxi, HainanHenan, Hubei, Hunan, Jiangxi, Shaanxi Sichuan, Chongqing, Yunnan, Guizhou, Xinjiang, Tibet, Gansu, Qinghai, NingxiaInner Mongolia, Heilongjiang, Jilin, Liaoning, Bei-jing, Shanxi, Tianjin, Hebei, ShandongJiax

117、ingGuangzhouWuhanChengduBeijingGreen Logistics: Reducing Carbon Footprint14EnvironmentalProya Cosmetics Co., Ltd. Sustainability Report 2020In 2020, Proya began to use recycling boxes instead of cartons. After recycling boxes are trans-ported to the Companys E-commerce Warehouse, they will be recycl

118、ed for use by the original manufacturers. In 2021, Proya will continue increasing the use of recycling boxes. It is expected to save more than 20,000 transport cartons (430cm*250cm*210cm) and reduce carbon diox-ide emissions by 25.16 tons.Since September 2020, Proyas sub-brand TIMAGE has begun the p

119、ilot use of zipper cartons to replace traditional cartons, in a move to reduce the use of tapes while improving the cus-tomers unpacking experience. In 2021, Proya will promote the use of zipper cartons in all of the Companys brands. It is estimated that 20 million zipper cartons will be used throug

120、hout the year, to the extent to save more than 500,000 rolls of tape and reduce carbon dioxide emis-sions by 81.2 tons.In 2020, In 2020, cartons Environmentally-friendly transport cartonsLocking Plastic Circulation BoxThe Company attaches great importance to environmental protection by actively prom

121、oting energy conservation and emissions reduction in daily operations and advocating all employees to save electricity and water; fully implementing paperless office and advocating double-sided copying to save paper; encouraging employees to reduce the use of disposable water cups; requiring all emp

122、loyees to turn off lights and electric switches after work and reduce the standby energy consumption of computers, printers and other equipment; actively promoting the idea and description of waste sorting to employees to increase the resource value and economic value of wastes and maximize the use

123、of resources, so as to achieve the purpose of saving resources and reducing emissions.While carrying out green operations to reduce carbon emissions, the Company also sponta-neously organizes green environmental protection projects to offset the carbon dioxide emis-sions generated during operations

124、and achieve carbon neutrality in the shortest possible time. Since 2007, the Company has organized afforestation activities for many times. As of 31 December, 2020, the Company had planted 5,823 saplings, which can absorb 106.56 tons2 of carbon dioxide each year.In addition, the Company also activel

125、y advocates the idea of environmental protection by en-couraging employees to actively participate in public activities related to global environmen-tal protection to practice green environmental protection with practical actions.2As per the National Handbook on Energy Conservation and Emissions Red

126、uction by the Ministry of Science and Technology of the Peoples Republic of China, one tree can absorb 18.3kg carbon dioxide each year.9,688664,00012.192.616,000Green Office: Promoting Low-Carbon LifestyleGreen Charity: Contributing to a Circular Economy(430cm*250cm*210cm) were used, equivalent to r

127、educing carbon dioxide zipper cartons were used, savingemissions byemissions bytons.tons.rolls of tapes, equivalent to reducing carbon dioxide 15EnvironmentalProya Cosmetics Co., Ltd. Sustainability Report 2020Proya adheres to the spirit of integrity and gratitude by defending the legitimate rights

128、and interests of employees, building a growth platform for employees, and helping employees balance work and life as possible; actively participating in making industry standards, strengthening in-dustry cooperation, and contributing to the healthy and rapid development of the industry with the help

129、 of its own technology and experience advantages. Meanwhile, the Company always makes it its mission to contribute to communities by inputting resources and energy to improve peoples livelihood and to undertake corporate social responsibility by associating the Companys development with a harmonious

130、 society.Promote responsibility testing to ensure consumer safety while reducing animal testingFully protect the rights and interests of employees and stick to an-ti-sex discriminationProvide employees with a market-competitive compensation and benefits system, carry out employee equity incentives,

131、and attract and retain core talentsSupport employees in improving skills and academic qualifica-tions, and build a platform for employees to realize their self-worthParticipate in making team standards and deepen industry collab-orationSupport the development of education in poverty-stricken regions

132、Our resultsRMBmillion 72.2196522Our actionsSDGs Benchmark16SocialProya Cosmetics Co., Ltd. Sustainability Report 2020R&D investment andemployees attend-R&D employeesed and completed Proyas top-up degree coursesParticipation in makinggroup standards for in al-ternatives to animal testingSocialThe Com

133、pany continuously improves scientific research and technical conditions by actively introducing advanced technologies, strengthening industry-university-research cooperation, deepening strategic technical cooperation, and taking science and technology as the starting point to provide consumers with

134、safe and satisfactory products.Focus on technology innovation72.21961.92Industry-university-research cooperationStrategic technical cooperationThe Company has cooperated with the Institute of Microbiology, Chinese Academy of Sciences on the deep-sea microbial resource utilization and active substanc

135、e development project; concluded an industry-university-research cooperation agree-ment with the School of International Cosmetics, Shanghai Institute of Technology to fully cooperate on personnel cultivation, scientific research, technical innovation and personnel trainingThe Company has achieved s

136、trategic technical cooperation with BASF (China) and Ashland (China); built a joint experimental center for high-throughput 3D printing Asian skin models with Regenovo Biotechnology Co., Ltd.Sincere Service, Customer FirstPromoting responsible testsIn order to ensure the safety of consumers, applica

137、ble Chinese laws and regulations ex-pressly require that special cosmetics and products such as whitening, sunscreen, and childrens use shall pass animal experiments. The Company follows the requirements of current Chinese laws and regulations by conducting experiments on special cosmetics to ensure

