ESG Report 2018

HEALTH AND SAFETY Production safety has always been the highest priority in the operation of the Group. We adhere to the objective of “Safety First, Prevention Upmost”, carefully enforce and implement the safety-related regulations, such as the Production Safety Law of the People's Republic of China and Law of the People's Republic of China on the Prevention and Treatment of Occupational Diseases , so as to prevent potential hazards from happening. The Group has formulated a well-established safety system, and has also established clear safety management principles and safety guidelines. The Group's occupational health and safety management system has successfully obtained the certification of OHSAS18001 : 2007 during the Y ear. Under the management system, each department has to strictly comply with the relevant regulations, regularly analyze the condition of work safety, figure out the dangerous factors and potentials risks, and hence to formulate improvement measures in safety issues. The person-in-charge of the production department or safety management personnel is responsible for conducting safety inspection and enforcing safety education to strengthen the employees' awareness of safety. In regard to the management of hazardous chemicals, the Group highly values the risks and damages brought by the maltreatment of hazardous chemicals. Hence, we strictly comply with the Regulation on the Safety Management of Hazardous Chemicals , formulating strict regulations in the areas of warehouse management, material safety management in warehouse and upon entering and leaving to monitor the storage and transportation of various types of chemicals. Inner Mongolia Company has also formulated strict procedures for hazardous waste treatment. Each type of hazardous waste has to undergo the process of harmless treatment to secure the health and work safety of employees. The Group has also developed treatment procedures for the issues of safety and work injures. In case of injuries, the procedures allow employees to promptly respond in an effective manner, so as to minimize the casualties and financial loss. For the injured employees, the Group strictly enforces the relevant provisions of wages, subsidies and fees related to work injury in accordance with the Regulation on Work-Related Injury Insurances to protect the basic rights and interests of our employees. During the year, there were no fatal accidents due to work at the production sites of the Group. In response to the country's policies focused on safe production, the Group organized a series of activities in June of the Year, which is the Safety Month, to deepen the employees' awareness towards safety. We organized various activities such as consultation on safety, which solved the employees' doubts towards production safety; an online q u e s t i o n c o n t e s t , wh i c h e n a b l e d employees to understand various safety regulations at anytime and anywhere; and a m i n i - e x h i b i t i o n a b o u t p e r s o n a l protection supplies, which taught the employees to wear the labor protection supplies in a correct way. In the meantime, we organized a safety training speech contest and safety drills to intensify the atmosphere of production safety, hence to greatly reduce the chance of accidents by making employees stay alert at all times. 27 Environmental, Social and Governance Report 2018 The United Laboratories International Holdings Limited

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