Proya Cosmetics Co., Ltd.

About this Report

Reporting Period

This Report is the first sustainability report issued by Proya Cosmetics Co., Ltd. to stakeholders. The information and performance contained in the report are mainly for the 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.

Scope of Reporting

This Report covers the environmental, social and corporate governance responsibilities of Proya Cosmetics Co., Ltd.hereinafter(referred to as “Proya” or the “Company” or “We”).

Information Reported

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, misleading 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.

Basis for Report Preparation

GB/T 36001-2015 Guidance on Social Responsibility Reporting

ISO 26000:2010 Guidance on Social Responsibility

The United Nations 2030 Sustainable Development Goals (SDGs)

Sustainability Reporting Standards by Global Sustainability Standard Board (GRI Standards)
CASS-CSR 4.0

SSE Guidelines for the Preparation of Reports on the Performance of Social Responsibility by Companies

SSE Guidelines for Environmental Information Disclosure by Listed Companies

Form of Reporting

（www.proya-group.com） This Report is released in electronic format. You can access it on our official website

About this Report

01 Environmental 09

About this Report Contents		01 Environmental	09
Messages from Co-founders	01	Green Intelligent Manufacturing: Creating an Eco-Friendly Production Process	10
A Focus on Responsibility: Joint Eforts to Fight COVID-19	02	Green Procurement: Sustainable Raw Material Sourcing	13
About Proya	06	Green Logistics: Reducing Carbon Footprint Green Ofce: Promoting Low-Carbon Lifestyle	14 15
		Green Charity: Contributing to a Circular Economy	15
		02 Social	16
		Sincere Service, Customer First	17
		People Oriented – Continued Focus on Employee	21
		Development
		Be Open-minded and Collaborative to Sustain	26
		Healthy Industry Growth
		Supporting Charities and Communities	27
		03 Governance	28
		Improving Corporate Governance	29
		Improving Disclosure Quality	29
		Strengthening Investors Relationship Management	30
		Tightening Risk and Compliance Management	30
		Intellectual Property	30
		Anti-corruption	31
		Sustainability Management	32
		Key Performance Highlights	34
		Indicators and Standards	36
		Feedback Questionnaire	38

Messages from Co-founders Proya Cosmetics Co., Ltd. Sustainability Report 2020 01

Messages from Co-founders

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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 perseverance and dedication and continue optimizing the corporate governance and promoting the Company to develop towards overall high quality.

Supporting Heroes Who Put Themselves in the Frontline

After 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 confirmed 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 frontline and contribute to global COVID-19 prevention and control.

Improving Corporate Governance

We continued optimizing our corporate governance and internal control system, thoroughly implemented the product-driven strategy, continuously improved our independent innovation capacity 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 to providing customers with better products and excellent services, contributing to the sustainable development of the industry.

Building a New Green Ecology

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01
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Responsibility 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 of its products. In 2020, we actively responded to the call for “peak carbon dioxide emissions” 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 using 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 practice green consumption and concern ecological balance and environmental protection so as to jointly build a green ecology for the sustainable development of man and nature.

Adhering to People Orientation, Honesty and Gratefulness

Responsibility is integrated into the business. Proya has always been adhering to the development principle of people-orientation, honesty and gratefulness. 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 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 responsibility, contribute to the society, and work together to create a better life.

Outlook 2021

The year 2021 marks the launch of China’s “14th Five-Year Plan” and achieving the second centenary goal, and also a key year for us to work towards a faster upgrade, 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 corporate 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 results, and devoting ourselves to becoming a world-class beauty company!

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A Focus on Responsibility: Joint Efforts to Fight COVID-19

Proya Cosmetics Co., Ltd. Sustainability Report 2020 02

A Focus on Responsibility

Joint Efforts to Fight COVID-19

The Spring Festival of China in 2020 was special. The outbreak of 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 government's COVID-19 prevention and control policies by comprehensively implementing COVID-19 prevention and control measures, guaranteeing the lives and health of employees, steadily advancing resumption of work and production, actively undertaking social responsibility, and contributing money and medical supplies to fight COVID-19. As of 31 December, 2020, the Company had donated RMB 15,106,453 in total 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 Industry and Commerce with the title of Outstanding Contribution to COVID-19 Prevention and Control and Great Zhejiang Entrepreneur for COVID-19 Control.

Setting up an RMB 15 Million Charity Fund to Fully Support COVID-19 Prevention and Control

After the outbreak of COVID-19, the Company immediately established the Special Leading Group for Response to COVID-19 under the command of Fang 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 purchase of medical supplies, cash donations and funding for employees, partners and family members.

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A Focus on Responsibility: Joint Efforts to Fight COVID-19

Proya Cosmetics Co., Ltd. Sustainability Report 2020 03

2020 02/01

The Company donated RMB 3 million to Wuhan Charity Federation to support Wuhan's COVID-19 prevention and control.

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2020
01/27
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The Company purchased approximately 90,000 EN N95 or above masks 20,000 disposable medical masks from Europe to be donated to the Second People's Hospital of Xishui County, Huanggang, Hubei Province and Hubei Charity Federation.

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2020
02/04
2020
02/26
2020
03/04
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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 sanitizer, to 10 hospitals in Huzhou.

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2020 03/08

The Company donated nearly RMB 1 million rinsing-free hands sanitizer to China Children and Teenagers’ Foundation, for use in the 2020 Foundation's Sunflower Project Love Fund 05/14 project to ensure the healthy growth of young people and children.

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2020
05
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The Company donated RMB 1 million to Wenzhou Charity Federation and Yueqing Charity Federation to support Wenzhou’s COVID-19 prevention and control.

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

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Through the ZHONGNANSHAN MEDICAL FOUNDATION OF GUANGDONG PROVINCE, the Company 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 Firming Essence, repair mask, hand cream, wash care, and rinsing-free hands sanitizer.

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The Company donated more than 200,000 disposable medical masks to the Fosun Foundation for use in a European COVID-19 control project and directed donations to 9 institutions in France, Italy, and Spain.

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Secretary General of LVMH Group, Chairman of La Cosmetic Valley, and Mayor of Val de Reuil, expressed their sincere gratitude to the Company and offered a Medal of Honor to Chairman, Hou Juncheng.

A Focus on Responsibility: Joint Efforts to Fight COVID-19

Proya Cosmetics Co., Ltd. Sustainability Report 2020 04

Undertaking Responsibility as a Backbone in COVID-19 Prevention

Development of new anti-COVID-19 products

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Allowing for the new situation of COVID-19 prevention and control and the Company’s business development planning, the Company made the most of its professional advantages by adding medical equipment and disinfection products and launching products designed for the circumstances, including Proya Anti-sensitive Repair Series (for “faces with masks”), Proya Rinsing-free Hands Sanitizer, and Proya alcohol disinfectant spray.

