1 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Co-Founders’ Message 2
Add: Proya Building, No.588 Xixi Road, Xihu District, Hangzhou, Zhejiang Province
E-mail: proya-group@proya.com
Tel: +86-571- 8735 2850
Web: www.proya-group.com
QR code for QR code for QR code for
ofcial website Weibo Wechat
Beauty Aspirations for a Shared Future
2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Table of
Contents
ESG Management Practice Report
Environmental Responsibility 43
Product and Customer Responsibility 56
Supply Chain Responsibility 73
Employee Responsibilities 77 Indicator Index 113
Sustainability Contribution Report
Community Responsibility 87 Report Description 121
Co-Founders’ Message 01 Sustainable Business: Creating Beauty 17 Corporate Governance 91 Appendix: Scope of the report 123
About Proya 03 Sustainable Value Chain: Sharing Beauty 21 Compliance Operation 99 Carbon Footprint Verification Result 125
Proya Sustainability Governance System 07 Sustainable Social Ecosystem: Empowering Beauty 27 ESG Performance Data Sheet 10 5 Report Authentication Result 128
Proya Cosmetics Co., Ltd.
01 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Co-Founders’ Message 02
Co-Founders’ Message
Looking back on the year 2023, the global economy is Harmony carbon reduction manifesto at our 20th anniversary Co-Founders' Message
>
undergoing a profound transformation. Sustainability has strategy release conference, during which we committed to
evolved from a concept to a global consensus, impacting reduce carbon emissions by 2025.
global strategies in an urgent and profound manner like never
before while acting as a bellwether that directs the future of
In terms of the sustainable social ecosystem, we firmly assume
all industries.In 2023, Proya celebrated its significant 20th
our social responsibilities. In August 2023, the Zhejiang Proya
anniversary in a changing market. The past two decades bear
Public Welfare Foundation was officially established, marking
not just our marks of taking challenges, gaining experiences,
a new milestone in our effor ts to promote public welfare
and achieving growth, but witness our track record of securing
undertakings. Meanwhile, we are committed to creating a
a strong position in the fierce market and adapting ourselves
diverse, inclusive, and caring world around four major topics:
to industry changes.
gender equality, emotional relationships, youth and growth,
and mental health.
Proya shoulders missions and responsibilities. We set our
existence by upholding gratitude and pursuing excellence.
Looking ahead to 2024, Proya will hold fast to our original
At the beginning of our establishment in 20 03, we set a
purpose and adhere to the philosophy of emphasizing both
clear vision to be a China-based international enterprise, an
qualit y and innovation. We deeply understand that the
enterprise recognized, trusted, and respected by society,
value of a company lies not only in short-term profitability
and a private company that has the courage to assume social
and market share, but also in its contribution to society and
responsibilities while gaining social recognition from it.In the
positive impact on human life. We will practice sustainability
face of changes, we demonstrate keen insight and follow the
development with a broader vision and more solid actions.
tide of time to respond to global sustainability demands. We
Driven by innovation, we will shape a sound brand image with
strengthen our ESG management system, comprehensively
responsibility, accomplish our social value by sharing, and
enhance our per formance in environment, societ y, and
define beauty with a green attribute. We will work hand in
social governance, and fully drive the achievement of our
hand with all partners to draw the picture of a harmonious and
global sustainabilit y development goals. Suppor ted by
prosperous future.
three pillars, namely sustainable business, sustainable value
chain, and sustainable social ecosystem, we firmly adhere to
a sustainability development strategy in our efforts to drive
product innovation and service upgrade.
In terms of sustainable business, in 2023, the Longwu R&D
Center and the Shanghai R&D Center were put into operation,
providing strong suppor t for independent research and
development. Being dedicated to product development and
technological innovation, we establish close partnerships
with top ingredient suppliers around the world, use the finest
materials, and introduce cutting-edge technologies. All help
us craft products that meet the needs of consumers.
In terms of the sustainable value chain, we work with strategic
partners both upstream and downstream to jointly promote
green transformation, actively drive carbon reduction across
the entire chain, and bols ter sus tainable management
throug hout the prod uc t lifec ycle. We t ake the lead in
establishing a benchmark for low-carbon supply chain systems
by improving environmental assessment standards across the
supply chain as well as exploring low-carbon technologies
and efficient energy utilization modes in collaboration with
par tners. In 2023, we reached a consensus with ten core
suppliers on carbon emissions management and jointly
released the Together for a Zero Carbon Future, Beauty in
03 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
About Proya 04
About Proya
Company profile
Proya Cosmetics Co., Ltd. (hereinafter referred to as “Proya,”
“the Company,” and “we”) is committed to building a new Chi-
nese cosmetics industry platform. We specialize in the R&D,
production, and sales of cosmetics. Our main brands include
Proya, TIMAGE, Off & Relax, Hapsode, CORRECTORS, INS-
BAHA, UZERO and Anya. Our own brands cover elds such as
popular exquisite skincare, makeup, body & hair, and high-ef-
ciency skincare.
Company name:
Proya Cosmetics Co., Ltd.
Stock code:
603605 (Shanghai Stock Exchange)
Headquarters location:
Hangzhou City, Zhejiang Province
Established in:
2006
Development of the company:
We develop, manufacture, and sell cosmetic products primarily
on the Chinese mainland. We have two manufacturing facilities
for skincare and makeup products in Huzhou, Zhejiang Province.
Our sales network encompasses multiple channels such as
e-commerce platforms, specialty stores for cosmetics and de-
partment stores channel.
As of the end of the Reporting Period, we had 2,971 employees.
05 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
About Proya 06
“6*N” development strategy
ESG management achievements
ESG ratings>
The result of 2023 is not available yet
Proya was rated "BBB" in MSCI ESG
Rating 2022
ESG honors and social recognitions>
Title of Honor Awarding Body
Green Supply Chain Management Company General Ofce of the Ministry of Industry
2023 and Information Technology of the PRC
Green and Low-Carbon Fac tor y of Zhejiang Economy and Information Technology
2023 Department of Zhejiang
Outstanding ESG Prac tice of the Fragrance China Association of Fragrance, Flavor
Flavor and Cosmetic Industry 2023 and Cosmetics Industries
Wind Best 100 ESG Practices for Chinese Listed Wind
Companies
Top 100 ESG Golden Bull Award China Securities Journal
Best ESG Awards The 7th IRSC Chinese Outstanding IR
Outstanding Prac tice of Women’s Power in Organizing Committee of the ESG and
ESG Cases 2023 Sustainable Development Forum 2023
Outstanding Case of Social Responsibility at Economic Information Daily
Empowering and incubating "unique" brands that meet the "unique" needs of "unique" consumers the China Financial Capital Forum
Value Chain Leaderboard of “Exemplary Sus- Huxiu’s ESG Team
tainable Brands”
Selection of Outstanding Cases for 520 Social CCM CSR Promotion Center
Responsibility Day - Caring for Children Topic
A model case in the China Sustainable Palm RSPO
Oil Progress Report - A Collection of Cases of
RSPO China Members
07 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Proya Sustainability Governance System 08
Proya Sustainability Governance System
Sustainability Proya upholds the sustainability concept of “Beauty Aspirations for a Shared Future.” Corporate mission: Corporate vision: Corporate spirit: Core corporate values:
With solid sustainability management at the core, we truly care about human and eco-
concept logical sustainability. We create beauty with our rst-class products, share it with our
Ever-lasting beaut y and To become a world-class Diligence, pragmatism, passion,
aggres sivenes s, integrit y, and
Responsibility, willingness to learn, high
efciency, collaboration, innovation, and
sharing bliss cosmetics enterprise
partners and consumers, and empower communities. We create countless beautiful gratitude fairness
moments to shape a better future.
Sustainability The Proya sustainable development strategic plan “Beauty Aspirations for a Shared
Future” is based on three pillars: sustainable business, sustainable value chain, and
development planning sustainable social ecosystem. We facilitate sustainability development based on ho-
listic ESG management. The section “Contribution to sustainability development” in
this Report summarizes the annual progress made in implementing our sustainable
development strategic plan.
Beauty aspiration for a
shared future
Sustainable business: Sustainable value chain: Sustainable society ecosystem:
Creating beauty Sharing beauty Empowering through beauty
We are committed to creating beauty in a We work with partners and consumers We provide support to address environmental
sustainable way. We continuously develop- to promote sustainable development challenges and facilitate social development so
ing products through innovations, offering and consumption, making value chain that more people can enjoy a wonderful life.
consumers with safe, effective, and sustain- sustainability a reality.
able products.
Sustainability model
>
09 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Proya Sustainability Governance System 10
Sustainability We have established a company-wide sustainability development and ESG structure ESG Management Committee
to ensure the efciency of sustainability development and ESG work. The Corporate
development Strategy Committee leads strategic planning. Its ESG Management Committee is re-
The ESG Management Committee is an independent department under the Strate-
gy Committee and is composed of senior management members from the General
management structure sponsible for managing major ESG projects and evaluating performance, and reports
Manager’s Ofce, including the general manager. The department manages environ-
regularly to the Strategy Committee of the Board of Directors. The ESG Implementa-
mental, social, and governance (ESG) issues and prevents ESG risks. It also reports
tion Team is composed of functional units to ensure overall planning and collabora-
regularly to the Strategy Committee and to the Board of Directors on the progress of
tion as well as smooth communication between the upper and lower levels.
ESG work.
ESG Implementation Team
The board secretary leads the ESG Implementation Team, with relevant department
Board of Directors heads as team members. The team coordinates business modules under the direction
of the team leader and reports to the ESG Management Committee on ESG topics. It
ESG Decision Makers
also provides information for decision-making and work guidance to business mod-
Strategy Committee
ules to support the execution of ESG strategies and decisions.
ESG Managers ESG Management Committee
ESG implementation team
ESG Compliance To further accelerate ESG management, we added several provisions to the Perfor-
Longwu R&D Center
Shanghai R&D center
Production base
Procurement Department
Logistics Department
Strategy & Brand Center
Brand Divisions
Board
Office of the Chairman of the
Department
Strategic Management
Human Resources Department
Department
Information Management
Internal Audit Department
Legal Department
Finance Department
Administrative Department
mance Management Measures and the Supplementary Provisions on the Performance
System. These provisions link the incentive compensation of members of the Board
of Directors and senior management with their sustainability development and ESG
performance (hereinafter referred to as sustainable performance). We also developed
short-, medium-, and long-term incentive payment plans to ensure that directors and
executives are better motivated to perform ESG management in all aspects for a long
term. In the performance assessment system of directors and executives, sus-
tainable performance indicators weigh 8-10%, with regular performance assess-
ments carried out.
Furthermore, we voluntarily disclose ESG (environmental, social, and governance) in-
Board of Directors
formation through the ESG report and have engaged a professional external agency
The Board of Directors is solely responsible for supervising sustainability development to provide ESG training to relevant departments, allowing internal employees to bet-
and ESG topics, as well as developing corporate sustainability development and ESG ter understand ESG principles.
management policies and strategies, such as participating in the identification and
evaluation of ESG topics. It also provides recommendations and support for necessary
actions to achieve ESG goals.
Strategy Committee
The Strategy Committee is responsible for directing and supervising the management
of major ESG topics, including technological innovation and product quality as well
as safety and green packaging. The Strategy Committee regularly audits the perfor-
mance of ESG topics to promote the progress of ESG goals. It also provides recom-
mendations on necessary actions to achieve ESG goals and reports regularly to the
Board of Directors on ESG management progress.
11 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Proya Sustainability Governance System 12
Stakeholder The support and trust of our stakeholders are vital to Proya. When carrying out and Key stakeholders and
communication channels >
Communication
promoting sustainability development and ESG management tasks, Proya focuses on Stakeholder Topic
communication the demands of stakeholders and actively communicates with them on multiple chan-
and Response
nels. We respond to stakeholder expectations and demands by conducting respon- Employees Employee rights and Develop an employee handbook
sible practices. We strive to achieve win-win cooperation among all parties, including benets and establish a labor union
shareholders, employees, and society. Employee training and Establish a platform for talent
development development and shared learn-
ing
Key stakeholders and Occupational health
communication channels > Communication and safety Implement technical transforma-
Stakeholder Topic and Response tion projects for safety, organize
safety production training, and
Government and Corporate Governance Cooperate with inspections conduct occupational health
regulatory agencies examinations
(The National Risk and compliance Establish a sound risk manage-
Medical Products ment system
Administration, local Product and service quality Improve the quality manage-
governments, and ment system for products Partners (industry Responsible procurement Provide training and ESG assess-
others) Chemical safety and ingre- associations, suppliers, ment for suppliers
dient transparency Complete product ling and Product and service quali-
disclose product formulas to distributors, etc.)
ty Conduct quality management
Climate change mitigation the public in accordance with training and quality audits for
and adaptation legal requirements suppliers
Industry development
Carry out energy conserva- promotion
Emissions and waste Actively engage in industry ex-
tion and carbon reducti on,
optimize our energy structure, Science and technology changes
and increase the proportion of innovation
clean energy utilization Increase investment in research
and development, establish an
Properly manage emissions R&D team, and engage in R&D
and waste by practicing recy- collaboration with external part-
cling and other methods of ners
reusing
Investors and Corporate Governance Publish nancial reports and
shareholders (investors performance reports, and Communities and the Community public Volunteer activities, charitable
who have equity and Science and technology communicate with investors public (communities welfare donations, and community involve-
debt investments in innovation and shareholders through SSE around sites of opera- ment by employees
Proya) E-Interactive, email, road- tion, public welfare or-
Investor rights protection shows, and other means ganizations, and others)
Increase investments in
research and development, es-
tablish an R&D team, engage
in R&D collaboration with
external partners, and partici-
pate in industry seminars and
workshops
Regularly hold shareholders’
meetings
Consumers Product and service quality Implement measures for prod-
uct quality and safety manage-
Responsible marketing ment and conduct customer
satisfaction surveys
Chemical safety and ingre-
dient transparency Establish a comprehensive
public information approval
procedure and promote sus-
Climate change mitigation
tainable consumption initia-
and adaptation
tives to consumers
Green packaging Disclose product formulas
through announcements on
the website
Carry out energy conserva-
tion and carbon reduction,
optimize our energy structure,
and increase the proportion of
clean energy utilization
Enhance sustainability in pack-
aging
13 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Proya Sustainability Governance System 14
Identification of Proya identifies material topics through regular communication with internal and Proya materiality matrix > Topics of Moderate Importance Topics of High Importance
external stakeholders and in accordance with the GRI Standards for Sustainability
material topics Reporting (Global Reporting Initiative). When identifying material topics, we comply
environmental topics Science and technology
innovation
with Chinese and international laws, standards and industry policies, and consider the social topics Product and
service quality
priorities and expectations of stakeholders and the capital market. We identify highly governance topics
Importance to the Economy, Society, and Environment
Corporate Chemical safety and
material ESG topics and prioritize them for corporate management and reporting dis- ingredient
Governance
closure, thereby continuously improving the value of the Report. Business ethics
Investor rights protection Green packaging
Risk and
compliance Employee rights and benefits
Intellectual property
management
Materiality analysis process > Emission and waste Socially responsible
Preliminary topic Stakeholder research Comprehensive management marketing
identification result analysis Resource management
Industry development promotion
Responsible procurement Energy management
We identied and summa- We investigated stakehold- Based on the investiga- Employee training Climate change mitigation
and development and adaptation
rized 21 topics relevant to ers based on the 21 iden- tion results, we com-
Proya in accordance with tied topics and assessed prehensively analyzed Occupational health and safety
Chinese and international the importance of those and prioritized the Community public welfare
standards and policies as topics for stakeholders. topics based on their
well as based on industry importance for both
policy analysis and peer the Company and our
benchmarking. stakeholders, generating
a materiality analysis
matrix.
Importance to Company Finances
In 2023, we reviewed and analyzed material topics based on Chinese and international
standards and policies. As a result, the topics “protecting the rights and interests of Topics of High Importance Topics of Moderate Importance
shareholders” and “water management” were changed. The topic “socially responsi-
ble marketing and consumer education” was split to ensure the content is more per- Green packaging Climate change mitigation Employee training and
and adaptation development
tinent and better aligned with the context of stakeholders, so that their concerns can Science and technology
be addressed. Through the above material topic identication process, we nalized innovation Energy management Occupational health and
safety
the following materiality matrix: Resource management
Product and service quality
Community public welfare
Emission and waste
Chemical safety and ingredient
management Consumer education
transparency
Intellectual property Corporate Governance
Employee rights and benefits management
Business ethics
Responsible marketing Industry development
promotion Risk and compliance
Responsible procurement Investor rights protection
2023 Sustainability & Environmental, Social and
Governance (ESG) Report
2023
Sustainability Contribution
Report
Proya Cosmetics Co., Ltd.
17 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Sustainability Contribution Report 18
Sustainable Business: Creating Beauty
During the Reporting Period, Proya successfully registered our rst new cosmet-
Corresponding Sustainable Planning Goals Progress and Achievements in 2023
SDGs ic ingredient “3,3,5-TRIMETHYLCYCLOHEXYL SUCCINATE DIMETHYLAMIDE,”
which effectively enhanced the core competitiveness and technological threshold of
By 2025 During the Reporting Period products as well as fully embodied our increased internal R&D capabilities and com-
mitted practice of our sustainable innovation strategy.
We will promote the research and the de- We successfully registered a new ingredient,
velopment of ef ficacious ingredients to “3,3,5-TRIMETHYLCYCLOHEXYL SUCCINATE DI-
create more effective products, and realize METHYLAMIDE.”
the application of safer and more effective
self-developed ingredients. The basic framework and mechanism for sus- Highlighted achievement Proya successfully registers the rst new ingredient
tainable product assessment have been estab-
In November 2023, Proya registered the rst new cosmetic ingredient “3,3,5-TRIMETH-
We will assess the sustainability of 100% of lished.
YLCYCLOHEXYL SUCCINATE DIMETHYLAMIDE” with the National Medical Products
new products and updated products under
Administration. The ingredient has ofcially entered the monitoring period with the
major brands. The proportion of clean energy usage reached
patent applied for. With dual benets of skin protection and anti-oxidation, this ingre-
35.35%. The emissions of greenhouse gases
dient is suitable for a variety of skincare products except aerosols and loose powder
The proportion of clean energy usage will per unit of products (Scope 1 and 2) were re-
cosmetics. It lays the foundation for further product upgrades.
reach 50%. The emissions of greenhouse duced by 17.30%.
gases per unit of products (Scope 1 and
2) will decrease by 25% over that of 2021. The proportion of sustainable materials used
Our operations will reach carbon peaking in packaging had reached 25.47%, represent-
(Scope 1 and 2) by 2025. ing an increase of 25.31% compared to that of
2021.
The propor tion of sustainable materials
used in packaging will increase by 20% and We have basically reviewed the current usage
packaging intensity will decrease by 15% of palm oil in our existing products.
over that in 2021.
More than 70% of the palm oil derivatives
we purchase will be from palm oil certied
by the Roundtable on Sustainable Palm Oil
(RSPO). In addition, we will further improve
our traceability system for palm oil, one of
the raw materials we purchase, during the
planning period.
Filing information of “3,3,5-TRIMETHYLCYCLOHEXYL SUCCINATE DIMETHYLAMIDE”
>
Developing safe and Proya has always been committed to providing consumers with safer and better prod-
ucts. To do so, one of our priorities is to improve our capability in the development of
outstanding products ingredients and enhance the proportion of independent research and development.
By independently developing new ingredients, we can better ensure their safety and
quality from the source and meet the personalized needs of consumers.
Overview of management In 2023, Proya’s Longwu R&D Center and Shanghai R&D Center were put into opera-
tion to focus on the independent research and innovation of new, green, safe, and ef-
cient cosmetic ingredients, thus enhancing our capabilities in fundamental research
and independent development. Meanwhile, we established the Ingredient Research
and Development Department, which integrates the functions of scientic research,
analysis, and evaluation. The department is dedicated to introducing new, green, safe,
and efcient cosmetic ingredients, thus enhancing our management capabilities for
raw materials.
19 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Sustainability Contribution Report 20
Creating sustainable Driven by the global trend of sustainability development, we deeply recognize the so- In terms of new energy utilization, the newly built logistics center, covering 25,000
cietal value and strategic signicance of implementing sustainable product manage- square meters, is installed with a 2-megavolt-ampere photovoltaic power generation
products ment. In response to the increasing environmental awareness of consumers and their and energy storage system on the roof. In 2023, the self-built photovoltaic system
demands for green, safe, and low-carbon products, we have established a sustainable generates approximately 2,000 MWh of electricity annually, accounting for approxi-
product assessment system while implementing a thorough sustainability develop- mately 12% of the total energy consumption of the whole factory. Besides, in addition
ment strategy from original innovation to end products. to continuous technical transformation, the factory is also equipped with a green,
energy-efcient and environmentally friendly boiler room, a solar auxiliary heating sys-
Overview of management During the Reporting Period, we established the Sustainable Product Evaluation
tem, a ue gas waste heat recovery system, and a steam condensate water recovery
Working Group mainly for the product development process. Through inter-depart-
system, which collectively save over 9,888 cubic meters of natural gas each month.
mental communication and collaboration, we have further improved and rened the
Proya Sustainable Product Assessment System, established a standardized workow,
and initiated a pilot project for product assessment.
Meanwhile, the top three priorities for sustainability enhancement this year lie in en-
hanced sustainable packaging, sustainable palm oil, and low-carbon factories.
In terms of product packaging, we invite packaging experts to jointly formulate the
Proya Sustainable Packaging Management Manual and provide training for relevant
departments to establish a basis for enhancing the sustainability of product packaging.
In terms of sustainable palm oil, during the Reporting Period, we ofcially joined the
Roundtable on Sustainable Palm Oil (RSPO), continued to review the use of palm oil
derivatives and relevant raw materials in existing products, and started to replace ex-
isting materials with RSPO-certied palm oil.
In terms of constructing low-carbon factories, we actively promoted the digital and Proya 5G intelligent logistics center
>
intelligent transformation of factories, thereby driving the upgrade of product quality
and green manufacturing through full-lifecycle digital management. In 2023, Proya
was selected on the list of “Green Supply Chain Management Companies 2023” More sustainable packaging of Proya products
announced by the General Ofce of the Ministry of Industry and Information Tech-
nology of the PRC. The Huzhou Branch was rated as the “Intelligent Factory of Zhe- In 2023, Proya actively responded to the national policies on carbon emission reduc-
jiang 2023” and the “Green and Low-Carbon Factory of Zhejiang 2023.” This marks tion. We upgraded the packaging of three products, reducing the weight of each single
the recognition of Proya’s digital, intelligent, and green manufacturing by the govern- package and the use of plastics. The products include the Advanced Firming Nourishing
ment, third-party organizations, industry experts, and others. Moisture Cream, the Advanced Firming Nourishing Soft Cream, and the Advanced Firm-
ing Nourishing Light Cream. After the upgrade, the amount of plastic used in the pack-
aging of a single product decreased by 22%.
Meanwhile, rellable options were released to improve the reusability of bottles. Each
rellable bag uses 100 grams less plastic.
Highlighted achievements Proya builds a 5G smart factory to drive green manufacturing
The integrated application of next-generation information technologies such as 5G,
Internet of Things, articial intelligence, and big data is driving the cosmetics industry
to grow efciently and intelligently. From January 2021 to June 2023, Proya upgraded
the equipment at the 5G smart factory and the intelligent logistics center in line with
the Zhejiang Construction Guidelines for Smart Factories . Relying on an informa-
tion-based platform, big data analysis, and other technologies, we integrated various
production resources to achieve collaborative manufacturing. Proya has taken one
step closer to green manufacturing by establishing an energy management platform,
strengthening environmental monitoring, reducing emissions of wastewater, waste
gas, and residues, improving energy-saving processes, promoting resource recycling,
implementing green supply chains, and utilizing new energy sources.
In terms of resource recycling, the heat recovery system for air compressors can pro-
vide 502 tonnes of hot water per month. Upgraded packaging of Proya products
>
21 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Sustainability Contribution Report 22
Sustainable Value Chain: Sharing Beauty
In 2023, Proya evaluated 264 suppliers for their ESG performance with a pass rate of
Corresponding Sustainable Planning Goals Progress and Achievements in 2023
SDGs 100%, and conducted ESG compliance assessments for all of our key partners. At the
20th anniversary strategy release conference, Proya provided all suppliers with train-
By 2025 During the Reporting Period ing on sustainability development and ESG knowledge, aimed at enhancing partners’
all of our key partners will conduct ESG compli- Proya evaluated 264 suppliers for their ESG understanding and practice.
ance assessments. We will provide ESG man- ESG performance, and conducted ESG
Meanwhile, Proya actively plays the leading role and shares our own sustainable
agement support to all of our partners. compliance assessments for all of our key
transformation experience with the entire industry. By actively attending seminars
partners.
and workshops, Proya facilitates industry peers to draw on and learn from advanced
Efforts will be made to promote all strategic
sustainability development modes so that they can jointly draw a picture of green
partners to reduce carbon emissions through Proya collaborated with the top ten
development for the cosmetics industry. As the rst company to use green recyclable
carbon reduction initiatives and incentives on strategic partners (suppliers) to jointly
cartons in the industry, we play our role in setting examples. During the Reporting Pe-
the value chain. release the Together for a Zero Carbon
riod, 9 suppliers adopted our way and started to use green recyclable cartons.
