ESG Report 2024

5.3.2 Anti-Corruption and Anti-Money Laundering In addition to building an incorruptible culture and encouraging employees to be self-disciplined and abide by the laws, the Group has also implemented “The United Laboratories Anti-Fraud and Whistleblowing Management Policy” to combat all potential fraud in the Company. The Group's Audit Centre serves as the core department for business ethics and anti-corruption, responsible for the comprehensive monitoring and assessment of corruption risks throughout the Group. This includes key business processes, internal governance mechanisms, and the review of external partners, providing strong support for the company's development. The audit work is conducted on an irregular basis. When reports or clues on corruption matters are received, the Group will initiate audit procedures that encompass six stages: project initiation, preparation, implementation, reporting, follow-up audits, and documentation. Investigators will conduct in-depth analyses and investigations of the relevant matters, and impose corresponding penalties on the involved employees based on the investigation results and recommendations to ensure fairness and justice in the handling process. Any employees associated with malpractice behaviours, the management will impose corresponding internal economic and administrative disciplinary penalty regardless of whether the case constitute a criminal offence. If the case is serious, the Group reserves the right to terminate the labour relationship and pursue criminal responsibility according to law. In order to strengthen employees' awareness of business ethics and compliance with relevant laws, the Group regularly conducts training on laws and regulations and corporate rules and systems at least once a year. The training targets all employees and aims to enhance their professionalism and strengthen their ability to prevent legal risks. During the Year, the Group Legal Affairs Centre organised a total of 33 training sessions on compliance and business ethics, including compliance promotion standard training and new employee induction training. These sessions covered aspects related to the promotion of healthcare products and pharmaceutical products, with a cumulative total of 2,054 attendances. In addition, the Group's Legal Affairs Centre has conducted online and offline anti-corruption training through office platform system “Smart United Laboratories”, covering the topics such as compliance management for occupational crimes, risk prevention against commercial bribery in pharmaceutical companies, and occupational integrity and compliance risk management. The training was targeted to all employees and suppliers, with a cumulative total of 620 attendances. The Group reviews its anti-corruption policy in a timely manner and conducts annual audits. During the Year, the Group continued to adopt regulatory documents such as“The United Laboratories Anti-Fraud and Whistleblowing Management Policy” and the Integrity Agreement, and continued to implement a series of online anti-fraud thematic trainings, including relevant non-compliant behaviours and case studies, etc. These initiatives aim to enhance employees' and management's awareness of integrity in the workplace and increase vigilance against legal and regulatory risks. To effectively prevent the risk of money laundering, the Group has formulated the “The United Laboratories Anti-Money Laundering Management Policy” applicable to all subsidiaries and employees, aiming to prevent, monitor and combat money laundering. The Board of Directors, as the highest responsible entity for anti-money laundering management, while the Supervisory Board oversees the performance of the Board of Directors and senior management in anti-money laundering and providing recommendations for improvement. The Group's Finance Department, Treasury Department, and Credit Risk Department serve as the supervisory departments for anti-money laundering management and are responsible for the promotion and implementation of specific task. To ensure the effectiveness of anti-money laundering management, the Group will conduct inspections on a regular or irregular basis, and the results of the inspections will be linked to performance appraisals and management authorisations. Meanwhile, the Group will ensure the compliance and effectiveness of the anti- money laundering management through internal audits to ensure compliance and effectiveness in anti-money laundering management, with the Board of Directors will receive relevant audit reports on a regular basis. In addition, the Group has commissioned an external audit organisation to conduct an independent assessment of the anti-money laundering management to ensure its continuous and efficient operation. As for the business partners, the Group requires both parties to enter into the Incorruptible Cooperation Agreement, which itemises the integrity compliance that both parties shall comply with, and provides telephone, email and post complaint reporting methods to effectively reduce the risk of corruption and ensure the interests of both parties. During the Year, the Group was not involved in any cases of corruption litigation. 17 Compliance Training 33 sessions Cumulative Learning Attendance of Compliance Training 2,054 Cumulative Number of Attendances of Anti-Corruption Training 620 Whistleblowing and Confidentiality The Group provides various channels for employees or any of the Group’s partners to report corruption and malpractice, such as direct phone calls e-mails, post, or the whistleblowing channel on the online mobile office platform system “Smart United Laboratories”. All whistleblowing channels support anonymous reporting. Employees, suppliers, and business-related individuals can directly report unethical or dishonest behaviours to the Group’s Audit Centre. The Group has clearly defined the working principles of whistleblowing in “The United Laboratories Anti-Fraud and Whistleblowing Management Policy” to keep the whistleblowers’ identity confidential. Complaints or reports made in person should be interviewed by designated personnel in a secret location. All non-related persons are not allowed to participate, question or record the content of the interview. The principle of confidentiality should be strictly adhered to in the receipt, opening, registration, transfer, storage, and verbal handling of written complaints, as well as in the reception, answering, documentation, and recording of telephone complaints. All employees are not allowed to note down, copy, keep, hide or destroy reporting materials without authorisation. Other units and departments of the Group have no right to interfere or disturb the reporting and complaint matters, ensuring the impartiality of the investigation and the privacy of both the complainant and the respondent. In addition, the Group provides full protection to the whistleblowers. We will strictly combat all retaliatory actions if whistleblowers or their family members suffer from damage to person, property or other rights due to reporting. The whistleblowers is also entitled to inform his/her senior managers for timely protection. The entire reporting procedure is protected by law, and serious breaches of the rules will be referred to the judicial authorities. To encourage employees to report corruption or malpractices, the Group will commend and reward the complainant if the complaint is substantiated after investigation. The reward will be given to complainants whose identities have been verified upon the closing of the investigation. , Environmental, Social and Governance Report 2024 The United Laboratories International Holdings Limited