Article 1Purpose

Lishui Pharmaceutical Group Co., Ltd. (hereinafter referred to as "the Company," together with its subsidiaries referred to as "the Group" or "we") is committed to the mission of "Patient Life Quality First," focusing on providing high-quality products for life and health, actively practicing the concept of sustainable development, and adhering to the highest ethical standards."the Group"Suppliers are important partners in our mission and sustainable development journey. To standardize the ethical conduct of suppliers and ensure their compliance with our basic principles and values, this Supplier Code of Conduct (hereinafter referred to as "this Code") is specially formulated, mainly covering human rights and labor, environmental protection, and business ethics.

Suppliers are important partners in our mission and sustainable development journey. To standardize the ethical conduct of suppliers and ensure their compliance with our basic principles and values, this Supplier Code of Conduct (hereinafter referred to as"this Code") is specially formulated, mainly covering human rights and labor, environmental protection, and business ethics.

We require suppliers to fully comply with this Code. A supplier’s compliance with this Code will determine the establishment and maintenance of its cooperative relationship with the Group.

Article 2Scope of Application

This Code applies to all entities and their subsidiaries that provide goods or services to the Group (hereinafter referred to as "Suppliers"). In addition, suppliers should ensure that their own suppliers appropriately comply with this Code. Suppliers should also ensure that the Group has the right to audit their own suppliers' compliance with this Code and actively cooperate with the Group's audit. "Employees" in this Code specifically refer to the employees of the supplier.

Article 3Compliance with Laws and Regulations

Suppliers shall strictly abide by all applicable laws, regulations, and rules (hereinafter collectively referred to as "laws") in their respective countries and regions.

Article 4Human Rights and Labor

1• Forced Labor: Suppliers shall not use forced labor, shall not use violence, threats, or illegal restrictions on personal freedom to force workers to work, and shall not engage in any form of human trafficking, slavery, or servitude.

2• Child Labor: Suppliers shall not use child labor and shall not employ workers under the legally mandated employment age in their respective locations.

3• Discrimination: Suppliers shall not allow or engage in any form of discrimination or prejudice, treating all employees equally, regardless of their age, nationality, race, family status, ethnic background, skin color, gender, sexual orientation, religious belief, social origin, nationality, disability, pregnancy, or any other relevant characteristic protected by law. Suppliers should follow the principles of fairness, justice, and openness in recruitment and employment, employing based on job qualifications and candidate abilities, and maintaining fairness and equal opportunities in employment matters such as employment compensation, promotion, rewards, training opportunities, and dismissal.

4• Harassment: Suppliers shall respect the physical and mental well-being of employees and provide a healthy, cooperative, and equal working environment. Suppliers shall not engage in any form of harassment, including violating the will of others and using words, text, images, or physical actions to sexually harass or otherwise harass others. At the same time, suppliers shall not engage in mental or physical abuse, insult, or coercion, shall not use cruel or abusive disciplinary measures, or engage in corporal punishment.

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

6• Working Hours, Compensation, and Benefits: When determining and providing employees with compensation and related benefits, suppliers shall comply with the principle of fairness and shall not be lower than the minimum wage standard or benefits stipulated by local laws. Wage distribution should follow the principle of distribution according to work, implementing equal pay for equal work. Suppliers should comply with applicable local laws regarding working hours, including paying overtime pay or providing compensatory time off to employees who work overtime.

7• Occupational Health and Safety (OHS): Suppliers shall comply with all applicable localOHSlaws and the Company's "Environmental, Occupational Health and Safety Management Policy," ensuring the occupational safety and health of employees in the workplace, protecting employees from any chemical, biological, physical, and mental harm in the workplace, establishing effective emergency plans and mechanisms to prevent workplace accidents/hazards, and continuously improvingOHSmanagement performance.

8• Physical and Mental Needs: Suppliers should strive to create a physically and mentally healthy work environment for employees.