Proya Anti-sensitive Repair Series for Faces with Masks

Free gift of Rinsing-free Hands Sanitizer

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 offline dealers and other partners to assist them in COVID-19 prevention and control.

Fighting COVID-19 Scientifically and Promoting Resumption of Work and Production in Order

The 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 authorities. 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 of face masks to employees every day; regularly keeping track of employees who had travelled to or from severely hit regions and reminding employees to take precautions.

Proya's Headquarters and Huzhou production base were among the first to resume work and production in Xihu District, Hangzhou and Huzhou respectively. As of 8 April, the Company provided free nucleic acid tests and quarantine accommodation to the last batch of employees from Wuhan, bringing 100% employees back to work.

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Proya Rinsing-free Hands Sanitizer1 with 99.99% Effective Sterilization

As of 31 December, 2020, the Company had purchased pandemic prevention materials including over 200,000 face masks, over 20,000 protective gloves, goggles, protective clothing, disposable hats, forehead thermometers, forehead temperature scanners, rinsing-free hands sanitizer, dynalysors, and alcohol sterilizers.

The Company's First Batch 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.

A Focus on Responsibility: Joint Efforts to Fight COVID-19

Proya Cosmetics Co., Ltd. Sustainability Report 2020 05

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Implementing strict management to build Proya’s defense line against COVID-19

The 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 buildings every day, and disinfected incoming and outgoing vehicles one by one; provided hand sanitizers and alcohol at every floor.

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Dining in turn, allowing for nutrition and safety

In order to prevent cross-infection and satisfy the needs of employees for balanced nutrition, every day, the Company provided employees in turn with free meals, with three dishes and one soup each meal.

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COVID-19 prevention publicity and mass prevention and control

The Company specially prepared the guidelines for COVID-19 prevention, covering employee gathering and dining required for daily travel, transportation and work. The Company also pasted tips on COVID-19 prevention in public areas of buildings and placed COVID-19 prevention posters at the gates.

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Purchasing heart-warming bags for volunteers in the frontline

For anti-COVID-19 during the Spring Festival, Proya's 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).

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Donating blood without compensation to address clinical blood demands

In July 2020, employees were organized to help prevent and control COVID-19 by donating blood without compensation to ensure clinical blood demands for the fight against COVID-19.

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About Proya Proya Cosmetics Co., Ltd. Sustainability Report 2020 06

About Proya

Company Profile

The Company is committed to building a new domestic beauty industry platform, 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 Company’s brands have covered the beauty fields such as popular exquisite skin care, make-up and high-efficacy skin care products:

Popular exquisite skin care brand

Proya, 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, specially 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.

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Make-up brand
Principal
business
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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 style make-up brand for the minority. The main price range is RMB 50-150. This brand is sold online.

High-efficacy skin care brand

CORRECTORS is a high-efficiency skin care brand. The main price range is RMB 260-600. This brand is sold online.

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About Proya Proya Cosmetics Co., Ltd. Sustainability Report 2020 07

Corporate Culture

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Corporate Mission Core Corporate Values
Ever-lasting beauty and Responsibility and learn-
sharing happiness
ing Efficiency and collab-
oration Innovation and
fairness
Corporate Vision Corporate Essence
Becoming a world-class Diligence, pragmatism,
beauty company passion, initiative, hones-
ty, and gratitude
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Development Strategy

Adhering 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” strategy 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 brands

The core connotation of “6 * N” refers to the creation, empowerment and incubation of “different” brands that meet the “different” needs of “different” consumers based on the above six capabilities.

About Proya Proya Cosmetics Co., Ltd. Sustainability Report 2020 08

Honors in 2020

Included in the MSCI flagship index

Selected in the FTSE Russell Global Stock Index

The 14th Value Rankings of China’s Top 100 Listed Companies on the Main Board

Top 5 Home & Personal Care Companies in the Valuation Rankings of Listed Companies in 2020

P5W: Best New Media Operation Award, Excellent IR Team

Great Zhejiang Entrepreneur for COVID-19 Control

Zhong Nanshan Medical Foundation of Guangdong Province: Charity Organization in the Fight Against COVID-19

Wuhan Charity Federation: Outstanding Contribution Organization to COVID-19 Prevention and Control

Cosmetic Newspaper: China Cosmetics Aesthetic Charity Award

Company honor

Outstanding Contribution Award for Drug Development and Innovation in 2020

Zhejiang Standard Beauty Innovation Contribution Award in 2020

Zhejiang Province Health and Beauty Industry Standard Innovation Contribution Award in 2020 The first "Double Hundred Vanguard" Training Bases in Zhejiang Province

Zhejiang 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 animal experiments)

China Association of Fragrance Flavor and Cosmetic Industries: Excellent R&D Team, Advanced Enterprise in the Fight against COVID-19

Hangzhou Live Broadcast E-commerce Key Cultivation Park (Base)

Proya

VOGUE: Chinese Brand Awards in 2020

Rayli Beauty Awards: Super Single Mask Product of the Year (Aqua Moisturizing Renewal Mask)

Sina Beauty Awards: Single Product of New Trend in Ingredients (Deep Ocean Energy Essence)

TIMAGE

Cosmetic Newspaper: Emerging Brand Award

Light And Shadow Blending Palette : 2020 Fashion COSMO Beauty Award

Selected in the List of Transparent Labels: in 2020

Deep Ocean Energy Wrinkless And Firming Essence - Single Popular Anti-oxidant and Anti-aging Product of the Year

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Brand
honor
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Elastic Brightening Youth Activating Eye Cream - Popular Eye Cream of the Year

Elastic Brightening Youth Essence - No. 1 in the New Product List of the Year

Cosmetic Newspaper: G20 Chinese Cosmetics Brands, Top 2 Hydrating Brands, Top 3 Sunscreen Brands

Jumeili: Best Innovative Brand in 2020

China Beauty Expo: CBE Good Brand in 2020

Youzan: Top 10 Leaders in 2020

Huzhou Gold Brand Featured Product Souvenir

Top 10 Beauty Brands Made in Zhejiang

Environmental Proya Cosmetics Co., Ltd. Sustainability Report 2020 09

Environmental

Proya 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 production, 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 Company's genes and contribute 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 Company's advantageous communication channels, encourages consumers and the general public to follow consume green by paying attention to ecological balance, and environmental protection, so as to achieve naturally sustainable development of man and nature.