138、 that there are no ingredients in the products that will cause adverse reactions to consumers.As of 31 December, 2020, the ComIn 2020, the project for key technolo-gy and standardization of the detec-tion of banned and restricted sub-stances in cosmetics carried out by Proya with Hangzhou Food and D

139、rug Inspection Institute, National Daily Commodity Quality Supervision and Inspection Center and Hangzhou Quality and Technology Supervision and Inspection Institute won the Third Prize for Science Progress in Zhejiang.In 2020, Proya won the honorary title of “Excellent R&D Team” in Chi-nas flavor,

140、fragrance and cosmetics industry.ment was RMBaccounting topany hadR&D employees% of the total revenuemillion,In 2020, the Companys R& D invest17SocialProya Cosmetics Co., Ltd. Sustainability Report 2020On the basis of meeting the legal requirements, the Company also actively adopts in alternatives t

141、o animal testing to reduce animal experi-ments as possible, and adopts animal alternative test methods including 3D artificial skin models, isolated animal organ models, character-istic cells and microbial models to evaluate in vitro the potential skin irritation, eye irritation, sensitization, phot

142、otoxicity and genotoxicity of cosmetic raw materials; on the basis of in vitro experiments, the Company carries out further clinical applicability evaluation to ensure the safety of cosmetic raw materials and products.To the extent permitted by legal regulations and to ensure product safety, the Com

143、pany adopts scientific methods including risk assessment to actively achieve animal-free experiments.In addition, the Company also actively supports and participates in making applicable standards for artificial skin technology innovation and animal substitution, with a view to promoting the improve

144、ment and optimization of experimental technologies and methods in the Chinese cosmetics industry. In 2020, Proya invested in the shares of Regenovo Biotechnology Co., Ltd. to carry out R&D of artificial skin experimenta-tion, seeking to find new cosmetic experiment solutions to replace animal experi

145、ments.10Proya actively implements the concept of beauty without cruelty by investing a lot of resources to explore and develop new alter-native animal testing methods. On 18 March, 2020, the Companys two project researches won the 2019 Open Scientific Research Fund-ing Project in Key Laboratory of A

146、lternatives to Animal Testing Technology for Cosmetics of the National Medical Products Administration.CaseBeauty without Cruelty, promoting the construction of animal substitute experiments for cosmetics in ChinaQuality management systemThe Company has certified by standard systems including ISO 90

147、01 quality management systems, ISO 22716 Cosmetics - Good Manufacturing Practices and US FDA-GMPC; fully implemented 105 inspection points for cosmetics production licenses by conducting internal audits of each system on a quarterly basis, so as to improve and enhance the operating efficiency of the

148、 Companys total quality management system and pro-vide management guarantees for the production of high-quality products.Guaranteed product qualityISO 9001 Quality Management SystemISO 22716 Cosmetics - Good Manufacturing PracticesUS FDA-GMPC CertificationIn 2020, less than% of theCompanys products

149、were subject to animal experimentsIn 2020, the Company was en-gaged in two open scientific research projects in the Key Lab-oratory of Alternatives to Animal Testing Technology for Cosmetics of the National Medical Products Administration.18SocialProya Cosmetics Co., Ltd. Sustainability Report 20201

150、9SocialProya Cosmetics Co., Ltd. Sustainability Report 2020Total quality managementAs overall required by all quality management systems and as per the Companys quality planning, Proya has established the organizational structure of the Quality Management Department and a total quality management sy

151、stem covering the entire supply chain from product design to delivery and sales; strengthened information construction to improve quality management.In addition, the Company has also applied both METTLERs bar code management and SAP system and Alsheys QR code printing and automatic code checking sys

152、tem to achieve forward traceability from raw materials to finished products and achieve a total product life cycle quality supervision system. A product ID is assigned to a single product only through the QR code to collect and track the product in production, warehousing, distribution, logistics an

153、d transportation, market inspection and consumption, so as to achieve a full life cycle management in production, sales, circulation and services.Chemical substances managementThe Companys chemical substances management strictly follows Chinas current environmental protection laws and regulations, l

154、abor protection regulations, and cosmetics-related laws and regulations, and conducts purchasing, storage, production and R&D in compliance with laws and regulations.The Company has eliminated all non-degradable raw materials such as microbeads that are of general concern to the market or consumers

155、from all rinsing products, avoided such raw materials in new product development, and replaced them with natural degradable raw materials.Facilities and equipmentMaterial controlLaboratory controlSupplier managementProcess and production controlRegulationsPackaging and labelingNew product developmen

156、tThe Companys product Proya Deep Ocean White Luminous Cream Balance was certified by Made in ZhejiangTotalQuality management system20SocialProya Cosmetics Co., Ltd. Sustainability Report 2020Provision of quality servicePrompting product safety Different people and skin types have different tolerance

157、 to cosmetics. In order to better protect the rights and interests of consumers, the Company provides consumers with tips on safe consumption of cosmetics by means of packaging, offline sales tips, online product details page tips and online KOL live broadcast tips to guide consumers to reasonably s

158、elect and scientifically use cosmetics.Construction of diversified service channelsThe Company has built an omni-channel sales network in more than 30 cities across China, covering department stores, daily chemical boutiques, large supermarket chains and a new-generation E-commerce platform, forming

159、 development and operating mechanisms with multiple brands, multiple categories, multiple channels, and multiple modes.Response to customer demands in timeThe Company attaches great importance to protecting consumers rights and interests by always adhering to the service concept of serving with hear

160、t and treating consumers with sincerity, continuously improving customer service system construction, enhancing the awareness of services, and providing 24-hour services both online and offline, so as to respond to customer demands better and faster.PROYA-VIP Center provided on Weibo and Proyas offi