Future, Beauty in Harmony carbon re-
We will drive sustainability development trans- duction manifesto.
formation for all partners in our value chain and
share our sustainability development actions Proya co-hosted the Proya Logistics Salon
Highlighted achievements Proya shares experience in sustainable supply chain management
with our industry peers. to share our sustainable practices with
In 2023, Proya collaborated with the Shanghai Supply Chain Development Promotion
industry peers.
Association and Daen Logistics to co-host the Proya Logistics Salon at the Shanghai
We will disclose our product sustainability in- International Logistics Festival. During the salon, we shared our practical experience
formation in multiple ways to share our sustain- Proya added sustainable labels to pack- and deep insights on building a green supply chain. In the past few years, Proya has
able consumption concept with consumers. ages and advocated for the use of rell- not only maintained a steadily growing momentum in the cosmetics market, but has
able options, bottle recycling, and other also fully integrated the concept of sustainability development into our operations.
environmental protec tion campaigns Measures have been taken to fully promote green development in e-commerce logis-
through multiple channels. tics, production, manufacturing, and packaging design.
In terms of energy conservation and emission reduction in logistics, Proya pilots
the replacement of some fuel-powered forklifts with new energy vehicles and
optimizes the transportation process in a scientic manner, thereby effectively
reducing resource consumption.
Joining hands with Proya fully recognizes our core position in the industry chain and the sustainability
In the e-commerce channel, Proya is the rst in the industry to use recyclable
development responsibilities that come with it. Therefore, we are rmly committed to
peers and partners driving the entire value chain towards green and sustainable transformation. To fulll cartons as a replacement for disposable cartons, thereby signicantly cutting
this responsibility, we have adopted an array of strategies designed to promote envi- the use of cardboard and adhesive tapes and reducing carbon emissions. For
ronmental upgrades throughout the value chain. the delivery of products requiring special insulation, we apply environmentally
friendly nano-incubators to replace traditional foam incubators to effectively
Overview of management In managing strategic suppliers, Proya works with them to align the common focus on eliminate a source of white pollution. Furthermore, the packaging of product
reducing carbon emissions as a key task. By strengthening environmental assessment sets has been upgraded by using environmentally friendly shrink lm instead
standards in the supply chain, all stakeholders work together to explore low-carbon of non-biodegradable plastic bags, thereby achieving the goals of cost saving
production technologies and efcient energy utilization solutions. The purpose is to and reduced environmental pollution at the same time.
gradually establish a low-carbon supply chain system that serves as a demonstration.
During the Reporting Period, we reached a consensus with ten strategic suppliers on
In terms of intelligent storage and logistics, Proya has built a modern automat-
carbon emissions management and jointly released the Together for a Zero Carbon Fu-
ed warehouse covering a oor area of approximately 60 mu (40,000 square me-
ture, Beauty in Harmony carbon reduction manifesto at our 20th anniversary strategy
ters) and a building area of 120,000 square meters. The warehouse is equipped
release conference, during which we committed to reduce carbon emissions by 2025.
with high-speed stacker cranes, robotic sorting systems, and other efficient
and low-energy equipment to ensure the high-efciency and low-carbon oper-
We strictly adhere to the ESG principles in our dealings with key partners and inte-
ation of the warehousing and logistics system.
grate them into the cooperation mechanism. In this way, we ensure that partners com-
ply with environmental regulations and social responsibility standards in every aspect
from raw material procurement to production and logistics, thereby enhancing the By sharing those experiences, we spread our leading sustainability development cas-
general sustainability performance of the supply chain. es among peers and provide them with effective practices.
23 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Sustainability Contribution Report 24
Proya and partners jointly release a carbon reduction manifesto
Conveying the Promoting the idea of sustainable consumption among consumers plays an indispens-
able role in driving the sustainable product practices of businesses and society as a
At the 20th anniversary strategy release conference, Proya released the Together for a concept of sustainable whole. The shift in consumer behavior and awareness is crucial for drawing a closed-
Zero Carbon Future, Beauty in Harmony carbon reduction manifesto together with ten consumption loop green consumption cycle from production to end use. It not only drives the mar-
strategic partners, including Evonik Specialty Chemicals (Shanghai) Co., Ltd., Croda ket to demand more environmentally friendly and greener products, but also fosters
Chemicals (Shanghai) Co., Ltd., BASF (China) Co., Ltd., Symrise (China) Investment Co., a societal value of resource conservation and environmental protection. Therefore,
Ltd., and Clariant Chemicals Technology (Shanghai) Co., Ltd. developing an awareness of sustainable consumption among consumers has become
a part of Proya daily operational strategy.
This move demonstrates the strong dedication to environmental sustainability and
in-depth collaboration by and between Proya and our partners. These ten strategic Overview of management During the Reporting Period, Proya took a series of measures to enhance communi-
partners each possess exceptional expertise and environmental practices within their cation with consumers and encourage them to adopt more sustainable consumption
respective elds. With this initiative, we will be committed to not just energy conser- practices. For example, we add sustainable labels at prominent locations of product
vation and emission reduction in operations, but also to deeper technical exchanges, packages, sending clear and intuitive messages to consumers about the environ-
resource sharing, as well as the development and application of innovative solutions. mental attributes and recyclable value of the product. Also, we actively advocate
This will enable us to comprehensively improve and upgrade our green supply chain. for the use of rellable options and the recycling of empty bottles on various online
and offline communication platforms, and encourage consumers to take down-to-
The establishment of this strategic partnership signies a solid step for Proya in ex- earth actions to reduce waste and protect the environment while enjoying premium
ploring sustainability development modes, and sets an example for the industry in makeup products. The combination of those measures enhances our interaction with
promoting collaboration and building a green future together. We will join hands with consumers in environmental protection and fosters the sustainability concept among
all stakeholders to create a greener, more environmentally friendly, and more efcient consumers.
industrial ecosystem, continuously enhance our value to society, and contribute more
to the environment.
Highlighted achievements Proya co-creates a culture of sustainable consumption through guiding labels and edu-
cational outreach
The recycling of packaging waste is the final stage of full-lifecycle packaging man-
agement, essential for achieving resource recycling and environmental sustainability.
By applying prominent sustainable labels on the product package Proya enhances
consumers’ awareness of package recycling and works with them in the recycling and
management of discarded packages to ensure the proper disposal of discarded pack-
ages.
Together for a Zero Carbon Future, Beauty in Harmony carbon reduction manifesto
>
Proya’s sustainable packaging label Educational article on sustainable packaging
>
>
labels on the ofcial website
In addition, Proya publishes educational articles on the ofcial website to publicize
common sustainable packaging labels and their meanings. The purpose is to raise
consumers’ knowledge of package recycling labels, develop green consumption hab-
its, and effectively promote the circular economy.
25 2023 Sustainability & Environmental, Social and
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Sustainability Contribution Report 26
Proya advocates for purchasing refillable options Off & Relax recycling program for used bottles
In 2023, Proya creatively launched refillable options for hot sellers including the On the occasion of World Earth Day in April 2023, Off & Relax launched the #offrelax
Double Effect Brightening Essence 3.0, and the Advanced Firming Nourishing Light recycling program, during which the brand worked with artisans to transform empty
Cream 3.0. The previous small- and medium-sized gifts were replaced with rellable bottles and repurpose them, aiming to give discarded packages a new life and new
packs, signicantly reducing the unnecessary consumption of packaging materials. value through the fusion of artistic creation and routine application and reduce the
generation of packaging waste.
In addition, Proya further integrated and optimized the product marketing and com-
munication strategy, actively publicized the sustainability of products, and frequently
In this event, Off & Relax collaborated with over 20 key opinion leaders (KOLs) from
encouraged consumers to buy rellable options instead of full-sized products, aiming
new media agencies to transform empty Off & Relax bottles into uniquely styled home
to reduce the generation of packaging waste.
ornaments, gardening tools, or useful containers in an artistic manner that considers
both personal aesthetics and domestic needs. Off & Relax published the event on
During the Reporting Period, Proya promoted the use of rellable options on multiple
WeChat, Weibo, and Little Red Bookto communicate a recyclable lifestyle and stir up
mainstream social media platforms such as Weibo, Xiaohongshu, Zhihu, and TikTok,
consumers’ awareness and action for environmental protection. The event received 1.5
gaining more than 100 million views. This move effectively promoted public aware-
million views online.
ness and engagement in the sustainable consumption of cosmetics.
With this program, Off & Relax furthered its exploration and practices in the field
of green packaging, demonstrated its firm commitment and practical action for
environmental friendliness, and set a new example for the cosmetic industry in
innovative green packaging and resource recycling.
Recycling program for used bottles
>
27 2023 Sustainability & Environmental, Social and
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Sustainability Contribution Report 28
Sustainable Social Ecosystem:
Empowering Beauty Progress and achievements of public
welfare activities > Public Welfare Activity Measures and Achievements
Promoting We united with the Shanghai Adream Foundation to
Corresponding SDGs Sustainable Planning Goals Progress and Achievements in 2023 education launch the “Go Far” educational and charitable travel
development program. During the program, we educated children
about the knowledge involved in the whole process of
product development, production, and launch.
By 2025 During the Reporting Period We donated CNY400,000 to the Proya Hope Primary
School to upgrade campus facilities, perform renova-
we will invest RMB12 million in so- Proya invested CNY8.6612 million in so-
tion projects, and build a rubber playground.
cial welfare and building a more cial welfare to build a more equal and
equal and diversied society. diversied society. We officially launched the “One County, One Dream”
charity project, with a plan to hold Dream Sports classes
By the end of the Reporting Period in 10 primary and secondary schools in Qiemo County,
we will directly influence 500,000
upgrade their sports facilities, organize sports events,
people and indirectly inuence 500 The investment totaled CNY10.0958 mil-
enhance the professional abilities of local sports teach-
million people by carrying out so- lion.
ers, and promote the physical and mental well-being of
cial welfare activities.
students.
During the Reporting Period Seeking innovation We established a charitable trust fund for the “Power of
The social welfare activities promoted by in community Beauty” women’s care campaign at Xihu District Charity
Proya beneted 233,000 people directly Federation, in which women’s entrepreneurial skill train-
ing, women’s leadership training, and skincare classes
and 247 million indirectly.
were held to bring more employment and growth op-
portunities for women.
By the end of the Reporting Period
The cumulative number of direct bene- Responding to We collaborated with relevant organizations within
ciaries reached 665,100 people and indi- emergencies and Proya to donate emergenc y food, winter supplies,
rect beneciaries 365 million. disasters women’s hygiene kits, and daily necessities worth CNY2
million to Jishishan County in Linxia Prefecture, Gansu
Province. This donation supported local earthquake
relief efforts and provided essential support for the af-
fected population.
Providing benefits On World Earth Day, we launched a campaign under the
for employees theme “Unleash the Power of Your Actions for a Better
Planet.” During the event, we advocated for environ-
Establishing the In 2023, Proya donated to establish the Zhejiang Proya Public Welfare Foundation
mental protection and upcycling and hosted eco-friend-
(hereinafter referred to as “Proya Foundation” or “the Foundation”). With the vision of
Zhejiang Proya Public “uniting the power of love to make the world a better place for love,” the Foundation
ly film screenings to encourage employees to partici-
pate in environmental charity and low-carbon activities.
Welfare Foundation is committed to enabling more people to live a better life. Its welfare priorities
include “promoting education development,” “seeking innovation in community,” We launched the “Love in Proya for New Life” charitable
“responding to emergencies and disasters,” and “providing benefits for employees.” publicity campaign, calling on employees to actively
participate in public welfare projects.
We initiated the “Hydromel Winter Warmth” program,
encouraging employees to donate supplies for strays
Overview of management The work and contributions of the foundation in public welfare and charity have been and participate in volunteer activities.
recognized by society. During the Reporting Period, the foundation was honored
with the first “West Lake Charity Award - Charity Role Model” and was also
awarded the title of vice president at the third session of the Xihu District Chari-
ty Federation in Hangzhou.
29 2023 Sustainability & Environmental, Social and
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Sustainability Contribution Report 30
Highlighted achievements “Go Far” educational and charitable travel program Proya “Power of Beauty” women’s care campaign
In August 2023, the Proya session of the “Go Far” educational and charitable travel In 2023, Proya established the “Power of Beauty” women’s care campaign at Xihu Dis-
program was successfully held at the Proya Headquarters Building in Hangzhou. With trict Charity Federation. By organizing women’s entrepreneurial skill training, women’s
curiosity and admiration for cosmetics companies, several children from Longnan, leadership training, and skincare classes, we support women’s family relationships,
Gansu, embarked on a half-day enterprise study tour with the Proya project team. workplace interpersonal relations, mental health, and emotional management. In ad-
dition, professional psychological counseling is provided to help women expand their
By gaining insight into the company’s history, touring the Proya R&D Innovation Cen- horizons and build a mind of growth.
ter, participating in hands-on lipstick production, observing new media and lives-
treaming positions, learning skincare knowledge, and feeling an artistic atmosphere,
Meanwhile, Proya will mobilize more people in society to join our care and support for
we provided those children great opportunities to feel beauty while being nurtured
women’s growth, hoping to create more employment and growth opportunities for
with a seed of “discovering, experiencing, creating, and spreading beauty.” We ex-
women, help them better identify themselves, and enhance their internal motivators
pect this seed of beauty to take root and ourish, guiding them towards a better life.
and external advantages for growth.
Site of the Proya session Proya “Power of Beauty” women’s care campaign
>
>
“One County, One Dream” charity project Proya Public Welfare Foundation provides aid to earthquake-stricken areas in Gansu
In September 2023, the “One County, One Dream” charity project officially com- In December 2023, a 6.2-magnitude earthquake struck Jishishan County in Linxia Pre-
menced at the First Elementary School in Qiemo County, Bayingolin Mongol Autono- fecture, Gansu Province. The Proya Public Welfare Foundation immediately initiated
mous Prefecture, Xinjiang, China. the emergency response mechanism and coordinated with relevant internal depart-
ments to rapidly organize, allocate, procure, and transport supplies.
As a result of intensive cooperation between Proya and the Adream Foundation, the
“One County, One Dream” charity project aims to systematically improve the profes- The foundation mainly procured halal emergency food, winter clothing, emergency
sional abilities and vocational spirit of sports teachers in remote areas of Xinjiang and tents, heating appliances, women’s hygiene kits, and daily necessities to provide basic
help students enhance their physical and mental development by means of holding living support for the disaster-affected population. As of the end of the Reporting Pe-
Dream Sports classes in 10 primary and secondary schools, renovating their sports riod, the foundation had donated CNY2 million worth of emergency relief supplies to
facilities, and organizing sports events. the disaster-stricken areas.
Proya “One County, One Dream” charity project Proya Public Welfare Foundation donating supplies
>
>
31 2023 Sustainability & Environmental, Social and
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Sustainability Contribution Report 32
Advocating for and In the view of Proya, the beauty of a brand lies not only in the external charm created [ Gender equality ] On top of the view that “It’s Gender, Not Border,” in 2023, Proya took further steps to
by its products, but also in its deep concern for social issues and active contributions translate this brand attitude into action. This includes addressing real issues, looking
jointly creating a better to society. We are well aware that the existence and development of a company can-
“It’s Gender, Not Border!”
into real practices, and providing real support.
community not be separated from the social environment and cultural context in which it oper-
ates. Therefore, the concern for and commitment to public welfare undertakings form
our essential responsibility and intrinsic driving force as a leading cosmetics company
in the industry. We rmly believe that every business has the power to do its part in
driving social advancement, promoting growth, and changing the world with its ac- Short video “She is the Captain”
tions.
On International Women’s Day in 2023, Proya once again drew public attention to the
Scan to watch topics of gender equality and women’s rights based on genuine “her stories.”
For years, Proya has been deeply committed to social welfare activities, proven by a
>
series of meticulously designed brand marketing campaigns around public welfare
Proya specially planned the TV commercial “She is the Captain” based on a true story
themes. During the Reporting Period, we maintained our focus on four main topics:
and introduced the theme song “Keep Up, Girl,” which tells a story of a Tibetan girl
gender equality, love and caring, youth and growth, and mental health. We advocated
named Xiaoma who becomes the captain of her college’s freshman soccer team. The
for the values “breaking gender bias,” “braving the real essence of love and intimate
story shows the courage and resilience of the young girl in the face of prejudice. It
relations,” “caring about school bullying and supporting the healthy growth of adoles-
challenges the stereotype that women can’t excel on the eld, face physical confron-
cents” and “recognizing emotional experiences, caring and embracing oneself.”
tation, or lead a team to victory.
Those social initiatives and public welfare practices form not only an important part of The TV commercial “She is the Captain” breaks gender biases and stereotypes, which
Proya’s brand culture, but also a strong emotional bond between consumers and us. affirms Proya’s longstanding advocacy that “It’s Gender, Not Border.” We need to
We will uphold this commitment and imprint the spirit of charity deeply in every step break stereotypical gender biases before truly knowing ourselves and unleashing our
of brand development. Joining hands with the communities we care about, we will full potential.
create a better, more inclusive, and loving world.
Four main topics
Gender Youth and
Love and caring Mental health
equality Growth
Breaking gender Braving the real essence of Caring about school bul- Recognizing emo-
bias love and caring relations lying and supporting the tional experiences,
healthy growth of adoles- caring and embracing
cents oneself
Short video “She is the Captain”
>
During the Reporting Period, the TV commercial “She is the Captain” received more
than 6.77 million view counts and over 680,000 discussions across all platforms.
33 2023 Sustainability & Environmental, Social and
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Sustainability Contribution Report 34
We Can Do It gender education picture book Legal consultation services
Proya has compiled the gender education picture book We Can Do It suitable for read- Proya hopes that the discussion of “combating gender bias and breaking stereo-
Scan to watch
ers of all ages. The book prompts us to reect on the importance of gender education types” is extended beyond March to “every day from this day.” Therefore, Proya has
>
while delving into gender issues. It conveys Proya’s vision of “breaking gender bound- partnered with Beijing Qianqian Law Firm to launch the Proya Public Welfare Service
aries” and implants the concept of gender equality into the minds of more people. mini-program, which provides legal consultation services for workers experiencing
gender bias. This initiative aims to help more employees affected by gender bias to
With the gender education picture book We Can Do It, Proya expects to raise aware- utilize legal protection and receive professional legal assistance in cases of workplace
ness about the subtle biases that exist in our lives, inspiring us to break preconcep- discrimination. Any woman experiencing unfair treatment in the workplace can seek
tions and truly appreciate everyone in our midst. The objective of this book is for support from legal professionals through this platform. During the Reporting Period,
children and teenagers to gain an enlightenment of gender equality, and for adults to the Proya Public Welfare Service mini-program provided legal advice to 966 people,
reect on how to create a society that is inclusive, respectful, diverse, and safe for all including pro bono legal consultation services to 87 people.
genders. During the Reporting Period, a total of 110,000 copies of We Can Do It were
printed and distributed.
We Can Do It gender education picture book
>
Proya pro bono legal consultation service for workers
>
35 2023 Sustainability & Environmental, Social and
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Sustainability Contribution Report 36
[Love and caring] Proya probes into the importance of love and caring, and is committed to exploring [Love and caring] On Mother’s Day in 2023, Proya continued to care about mothers and their physi-
how to listen to the inner voice and make courageous choices in those relations. We cal and mental workload assumed for their families. On this day, Proya appealed to
Dare to Love, Dare to Not Love Mom is Not the Only One
focus on how individuals achieve personal growth in intimate relationships, and en- everyone to recognize mothers’ hardships and difficulties in traditional housework,
courage people to believe in the deep voice inside their mind with sincerity and courage. and proposed the brand attitude “Moms can take care of the family, but every family
member can do the same.” By means of the TV commercial Mom is Not the Only One,
On Chinese Valentine’s Day in 2023, Proya invited netizens to leave messages to share the creative peripheral apron for the whole family, creative posters, and the adapted
their love stories and discuss the sense of self and boundary in love relations. Inspired children’s song “Mom is Not the Only One,” we call on every family member to not
by users’ stories, Proya worked with NetEase Cloud Music and JIN Wenqi to create just see the merits of mothers, but assume their responsibilities as family members.
a love song “My Desired Happiness,” which is about experiences and reections on
Scan to watch Scan to watch
>
>
selves in love relations.
Meanwhile, Proya captured the moments of love perception with a 3-minute love-
themed short lm titled Dare to Love, Dare to Not Love. Opening with the question
“Does love really still exist?,” the video takes the audience through a series of love
stories and unfolds romantic reections one after another. The story culminates with Themed short film Mom is Not the Only One
>
the question “Does love really still exist?” and gives the Proya answer that “love is al-
ways there if you follow your heart and dare to love and to not love.” Meanwhile, Proya
issued test cards titled “Know Yourself in Intimate Relations” to help the audience
better know themselves in love.
Themed poster of Mom is Not the Only One
>
Themed short film My Desired Happiness
>
During the Reporting Period, the public welfare short lm Dare to Love, Dare to Not
Love received over 21.79 million view counts with over 460,000 discussions raised
across all platforms. Additionally, 19,000 copies of the “Know Yourself in Intimate Re-
lations” test cards were distributed.
37 2023 Sustainability & Environmental, Social and
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Sustainability Contribution Report 38
[Youth and growth] In 2023, Proya continued with its anti-school-bullying initiative Glimmering Project by Proya partnered with the Beijing New Sunshine Charity Foundation to establish The
releasing a public welfare short lm titled Aftermath of School Bullying . This lm puts “Glimmering Project , a dedicated anti-school-bullying helpline that provides psycho-
Glimmering Project
eyes on not just bullied children, but on the long-term impact on them after being logical counseling and legal advice for victims and their families. Meanwhile, Proya
bullied. Proya shed light on the aftermath of bullying in schools through three true raises discussions around the topic “Bullying is Never Right” on Weibo, and continues
stories, calling for an end to school bullying. to make voices heard on various platforms, aiming to turn advocacy into action and
expand the inuence of the campaign.
Scan to read Scan to watch
>
>
Public welfare poster of Glimmering Project
>
Proya laid bare the truth of school bullying with exceptional sensitivity and insight,
removing blind spots and raising awareness with the weighty question, “Will it get
better as we grow up?” It calls for public attention to the current situation of those
who have experienced school bullying and encourages providing assistance within
our means. In addition, Proya specially published the printed book It’s Not Your Fault:
A Healing Guide for the Aftermath of School Bullying , urging society to recognize
school bullying and understand preventive and responsive measures. Proya’s The “Glimmering Project anti-school-
>
bullying helpline
During the Reporting Period, the public welfare short lm Aftermath of School Bully-
ing received more than 44.41 million view counts across all platforms with over 62.11
million interactive discussions. The anti-bullying helpline provided free psychological
counseling for 353 victims of school bullying and their families, including pro bono
legal consultation services provided to 27 victims. A total of 15,000 copies of It’s Not
Your Fault: A Healing Guide for the Aftermath of School Bullying were printed and
distributed.
It’s Not Your Fault: A Healing Guide for the Aftermath of School Bullying
>
39 2023 Sustainability & Environmental, Social and
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Sustainability Contribution Report 40
Mental health: On World Mental Health Day on October 10, 2023, Proya carried on with the Echo
Project youth mental health campaign and released a public welfare film for youth
Echo Project
mental health titled Say ____ to Your Emotions Right Now . In the lm, we advocate
that “We are not alone in the face of emotions” and “No one should be ashamed of
emotions.” We encourage consumers to take a step further so they can listen to their
inner voice and try to express their emotions.
Scan to watch
>
Echo Bookshelf event
>
Proya is constantly deepening our understanding and presentation of mental
health issues. Our efforts include acknowledging the existence of emotional issues,
encouraging emotional expression and release, and providing practical support.
The three-year evolution and development of Echo Projec t not just embodies
Proya’s longstanding care about mental health issues, but underscores our enduring
dedication to the public.
Public welfare film Say ____ to Your Emotions Right Now
>
In addition, Proya partnered with Dejavu and 9 publishing houses to design a curated
list of emotional healing books and blind boxes of books, selecting 11 books on emo-
tions, packaging them into the Echo Bookshelf with 10,000 emotional pouches, and
giving them to readers as gifts. Also, Proya and Tencent Music jointly organized public
campus concerts and other activities, allowing people to cope with their emotions in
multiple ways.
During the Reporting Period, the public
welfare film Say ____ to Your Emotions
Right Now touching upon mental health
amongst young people received 52.49
million view counts with over 210,000
discussions raised across all platforms.
The Let Emotions Talk public campus
concert was held at 30 universities in 6
cities with over 30,000 participants.
Proya Echo Project psychological counseling
>
helpline
Let Emotions Talk public campus concert
>
2023 Sustainability & Environmental, Social and
Governance (ESG) Report
ESG Management
Practice Report
Proya Cosmetics Co., Ltd.