Our actions

SDGs Benchmark

Use clean energy and strengthen energy consumption control Increase environmental protection technology improvement, strengthen waste management and recycling, and reduce emissions
Give priority to raw materials that meet and have passed sustainable certification
Use recyclable packaging materials and environmentally-friendly transportation boxes, improve transportation efficiency, build a green logistics system, and reduce product carbon footprint
Advocate green office, carry out public environmental protection Plant trees to contribute to "carbon neutrality"

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Our actions

The Company's Huzhou production We have planted 5,823 saplings We have saved 16,000 base was named "Huzhou Green Factory" which can absorb 106.56 tons rolls of tapes and 9,688 of carbon dioxide each year cartons, which is equivalent to All raw material suppliers have signed reducing carbon dioxide emissions fair trade agreements, and the paper used in the CORRECTORS brand by 14.78 tons

packaging has passed FSC certification

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Environmental Proya Cosmetics Co., Ltd. Sustainability Report 2020 10

Green Intelligent Manufacturing: Creating an Eco-Friendly Production Process

The Company and its subsidiaries strictly act on the Environmental Protection Law of the People's Republic of China and other 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 subjected to any administrative penalty due to violation of applicable environmental protection laws and regulations.

Proya's 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, strictly 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 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 Company's Huzhou production base was named "Huzhou Green Factory".

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Environment of Proya Huzhou Production Base Park

Minimized resource consumption

The Company consumes electricity and natural gas, especially electricity. With the use of clean energy and further energy consumption control, while an average annual increase is reported in output, the Company's increase in energy consumption (such as electricity) is less than the average annual growth in output. Besides, given that tap water is mainly 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.

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The 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 Company 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 equivalent to saving 155t standard coal or reducing 30t carbon dioxide emissions.

Environmental Proya Cosmetics Co., Ltd. Sustainability Report 2020 11

Energy

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900 45
8 , 435 , 445 . 00 375,238.68
7,225,680.00 312,352.02
6,902,580.00
600 30
236,124.88
300 15
2018 2019 2020 2018 2019 2020
Electricity consumption（KWh） Operating revenue（RMB 0'000）
45 0.06 0.05 0.04
30.60
30 0.04
22.10 22.48 0.03
15 0.02
2018 2019 2020 2018 2019 2020
Energy Intensity（KWh/RMB 0'000 revenue）
Energy efficiency（RMB 0'000 revenue/kWh）
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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 revenue per KWh electricity output. The greater the output per unit electricity, the higher energy efficiency.

Water

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20 45
375,238.68
156,273.00 312,352.02
15 142,295.00 30
134,797.00 236,124.88
10 15
2018 2019 2020 2018 2019 2020
Water consumption（T） Operating revenue（RMB 0'000）
0.6 0.57 3
2.40
0.46 2.20
0.42
0.4 2 1.75
0.2 1
2018 2019 2020 2018 2019 2020
Water consumption intensity（T/RMB 0'000 revenue）
Water efficiency（RMB 0'000 revenue/T）
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 efficiency reflects the revenue per t water output. The
greater the output per unit water, the higher the efficiency of water.
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Environmental Proya Cosmetics Co., Ltd. Sustainability Report 2020 12

Minimized environmental impact

Wastewater management

The Company's 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; established 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 per month.

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Anaerobic Tower for Sewage Treatment in Huzhou Production Base

Case

Proya 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 advanced 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 extent to effectively improve water utilization efficiency.

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Landscape fish pond
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Waste gas management

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 Company's boilers were fueled by natural gas to reduce exhaust gas emissions and effectively protect the 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/m³ nitrogen oxide, lower than the required threshold of 50mg/m³ boiler nitrogen oxide emissions. 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.

Greenhouse gas emissions

Indicator	Major source of emissions	Unit	2018	2019	2020
Direct emissions (Category 1)	natural gas	T carbon dioxide equivalent	700,281.67	748,261.50	783,394.37
Indirect emissions (Category 2)	Purchased electricity		5,888,297.93	5,643,664.22	6,866,116.38

Notes: (1) Direct emissions (Category 1) refer to greenhouse gas emissions resulting from coal, natural gas, petroleum and other fossil 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 Greenhouse 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.

Environmental Proya Cosmetics Co., Ltd. Sustainability Report 2020 13

Waste management

The general solid wastes generated during the Company's production are dominated by waste packaging materials, 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 wastes, 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;

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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; The canteen swill is removed and transported by nearby farms, and used effectively after recycling.

Green Procurement: Sustainable Raw Material Sourcing

Proya 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 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 women's rights, and comply with fair trade.

Besides, the Company 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 green environmental protection.

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Natural products are the core ingredients of Proya’s products. For BOERHAVIA DIFFUSA extracts, Tara gum and HEOBROMA GRANDIFLORUM SEED BUTTER, the Company preferentially selects manufacturers under the Nagoya Protocol;

For raw materials from Africa, the Company preferentially selects manufacturers that have signed a fair trade agreement;

For the source of palm oil, the Company preferentially purchases raw materials under RSPO standards.

Environmental Proya Cosmetics Co., Ltd. Sustainability Report 2020 14

Green Logistics: Reducing Carbon Footprint

Ecologically recyclable packaging materials

Proya attaches great importance to the sustainability of product 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 production 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 box

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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;

More environmentallyfriendly materials

In 2020, the Company began to use uncovered and uncoated paper, fully covering the Ocean Hydropower series packaging; In 2020, the paper used in the Company's CORRECTORS brand packaging has passed FSC certification;

In 2020, the gray paper used in 90% of the Company's box sets was recycled paper.

The Company has assisted 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.

Environmentally conscious suppliers The Company prints instructions and mini-games on the inside of packaging and gift boxes, makes packaging and gift boxes into jewelry boxes and storage boxes, and encourages consumers to recycle Reusable gift boxes for reuse. packaging design

Improved logistics transportation efficiency

Proya has built five regional sub-warehouses in China based on the proportion of online orders from each province to improve transportation efficiency and reduce carbon emissions during transportation. In the future, Proya will continue optimizing and adjusting warehousing equipment, and more offline sub-warehouses are already in the pipeline.

Region	Covered provinces	Location
East China Sub-Warehouse	Zhejiang, Anhui, Jiangsu, Shanghai	Jiaxing
North China Sub-Warehouse	Inner Mongolia, Heilongjiang, Jilin, Liaoning, Bei- jing, Shanxi, Tianjin, Hebei, Shandong	Beijing
South China Sub-Warehouse	Guangdong, Fujian, Guangxi, Hainan	Guangzhou
Central China Sub-Warehouse	Henan, Hubei, Hunan, Jiangxi, Shaanxi	Wuhan
Southwest Sub-Warehouse	Sichuan, Chongqing, Yunnan, Guizhou, Xinjiang, Tibet, Gansu, Qinghai, Ningxia	Chengdu

Proya Cosmetics Co., Ltd. Sustainability Report 2020 15

Environmental

Environmentally-friendly transport cartons

In 2020, cartons 9,688 (430cm250cm210cm) were used, equivalent to reducing carbon dioxide emissions by 12.19 tons.

In 2020, Proya began to use recycling boxes instead of cartons. After recycling boxes are transported to the Company's E-commerce Warehouse, they will be recycled 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 (430cm250cm210cm) and reduce carbon dioxide emissions by 25.16 tons.