161、cial member Club on WeChat.Offline store consulting. A complete and e f f i c i e n t o n l i n e customer service platform by means of Artificial + AI, covering CTS, Wangwang and Dianxiaomi.2 4 - h o u r s e r v i ce hotline (400-8517-666), displayed on the official website and product packaging.Se

162、rvice channelsOfflineOnlineDealerModeDirect sales/DistributionModeFranchise storeSupermarketSingle-brand storeTmallTaobaoVipshopPinduoduoTik TokJD.com21SocialProya Cosmetics Co., Ltd. Sustainability Report 2020Pursuant to the Labor Law of the Peoples Republic of China, the Contract Law of the People

163、s Republic of China, and other applicable domestic and foreign laws and regulations, the Company respects and protects the legitimate rights and interests of employees, prohibits employing child labor, guarantees equal pay for equal work, and guarantees the legal rights and interests of female emplo

164、yees, with efforts to create a diversified, fair and just working environment to ensure that all employees are not treated differently due to any factor such as religion, gender, age, and disability.Protection of the legitimate rights and interests of employee Male Female 21 (incl.) -30 years old 31

165、 (incl.) -40 years old 41 (incl.) -50 years old 51 years old and above Junior college or below Bachelor Master or aboveGender Composition of EmployeesAge Composition of EmployeesDistribution of Employee Education Levels38.1340.6872.4323.7743.8914.391.043.8061.87In 2020, the Company had 2,898 employe

166、es; all of them were hired under labor contracts and provided with social insurance.In 2020, women accounted f o r47.21% o f t h e Companys middle and senior managements3 .People Oriented Continued Focus on Employee DevelopmentProya takes value creation as the basis for the Companys salary distribut

167、ion, expressly bases value on performance, establishes a comprehensive and objective performance evaluation system, and relates employee salary distribution with performance evaluation, so as to encourage employees to focus on value creation. The Company has also made the Rules for Performance Appra

168、isal to link employee performance with bonuses and establish a mechanism for normal increase in employee salaries. Based on the diversification of talents in different units, levels, and grades, the Company has built multi-level and multi-faceted compound incentive mechanisms, including equity incen

169、tives for middle and senior officers, sharing of excess profits in various business modules, internal entrepreneurial partners, internal department marketization, so as to fully stimulate the enthusiasm of the Companys employees at all posts.In addition, the Company has also developed the Measures f

170、or Benefits to create convenience for employees in life and health and enhance their sense of belonging and collective honor in the Company.Improving salary and benefitsCompetitive compensation and benefits system3The Companys middle and senior managements refer to managers and above.22SocialProya C

171、osmetics Co., Ltd. Sustainability Report 2020Attraction and retainment of core talentsIn order to further establish and improve the Companys long-term incentive mechanisms, attract and retain outstanding talents, fully stimulate the enthusiasm of the Companys senior managements, middle managements a

172、nd core backbone employees, the Company implemented the 2018 restricted stock incentive plan in 2018 by granting 1,362,300 restricted stock shares, up to 0.68% of the 20 million shares of the Companys total share capital, to 29 of the Companys senior managements, middle managements and core backbone

173、 employees.the conditions for the release of the first restricted sales period for the first grant part and the reserved grant part of the Companys 2018 restricted stock incentive plan were met and such part was sold and circulating in the market.The Company will occasionally invite some experienced

174、 professional teachers to share their experience and sum up lessons, so that employees can gain experience and knowledge and grow fast. Currently, the Lecture Hall has set up sales skills, product development, project management and other skills sharing courses.The Company has developed and provided

175、 more than 3,000 courses on the learning platform for employees to learn professional knowledge and grow fast in an overall way. So far, around 3,000 learning accounts have been opened for the Companys employees and distributors.the conditions for the release of the second restricted sales period fo

176、r the first grant part and the reserved grant part of the Companys 2018 restricted stock incentive plan were met and such part was sold and circulating in the market.in view of the impact of COVID-19 on the cosmetics industry and the Company, to ensure the stability of the middle and senior staff, t

177、he Company adjusted its 2020 target operating revenue growth based on actual operation conditions to ensure the Companys restricted stock incentive plan would be implemented successfully.In order to match the Companys talent development strategy, further optimize the Companys HR structure and achiev

178、e the Companys long-term development, the Company adheres to the principle of fairness, justice, competition, and merit-based employment, adopts the position management philosophy of all are talents that will be evaluated based on competence other than education, and has made the Competency Developm

179、ent Plan for Core and Key Positions and the Rules for Training in line with the Companys strategic development, and established diversified training and education methods to help employees improve their professional skills and overall quality, meet the needs of corporate development and employees pe

180、rsonal development, achieve a win-win cooperation.Construction of a platform for employee growthProyas Training SystemThe Company organized employees to carry out professional training to empower employees Insurance and housing fund Paid annual leave Statutory holidays Marriage and funeral holidaysC

181、ommercial insuranceBill allowanceMeal allowanceAnnual tourHealth checkupHoliday greetings Team building benefitsHigh temperature allowanceMarriage and funeral cash gifts Birthday giftsBenefits for the elderlyEducational benefits for childrenSpecial health benefits Statutory benefitsSpecial benefitsP

182、roya Lecture HallE-learning online platformOther benefitsJanuary 2020June 2020January 2021In 2020, the Company organized 4 trainings on various topics, totaling 46 hours.23SocialProya Cosmetics Co., Ltd. Sustainability Report 2020The Company attaches great importance to employee education improvemen

