ESG Report 2025

In the global pharmaceutical and intellectual property landscape, drug innovation and access to medicines have long attracted widespread attention, as these issues directly affect the balance between public health and pharmaceutical intellectual property rights. In order to enhance the Laboratories' independent innovation capability and strengthen market competitiveness, we continued to invest in innovative research and development, established multiple R&D platforms and remained committed to developing and improving medicines to respond to changing market needs. At the same time, the Group actively promoted industry development by disseminating medical knowledge and practical experience through academic promotion initiatives. The Group continued to increase investment in R&D and innovation resources, established diversified pharmaceutical R&D platforms and focused on developing and optimising more high-quality and safe medicines to contribute further to the cause of health. Our R&D priorities cover innovative drugs and high-value generic drugs, with core areas including endocrine/metabolism therapies, autoimmune disease therapies, ophthalmic drugs and anti-infectives. Upgrading pharmaceutical manufacturing processes, technological advancement, environmental retrofitting and intelligent transformation also form important components of our R&D and innovation agenda. We strive to apply more advanced technologies to deliver safer, more effective and more affordable treatment solutions. 8.1 R&D and Innovation 8.1.1 R&D Platforms The United Laboratories has established multiple R&D platforms, including Biopharmaceutical R&D, Chemical Drug R&D, Biological Fermentation and Chemistry, Enzymatic Synthesis Research, Animal Healthcare R&D, and the Clinical Research Center. These platforms work collaboratively to carry out R&D activities. Each platform is equipped with professional scientific research teams and leading R&D equipment from both domestic and international sources, employing over 1,000 scientific and technical personnel who comprehensively cover the research and development of products and technologies in innovative drugs, generic drugs, animal healthcare products, intermediates and bulk medicines. The Clinical Research Center is responsible for the clinical research and development of all drugs/medical devices of the Group, including the formulation of development strategies and pathways, design of study protocols, organisation and implementation of trials, project management and monitoring, quality management and related work. It works closely with nearly 300 domestic institutions that possess national qualifications for drug clinical trials and are authoritative in relevant therapeutic areas, and under the guidance of renowned experts at home and abroad, has jointly organised and completed nearly 120 drug clinical trials. In addition, the Group also collaborates with well-known universities, research institutes and laboratories both domestically and internationally on drug R&D. 8.1.2 R&D Investment and Achievements The United Laboratories is committed to innovative R&D, continuously increasing resource investment and gradually raising the amount of R&D expenditure. During the Year, the Group invested RMB1,005 million in R&D, representing a 2% increase year-on-year. As at the end of the Year, the Group had 42 generic and new drug projects under development, of which 13 had entered the clinical stage, 4 had been submitted for production approval, 6 had been submitted for/obtained clinical trial approval, and 19 were in the pre-clinical stage. In addition, the Group has fully cooperated with the national requirements for generic drug quality and efficacy consistency evaluation. To date, a cumulative total of 35 products have passed the consistency evaluation. The Group currently has a number of key R&D products, and their therapeutic areas and development stages are shown in the figure below. These products are expected to lay a solid foundation for the Group's sustainable development in its future operations. 54 The United Laboratories International Holdings Limited 2025 Environmental, Social and Governance Report Investment in R&D (RMB million) 2023 2024 2025 808 986 1,005