ESG Report 2025

76 The United Laboratories International Holdings Limited 9.2.1 Supplier Admission Assessment During the selection process, suppliers are required to submit relevant qualification documents and complete the assessment materials required by the Group. The assessment focuses on their overall qualifications and management capabilities, including business information, financial position, core competencies, human resources and enterprise management, supply cycle, inventory turnover rate, safety management, quality management, environmental facilities and sustainability goals. Only suppliers that satisfy the relevant requirements may be admitted into the corresponding supplier pool. Supplier Admission Assessment Contents 9.2.2 Supplier Approval Process Core Competencies Human Resources and Enterprise Management Financial Information Revenue and profit performance Cash flow Asset-liability ratio Company's main business Major raw material suppliers Key customers Competing enterprises Total number of employees in the company Percentage of technical and managerial personnel Supply cycle Inventory turnover rate Safety management Quality management Environmental facilities Sustainability goals The United Laboratories has established a standardised approval mechanism for new suppliers. In general, the procurement department formulates a plan for adding new suppliers based on procurement needs, and identifies suitable sources of supply through relevant websites, industry exhibitions, information enquiries and market development activities. Potential suppliers must provide complete qualification documents as required. After preliminary verification, the responsible personnel complete the approval form for adding new suppliers and proceed with review and approval in accordance with the established workflow. To improve objectivity and comparability in the approval process, The United Laboratories usually introduces two or more potential suppliers for horizontal comparison when selecting new sources of supply, taking into account their qualifications, level of cooperation, integrity and supply capacity as the basis for subsequent decisions. Suppliers that fail to meet the requirements will not be admitted, while approved suppliers will be included in the relevant supplier database and managed in accordance with the factory’s new supplier management process for subsequent cooperation. 2025 Environmental, Social and Governance Report