183、t by encouraging employees to continue learning and acquiring the required certifications and qualification certificates. Since 2017, the Company has cooperated with Zhejiang University of Finance and Economics to open Proyas top-up degree courses, in a move to provide training and learning opportun

184、ities to all employees ready to improve their education backgrounds.As of 31 December, 2020, 52employees attended and completed Proyas top-up degree courses.In 2020, the Company organized 7 professional skills improvement training activities, covering tea art specialists, pastry cooks, flower arrang

185、ers, and beauticians, where 148 employees were granted advanced certificates and 53 employees intermediate certificates. According to the talent allowance policies of the Hangzhou Municipal Human Resources and Social Security Bureau and Xihu District of Hangzhou, 199 employees are entitled to RMB 61

186、6,605 allowances. In addition, for employees certified with intermediate and advanced certificates, their children are given benefits including increased enrollment points, increased settlement points, and personal income tax reductions; employees certified with advanced certificates may also apply

187、for Hangzhou rental/housing allowances.CaseFurther strengthening skills training and certificationThe Company has made the Dual-Channel Promotion Measures for Employee Career Development whereby to implement fair, just, transparent and open promotion channels and seek to build a reasonable growth pa

188、th for employees. Meanwhile, the Company will give priority to employees with excellent performance appraisals in promotion and succession.Proyas Career Promotion SystemManagementProfessionalOperationProfessional title naming rulesM5-CEO M4 - Executive Vice PresidentP7 - Chief Scientist M3 - General

189、 Manager of CenterP6 - Scientist M2 - DirectorP5 - Discipline Leader Job title + address (director)M1 - ManagerP4 - Researcher Job title + address (manager) P3 - ExpertO4 - Senior ArtisanJob title + address (supervisor) P2 - SpecialistO3 - ArtisanJob title + address (specialist) P1 - AssistantO2 - S

190、enior Operator O1 - Operator Notes1. Promotion between different sequence levels is determined based on the qualification readiness of positions to address career development;2. According to work qualifications, skill proficiency and performance, each sequence level can be divided into senior, inter

191、mediate and junior, and compensation is differentiated to address salary development.24SocialProya Cosmetics Co., Ltd. Sustainability Report 2020Employee Representative MeetingThe Company establishes a labor union by law and invests funds every year to support the unions activities and protect the l

192、egitimate rights and interests of employees. The Company regularly holds employee representative conferences, and organize special surveys, new employee discussions, and reasonable suggestions to collect employee opinions extensively, create opportunities for employees to express their opinions and

193、participate in management, and encourage employees to communicate with the Company sincerely for reasonable suggestions on the Companys management and development.Further democratic communication with employeesAs of 31 December, 2020, the Companys union covered 80%of the employees.As of 31 December,

194、 2020, the Company received 4,548reasonable suggestions from employees, to the extent to create RMB600million revenue for the Company.The Company has passed the GB/T 28001:2011/OHSAS 18001:2007 occupational health and safety management system and established a top-down occupational health and safety

195、 management mechanism, whereby to assess and identify hazard sources in all working environments and workplaces, first prevent, then control and eliminate occupational disease hazards and ensure the health of employees. In 2020, the Company held the Ankang Cup event to improve employees safety skill

196、s. Every year, it organizes special safety emergency drills every year to enhance employees safety awareness and emergency response.In addition, the Companys production base has achieved remote fire monitoring, whereby the fire supervision department can learn about the operation and monitoring of t

197、he fire fighting system at any time, to the extent to improve fire protection technology, information, and intelligence.Emphasizing employee health and occupational safetyProya and the Youth League Committee of Zhejiang Provincial Peoples Hospital organized a first-aid knowledge education activity,

198、and invited Dr. Gong Fang Xiao, an attending physician in the Intensive Care Unit of Zhejiang Provincial Peoples Hospital and a certified instructor of Chinese CaseLight of Life first-aid knowledge lectureCPR training, to give a lecture on first-aid knowledge, in a move to enhance employees awarenes

199、s of safety precautions and help employees master basic first-aid knowledge and operation skills, effectively carry out self-rescue and mutual rescue at the scene of an accident, so as to ensure the safety of life and prevent accidents.Inviting Experts to Provide Fire Drill Training on Site to Impro

200、ve Employees Safety Awareness25SocialProya Cosmetics Co., Ltd. Sustainability Report 2020Internal Cultural EventEmployees were organized to participate in the Hanfu Exchange Conference Themed blind date event hosted by the Xihu District Federation of Trade UnionsThe Company fully considers the basic

201、 needs of employees for work and life by providing a number of welfare facilities within the Company, seeking to build a humane working atmosphere and living environment.Helping employees balance between work and lifeTo ensure the healthy development of employees physical and mental health, relieve

202、working pressure, and increase the interest of leisure life, the Company organized various cultural and entertainment activities in 2020, to the extent to enrich the spiritual life of employees and enhance their recognition and sense of belonging in the Company.CanteenLounge BarMother and Baby RoomG

203、ymMulti-function RoomEmployee TravelMountaineeringFun Sports Meeting26SocialProya Cosmetics Co., Ltd. Sustainability Report 2020The Company organized and participated in industry activities, to promote industry exchanges and dialogues; continued deepening extensive cooperation with companies in and

204、out of the industry, and strengthened multilateral cooperation.The Company makes the most of its own professional advantages by actively participating in making national, industry, and local standards and contributing to sustainable industry development based on technology accumulation and innovatio

205、n experience.The Company incorporated social responsibility into supplier assessment by making the Supplier Management System Audit Checklist, continuously improving the supply chain management system, and gradually establishing normalized communication mechanisms to ensure that suppliers had establ