Since September 2020, Proya’s sub-brand TIMAGE has begun the pilot use of zipper cartons to replace traditional cartons, in a move to reduce the use of tapes while improving the customer’s unpacking experience. In 2021, Proya will promote the use of zipper cartons in all of the Company’s brands. It is estimated that 20 million zipper cartons will be used throughout the year, to the extent to save more than 500,000 rolls of tape and reduce carbon dioxide emissions by 81.2 tons.

In 2020, 664,000 zipper cartons were used, saving

16,000 rolls of tapes, equivalent to reducing carbon dioxide emissions by 2.6 tons.

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Locking Plastic Circulation Box

Green Office: Promoting Low-Carbon Lifestyle

The Company attaches great importance to environmental protection by actively promoting 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 employees 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 of resources, so as to achieve the purpose of saving resources and reducing emissions.

Green Charity: Contributing to a Circular Economy

While carrying out green operations to reduce carbon emissions, the Company also spontaneously organizes green environmental protection projects to offset the carbon dioxide emissions generated during operations and achieve "carbon neutrality" in the shortest possible December, 2020, the Company had planted 5,823 saplings, which can absorb 106.56 tonstime. Since 2007, the Company has organized afforestation activities for many times. As of 31 2 of carbon dioxide each year.

In addition, the Company also actively advocates the idea of environmental protection by encouraging employees to actively participate in public activities related to global environmental protection to practice green environmental protection with practical actions.

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2As per the National Handbook on Energy Conservation and Emissions Reduction by the Ministry of Science and Technology of the People’s Republic of China, one tree can absorb 18.3kg carbon dioxide each year.

Social Proya Cosmetics Co., Ltd. Sustainability Report 2020 16

Social

Proya adheres to the spirit of integrity and gratitude by defending the legitimate rights 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 industry cooperation, and contributing to the healthy and rapid development of the industry with the help 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 people's livelihood and to undertake corporate social responsibility by associating the Company's development with a harmonious society.

Our actions

SDGs Benchmark

Promote responsibility testing to ensure consumer safety while reducing animal testing
Fully protect the rights and interests of employees and stick to anti-sex discrimination
Provide employees with a market-competitive compensation and benefits system, carry out employee equity incentives, and attract and retain core talents
Support employees in improving skills and academic qualifications, and build a platform for employees to realize their self-worth

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Participate in making team standards and deepen industry collaboration

Support the development of education in poverty-stricken regions

Our results

RMB 72.2 million 52 employees attendR&D investment and ed and completed Proya's top-up degree courses 196 R&D employees

Participation in making

2 group standards for in alternatives to animal testing

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Social Proya Cosmetics Co., Ltd. Sustainability Report 2020 17

Sincere Service, Customer First

Focus on technology innovation

The Company 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 safe and satisfactory products.

In 2020, the Company's R& D invest ment was RMB 72.2 million, accounting to 1.92 % of the total revenue

Industry-university-research cooperation

The Company has cooperated with the Institute of Microbiology, Chinese Academy of Sciences on the deep-sea microbial resource utilization and active substance development project; concluded an industry-university-research cooperation agreement with the School of International Cosmetics, Shanghai Institute of Technology to fully cooperate on personnel cultivation, scientific research, technical innovation and personnel training

Strategic technical cooperation

The Company has achieved strategic 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.

As of 31 December, 2020, the Com pany had 196 R&D employees

In 2020, the project for key technology and standardization of the detection of banned and restricted substances in cosmetics carried out by Proya with Hangzhou Food and Drug 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 .

Promoting responsible tests

In order to ensure the safety of consumers, applicable Chinese laws and regulations expressly require that special cosmetics and products such as whitening, sunscreen, and children’s use shall pass animal experiments. The Company follows the requirements of current Chinese laws and regulations by conducting experiments on special cosmetics to ensure that there are no ingredients in the products that will cause adverse reactions to consumers.

In 2020, Proya won the honorary title of “Excellent R&D Team” in China’s flavor, fragrance and cosmetics industry.

On the basis of meeting the legal requirements, the Company also actively adopts in alternatives to animal testing to reduce animal experiments as possible, and adopts animal alternative test methods including 3D artificial skin models, isolated animal organ models, characteristic cells and microbial models to evaluate in vitro the potential skin irritation, eye irritation, sensitization, phototoxicity 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 Company 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 improvement 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 experimentation, seeking to find new cosmetic experiment solutions to replace animal experiments.

Proya Cosmetics Co., Ltd. Sustainability Report 2020 18

Social

Case Beauty without Cruelty, promoting the construction of animal substitute experiments for cosmetics in China

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Proya actively implements the concept of beauty without cruelty by investing a lot of resources to explore and develop new alternative animal testing methods. On 18 March, 2020, the Company’s two project researches won the 2019 Open Scientific Research Funding Project in Key Laboratory of Alternatives to Animal Testing Technology for Cosmetics of the National Medical Products Administration.

In 2020, less than 10 % of the Company's products were subject to animal experiments

In 2020, the Company was engaged in two open scientific research projects in the Key Laboratory of Alternatives to Animal Testing Technology for Cosmetics of the National Medical Products Administration.

Guaranteed product quality

Quality management system

The Company has certified by standard systems including ISO 9001 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 Company's total quality management system and provide management guarantees for the production of high-quality products.

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ISO 9001 Quality Management System

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ISO 22716 Cosmetics - Good Manufacturing US FDA-GMPC Certification Practices

Social Proya Cosmetics Co., Ltd. Sustainability Report 2020 19

Total quality management

As overall required by all quality management systems and as per the Company's quality planning, Proya has established the organizational structure of the Quality Management Department and a total quality management system 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 METTLER's bar code management and SAP system and Alshey's QR code printing and automatic code checking system 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 and transportation, market inspection and consumption, so as to achieve a full life cycle management in production, sales, circulation and services.

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The Company's product Proya Deep Ocean White Luminous Cream Balance was certified by "Made in Zhejiang"

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----- Start of picture text -----

Material control Facilities and equipment
Regulations Process and
Total
production control
Quality
management
system
New product
Packaging and
development
labeling
Supplier management Laboratory control
----- End of picture text -----

Chemical substances management

The Company's chemical substances management strictly follows China's current environmental protection laws and regulations, labor 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 from all rinsing products, avoided such raw materials in new product development, and replaced them with natural degradable raw materials.

Social Proya Cosmetics Co., Ltd. Sustainability Report 2020 20

Provision of quality service

Prompting product safety

Different people and skin types have different tolerance 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 select and scientifically use cosmetics.

The 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 development and operating mechanisms with multiple brands, multiple categories, multiple channels, and multiple modes.

