ESG Report 2018

INNOVATIVE PROJECT ON THE OPTIMIZATION OF WASTEWATER – THE RECYCLING OF D-ACID D (-)- 4 - Hydroxyphenylglycine ( D - acid in short ) is an important component of many antibiotics, such as amoxicillin , and hence is the crucial intermediate of the production of amoxicillin. During the production process , the condensed mother liquid of amoxicillin contains D - acid residue . D - acid wastewater contains a high concentration of COD and ammonia nitrogen , and hence belongs to organic wastewater that is highly concentrated and difficult to handle . In order to effectively reduce the concentration level of COD and ammonia nitrogen in the wastewater of amoxicillin mother liquid , Inner Mongolia Company has launched a project to recycle the D - acid in condensed mother liquid of amoxicillin during the Year . In the early stage of the project , the research and development team has successfully developed a reliable technology to recycle D - acid . Later on , with the transformation in many idling equipment in the factories and the joint efforts of different factories and departments , Inner Mongolia Company has completed the project rectification and has entered the stage of trial operation . After the project was officially put into operation , the concentration of COD and ammonia nitrogen in sewage treatment has shown a year - on - year reduction . The project has successfully reduced the overall pollutant concentration of sewage of Inner Mongolia Company , and has also effectively reduced the burden of the sewage treatment system , and reduced the operation cost of the production of amoxicillin. During the Year , Inner Mongolia Company continues to commission a third - party institution to conduct the monitoring of wastewater on a quarterly basis , and no excessive wastewater discharge was reported . In order to prevent underground water pollution caused by the “running, emitting, dropping, leakage” of wastewater in production process, Inner Mongolia Company has reduced the possibility of pollution through undergoing strict monitoring . Parameter/Pollutant Unit 1 Standard 2 2017 pH / 6 - 9 8.3 Ammonia nitrogen ( NH - N ) 3 mg/L < 20 3.01 Chemical oxygen demand (COD) mg/L < 300 177.88 1. The standard follows the "Wastewater Treatment and Acceptance Agreement" signed with the Linhe Dongcheng District Sewage Treatment Co., Ltd. of Bayannur. 2018 8.3 1.69 124.73 2. Since that Inner Mongolia Company has improved its data collection methods and calculated the average pollutant concentration of wastewater from the two sewage outlets during the Year, data of 2017 have been restated accordingly. 9 Environmental, Social and Governance Report 2018 The United Laboratories International Holdings Limited

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