Case: Active response to risks posing to supply chain stability at Joincare Haibin

To ensure stable production and product quality and safety, Joincare Haibin takes various measures to address supply risks. In addition, Joincare Haibin has formulated a plan for selecting new suppliers for major raw materials and excipents as well as packaging consumables in drug production. For some raw materials that cannot be produced in-house, such as terbutaline and salbutamol sulfate, Joincare Haibin promptly switch to alternative suppliers to ensure stable supply. For the excipents such as sodium chloride, hydrochloric acid, sulfuric acid, disodium edetate and Tween-80, Joincare Haibin has two suppliers to ensure material supplies. In addition, Joincare Haibin has several suppliers for packaging consumables.

For the key consumables from exclusive suppliers, such as liquid filter elements, Joincare Haibin actively seeks for domestic and overseas resources, in a bid to mitigate potential production risks resulted from the exclusive supply of key materials. So far, Joincare Haibin already has three suppliers for the filter elements.

Case: Jiaozuo Joincare ensures supply chain stability

To guard against risks posing to supply chain stability such as lack of products and supply shortage from cooperative suppliers, Jiaozuo Joincare actively find solutions to mitigate the supply risks in an all-round way. Following the market dynamics, Jiaozuo Joincare will increase inventories in case of tight supply and other abnormalities. To avoid the supply failure of suppliers, Jiaozuo Joincare continues to tap into cooperation opportunities with new suppliers in various regions to diversify supply channels. To address product shortages, Jiaozuo Joincare attempts to find alternatives to ensure stable supply.

Case: Supplier training on quality assurance

Joincare’s holding subsidiary Livzon Group, together with its supply partners, is actively exploring ways for quality improvement. In December 2022, Sichuan Guangda held a quality control training for suppliers, which was actively attended by 30 suppliers of production materials, including suppliers of bulk medicinal materials, raw materials/auxiliary materials, and packaging materials. During the training process, Sichuan Guangda emphasized the contents such as acceptance criteria and usage requirements of commonly used traditional Chinese medicinal materials, supplier quality requirements, quality audit management procedures, quality agreement requirements, supplier rating schemes, EHS audit requirements, target management requirements of energy conservation and emission reduction, etc. Discussions were held on the summary of material quality issues. This training further improved the communication between the two parties and strengthened the suppliers’ understanding of the Company’s quality requirements, thereby helping improve the quality of the supply chain.