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----- Start of picture text -----

Tmall
Franchise store
Taobao
Supermarket Vipshop
Online
Offline
Direct sales/ JD.com
DealerMode DistributionMode
Single-brand store
Pinduoduo
Tik Tok
……
……
----- End of picture text -----

Response to customer demands in time

The Company attaches great importance to protecting consumers' rights and interests by always adhering to the service concept of serving with heart 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.

Service channels

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----- Start of picture text -----

Offline store consulting.
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----- Start of picture text -----

A c o m p l e t e a n d
PROYA-VIP Center 2 4 - h o u r s e r v i c e e f f i c i e n t o n l i n e
provided on Weibo hotline (400-8517- c u sto m e r s e r v i ce
and Proya's official 666), displayed on the
platform by means of
member Club on official website and
WeChat. product packaging. ‘Artificial + AI’, covering
CTS, Wangwang and
Dianxiaomi.
----- End of picture text -----

Social Proya Cosmetics Co., Ltd. Sustainability Report 2020

People Oriented – Continued Focus on Employee Development

Protection of the legitimate rights and interests of employee

Pursuant to the Labor Law of the People's Republic of China, the Contract Law of the People'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 employees, 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.

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----- Start of picture text -----

1.04 3.80
14.39
23.77
Gender 38.13 Age 40.68 Distribution
61.87 Composition of Composition of of Employee Education
Employees Employees Levels
43.89 72.43
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----- Start of picture text -----

■ Male
■ Female
----- End of picture text -----

■ 21 (incl.) -30 years old ■ 31 (incl.) -40 years old ■ 41 (incl.) -50 years old ■ 51 years old and above

■ Junior college or below ■ Bachelor

■ Master or above

In 2020, the Company had

2,898 employees; all of them were hired under labor contracts and provided with social insurance.

In 2020, women accounted f o r 47.21% o f t h e Company's middle and senior

3 managements .

Competitive compensation and benefits system

Proya takes value creation as the basis for the Company's salary distribution, 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 Appraisal 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 incentives 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 Company's employees at all posts.

In addition, the Company has also developed the Measures for Benefits to create convenience for employees in life and health and enhance their sense of belonging and collective honor in the Company.

3The Company’s middle and senior managements refer to managers and above.

Social Proya Cosmetics Co., Ltd. Sustainability Report 2020 22

Insurance and housing fund ● Paid annual leave ● Statutory holidays
Marriage and funeral holidays

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----- Start of picture text -----

Other benefits Special benefits
● Commercial insurance ● High temperature allowance
● Bill allowance ● Marriage and funeral cash gifts
● Meal allowance ● Birthday gifts
● Annual tour ●
Benefits for the elderly
● Health checkup ●
Educational benefits for children
● Holiday greetings ●
Special health benefits
●
Team building benefits
----- End of picture text -----

Attraction and retainment of core talents

In order to further establish and improve the Company's long-term incentive mechanisms, attract and retain outstanding talents, fully stimulate the enthusiasm of the Company's senior managements, middle managements and 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 Company's total share capital, to 29 of the Company's senior managements, middle managements and core backbone employees.

January 2020

June 2020

January 2021

the conditions for the release of the first restricted sales period for the first grant part and the reserved grant part of the Company's 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, the Company adjusted its 2020 target operating revenue growth based on actual operation conditions to ensure the Company's restricted stock incentive plan would be implemented successfully.

the conditions for the release of the second restricted sales period for the first grant part and the reserved grant part of the Company's 2018 restricted stock incentive plan were met and such part was sold and circulating in the market.

Construction of a platform for employee growth

In order to match the Company's talent development strategy, further optimize the Company's HR structure and achieve the Company's 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 Development Plan for Core and Key Positions and the Rules for Training in line with the Company's 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' personal development, achieve a win-win cooperation.

Proya Lecture Hall

E-learning online platform

The Company will occasionally invite some experienced 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 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 Company's employees and distributors.

In 2020, the Company

organized 4 trainings on various topics, totaling

46[ hours.]

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The Company organized employees to carry out professional training to empower employees

Proya's Training System

Social Proya Cosmetics Co., Ltd. Sustainability Report 2020 23

The Company attaches great importance to employee education improvement 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 Proya's top-up degree courses, in a move to provide training and learning opportunities to all employees ready to improve their education backgrounds.

As of 31 December, 2020, 52 employees attended and completed Proya's top-up degree courses.

Case

In 2020, the Company organized 7 professional skills improvement training activities, covering tea art specialists, pastry cooks, flower arrangers, 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 616,605 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 for Hangzhou rental/housing allowances.

The 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 path for employees. Meanwhile, the Company will give priority to employees with excellent performance appraisals in promotion and succession.

Proya's Career Promotion System

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----- Start of picture text -----

Management Professional Operation Professional title naming rules
----- End of picture text -----

Management	Professional	Operation	Professional title naming rules
M5-CEO
M4 - Executive Vice President	P7 - Chief Scientist
M3 - General Manager of Center	P6 - Scientist
M2 - Director	P5 - Discipline Leader		Job title + address (director)
M1 - Manager	P4 - Researcher		Job title + address (manager)
	P3 - Expert	O4 - Senior Artisan	Job title + address (supervisor)
	P2 - Specialist	O3 - Artisan	Job title + address (specialist)
	P1 - Assistant	O2 - Senior Operator
		O1 - Operator

Notes

Promotion between different sequence levels is determined based on the qualification readiness of positions to address career development;
According to work qualifications, skill proficiency and performance, each sequence level can be divided into senior, intermediate and junior, and compensation is differentiated to address salary development.

Social Proya Cosmetics Co., Ltd. Sustainability Report 2020 24

Further democratic communication with employees

The Company establishes a labor union by law and invests funds every year to support the union's activities and protect the legitimate 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 participate in management, and encourage employees to communicate with the Company sincerely for reasonable suggestions on the Company's management and development.

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Employee Representative Meeting

As of 31 December, 2020, the Company's union covered

80%[of the employees.]

As of 31 December, 2020, the Company received

4,548[reasonable ] suggestions from employees,

to the extent to create

RMB 600 million revenue for the Company.

Emphasizing employee health and occupational safety

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 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 skills. Every year, it organizes special safety emergency drills every year to enhance employees' safety awareness and emergency response.

In addition, the Company's production base has achieved remote fire monitoring, whereby the fire supervision department can learn about the operation and monitoring of the fire fighting system at any time, to the extent to improve fire protection technology, information, and intelligence.

Case

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Proya and the Youth League Committee of Zhejiang Provincial People's Hospital organized a first-aid knowledge education activity, and invited Dr. Gong Fang Xiao, an attending physician in the Intensive Care Unit of Zhejiang Provincial People's Hospital and a certified instructor of Chinese

CPR training, to give a lecture on first-aid knowledge, in a move to enhance employees' awareness 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.

