ESG Report 2025

30 Note: 1. Level of significance ： ： Handled through existing standard procedures ； ： Requires continuous monitoring ； ： Requires a dedicated management strategy and follow-up Acute – extreme heat Production bases, including production workshops, warehouse areas, office premises and outdoor workers. Risk/ Opportunity Type Affected Area 1 Level of significance Potential Financial Impact Impact on Business Model and Value Chain Physical Risks Business Model: Extreme heat substantially increases cooling demand. If combined with grid overload, it may lead to power restrictions and directly disrupt the rhythm of continuous production. Value Chain: High temperatures may affect the storage stability and transportation efficiency of raw materials, particularly certain biological raw materials, while also increasing pressure on fire and explosion prevention management across production base areas. Revenue Loss: If production is interrupted due to extreme heat or power restrictions, order deliveries may be delayed. Cost Increase: Cooling-related electricity costs may rise significantly and push up operating expenditure; spending on heat protection measures for employees and potential medical costs may also increase. Acute – extreme cold and cold waves Production bases and logistics network, including production equipment, pipelines, water supply systems and road transport. Business Model: Severe cold weather can sharply increase heating demand and may cause pipe freezing and rupture or equipment malfunction, resulting in unplanned shutdowns. Value Chain: Snow and icy roads may obstruct inbound raw material deliveries and outbound finished- product transportation, interrupting the supply chain and affecting timely delivery to customers. Revenue Loss: Potential production stoppages may reduce revenue. Cost Increase: Heating energy costs may rise, while equipment repair and replacement expenses, profit losses caused by stoppages, and emergency logistics and warehousing costs may also increase. Chronic – rising average temperat ures Production bases, particularly cooling system efficiency and site ecology. Business Model: Persistent increases in baseline temperatures may lengthen the annual cooling season and permanently raise baseline energy loads, thereby continuing to increase operating costs. Value Chain: Chronic changes in the regional ecological environment may affect the long-term quality and planting patterns of certain climate- sensitive natural or agricultural raw materials. Cost Increase: Annual total energy consumption and electricity expenditure for temperature- control equipment such as air- conditioning and cooling systems may rise structurally. Capital Expenditure: To maintain the same production efficiency, the Group may need to expand or retrofit cooling systems ahead of schedule. Chronic – water stress Regions where production bases are located, affecting overall water security. Business Model: Water scarcity or restrictions on water withdrawal may directly affect the utilisation rate of water-intensive production processes and threaten production continuity. Value Chain: Water costs may rise, and upstream supply chain participants, such as agricultural raw material suppliers, may also face water stress, leading to raw material cost fluctuations or supply shortages. Revenue Loss: Restrictions on water withdrawal may result in production capacity losses. Cost Increase: Water charges may increase, and raw material costs may also rise. Long- term Short- term Medium- term The United Laboratories International Holdings Limited 2025 Environmental, Social and Governance Report