ESG Report 2025

78 9.3.1 Supplier Risk Management The United Laboratories attaches importance to the forward-looking identification and continuous control of supplier risks, and manages suppliers by category and tier in accordance with the risk-oriented principle. In the course of risk assessment, the Group comprehensively considers factors such as the importance of the supplied materials, procurement amount, the labour and environmental risk level of the industry in which the supplier operates, the supplier’s own management foundation, and whether it has obtained relevant third-party management system certifications, so as to identify and assess the supplier’s risk level and formulate corresponding management measures, thereby improving the precision of resource allocation and the effectiveness of risk prevention and control. In terms of management requirements, the Group has issued and implemented the “Supplier Code of Conduct of The United Laboratories”, which clearly requires all cooperating suppliers to comply with the Group’s basic standards in business ethics, product quality, social responsibility, occupational health, environmental protection and climate resilience. The Code applies to all types of business partners, including suppliers of raw and auxiliary materials, packaging materials and reagents, equipment and instruments, hardware materials, service providers and contractors. Suppliers are also required to implement the relevant responsibilities in their own operations and upstream supply chains, so that risk management requirements may gradually extend further upstream. Summary of “The United Laboratories Supplier Code of Conduct” Labour Management and Human Rights 1.Respect employees' dignity, privacy, and rights; prohibit discrimination based on race, gender, age, etc.; provide a transparent, collaborative, equal, and harassment-free work environment. 2.Forced, bonded, or involuntary labour is strictly prohibited. Child labour under 16 years (or below the legal working age) is forbidden. Special protection for minors aged 16–18. 3.Working hours shall not exceed legal limits; overtime must be compensated. Wages shall not fall below the statutory minimum and shall cover basic living needs. 4.Respect employees' rights to form and join trade unions and to engage in collective bargaining, as permitted by law. Business Ethics 1.Strictly comply with applicable laws, regulations, and internal policies including the Integrity Cooperation Agreement; uphold integrity-based business conduct; prohibit any form of bribery or undue benefit transfer. 2.Provide fair and effective pricing mechanisms; prohibit price fixing, bid rigging, monopolies, and other commercial fraud. Suppliers must strictly comply with the Integrity Cooperation Agreement. Any form of bribery or improper transfer of benefits is strictly forbidden. Quality Management 1.Manufacture in accordance with national standards and industry standards; establish an effective quality management system; promptly correct and prevent quality issues to ensure stable supply and product conformance. 2.Notify the Group in advance of any changes to production processes, finished product specifications, key equipment, or production sites. Major changes involving key equipment, sites, or processes require 3 months' prior notice and submission of three consecutive batches of samples. Occupational Health and Safety 1.Establish and periodically assess an occupational health and safety management system; continuously provide a safe and healthy work environment. 2.Provide necessary safety facilities and protective equipment; conduct regular safety training and drills; establish emergency measures for accident prevention, emergency evacuation, reporting and investigation; ensure products and services meet safety standards. Environmental Protection and Climate Resilience 1.Comply with environmental laws and regulations; obtain and maintain required permits; encourage ISO 14001 certification. 2.Identify and assess climate-related risks; set environmental improvement targets; develop a business continuity plan. 3.Manage waste according to the "reduce, reuse, recycle" principle. Hazardous waste shall be safely handled and disposed of by licensed operators; prevent leakage and contamination. Prioritise recyclable and eco-friendly materials, reduce packaging, and minimise negative impacts on ecosystems. 4.Improve energy and water efficiency; measure and track carbon emissions; develop emission reduction plans; explore energy efficiency improvements and renewable energy sources. The United Laboratories International Holdings Limited 2025 Environmental, Social and Governance Report Breach of Obligations and Management Mechanism For suppliers in violation, corrective actions and suspension of cooperation may be imposed. Where losses are caused, penalties may include contract termination and legal compensation, depending on the severity.