206、ished a complete and effective management system. The Company worked together with suppliers to provide consumers with safe, satisfactory products and services in a more sustainable way.Participation in formulating standards and contribute to industry developmentFurther collaborative innovation and

207、promoted industry cooperationCommon development with suppliersProya participated in the establishment of the International Cooperation Chamber of Commerce of Zhejiang Federation of Industry and Commerce, where Chairman Hou Juncheng was elected Vice Chairman of the organization.Proya was named one of

208、 the first Double Hundred Vanguard Training Bases in Zhejiang ProvinceProya participated in the Zhejiang Cosmetic Industry High Quality Development Conference and the 6th Cosmetic Industry Leaders SummitOn 9 October, 2020, the Company cooperated with international cosmetics companies including Amway

209、 and JNJ completed two group standards for alternatives to animal testing: In vitro testing method for hair color cosmetics skin allergy - human cell line activation testing method (T-ZHCA010-2020) and In vitro testing method for white clear cosmetics skin allergy - human cell line activation testin

210、g method (T-ZHCA011-2020), which were published by Zhejiang Provincial Health Products and Cosmetics Industry Association on the National Information Platform for Group Standards and became effective on January 9, 2021.Such two group standards were published and brought into force to further improve

211、 Chinas in vitro testing standards for cosmetics allergies and help establish a cosmetic product safety evaluation system.CaseMulti-party collaboration to jointly promote the formal implementation of two group standards for alternatives to animal testingIn 2020, the Company led and participated in f

212、ormulating2 group standards;As of 31 December, 2020, the Company had led and participated in the formulation of 9 national standards, 3industry standards, 1local standard, and 11group standards.In 2020, 60% of the Companys cooperative suppliers passed SA 8000 (the Social Responsibility Standard).Be

213、Open-minded and Collaborative to Sustain Healthy Industry GrowthProya donated customized school uniforms, notebooks, pencil boxes and other school supplies to the children of the Hope Primary SchoolThe Companys employees actively participated in the volunteer service of Hangzhou Model City#9/9 Chari

214、ty Day# Proya helped rural children make their dreams come trueProya has always been adhering to integrity and gratitude, by making it its mission to contribute to communities, paying attention to gender equality, humanitarian assistance, science education and community volunteering, and continuing

215、to input resources and energy to give back to the society. In 2020, the Company organized and participated in a number of activities including Hope Primary School Assistance, 9/9 Charity Day, Care for Children with Autism, and community volunteering.Proya Chairman Hou Juncheng (second from left) and

216、 Painter Bi Changyu (second from right)In November 2020, by donating to the China Volunteer Service Foundation, Proya and Shanghai Noah Foundation held the Star TalkStar Wish Bi Changyu Oil Painting Exhibition at the Proya Qingteng Art Center. The exhibition would last until 30 December, where 54 pa

217、intings by the autistic painter, Bi Changyu, would be exhibited.Meanwhile, Proya cooperated with institutions including Bi Changyu Art Studio, Beijing Stars and Rain Education Institute for Autism, Zhejiang Internet Charity Base, Hailiang Special Education Center, Ningbo Shanyuan Public Welfare Foun

218、dation, and Shaoxing Qingteng Academy to sponsor autism charity and promote the autism art therapy project.Through art exhibitions and the introduction of professional courses related to autism, Proya hopes that practical help will be given to children with autism from the spiritual and technical le

219、vels, so as to contribute more to the social environment by truly alleviating the social problems faced by children with autism and creating more tolerance for them.CasePublic Art Exhibition + Mobile Classroom-Care for Children with AutismSupporting Charities and CommunitiesThe donations are used fo

220、r the pairing project between Xihu District and Kaili City, Guizhou Province27SocialProya Cosmetics Co., Ltd. Sustainability Report 202028GovernanceProya Cosmetics Co., Ltd. Sustainability Report 2020Proya strictly implements the applicable regulatory requirements for the high-quality development of

221、 listed companies by continuously optimizing the corporate governance system, continuously strengthening the construction of internal control systems, standardizing information disclosure, increasing interaction with investors, and enhancing information transparency in order to convey the Companys r

222、esponsible brand image to the capital market and lay a management foundation for sustainable operations.GovernanceOur actionsSDGs BenchmarkEstablish an efficient governance system and structureStrengthen information disclosure and investor relations management, Enhance information transparencyImprov

223、e the companys risk and compliance controlStrengthen the protection of intellectual property and avoid the risk of intellectual propertyPay attention to anti-corruption and comply with good business ethicsOur results3A288300Obtained the information disclosure of Shanghai Stock ExchangeIn 2020, trade

224、marks andnew copyrights were addednew A total ofand communication activities were conducted online and on site to receive more thaninvestor researchinvestors in total29GovernanceProya Cosmetics Co., Ltd. Sustainability Report 2020Internal Audit DepartmentStrategy CommitteeNomination CommitteeRemuner

225、ation and Appraisal CommitteeAudit CommitteeAs required in the Company Law, the Securities Law, the Listing Rules of the Shanghai Stock Exchange, the Code of Corporate Governance of Listed Companies and other applicable laws and regulations as well as the Articles of Association, the Company has con

226、tinuously improved its standard operations and improve its corporate governance structure according to the Companys actual conditions.The Company has established the shareholders meeting, the Board of Directors, the Board of Supervisors and special committees under the Board of Directors as required

227、, and made their respective rules of procedure, which defines the responsibilities, procedures, and obligations of institutions at all levels in decision-making, supervision, and execution, to the extent to form a scientific, effective, clearly-defined, mutually balanced, and mutually coordinated go

