Article 1 Purpose

Livzon Pharmaceutical Group Inc. (hereinafter referred to as the “Company”, together with its subsidiaries, collectively referred to as the “Group” or “we”) is committed to its mission of “prioritizing the quality of life of patients”, focusing on providing high-quality products for life and health, actively practicing the concept of sustainable development, and adhering to the highest standards of ethical conduct.

Suppliers are important partners in fulfilling our mission and achieving sustainable development. To regulate the ethical conduct of suppliers and ensure their compliance with our fundamental principles and values of business development, the Code of Conduct for Suppliers (hereinafter referred to as the “Code”) is formulated, which primarily covers human rights and labor, environmental protection, and business ethics.

We require suppliers to fully comply with the Code. Suppliers’ compliance with the Code will determine the establishment and maintenance of their cooperative relationship with the Group.

Article 2 Scope of Application

The Code applies to all entities that provide goods or services to the Group and their subsidiaries (hereinafter referred to as “suppliers”). In addition, suppliers shall enable their own suppliers to comply appropriately with the Code. Suppliers shall also ensure that the Group has the right to audit their own suppliers’ compliance with the Code and actively work with the Group on audits. The term “employees” in the Code specifically refers to the employees of suppliers.

Article 3 Compliance with Laws and Regulations

Suppliers shall strictly comply with all applicable laws, regulations, and ordinances in their respective countries or regions (collectively referred to as “laws”).

Article 4 Human Rights and Labor

1. Forced Labor: Suppliers shall not engage in forced labor, forcing employees to labor by means of violence, threats or illegal restrictions on personal freedom, or any form of human trafficking, slavery, or servitude.

2. Child Labor: Suppliers shall not employ child labor and shall not hire workers below the legal employment age in their respective localities.

3. Discrimination: Suppliers shall not allow or engage in any form of discrimination or prejudice, and shall treat all employees equally, regardless of their age, ethnicity, race, family status, ethnic background, skin color, gender, sexual orientation, religious belief, social origin, nationality, disability, pregnancy, or any other protected characteristics under the law. Suppliers shall adhere to the principle of fairness, impartiality and openness in their recruitment and employment. The recruitment is based on job qualifications and the ability of the candidate. Fairness and equal opportunities shall be ensured in employment processes such as remuneration, promotion, rewards, training opportunities, and dismissal.

4. Harassment: Suppliers shall respect the physical and mental well-being of their employees and provide a healthy, cooperative, and equal working environment. Suppliers shall not engage in any form of harassment in the workplace, including sexual harassment and non-sexual harassment against the will of others by means of oral language, written texts, images, physical behavior, etc. Furthermore, suppliers shall refrain from mental or physical abuse, insults, coercion, and the use of cruel or abusive disciplinary measures or corporal punishment.

5. Freedom of Association and Collective Bargaining: Suppliers shall respect employees’ freedom of association, their right to freely choose to form or join a trade union, and comply with all applicable local laws regarding freedom of association and collective bargaining. Trade unions have the right to represent employees in equal consultations and collective bargaining with suppliers and to sign collective agreements according to law. Employees shall be able to openly and fairly communicate with management about working conditions without fear of retaliation, punishment, or threats.

6. Working Hours, Remuneration, and Benefits: Suppliers shall approve and provide employees’ remuneration and related benefits in accordance with the principle of fairness. Such remuneration and benefits shall not be lower than the minimum wage standard and legally mandated benefits set by local laws. Wage distribution shall be made according to individual performance, following the principle of equal pay for equal work. Suppliers shall comply with applicable local laws regarding working hours, including paying overtime compensation or providing compensatory time off to employees who work overtime.

7. Occupational Health and Safety (OHS): Suppliers shall comply with all applicable local OHS laws and the Company’s Environment, Health and Safety (EHS) Management Policy. They shall ensure the occupational safety and health of employees in the workplace, protect them from any chemical, biological, physical, and psychological harm in the workplace, establish effective emergency plans and mechanisms to prevent workplace accidents/hazards, and continuously improve OHS management performance.

8. Physical and Mental Needs: Suppliers shall strive to create a physically and mentally healthy working conditions for employees.

