ESG Report 2025

32 Enhanced operational resilience Production facilities, supply chain system and overall corporate strategy. Business Model: Investment in climate-adaptive infrastructure and resilient supply chains can enable the business model to better withstand physical disruptions and market volatility. Value Chain: By strengthening its own resilience and that of its collaborative supply chain, the Group can maintain supply stability during extreme events, thereby enhancing customer trust and long-term partnerships and reinforcing its position as a reliable partner. Loss Reduction: Greater resilience can reduce the risk of production interruptions caused by external grid power restrictions or municipal water shortages, thereby reducing gross profit losses from downtime. Lower Financing Costs: Stable operating performance and stronger risk management can help the Group obtain more favourable interest rates in debt financing and reduce interest expenses. Higher Asset Disposal Proceeds: Improved energy efficiency may support higher valuations of fixed assets upon subsequent replacement or disposal. The Group has developed a targeted strategic response framework based on the identified climate-related risks and opportunities. The table below outlines the strategic response directions for each category of risks and opportunities. Specific adaptation and mitigation measures will be elaborated in section 6.3 " Climate Risk Management " of the Report. Type of Risk/Opportunity Physical Risks Acute – extreme cold weather Chronic – rising average temperatures Response Strategy Acute – extreme heat Enhance the resilience of operations and the supply chain under extreme temperatures, with a focus on optimising energy dispatch, protecting employee health and maintaining production continuity. Strengthen cold-resilient infrastructure and emergency response arrangements for the supply chain to ensure winter production stability and logistics continuity. Treat climate resilience as a strategic investment, systematically identify weak points and strengthen them to build a robust organisation capable of adapting to multiple future climate conditions. Chronic – water stress Continue to promote water-saving technologies and water recycling, reduce water intensity per unit of product, and lower dependence on regional water resources. Tightening policies and regulations Closely track domestic and international climate policy and regulatory developments, prepare in advance for compliance requirements, and embed carbon reduction goals into medium- to long-term planning. Transition Risks Structural increases in raw material and energy costs Offset cost pressure through optimisation of the energy mix and improved production efficiency. Risk/ Opportunity Type Affected Area 1 Level of significance Potential Financial Impact Impact on Business Model and Value Chain Long- term Short- term Medium- term The United Laboratories International Holdings Limited Note: 1. Level of significance ： ： Handled through existing standard procedures ； ： Requires continuous monitoring ； ： Requires a dedicated management strategy and follow-up 2025 Environmental, Social and Governance Report