228、vernance structure.Governance Structure DiagramChairmans OfficeCorporate Culture DepartmentGeneral Managers OfficeIn 2020, 4 shareholders meetings were held to consider and approve proposals including the public issuance of A-share convertible corporate bonds, the annual profit distribution plan, th

229、e adjustment of the 2018 restricted stock incentive plan and the 2020 company-level performance assessment indicators in related documents. There were 7meetings of the Board of Directors, 6meetings of the Board of Supervisors, 2meetings of the Strategy Committee, 6meetings of the Audit Committee, an

230、d 1 meeting of the Remuneration and Appraisal Committee, where independent directors were present in person or in proxy.Shareholders MeetingBoard of DirectorsChairmanGeneral ManagerBoard of SupervisorsBoard OfficeImproving Corporate GovernanceAs required by the competent regulatory authorities inclu

231、ding the China Securities Regulatory Commission and the Shanghai Stock Exchange, the Company has disclosed all material information in a true, accurate, complete, timely and fair manner pursuant to the Company Law of the Peoples Republic of China, the Securities Law of the Peoples Republic of China

232、and the Administrative Measures for Company Information Disclosure, so as to ensure that all shareholders have fair access to information and all concerned parties could learn about the Companys operating conditions and the progress of significant matters in time. In 2020, the Company was rated A by

233、 the Shanghai Stock Exchange for information disclosure. In 2020, the Company issued 4regular reports and 59 temporary announcements. The information disclosure complies with the requirements of relevant laws and regulations, and has not been punished or concerned by regulatory agencies. Information

234、 disclosure complied with the requirements of the applicable laws and regulations and the Company was not subject to punishment or regulatory scrutiny by the regulators.Improving Disclosure Quality30GovernanceProya Cosmetics Co., Ltd. Sustainability Report 2020The Company attaches great importance t

235、o investor relations management by communicating information with investors and answering questions patiently according to the principles of fairness, openness, and impartiality, and promptly responding to questions raised by investors by SSE e-interaction, telephone call, and securities mailbox.Mea

236、nwhile, in order to strengthen connections with the capital market, the Company continues increasing the channels and methods for communication with institutional investors by participating in brokerage exchange meetings and actively accepting investor calls/on-site research activities to ensure tha

237、t investors can learn about the Companys latest updates in a timely and accurate manner and regularly publish survey minutes on SSE e-interaction. Risk managemenThe Company upholds the risk management philosophy of matching risks and returns and a prudent risk appetite, to minimize the negative impa

238、ct of risks on the Companys operating performance and maximize the interests of shareholders and other equity investors. Based on this risk management target, the basic strategy of the Companys risk management is to confirm and analyze all risks faced by the Company, establish an appropriate bottom

239、line of risk tolerance and carry out risk management, and timely and reliably monitor all risks, and control the risks within limits.Compliance managementIn 2020, the Company continued laying a solid foundation for compliance management by strengthening the construction of the compliance management

240、team and continuing improving various compliance management mechanisms as per the new compliance management rules; and inviting third-party professional agencies to conduct internal control audits as per the Basic Internal Control Norms for Enterprises and other applicable provisions.In 2020,3 inves

241、tor research and communication activities were conducted by the Company online and on site to receive more than 300 investors in total.Strengthening Investors Relationship ManagementTightening Risk and Compliance ManagementPursuant to the Patent Law of the Peoples Republic of China, the Trademark La

242、w of the Peoples Republic of China, the Copyright Law of the Peoples Republic of China and the Anti-Unfair Competition Law, the Company has made the Intellectual Property Management System, whereby to standardize the Companys intellectual property management, strengthen Intellectual property protect

243、ion, prevent intellectual property losses, encourage innovation, enhance the Companys market competitiveness and effectively avoid intellectual property risks. In 2020, the Company passed the intellectual property management system certification.Meanwhile, the Company also organized training on topi

244、cs related to intellectual property to provide professional training and guidance for key positions in the Innovation Center, the Sales Department, and the New Product Development Office and enhance employees awareness and ability to protect intellectual property.Certificate of Intellectual Property

245、 Management System CertificationIn 2020, 28 new trademarks and 8 new copyrights were addedAs of 31 December, 2020, the Company owned 733trademarks and 65 copyrights.Intellectual Property31GovernanceProya Cosmetics Co., Ltd. Sustainability Report 2020The Company has established the Employee Supervisi

246、on and Reporting Management System of Proya Cosmetics Co., Ltd. to clarify the business ethics behavior warning line for all employees, standardize the reporting procedures, ensure the Companys healthy development, and provide protection mechanisms to reporters. Regarding anti-corruption, the report

247、 may report in real name or report anonymously by telephone, letter, email, text message, or face to face. Investigation should be completed within 30 days from the date of acceptance of the reported matter. In the case of any difficulty in audit arrangements or any complicated matter, the time limi

248、t may be extended as appropriate, but shall be by no means more than 90 days. Investigation results should be fed back to the reporter at the same time.In order to create a clean and harmonious cooperation atmosphere, the Company has placed the requirements for compliance with the principles of good

249、 faith, integrity, confidentiality, strict compliance with the law, and liability for breach of contract, standardized supplier management and cooperation and clarified the reward and punishment mechanism in the Business Code Commitments. Meanwhile, the Company visits its partners from time to time

250、to ensure that they comply with the Companys Business Code. In 2020, the Company was not found to have been in involved in anti-corruption-related violations.Anti-corruption30 utility model patent applications75 national authorized inventions80 appearance patents185 patents in totalNumber of patents

251、（As of Dec. 31, 2020）185DescriptionPatent No.Patent typeDate of authorizationA method for preparing non-ionic vesicle with whitening effectInventions Authorized in 2020A method for preparing an anti-wrinkle composition and its PIT nano emulsionA method for preparing cosmetic microspheres with anti-a