43 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
ESG Management Practice Report 44
Environmental Responsibility
Environmental management system
certification > Company/ Valid Period of
Certification
Manufacturing Base Certification
Performance highlights The use of clean energy Increased by
accounted for
16.94%
Skincare factory ISO 14001 2015 2025.2.14
35.35 %
compared to 2022
reducing greenhouse gas
emissions by
4,774.30 tonnes of CO2 e
Analysis of the environmental
impact of each process1 > Stage Input Output
Greenhouse gas emissions Decreased by Purchasing *Raw materials, energy, *Waste water, waste
(Scope 1 and Scope 2) was
and water consumed in the gases, solid waste,
8.33 kilograms of 32.93% production and operations
of various suppliers
and greenhouse gases
(Scope 3) generated
CO2 e /CNY10,000 in the production and
compared to 2022
operations of various
suppliers
Greenhouse gases
The proportion of sustainable Increased by (Scope 1 and Scope 2)
Product ingredients and Resources: Raw materials
packaging materials used was
packaging and packaging materials
25.47 % 25.31% Waste gases: Volatile
organic compounds
compared to the baseline (VOCs), nitrogen oxides
year of 2021 (NOx), and oil smoke
Steam generation, paste Energy: Natural gas
Produc- making, and heating
tion and Waste water: Chemical
R&D oxygen demand (COD),
ammonia nitrogen con-
Air conditioning and re- Energy: Outsourced elec- tent (NH3-N)
Number of environmental safety incidents
frigeration, production tricity, self-produced photo-
0 power, and lighting voltaic power General waste: Discard-
ed product packaging,
expired products, dis-
carded membranes and
Product ingredient wa- Water: Municipal water
lters, sludge from sew-
ter, process media, and supply
age stations, domestic
cleaning
waste, and kitchen
waste from canteens
Hazardous waste:
Hazardous reagents
Environmental Proya strictly complies with environmental laws and regulations, including the Environ- from laboratories, waste
mental Protection Law of the People’s Republic of China, the Prevention and Control of machine oil, waste ink,
management system Environmental Pollution by Solid Waste of the People’s Republic of China, and the Regu- and others
lations on the Safety Management of Hazardous Chemicals . We follow an environmental
management policy to save energy, reduce consumption and emissions, and increase
efciency. We continuously strengthen our environmental risk management to ensure
that our production and operations comply with relevant laws, regulations, and stan-
dards. We have established management documentation covering all environmental
impact factors. Additionally, we implement various management policies in our produc-
tion and operations to ensure effective control of environment-related risks.
Overview of management During the Reporting Period, our use of resources had no signicant impact on the
environment. We paid environmental protection taxes and fees in full, and no vio-
lations of environmental protection laws or regulations occurred.
1
Environmental impacts marked with * are not covered in this Report.
45 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
ESG Management Practice Report 46
Analysis of the environmental
impact of each process1 > Stage Input Output Climate change Proya closely follows the situation of global climate change and places high impor-
tance on climate change management. Proya has incorporated “climate change
mitigation and mitigation and adaptation” as one of our material topics for ESG management. The
Distribution and Resources: Transport pack- Greenhouse gases adaptation Board of Directors supervises and manages the Company’s ESG issues, including cli-
warehousing & logistics aging materials (Scope 1, Scope 2, and mate change issues. Relevant functional and business departments integrate climate
Scope 3)
Energy: Gasoline and
change management into their daily work priorities. In 2023, we submitted the Cli-
diesel consumed by freight General waste: Discard- mate Change Questionnaire to the Carbon Disclosure Project (CDP) and achieved
vehicles; outsourced elec- ed product packaging grade “B”, reecting our effective management in sustainability and climate action.
tricity used in warehouse and domestic waste
operations (including third
parties 2) Our greenhouse gas emissions are generated throughout the product lifecycle, with a
small percentage arising from ofce operations. Based on identied sources of green-
*Energy and resources con-
sumed in the operations of
house gas emissions, we set greenhouse gas emission reduction goals in Proya Sus-
distributors tainable Development Strategic Plan and collect greenhouse gas emission data every
year to assess our performance in climate change management.
Product usage and *Water and energy con- *Waste generated after
disposal sumed when consumers consumers use products Identified sources of
use products (generating
greenhouse gas emissions > Process Emitting Primary Energy Major Greenhouse
hot water) *Waste water, waste
gases, solid waste, Greenhouse Gases Consumed Gas Sources
*Energy and water con- and greenhouse gases
sumed in the production (Scope 3) generated
Procurement of raw Energy consumed in the Scope 3 emissions generated
and operations of waste in the production and
materials production and transporta- in the production and trans-
disposal units operations of waste tion of raw materials portation of raw materials
disposal units
Production Electricity Scope 2 emissions from the
consumption of electricity
Office operations Energy: Outsourced elec- Waste water: Domestic
Natural gas
tricity and gasoline con- waste water Scope 1 emissions from the
sumed by company-owned consumption of natural gas,
vehicles Non-hazardous waste: gasoline, and diesel fuel con-
Domestic waste sumed by company-owned
Water: Municipal water vehicles
supply Greenhouse gases
(Scope 1 and Scope 2)
Product distribution Electricity Scope 2 emissions from the
consumption of electric-
Gasoline and diesel con- ity consumed by compa-
sumed by freight vehicles ny-owned warehouses
Proya Huzhou Factory was designed and built in accordance with GMP standards. All
Scope 3 emissions generated
production workshops meet the environmental control standards for cosmetic clean from third-party warehouses
areas. The intelligent warehousing center has fully optimized the data and the robotic and freight vehicles
automation system, maximizing the sustainability of healthy and ecological produc-
tion and achieving our strategic goals of cost reduction and efciency enhancement. Product usage and Energy consumed by wa- Scope 3 emissions
disposal ter utilities during product
In September 2023, Proya Huzhou Factory was awarded the title “Green and Low-Car- usage
bon Factory of Zhejiang 2023.”
Energy consumed for
waste recycling and dis-
posal
Office operations Electricity Scope 2 emissions from the
consumption of electricity
Gasoline and diesel
consumed by self-owned
vehicles
2
Third parties are not covered in this Report.
47 2023 Sustainability & Environmental, Social and
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ESG Management Practice Report 48
Greenhouse gas emission data. We prioritize suppliers with lower carbon emissions. During the Reporting Pe-
reduction goals > riod, the range of carbon data collection covered 156 suppliers, accounting for 90%
(amount of cooperation) of raw material suppliers. Additionally, during the Reporting
By 2025 The proportion of clean energy will reach 50%, and carbon peak will Period, Proya’s e-commerce delivery boxes (May 1, 2023 to December 31, 2023) had
be accomplished in business operation.
achieved achieve carbon neutrality by suppliers through carbon offset, reducing the
Greenhouse gas emissions (Scope 1 and Scope 2) per unit of product carbon footprint of products in the distribution and transportation processes.
will decrease by 25% compared to 2021. Carbon peak (Scope 1 and
Scope 2) will be accomplished in business operation.
We will drive all strategic par tners to reduce carbon emissions
through value chain carbon reduction initiatives and incentives.
By 2030 We will achieve net zero emissions from our operations.
By 2045 We will achieve carbon neutrality across our entire value chain.
Greenhouse gas emission reduction
actions > Type Measure Achievement
Implemented Carried out clean production as well as Reduced green-
energy-saving energy-saving and technology upgrades in house gas emissions
and technolo- an orderly manner. by 177.21 tonnes
gy upgrades. of carbon dioxide
equivalent
Used clean Used 6,121.42 megawatt-hours of green elec- Reduced green-
energy. tricity. house gas emissions
by 4,744.30 tonnes
Installed a photovoltaic system on the roof of carbon dioxide Carbon neutral certificate
>
of the new warehouse, with an installation equivalent.
area of 38,197 square meters and a capacity
of 2,000 kilowatts. The annual electricity
output is estimated to be approximately In the sales process, all of our stores choose the best energy-saving solutions during
2,000 MWh. During the Reporting Period, renovation to reduce carbon emissions during operation. Our extensive sales are also
the photovoltaic system generated 2,197.53
MWh of electricity. engaged in carbon reduction initiatives. For example, a photovoltaic power genera-
tion facility has been installed at Haining Intime Department Store to partially replace
As of the end of the Reporting Period, all traditional energy sources.
forklifts at the factory had been replaced
with new energy forklifts.
During the Reporting Period, Proya reached a consensus with the top ten strategic
Packaging Advanced Firming Nourishing Light Cream Reduced green- partners on Proya Sustainable Development Strategic Plan and released the Together
reduc tion and 3.0 has simplified packaging design com- house gas emissions
substitution pared to 2.0, reducing plas tic usage by by 650.42 tonnes
for a Zero Carbon Future, Beauty in Harmony ” carbon reduction manifesto, commit-
approximately 100.49 tonnes during the Re- of carbon dioxide ting to reduce carbon emissions by 2025.
porting Period. equivalent.
Double Ef fec t Brightening E s sence has
adopted substitution packaging design, re- Greenhouse gas emission Greenhouse gas emissions (Scope Greenhouse gas emissions per RMB10,000
ducing plastic usage by approximately 107.97 performance > 1 and Scope 2) in the past 3 years of revenue (Scope 1 and Scope 2) in the
tonnes during the Reporting Period. (tonnes of carbon dioxide equivalent/ past 3 years(kilograms of carbon dioxide
CNY10,000) equivalent/CNY10,000)
8,426.86 18.19
We actively communicate and collaborate with original equipment manufacturers
7,933.90 12.42
(OEMs) and original design manufacturers (ODMs) to seek carbon reduction oppor-
tunities in production. During the Reporting Period, an OEM factory reduced its elec- 7,420.89 8.33
tricity consumption by using automated products, saving approximately 28 MWh of
electricity per year.
We promote carbon reduction policies to our raw material suppliers and plan for the
2021 2022 2023 2021 2022 2023
establishment of a system for collecting and evaluating suppliers’ carbon emission
49 2023 Sustainability & Environmental, Social and
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ESG Management Practice Report 50
Resource conservation
Energy management Our production, operations, and ofce activities directly or indirectly consume elec- Water resource management The water resources we use for production and operation mainly derive from the mu-
tricity, natural gas, gasoline, and diesel. We have developed energy management nicipal water supply, and the water source has no signicant impact on the environ-
systems such as the Power Saving Management System and the Natural Gas Leakage ment. In the Huzhou skincare factory, we established the Water-Saving Management
Emergency Plan. We constantly improve the usage efciency of energy and optimize Steering Group, which is solely responsible for water-saving management work. The
the use structure of energy. Group builds the evaluation, reward, and punishment mechanism for water saving,
and improves the water metering system, the standardization of water use behavior,
and the continuous improvement of water utilization efciency.
New energy-saving and emission
reduction measures and their Main Measure Performance In 2023, the Huzhou skincare factory conducted a water balance test analysis to assess
performance in production and water-saving opportunities and develop improvement plans. During the Reporting Pe-
operation processes >
Installed matched cooling towers to prevent After the renovation, the average annual riod, Proya Huzhou Factory was honored as a water-saving enterprise for the year 2023.
fouling on the heat exchange pipes in the electricity consumption was reduced by
condenser, resulting in a 10% increase in the 120 megawatt-hours.
operating efciency.
Major water-saving measure and
performance > Measures Performances
Added a set of three CIP (clean-in-place) tank After the renovation, the average annual
devices. Reduced natural gas and electricity consumption of natural gas was reduced Water balance The Huzhou skincare factory conducted a water balance test to gain a
consumption resulting from the separate by 36,000 cubic meters and the con- test full view of the current water usage. It also drew a water balance dia-
overtime operation of the boiler and the air sumption of electricity was reduced by gram to analyze improvement measures for water conservation.
conditioner associated with tank cleaning. 72 megawatt-hours.
Water recycling Recycling of cooling water: The Huzhou skincare factory built cooling
water circulation pools in the workshop. The cooling water is reused
and discharged regularly.
Sewage ltration and reuse: The Huzhou skincare factory built a sewage
In our ofce operations, we advocate for a green ofce. Proya strictly adheres to the treatment system. Through ltration treatment, the system can reuse
Daily Power Saving Plan of Proya Building and the Orderly Power Consumption Regu- recycled water such as toilet water and landscape pool water, reducing
the amount of fresh water used.
lation Plan of Proya Building, encouraging employees to turn off lights and air condi-
tioners when leaving the company to avoid wasting energy. To minimize ofce power Reuse of concentrated water from the pure water preparation unit: The
concentrated water produced by the pure water preparation unit is re-
consumption, we take measures such as turning off certain air conditioners in the used as toilet water and landscape pool water.
ofce area and reducing excess underground lighting on the premise of ensuing the
Reuse of steam condensate water: Steam condensate water is collected
basic needs of employees. and reused in the cleaning process, which utilizes steam waste heat and
water resources.
During the Reporting Period, our use of clean energy accounted for 35.35%, with a
20.39% decrease in electricity consumption per RMB10,000 of revenue and a 22.81% Equipment The automatic cleaning system of CIP efficient tanks saves 2,000t of
upgrade water annually.
decrease in natural gas consumption per RMB10,000 of revenue.
Energy management Electricity consumption per CNY10,000 Natural gas consumption per CNY10,000 Water resource management Water consumption per CNY10,000 Total recycling water volume in the past
performance > of revenue in the past three years (kWh/ of revenue in the past three years (cubic performance > of revenue in the past three years three years (cubic meters)
CNY10,000) meters/ CNY10,000) (cubic meters/ CNY10,000)
19,000
26.25 0.64
0.45 15,000
25.01 0.58
0.4 13,000
19.91 0.45 0.31
2021 2022 2023 2021 2022 2023
2021 2022 2023 2021 2022 2023
51 2023 Sustainability & Environmental, Social and
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ESG Management Practice Report 52
Raw material management The raw materials we use mainly include base materials for products, functional ingre- Green packaging management
dients, active ingredients, additives, and packaging materials. Our key management process > Packaging design
measures for raw materials include efcient use of raw materials, sustainable procure- In the packaging design stage, we take various design measures, such as reducing
packaging, improving packaging materials, and using alternative packaging and re-
ment of raw materials, quality management of raw materials, and enhancement of
cyclable packaging, to reduce the use of disposable plastic packaging and increase
packaging sustainability. the packaging recovery rate.
In terms of raw material use and conservation, we implement excellent performance
Packaging procurement
and lean management, and encourage employees to propose improvement sugges-
In the packaging procurement stage, we prioritize the procurement of sustainable
tions at any time during production. We seek to reduce the scrap rate and improve
packaging.
the usage efciency of raw materials. We collect improvement suggestions from em-
ployees and regularly recognize those employees.
Factory production
In addition, for information on the management of "sustainable procurement of raw ma- In the factory production stage, we recycle and replace the packaging and contain-
ers used in internal logistics to generate less packaging waste.
terials", please refer to the “Sustainable procurement” section of this Report. For details
on raw material quality management, please refer to the “Product quality and safety”
section of this Report. For information on the management of packaging sustainability Warehousing and logistics
enhancement please refer to the “Green packaging” section of this Report. In the warehousing and logistics stage, we apply various methods, such as recycling
and improved packaging design, to reduce the use of cartons and disposable
plastics.
Key actions for green packaging >
Green packaging Our green packaging management and practices cover a variety of product pack- Aspect Action and Result
aging across the whole production process, including finished product packaging,
intermediate packaging, and warehousing and logistics packaging. Proya follows the Reduce Streamlined the packaging design of Advanced Firming Nourishing
3R (reduce, reuse, and recycle) design philosophy. We are committed to reducing the Light Cream 3.0 3: Compared to Advanced Firming Nourishing Light
Cream 2.0, the weight of Advanced Firming Nourishing Light Cream 3.0
use of packaging materials at the source to further achieve lightweight packaging and
was reduced by 22%.
improve the packaging utilization rate and recovery rate.
The Advanced Firming Nourishing Light Cream 3.0 became available
with rellable options. Compared with the original design, each rell-
able option reduces the use of plastics by over 100 grams.
Structure of the Green Packaging
Working Group > Green Packaging Working Group
Reuse Recyclable cartons were promoted to all the warehouses of flagship
stores nationwide (Tianjin, Guangzhou, Chengdu, Wuhan, Hangzhou,
Huzhou, Changsha). A total of 529,000 cartons were shipped, amount-
ing to a save of 500 tonnes of paper for packaging.
Factories began using mobile stainless steel storage tanks instead of
Product Development Departmente
Product Design Department
Procurement Department I
Make-up Procurement Department
Skincare Factory
Make-up Factory
Factory Logistics Department
Planning
E-commerce Logistics Department
blue plastic buckets or PE plastic bags, reducing the use of 13，500
plastic bags.
&
Operations Department
Recyclable winter incubators were used for transportation in Northeast
China and Northwest China in replacement of disposable foam incuba-
tors. The annual usage reached 3,500 incubators.
Recycle Proya participated in the plastic recycling program of the Intime De-
partment Store, calling consumers to recycle plastic bottles and raise
awareness of recycling.
Fur thermore, we integrate our environmental protec tion concept into produc t
and packaging design, and promote refillable options and empty bottle recycling
programs through various channels such as Weibo, Little Red Book, and overseas
platforms. Our purpose is to promote the recycling value of refillable options to
consumers and enhance their awareness of environmental protection.
3
The Advanced Firming Nourishing Cream 3.0 series covers Advanced Firming Nourishing Moisture Cream.
Advanced Firming Nourishing Soft Cream, and Advanced Firming Nourishing Light Cream
53 2023 Sustainability & Environmental, Social and
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ESG Management Practice Report 54
Measures for guiding consumers
toward sustainable consumption >
Functional design Emission and waste management
Developed and launched refillable options of products, encouraged con-
sumers to buy rellable options, and reduced unnecessary packaging waste. Waste water discharge The waste water we produce mainly comes from domestic sewage and production
and waste gases waste water and is discharged to landscape water pools or to the outside through
Used recyclable packaging materials to improve the sustainable attributes a consolidated water pipe after being treated by the sewage treatment station. The
of packaging. waste gas produced mainly comes from boilers. We have formulated the Sewage
Treatment Management System, the Boiler Management System , and other manage-
ment documents to strictly control the discharge of waste water and waste gas. During
Use guide the Reporting Period, we discharged waste water and waste gas up to standards.
OR and Hapsode both launched empty bottle recycling programs, calling
on consumers to better reuse and repurpose bottles.
Proya participated in the plastic recycling program of the Intime Department Waste water discharge and waste gas Emission Standard
Category Main Control Indicator
Store, calling consumers to recycle plastic bottles and raise awareness of standards & main control indicators > Observed
recycling.
Waste Integrated Waste water Dis- Five-day biochemical oxygen demand
water charge Standard (GB 8978-1996) (BO D5 ) 3 0 0 mg /L , c hemic al ox yg en
demand (CODcr) 500 mg/L, suspended
matter 400 mg/L, ammonia nitrogen 35
Packaging management Proportion of sustainable packag- Packaging intensity (t/10,000 pieces) mg/L, animal and vegetable oil 100 mg/
performance > ing materials used (%) L, and others
1.15
1.1 Waste Integrated Emission Standard of Nitrogen oxides 50 mg/lim3, particulate
0.94 gas Air Pollutants (GB 16297-1996) matter 20 mg/m3, sulphur dioxide 50
25.47 mg/m3
Emission Standard of Air Pollut-
ants for Boilers (GB 13271-2014)
7.04
0.16
2021 2022 2023 2021 2022 2023
Primary measures for managing waste
Pollutant
water discharge and waste gases > Management Measure
Category
Packaging weight of 2023 (by type) Waste water Construct a waste water treatment system to ensure that the treated
waste water is highly purified and recycled.
Install the Multi Vision COD online automatic monitoring instrument to
monitor the COD content in treated water 24 hours a day.
Other 2%
During the Repor ting Period, a new sludge pressing device was
installed at the Huzhou factory, which effectively removes organic
substances from the waste water and further improves the sewage
treatment capability to ensure class-A sewage discharge.
During the Reporting Period, we excavated, replaced, repaired and
Plastic 24% Paper 55% retested some damaged rain and sewage pipes in the factory area in
accordance with the results reported by the underground pipeline
CCTV detection system.
Glass 19% Waste gas A waste gas treatment facility for the cream production line was added
to reduce the emission of dust and organic waste gas. After being used,
the facility can collect 99% dust and remove 75% organic waste gas.
A highly precise volatile organic chemical (VOC) gas collection device
was installed to effectively reduce uncontrolled gas emissions.
55 2023 Sustainability & Environmental, Social and
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Product and Customer Responsibility
Solid waste We properly dispose of solid waste generated in production and operations. We
manage solid waste in a macroscopical manner and our factories can track the whole
process data on solid waste and prevent risks by requesting to report the amount
of generated hazardous waste on the Zhejiang Information System Platform for the Performance highlights The proportion of scientific research Product health and
investment in the revenue of the parent safety violations
Supervision of Solid Wastes every year, selecting hazardous waste treatment service company4 is
providers through open bidding on the platform, and requesting for the treatment of
4.13% 0
hazardous waste on the platform.
During the Reporting Period, the sludge pressing device at the Huzhou factory re-
duced sludge production by 75%, resulting in an annual reduction of approximately
540 tonnes of sludge.
Main measures and implementation
standards for solid waste treatment > Main Treatment
Category Waste Reference Standard
Measure
doctoral degree or above
General Domestic waste, cartons, Collected, and then Standard for Pollution
waste tape, lm, paper, and
others
recycled or resold Control on Municipal
Solid Waste Incineration 2.48%
Regularly handed (GB 18485-2014)
Lined bags, expired over to a qualied master’s degree or above
products, waste lter agency for treatment
membranes and lters,
sewage sludge, domestic
waste, canteen waste
R&D team
members 41.6%
Hazardous Hazardous reagents, Regularly handed over Identication Standards
waste waste oil, waste ink in to a qualied agency for Hazardous Waste
laboratories for treatment General Rules (GB 5058.7-
2019)
Solid waste discharge performance > Discharge of general waste per CNY10,000 of revenue (kg/CNY10,000)
1.99
1.84
1.62
Innovations in research Proya takes innovation in research and development as an area of core competitive-
ness and builds a comprehensive R&D innovation framework and management sys-
and development tem. Adhering to a “consumer-centric” concept, we fully consider consumers’ needs
based on dermatology, and apply this concept throughout the whole process from
raw materials to nished product development, including fundamental research, for-
mula development, physical and chemical analysis, and assessment of raw materials
and product efcacy.
2021 2022 2023
In 2023, Proya’s Longwu R&D Center and Shanghai R&D Center were put into operation.
The two centers are equipped with laboratories catering to different functions and are
Discharge of hazardous waste per CNY10,000 of revenue (g/CNY10,000)
furnished with advanced experimental instruments, thus enhancing our capabilities in
independent research and development. Additionally, we have established a research
2.16
and development center for makeup base to enhance the development and competi-
1.53 tiveness of makeup base products.We continue to increase investment in research and
development. During the Reporting Period, the investment in research and develop-
0.65 ment reached CNY173.5701 million, accounting for 4.13% of the revenue of the parent
company.
4
The “revenue of the parent company” here refers to the revenue of Proya Cosmetics Co., Ltd., excluding the
2021 2022 2023 revenue of its subsidiaries.
57 2023 Sustainability & Environmental, Social and
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ESG Management Practice Report 58
Research and development layout > Application and achievements of our
Research and technology platforms > Technology
development layout Platform
Main Function
Chemical synthesis Based on known efcacy targets, the platform designs specic mo-
lecular structures and seeks synthesis possibilities.
Longwu R&D Shanghai R&D Biotechnology The plat form screens specific microorganisms or strains, and
Center manufacturing achieves the biosynthesis of active ingredients through AI simulation
Center and biological computation.
Focus on cutting-edge Focus on scalp skin
skin mechanism study, mechanism, ecology, and
new material design and hair washing and main- Plant extraction The platform extracts plant components such as flavonoids, poly-
development, formula de- tenance, and carries out phenols, and polysaccharides with technologies, and then puries
velopment and validation. fundamental, applica- and condenses functional products.
tion, and clinical efcacy
research.
We have a professional, diversified, and innovative R&D team comprising high-caliber
professional researchers in different disciplines such as skin science, biochemistry, life
science, material science, medicine, industrial design, psychology, and statistics. In
2018, we licensed and established the Zhejiang Postdoctoral Workstation as a part of
our efforts to deepen the training of high-level personnel. In 2023, the management
trainee project of our R&D team admitted 32 outstanding members to enrich our
talent pool. Currently, 41.6% of the R&D team members hold a master’s degree or above
and 2.48% hold a doctoral degree or above. For selected R&D talents, we plan for job
rotation schedules, promote the exchange of knowledge, new industrial technologies
and results among them, and provide specialized R&D training to enhance their
R&D investment > R&D investment in the past three years Proportion of scientic research investment research and development capabilities.
(Unit: RMB100 million) in the revenue of the parent company (%)
1.73 To fully stir up the innovation enthusiasm for R&D personnel, we continuously improve
our talent incentive measures by revising the Intellectual Property Management
1.28 4.31 4.13 Regulations and setting up rewards for papers and patents to encourage R&D
3.55 personnel to enhance their research capabilities and promote technological
0.77 innovation in the company. Meanwhile, we actively recommend patent research
projec t s as well as oppor tunities to cooperate with universities and receive
professional titles for eligible R&D personnel, so they can be better recognized by the
industry.
We attach impor tance to external R&D cooperation and continuously deepen
2021 2022 2023 2021 2022 2023
cooperation. In terms of international strategic cooperation, we have established
partnerships with BASF in Germany, Lipo True (a Spanish family peptide company),
Ashland (an American special materials expert), and other global technological
laboratories. In terms of the integration of industrial, academic, and research
In 2023, our research and development focus was on the construction of three major capabilities, during the Reporting Period, we collaborated with Beijing Technology
technology platforms in chemical synthesis, biotechnology manufacturing, and plant and Business University, Zhejiang University, Jiangnan University, and other higher
extraction. During this process, we continued to rene precise analytical testing meth- education institutions to actively promote the integration of industrial, academic, and
ods and support the research, development, and efcacy verication of new ingredi- research capabilities. Also, we take an active part in industrial exchange and share our
ents, ultimately enhancing our R&D efciency. practices with industrial peers, helping the industry grow healthily.