Article 5 Environmental Protection

1. Suppliers shall comply with all applicable environmental protection laws in their respective countries or regions, including laws related to the prevention and management of pollutants and wastes such as waste gas, wastewater and wastes. They shall also comply with the Company’s Environment, Health, and Safety (EHS) Management Policy, strictly following the relevant requirements for environmental protection work. Suppliers shall obtain all necessary environmental permits, licenses, and registration certificates and comply with their operation and reporting regulations.

2. Suppliers shall make every effort to minimize the generation of pollutants and wastes in their business activities and effectively manage, monitor, control, and treat them to continuously reduce their environmental impact and improve environmental management performance.

3. Suppliers shall monitor and manage their greenhouse gas emissions and take effective measures to reduce these emissions, including reducing energy consumption, increasing the proportion of renewable energy use, and strengthening the application of clean energy projects.

4. Suppliers shall improve the efficiency of resource utilization, including energy and water, by improving equipment, facilities, technology, and production processes, and optimizing product structures, and make every effort to reduce resource consumption to protect natural resources.

5. Suppliers shall protect biodiversity, comply with laws and regulations related to biodiversity conservation, continuously reduce the adverse impact of their business activities on biodiversity, avoid operating in protected areas or sites containing important biodiversity, and actively engage in ecological environment protection activities while promoting the sustainable use of natural resources.

Article 6 Business Ethics

1. When conducting business and operations, suppliers shall adhere to the highest standards of business ethics, uphold principles of integrity and fairness, comply with all applicable anti-corruption and other business ethics-related laws in their respective countries or regions, as well as the Company’s Code of Labor Employment and Ethical Conduct and Anti-Corruption and Anti-Commercial Bribery Regulations. They shall establish effective mechanisms for control, supervision, review, and resolution to ensure compliance and fulfillment.

2. Suppliers shall agree to include clauses on operation with integrity in contracts signed with the Group.

3. Suppliers shall not engage in any acts of embezzlement, corruption, bribery, or extortion. They shall not pay or accept bribes in business (including the Group) or government relationships to obtain business opportunities or improper benefits.

4. Suppliers shall compete fairly without hindering or restrict fair competition, and shall comply with all applicable laws regarding fair competition and anti-monopoly.

5. Suppliers shall avoid any direct or indirect conflicts of interest with the Group, and shall not engage in or participate in any activities that conflict with the interests of the Group. If any potential conflicts of interest that may affect the performance of tasks entrusted by the Group are identified, suppliers shall report them to the Group.

6. Suppliers shall strictly protect the security of data and information that they or their agents possess (including personal information and confidential information provided by the Group) and use them reasonably. They shall comply with all applicable laws on data security and privacy protection in their respective countries or regions.

7. Suppliers shall treat animals with care, maintain animal welfare, and minimize the pain and stress experienced by animals. When approval by regulatory agencies and scientific validation are obtained, suppliers shall use alternative methods to minimize the use of animals.

Article 7 Supervision and Application

1. Suppliers shall agree that the Group and/or any of its agents have the right to conduct compliance reviews/audits on them (including visit to facilities related to the products and services provided to the Group and all relevant records). They shall implement corrective or improvement measures based on the review/audit results to ensure compliance with the Code.

2. Suppliers shall extend the requirements of the Code to any third parties to whom they subcontract all or part of the tasks assigned by the Group, and require them to comply with the Code. The Group reserves the right to check whether suppliers’ suppliers or subcontractors comply with the Code.

Article 8 Whistleblowing

If a supplier is found to be in violation of the Code, reports can be made to the Group in accordance with the Company’s Administrative Measures for Whistleblowing and Complaint.

Contact persons for whistleblowing: Mr. Wang, Mr. Xu

Whistleblowing Channel 1: Telephone: 0756-8135383, 0756-8135948

Whistleblowing Channel 2: Email: wangwei@livzon.cn, xudan0l@livzon.cn

Article 9 Miscellaneous

1. The Code has been reviewed and approved by the ESG Committee (the “ESG Committee”) under the board of directors (the “Board”). The ESG Committee regularly reports to the Board on the implementation of the Code and provides recommendations for the Board’s decision-making and oversight.

2. The ESG Committee is fully responsible for the implementation, oversight, and periodic review of the Code. The ESG Committee is responsible for the interpretation and revision of the Code.

3. For matters not covered in the Code, relevant laws, regulations, and normative documents shall apply.

4. The Code shall come into effect from the date of issuance.

Livzon Pharmaceutical Group Inc.