252、ging effectA method for preparing sustained-release solid microspheres with anti-wrinkle effectA method for preparing a composition with long-lasting moisturizing effectA method for extracting high-purity lecithin from Camellia oleifera cakeA culture method capable of increasing the content of bacte

253、rin-like amino acids in umbilical laverA method for extracting high-purity isopimaric acid from pine nut oilA method for preparing small molecular weight dendrobium officinale polysaccharideInventionInventionInventionInventionInventionInventionInventionInventionInventionCN201710604087.7CN20171037863

254、9.7CN201710964531.6CN201710973739.4CN201710378638.2CN201810705984.1CN201610086706.3CN201810434808.9CN201710145503.12020.02.212020.03.272020.03.272020.03.272020.05.262020.09.152020.10.022020.12.012020.12.0132Sustainability ManagementProya Cosmetics Co., Ltd. Sustainability Report 2020In order for thi

255、s Report to better respond to the expectations of stakeholders, the Company has identified and evaluated substantive issues, clarified those material issues that have a significant impact on the Company and its stakeholders, and focused on disclosure and response in the Report.Efficient use of energ

256、yGreenhouse gas emissionsWaste gas discharge managementWaste discharge managementTechnology innovationQuality productHigh quality servicesEmployee rights and interestsDemocratic managementTraining and developmentEmployee motivationSupplier managementPromotion of industry developmentCommunity partici

257、pationCorporate governanceInformation disclosureInvestor relationsRisks and complianceIntellectual propertyAnti-corruptionSocial ResponsibilityEnvironmental ResponsibilityGovernanceResponsibilitySubstantive IssuesSustainability ManagementAnalysis of substantive issue33Sustainability ManagementProya

258、Cosmetics Co., Ltd. Sustainability Report 2020 Stakeholder participationStakeholderExpectations and DemandsMajor Communication ChannelsResponse MeasuresShareholders and investorsGet returns on investmentLearn about the Companys operationsShareholders meetingRelease reports regularlyVisitor surveyInf

259、ormation disclosureCompliance governanceHold the shareholders meetingContinuous return to shareholdersInvestor communication meetingGovernmentOperate in accordance with lawsPay taxes in accordance with lawsPromote employmentImplement various policiesAchieve quality developmentEcological protectionAc

260、tively accept supervisionInformation reportWorking meetingGovernment-enterprise cooperationRespond to the national strategyComply with laws, regulations and policiesPay taxes in full and on timeCreate jobsPromote compliance managementWork safetyEmployeesProtect legitimate rights and interestsProvide

261、 favorable benefits and development opportunitiesProvide a healthy and safe working environmentEnjoy the right to democratic participationLabor unionWorkers congressStrengthen employee trainingKeep open employee promotion channelsOccupational health and safety managementRegularly hold workers congre

262、ss CustomersQuality productsHigh quality servicesCustomer satisfaction surveyStrict quality managementInnovative R&D investmentImprove customer communication channelsSuppliersOpen and fair purchasingKeep commitmentsWin-win cooperationBidding platformPublic purchasing information, fair purchasingPerf

263、orm as agreedCommunitiesSupport social welfare undertakingsCreate jobs for communitiesVolunteer teamCarry out public service activitiesVolunteer activitiesTake social responsibilityIndustryFair competitionPromote industry progressIndustry cooperationEnhance R&D capacityParticipate in industry activi

264、tiesParticipation in making standardsEnvironmentGreen productsEnergy conservation and emissions reductionEnvironmental pollution controlImprove the formulaTechnology improvement and promotionWastewater/waste gas treatment and recyclingMinimize carbon emissionsMinimize energy consumption34Key Perform

265、ance HighlightsProya Cosmetics Co., Ltd. Sustainability Report 2020Economic performanceEnvironmental performanceKey Performance HighlightsIndicatorUnit201820192020Office electricity consumptionKWh7,225,680.00 6,902,580.00 8,435,445.00 Operating revenueRMB 0000236,124.88 312,352.02 375,238.68 Energy

266、intensityKWh/RMB 0000 revenue30.60 22.10 22.48 Energy efficiencyRMB 0000 revenue/kWh0.03 0.05 0.04 IndicatorUnit201820192020Water consumptionT134,797.00 142,295.00 156,273.00 Operating revenueRMB 0000236,124.88 312,352.02 375,238.68 Water consumption intensityT/RMB 0000 revenue0.57 0.46 0.42 Water e

267、fficiencyRMB 0000 revenue/T1.75 2.20 2.40IndicatorUnit2020Operating revenueRMB00000000037.52Net profit attributable to parent companyRMB0000000004.76Total assetsRMB00000000036.37Number of R&D employeesPerson196R&D investmentRMB000000000 0.72Total dividends paid to shareholders during the reporting p

268、eriodRMB 0000000001.44Note: For Proyas other financial data in 2020, refer to Proyas 2020 Annual Report.Notes: (1) Energy intensity reflects the energy consumed per RMB 10,000 output. The less energy consumption per unit output, the lower the energy intensity; (2) Energy efficiency reflects the reve

269、nue per KWh electricity output. The greater the output per unit electricity, the higher energy efficiency.Notes: (1) Water consumption intensity reflects the water consumed per RMB 10,000 output. The less water consumption per unit output, the lower the water consumption intensity; (2) Water efficie

270、ncy reflects the revenue per t water output. The greater the output per unit water, the higher the efficiency of water.EnergyWater35Key Performance HighlightsProya Cosmetics Co., Ltd. Sustainability Report 2020Social performanceIndicatorMajor source of emissionsUnit201820192020Direct emissions (Cate