59 2023 Sustainability & Environmental, Social and
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ESG Management Practice Report 60
Achievements of external
collaborations > Cooperative Universities Research Achievements Product quality We strictly abide by the Regulations on the Supervision and Administration of Cos-
metics, the Code for Quality Management of Cosmetics Production, the Safety and
and safety Technical Standards for Cosmetics, and other laws and regulations. To ensure the
Beijing Technology and Research on the Mechanism and Improvement A p- quality, safety, and efcacy of products, we perform quality management throughout
Business University proaches of Enlarged Skin Pores
the entire process from product R&D and production to post-market. During the Re-
porting Period, we completed the missing registration of product information in ac-
Hangzhou Dianzi Ball Milling of Titanium Dioxide and Zinc Oxide for Im- cordance with the new requirements specied in the Regulations on the Supervision
University proved UV Protection
and Administration of Cosmetics, ensuring the compliance of products.
Jiangnan University Plant Cyclic Peptide and Their Potential Applications in
the Cosmetics Industry
Quality management in In product development, we focus on the safety and efficacy of raw materials and
product R&D formulas. We have formulated the Product Anti-Corrosion Energy Efficiency Test
Process, the Human Patch Test Process, and other systems to standardize the quality
In 2023, we actively participated in industrial exchanges, such as the 2023 National
and safety control of product development. In addition, we comprehensively evaluate
Conference on Integrated Traditional Chinese and Western Medicine for Dermatolo-
newly developed formulas, and upgrade original formulas and functional and active
gy and the IFSCC Conference. During those events, we shared our practices with the
raw materials to ensure product safety and outstanding efficacy. During the Reporting
industry and contributed to its high-quality development.
Period, we formulated the Regulations on New Product Development to standardize the
new product research and development procedure, aiming to achieve procedural, stan-
dardized, and efcient R&D processes, thereby enhancing our management capabilities.
Highlights and recognitions During the Reporting Period, Proya: We comply with national requirements for cosmetics registration and filing and
of research, development, conduct product inspections and safety testing of physical and chemical microbial
and innovation > indicators. We established the Analysis and Test Depar tment and the Produc t
Submitted 47 new patent applications and was granted 15 invention patents.
Evaluation Department under the R&D Innovation Center to evaluate the quality of
Launched 76 new products 5. product development. We designed a sophisticated safety evaluation system that
includes stability, anti-corrosion tests, sensory evaluation, in vitro efficacy evaluation,
Successfully registered the new cosmetic ingredient “3,3,5-TRIMETHYLCYCLO- cytotoxicity evaluation, animal toxicology experiments, clinical test evaluation, and
HEXYL SUCCINATE DIMETHYLAMIDE.” tests performed by dermatologists. In addition, we conduct human patch tests, eye
irritation/corrosion tests using chick embryo chorioallan toic membranes, zebrafish
Published 2 journal articles,including “Skin Health and Disease” (a core journal of tests, and lactic acid tingling tests to reduce the potential adverse skin reactions
the British Association of Dermatologists) and “Journal of Daily Chemical Industry” (a caused by cosmetics in humans.
core journal of the Chinese daily chemical industry) and 6 English posters,including
IFSCC 2023 (International Federation of Societies of Cosmetic Chemists) and the We also actively establish and develop in vitro evaluation methods to replace animal
2023 Annual Meeting of the International Federation of Cosmetic Chemists. experiments. We have set up a technology evaluation module within the International
Academy of Sciences to evaluate the safety and efficacy of key functional raw materials
Participated in the development of 3 national standards and 12 group standards, in- and products. We have established more than 20 in vitro evaluation methods such as
cluding GB/T 43197-2023 Determination of Prohibited Acid Red 73 and Solvent Red in vitro moisturizing; whitening and freckle removal; soothing and anti-inflammatory
1 in Cosmetics - Liquid Chromatography - Tandem Mass Spectrometry and Valida- functions; anti-oxidative, anti-aging and other efficacy evaluations; toxicological
tion Criteria for Analytical Results of Cosmetics Using Chromatographic Techniques. stimulation; and other safety evaluations at the biochemical, molecular, cellular, and
3D model levels. We have the preliminary ability to conduct in vitro efficacy and
safety evaluations of major cosmetics such as those for anti-aging, whitening and
freckle removal, soothing and stimulation, as well as to conduct research on efficacy
mechanisms.
As of the end of the Reporting Period, Proya had:
Led or participated in the development of 17 national standards, 4 light QB/T
industry standards, and 26 group standards.
Obtained 256 valid patents, including 122 invention patents.
5
The new products here refer to completely new products, products with upgraded formulas, products with
upgraded packaging, and products with minor innovations.
61 2023 Sustainability & Environmental, Social and
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During the production stage, Proya upholds the quality control philosophy of process We further improved our quality assurance and quality control standards, optimized
Quality management in
control, quality and safety, and customer satisfaction, and has established a well-de- the conrmation process of product production, and established an audit mechanism
production veloped quality management system. We have developed the Proya Management to check product quality, which was agreed upon by departments, including research,
Manual, the Deviation Control System, the Non-Conformance Corrective Action Con- development, and factories. We perform internal quality audits regularly to identify
trol Procedures, and other systems to standardize quality control and deviation man- potential quality management improvements. Then, we develop corresponding im-
agement at all stages from raw materials and production to delivery. Quality objec-
provement measures.
tives are set at all stages and strict quality monitoring is applied to guarantee product
quality across the board. The skincare factory and the makeup factory are responsible
for managing product quality and developing quality audit plans to ensure that the
quality management in the production process meets industry and company stan-
dards. During the Reporting Period, we formulated the Management System for Safe-
ty Testing of Innovative Raw Materials and the Management System for Lubricants, Quality control at the Raw material control
and revised the Raw Material Quality Management Specifications, the Quality and production stage Formulate a raw material management system, set acceptance standards, and stan-
Safety Responsibility System, and the Quality Management System Self-Inspection dardize evaluation methods, and ensure each department strictly abides by the reg-
Mechanism. Our purpose was to improve the quality management in the production ulations of various documents.
process and ensure our quality management measures comply with legal regulations Develop the Management System for Safety Testing of Innovative Raw Materials to
and industry standards. conduct full-lifecycle monitoring of new materials used in China for the rst time.
Adopt a raw material shelf-life control system and set quality control indicators for
Quality management raw materials, including physiochemical, microbiological, and infrared spectrum n-
Certification Scope of Certification Valid Period of gerprint control.
system certification >
Certification
ISO 22716 Cosmetics - Good Proya Cosmetics Co., Ltd. 2026.5
Manufacturing Practices (GMP) Packaging material control
US FDA CFSAN Cosmetics - Good Proya Cosmetics Co., Ltd. 2026.5 Formulate the Packaging Material Management Specifications and other systems.
Manufacturing Practices (GMP)
Evaluate packaging samples and small-lot trial production of packaging.
ISO 9001:2015 Proya Cosmetics Co., Ltd. 2025.2
Set up an inspection plan and release products only after they pass all inspections.
ISO 9001:2015 Zhejiang Beauty Cosmetics
Co., Ltd.
2024.3 Manufacturing process
US FDA CFSAN Cosmetics - Good Zhejiang Beauty Cosmetics
(under review
Manufacturing Practices (GMP) Co., Ltd. Formulate process specifications in strict accordance with the production process
for renewal)
approved by the state, and manage the produc tion process in a standardized
ISO 22716 Cosmetics - Good Zhejiang Beauty Cosmetics manner.
Manufacturing Practices (GMP) Co., Ltd.
Develop evaluation specifications for semi-finished products and set quality control
indicators such as physiochemical, microbiological, and preservative additions.
Key performance objectives and Performance in 2023
KPIs in Production Sample every lot of semi-finished products and regularly re-check inventory.
performance of production factories > Target
Quality Skincare Factory Makeup Factory
First-pass yield of the ≥99% 99.66% 100% Packing control
production process
Carry out first-piece control and in-process control, and manage the quality of the
packing process.
Acceptability of spot 100% 100% 100%
checks
The MES system launched in 2021 collects quality data during the production
Rate of quality- ≤2ppm ≤1.22ppm ≤0.59 ppm process to realize real-time sharing of on-site quality information and information
related complaints (reject ratio per 1 traceability.
million products)
IQC pass rate ≥99% Raw materials IQC pass Raw materials IQC pass
rate 98.73% rate 100% Finished product control
Packaging materials IQC Packaging materials
Perform quality control of products against quality standards, including physical and
pass rate 99.18% IQC pass rate 94.8%
chemical, stability, and heavy metal inspections. Products can only be released after
passing these inspections.
Close rate of defects 100% 100% 100%
in management
system review
Ex-factory inspection
6 Establish the Labeling and Traceability Control Procedures in strict accordance with
To ensure product quality, the Company establishes inspection criteria for each raw material and carries
the requirements of laws and regulations.
out inspections strictly. For raw materials that do not meet Proya's standards, the Company handles them
appropriately based on management systems such as "Raw Material Quality Management Specification," Ensure production records on the labels of all delivered products are traceable and
"Quality and Safety Responsibility System," and "Quality Management System Self-Inspection System." In 2023, include lot number, specification, process, and inspection records.
the Company added new inspection criteria for raw materials and increased the requirements for raw material
quality management. As a result, the qualification rate of incoming raw materials has slightly decreased.
63 2023 Sustainability & Environmental, Social and
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ESG Management Practice Report 64
We have complete in-house testing capabilities and advanced equipment and in- Chemical safety During product research and development, we monitor the chemical ingredients we
struments. Our various safety and efcacy tests are conducted throughout the entire use to ensure their safety. Proya strictly abides by the requirements of laws and regu-
product R&D process, covering the whole lifecycle of raw materials, packaging materi- lations such as the Safety and Technical Standards for Cosmetics and the Catalog of
als, semi-nished products and nished products to ensure that the products reaching Already-Used Cosmetic Raw Materials (2021 Edition). We do not use prohibited ingre-
consumers are safe and effective. The equipment includes the Vision Swift Duo inte- dients, including but not limited to more than 2,000 ingredients banned by the Cata-
grated video and optical measurement system from the UK, Olympus wall thickness log of Prohibited Cosmetic Raw Materials and the Catalog of Prohibited Plant (Animal)
gauge, SUNTEST light aging tester from America, Agilent high-performance liquid Raw Materials for Cosmetics, such as hydroquinone, phenol, retinoic acid and its salts,
chromatograph from America, and inductively coupled plasma emission spectrometer glucocorticoids, and antibiotics.
(ICP-OES). During the Reporting Period, we introduced the Agilent high-performance
liquid chromatography from America and the sealing and leakage intensity tester for On this basis, we adopt stricter standards than Chinese laws and regulations to regulate
exible tube masks on the production line. These allow us to measure the appearance the selection of raw materials for cosmetics. By referring to the ingredients and dosages
of packaging materials, wall thickness, lm thickness, hardness of electroplated coat- in the relevant standards of the European Union, South Korea, and Japan, we prohibit
ing, adhesion of surface printing and electroplated coating, light aging performance, the use of controversial ingredients in the development process of new products.
impact resistance, solvent resistance, airtightness, fatigue properties, and compatibil-
ity. We can also determine the content of preservatives, heavy metals, and sunscreen
agents in cosmetics, and the content of prohibited and restricted substances stipulat-
ed in the Safety and Technical Standards for Cosmetics. In 2023, we developed a phys-
ical sunscreen content testing method, a preservative content testing method, and a
physical and chemical PH water-in-oil product testing method in accordance with the
Safety and Technical Standards for Cosmetics to enhance our self-testing capabilities.
International safety standards for important
We carry out internal quality management training to align employees with our quality chemicals we refer to
requirements and standard management procedures. Meanwhile, we conduct quality
training and quality review meetings with suppliers to update them on Proya’s quality
European Commission
management systems and standards and share with them our quality management
measures and cases, so as to help them improve their quality management capabilities. LIST OF SUBSTANCES PROHIBITED IN COSMETIC PRODUCTS
LIST OF SUBSTANCES WHICH COSMETIC PRODUCTS MUST NOT CONTAIN EXCEPT SUBJECT
During the Reporting Period, we passed 12 external audits from regulatory units TO THE RESTRICTIONS LAID DOWN
and collaborative units. Additionally, we did not encounter any punishment related
LIST OF COLORANTS ALLOWED IN COSMETIC PRODUCTS
to quality and safety, nor did any lawsuit arising from the above matters occur.
LIST OF PRESERVATIVES ALLOWED IN COSMETIC PRODUCTS
LIST OF UV FILTERS ALLOWED IN COSMETIC PRODUCTS
Post-market quality To protect the rights and interests of consumers, we have formulated the Product Re-
management call Management and Product Recall Control Procedures to immediately stop selling
South Korea
and recall sub-standard products already sold or in transit. We conduct an annual
product recall rehearsal to ensure the recall procedure is running effectively. Types and Restrictions of Cosmetic Colorants
During the Reporting Period, we did not encounter any product recall events. We also
rehearsed the recall of products due to customer complaints attributable to suppliers. Japan
The entire process took 8 days from the ling of customer complaints to the issuance
Cosmetics Benchmark - List of Prohibited and Restricted Substances
of recall letters, and nally to the return of products. Also, we require suppliers to take
corrective actions based on the Eight Disciplines Problem Solving (8D) method within
the specied time frame[The 8D method covers 8 steps and is used to systematically
address quality issues through collaborative teamwork. It is commonly used in the
automotive industry.], and their performance will be evaluated accordingly. This recall
rehearsal veries the availability of recall procedures and traceable management sys-
tem processes, and ensures the suitability and conformity of our management system.
7
The 8D method covers 8 steps and is used to systematically address quality issues through collaborative
teamwork. It is commonly used in the automotive industry.
65 2023 Sustainability & Environmental, Social and
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ESG Management Practice Report 66
Our chemical safety management runs through all stages from R&D to post-market. Review and identification
During the stage of product development and ling, we invite professional third-party Review chemicals of concern, identify chemicals of concern and associated products, and im-
institutions to jointly conduct product safety assessments and adjust ingredients ac- prove the management of chemical raw material records.
cording to the clinical research results and market feedback.
Assessment
Assess the use of chemical raw materials of concern, ensure relevant departments conduct
evaluations and make decisions, and develop a plan for upgrading and phasing out formulas.
Adjustment
Chemical safety management procedure Strictly prohibit the usage of ingredients prohibited by laws and regulations.
Gradually phase out and reduce the use of controversial ingredients in accordance with the
ingredient upgrade program for controversial ingredients disputed in clinical research, industry
Development and selection of raw materials
policies, and market feedback.
Develop the Specications for the New Raw Material Development Process to standardize the
research and development of new materials and ensure that new raw materials are developed Update the product filing information after the adjustments.
in a compliant and safe manner.
Prohibit the use of controversial ingredients that are identied by laws and regulations, industry
standards, academic ndings, and the internal list of chemicals of concern in the development List of ingredients replaced over
of new products. the years > Number Name of Raw Material Progress of Replacement
Require suppliers of chemical raw materials to conduct safety assessments and provide toxicol-
ogy test reports for chemical raw materials. 1 Iodopropynyl butylcarbamate (IPBC) Replaced
Mixture of CMIT/MIT and magnesium Replaced
Tracking 2 chloride/magnesium nitrate (CMIT:MIT=3:1)
Monitor chemicals, update the internal list of chemicals of concern, and continuously improve 3 Kojic acid Replaced
the management of chemical records based on laws and regulations, industry policies, and
the inquiry result of academic ndings; inform relevant authorities of the updated content, and
4 Avobenzone Replaced
gradually reduce the usage of chemicals of concern.
Run tests on chemical impurities, and use chemicals with fewer impurities on the premise of 5 Triclosan Replaced
ensuring product safety.
6 Lyral Replaced
Develop the Management System for Safety Testing of Innovative Raw Materials to conduct
full-lifecycle monitoring of new materials used in China for the rst time. 7 Imidazolidinyl urea Replaced
Set acceptance standards for raw materials, adopt a raw material shelf-life control system and
8 Diazolidinyl urea Replaced
set quality control indicators for raw materials, including physiochemical, microbiological, and
9 Zinc pyrithione (ZPT) Replaced
infrared spectrum ngerprint control, and guarantee the safety and effectiveness of chemicals.
10 Methylisothiazolinone Replaced
Information disclosure Propylene glycol Gradually being replaced (no
11 longer used in key products)
Disclose the list of replaced chemical ingredients and the complete formula of hero products on
the ofcial website, protecting consumers’ right to know about product ingredients. Paraben Gradually being replaced (no
12 longer used in key products)
Mineral oil Gradually being replaced (no
13 longer used in key products)
As for chemicals of concern, we have established a complete management procedure
Isopropyl myristate Gradually being replaced (no
to ensure the proper management of these chemicals and to address the concerns of 14 longer used in key products)
stakeholders through solid action.
15 Cocamide DEA Gradually being replaced (no
longer used in key products)
Talcum powder Gradually being replaced (no
16 longer used in key products)
Butylated hydroxytoluene (BHT) Gradually being replaced (no
17 longer used in key products)
Management procedure for chemicals of concern 18 Phenoxyethanol Gradually being replaced
19 Emulgator containing PEG Gradually being replaced
Retrieval 20 Artificial color Gradually being replaced
Regularly retrieve laws and regulations, industrial standards, and relevant rules related to the
safety of chemical raw materials, identify new policies as well as controversial chemical com- Note:
ponents and those of concern, update the internal list of chemicals of concern and the list of We update the list of component replacement in real time. For specic and up-to-date information, please
banned substances, and improve the compliance of chemical management. refer to the ofcial website.Raw materials numbered 5, 6, and 9 were replaced due to regulatory requirements,
while the remaining raw materials were voluntarily replaced.
67 2023 Sustainability & Environmental, Social and
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ESG Management Practice Report 68
Customer service and rights protection Method and procedure for handling
complaints >
Consumer services Adhering to the concept of heartfelt service and sincere hospitality, Proya is commit- Offline stores
ted to providing consumers with a premium customer service experience. We have
built a smooth online and ofine customer service channel to provide consumers with
pre-sale, in-sale, and after-sale inquiries, consultation, and complaint services. We
regularly organize training for marketing personnel to continuously improve their pro- E-commerce Proya VIP center on
fessionalism and service capabilities. We also regularly carry out customer satisfaction customer service Weibo
surveys and collect consumer opinions and suggestions to optimize the consumer Customer
service experience.
service
channels
In terms of consumer communication, we build consumer feedback channels to listen
to their opinions and suggestions, provide Q&As and after-sales services for consum-
ers, and track them after the purchase. To collect improvement suggestions, we carry
24-hour service WeChat
out consumer communication and collect feedback on products, services, and oper- hotline
ations through return visits for evaluation, satisfaction surveys by phone, and other
methods.
Feedback
Consumer communication Handling Method
Communication
channels >
Customer service personnel answer the questions of
User experience users immediately and provide professional suggestions
and solutions
Social media E-commerce Customer Official website Offline stores Satisfaction
customer service service center surveys
User needs are recorded and reported to the customer
After-sales service department and other relevant departments to
experience solve the issues encountered by users as soon as possible
and maximize their rights and interests
In terms of consumer complaints, we have established a comprehensive com-
plaint-handling channel linking our sales, R&D, and customer service departments to
Product Products are sorted and monthly reports are generated
timely handle consumers’ feedback and questions on user experience, after-sale ser- and sent to the R&D Department for product upgrades
optimization
vice, and product improvement suggestions. and improvements
Factories, R&D, and quality departments work together
Product quality on troubleshooting and implement targeted measures
complaints according to problem severity to reach a consensus with
consumers and maximize their rights and interests
69 2023 Sustainability & Environmental, Social and
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ESG Management Practice Report 70
In terms of consumer feedback, we collect consumer comments on the Tmall Customer Progress and achievements of
consumer experience optimization > Work Achievements
Voice module every month and hold monthly consumer service meetings. To improve
internal management mechanisms, we coordinate with our sales, R&D, factory, and cus-
Consumer Proya
tomer service departments to follow up on and handle consumer feedback and ques- Communication Formulated a line of customer service management The one-time resolution
tions on user experience, consumer services, product optimization, and logistics service. documents such as the Channel Management Mech- rate for customer issues
anism, the Pre-Sales and After-Sales Handling Stan- reached 80.38%.
dards, and the Quality Inspection Management Stan- (Increased by 1.35% compared
In terms of optimizing the consumer experience, we pay attention to consumers’ pur- dards to rene the customer service process. to 2022)
chases and usage experience, and actively track all stages of the transaction chain.
We forecast issues that consumers may encounter and follow up on them, and contin- TIMAGE
ue to optimize the consumption experience at all stages. Established an active service team to provide end-to- In 2023, the one-time res-
end services from consultation and order fulllment to olution rate for customer
after-sales support. issues reached 73.08%.
(Increased by 10.30% compared
Provided complete and diverse solutions to help con- to 2022)
sumers and customers make quick decisions.
Measures for consumer
experience optimization >
Consumption Process Experience Improvements
Offered privileges for after-sales service, including the
fast-track service for the rst order.
Pursue “quick reply in 30 seconds” to respond to consumer questions Singuladerm
Conducted a product satisfaction survey that covered Singuladerm 8.7 ,SOS
skin feel, efcacy, packaging, and pricing. The survey 8 Anti-aging Beauty Optimiz-
helped the brand understand consumers’ use experi- ing Complex 7.5 points,
Use unified tickets to record after-sales issues and carry out closed-loop ence and provided feedback to relevant departments to and Singuladerm Expert
management to ensure that the issues are fully handled enhance overall consumer satisfaction. Contour 9.8 points.
Enhancement Proya
of Consumer
Follow up the early warnings and alerts on consumer services on the e-commerce Experiences Provided consumers with outstanding product experi- 2,233 consumer product
platform to promptly improve the consumer experience ences at bricks-and-mortar stores. salons were held.
Updated product information with sales staff and dis- 187 product training ses-
tributors to enhance their understanding of products sions were held.
Reduce the use of customer service bots and provide a 24-hour manual online and deliver better customer services.
service to improve the consumer interaction experience
TIMAGE
Optimized warehouse operation to improve warehous- The 24-hour pick-up time-
ing efciency. liness ratio increased from
86.53% to 99.21%.
Product Usage Experience Improvements Optimized the allocation of logistics service providers
to improve the accessibility of logistics services. The delivery time was
reduced by 24.65 hours
Continuously optimized packaging solutions and logis- compared to 2022.
tics operation standards.
Update products according to consumer feedback after product launch to
The error rate was reduced
improve the user experience in relation to the products themselves
to as low as 0.003%.
Improvement Anya, UZERO
of Customer
Provided training for store managers, covering brand Training was provided for
Service
and product knowledge, skincare expertise, and service over 300 store managers to
Capabilities
skills. improve service standards.
In terms of consumer service ability improvements, we are committed to building a
professional and efcient consumer service team through talent training and business
Proya
innovation. In terms of consumer satisfaction surveys, our business departments carry
out annual consumer satisfaction surveys and collect consumer opinions on products, Established the Proya PCA Academy to provide online The Proya PCA Academy
customer service training, thereby enhancing the busi- has over 800 trainees, of-
logistics, and services to learn about consumer needs. Additionally, we organize physi- ness competence and product expertise of customer fering 86 courses totaling
cal product salons and provide training for distributors on products and services to en- service personnel and providing consumers with premi- 423 hours of study time.
um services and experiences. There are 134 exam ses-
hance the ofine service experience. In 2023, the Proya and TIMAGE brands integrated sions with a total of 5,547
pre-sales and after-sales customer service management to a higher degree, helping Conducted on-site quality checks for customer service, participants.
engaged in one-on-one communication with customer
the customer service team quickly address customer issues and reduce waiting time. service personnel based on customer feedback, and
analyzed and reviewed feedback to help them improve
their customer service capabilities.
8
Singuladerm conducted a satisfaction survey for its own products, capped at 10 points.
71 2023 Sustainability & Environmental, Social and
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ESG Management Practice Report 72
All the brands under Proya have been recognized for their customer service capabili- Responsible marketing We believe that the most basic customer service that an enterprise can perform is to
ties, and have received numerous accolades. provide consumers with genuine, accurate, and complete product and marketing infor-
mation. In strict compliance with the Law of the People’s Republic of China on Protec-
tion of Consumer Rights and Interests, we have established a sophisticated manage-
ment mechanism to ensure the authenticity and accuracy of product marketing content.
Recognition and honors related to consumer services Administrative measures for socially
Guaranteed Accuracy of Product
responsible marketing > Training for Responsible Marketing
Promotion
Proya
We have established the Product Technolo- Prior to the launch of a new product, we
Proya’s customer service team was honored as a “Jinwangwang” team (gold team) twice and gy Content Department, in which our R&D organize training in product information
“Yinwangwang” team (silver team) eight times. professionals review product descriptions accuracy for brand marketing, operations,
to ensure the correctness and accuracy of and customer service personnel, including
The customer experience score for Proya’s store on TikTok remained at 97 or above. scientic and technical content in the pro- product texture science, product usage
cess of product promotion. suggestions, and more.
