ESG Report 2018

EMISSION TREATMENT Proper treatment of the emission generated from production and operation has always been one of the most important parts of the enterprise management of the Group . For this reason , we have strictly complied with the Law of the People ' s Republic of China on the Prevention and Control of Atmospheric Pollution , Law of the People ' s Republic of China on the Prevention and Control of Water Pollution , Law of the People ' s Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste and other related laws and regulations . The Group is committed to forming a clear and complete emission management system , systematically treating discharges with the help of advanced treatment equipment , and is dedicated to the control and reduction of impacts of pollutants on the surrounding environment . WASTEWATER TREATMENT The complicated production process of intermediate and active pharmaceutical ingredients involves emissions of different kinds . As such , Inner Mongolia Company has implemented sewage treatment system that integrates biochemical , physicochemical , aerobiotic , and anaerobic feature to handle different production wastewater such as waste acid water , cloth washing water , phenylacetic acid waste water , crystallized mother liquor , circulating cooling water , and equipment cleaning water . Through the treatment process of “pretreatment + hydrolytic acidification + Upflow Anaeroic Sludge Blanket (UASB) + Cyclic Activated Sludge System (CASS) + catalytic oxidation + secondary sedimentation tank” operated by professional technicians, the daily treatment volume of waste water has reached 3 near 50 , 000m . According to the relevant national regulations , Inner Mongolia Company has signed an agreement with a legally - established sewage treatment company so that Inner Mongolia Company can send the treated water that was met the contractual requirements to the sewage treatment company for further treatment . In order to prevent environmental hazards caused by excessive discharge or improper treatment of pollutants , Inner Mongolia Company has established a comprehensive monitoring system . Through the online monitoring system of chemical oxygen demand (“COD”) and ammonia nitrogen ( “Nh - N” ) set at the general 3 outlet of wastewater , the related water quality data at the general outlet of wastewater could be uploaded to the Urban Environment Information Monitoring Center in real time , and the related data would be released on designated information platform at fixed time , which could greatly enhance the transparency of the wastewater discharge management of Inner Mongolia Company . In regard to the highly concentrated wastewater such as waste acid water , Inner Mongolia Company strives to reduce the pollution level of wastewater through conducting internal research and development and adopting advanced technologies and equipment . 8 Environmental, Social and Governance Report 2018 The United Laboratories International Holdings Limited

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