271、gory 1)natural gasT carbon dioxide equivalent700,281.67 748,261.50 783,394.37 Indirect emissions (Category 2)Purchased electricity5,888,297.935,643,664.226,866,116.38Notes: (1) Direct emissions (Category 1) refer to greenhouse gas emissions resulting from coal, natural gas, petroleum and other fossi

272、l energy combustion activities and industrial production processes; (2) Indirect emissions (Category 2) refer to greenhouse gas emissions resulting from outsourced electricity and heat; (3) Direct emissions are calculated as per the Technical Guide for Calculations for Coordinated Control of Greenho

273、use Gases in Pollutant Removal from Pollution Treatment Facilities (trial); (4) Indirect emissions are calculated as per the Baseline Emission Factors for Regional Power Grids in China in 2019 Emissions Reduction Projects.Greenhouse gas emissionsIndicatorUnit2020EmployeesTotal number of employeesPer

274、son2,898By genderMale Person1,105Female Person1,793By age21 (incl.) - 30 years oldPerson1,17931 (incl.) - 40 years oldPerson1,27241 (incl.) - 50 years oldPerson41751 years old and abovePerson30By education backgroundJunior college or belowPerson2,099BachelorPerson689Master or abovePerson110Gender di

275、stribution of middle and senior managements MalePerson123FemalePerson110Employees hired under labor contracts%100%Employees provided with social insurance%100%Employees covered by the labor union%80%Number of training sessionsNr.4Total training timeHour46SocietyExternal donations(Product donations a

276、re priced at the retail price)RMB 00001,50036Indicators and StandardsProya Cosmetics Co., Ltd. Sustainability Report 2020Table of ContentsSDGsGRI StandardsCASS-4.0About this ReportGRI 101GRI 102P1.2P1.3Messages from Co-foundersGRI 102P2.2A Focus on Responsibility: Joint Efforts to Fight COVID-19GRI

277、403GRI 413GRI 416P3.1P3.2About ProyaCompany ProfileGRI 102P4.2P4.3P4.4Corporate CultureGRI 102P4.1Development StrategyGRI 102GRI 103 G2.2G2.3G2.4Honors in 2020GRI 102A3EnvironmentalGreen Intelligent Manufacturing: Creating an Eco-Friendly Production ProcessGRI 302GRI 303GRI 305GRI 306GRI 307E2.1E2.3

278、E2.5E2.11E2.13E2.15Green Procurement: Sustainable Raw Material SourcingGRI 301GRI 308E2.2Green Logistics: Reducing Carbon FootprintGRI 301GRI 305E2.19E2.21E2.22Green Office: Promoting Low-Carbon LifestyleGRI 302GRI 305E3.1Green Charity: Contributing to a Circular EconomyGRI 305E3.6SocialSincere Serv

279、ice, Customer FirstGRI 416M2.2M2.4M2.5M2.6M2.9Indicators and Standards37Indicators and StandardsProya Cosmetics Co., Ltd. Sustainability Report 2020SocialPeople Oriented Continued Focus on Employee DevelopmentGRI 401GRI 403GRI 404GRI 405GRI 406GRI 419S2.1S2.2S2.3S2.4S2.5S2.8S2.10S2.11S2.14S2.15 S2.1

280、6S2.17S3.3Be Open-minded and Collaborative to Sustain Healthy Industry GrowthGRI 202M3.6M3.8Supporting Charities and CommunitiesGRI 413S4.6S4.8S4.11GovernanceImproving Corporate GovernanceGRI 102GRI 201M1.1Improving Disclosure QualityGRI 102GRI 201M1.4Strengthening Investors Relationship ManagementG

281、RI 102GRI 201M1.5Tightening Risk and Compliance ManagementGRI 102M1.1Intellectual PropertyGRI 102GRI 202M3.5Anti-corruptionGRI 102GRI 205M1.3Sustainability ManagementAnalysis of substantive issueGRI 102G2.1Stakeholder participationGRI 102G6.1Key Performance HighlightsA2Indicators and StandardsA5Feed

282、back QuestionnaireA638Feedback QuestionnaireProya Cosmetics Co., Ltd. Sustainability Report 2020Dear readers,Thank you very much for taking the time to read the Sustainability Report 2020 of Proya Cosmetics Co., Ltd. In order to provide you and other stakeholders with more valuable information and e

283、ffectively promote the Companys ability and level to perform corporate social responsibility, we sincerely expect your comments and suggestionsMCQs (please tick in the appropriate box, where applicable)1.Your overall evaluation on this report: Very good Good Fair Poor Very poor2.The reports response

284、 and disclosure with respect to issues of concerns to stakeholders: Very good Good Fair Poor Very poor3.How do you think Proya is doing in terms of economic responsibility? Very good Good Fair Poor Very poor4.How do you think Proya is doing in terms of environmental responsibility Very good Good Fai

285、r Poor Very poor5.How do you think Proya is doing in terms of community responsibility? Very good Good Fair Poor Very poor6.Are the information, indicators and data disclosed in the report clear, accurate and complete? Very good Good Fair Poor Very poor7.Do you think the contents and format of this

286、report are easy to read? Yes NoOpen questionsDo you have any comments and suggestions on Proyas fulfillment of social responsibility and this Report?Your contact information:Name: ： Tel: E-mail:Company: Position:Mailing address: You may send us your valuable comments or suggestions by telephone, email or courier. Our contact information is given below:Contact Dept: Proyas Board of Directors Office Tel.: E-mail: Mailing address: Office of the Board of Directors of Proya Building, No. 588, Xixi Road, XihuDistrict, Hangzhou, 310023, Zhejiang ProvinceFeedback Questionnaire