Proya’s JD store obtained the Excellent Consulting Service Award for the Through Train service.
We have established the Product Copywrit- Customer service personnel receive at least
ing Review Procedures. Marketing copywrit- three sessions of training in product knowl-
TIMAGE ing must be reviewed by departments such edge and take post-training examinations
as brand marketing, product development, to ensure that consumers are provided with
The TIMAGE store on Tmall was granted the title “6.18 Gold Customer Service Team,” the “Five-
research and development, and legal affairs. consistent product information in line with
Star Store Experience Award,” and the “Silver Bee Award for Functional Services of Stores.”
our standard product introduction.
We conduc t inter nal clinic al trials and
TIMAGE was awarded the Red Rabbit “Star Customer Service” prize (highest satisfaction and
third-party testing for the main efcacy of During the Reporting Period, we conduct-
conversion rates).
products during the marketing process. ed three training sessions on brand values
to standardize marketing behavior. The
Hapsode coverage rate of responsible marketing
training for product marketers and cus-
The Tmall store has been honored as a “Jinwangwang” customer ser vice team for eight tomer service personnel reached 100%.
consecutive months.
The brand maintained a 100% rating for services on the TikTok store.
Understanding the safety and functionality of cosmetics is an important line of de-
Consumer privacy protection Proya values information security and consumer privacy protection. We strictly abide fense for consumers to ensure their own safety. Through transparent ingredient dis-
by the Personal Information Protection Law of the People’s Republic of China, the closure and education on chemical ingredients in various forms, we help consumers
Data Security Law of the People’s Republic of China, and other laws and regulations. better understand the efcacy of ingredients so they can make purchasing decisions
We have developed the E-commerce Data Security Management System, the Network more wisely.
Security Management Measures, the Information System Development Management
Measures, the Data Security Management Rules, the Data Classication and Grading
Administrative measures for chemical
Security Management System, the Full-Lifecycle Data Security Management System, safety and ingredient transparency > Ingredient We fully indicate product ingredients on labeling in accordance with the require-
and other management systems. In terms of data security and research and develop- ments of laws and regulations.
disclosure
ment, we require all employees to strictly implement security systems to ensure com- We upload a complete ingredient list of products on apps commonly used by
pliance with data-secure production requirements. We follow up on the latest security consumers, such as “Transparent Label” and “Practical Beauty,” on which we
openly and transparently disclose product ingredients.
policies and related regulations in real time.
We publish a list of replaced chemical ingredients of concern on our ofcial web-
We strictly control the access to and transmission of consumer information, desensi- site and regularly update the replacement list and progress. We also announce
the method to access product ingredient records.
tize sensitive information, and restrict data duplication and the frequency of access to
consumer information. We also set permissions for the export of sensitive information We clearly explain the ingredients used, the mechanism of action, and the source
in the promotion of all products.
so that operators cannot obtain user information. We review the existing data, tighten
the access rights of the data domain, and strengthen access control of the network
environment. In terms of e-commerce platform management, we strictly comply with
the requirements of each platform for consumer information protection, encrypting
and desensitizing consumer information during transmission to ensure information
security.
Meanwhile, we enhance consumers’ awareness of privacy protection through internal
meetings and expert-led training sessions. Additionally, we have organized three in-
ternal meetings to discuss and promote privacy protection. We also invite external ex-
perts to hold exchange sessions, aiming to spread the concept of information security
and protection.
73 2023 Sustainability & Environmental, Social and
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Supply Chain Responsibility
In terms of supplier quality management, we conduct regular on-site audits of
Performance highlights Pass rate of ESG compliance Proportion of RSPO-certified Proportion of RSPO-cer-
suppliers and provide specialized quality training for key suppliers. In 2023, we
assessment for suppliers palm oil derivatives procured tied palm oil derivatives
(by type) procured (by weight) completed annual audits for 77 suppliers. Meanwhile, various departments of the
company worked together to organize targeted quality training and review meetings
100% 40.4%* 15.93%* for 11 suppliers, aiming to enhance their qualit y management and ensure the
effectiveness and safety of raw materials.
In addition, we have established the Outsourcing Management System for OEM/
ODM suppliers. This document strengthens quality control in the outsourcing
process through standard formulation, on-site guidance, quality testing, and random
Supplier management Most of our suppliers are material suppliers, OEMs, or ODMs. Stable relationships
with suppliers are crucial to the quality of our products and services, as well as our sta- inspections.
ble operations. Proya complies with the Civil Code of the People’s Republic of China,
the Bidding Law of the People’s Republic of China, and other laws and regulations. We
also conduct effective end-to-end management of suppliers to prevent and control Quality control measures for
outsourcing >
supply chain risks. Standard formulation
We develop complete quality control standards covering chemical ingredients, appearance,
We have established multiple management documents such as the Supplier Manage- and consumers’ use experiences to ensure that suppliers adhere to the standards during pro-
duction.
ment System and the New Supplier Development Management System for Production
Materials, which place normative regulations on the entire process from supplier ad-
mission to evaluation, assessment, and review. In 2023, we formulated the Cosmetics On-site guidance
Procurement Management System to further standardize the procurement process,
Before the rst batch of products are produced, we conduct on-site guidance to clarify stan-
supplier admission, review procedure, and standards for cosmetic products, ensuring dards for production management personnel and address issues related to the application of
that cosmetic products are procured in compliance with company standards. quality standards in actual production.
Quality testing
When products are released by OEM/ODM suppliers, we require them to conduct quality
Supplier management Supplier admission inspections and provide the test results.
process >
Based on new requirements arising from business operations, the ProcurementDe-
We conduct quality inspections to ensure that outsourced products meet our standards.
partment makes a request for developing new suppliers as existing resources are
unable to meet the demand.
The business proles of new suppliers are reviewed to select the most appropriate Random inspection
potential supplier, and then on-site audits are arranged. Suppliers are scored and
We conduct random inspections based on quality standards and perform on-site reviews in
then admitted according to the evaluation standards for new suppliers. response to market feedback.
Supplier evaluation
In terms of supplier ESG management, we consider environmental, labor, and ethical
We evaluate the performance of suppliers semi-annually, which is initiated by the factors in supplier admission and review. The assessment indicators involved in this
Procurement Department and carried out in collaboration with the Quality Manage-
ment Department and the Price Review Department. During the process,suppliers process include compliant employment, employee training, trustworthy operation,
are scored and graded into A, B ,C, and D both on the SRM platform and through of- and environmental management. In 2023, Proya evaluated 264 suppliers for their ESG
ine evaluation. The evaluation criteria mainly include product quality,delivery, price, performance with a pass rate of 100%, and conducted ESG compliance assessments
value-added services, and ESG management.
for all of our key partners.
To keep the supply chain stable, during the Reporting Period, we continued to facil-
Unqualified suppliers itate upgrades in automation, digitization, and intelligentization, enabling smooth
Based on the results of supplier performance evaluation, D-level suppliers are con- data and information ows between the production and demand sides and improving
sidered unqualied and will have their cooperation terminated after the Procurement the accuracy and agility of our response to market needs. Additionally, we have built a
Department lls out the Supplier Removal and Change Form,which must undergo well-covered and stable supply chain guarantee system that covers value assessment,
multiple levels of approval by superior organizations.
strategic planning, technology application, and business operations. Measures are
also taken to effectively improve supply chain resilience, including scientic forecast-
*Calculation formula for the proportion: RSPO-certified palm oil derivatives/all palm oil derivatives ing, early warning, and strict supplier management.
75 2023 Sustainability & Environmental, Social and
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ESG Management Practice Report 76
Sustainable procurement Proya is fully aware that our procurement activities have a signicant impact on the Measures and achievements of
environment and society. We need to take a holistic approach to examining our re- sustainable palm oil procurement > Work Achievement
sponsibilities across the entire value chain system. We consider the environmental
and social impact of the raw materials we use, and are committed to their responsible Identication Identied products involving palm oil or palm Proportion of RS-
and review oil derivatives PO-certied palm oil
procurement. Also, we actively guide and support our partners in implementing ESG
derivatives procured
management, helping them to reduce their own environmental and social footprint. Reviewed our use of RSPO-certied palm oil (by type): 40.40%
Proportion of RS-
Tracking Tracked the source of palm oil, required sup-
PO-certied palm oil
pliers to provide information on the origin of
Our sustainable procurement
measures >
Environment palm oil as well as RSPO certication creden-
derivatives procured
(by weight): 15.93%
tials, and added relevant information in the
internal system to enhance palm oil record
Prioritize the use of green and certified raw materials management
*Calculation formula for the proportion:
RSPO-certied palm oil derivatives/all palm
oil derivatives
We preferentially purchase eco-friendly raw materials, including sustainable forest certied pa-
per, palm oil, eco-friendly inks, coatings and glues.
Adjustment Gradually replaced palm oil with RSPO-certi-
For raw materials originating from Africa, we give preference to producers who have signed fair ed products
trade agreements.
Natural products are the core ingredients of Proya’s products. For punarnava root extract, tara
gum, and cupuacu butter, we give preference to suppliers who comply with the Nagoya Protocol.
In terms of forest products, the cartons of our hero products and new products all
Work with producers and suppliers to reduce environmental impact adopt FSC-certied paper. The retail warehouse of skincare products adopts FSC-cer-
We work with suppliers to improve the production process and reduce the environmental impact
tied zipper cartons. Proya Advanced Firming Nourishing Concentrating Mask 2.0 and
of the manufacturing process. Proya Original Repair Concentrating Mask 2.0 adopt FSC-certied lyocell ber fabric
to support sustainable forest development.
Requiring suppliers to establish an environmental management system
We also actively introduce natural and organic raw materials to provide consumers
All suppliers are required to sign the Business Code Compliance Commitment and commit to es- with more diverse product choices and meet the growing demand for sustainable con-
tablishing a complete environmental management system to improve resource efciency, reduce
industrial waste water, waste gases, and residues, as well as lower greenhouse gas emissions. sumption. During the Reporting Period, Proya Inaugurating Intensive Firming Cream,
Proya Inaugurating Anti-Wrinkle Essence, and Proya Inaugurating Anti-Wrinkle Eye
Cream adopted rambutan peel extracts that are certied by COSMOS and ISO 16128.
Society Proya Advanced Firming Nourishing Concentrating Mask 2.0 adopted vegan-certied
cotton fabric.
In the Business Code Compliance Commitment, we require suppliers to commit to adhering to
compliant employment practices, not employing child labor, not engaging in forced labor, and Moreover, we support suppliers in their ESG management to drive sustainable trans-
following fair and non-discriminatory employment principles.
formation across the entire value chain. In 2023, we provided ESG training for packag-
ing and raw material suppliers as well as OEMs and ODMs at the supplier seminar to
enhance their awareness of ESG management. Drawing on the experience of Proya, 9
Governance suppliers started to use recyclable cartons during the Reporting Period to reduce the
use of disposable cardboard cartons.
Suppliers must abide by the principles of integrity and transparency, and reject any form of
commercial bribery.
Palm oil is an important raw material in the cosmetics industry. We do not directly use
palm oil in the manufacturing of our products, but palm oil derivatives are included in
the raw materials we use. We are actively engaged in the management of palm oil de-
rivatives by prioritizing the procurement of palm oil derivatives certied by the Round-
table on Sustainable Palm Oil (RSPO). This effort enhances the sustainability of our
products and reduces their environmental impact. In 2023, we ofcially joined RSPO
and are now working to gradually replace palm oil in raw materials with RSPO-cer-
tied products.
77 2023 Sustainability & Environmental, Social and
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ESG Management Practice Report 78
Employee Responsibilities
Performance highlights Proportion of women in senior management Coverage of training for employees Employee communication An equal relationship in dialogs is benecial for establishing an efcient work mech-
anism and can encourage more employees to participate in the development and
23.53% 90.51%
operation of the company, thus enhancing their sense of belonging. We continuously
improve our communication approach with employees, listen to their opinions and
suggestions, and perfect corporate management to create an equal and open work-
place. Furthermore, we have established a labor union by signing a collective agree-
ment, and actively communicate with employees.
Employee rights and benefits
Employee communication channels >
Employee DingTalk, Fei- Face-to-face Employee satis- Smooth employ-
representative shu, and ofce communication faction surveys ee complaint
assembly automation between man- and touchpoint channels
Compliant employment In accordance with the Labor Law of the People’s Republic of China and the Labor platforms agement and surveys
Contract Law of the People’s Republic of China, we have established and implement- employees
ed the Employee Recruitment and Hiring Management System, the Compensation
Management System and other regulatory documents to protect employees from any
form of discrimination during the recruitment and management processes. During the
Reporting Period, we did not encounter any incident or lawsuit related to recruitment
and dismissal, working hours and vacations, promotion and equal opportunities, an-
ti-discrimination and diversity, or labor standards.
Employee benefits Attaching great importance to the benets of employees, we have formulated and im-
plemented the Benet Management Measures to provide employees with a rich and
complete benet package. On the basis of statutory benets, we also provide supple-
Policies of employment and mentary and special benets for employees. According to the document, we provide
fundamental rights of employees > Right Protection Measure Relevant Document special benets for employees working in factories, such as employee dormitories or
housing subsidies, free meals, as well as rewards for full attendance and long service.
Recruitment Principles: fairness, equity, transparency Em ployee Rec r uitment
In 2023, we provided free temporary accommodation for employees who had to work
and Hiring Management
Elimination of child labor: We ensure that job System overtime and live far from the ofce, aiming to reduce their commuting time and en-
applicants meet the legally required minimum sure they have enough time to rest.
age for employment during the recruitment
process.
Prohibition of forced labor: We promote exible
working hours, timely attendance recording, List of company benefits >
regular monitoring of work intensity, and work- Statutory benefits
life balance.
Statutory holidays, annual leave, and
Social insurance Housing provident fund
other statutory benefits
Dismissal We carry out dismissal procedures in strict ac- Employee Departure
cordance with labor regulations. Management Measures
Working We implement a standard working hours sys- Administrative Measures Additional benefits
hours and tem, with 40 hours per week. Overtime hours for Requesting Leave
vacations can be compensated with time off upon re-
Lunch allowance High temperature fee Physical exams and Annual travel, team building benefits,
quest. commercial insurance additional leave for employees
We provide paid annual leave, marriage leave,
Cash gifts for weddings and funerals, holiday, condolence payments, birthday gifts, etc.
bereavement leave, and other statutory holi-
days.
We provide parental leave, nursing leave, and
other types of leave according to local regula-
tions. Special benefits
Special benefits for
Elderly care benefits Special health benefits Temporary accommodation
Compensation We have established a fair and competitive Compensation Manage- factory employees
and benefits compensation system based on performance- ment System
driven principles.
We p r o v i d e s u b s i d i e s o r a l l o w a n c e s f o r
transportation, travel, and other expenses that
may var y depending on the job or position
requirements.
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Employee care As we continue to grow and employees have increasing needs, we are constantly up- We advocate for a balance between work and life. To keep this advocation, we imple-
grading our benet system to reward our employees for their hard work. To enhance ment a exible working hours system to give employees more freedom at work. The
the care for employees’ families, in 2023, we organized the “Paintings of Kids” art company is also equipped with leisure facilities such as a relaxation lounge and a t-
exhibition for employees’ children, and held an open day when employees’ children ness area. We encourage employees to form clubs and provide a fund of CNY150,000
were allowed to visit our facilities and experience hands-on production of makeup per year on average for clubs. In addition, we hold cultural and sports activities regu-
products. Furthermore, the labor union regularly organizes holiday events and other larly to enrich the vocational life of employees, enhance their happiness, and achieve
activities to enhance the sense of happiness and belonging among the employees a better work-life balance.
working at Proya.
Cultural and sports activities for
Employee care initiatives > employees (partial) > Events Description
Actions Measures
Youth for We organized a fun spor ts event including mixed tug-of-war,
Care for We set up a private, clean, and comfortable “mommy hut” for working Vitality, Sports 3-minute jump rope, mixed 100-meter relay, charades, and men’s/
Women moms, which is equipped with sofas, chairs, a refrigerator, wet wipes, for the Future women’s 4×400 meter relays. The event relieved work tension and
breastfeeding promotion guides, and posters, to provide a “home away improved employees’ physical tness.
from home” in the workplace.
On International Women’s Day, we presented our female employees with Sound of Proya We organized the 20th Anniversary Concert and streamed it live
“38” pink gift bags and launched the initiative “Gender Equality in the on the internet to share our accomplishments with employees and
Workplace.” pay tribute to those who have helped us grow better.
Charity for We organized an outdoor night hiking event for employees.
Employee The Logistics Departments of factories built “employee hubs” for employ-
Beauty
Hub ees, complete with furniture and facilities, which serve as comfortable rest
areas in the workplace. We invited a professional band to perform live at the Starlight Mu-
sic Festival titled “Singing the Beauty at Sunset.”
Psychological We invited a professional instructor to conduct a meditation and psycho-
Care logical stress relief lecture titled “Farewell to Workplace Anxiety, Start Photography We organized a travel season photography contest, encouraging
with Loving Yourself” to help employees accept their emotions, relieve Competition employees to capture beautiful moments in life with cameras.
negative emotions, and bid farewell to workplace anxiety.
“Power of Youth” We organized a badminton competition, including single matches,
Badminton Com- two-player fun matches, and six-player group matches, aiming to
Holiday We curate holiday celebrations to share happiness with employees, deliv-
petition enrich employee life and intensify team cohesion.
Events ering home-like warmth to them. The events we organize include present-
ing couplets on Spring Festival and roses on Valentine’s Day.
Internal We organized four company-wide multi-brand internal purchase sessions
Purchase to provide employees with cost-effective products. The sales amount ex-
Benefits ceeded CNY2.4 million.
81 2023 Sustainability & Environmental, Social and
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Occupational health and safety
Work safety Regarding work safety, we are committed to creating a safe and healthy working en- Progress of work safety >
vironment and ensuring the physical and mental health of employees to facilitate safe Safety design diagnosis
production. We strictly comply with the Labor Law of the People’s Republic of China
We entrusted a professional team to diagnose the safety design of the factory and develop
and the Work Safety Law of the People’s Republic of China, and establish work safety
an improvement plan, with the aim of continuously enhancing the safety of workplace for
goals. During the Reporting Period, we had no incidents of work-related casualties our employees.
and no re incidents.
Technological upgrade projects in workshops
Management goals > Avoid major casualties, fire or explosion incidents, and ensure that the The Huzhou skincare factory added a re monitor and a sprinkler system, and replaced
number of incidents causing minor injuries stays below three per year. re extinguishers in the warehouse to ensure the safety of buildings and employees.
Massive safety training for employees
We have established a sophisticated work safety management system that comprises All employees of the Huzhou factory attended the Zhejiang Provincial Work Safety Mass
Training for Employees, and were required to complete both online and ofine exams.
a line of regulatory documents, including the Production Safety Inspection and Poten-
tial Accident Identication and Elimination System, the Production Safety Education
and Training System, the Regular Safety Meeting System, and the Occupational Health Fire safety emergency drill
Management System. In addition, regular safety training and re drills are carried out
We organized a fire emergency drill to identify unfamiliarity with emergency response
to ensure the safety of employees.
plans and the use of protective equipment. Based on the results, we provided additional
training to enhance employees’ safety awareness and emergency response capabilities.
This training covered self-rescue and disaster relief skills for various types of accidents
Work safety management measures > and disasters.
Improve the management system
Prevention is the key. We regularly study the dynamics of work safety, and promptly address any
issues arising in production, as well as make wise and effective use of work safety funds to im-
prove working conditions and operating environments.
Occupational health We highly value the occupational health of our employees and comply with the Labor
We establish a robust safety organization network, improve the accountability system for work Law of the People’s Republic of China and the Law of the People’s Republic of China
safety positions, sign work safety responsibility agreements at each level, fully play our part in
on Prevention and Control of Occupational Diseases. We have established occupa-
work safety management, and eliminate unauthorized commands and operations.
tional health management objectives, as well as formulated and strictly implemented
the Occupational Health Management System. Those documents allow us to identify
Tighten process management
occupational health risks in the production environment, and take targeted measures
We strictly review and approve hazardous work to ensure that all necessary procedures are in to ensure the physical health of employees. During the Reporting Period, our skincare
place for it. We ensure that a detailed construction plan, written instructions, and safety pro-
factory passed the audit of ISO 45001:2018 Occupational Health and Safety Manage-
tection facilities are in place before hazardous work, and regular inspections are carried out to
identify and promptly correct any potential hazards. ment Systems , with zero occupational health cases occurring in the company.
We manage work safety records in a unied manner, conduct regularsupervision and inspec-
tions, and identify potential safety hazards in production. Zero occupational diseases; conduct regular occupational hazard
Health management goals >
We have established the Emergency Response Plan for Production Safety Accidents, which testing and occupational health examinations
species a complete safety incident emergency response system that covers organization, re-
sponse, post-incident disposal, specialized emergency response, and on-site handling.
Enhance safety education
We improve safety education proles for employees. All new workers must receive three-tier
Certification of the occupational
safety education and training, pass the exam, and sign the Safety Liability Statement before Expiration Date
health and safety management Certified Entity Certification
taking their posts.
system >
We organize the “National Work Safety Month” campaign every year. By organizing safety Skincare factory ISO 45001:2018 Occupational November 2021 -
activities, we enhance employees’ safety awareness, improve their safety skills, and promote a Health and Safety February 2025
culture of work safety. Management Systems
83 2023 Sustainability & Environmental, Social and
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Our occupational hazards mainly include dust and VOC gases. We provide compre-
Development of We are fully aware that Proya’s high-quality development depends on the growth
hensive protection for employees against occupational hazards in terms of environ- of talent. Seeing the capability enhancement of employees as a critical driver of our
mental and equipment safety protection, as well as personal safety protection.
human capital business development, we continuously empower employees to grow. Proya places
great importance on nurturing talent in schools. Therefore, we have formulated the
Management Trainee Development Program. Each year, we visit universities to conduct
Measures for the prevention of campus recruitment activities, bringing fresh blood into the company. We also invite
Environmental and equipment Personal safety protection
occupational hazards >
safety protection industry experts specializing in raw material development and research, product
design, and many other aspects to join us. The purpose is to create a pool of talent for
We prioritize the use of new technologies, We provide workers with protective equip- enhancing our competitiveness.
processes, and materials beneficial in ment against occupational diseases for their
preventing occupational diseases and personal use, and regularly conduct training
protecting workers’ health. on the proper use of personal protective Employee training In terms of employee training, we integrate internal and external training resources and
equipment to ensure that employees can provide personalized vocational training sessions for employees at different stages of
We use a dust and VOC collection system use them correctly.
development and with different skill enhancement requirements. In this way, we can
to remove dust and VOC gases from our
workshops. We carry out occupational health checks create a fully covered training and development system for employees. Furthermore,
for workers who may be exposed to oc- we strictly comply with the Regulations on the Management of Professional Skills
We set up on-site warning signs and bulle- cupational hazards before, during, and
tin boards and distribute protective gear
and have established the Management Procedures for the Grading and Certification
after their employment.
to our employees. of Professional Skills. This allows us to assess employees’ professional skills in a
Every year, we provide free health check- standardized manner while continuously optimizing our training system.
We regularly repair and maintain occu- ups for all employees. Additionally, we
pational health protective equipment, organize targeted health seminars to ad-
emergency rescue facilities, and other dress prevalent suboptimal health issues
occupational health protective items for among employees.
Training system >
Internal training
personal use.
Onboarding Training
Trainee: New employees
Training content: Proya’s history and culture, rules and regulations, and essential knowledge for
In addition, our labor union provides medical assistance insurance and organizes fre- employees
quent health training activities to ensure the health of employees.
Professional Training
Work progress of Proya’s labor Trainee: Key personnel in the business department and management trainees
union > Projects Results Training content: Brand marketing planning, research and development techniques
Medical assistance During the Reporting Period, the labor union provided 2,061 employ-
insurance ees with on-the-job medical assistance benets.
Promotion Training
During the Reporting Period, we held 4 health seminars, with 196 Trainee: Mid-level managers
Occupational
employees participating in total. The content covered rst aid Training content: Business mindset, management skills, leadership development training
health training
training, CPR treatment, shoulder and neck therapy, and other
related topics.
Routine Training
Medical service We invited doctors to provide on-site consultations in the company,
in the company facilitating employees to seek medical attention. Trainee: All employees
Training content: Business and management skill enhancement training
Executive Study Tour
We not only cared about the physical health of employees, but also their mental
health. We created a relaxing and enjoyable work environment for employees, and Trainee: Executive managers
Training content: Horizon expansion and strategic thinking improvement
provided them with frequent psychological support. During the Reporting Period,
we engaged a professional psychology instructor to conduct mindfulness meditation
training, helping employees relieve workplace anxiety and learn to embrace their
emotions. Meanwhile, we encourage employees to call the Echo Project helpline to External training
receive telephone counseling that can help them relieve their psychological stress.
