ESG Report 2021

Superior supply chain management is the basis for management. Through the implementation of production enterprises to maintain stable and material supplier management procedures, the efficient production. The United Laboratories sees Group maintains a healthy and sustainable supply sustainable operation of the supply chain as a chain system. In terms of contract management, the prerequisite for ensuring business operations, and it Group's procurement contracts will enumerate items is also seen as a great opportunity to boost such as quality requirements of goods, delivery productivity. standards, delivery terms, intellectual property rights, and integrity clauses to guarantee the quality The Group has been persistent in optimizing the of suppliers' supply and lower the legal and social supply chain system, procurement process, and risks of the supply chain. supplier development, supervision, evaluation, and SUSTAINABLE SUPPLY CHAIN MANAGEMENT Realm Relevant Laws and Regulations Supply Chain Standards for Quality Control of Pharmaceutical Production Measures for the Supervision and Administration of Drug Production Civil Code of the People's Republic of China Measures for the Supervision and Administration of Circulation of Pharmaceuticals The Group has established a vertical integration of pharmaceutical ingredients, and then delivers them p r o d u c t i o n a n d o p e r a t i o n m o d e l o f to the Group's other production sites for the “pharmaceutical intermediates-bulk medicines- production of bulk medicines and finished products, finished products”. Inner Mongolia Company which are finally sold to end users through various purchases major raw materials for the production of channels. pharmaceutical intermediates and active Production and Operation Model 52 Environmental, Social and Governance Report 2021 The United Laboratories International Holdings Limited Raw Materials Bulk Medicine s Users Pharmaceutical Intermediates Finished Products