ESG Report 2024

94 Multi-Functional MVR System The existing MVR evaporation systems in the Company are used for pre-treatment of high-concentration wastewater during production processes. As the system's years of operation increase, the failure rate of the equipment rises. To ensure the stable operation of the Company's wastewater treatment system and reclaimed water system, we have constructed an additional multi-functional MVR system as a backup facility. The project was commissioned and commenced operations in July 2023. The Group has newly constructed a high-concentration water separation and 10t/d recycled concentrated alkaline project, which processes high-concentration water from the zero-discharge recycled water system for salt separation to achieve environmental governance and promote resource utilization in a virtuous cycle. Additionally, in this year, Workshop 407 has completed the amoxicillin mother liquor top washing water recovery project, increasing the recovery rate of amoxicillin mother liquor and reducing wastewater discharge through the reuse of top membrane water. The Group invested a 4,000m³/d high-concentration water fractionation and 10t/d caustic soda recycling project, which commenced trial operation in this year. The second phase, involving a 1,200m³/d sodium sulfate purification and 30t/d caustic soda recycling project, was expected to be completed and operational by March 2025. After implementation, the project is projected to achieve annual water savings of 830,000 m³ while reducing the stockpile of salt and the amount of acid and alkali purchased externally. The technological innovations of this project adhere to the principles of reduction, reuse, and resource recovery, achieving a win-win situation for resource recycling and environmental management. 10.5.2 Exhaust Gas Treatment Inner Mongolia Company generates air pollutants in the production process, including exhaust gas with a peculiar smell generated from sewage treatment process, exhaust gas generated from production process, phenylacetic acid exhaust gas generated from the fermentation process of phenylacetic acid recycling, smoke of coal-fired boiler and the exhaust gas emitted by the used motor vehicles. In regard to the various types of exhaust gas, Inner Mongolia Company has set corresponding treatment facilities and systems to undergo recycling or purification treatment, and has implemented organic exhaust gas treatment projects, so as to ensure that all exhaust gas have reached the national emission standard before being emitted. In order to ensure that the amount of emission does not exceed the legal standard, Inner Mongolia Company has formulated systems relating to pollutant monitoring. In addition to maintaining the automatic monitoring systems for relevant exhaust gases, the company has also engaged a third party monitoring institution to regularly monitor the gas from pollution sources in monthly or quarterly, so as to ensure that the emission of exhaust gas complies with exhaust gas pollution control standards such as the Emission Standard of Air Pollutants for Pharmaceutical Industry (GB37823-2019). During the Year, all outlet points for exhaust gas at the Inner Mongolia Company have completed monitoring according to the self-monitoring plan, in compliance with standards, and there have been no exhaust gas outlets exceeding limits. Environmental, Social and Governance Report 2024 The United Laboratories International Holdings Limited Waste heat recovery project High-concentration Water Fractionation and 10t/d Caustic Soda Recycling Project During the Year, Inner Mongolia Company launched a waste heat recovery project with a total investment of RMB45 million. The project employs advanced and mature external solid waste treatment technology to ensure efficient utilisation of biogas. It is expected to reduce solid waste generation by 6,600 tonnes annually and utilise approximately 14 million cubic meters of discarded biogas. Besides, it will produce over 60,000 tonnes of steam, save about 17,000 tonnes of coal equivalent (tce) annually, and reduce CO emissions by approximately 45,000 tonnes each year. 2