Trainee: All employees who have passed the exam
Training content: Alibaba’s business training course to provide employees with comprehensive
business knowledge education
85 2023 Sustainability & Environmental, Social and
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ESG Management Practice Report 86
Furthermore, to ensure the implementation of our 6*N strategy, we have established We select talented individuals based on their virtue, ability, and performance, rather
the Proya Brand Academy, dedicated to nurturing more marketing talents for Proya. than purely on qualications and ranks. According to the requirements of the compa-
During the Reporting Period, we developed the Proya Brand Academy Operation and ny’s organizational structure, business opportunities, and the selection and examina-
Management Method and continuously enhanced training in leadership, expertise, tion results of the talent pool, employees with outstanding abilities and contributions
and general skills. Also, the focus was put on improving employees’ cross-departmen- are promoted exceptionally. We also have a mechanism for individual and team recog-
tal communication and team management capabilities. We carried out a satisfaction nition to honor outstanding employees and teams.
survey for the training of the Proya Brand Academy, and optimized the practicality,
format, and course design of the training based on the results. In 2023, the satisfac-
tion rate for the training held at the Proya Brand Academy increased to 95% (compared Mechanism for selecting outstanding
Frequency of Year
to 88% in 2022). individuals and teams >
selection
Award 3 special prizes, 6 team prizes, and 11 individual prizes
Courses available at the Proya Selection Based on contribution, business development scenarios, and capability
Brand Academy > Training Description Course mechanism
Selection Nomination by department > Review by the project team > Approval
General skill Regularly conduct profes- Structured Interview Techniques process by the General Manager’s Office > Holding of the award ceremony
training sional training courses to Cross-Departmental Communica-
enhance the professional tion
awareness and skills of em- Expressions in Work Reports
ployees. Department-Specic Communi-
cation and Exchange
Professional Quality and Practical Additionally, we have established a sophisticated talent review and job rotation mech-
Workplace Tools anism to expand employees’ knowledge areas and help them nd their direction of
career development. Furthermore, we have implemented a manager feedback pro-
Product Rene best practices from Core Management Theory for gram to assess the leadership of key leaders in business departments with the aim of
development work experiences to enhance New Product Launches
empowerment the professional skills of Core Concepts and Principles of
enhancing their leadership and cohesion.
training camp marketing talents. Marketing
Consumer Behavior and Product
Analysis
Principles and Tools of Concept
Development
Talent review
Conduct the talent review every July and December to review the needs for job ro-
Manager 2.0 Enhance the managerial Management Mindset Transfor- tation.
micro-consulting awareness and skills of mation and Capability Model
practical training emerging managers, broad- Situational Leadership
camp en their horizons, and intro- Team Motivation
duce new work philosophies Collaborative Inuence Employee communication
and practical experiences.
Understand employees’ perception of their new positions and performance expec-
tations, and reach a consensus with them.
In addition, we also encourage employees to further their education. In 2023, we Plan development
sponsored six employees to participate in the education improvement subsidy pro- Develop the job rotation plan based on the needs of the employees and relevant depart-
gram organized by the Hangzhou Municipal Federation of Trade Unions, aiming to ments.
promote their educational level. Submit the job rotation plan to the General Manager’s Ofce for approval.
During the Reporting Period, we conducted 53,607.75 hours of training in total, cover-
ing 90.51% of employees. The average training duration per person was 18.04 hours. Handover coaching
Prepare the handover checklist for the original position once the plan is approved.
Assign the direct supervisor of the new position as the counselor.
Employee performance In terms of employee promotion, we have formulated the Performance Management
evaluation and promotion Measures, the Personnel Management Measures, and the Internal Competition Pol- Performance evaluation
icies. These regulations adopt unified criteria for performance management and Set a three-month grace period, during which the original performance level and
assessment to ensure accessible performance evaluation standards, fair procedures, salary remain unchanged.
as well as transparent appointment and promotion of managers at all levels. We have
Conduct performance evaluation after the grace period, and determine the rank
promotion channels for management-oriented and expertise-oriented employees ac- and salary based on the actual conditions.
cording to the characteristics of the position, and provide employees with clear career
development paths.
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Community Responsibility
Performance highlights Number of people directly benefited 9 Number of people indirectly benefited10 Social welfare activities in 2023
>
233,000 247 (million)
Key socail topics Project Name Project Description Project Data
Mental health Echo Project Start date: October 2023 The public welfare lm Say ____ to Your
Emotions Right Now received 52.49
youth mental Project description: Proya produced the public million view counts with over 210,000
health campaign welfare lm Say ____ to Your Emotions Right discussions raised across all platforms.
Now , calling on everyone to embrace emotions
and pay attention to mental health. A total of 10,000 Echo Bookshelf pouch-
es were produced and distributed, with
Start date: October 2023 30,000 people attending the charitable
campus music project.
Social welfare We uphold the corporate mission of “enabling a beautiful and better life” and ad-
Project description: Proya partnered with Dejavu
vocate for the societal value of “beauty.” We focus on four key social topics: gender and 9 publishing houses to design a curated list A total of 100 teachers participated in
equality, mental health, youth and growth, and love and caring. Leveraging our brand of 11 selected books, as well as produce and the teacher training workshop, and 400
inuence and expertise, we issue initiatives, take action, and join hands with partners distribute Echo Bookshelf blind boxes, hoping students and teachers attended the
readers can learn to embrace emotions through campus lecture.
to build a better life. In 2023, the social welfare activities promoted by Proya directly reading.
beneted 233,000 people and indirectly beneted 247 million people. The public welfare hotline received
Start date: October 2023 1,482 calls.
Project description: Proya collaborated with
Tencent Music to launch the “Let Emotions Talk”
Social welfare activities in 2023
>
public campus concert. This spiritually curative
event included 1 public welfare song, 1 public
campus concert, 30 campus pop-ups, and 4 free
Key socail topics Project Name Project Description Project Data lectures.
Gender equality “It’s Gender, Not Start date: March 2023 A total of 110,000 copies of the picture Start date: October 2022
Border” book We Can Do It were printed and
Project description: Proya distributed the gender distributed. Project description: Proya maintains the op-
special campaign education picture book We Can Do It , aimed at eration of the public welfare initiatives jointly
expressing the idea that we can all break free launched with the China Youth Development
for International The Proya Public Welfare Service
from gender biases and stereotypes, and become Foundation, which included 1 teacher training, 1
Women’s Day mini-program provided legal advice to
the people we want to be. parent-child game, and 1 campus lecture.
966 people, including pro bono legal
consultation services to 87 people.
Start date: March 2023 Start date: October 2022
The short video “She is the Captain”
Project description: Proya partnered with Beijing received more than 6.77 million view Project description: Proya maintains the long-
Qianqian Law Firm to launch the Proya Public counts and over 680,000 discussions term public welfare hotline built in collaboration
Welfare Service mini-program, which provides across all platforms. with the Beijing New Sunshine Charity Founda-
practical legal assistance to workers facing gen- tion, providing a safe place for those who seek
der bias in the workplace. an inclusive and secure channel to speak.
Start date: March 2023 Youth and growth Firey Project Start date: September 2023 The anti-bullying helpline provided free
psychological counseling for 353 victims
Project description: Proya collaborated with the of school bullying and their families,
Project description: Following the principle of Anti-School-Bul-
Beijing New Sunshine Charity Foundation to set including pro bono legal consultation
telling genuine “her stories,” Proya found a story lying Campaign services provided to 27 victims.
about a Tibetan girl name PUBU Zhima who up the Glimmering Projectanti-school-bullying
became the captain of a freshman soccer team helpline. Coupled with distributing the It’s Not
Your Fault: A Healing Guide for the Aftermath The public welfare short lm received
at Nankai University. Then, Proya produced the
of School Bullying and producing the Aftermath more than 44.14 million view counts
short video “She is the Captain” to show the across all platforms with over 62.11 mil-
courage and resilience of the young girl in the of School Bullying short lm, this initiative aims
lion interactive discussions.
face of prejudice. to promote everyone’s awareness of how school
bullying would affect our children, appeal for
A total of 15,000 copies of It’s Not Your
action against school bullying, and educate the
Fault: A Healing Guide for the Aftermath
public on preventive and responsive measures, of School Bullying were printed and
9
The number of people directly benefited is the number of people directly benefiting from the projects in which they are involved. so as to guarantee a healthy environment for distributed.
10
The number of people indirectly benefited is the number of people influenced by Proya’s projects, such as the number of people influenced by online campaigns and
children to grow.
related offline activities.
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ESG Management Practice Report 90
Social welfare activities in 2023
>
Key socail topics Project Name Project Description Project Data
Charitable events In 2023, we established the Proya Foundation with the mission of “enabling more
people to live a better life.” The foundation is dedicated to promoting educational
Youth and growth Stupid Genius Start date: November 2023 The micro lm received more than 87 development, facilitating social innovation, providing emergency relief assistance,
million view counts and over 650,000 and supporting employee volunteerism. During the Reporting Period, Proya donated
special campaign Project description: By producing a micro lm discussions across all platforms.
CNY6,402,300 to the foundation. At the same time, we leveraged the platform to car-
for Proya’s 20th titled Stupid Genius, the project pays tribute
ry out a series of employee volunteer activities.
anniversary to those hard-working and dedicated research-
ers, volunteers, inheritors of intangible cultural
heritage, and all individuals who hold unwaver-
ing faith and make unsung contributions at their
posts. On World Earth Day, we launched a campaign under the theme “Unleash the Power of Your
Actions for a Better Planet.” During the event, we advocated for environmental protection and
upcycling and hosted eco-friendly lm screenings to encourage employees to participate in
Love and caring Dare to Love, Start date: May 2023 The short video received more than environmental charity and low-carbon activities.
Dare To Not Love 21.79 million view counts and over
Project description: Proya collaborated with Ne- 460,000 discussions on all platforms. We initiated the “Hydromel Winter Warmth” program, in which 10 employees donated supplies
special campaign tEase Cloud Music to launch a special campaign for strays and participated in volunteer activities.
for Chinese Val- short lm for Chinese Valentine’s Day titled A total of 19,000 “Know Yourself in
entine’s Day Dare to Love, Dare To Not Love . As a trial of love Intimate Relations” test cards were
following the lead of music, this event was held distributed.
together with NetEase Cloud Music and JIN
Wenqi to present the love song “My Desired Furthermore, we are actively engaged in rural revitalization work by implementing the
Happiness.” We also invited ZHANG Ruonan to Opinions of the CPC Central Committee and the State Council on Comprehensively
shoot the music video for the themed short lm.
When it comes to the mysteries of love, we say Promoting Rural Revitalization and Accelerating Agricultural and Rural Modernization
“love is always there if you follow your heart and issued by the CPC Central Committee and the State Council. By purchasing agricultur-
dare to love and to not love.” al products, we support the rural revitalization efforts and economic development of
Yunhe County. During the Reporting Period, we purchased agricultural products
worth CNY192,000 from Yunhe County.
Mom is Not the Start date: May 2023 The short video received more than
Only One 22.208 million view counts and over
Project description: On Mother’s Day, Proya 250,000 discussions on all platforms.
Special Cam- continued to care about mothers and their
paign for Moth- physical and mental workload assumed for their
er’s Day families, appealed to everyone to recognize
mothers’ hardships and difculties in traditional
housework, and proposed the brand attitude
“Moms can take care of the family, but every
family member can do the same.” By means of
the TV commercial Mom is Not the Only One ,
the creative peripheral apron for the whole fam-
ily, creative posters, and the adapted children’s
song “Mom is Not the Only One,” we call on
every family member to not just see the merits
of mothers, but assume their responsibilities as
family members.
In addition, in 2023, Proya worked with Ta Foundation and Naloong (a cartoon IP) to
launch the “Stray Animals Winter Survival Program.” Together, we distributed 10,000
copies of Popular Science Handbook for Stray Animal Rescue and donated 5% of the
sales revenue from the Co-Branded Stray Cat Nest Gift Boxes to local rescue centers
in order to help more animals in need.
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Corporate Governance
Composition of the Board of
Directors and convening of the Convening of the Three Meetings
three meetings >
Performance highlights Total tax paid Increased by 4 shareholders’ meetings 6 meetings of the Board of Supervisors
CNY1,017.756 mn 54.18% 8 meetings of the Board of Directors 9 meetings of special committees of the
Board of Directors
compared to 2022
Social contribution per share Cash dividends per 10 shares
A total of approximately
heard in the three meetings
139 proposals and reports have been deliberated, read, reviewed or
CNY7.38 (tax included) CNY9.10 (tax included)
Corporate governance structure diagram
>
Corporate governance We comply with the Company Law of the People’s Republic of China, the Securities
Shareholders'
system Law of the People’s Republic of China, the Listing Rules of the Shanghai Stock
Meeting
Exchange, the Code of Corporate Governance of Listed Companies and other laws
and regulations. We have established our Articles of Association and other regulatory ESG Management
Strategy Committee Board of Supervisors
documents to continuously improve our corporate governance structure and compliant Committee
operation.
Compensation and Board of Board of Director’s Securities and Investor
Assessment Committee Directors Office Relations
We strictly follow the provisions of our Articles of Association in convening and hold-
ing shareholders’ meetings, treating all shareholders equally, and providing as much Chairman of
Nomination Committee
convenience as possible for shareholders to attend the meetings, allowing them to the Board
fully exercise their shareholder rights.
Internal Audit Audit Committee Chairman's Office Corporate Culture
Department Department
To further enhance the compliance of our corporate governance, in 2023, we revised
the External Investment and Operation Decision-Making System, the Working Pol- General
icies for Independent Directors, the Related Transaction Decision-Making Policies, Manager
the External Guarantee Decision-Making Management System, and the Raised Funds
General Manager's
Management System. We also newly issued the Rules of Procedures for the Meetings
Office
of the Board of Directors of Proya Cosmetics Co., Ltd., the Entrusted Wealth Manage-
ment System, the Accounting Firm Selection System, and other regulatory documents.
All shareholders, directors, supervisors, and senior management personnel were dil-
igent in carrying out their duties, exercised their rights and fullled their obligations
in accordance with the regulations, relevant rules, and procedures. The actual per-
New Brand Project Team
Overseas Project Team
Proya Brand Division
TIMAGE Brand Division
Division
Off & Relax Brand
Hapsode Brand Division
INSBAHA Project Team
Department
CORRECTORS Project
Anya Division
UZERO Division
formance of our corporate governance complied with the regulatory requirements
for listed companies issued by the China Securities Regulatory Commission and the
Shanghai Stock Exchange. We did not receive any documents from the regulatory au-
thorities imposing any administrative or regulatory measures on us.
Composition of the Board of
Directors and convening of the
Composition of the Board of Directors and the
three meetings > Board of Supervisors Research and Development Middle Platform Brand Middle Platform Supply Chain Middle Platform
Digitalization Middle Platform
5 directors on the Board of Directors 2 independent non-executive directors
Strategic Management Department Human Resources Department Finance Department Investment
3 executive directors 3 supervisors (including 1 employee
representative supervisor)
and M&A Department Legal Department Administration Department
93 2023 Sustainability & Environmental, Social and
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ESG Management Practice Report 94
Investor relations
Composition of the remuneration of directors and senior executives in 2023 (unit: CNY) Information disclosure and We fulll the obligation of information disclosure in strict compliance with the Compa-
>
investor communication ny Law of the People’s Republic of China , the Securities Law of the People’s Republic
of China, and other relevant laws and regulations to ensure that our information is dis-
Fixed Salary Variable Compensation
closed truthfully, accurately, completely, and timely, and that all investors have fair ac-
Total Annual Equity
Name Position
Sustainability Annual Bonus Compensation Compensation cess to our information. During the Reporting Period, we did not violate any regulations
Base Pay Position Pay Allowances
and Other Performance on information disclosure or investor rights, or face any penalties arising therefrom.
Compensation Bonus
We review the changes in relevant laws and regulations regularly and update our
HOU Chairman of the 240,000 240,000 672,000 300,000 1,863,873.33 3,315,873.33 0
Juncheng Board of management documents such as the Information Disclosure Management Policies of
Directors Proya Cosmetics Co. , Ltd. in strict accordance with regulatory requirements. Also, we
actively fulll our information disclosure obligations to ensure information is disclosed
FANG Director, 240,000 240,000 672,000 300,000 1,842,485.00 3,294,485.00 0 accurately. In addition, we organize directors, supervisors, and senior executives to
Yuyou General
Manager study relevant laws and regulations, including the Company Law of the People’s Re-
public of China, the Securities Law of the People’s Republic of China, and the Listing
HOU Director, 86,000 86,000 128,000 70,000 456,261.80 826,261.80 0 Rules of the Shanghai Stock Exchange , ensuring that their behavior complies with
Yameng Deputy General the legal requirements for information disclosure. Meanwhile, we have established
Manager
a well-covered information disclosure approval process. Information to be disclosed
outward must be reviewed and approved by the Board of Director’s Ofce to ensure
JIN Deputy General 120,000 120,000 264,000 220,000 1,832,090.00 2,556,090.00 0
Yanhua Manager the disclosure is compliant.
We are committed to giving equal opportunity to investors. To further protect the
WANG Deputy General 120,000 120,000 480,000 250,000 1,555,658.73 2,525,658.73 0 rights and interests of small- and medium-sized investors, we have formulated the
Li Manger, Board Investor Relations Management Policies of Proya Cosmetics Co. , Ltd. In addition, we
Secretary, and
Chief Financial actively communicate and interact with investors through various channels such as
Ofcer telephone, email, the SSE E-Interactive platform, performance briengs, investor sur-
veys, and online forums, aiming to enhance investors’ understanding and trust in the
company.
Investment communication
We have established a well-developed compensation and incentive system for our channels >
directors and senior executives. The remuneration for our directors and senior ex-
ecutives consists of xed salary and variable compensation. The amount of variable
compensation is determined by their annual performance. Particularly, we include
corporate sustainability performance as an indicator of variable compensation, and
Telephone Email SSE E-Interactive Performance Investor survey
link the remuneration of directors and executives with the progress of sustainability briefing
performance. This approach truly propels the achievement of our sustainable devel-
opment goals.
95 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
ESG Management Practice Report 96
In 2023, we actively communicated and interacted with investors through diverse per- Investor rights While striving for rapid and steady growth in both scale and nancial benets, we nev-
formance briengs and investor exchange events. In addition, we kept expanding our er forget to provide reasonable returns to investors based on our protability and the
communication channels with investors by operating investor relations accounts on needs for production, operation, and development. Therefore, we implement a pru-
professional nancial platforms such as Eastmoney, HiThink, and Snowball Finance. dent dividend distribution policy that guarantees stable and continuous dividends,
and rewards shareholders frequently.
Cash dividends over the past
three years > Year Dividends per 10 shares (CNY) (tax included)
Investor communication performance > 2021 8.6
We issued periodic
announcements 4 Interim announcements
92
2022 8.7
2023 9.111
We conducted
investor surveys and
6 Received
institutional
1500+
communication activities both investors
online and offline
We value our reputation, comply with commercial credit rules, and safeguard the le-
gitimate rights and interests of creditors as bestowed by laws, regulations, and our
Articles of Association. Based on the comprehensive analysis and evaluation of the
company’s and the industry’s operating conditions, on June 16, 2023, China Lianhe
Social recognition for our Credit Rating Co., Ltd. issued the 2023 Tracking Rating Report on the Public Issuance
information disclosure and investor Award Awarding Body
of Convertible Corporate Bonds by Proya Cosmetics Co., Ltd. The main long-term
communication performances >
Best Practice Award for Directors of Listed China Association for Public credit rating of the Company was “AA,” the credit rating of Proya convertible bonds
Companies in 2023 Companies was “AA,” and the rating outlook was “stable.”
China Tianma Award of Investor Relations The Securities Times
for Listed Companies The “social contribution per share” reects the comprehensive value created by the
Top 100 Companies Listed on the Main The Securities Times company for society and stakeholders. Our social contribution per share over the past
Board by Market Value three years is as follows:
China Sunshine Board Secretary Award for The Securities Times
Chinese Listed Companies
Annual Entrepreneurship Vanguard for The Securities Times
Chinese Listed Companies
Year 2021 2022 2023
IR Team with the Best Institutional Comein
Coverage 2023
Social contribution per share 7.24 7.18 7.38
Best Information Disclosure Award The 7th IRSC Chinese Outstanding IR (CNY)12 tax included
11
The cash dividends for the year 2023 include a proposed dividend of CNY9.10 (including taxes) per 10 shares
for the annual distribution in 2023, a cash dividend of CNY3.80 (including taxes) per 10 shares for the interim
distribution in the first half of 2023, and the amount for share repurchases through centralized bidding in 2023.
The total amount accounts for 45.98% of the net profit attributable to the shareholders of the listed company
in the consolidated financial statements for the year 2023.
12
Social contribution per share = (Net profit + Tax revenue generated for the country in the year + Wages paid
to employees + Interest on loans paid to creditors such as banks + External donations and value created for
other stakeholders Other social costs resulting from environmental pollution)/Total number of shares.
97 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
ESG Management Practice Report 98
Internal control In order to establish a risk management mechanism that facilitates the implementa- Our Internal Audit Department regularly conducts special audits and off-ofce audits
tion of strategies and promotes integrity, and to ensure the effective operation of this to strengthen the legality, compliance, and authenticity of our business activities.
system, we have formulated the Internal Audit Management Policies, the Internal Con- Rigid inspections are in place for key areas such as contract performance and related
trol Application Guidelines , and other regulatory documents. We also set up a mech- transactions. We also take measures to promptly address any violations or breaches,
anism in each subsidiary and business unit to optimize the internal control system thereby promoting continuous improvement in our business processes and operation-
and effectively manage and respond to internal and external risks. Those measures al systems. In 2023, the Internal Audit Department carried out 14 special audits and 10
ensure that we can operate with low risks and develop rapidly and healthily. During other audits. They timely communicated and conrmed with audited units about iden-
the Reporting Period, we revised the Internal Audit Management Policies to specify tied non-conforming items to ensure rectications were made. In addition, we were
the audit coverage and rene the audit procedure, thereby continuously raising the awarded the Top 30 Best Internal Control Award for Zhejiang Public Companies In
standards of audit. 2023 granted by the School of Management, the Institute of Finance and Accounting,
and the Academy of Global Zhejiang Entrepreneurship of Zhejiang University.
Under the guidance of the Internal Control Application Guidelines and the Internal
Audit Management Policies , we have established project-specic systems and proce-
dures for each business unit and functional department, so as to respond to market
demands rapidly. We pay specic attention to the timely identication and assessment
of ve major risk categories, including risks related to operational decision-making,
violation of laws and regulations, nancial report misrepresentation, threats to asset
14 10 TOP30
security, and fraudulent activities. We require the description of specic risk control special audits other audits Best Internal Control
objectives and measures for addressing these risks and enhancing our internal risk Award for Zhejiang Public
management efciency. Companies In 2023
99 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
ESG Management Practice Report 100
Compliance Operation
Investigate
The investigation team leader starts the investigation work.
Performance highlights Coverage of anti-corruption training Number of corruption lawsuits filed against
The investigation should be completed within 30 days from the date of receiving
participated by directors the issuer or its employees and already
concluded the report. It can be appropriately delayed for no more than 90 days if scheduling
an audit is difcult or major obstacles exist.
100% 0
Report
The investigation team issues a report and submits it to the General Manger’s Ofce
so the case can be handled according to company regulations.
Signicant cases need to be reported to the Audit Committee and the Board of Di-
rectors.
Cases violating national laws are handed over to judicial organs.
Compliance Proya considers compliance operation as the cornerstone of our stable development. Whistleblower protection measures >
Therefore, we have established and are constantly improving a robust compliance
management system management system. We actively identify compliance risks in production and opera-
Report-handling personnel keep the relevant information of the whistleblower and the spe-
cic content of the reported case strictly condential. The investigation proceeds without
tion processes, with a focus on anti-corruption, anti-bribery, environmental issues, and revealing the identity of the whistleblower. Unless otherwise agreed by the whistleblower,
the name, department, and contact information of the whistleblower are not disclosed un-
labor rights. der any circumstances.
We have a multi-level supervision and reporting mechanism. For internal reports, we
have established the Employee Monitoring and Reporting Management Policies. For Report-handling personnel who violate condentiality regulations or improperly perform
their duties will be punished severely based on the severity of the situation and its conse-
expert reports, we maintain diversified reporting channels such as the hotline and
quences. Where it constitutes a crime, they will be handed over to judicial organs.
email. We adopt a serious approach toward all reports, which are investigated under
the leadership of the Internal Audit Department.
No individual or organization is allowed to obstruct or suppress the whistleblower for any
reason, or take any form of retaliation against them. Those who retaliate against the whis-
tleblower or their family members, once veried, will be punished severely in accordance
with the relevant regulations of the Company. Where it constitutes a crime, they will be
Employee reporting and handling Register handed over to judicial organs in accordance with the law.
process >
The Internal Audit Department has a reporting ofcer to record all reported cases.
Where a reported case is proven to be true, those who caused the violator to be duly pun-
Accept ished and losses of the company to be recovered or reduced will be commended or reward-
The Internal Audit Department holds an internal discussion to verify the investigation ed according to company regulations as suggested by the Internal Audit Department. In
conditions and severity of the case. order to protect the whistleblower, the reward approved by the CEO should be issued in a
condential manner unless the whistleblower agrees otherwise.
Severe cases are reported to the deputy general manger, the general manager, the
chairman, or the Audit Committee.
Form an investigation team
The head of the Internal Audit Department forms the investigation team and ap-
points the leader for investigation.
All functional departments, business units, and subsidiaries assign personnel and
participate in the investigation if so required.
