ESG Report 2025

Water is an indispensable resource for pharmaceutical production. The United Laboratories adheres to the management philosophy of “zero wastewater discharge, full resource recycling”, integrating water conservation and pollution reduction throughout the entire production process. The Group's “Energy Management System” also sets out clear provisions for water supply and usage management, covering requirements such as water metering, planned water use, quota assessment, and facility maintenance, and incorporates water consumption into the workshop bonus assessment system. Inner Mongolia Company has made a public commitment to maintain 100% reuse of production wastewater and not to discharge any production wastewater into the external environment. From 2018 to 2020, Inner Mongolia Company constructed a zero-discharge reclaimed water reuse system with a total treatment capacity of 37,000 cubic metres per day, built in three phases. All treated wastewater is reused in production and in the circulating cooling system, achieving a closed-loop wastewater cycle at source. This system employs advanced membrane treatment technology to deeply treat and recycle production wastewater, serving as the core infrastructure for achieving the Company's zero-wastewater-discharge target. During the Reporting Period, the zero-discharge reclaimed water reuse system treated 11.4 million cubic metres of water, significantly reducing fresh water intake while cutting pollutant emissions at source and protecting regional water environment quality. To ensure the long-term stable and efficient operation of the reclaimed water reuse system, the workshop implements refined whole-process control across three dimensions: process, water quality, and equipment. Parameters such as chemical dosing, membrane operating pressure, and backwash frequency are adjusted in real time according to fluctuations in influent water quality to keep the system under optimal operating conditions. Water quality at the influent and intermediate stages is regularly monitored to precisely control various indicators, enabling timely detection of anomalies and adjustments. Strict adherence to operating procedures is enforced, with real-time monitoring of core equipment parameters such as pumps, membranes, and dosing devices. Closed-loop management of inspections, maintenance, and record-keeping is implemented, forming a virtuous cycle of “operation – monitoring – maintenance – optimisation”. 7.2.2 Water resources management Based on the above system guarantees and refined management, the Company has achieved significant results in water resource management. In 2025, the total volume of purchased municipal drinking water was 5.8 million cubic metres, a decrease of 21% compared with 2024. The water supplier was Linhe Dongcheng District Tap Water Co., Ltd. of Bayannur City. During the Reporting Period, Inner Mongolia Company invested more than RMB25 million in water resources. The reclaimed water reuse rate remained at 100%, and the zero-wastewater-discharge target has been steadily achieved for five consecutive years. 45 Water Balance Diagram Sewage Treatment Workshop Sewage Water for Manufacturing Process Water Supply from Dongcheng District Water Supply Co., Ltd Drinking Water Reservoir Combined Heat and Power Plant All Workshops in Inner Mongolia Company Steam 3 23,223m /d Rate of Evaporation Discharge 3 23,223m /d Reclaimed Water with Zero Discharge The United Laboratories International Holdings Limited 2025 Environmental, Social and Governance Report