ESG Report 2025

35 The United Laboratories recognises that mitigating climate change requires systematic action and sustained resource commitment. Climate mitigation has therefore been integrated into both daily operations and long-term planning. Through multiple pathways such as technological transformation, energy substitution and resource circularity, the Group continues to advance carbon reduction efforts and reduce the carbon footprint of its operations. 6.3.1 Mitigation Measures Low-carbon Energy Strategy: Parallel Advancement of Green Power Procurement and Distributed Solar Deployment Steadily increasing the proportion of green power procurement. We regard green electricity procurement as an important lever for carbon reduction. During the Year, green electricity consumption at the Inner Mongolia Company's production base accounted for 9.7% of the base's total electricity consumption. We will continue to actively procure green electricity while taking into account cost and practical conditions, steadily increasing the share of green electricity. In line with the Company's quantified greenhouse gas emission reduction targets, we are committed to gradually raising the proportion of green electricity procurement and continuously stepping up the use of clean energy. Exploring market-based green electricity trading mechanisms. To optimise the cost of green power consumption, the Group actively studied the feasibility of participating in market-based green power trading through the electricity trading centre. This could reduce transmission and distribution fees, government funds and surcharges, thereby lowering the overall cost of purchased green power and supporting future expansion of green power use. Developing on-site distributed photovoltaic projects. In parallel with external procurement, the Group is also advancing the development of distributed photovoltaic systems within the plant area. A 20 MW distributed photovoltaic project developed with a third party is progressing as planned and is expected to be grid-connected in 2026. Upon commencement of operation, the project is expected to generate about 30,000 MWh of electricity annually. Key equipment upgrades: Replacing the traditional "motor + gearbox" drive mode with high-efficiency permanent magnet direct drive technology, significantly reducing transmission losses. Cooling tower fan retrofitting: Five cooling tower fans were retrofitted with permanent magnet direct drive variable frequency motors, replacing the original 160 kW industrial frequency motors and gearboxes. After the retrofit, the system can automatically adjust the air volume based on water temperature, achieving automated and economical operation, with an average power saving rate of 29.36% and annual electricity savings of 5,060 MWh. Harvest tank motor retrofitting: Five harvest tank motors were retrofitted with permanent magnet direct drive, achieving an average power saving rate of 19.8% and annual electricity savings of 1,380 MWh. Comprehensive phase-out of high-energy-consumption motors: The production base continues to phase out high- energy-consumption motors across all facilities. As of the end of this reporting period, 1,510 high-energy-consumption motors have been replaced, with a total replaced capacity of 27,132 kW. Through this measure, estimated annual electricity savings amount to 6,446 MWh. The phase-out of the remaining motors is progressing as planned. Production process innovation: Starting from core production processes, achieving fundamental energy savings through technical optimisation. Fermenter agitator optimisation: Upgraded the agitators of 10 fermenters to the patented FT2000 parabolic agitator. This technology optimises impeller design, improving gas-liquid mass transfer efficiency while reducing stirring resistance, achieving a power saving rate of 25% and annual electricity savings of 8,400 MWh. Waste acid water system waste heat utilisation retrofit: Retrofitted the heat exchanger and added a waste heat recovery device to extract waste heat from the condensate of waste acid water for preheating feed materials. This is expected to save 35,000 tonnes of steam annually, enabling cascading energy utilisation. Process Innovation to Drive Continuous Improvement in Energy Efficiency System energy efficiency optimisation: For high-power electrical equipment, dynamic reactive power compensation technology has been introduced to improve power quality. Adaptive low-voltage SVG dynamic compensation energy- saving devices have been installed on key equipment such as brine units and air compressor units. These devices collect current signals in real time and dynamically compensate for harmonics and reactive current, enabling multiple functions including harmonic filtering, overload protection, and dynamic power compensation. Continuous testing and verification show that the brine units achieved an energy-saving rate of 16.3%, while the air compressors achieved 17.8%. Together, these upgrades deliver an annual electricity saving of 7,390 MWh. The United Laboratories International Holdings Limited 2025 Environmental, Social and Governance Report