101 2023 Sustainability & Environmental, Social and
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ESG Management Practice Report 102
In order to enhance the efficiency of our compliance management system, during Anti-corruption and We place great emphasis on ethical standards in business operations and strictly
the Reporting Period, we transitioned from a “preventive” to a “strategic” legal ap- comply with relevant laws and regulations such as the Anti-Unfair Competition Law of
proach that is more professional, focused, and rened while standardizing legal affair
business ethics the People’s Republic of China , the Zhejiang Province Anti-Unfair Competition Reg-
management across all brands. We also continuously improve the awareness of com- ulations, the Bidding Law of the People’s Republic of China , and the Criminal Law of
pliance operation among employees by publishing legal journals, organizing themed the People’s Republic of China. Also, we have formulated the Management Measures
promotional activities, conducting legal seminars, and facilitating peer-to-peer legal for Anti-Commercial Bribery and Anti-Corruption, the Code of Conduct for Integrity,
exchanges and training. Proya’s 32 Articles , and other regulations to stem corruption from inside the company.
We have a well-developed corporate governance and internal control management
framework. An Audit Committee is established under the Board of Directors to coor-
Legal compliance training and
Work Achievements dinate and plan anti-corruption and business ethics management. The Internal Audit
promotion work >
Department is responsible for implementing anti-corruption and business ethics
initiatives. During the Reporting Period, we did not encounter any incidents of cor-
Publishing the We produced and released 5 issues of the periodical, covering
legal journal three main sections, which are “New Regulations,” “Hot Topic ruption, bribery, extortion, fraud, or money laundering, nor did we face any lawsuits
Proya Law Analysis,” and “Case Studies from the Legal Perspective.” The pur- arising therefrom.
pose is to comprehensively enhance employees’ awareness of risk
prevention.
We implement Proya’s 32 Articles and sign the Integrity and Self-Discipline Commit-
ment with employees to enhance their awareness of “honesty, integrity, and trustwor-
Themed We organized 2 offline interactive compliance publicity sessions thiness.” Additionally, we sign the Integrity and Self-Discipline Agreement with direc-
promotional for all employees as a part of the “4.26 Intellectual Property Day tors and senior executives, requiring them to abide by our business ethics standards.
activities Publicity Event.”
We organized the “Proya Transparency Promotion Week,” during In terms of procurement from suppliers and brand partnerships, we require all suppli-
which we developed and released the Code of Conduct for Integri- ers of raw materials and packaging materials to sign the Business Code Compliance
ty and the Proya Integrity Initiative.
Commitment , and brand promotion partners to sign the Cooperation Agreement in
We produced and played the Transparency promotion video and Integrity, while asking them to strictly adhere to anti-corruption and anti-bribery prin-
held a quiz with prizes for employees.
ciples. We also clarify the denitions of commercial bribery and penalties for violations
in procurement contracts. Suppliers who violate our anti-corruption principles will be
blacklisted. If a supplier’s actions constitute a crime, the supplier will be handed over
Legal seminars We organized 2 special training seminars on compliant employ- to the competent state organ to investigate their criminal liabilities. We also require
ment, which covered prevention and handling of legal risks in em-
ployment as well as employment management and risk prevention. procurement personnel to sign the Commitment to the Code of Ethical Conduct for
Procurement Personnel , so as to avoid the risk of bribery in the procurement manage-
We organized 8 intellectual property training sessions to enhance ment process.
our ability to protect our intellectual property and reduce the risk
of infringing on others’ intellectual property.
We have developed an audit plan for front-, middle-, and back-office operations,
We conducted 3 e-commerce legal compliance training sessions to en- which covers the procurement of raw materials and packaging, media procurement,
hance the compliance of e-commerce operations and management.
and inventory management. We also conduct anti-corruption and business ethics au-
dits in an orderly manner according to the plan. We aims to conduct a business ethics
and anti-corruption audit throughout our entire business processes and all operation-
Peer-to-peer We organized the legal team to attend multiple professional legal al points every three years. The focus is on areas of high business ethics risks, such as
legal exchanges training sessions provided by third-party experts. The training compliance audits for contract signing, nancial audits, and verication of sales re-
and training covered various topics such as advertising compliance training
and judicial interpretation of Civil Code contracts. bates and discounts. The purpose is to ensure the effectiveness of our anti-corruption
and business ethics management. We assess the risk level based on the audit results,
We organized and held the LCOUNCIL famous enterprise visit and and then develop further corrective and re-audit plans as necessary to minimize risks
exchange event titled “Proya’s Legal Empowerment and Value
Creation under the Optimization of Enterprise Functional Struc- of corruption and unethical business practices.
ture” for the legal affairs teams of more than 30 companies in the
FMCG industry. During the event, we shared with industry guests
our practical experiences in legal function management, e-com-
merce compliance, and intellectual property compliance.
103 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
ESG Management Practice Report 104
In 2023, we held multiple training sessions on anti-corruption and business ethics to Intellectual property
better educate directors, senior executives, employees, and suppliers on knowledge management measures > Protection of our intellectual property rights
related to anti-commercial bribery and anti-corruption, as well as to promote a culture When initiating a research and development project, we search for and review related intel-
of integrity. Examples of training sessions include the “Compliance with Business Eth- lectual property. Any project that may infringe on the intellectual property of others will be
subjected to a one-vote veto.
ics and Strengthening Integrity and Self-discipline” education event for directors and
key management; training related to business ethics standards and anti-corruption for In the process of an R&D project, we protect the intellectual property rights generated in the
all employees (including outsourced personnel and part-time employees), such as the R&D process in a timely manner.
Integrity Campaign Week; monthly compliance training for new employees and busi-
We actively carry out intellectual property registration, ling, application, registration and other
ness ethics training for suppliers. rights conrmation work.
In 2023, we held three training sessions on anti-corruption and business ethics, namely
the “Compliance with Business Ethics and Strengthening Integrity and Self-Discipline” No infringement on the intellectual property rights of others
education event for directors and key management, the “Business Ethics Standards and Before we initiate a new research and development project, proceed with new product devel-
Anti-Corruption” training for all employees (including outsourced personnel and part- opment activities, and import or export new technologies and products, we must conduct intel-
time employees), and business ethics training for suppliers. Our purpose was to better lectual property checks and searches to ensure we do not infringe on the intellectual property
rights of others.
educate directors, senior executives, employees, and suppliers on knowledge about
anti-commercial bribery and anti-corruption, as well as to promote a culture of integrity. We set uniform criteria regarding the use of software, fonts, and images across different busi-
ness units to eliminate potential risks of intellectual property infringement.
Anti-corruption and business Intellectual property publicity
ethics performance highlights We have established an Intellectual Property Training and Publicity Fund to carry out intellectu-
100% of existing suppliers signed the Commitment to Business Principles .
and social recognition > al property training and publicity annually.
We have formulated the Proya Compliance Guidelines for Audio and Video Production and
The makeup factory obtained the Sedex Members Ethical Trade Audits (SMETA) certication, Release , the Proya Compliance Guidelines for Music Playback in Livestreaming Rooms, and the
which covers labor standards, health, safety and working environment, environmental man- Proya Intellectual Property Compliance Guidelines in Exhibitions to enhance our awareness of
agement, and business ethics. intellectual property protection.
Protection of We strictly comply with the Patent Law of the People’s Republic of China , the Copy- During the Reporting Period, we organized 8 intellectual property training sessions,
right Law of the People’s Republic of China, and the Trademark Law of the People’s including 5 sessions provided by external experts and 3 internal sessions on legal
intellectual property Republic of China , and have developed a line of intellectual property management affairs. The topics involved covered patent mining and layout, patent intelligence to
rights regulations including the Intellectual Property Management Regulations. While pro- support R&D innovation, and guidelines for the compliant use of images. The training
tecting our intellectual property, we also ensure that we do not infringe on the intel- enabled us to better manage our intellectual property and heightened our awareness
lectual property rights of others. of respecting others’ intellectual property rights. Meanwhile, we applied for 47 new
patents and 95 registered trademarks, and were granted 41 patents of various kinds,
We have established an intellectual property management system to strengthen our 62 newly registered trademarks, 5 copyright registrations, and 21 copyright deposits.
intellectual property protection efforts by means of intellectual property planning and Those efforts help us protect our innovative achievements and various intellectual
management, risk monitoring and control, process and system development, profes- property rights.
sional talent development, and informatization tool availability. Meanwhile, we have
newly formulated the Proya Compliance Guidelines for Audio and Video Production We also combat illegal infringements through legal procedures. During the Reporting
and Release and the Proya Compliance Guidelines for Music Playback in Livestream- Period, our Proya brand took measures to combat online counterfeiting and unautho-
ing Rooms . Those documents are designed to regulate the compliant behavior in rized use of trademarks in ofine stores. This effort led to the ling of 48 cases, with 4
audio and video production and release conducted by business units, and eliminate cases already resolved through settlement. OR led 28 civil cases and Hapsode led
potential risks of intellectual property infringement. 236 cases. As a result, the legitimate rights and interests of the company and consum-
ers were properly protected.
105 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
ESG Performance Data Sheet 106
ESG Performance Data Sheet
Environmental data1
Disclosure Item Unit 2021 2022 2023 Disclosure Item Unit 2021 2022 2023
Number of incidents involving penalties for violating Incident Total amount of general waste generated 8 Tonnes 751.84 1267.63 1638.79
0 0 0
environmental protection laws and regulations
Discharge of general waste per CNY10,000 of Kilograms/CNY10,000 1.62 1.99 1.84
Power consumption2 Megawatt-hours 12,161.96 15,970.07 17,728.44
revenue
Total amount of hazardous waste generated 9 Tonnes 1.00 0.98 0.58
Total consumption of green electricity3 Megawatt-hours 3,838.99 8,318.95
Discharge of hazardous waste per CNY10,000 of
Electricity consumption per CNY10,000 of revenue Kilowatt-hours/ 26.25 25.01 19.91 Grams/CNY10,000 2.16 1.53 0.65
revenue
CNY10,000
Total consumption of natural gas Cubic meters 295,436.00 368,936.00 397,113.82 Total greenhouse gas emissions (Scope 1, Scope 2) Tonnes of CO2 e 8,426.86 7,933.90 7,420.89
Natural gas consumption per CNY10,000 of Cubic meters/ 0.64 0.58 0.45 Scope 1 greenhouse gas emissions10 11
Tonnes of CO2 e 1,360.77 1,015.54 2,054.66
revenue CNY10,000
Consumption of gasoline 4 Liters 291,954.00 52,620.00 86,678.73 Scope 2 greenhouse gas emissions10 12
Tonnes of CO2 e 7,066.10 6,918.35 5,366.23
Consumption of diesel5 Liters 42,614.00 39,903.00 69,948.07 Greenhouse gas emissions (Scope 1, Scope 2) per Kilograms CO2 e/
CNY10,000 of revenue CNY10,000 18.19 12.42 8.33
Total consumption of water Cubic meters 208,614.90 253,488.70 272,865.52
Scope 3 greenhouse gas emissions10 Tonnes of CO2 e / / 88,194.52
Water consumption per CNY10,000 of revenue Cubic meters/ 0.45 0.40 0.31
CNY10,000
Note:
Total consumption of recycled water Cubic meters 15,000.00 13,000.00 19,000.00
[1] The data for 2021 and 2022 covers the ofce building and R&D facilities at the Proya Headquarters, as well as the skincare and makeup factories at the Huzhou production base.
The data for 2023 covers ofce buildings at the Proya Headquarters, the skincare (including the newly constructed logistics center during the Reporting Period) and makeup factories
Proportion of recycled water in total water % 7.19 5.13 6.96 at the Huzhou production base. The current data covers all the main operations of Proya’s cosmetics business, excluding sales ofces in different locations.
consumption
[2] The electricity consumption includes the usage of outsourced electricity as well as clean energy. The growth of increase in electricity consumption in 2023 was caused by business growth.
Total consumption of packaging materials 6 Tonnes 21,424.34 27,524.98 418,867.60
[3]The total consumption of green electricity includes solar power and outsourced green electricity. The increase in green electricity consumption in 2023 was caused by our new in-
stallations of photovoltaic power generation equipment and purchased green electricity.
Consumption of packaging materials per Kilograms/
CNY10,000 of revenue CNY10,000 46.24 43.11 47.02 [4] In 2023, our visit activities returned to normal due to the removal of external factors. In addition, we purchased new gasoline cars, which caused an increase in gasoline consumption.
7 [5] In 2023, due to business growth, diesel consumption increased.
Total waste gas emissions Cubic meters 16,368,000.00 16,080,000.26 38,376,000.26
[6]The total consumption of packaging materials includes primary packaging, secondary packaging, and packaging accessories. In 2023, due to business growth, the usage of pack-
Total waste gas emissions per CNY10,000 of Cubic meters/ 35.33 25.18 43.10 aging materials increased.
revenue CNY10,000
[7] In 2023, the waste gas treatment facility for the cream production line in the skincare factory was ofcially launched, resulting in an increase in waste gas generation. This facility
Industrial waste water discharge Cubic meters 13,500.00 20,219.00 24,329.00 can effectively collect waste gas and dust generated in the production process, thereby reducing the emission of dust and organic waste gas.
[8] In 2023, the Company improved the scope of general waste statistics, which now includes household waste, general production waste, as well as recyclable waste such as card-
Industrial waste water discharge per CNY10,000 of Cubic meters/ 0.03 0.03 0.03 board, plastic lm, and plastic barrels. Data traceability was also implemented. After verication, the data for the past three years regarding general waste performance indicators are
revenue CNY10,000 based on the disclosed data in this year's report.
Chemical oxygen demand (COD) discharge in Kilograms 675.00 1016.00 1160.00 [9In 2023, the Company improved the scope of hazardous waste statistics and implemented data traceability. After verication, the data for the past three years regarding hazardous
waste water waste performance indicators are based on the disclosed data in this year's report.
COD emissions per CNY10,000 of revenue in waste Grams/CNY10,000 1.46 1.59 1.30 [10] In 2023, the Company conducted an inventory check based on ISO 14064 and passed the verication. The verication certicate is available in the "Carbon Verication Results" section.
water
[11] For the 2021-2022 period, carbon emissions were calculated for gasoline, diesel, and natural gas. The calculation method refers to the Ministry of Ecology and Environment's
Biochemical oxygen demand (BOD) (COD) Kilograms 135.00 172.00 242.00 "Calculation Method and Reporting Guide for Corporate Greenhouse Gas Emissions - Power Generation Facilities" (2022 revised edition). In 2023, the Company improved the scope
discharge in waste water of carbon emissions calculation for Scope 1, which now includes gasoline, diesel, natural gas, re extinguishers, and air conditioning refrigerants. Additionally, gasoline and diesel
consumption increased, leading to an increase in Scope 1 carbon emissions. The calculation factors for Scope 1 in 2023 are based on the relevant factors in the "IPCC National
BOD emissions per CNY10,000 of revenue in waste Grams/CNY10,000
0.29 0.27 0.27 Greenhouse Gas Inventory Guidelines."
water
[12] Scope 2 calculates the carbon emissions of electricity supplied by power grids. The electricity generated by photovoltaics and the green electricity purchased by the Company
Ammonia nitrogen (NH3-N) discharge in waste are not included in the calculation of carbon emissions. The method for calculating greenhouse gas emissions is subject to the Guidelines for Enterprise-Generated Greenhouse Gas
Kilograms 67.50 104.40 60.00
water Emission Calculation and Reporting by Power Generation Facilities (2022 revised edition) published by the Ministry of Ecology and Environment. Calculation formula for greenhouse
gas emissions: Electricity supplied by nation-wide power grid × Average emission factor on the nation-wide power grid. The electricity emission factor of MWh2021 is 0.5810tCO2/
Ammonia nitrogen (NH3-N) emissions (kg) in waste Grams/CNY10,000 0.15 0.16 0.07 MWh; that of 2022 and 2023 is 0.5703tCO2/MWh, which is the average emission factor on the nation-wide power grid specied in the Notice on the Reporting and Management of
water Greenhouse Gas Emissions by Enterprises in the Power Generation Industry for 2023-2025.
107 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
ESG Performance Data Sheet 108
Product and Customer Reasponsibility Employee data
Disclosure Item Unit 2021 2022 2023 Disclosure Item Unit 2021 2022 2023
Number of complaints received regarding products Incidents 310 2,120 3,925 Employment
and services
Number of employees1 People 2,844 3,177 2,971
Complaint resolution rate % 100% 100% 100%
Number of male employees People 642 751 877
Number of incidents involving violations of laws and Incident 0 0 0
regulations related to health and security in products and
services Number of female employees People 2,202 2,426 2,094
Total number of incidents involving violations of laws and Incidents 0 0 3 Number of employees aged 30 and below People 1,192 1,408 1,584
regulations in marketing activities (including advertising,
promotion, and sponsorship)1 Number of employees aged 30 to 50 People 1,612 1,723 1,338
Total number of incidents involving violations of regulations Incident 0 0 0 Number of employees aged 50 and above People 40 46 49
on product and service information and labeling as well as
voluntary principles Number of employees working in the Chinese Mainland People 2,844 3,177 2,971
Number of incidents involving violations of regulations Time 0 0 0 Number of employees working in Hong Kong, Macau, People 0 0 0
related to customer privacy protection Taiwan, and other countries or regions
Number of grassroots employees People 2,598 2,875 2,596
Note:
Number of mid-level managers People 231 285 358
[1] During the International Women’s Day promotion in 2023, Meiligu and Ningbo Tangyu were imposed with administrative penalties by the local market supervision and administra-
tion authority for mistakenly targeting the wrong audience when sending promotional text messages using a third-party tool, resulting in the accusation of “sending advertisements
without the consent of others.” We have organized relevant departments to comprehensively review and optimize the SMS marketing verication process to prevent similar incidents Number of senior managers People 15 17 17
from happening again.
In 2023, Meiligu was imposed with an administrative penalty by the local market supervision and administration authority for omitting some label text on the product promotion page Proportion of female employees in mid-level management 2 % 60.17 62.46 59.50
on certain e-commerce platforms, resulting in the accusation of “advertising with misleading content to deceive consumers.” We have organized relevant departments to compre-
hensively review and improve the process, and strengthen the supervision of marketing and promotion campaigns to prevent similar incidents from happening again.
Proportion of female employees in senior management 3 % 20.00 17.65 23.53
Number of R&D personnel 4 People 159 229 322
Supply chain management
Number of penalties for violating labor and employment Incident 0 0 0
laws and regulations
Occupational health and safety
Disclosure Item Unit 2021 2022 2023
Number of workdays lost due to occupational injury Day 0 0 0
Total number of suppliers1 Companies 604 730 791
Number of employees who have died as a result of work- 0 0
People 0
Number of suppliers from the Chinese Mainland Companies 599 724 782 related injuries
Proportion of employees who have died as a result of work- 0 0
Number of suppliers from Hong Kong, Macau, Taiwan, and Companies 5 6 9 % 0
related injuries
other countries or regions
Proportion of suppliers receiving environmental, labor, and % 17.88 30.41 33.38 Employee training and development
ethics assessments 2
Proportion of suppliers having passed environmental, labor, % 96.30 95.05 100.00 Coverage of training for employees 4 % 49.75 46.27 90.51
and ethics assessments 3
Proportion of male employees covered by training % 28.50 27.96 74.12
Note:
[1] The data of suppliers in 2022 covers suppliers of materials and services in the production stage as well as suppliers involved in ofine sales, but excludes suppliers related to brand Proportion of female employees covered by training % 55.95 51.94 97.37
marketing. In 2023, we further rened our statistical caliber. The statistical data of suppliers covers suppliers of materials and services in the production stage as well as suppliers in-
volved in ofine sales and brand marketing, but excludes brand ambassadors and KOLs.
Proportion of grassroots employees covered by training % 52.23 44.31 89.14
[2] Proportion of suppliers receiving environmental, labor, and ethics assessments = Number of suppliers receiving environmental, labor, and ethics assessments / Total number of
suppliers (end of the Reporting Period).
[3] Proportion of suppliers having passed environmental, labor, and ethics assessments = Number of suppliers having passed environmental, labor, and ethics assessments / Number
of suppliers receiving environmental, labor, and ethics assessments.
109 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
ESG Performance Data Sheet 110
Anti-corruption1
Disclosure Item Unit 2021 2022 2023 Disclosure Item Unit 2021 2022 2023
Employee training and development Number of corruption lawsuits filed against the issuer or Incident 0 0 0
its employees and already concluded during the Reporting
Period
Proportion of mid-level managers covered by training % 25.11 64.91 100.00
Coverage of anti-corruption training for all directors % 100 100
Proportion of senior managers covered by training % 0 64.71 100.00
Average duration of anti-corruption training received Hours 1.50 3
Average duration of training received by employees 5 Hours 19.31 17.40 18.04 by each director
Average duration of training received by male employees Hours 4.00 8.53 14.30 Coverage of anti-corruption training for all employees % 100 100
Average duration of training received by female employees Hours 23.77 20.15 19.61 Average duration of anti-corruption training received Hours 2.50 3.02
by each employee
Average duration of training received by grassroots
Hours 20.60 18.05 17.76
employees
Note:
Average duration of training received by mid-level managers Hours 6.03 11.51 20.47
[1] The data of anti-corruption training in 2021 is not calculated.
Average duration of training received by senior managers Hours 0 5.76 10.09
Employee turnover rate 6 % 26.79 28.83 43.86
Community and public welfare
Male employee turnover rate % 18.22 29.16 22.01
Female employee turnover rate % 29.29 28.73 53.01
Disclosure Item Unit 2021 2022 2023
Turnover rate of employees aged 30 and below % 27.35 34.16 36.49
Amount of investment in public welfare1 CNY10,000 370.60 143.46 866.12
Turnover rate of employees aged 30 to 50 % 26.61 25.01 53.44
Amount of charitable donation CNY10,000 370.00 143.46 850.14
Turnover rate of employees aged 50 and above % 17.50 8.70 20.41
Total duration of volunteer services 2 CNY10,000 0 285.00 765.00
Note:
[1] The data of employees only covers full-time employees bound by labor contracts at the end of the Reporting Period, and does not include outsourced personnel or part-time Note:
employees.
[1] Investments in public welfare include funds and materials donated by Proya to various community philanthropic and charitable activities. The decrease in the actual investment
[2] Proportion of female employees in mid-level management = Number of female middle-level managers / Number of mid-level managers (end of the Reporting Period). amount in public welfare in 2022 was caused by our changing the strategies for public welfare and charity investments, and also by the suspension of some charitable activities due to
external factors. Our involvement in community undertakings returned to normal in 2023, leading to an increase in the investment amount.
[3] Proportion of female employees in senior management = Number of female senior managers / Number of senior managers (end of the Reporting Period).
[2] In 2021, we did not carry out any offline volunteer services due to external factors. In 2022, the total duration of volunteer services increased because we organized employees
[4] Coverage of training for employees = Number of employees in this category trained during the Reporting Period (end of the Reporting Period) / Total number of employees in to provide volunteer services in the community. In 2023, we carried out volunteer services as usual, so the total duration of volunteer services continued to grow. Particularly, the
this category (end of the Reporting Period). Foundation and the Company encouraged employees to actively partake in volunteer services.
[5] Average duration of training received by employees = Total duration of training for employees in this category (end of the Reporting Period) / Total number of employees in this
category (end of the Reporting Period) In 2022, the training duration does not include anti-corruption training. In 2023, we adjusted the statistic scope of employee training to include
the data of anti-corruption training.
[6] Employee turnover rate = Number of employees in this category who left during the Reporting Period / Total number of employees in this category (end of the Reporting Period)
In 2023, Proya downsized our ofine business team and reduced the number of physical stores, resulting in an increase in the employee turnover rate.