Article 5Environmental Protection

1• Suppliers shall comply with all applicable environmental protection laws in their respective countries and regions, including laws related to the prevention and control of pollutants and waste such as exhaust gas, wastewater, and waste, and shall also comply with the Company's "Environmental, Occupational Health and Safety Management Policy," strictly carrying out environmental protection work in accordance with relevant requirements, and shall obtain all necessary environmental permits, licenses, and registrations, and comply with their operational and reporting regulations.

2• Suppliers shall make every effort to reduce pollutants and waste generated during their operations and effectively manage, monitor, control, and treat them to continuously reduce their environmental impact and improve environmental management performance.

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

4• Suppliers shall improve the efficiency of resource use such as energy and water, improve equipment and facilities, processes and technologies, and production processes, optimize product structures, and make every effort to reduce resource consumption to protect natural resources.

5• Suppliers shall protect biodiversity, comply with relevant laws and regulations on biodiversity protection, continuously reduce the adverse impact of their operations on biodiversity, avoid operating in protected areas or areas with important biodiversity, promote the sustainable use of natural resources, and actively engage in ecological environmental protection activities.

Article 6Business Ethics

1Suppliers should adhere to the highest ethical business standards when conducting business and operations, always upholding the principles of integrity and fairness, complying with all applicable anti-corruption and other business ethics-related laws and regulations of the country and region where they are located, as well as the Company's "Labor Employment and Code of Conduct" and "Anti-Corruption and Anti-Commercial Bribery System," establishing effective control, supervision, review, and handling mechanisms to ensure compliance and fulfillment.

2Suppliers shall agree to include an integrity clause in contracts signed with the Group.

3Suppliers shall not engage in any embezzlement, corruption, bribery, or extortion, and shall not pay or accept bribes in business (including the Group) or government relations to obtain business opportunities or undue benefits.

4Suppliers should compete fairly, not hinder or restrict fair competition, and comply with all applicable fair competition and anti-monopoly laws.

5Suppliers should avoid direct or indirect conflicts of interest with the Group and not engage in or participate in any activities that conflict with the Group's interests. If any potential conflict of interest that may affect the Group's entrustment of tasks is discovered, the supplier should report it to the Group.

6Suppliers shall strictly protect the security of data and information (including personal information and confidential information provided by the Group) in their or their agents' possession and use it reasonably, and comply with all applicable data security and privacy protection laws and regulations of the country and region where they are located.

7Suppliers should treat animals humanely, uphold animal welfare, and minimize animal suffering and stress. After obtaining approval from regulatory agencies and scientific verification, suppliers should use alternative methods to minimize the use of animals.

Article 7Supervision and Application

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

2Suppliers shall extend the requirements of these guidelines to any third parties to whom they subcontract all or part of the Group's tasks, requiring them to comply with these guidelines. The Group reserves the right to audit whether the suppliers' suppliers or subcontractors comply with these guidelines.

Article 8Reporting

If any supplier is found to be in violation of these guidelines, reports can be made to the Group in accordance with the Company's "Reporting and Complaint Management Measures".

Contact: Mr. Wang, Mr. Xu

Reporting Channels1:Fixed Tel:0756-8135383、0756-8135948

Reporting Channels2:Email:wangwei@livzon.cn、xudan0l@livzon.cn

Article 9Other

1These guidelines have been reviewed and approved by the Board of Directors' subordinateESGCommittee (“ESGCommittee”).ESGThe Committee regularly reports to the Board of Directors on the implementation of these guidelines and provides recommendations for the Board's decision-making and supervision.

2、ESGThe Committee has full authority to implement, supervise, and regularly review the overall responsibility of these guidelines.ESGThe Committee is responsible for the interpretation and revision of this policy.

3Matters not covered in these guidelines shall be handled in accordance with relevant laws, regulations, and normative documents.

4These guidelines shall come into effect from the date of promulgation.

Livzon Pharmaceutical Group Co., Ltd.