ESG Report 2025

79 The United Laboratories also incorporates risk management requirements into its day-to-day cooperation processes and continuously monitors suppliers’ performance in areas such as quality consistency, delivery capability, change management and compliance. For example, in the case of major changes that may affect product quality or safety, including changes in manufacturing processes, types of raw materials, key equipment and production sites, The United Laboratories requires suppliers to give prior notice and submit relevant information so that potential impacts can be assessed in a timely manner and corresponding management measures can be taken to reduce the risks of supply disruption or quality issues. At the same time, the Group pays close attention to social and environmental risks within the supply chain. It expressly prohibits suppliers from using child labour, forced labour or engaging in any other practices that infringe labour rights, and requires suppliers to provide employees with a safe and healthy working environment, as well as to establish mechanisms for accident prevention, emergency management and continuous improvement. In terms of environmental management, The United Laboratories encourages suppliers to establish effective environmental management systems, identify and assess climate-related risks, and formulate necessary business continuity arrangements in order to enhance operational resilience and supply stability. For suppliers identified as posing relatively high risks or violating The United Laboratories’ management requirements, the Group will, depending on the circumstances, adopt measures such as issuing rectification notices, conducting continuous follow-up, suspending cooperation or terminating cooperation, and reserves the right to pursue liability in accordance with contracts and relevant agreements. Through the above mechanisms, The United Laboratories continues to promote a shift in supplier risk management from a purely reactive approach to a management model that combines prevention in advance, monitoring during the process and improvement afterwards, thereby laying a solid foundation for the stable operation and sustainable development of the supply chain. 9.3.2 Supplier Review and Audit To further verify suppliers’ fulfilment capability, quality management standards and sustainability performance, the Group continues to conduct reviews and audits after supplier admission. Based on the importance of the supplied materials, the level of supply risk and actual cooperation circumstances, the Group adopts document review, on-site inspection and special audits to dynamically monitor suppliers’ operating and management conditions and ensure that they continue to meet the cooperation requirements of The United Laboratories. In terms of review content, The United Laboratories focuses on suppliers’ production and supply capabilities, quality management systems, on-site management standards, delivery stability and compliance performance. Based on actual needs, the Group also examines their raw material control, management of key processes, inspection capability, warehousing and logistics conditions, change management and exception handling mechanisms. For key suppliers involving product quality, safety or stable supply, the Group further pays attention to their management measures relating to labour rights and interests, occupational health and safety, environmental protection and business ethics, with a view to continuously improving suppliers’ overall management standards. Supplier Monthly Assessment Form Whether there have been instances where the supplier was unable to accept orders due to financial constraints or only partially fulfilled orders Timely and accurate issuance of invoices Instances of delayed after- sales service, communication difficulties, lack of honesty and integrity, etc. Management Indicators Willingness to independently provide energy-saving and environmentally friendly materials, collaborative development, and energy- saving measures to enhance factory efficiency Additional Indicator Whether there are material returns or exchanges that affect the quality acceptance rate Whether there have been complaints arising from product use due to quality issues Compliance with the company's qualifications, transportation services, delivery documentation requirements, etc. Timeliness and quantity of deliveries in accordance with specified requirements Whether the lead time for commonly used materials exceeds one month Comprehensive Indicators The United Laboratories International Holdings Limited 2025 Environmental, Social and Governance Report