ESG Report 2025

37 The Group continues to strengthen the resilience of critical infrastructure. It carries out systematic risk assessments on core systems such as electricity, water supply and communications, and formulates reinforcement and retrofit plans based on the assessment results to ensure adequate tolerance and recovery capability during extreme weather events. We have established an emergency response plan system covering all types of critical facilities. For sudden incidents under different climate scenarios, it clearly defines the roles, responsibilities, and standardise procedures for personnel at all levels, ensuring that operators can carry out emergency responses in an orderly and accurate manner under urgent conditions. Similar specialised plans have been extended to cover the company's major production facilities and utility systems, with regular drills and evaluations conducted to continuously improve emergency response efficiency. In May 2025, strong winds caused two power outages on the Chenlian I Line. In response to these emergencies, operators acted swiftly, restoring power within a short time through operations such as closing the bus coupler switch and switching to backup lines, resulting in no impact on production. This case demonstrates the company's effectiveness in building power system resilience and emergency preparedness, while also providing valuable experience for the continuous optimisation of our emergency response plans. Tiered emergency response system: The Company has established an emergency response plan system covering various climate scenarios such as extreme heat, severe cold, heavy rain, and heavy snow, and regularly organises drills to verify the effectiveness of the plans. Each workshop develops specific plans based on its own risk characteristics, clearly defining response measures, division of responsibilities, and resource allocation procedures under different warning levels. Through regular drills and evaluations, the Company continuously improves emergency response efficiency and coordination capabilities, ensuring that production operations can be quickly restored in the event of extreme weather events. Seasonal risk prevention: In response to the risk of power curtailment during the summer peak electricity consumption period, the Company prepares off-peak electricity consumption plans in advance and uses the power demand side management platform to monitor real-time electricity loads in each workshop, optimising power dispatch. During high- temperature weather, infrared temperature measurement and inspections of critical equipment such as transformers and power distribution cabinets are intensified to prevent equipment failures caused by overloading. Before winter, each workshop conducts comprehensive inspections and insulation reinforcement of outdoor pipelines, valves, instruments, and other facilities to ensure safe equipment operation through the winter. Business Continuity Protection The Group has established a safety inventory warning mechanism for key raw and auxiliary materials such as coal, corn and glucose in response to transport interruption risks caused by extreme weather. For example, the coal inventory management plan of Workshop 503 classifies shortages into graded warning levels (Level I: Less than 7 days; Level II: Less than 5 days; Level III: Less than 3 days) and requires corresponding response actions, including daily inventory tracking, reporting to the company and the procurement department, coordinating with coal supply units to increase transportation capacity, and assigning dedicated personnel to stay at mines to expedite deliveries. This ensures that units can maintain safe and stable operation even when transportation is disrupted by extreme weather. This management mechanism has been promoted and applied in the company's procurement of key raw materials, effectively enhancing the supply chain's resilience to risks. The Group maintains long-term strategic relationships with key suppliers and signs long-term supply agreements to mitigate market price fluctuations. Climate resilience has also been incorporated into the supplier assessment system, with regular analysis of extreme weather risks in supplier regions and of the suppliers' own response capabilities. Alternative arrangements are prepared in advance for high-risk suppliers to ensure a diversified and sustainable supply chain. When extreme weather warnings are issued, the company proactively sends warning information to suppliers, assists them in making preventive preparations in advance, and issues purchase orders earlier or increases inventory levels as the situation dictates. Supply Chain Resilience Building The United Laboratories International Holdings Limited 2025 Environmental, Social and Governance Report