111 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
ESG Performance Data Sheet 112
Company honors and social recognition
Title of Honor Awarding Body Title of Honor Awarding Body
National Intellectual Property Advantageous Enterprise China National Intellectual Property Administration Second China Top 100 Benchmark Smart Factories 2023 e-works.net.cn
Green Supply Chain Management Company 2023 General Office of the Ministry of Industry and Information Outstanding Case of Innovation in Anti-Infringement and Anti- Anti-Infringement and Anti-Counterfeit Alliance (CAASA)
Technology of the PRC Counterfeiting
No. 1 of Top 10 Enterprises in the Cosmetics Sector of China China National Light Industry Council MOKA Most Popular Employer Brand Among College Students Moka+, HKU Institute for China Business, HRflag
Light Industry (Universal Leaderboard)
The 20th People’s Ingenuity Brand Award People.cn
High-Tech Enterprise Department of Science and Technology of Zhejiang Province
Brand of China Cosmetics Industry (Facial Skincare) 2022 - Proya China Association of Fragrance, Flavor and Cosmetics Industries
Outstanding Practical Case of the Board Office of China Association for Public Companies
Listed Companies
Selected Upgraded and Innovative Cosmetic Product - Proya Double China Association of Fragrance, Flavor and Cosmetics Industries
Identified Future Factory and Intelligent Factory (Digital Workshop) of Division of Technological Innovation, Economy and Effect Brightening Essence
Zhejiang Province 2023 Information Technology Department of Zhejiang
Brand of China Cosmetics Industry (Facial Skincare) 2022 - Hapsode China Association of Fragrance, Flavor and Cosmetics Industries
Intelligent Factory of Zhejiang 2023 Economy and Information Technology Department of Zhejiang
Shopee 2023 Cross-Border Elite Brand Award - Proya Shopee
Provincial Industrial Design Center 2023 Economy and Information Technology Department of Zhejiang
2023 Super Growth Brand - Proya Cosmetic Newspaper
Third Prize in the Zhejiang First Intellectual Property The People’s Government of Zhejiang Province Outstanding Chinese Cosmetics Brand 2023 (Face Cream, Emulsion) - Proya Cosmetic Newspaper
Trademark Award
Outstanding Chinese Cosmetics Brand 2023 (Essence) - Proya Cosmetic Newspaper
Advanced Unit in Cosmetic Standardization of 2023 Secretariat of Zhejiang Provincial Cosmetics Standardization
Technology Committee
Upgraded and Innovative Cosmetic Product - Proya Double Effect Cosmetic Newspaper
Four-Star Headquarters Enterprise in Hangzhou Hangzhou Municipal Committee of the Communist Party of Brightening Essence
China and Hangzhou Municipal People’s Government
2023 Super Growth Brand - TIMAGE Cosmetic Newspaper
Honorary Title of Hangzhou “Kunpeng Enterprise” Hangzhou Municipal Committee of the Communist Party of
China and Hangzhou Municipal People’s Government Dark Horse Brand of the Year 2023 - Off & Relax Yi Beauty Lifestyle
Civilized Unit of Huzhou Huzhou Municipal Committee of the Communist Party of China
Huzhou Municipal People’s Government
Organizational Donations Prize in the Fourth Wenzhou Charity Award Wenzhou Municipal People’s Government
17th Top 100 Companies Listed on the Main Board by Market Value The Securities Times
China Tianma Award of Investor Relations for Listed Companies The Securities Times
China Sunshine Board Secretary Award for Chinese Listed Companies The Securities Times
Annual Entrepreneurship Vanguard for Chinese Listed Companies The Securities Times
Capital Market Value Ranking: Annual Return Award YICAI
Listed Company with High Quality Development The Times Weekly
IR Team with the Best Institutional Coverage 2023 Comein
Star Listed Company of 2023 Cosmetic Newspaper
113 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Indicator Index 114
Indicator Index
Index for Guidelines No. 1 for the Self-Regulatory Rules of Companies Listed on
the Shanghai Stock Exchange - Regulation of Operations (2023)
Term and Disclosed Information Report Section Term and Disclosed Information Report Section
8.1 Overview Environmental, Social, and Corporate Types, quantities, concentrations, and Emissions and waste
Governance System 8.9 4
destinations of pollutant emissions
8.2 Principles of operation Compliance Operation
Construction and operation of environmental Environmental Responsibility
8.9 5
protection facilities
8.3 Social responsibility planning and working Proya Sustainability Governance System
mechanism ESG Governance System Waste management, disposal, and recycling Emissions and waste
8.9 6
of discarded products
8.4 Social contribution per share ESG Performance Data Sheet
Voluntary agreements signed with N/A
8.9 7
8.5 Disclosure of corporate social responsibility Report Description environmental protection departments
report
8.9 8 Recognition from environmental protection Company Performance Highlights
8.6 1 Establishment of a social Environmental Responsibility departments Water Management
responsibility system Product and Customer Responsibility
Employee Responsibilities 8.9 9 Other voluntary information disclosures N/A
Community Responsibility
New, renovated, and expanded constructions N/A
8.10 1
or major investments
8.6 2 Shortcomings and issues in fulfilling social Marketing activities (including advertising, promotion,
responsibilities and sponsorship) as well as products and service 8.10 2 Violation of environmental laws and regulations N/A
information and labeling and corresponding penalties
8.6 3 Improvement measures and specific time We have developed corresponding 8.10 3 Major environmental lawsuits or seizure, freezing, N/A
schedule management regulations, and arranged detention, pledge, or mortgage of assets
training for relevant business departments.
8.10 4 Key pollutant discharging units N/A
8.7 Employee benefits Employee rights and benefits
Impact of newly enacted laws and regulations N/A
8.10 5
Comply with environmental protection laws, Environmental management system on the company
8.8 1
regulations, and industry standards
8.10 6 Major environmental protection events N/A
8.8 2 Environmental protection plan Environmental Responsibility
8.11 Environmental inspections Environmental Responsibility
8.8 3 Use of natural resources Resource conservation
8.12 Key pollutant discharging units Proya is not a key pollutant discharging unit
8.8 4 Disposal of pollutants Emissions and waste
8.13 1 Laws, regulations, and industry standards on Product and Customer Responsibility
product safety
8.8 5 Pollution control facilities Emissions and waste
8.13 2 Production environment and process Product and Customer Responsibility
8.8 6 Payment of taxes and fees related to Environmental management system
environmental protection Quality assurance mechanism and emergency Product and Customer Responsibility
8.13 3
response plan for product safety
8.8 7 Environmental safety of the supply chain Building a Responsible Supply Chain Other production and product safety Product and Customer Responsibility
8.13 4
responsibilities
8.8 8 Other environmental protection Environmental Responsibility Employee management system and measures Employee rights and benefits
8.14 1
responsibilities against violations
Prevention of occupational hazards and Employee Health and Safety
Environmental protection policies, Environmental Responsibility 8.14 2
8.9 1 complementary safety measures
objectives, and achievements
8.14 3 Employee training Employee training and development
8.9 2 Total resource consumption throughout the ESG Performance Data Sheet
year Protection of other employee rights and Employee rights and benefits
8.14 4
interests
8.9 3 Investment in environmental protection and Climate change mitigation and adaptation
development of environmental technology 8.15 Scientific ethics Innovations in research and development
115 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Indicator Index 116
Index for Global Reporting Initiative (GRI) Standards (2021)
Terms of Use GRI Standards Disclosure Item Section
Proya Cosmetics Co., Ltd. reports information in this GRI Index according to GRI standards for the period from January 1, 2023, to December 31, 2023.
2-23 Policy commitments Co-Founders’ Message
Reference to GRI 1 2-24 Embedding policy commitments Co-Founders’ Message
GRI 1: Foundation 2021
2-25 Processes to remediate negative impacts Compliance management system
2-26 Mechanisms for seeking advice and raising concerns Compliance management system
GRI 2: General
Disclosures (2021)
2-27 Compliance with laws and regulations Environmental Responsibility
Product and Customer Responsibility
GRI Standards Disclosure Item Section Supply Chain Responsibility
Employee Responsibilities
2-1 Organizational details About Proya Community Responsibility
Corporate Governance
Compliance Operation
2-2 Entities included in the organization’s Report Description
sustainability reporting
2-29 Approach to stakeholder engagement Stakeholder communication
2-3 Reporting period, frequency, and contact point Report Description
3-1 Process to determine material topics Identification of material topics
2-4 Restatements of information Report Description GRI 3: Material Topics
(2021) 3-2 List of material topics Identification of material topics
2-6 Activities, value chains, and other business Main Business and Sub-Brands
relationships Sustainable Value Chain: Sharing Beauty 3-3 Management of material topics Identification of material topics
Product quality and safety
Supply Chain Responsibility 201-1 Direct economic value generated and distributed Company Performance Highlights
ESG Performance Data Sheet
GRI 201: Economic 201-2 Financial implications and other risks and opportunities due Sustainable Business: Creating Beauty
2-7 Employees Employee Responsibilities Performance (2016) to climate change Climate change mitigation and adaptation
ESG Performance Data Sheet
201-3 Defined benefit plan obligations and other retirement plans Employee rights and benefits
2-9 Governance structure and composition Proya ESG Management Structure
GRI 2: General Corporate governance system
Disclosures (2021)
203-1 Infrastructure investments and services supported Community Responsibility
GRI 203: Indirect
2-12 Role of the highest governance body in overseeing the Proya ESG Management Structure Economic Impacts
management of impacts Corporate governance system (2016)
203-2 Significant indirect economic impacts Social welfare
205-2 Communication and training about anti-corruption policies Anti-corruption and business ethics
2-13 Delegation of responsibility for managing impacts Proya ESG Management Structure
and procedures
Corporate governance system GRI 205: Anti-
Corruption (2016)
205-3 Confirmed incidents of corruption and actions taken Anti-corruption and business ethics
2-14 Role of the highest governance body in sustainability reporting Proya ESG Management Structure
301-1 Materials used by weight or volume ESG Performance Data Sheet
2-16 Communication of critical concerns Stakeholder communication
301-2 Recycled input materials used ESG Performance Data Sheet
GRI 301: Materials (2016)
2-17 Collective knowledge of the highest governance body ESG Governance System
301-3 Reclaimed products and their packaging materials ESG Performance Data Sheet
2-19 Remuneration policies ESG Governance System
Corporate Governance 302-1 Energy consumption within the organization ESG Performance Data Sheet
GRI 302: Energy (2016)
302-2 Energy consumption outside the organization ESG Performance Data Sheet
2-22 Statement on sustainable development strategy Proya Sustainability Governance System
Proya ESG Management Structure
302-3 Energy intensity ESG Performance Data Sheet
117 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Indicator Index 118
GRI Standards Disclosure Item Section GRI Standards Disclosure Item Section
302-4 Reduction of energy consumption Resource conservation 403-4 Worker participation, consultation, and communication on Employee rights and benefits
GRI 302: Energy (2016)
occupational health and safety
302-5 Reductions in energy requirements of products Resource conservation
403-5 Worker training on occupational health and safety Occupational health and safety
and services
303-1 Interactions with water as a shared resource Resource conservation 403-6 Promotion of worker health Occupational health and safety
403-7 Prevention and mitigation of occupational health and safety Occupational health and safety
303-2 Management of water discharge-related Resource conservation impacts directly linked by business relationships
impacts GRI 403: Occupational
GRI 303: Water and
Health and Safety (2018)
Effluents (2018)
403-8 Workers covered by an occupational health and safety Occupational health and safety
303-3 Water withdrawal ESG Performance Data Sheet
management system
303-4 Water discharge ESG Performance Data Sheet 403-9 Work-related injuries ESG Performance Data Sheet
303-5 Water consumption ESG Performance Data Sheet 403-10 Work-related ill health Occupational health and safety
305-1 Direct (Scope 1) GHG emissions ESG Performance Data Sheet
404-1 Average hours of training per year per employee ESG Performance Data Sheet
GRI 404: Training and
Education (2016)
305-2 Energy indirect (Scope 2) GHG emissions ESG Performance Data Sheet
404-2 Programs for upgrading employee skills and transition Development of human capital
assistance programs
305-3 Other indirect (Scope 3) GHG emissions ESG Performance Data Sheet
GRI 305: Emissions
(2016) GRI 405: Diversity and 405-1 Diversity of governance bodies and employees ESG Performance Data Sheet
305-4 GHG emissions intensity ESG Performance Data Sheet Equal Opportunity
(2016)
305-5 Reduction of GHG emissions ESG Performance Data Sheet GRI 406: Non- 406-1 Incidents of discrimination and corrective actions taken Employee rights and benefits
discrimination (2016)
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant
waste gases ESG Performance Data Sheet GRI 408: Child Labor 408-1 Operations and suppliers at significant risk for incidents of child Employee rights and benefits
(2016) labor
306-1 Waste generation and significant waste-related Emissions and waste
impacts GRI 409: Forced or 409-1 Operations and suppliers at significant risk for incidents of Employee rights and benefits
Compulsory Labor (2016) forced or compulsory labor
306-2 Management of significant waste-related Emissions and waste
impacts
GRI 413: Local 413-1 Operations with local community engagement, impact Social welfare
GRI 306: Waste (2020)
Communities (2016) assessments, and development programs Charitable events
306-3 Waste generated ESG Performance Data Sheet
414-1 New suppliers that were screened using social criteria Supply chain management
306-4 Waste diverted from disposal ESG Performance Data Sheet GRI 414: Supplier Social
Assessment (2016)
414-2 Negative social impacts in the supply chain and actions taken Building a Responsible Supply Chain
306-5 Waste directed to disposal ESG Performance Data Sheet
308-1 New suppliers that were screened using Building a Responsible Supply Chain 416-1 Assessment of the health and safety impacts of product and Product quality and safety
GRI 308: Supplier environmental criteria GRI 416: Customer service categories
Environmental Health and Safety (2016)
Assessment 2016 308-2 Negative environmental impacts in the supply Building a Responsible Supply Chain
chain and actions taken 416-2 Incidents of non-compliance concerning the health and safety ESG Performance Data Sheet
impacts of products and services
401-1 New employee hires and employee turnover ESG Performance Data Sheet
GRI 401: Employment 417-1 Requirements for product and service information and labeling Product quality and safety
401-2 Benefits provided to full-time employees that are not provided ESG Performance Data Sheet Customer service and rights protection
(2016) to temporary or part-time employees GRI 417: Marketing and
Labeling (2016)
401-3 Parental leave ESG Performance Data Sheet 417-2 Incidents of non-compliance concerning product and service ESG Performance Data Sheet
information and labeling
403-1 Occupational health and safety management Occupational health and safety
system 417-3 Incidents of non-compliance concerning marketing ESG Performance Data Sheet
GRI 403: Occupational communications
403-2 Hazard identification, risk assessment, and Occupational health and safety
Health and Safety (2018) incident investigation
GRI 418: Customer 418-1 Substantiated complaints concerning breaches of customer ESG Performance Data Sheet
403-3 Occupational health services Occupational health and safety Privacy (2016) privacy and losses of customer data
119 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Indicator Index 120
Index for the United Nations Sustainable Development Goals (SDGs)
SDG SDG Target Report Section SDG SDG Target Report Section
Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, Charitable events Target 9.4: By 2030, upgrade infrastructure and retrot industries to make them sustainable, with Resource conservation
have equal rights to economic resources, as well as access to basic services, ownership and increased resource-use efficiency and greater adoption of clean and environmentally sound
control over land and other forms of property, inheritance, natural resources, appropriate new technologies and industrial processes, with all countries taking action in accordance with their
technology and nancial services, including micronance. respective capabilities.
Target 9.5: Enhance scientic research, upgrade the technological capabilities of industrial sec- Innovations in research and
tors in all countries, in particular developing countries, including, by 2030, encouraging innova- development
tion and substantially increasing the number of research and development workers per 1 million
Target 3.4: By 2030, reduce by one third premature mortality from non-communicable diseases Sustainable Social
people and public and private research and development spending.
through prevention and treatment and promote mental health and well-being. Ecosystem: Empowering
Beauty
Social welfare Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, Sustainable Social Ecosys-
irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status. tem: Empowering Beauty
Social welfare
Target 4.1: By 2030, ensure that all girls and boys complete free, equitable and quality primary Charitable events
and secondary education leading to relevant and effective learning outcomes.
Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by Emissions and waste
paying special attention to air quality and municipal and other waste management.
Target 4.7: By 2030, ensure that all learners acquire the knowledge and skills needed to promote Sustainable Social
sustainable development, including, among others, through education for sustainable develop- Ecosystem: Empowering
ment and sustainable lifestyles, human rights, gender equality, promotion of a culture of peace Beauty
and non-violence, global citizenship and appreciation of cultural diversity and of culture’s con- Social welfare
tribution to sustainable development.
Target 12.2: By 2030, achieve the sustainable management and efcient use of natural resources. Resource conservation
Target 5.1: End all forms of discrimination against all women and girls everywhere. Sustainable Social
Ecosystem: Empowering Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, re- Green packaging
Beauty cycling and reuse. Emissions and waste
Social welfare
Target 12.6: Encourage companies, especially large and transnational companies, to adopt sus- Report Description
tainable practices and to integrate sustainability information into their reporting cycle.
Target 6.3: By 2030, improve water quality by reducing pollution, eliminating dumping and mini- Emissions and waste
mizing release of hazardous chemicals and materials, halving the proportion of untreated waste
Target 12.8: By 2030, ensure that people everywhere have the relevant information and aware- Sustainable Value Chain:
water and substantially increasing recycling and safe reuse globally.
ness for sustainable development and lifestyles in harmony with nature. Sharing Beauty
Target 6.4: By 2030, substantially increase water-use efciency across all sectors and ensure sus- Water Management Target 13.3: Improve education, awareness-raising and human and institutional capacity on cli- Climate change mitigation
tainable withdrawals and supply of freshwater to address water scarcity and substantially reduce mate change mitigation, adaptation, impact reduction and early warning. and adaptation
the number of people suffering from water scarcity.
Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
Energy management Target 14.1: By 2025, prevent and signicantly reduce marine pollution of all kinds, in particular Green packaging
from land-based activities, including marine debris and nutrient pollution.
Target 7.3: By 2030, double the global rate of improvement in energy efciency.
Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, Employee rights and benets
including for young people and persons with disabilities, and equal pay for work of equal value. Target 15.2: By 2020, promote the implementation of sustainable management of all types of Building a responsible sup-
forests, halt deforestation, restore degraded forests and substantially increase afforestation ply chain
and reforestation globally.
Target 8.7: Take immediate and effective measures to eradicate forced labor, end modern slav- Employee rights and benets
ery and human trafcking and secure the prohibition and elimination of the worst forms of child Building a responsible sup-
labor, including recruitment and use of child soldiers, and by 2025 end child labor in all its forms. ply chain
Target 16.5: Substantially reduce corruption and bribery in all their forms. Anti-corruption and busi-
Target 8.8: Protect labor rights and promote safe and secure working environments for all workers, Employee rights and benets ness ethics
including migrant workers, in particular women migrants, and those in precarious employment. Building a responsible supply
chain
Employee rights and benets
Occupational health and safety
121 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Report Description 122
Report Description
The Proya Sustainability & Environmental, Social, and Governance (ESG) Report 2023 (hereinafter referred to as “this Report”) is
the fourth sustainability and ESG report released by Proya Cosmetics Co., Ltd. It outlines the principles and performance of Proya
Cosmetics Co., Ltd. in sustainable development and ESG governance in 2023, including environmental, social, and corporate gov-
ernance issues of concern to key stakeholders.
Basis of preparation Scope of the report
This Report is formulated based on Guidelines No. 1 for the Self-Regulatory Rules of Companies Listed on the Shanghai Stock Exchange - Regulation Scope of organization: This Report covers the cosmetics business of Proya Cosmetics Co., Ltd. and its subsidiaries. The statistical
of Operations (2023) released by the Shanghai Stock Exchange. It also references the Global Reporting Initiative (GRI) Standards (2021) and the Unit- scope of some data may vary. Explanations have been provided in the data section. For more details, please refer to the section
ed Nations Sustainable Development Goals (SDGs).
“Appendix: Scope of the report.”
Principles of reporting The abbreviations in this Report are dened as follows:
This Report applies the principles of the GRI Standards 2021 to ensure the quality and appropriate presentation of reported information.
Abbreviation Definition
Materiality Proya, the company, we Proya Cosmetics Co., Ltd.
We identify material topics that are important to stakeholders and the company, and present them as a focus of this Report. While reporting material
Skincare factory Proya Cosmetics Co., Ltd. Huzhou Branch
topics in this Report, we also consider the features of the industry in which we operate the company and the region we are located. For a detailed
analysis of material topics and the results, please refer to the “Identication of material topics” and “Stakeholder communication” sections in this
Makeup factory, Zhejiang Beauty Zhejiang Beauty Cosmetics Co., Ltd.
Report. Meanwhile, this Report prioritizes material topics related to the environment, society, and corporate governance.
Accuracy
We do our best to ensure the accuracy of the information in this Report. Particularly, the data caliber, calculation basis, and assumed conditions are
provided for the measurement of quantitative information to ensure that calculation errors will not mislead the users of the information in this Report.
For information about quantitative measurements and additional notes, please refer to the “ESG Performance Data Sheet” section of this Report. Data description
The Board of Directors warrants that this Report does not contain any false information, misleading statements, or signicant omissions.
The data and cases in this Report are based on the actual records or nancial reports generated during our operation.
Balance
The nancial data in this Report is presented in CNY. If there is any discrepancy between the nancial data and our annual nancial report, the annual
This Report reects objective facts and provides unbiased disclosure of both positive and negative information about the company. We have nancial report shall prevail.
searched on the Shanghai Qingyue Credit Database for the subject in this Report and did not nd any undisclosed negative events that should have
been disclosed during the Reporting Period.
Clarity Reliability assurance
This Report is released in both Simplied Chinese and English. This Report contains tables, diagrams, and a glossary of professional terms, which are
Proya promises that this Report does not contain any false information, misleading statements, or significant omissions. The board of directors of
used to help readers better understand the textual content of this Report. To facilitate stakeholders to access information more quickly, this Report
Proya assumes general responsibility for ESG management and reporting.
contains a table of contents and an index for ESG standards.
Quantification and consistency We have searched on the Shanghai Qingyue Credit Database for the information of Proya Cosmetics Co., Ltd. involved in this Report, and did not
find any negative environmental information.
This Report discloses key quantitative performance indicators and aims to provide as much historical data as possible. In this Report, indicators are
subject to consistent statistical and analytical methods in different reporting periods. Where any statistical and analytical methods are changed, they
will be fully explained as a note in the Report, so that stakeholders can perform meaningful analysis and evaluate our ESG performance and trends.
Contact us
Integrity
This Report covers the cosmetics business of Proya Cosmetics Co., Ltd. and its subsidiaries. For more details, please refer to the section “Appendix: If you have any questions about this Report or Proya’s ESG governance, please don’t hesitate to contact us using the following methods.
Scope of the report.” Contact address: No. 588 Xixi Road, Xihu District, Hangzhou City, Zhejiang Province, China
Email: proya-group@proya.com
Timeliness Tel.: +86-571-8735-2850
Website: www.proya-group.com
This Report is an annual report that covers the period from January 1, 2023, to December 31, 2023. We do our best to release the annual report as
soon as possible after the end of the reporting year, so that stakeholders will have information they need to make informed decisions.
Verifiability
The cases and data in this Report are based on the actual records or financial reports generated during our operation. The sources of disclosed data
and calculation processes are all traceable and can be used for third-party verification and inspection.
123 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Appendix: Scope of the report 124
Appendix: Scope of the report
Number Company Name Included in This Included in This
Report Number Company Name
Report
1 Proya Cosmetics Co., Ltd. Yes 26 Japan OR Yes
2 Proya Cosmetics Co., Ltd. Huzhou Branch Yes 27 Ningbo Tangyu Trading Co., Ltd. Yes
3 Proya Cosmetics Co., Ltd. Shanghai Branch Yes 28 Hangzhou Weiluoke Cosmetics Co., Ltd. Yes
4 Hangzhou Proya Trade Co., Ltd. Yes 29 Hangzhou Oumisi Trading Co., Ltd. Yes
5 Hanna Cosmetics Co., Ltd. Yes 30 Proya (Hainan) Cosmetics Co., Ltd. Yes
6 Anya (Huzhou) Cosmetics Co., Ltd. Yes 31 Singuladerm (Hangzhou) Cosmetics Co., Ltd. Yes
7 Yueqing Laiya Trading Co., Ltd. Yes 32 Proya (Zhejiang) Cosmetics Co., Ltd. Yes
8 Huzhou UZERO Trading Co., Ltd. Yes 33 PROYA PTE. LTD. Yes
9 Mijing Siyu (Hangzhou) Cosmetics Co., Ltd. Yes 34 PROYA BEAUTY MALAYSIA SDN. BHD. Yes
10 Zhejiang Meiligu Electronic Commerce Co., Ltd. Yes 35 PROYA PTE. LTD. No
11 Huzhou Chuangdai E-commerce Co., Ltd. Yes 36 PROYA BEAUTY MALAYSIA SDN. BHD. No
12 Hangzhou CORRECTORS Trade Co., Ltd. Yes 37 Hangzhou Luxiaotie Fitness Co., Ltd. No
13 Huzhou Keyan E-commerce Co., Ltd. Yes 38 Proya Europe SARL No
14 Hapsode (Hangzhou) Cosmetics Co., Ltd. Yes 39 Shanghai Zhongwen Electronic Commerce Co., Ltd. No
15 Hapsode Co., Ltd. Yes 40 Huzhou Niuke Technology Co., Ltd. No
16 Huzhou Hapsode Trading Co., Ltd. Yes 41 Hangzhou Wanyan Culture Media Co., Ltd. No
17 Hong Kong Keshi Trading Co., Ltd. Yes 42 Hong Kong Wanyan Electronic Commerce Co., Limited No
18 Hong Kong Xinghuo Industry Limited Yes 43 Ningbo Proya Enterprise Consulting Management Co., Ltd. No
19 Hong Kong Zhongwen Electronic Commerce Co., Limited Yes 44 Zhejiang Qingya Culture Art Communication Co., Ltd. No
20 Hong Kong Xuchen Trading Limited Yes 45 BOYA (Hong Kong) Investment Management Co., Limited No
21 Huzhou Younimi Cosmetics Co., Ltd. Yes 46 Hangzhou Yizhuo Culture Media Co., Ltd. No
22 Ningbo TIMAGE Cosmetics Co., Ltd. Yes 47 Guangzhou Qianxi Network Technology Co., Ltd No
23 Hangzhou TIMAGE Cosmetics Co., Ltd. Yes 48 Xuzhou Laibo Information Technology Co., Ltd. No
24 Ningbo Keshi Trading Limited Yes 49 Hubei Proya Technology Co., Ltd. No
25 Zhejiang Beauty Cosmetics Co., Ltd. Yes
125 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Carbon Footprint Verification Result 126
127 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Report Authentication Result 128
129 2023 Sustainability & Environmental, Social and
Governance (ESG) Report
Report Authentication Result 130