ESG Report 2025

10 Summary of Sustainability and Climate Compensation Linkage Management System Scope of Application The Group and all its subsidiaries and branches at all levels. Governance and Communication 1.The Board of Directors holds the highest decision-making and oversight responsibility for the Company's sustainability management, and is responsible for the final approval of this policy and its implementation plan, as well as for monitoring the effectiveness of its execution. 2.The Sustainability Committee is responsible for researching and formulating ESG strategies, targets and KPI systems, reviewing performance results, and providing professional recommendations to the Board and the Remuneration Committee. 3.The Remuneration Committee is responsible for formally incorporating ESG and climate KPIs into the executive compensation assessment system, determining the linkage mechanism and weightings, and making final decisions on the payment, reduction or clawback of compensation based on performance results. Compensation Linkage Mechanism 1.Short-term incentive plan: For eligible participants, a dedicated “sustainability performance” component shall be established within the annual performance bonus, with an overall weighting of not less than 20% of the total bonus. 2.Long-term incentive plan: ESG milestone targets (e.g., achievement of cumulative carbon reduction targets, launch of processes or products with environmental benefits) shall be incorporated into the grant and vesting conditions of long-term incentive instruments such as restricted shares and stock options. Indicator System for Incentive Plans 1.Core climate and environment KPIs: including greenhouse gas (GHG) emission intensity, energy/water consumption intensity, progress in green R&D and laboratory certification, etc. 2.Core social and governance KPIs: including number of major pharmaceutical quality and safety incidents (target: zero), GMP audit status, completion rate of due diligence on high-risk suppliers, retention rate of key R&D talent, number of major compliance and business ethics violations (target: zero), etc. Compensation Clawback and Reduction Mechanism In the event of major pharmaceutical safety incidents, significant environmental pollution, systematic data falsification, or serious compliance failures resulting from management's responsibility, the Board of Directors has the authority to claw back, reduce or cancel, in whole or in part, any performance-based compensation and long-term incentive gains already granted but not yet paid, paid but not yet vested, or even already vested, from the relevant personnel. 4.4 Stakeholder Communication The United Laboratories understands the close relationship between stakeholders and the development of its business. This ESG report was prepared with the participation of different stakeholders, enabling the Group to gain a clearer understanding of its level of management in environmental and social aspects. We attach great importance to communication with stakeholders and use a variety of channels to collect the views and needs of different stakeholder groups, so as to further review and improve our ESG performance. The United Laboratories International Holdings Limited 2025 Environmental, Social and Governance Report