Recently, Sino-Securities Index Information Service (Shanghai) Co., Ltd. ("Sino-Securities Index") released its latest 2025 ESG rating results. Proya (603605.SH) was successfully upgraded from AA to the highest possible rating of AAA. The company has now held the top position in the personal care category for two consecutive years. According to official statistics from Sino-Securities ESG Ratings, in the latest rating cycle (20250430), only 62 listed companies received an AAA rating, accounting for approximately 1.1% of all A-share listed companies.
In addition, Proya not only successfully ranked TOP14 in the "Top 100 A-Share Listed Companies in ESG Performance 2025" released by Sino-Securities Index, but also ranked TOP1 in the "Top 20 A-Share Listed Companies in ESG Performance by Primary Industry 2025" list, which was released by Sino-Securities ESG based on the rating results of the 20250430 rating cycle and the primary industry classification standards, in the consumer staples industry. This further demonstrates Proya's leading position in sustainable development.
As a professional provider of index and index-based investment services, Sino-Securities Index holds official licensing for index compilation from the Shanghai, Shenzhen, and Hong Kong stock exchanges. Its ESG rating system integrates international standards with China's national context, offering a rigorous and comprehensive evaluation process, earning it a high level of authority and credibility in the market. Based on the core principles of ESG, Sino-Securities has established a nine-tier authoritative rating system ranging from AAA to C, covering all A-share listed companies and nearly 700 leading Hong Kong-listed companies.
The Sino-Securities ESG Ratings conduct a comprehensive evaluation of companies across three key dimensions: Environmental (E), Social (S), and Governance (G).
In 2024, Proya introduced eco-friendly refill packaging for five of its core products, including the Advanced Firming Nourishing Cream (Series 3.0) and the Elastic Brightening Youth Essence (Series 3.0). This move has cumulatively reduced 300 tons of plastic and 157 kilograms of aluminum, which is equivalent to cutting 938.23 tons of CO₂ emissions. Additionally, Proya conducted a full lifecycle sustainability assessment for the Elastic Brightening Youth Essence (Series 3.0), covering stages such as R&D, packaging, and production. The product achieved a comprehensive four-star sustainability rating. In addition, Proya partnered with "Wuyuzaisheng" to launch an offline empty bottle recycling campaign, which attracted 231 participants and successfully collected 317 used containers. Some product lines of the TIMAGE brand have replaced corrugated cartons with PP plastic recycling boxes , saving a total of 5 tons of paper. The green circulation boxes were used 1.25 million times throughout the year, representing a 55.8% year-on-year increase.
In terms of energy and certifications, Proya Huzhou factory was honored as a National Green Factory 2024, and obtained both the ISO 50001 Energy Management System certification and the Roundtable on Sustainable Palm Oil (RSPO) Supply Chain Certification under the Mass Balance (MB) model. In 2024, clean energy accounted for 46.66% of the company's total energy consumption. The factory's rooftop photovoltaic system generated 2,562.09 MWh of electricity annually, resulting in a carbon reduction of 1,500.36 tons. Additionally, Proya purchased 7,104 MWh worth of green certificates, equivalent to a further 4,160.1 tons in carbon reduction. Compared with 2021, the company achieved an 18.46% decrease in carbon emissions per unit (Scope 1 and 2) of product, fully demonstrating its commitment to sustainable and green development.
From 2022 to 2024, Proya invested a total of RMB 12.6845 million in social welfare initiatives. Through the Zhejiang Proya Foundation, the company supported causes such as education and rural revitalization, directly benefiting nearly 980,000 people through its public welfare programs. In 2024, Proya continued to focus on key social advocacy topics such as gender equality and mental health. Its initiatives directly benefited 314,900 people that year, while reaching an estimated indirect audience of 108 million. From 2022 to 2024, the company's social advocacy efforts cumulatively impacted about 473 million people indirectly.
In terms of employee development, the company provides equal employment and development opportunities for female employees, fostering a diverse and inclusive work environment. As of the end of 2024, women accounted for 69% of Proya's total workforce and held 60% of all management positions. The company also launched a new online training platform, "Proya E-Class", achieving 100% employee training coverage. In 2024, Proya conducted a total of eight specialized training sessions focused on sustainable development. The average training time per employee reached 17.51 hours. Additionally, employees contributed a total of 1,263 hours to volunteer service throughout the year, actively advancing the company's commitment to fostering a diverse and inclusive society.
In 2024, Proya's social contribution value per share reached RMB 9.06, representing a year-on-year increase of 22.76%. The company achieved 100% coverage in both employee business ethics training and anti-corruption training for board members. Throughout the year, there were no incidents of commercial bribery, major risk events, or lawsuits related to unfair competition.
In 2024, Proya held 2 general meetings of shareholders, 4 board meetings, and 4 supervisory board meetings. The company released 4 periodic reports and 58 ad hoc announcements. It also held 9 investor communication meetings (including earnings briefings, engaging with over 2,000 investors. All these has ensured a high level of transparency in the company's information disclosure. In 2024, Proya received several external honors, including the "Best Information Disclosure Award", "Listed Company Investor Relations Management Best Practice", and the "China Listed Company Investor Relations Tianma Award". Additionally, Proya earned an "A" rating from the Shanghai Stock Exchange for its 2023-2024 information disclosure performance, underscoring broad recognition of the company's regulatory compliance.
As an industry-leading role model, Proya has taken an innovative approach by closely linking the incentive-based compensation of its board members and senior management to the company's sustainability and ESG performance. The performance evaluation system incorporates sustainability metrics with a weighting of 8-10%, and includes a structured incentive plan spanning short-term (annual), mid-term (3-year), and long-term (5-year) horizons. This framework continuously motivates the leadership team to advance the company's ESG strategy, establishing a long-term governance-driven mechanism for sustainable value creation.
Notably, with its outstanding performance in the corporate governance (G) dimension, Proya has successfully been selected into the "2025 A-share Listed Companies Top 50 Best Practices in Corporate Governance (G) Dimension" list released by Huazheng ESG, becoming an industry benchmark for excellent practices in key dimensions of sustainable development.
Proya has consistently released 5 high-quality sustainability reports, using transparent information disclosure to share our ESG strategies, implementation pathways, and key milestones with stakeholders across society. The company is currently at a critical stage in the implementation of the strategic plan. Having already achieved solid progress through concrete initiatives in energy conservation and emissions reduction, employee development, and product innovation, Proya has built a strong foundation for sustainable growth. Looking ahead, Proya will continue to implement its sustainability initiatives while actively adapting our execution strategies in response to changes in the industry landscape. With a pragmatic approach, the company will drive the effective implementation of its ESG roadmap, consistently exploring new frontiers in green manufacturing, social responsibility, and corporate governance. Through long-term, hands-on practice, Proya aims to further deepen the value of ESG across all aspects of operations.
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