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Inviting Experts to Provide Fire Drill Training on Site to Improve Employees' Safety Awareness

Social Proya Cosmetics Co., Ltd. Sustainability Report 2020 25

Helping employees balance between work and life

The Company fully considers the basic 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.

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----- Start of picture text -----

Multi-function Room Gym Mother and Baby Room
Canteen Lounge Bar
----- End of picture text -----

To ensure the healthy development of employees' physical and mental health, relieve 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.

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----- Start of picture text -----

Internal Cultural Event Employee Travel
Employees were organized to participate in the Hanfu
Exchange Conference Themed blind date event hosted
Mountaineering Fun Sports Meeting
by the Xihu District Federation of Trade Unions
----- End of picture text -----

Proya Cosmetics Co., Ltd. Sustainability Report 2020 26

Social

Be Open-minded and Collaborative to Sustain Healthy Industry Growth

Participation in formulating standards and contribute to industry development

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 innovation experience.

Multi-party collaboration to jointly promote the formal Case implementation of two group standards for alternatives to animal testing

On 9 October, 2020, the Company cooperated with international cosmetics companies including Amway 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 testing 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.

In 2020, the Company led and participated in formulating 2 group standards;

As of 31 December, 2020,

the Company had led and participated in the formulation

of 9 national standards, 3

industry standards, 1 local

standard, and 11 group standards.

Such two group standards were published and brought into force to further improve China's in vitro testing standards for cosmetics allergies and help establish a cosmetic product safety evaluation system.

Further collaborative innovation and promoted industry cooperation

The Company organized and participated in industry activities, to promote industry exchanges and dialogues; continued deepening extensive cooperation with companies in and out of the industry, and strengthened multilateral cooperation.

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Proya 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.

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Proya was named one of the first "Double Hundred Vanguard" Training Bases in Zhejiang Province

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Proya participated in the Zhejiang Cosmetic Industry High Quality Development Conference and the 6th Cosmetic Industry Leaders' Summit

Common development with suppliers

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 established 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.

In 2020, 60% of the Company's cooperative suppliers passed SA 8000 (the "Social Responsibility Standard").

Social Proya Cosmetics Co., Ltd. Sustainability Report 2020 27

Supporting Charities and Communities

Proya 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 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.

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Case "Public Art Exhibition + Mobile Classroom"-Care for Children with Autism

In November 2020, by donating to the China Volunteer Service Foundation, Proya and Shanghai Noah Foundation held the "Star Talk•Star Wish" Bi Changyu Oil Painting Exhibition at the Proya Qingteng Art Center. The exhibition would last until 30 December, where 54 paintings 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 Foundation, 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 levels, 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.

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Proya Chairman Hou Juncheng (second from left) and Painter Bi Changyu (second from right)

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----- Start of picture text -----

9/9 Charity Day# Proya helped rural children make their dreams
come true
Proya donated customized school uniforms, notebooks, pencil boxes
and other school supplies to the children of the Hope Primary School
----- End of picture text -----

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----- Start of picture text -----

The donations are used for the pairing project between Xihu
District and Kaili City, Guizhou Province
The Company's employees actively participated in the volunteer
service of Hangzhou Model City
----- End of picture text -----

Governance Proya Cosmetics Co., Ltd. Sustainability Report 2020 28

Governance

Proya strictly implements the applicable regulatory requirements for the high-quality development of 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 Company's responsible brand image to the capital market and lay a management foundation for sustainable operations.

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----- Start of picture text -----

Our actions SDGs Benchmark
----- End of picture text -----

Establish an efficient governance system and structure Strengthen information disclosure and investor relations management,
Enhance information transparency
Improve the company's risk and compliance control

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Strengthen the protection of intellectual property and avoid the risk of intellectual property
Pay attention to anti-corruption and comply with good business ethics

Our results

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----- Start of picture text -----

Obtained the information disclosure A total of 3 investor research In 2020, 28 new
and communication activities
A of Shanghai Stock Exchange were conducted online and on trademarks and 8
site to receive more than new copyrights were added
300 investors in total
----- End of picture text -----

Governance Proya Cosmetics Co., Ltd. Sustainability Report 2020 29

Improving Corporate Governance

As 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 continuously improved its standard operations and improve its corporate governance structure according to the Company's 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, 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 governance structure.

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----- Start of picture text -----

Shareholders'
Strategy Committee Meeting
B oard of Supervisors
Remuneration and
Appraisal Committee
Board of Directors
Nomination Board Office
Committee
Audit Committee
Chairman
Internal Audit
Department
Chairman's Office
General Manager's Ofce General Manager Corporate Culture
Department
Governance Structure Diagram
----- End of picture text -----

Improving Disclosure Quality

As required by the competent regulatory authorities including 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 People's Republic of China, the Securities Law of the People's Republic of China 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 Company's operating conditions and the progress of significant matters in time. In 2020, the Company was rated A by the Shanghai Stock Exchange for information disclosure.

In 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, the adjustment of the 2018 restricted stock incentive plan and the 2020 company-level performance assessment indicators in related documents. There

were 7 meetings of the Board of

Directors, 6 meetings of the Board

of Supervisors, 2 meetings of the

Strategy Committee, 6 meetings of

the Audit Committee, and 1 meeting of the Remuneration and Appraisal Committee, where independent directors were present in person or in proxy.

In 2020, the Company issued 4[regular 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 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.

Governance Proya Cosmetics Co., Ltd. Sustainability Report 2020 30

Strengthening Investors Relationship Management

The Company attaches great importance to 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.

Meanwhile, 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 that investors can learn about the Company's latest updates in a timely and accurate manner and regularly publish survey minutes on SSE e-interaction.

In 2020, 3 investor research and communication activities were conducted by the Company online and on site to receive more than 300[ investors in total.]

Tightening Risk and Compliance Management

Risk managemen

The Company upholds the risk management philosophy of matching risks and returns and a "prudent" risk appetite, to minimize the negative impact of risks on the Company's operating performance and maximize the interests of shareholders and other equity investors. Based on this risk management target, the basic strategy of the Company's risk management is to confirm and analyze all risks faced by the Company, establish an appropriate bottom line of risk tolerance and carry out risk management, and timely and reliably monitor all risks, and control the risks within limits.

Compliance management

In 2020, the Company continued laying a solid foundation for compliance management by strengthening the construction of the compliance management 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.

Intellectual Property

Pursuant to the Patent Law of the People's Republic of China, the Trademark Law of the People's Republic of China, the Copyright Law of the People's Republic of China and the Anti-Unfair Competition Law, the Company has made the Intellectual Property Management System, whereby to standardize the Company's intellectual property management, strengthen Intellectual property protection, prevent intellectual property losses, encourage innovation, enhance the Company's 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 topics 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.

In 2020, 28 new trademarks and 8 new copyrights were added

As of 31 December, 2020, the Company

owned 733 65[ copyrights.]

