ESG Report 2025

75 Efficient, robust and resilient supply chain management is an important foundation for The United Laboratories to safeguard stable production, product quality and sustainable development. As a pharmaceutical enterprise, the timeliness, reliability and traceability of the supply of raw materials and key materials directly affect product quality, safety performance and operational efficiency. Leveraging the vertically integrated production and operation model of “pharmaceutical intermediates – bulk medicines – finished products”, the Group continues to strengthen its overall control over raw material sourcing, production coordination and supply chain operations, reducing the risks arising from external market volatility and unstable supply while enhancing source traceability and whole-process management capabilities. The relevant laws, regulations and internal policies observed by the Group in this chapter are set out below. Good Manufacturing Practice for Pharmaceutical Products Measures for the Supervision and Administration of Drug Production Contract Law of the People's Republic of China Measures for the Supervision and Administration of Drug Distribution Sustainable Procurement Policy Supplier Code of Conduct Management and Audit Procedures Integrity Cooperation Agreement Procurement Process Management Document Sustainable Development Procurement Policy and Green Engineering Area Relevant laws, regulations and standards Internal policies Supply chain management During the Y ear , T he U nited L aboratories h ad a total of 160 major suppliers, with their geographical distribution shown in the chart below. 9.1 Supplier Distribution South China Southwest China East China North China Central China Northwest China Northeast China Outside of China To ensure procurement quality, supply security and compliance from the source, United Laboratories continuously improves its supplier admission management mechanism by incorporating supplier screening, qualification review, comprehensive evaluation, and approval into a standardised process, thereby strengthening supply chain risk control at the outset. During supplier development and onboarding, United Laboratories not only considers supply capability and cost competitiveness, but also integrates requirements related to business ethics, product quality, labor rights, occupational health and safety, environmental protection, and climate resilience into its cooperation standards. This approach promotes a fair, just and transparent business environment and fosters long-term, stable, and sustainable partnerships with suppliers. During the Year, all new suppliers were required to submit the relevant qualification documents and undergo admission assessments. Only upon passing the review could they be included in the pool of potential suppliers or the list of qualified suppliers. For different types of suppliers, The United Laboratories adopts tiered and categorised admission requirements based on material categories, supply risks and actual business needs, so as to enhance the relevance and effectiveness of supplier management. 9.2 Supplier Admission Supplier Distribution 33% 31% 23% 7% 2% 1% 1% 1% The United Laboratories International Holdings Limited 2025 Environmental, Social and Governance Report