ESG Report 2024

39 The Group has established a comprehensive pharmaceutical preparation sales distributor or distributor management system, which is implemented by the Credit Risk Management Department to reduce the risk of bringing a negative reputation to the Group during the process. When selecting new dealers or distributors, the Group will evaluate the company's qualifications, storage conditions, business scope permits and other criteria, and sign sales contracts with qualified dealers or distributors. The storage conditions of dealers or distributors must strictly comply with the pharmaceutical storage conditions and requirements stated in the manuals for storage and use. At the same time, when quality problems emerge, they must cooperate with the Group to report and investigate the problem, collect evidence, and carry out follow-up work to guarantee the quality of products. The Group will establish archives with the cooperating dealers and distributors to completely record information, such as corporate qualification documents, signed contracts and inventory turnover. The collected data will be used for analysing, evaluating and rating dealers and distributors to effectively manage product sales. When conducting product sales activities, we require all staff at all departments to abide by relevant laws and regulations and ethics of the industry. All sales personnel must sign the Letter of Commitment for working according to laws and be committed to complying with national regulations as well as the regulations and rules of the Group being the “Sales Code of Conduct” and “Compliance Promotion Guidelines”, in order to eradicate any violation of regulations regarding sales and promotion, ensuring the Group only conducts responsible marketing. The Group’s sales teams cover all regions nationwide, and the management of sales personnel, including recruitment, performance appraisal, training and occupational safety are collectively handled and supervised by the Group’s Head Office. This ensures that all management and frontier promotion employees have received necessary training to achieve the same professional level so as to provide customers with the best service. During the Year, responsible marketing training was conducted for all sales personnel, focusing on the "Compliance Promotion Guidelines" and "Health food onboarding compliance training ". Through these trainings, our goal was to enhance the sales team's understanding of compliance requirements and improve their professional competence and sense of responsibility during the promotion process. During this training initiative, a total of 356 sales employees were trained, with a cumulative training duration of 217 hours. The training covered compliance guidelines, regulatory requirements, and Special considerations for health product promotion. Through these trainings, sales employees not only strengthened their understanding of regulations but also learned how to effectively promote products in special circumstances. We believe that through this series of training measures, the sales team's professional capabilities and compliance awareness will be further enhanced. During the Year, the Group did not receive any complaints or legal proceedings related to misleading or deceptive consumer advertising content. We will continue to provide ongoing comprehensive training opportunities for our sales staff to ensure that they are following best practices in their work to deliver high quality products and services to our customers. 7.2.2 Responsible Marketing Environmental, Social and Governance Report 2024 The United Laboratories International Holdings Limited Strive for continuous learning and improve personal comprehensive qualities. Approach work with initiative, enthusiasm and professionalism. Maintain a polite and respectful attitude towards customers. Summary of “Sales Code of Conduct” To strengthen employee management, regulate the behavior of sales personnel, and improve employee quality, the Group has formulated this policy. Comply with and uphold national laws, regulations, and policies. Adhere to the relevant rules and regulations established by the company. Show care for the company and have a passion for one's job. Familiarise oneself with the company's product knowledge and sales management system. Combine market analysis to identify the market positioning of products and enhance awareness of sales risk control, maximizing the promotion of company products for optimal profitability. During the course of conducting business, if sales personnel violate laws, regulations, or the company's established rules and regulations, and their actions harm the company's interests, penalties or termination of employment will be imposed based on the severity of the situation. Adhere to the principle of customer orientation and safeguard the collective interests of the company. Strictly prohibited to intentionally provide false market information or handle incidents beyond one’s authority. Depending on the severity of the situation and the losses incurred by the company, warnings or demotions will be given as disciplinary measures.