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Certificate of Intellectual Property Management System Certification

trademarks and

Governance Proya Cosmetics Co., Ltd. Sustainability Report 2020 31

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Number of patents（As of Dec. 31, 2020）
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185 185 patents in total
80 appearance patents
75 national authorized inventions
30 utility model patent
applications
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Inventions Authorized in 2020

Description A method for preparing non-ionic vesicle with whitening efect	Patent No. CN201710604087.7	Patent type Invention	Date of authorization 2020.02.21
A method for preparing an anti-wrinkle composition and its PIT nano emulsion	CN201710378639.7	Invention	2020.03.27

A method for preparing cosmetic microspheres with anti-aging efect	CN201710964531.6	Invention	2020.03.27
A method for preparing sustained-release solid microspheres with anti-wrinkle efect	CN201710973739.4	Invention	2020.03.27
A method for preparing a composition with long-lasting moisturizingefect	CN201710378638.2	Invention	2020.05.26
A method for extracting high-purity lecithin from Camellia oleifera cake	CN201810705984.1	Invention	2020.09.15
A culture method capable of increasing the content of bacterin- like amino acids in umbilical laver	CN201610086706.3	Invention	2020.10.02
A method for extracting high-purity isopimaric acid from pine nut oil	CN201810434808.9	Invention	2020.12.01
A method for preparing small molecular weight dendrobium ofcinalepolysaccharide	CN201710145503.1	Invention	2020.12.01

Anti-corruption

The Company has established the Employee Supervision 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 Company's healthy development, and provide protection mechanisms to reporters. Regarding anti-corruption, the report 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 limit 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 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 to ensure that they comply with the Company's Business Code. In 2020, the Company was not found to have been in involved in anti-corruption-related violations.

Sustainability Management Proya Cosmetics Co., Ltd. Sustainability Report 2020 32

Sustainability Management

Analysis of substantive issue

In order for this 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.

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Technology innovation
Quality product
Social Substantive Governance
High quality services Responsibility Issues Responsibility
Employee rights and interests
Democratic management
Training and development
Employee motivation Environmental
Responsibility
Supplier management
Promotion of industry development
Efficient use of energy
Community participation Greenhouse gas emissions
Waste gas discharge management
Waste discharge management
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Corporate governance
Information disclosure
Investor relations
Risks and compliance
Intellectual property
Anti-corruption
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Proya Cosmetics Co., Ltd. Sustainability Report 2020 33

Sustainability Management

Stakeholder participation

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Stakeholder Expectations and Demands Major Communication Response Measures
Channels
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Stakeholder	Expectations and Demands	Major Communication Channels	Response Measures

Shareholders and investors	Get returns on investment Learn about the Company's operations	Shareholders' meeting Release reports regularly Visitor survey	Information disclosure Compliance governance Hold the shareholders' meeting Continuous return to shareholders Investor communication meeting
Government	Operate in accordance with laws Pay taxes in accordance with laws Promote employment Implement various policies Achieve quality development Ecological protection	Actively accept supervision Information report Working meeting Government-enterprise cooperation	Respond to the national strategy Comply with laws, regulations and policies Pay taxes in full and on time Create jobs Promote compliance management Work safety
Employees	Protect legitimate rights and interests Provide favorable benefts and development opportunities Provide a healthy and safe working environment Enjoy the right to democratic participation	Labor union Workers' congress	Strengthen employee training Keep open employee promotion channels Occupational health and safety management Regularly hold workers' congress
Customers	Quality products High quality services	Customer satisfaction survey	Strict quality management Innovative R&D investment Improve customer communication channels
Suppliers	Open and fair purchasing Keep commitments Win-win cooperation	Bidding platform	Public purchasing information, fair purchasing Perform as agreed
Communities	Support social welfare undertakings Create jobs for communities	Volunteer team	Carry out public service activities Volunteer activities Take social responsibility
Industry	Fair competition Promote industry progress	Industry cooperation	Enhance R&D capacity Participate in industry activities Participation in making standards
Environment	Green products Energy conservation and emissions reduction Environmental pollution control	Improve the formula Technology improvement and promotion	Wastewater/waste gas treatment and recycling Minimize carbon emissions Minimize energy consumption

Key Performance Highlights Proya Cosmetics Co., Ltd. Sustainability Report 2020

Key Performance Highlights

Economic performance

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Indicator Unit 2020
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Indicator	Unit	2020

Operating revenue	RMB 000’000’000	37.52
Net proft attributable to parent company	RMB 000’000’000	4.76
Total assets	RMB 000’000’000	36.37
Number of R&D employees	Person	196
R&D investment	RMB 000’000’000	0.72
Total dividends paid to shareholders during the reporting period	RMB 000’000’000	1.44

Note: For Proya's other financial data in 2020, refer to Proya's 2020 Annual Report.

Environmental performance

Energy

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Indicator Unit 2018 2019 2020
Office electricity KWh 7,225,680.00 6,902,580.00 8,435,445.00
consumption
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Ofce electricity consumption		KWh	7,225,680.00	6,902,580.00	8,435,445.00
Operating revenue		RMB 0’000	236,124.88	312,352.02	375,238.68
Energy intensity Energy efciency		KWh/RMB 0'000 revenue RMB 0'000 revenue/kWh	30.60 0.03	22.10 0.05	22.48 0.04

Water

Indicator	Unit	2018	2019	2020
Water consumption	T	134,797.00	142,295.00	156,273.00
Operating revenue	RMB 0’000	236,124.88	312,352.02	375,238.68
Water consumption intensity	T/RMB 0'000 revenue	0.57	0.46	0.42
Water efciency	RMB 0'000 revenue/T	1.75	2.20	2.40

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 efficiency reflects the revenue per t water output. The greater the output per unit water, the higher the efficiency of water.

Key Performance Highlights Proya Cosmetics Co., Ltd. Sustainability Report 2020 35

Greenhouse gas emissions

Indicator	Major source of emissions	Unit	2018	2019	2020
Direct emissions (Category 1)	natural gas	T carbon dioxide equivalent	700,281.67	748,261.50	783,394.37
Indirect emissions (Category 2)	Purchased electricity		5,888,297.93	5,643,664.22	6,866,116.38

Social performance

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Indicator Unit 2020
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Indicator	Indicator	Indicator	Unit	2020
Employees	Total number of employees		Person	2,898
	By gender	Male	Person	1,105
		Female	Person	1,793
	By age	21 (incl.) - 30 years old	Person	1,179
		31 (incl.) - 40 years old	Person	1,272
		41 (incl.) - 50 years old	Person	417
		51 years old and above	Person	30
	By education background	Junior college or below	Person	2,099
		Bachelor	Person	689
		Master or above	Person	110
	Gender distribution of middle and senior managements	Male	Person	123
		Female	Person	110
	Employees hired under labor contracts		%	100%
	Employees provided with social insurance		%	100%
	Employees covered by the labor union		%	80%
	Number of training sessions		Nr.	4
	Total training time		Hour	46
Society	External donations (Product donations are priced at the retail price)		RMB 0’000	1,500

Proya Cosmetics Co., Ltd. Sustainability Report 2020 36

Indicators and Standards

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GRI
Table of Contents SDGs CASS-4.0
Standards
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Table of Contents	Table of Contents	GRI Standards	CASS-4.0

About this Report		GRI 101 GRI 102	P1.2 P1.3
Messages from Co-founders		GRI 102	P2.2
A Focus on Responsibility: Joint Eforts to Fight COVID-19		GRI 403 GRI 413 GRI 416	P3.1 P3.2
About Proya	Company Profle	GRI 102	P4.2 P4.3 P4.4
	Corporate Culture	GRI 102	P4.1
	Development Strategy	GRI 102 GRI 103	G2.2 G2.3 G2.4
	Honors in 2020	GRI 102	A3
Environmental	Green Intelligent Manufacturing: Creating an Eco-Friendly Production Process	GRI 302 GRI 303 GRI 305 GRI 306 GRI 307	E2.1 E2.3 E2.5 E2.11 E2.13 E2.15
	Green Procurement: Sustainable Raw Material Sourcing	GRI 301 GRI 308	E2.2
	Green Logistics: Reducing Carbon Footprint	GRI 301 GRI 305	E2.19 E2.21 E2.22
	Green Ofce: Promoting Low- Carbon Lifestyle	GRI 302 GRI 305	E3.1
	Green Charity: Contributing to a Circular Economy	GRI 305	E3.6
Social	Sincere Service, Customer First	GRI 416	M2.2 M2.4 M2.5 M2.6 M2.9

Proya Cosmetics Co., Ltd. Sustainability Report 2020 37

Indicators and Standards

Social	People Oriented – Continued Focus on Employee Development	GRI 401 GRI 403 GRI 404 GRI 405 GRI 406 GRI 419	S2.1 S2.2 S2.3 S2.4 S2.5 S2.8 S2.10 S2.11 S2.14 S2.15 S2.16 S2.17 S3.3
	Be Open-minded and Collaborative to Sustain Healthy Industry Growth	GRI 202	M3.6 M3.8
	Supporting Charities and Communities	GRI 413	S4.6 S4.8 S4.11
Governance	Improving Corporate Governance	GRI 102 GRI 201	M1.1
	Improving Disclosure Quality	GRI 102 GRI 201	M1.4
	Strengthening Investors Relationship Management	GRI 102 GRI 201	M1.5
	Tightening Risk and Compliance Management	GRI 102	M1.1
	Intellectual Property	GRI 102 GRI 202	M3.5
	Anti-corruption	GRI 102 GRI 205	M1.3
Sustainability Management	Analysis of substantive issue	GRI 102	G2.1
	Stakeholder participation	GRI 102	G6.1
Key Performance Highlights			A2
Indicators and Standards			A5
Feedback Questionnaire			A6

Feedback Questionnaire Proya Cosmetics Co., Ltd. Sustainability Report 2020 38

Feedback Questionnaire

Dear 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 effectively promote the Company's ability and level to perform corporate social responsibility, we sincerely expect your comments and suggestions

MCQs (please tick √ in the appropriate box, where applicable)

1.Your overall evaluation on this report:

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2.The report's response and disclosure with respect to issues of concerns to stakeholders:
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3.How do you think Proya is doing in terms of economic responsibility?

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4.How do you think Proya is doing in terms of environmental responsibility
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5.How do you think Proya is doing in terms of community responsibility?
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6.Are the information, indicators and data disclosed in the report clear, accurate and complete?
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7.Do you think the contents and format of this report are easy to read?

□ Yes □ No

Open questions

Do you have any comments and suggestions on Proya's 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: Proya's Board of Directors Office Tel.: 0571-87352850

E-mail: [email protected]

Mailing address: Office of the Board of Directors of Proya Building, No. 588, Xixi Road, Xihu District, Hangzhou, 310023, Zhejiang Province

珀莱雅化妆品股份有限公司 可持续管理 39 可持续发展报告 2020

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Proya Cosmetics Co., Ltd. — Environmental & Social Information 2021

57729_rns_2021-04-22_8d8cff85-4634-4ae6-806e-21e543f815ac.PDF

About this Report

Reporting Period

Scope of Reporting

Information Reported

Basis for Report Preparation

Form of Reporting

Contents

01 Environmental 09

Messages from Co-founders

Supporting Heroes Who Put Themselves in the Frontline

Improving Corporate Governance

Building a New Green Ecology

Adhering to People Orientation, Honesty and Gratefulness

Outlook 2021

Joint Efforts to Fight COVID-19

Setting up an RMB 15 Million Charity Fund to Fully Support COVID-19 Prevention and Control

Undertaking Responsibility as a Backbone in COVID-19 Prevention

Development of new anti-COVID-19 products

Free gift of Rinsing-free Hands Sanitizer

Fighting COVID-19 Scientifically and Promoting Resumption of Work and Production in Order

Implementing strict management to build Proya’s defense line against COVID-19

Dining in turn, allowing for nutrition and safety

COVID-19 prevention publicity and mass prevention and control

Purchasing heart-warming bags for volunteers in the frontline

Donating blood without compensation to address clinical blood demands

About Proya

Company Profile

Popular exquisite skin care brand

Corporate Culture

Development Strategy

Honors in 2020

Proya

TIMAGE

Environmental

Our actions

SDGs Benchmark

Our actions

Green Intelligent Manufacturing: Creating an Eco-Friendly Production Process

Minimized resource consumption

Energy

Water

Minimized environmental impact

Wastewater management

Case

Waste gas management

Waste management

Green Procurement: Sustainable Raw Material Sourcing

Green Logistics: Reducing Carbon Footprint

Ecologically recyclable packaging materials

Improved logistics transportation efficiency

Environmentally-friendly transport cartons

Green Office: Promoting Low-Carbon Lifestyle

Green Charity: Contributing to a Circular Economy

Social

Our actions

SDGs Benchmark

Our results

Sincere Service, Customer First

Focus on technology innovation

Industry-university-research cooperation

Strategic technical cooperation

Promoting responsible tests

Guaranteed product quality

Quality management system

Total quality management

Chemical substances management

Provision of quality service

Prompting product safety

Response to customer demands in time

Service channels

People Oriented – Continued Focus on Employee Development

Protection of the legitimate rights and interests of employee

Competitive compensation and benefits system

Attraction and retainment of core talents

January 2020

June 2020

January 2021

Proya Cosmetics Co., Ltd. Environmental & Social Information 2021

9/9 Charity Day# Proya helped rural children make their dreams
come true
Proya donated customized school uniforms, notebooks, pencil boxes
and other school supplies to the children of the Hope Primary School
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