ESG Report 2025

80 In terms of audit approach, the Group arranges supplier inspections and audit frequency in accordance with the principle of risk orientation, strengthening on-site verification and follow-up for newly introduced suppliers, suppliers in critical categories or those presenting relatively high risks. For suppliers with established business relationships, the Group continuously evaluates the stability of cooperation and compliance performance based on factors such as the quality of daily supplies, delivery performance, customer complaint records, change matters and results of previous audits. For issues identified during audits, The United Laboratories requires suppliers to submit rectification plans within a specified timeframe and implement improvement measures. Where necessary, re-audits or ongoing follow-up will be conducted to verify the effectiveness of rectification and promote closed-loop management of the issues identified. Supplier On-Site Evaluation Form Contents Qualification Audit Resource Management Production and Procurement Management Quality Control Warehouse Management Design and Development Management Understanding the origin of raw material sources and whether the supply can guarantee stable production Number of production lines, specialisation or shared lines, batch quantities, monthly production volume Compliance of production site management and sophistication of equipment Existence of environmentally friendly facilities and advanced technologies to meet national (or local) environmental requirements Acquisition of patents, specific patent projects, and provision of patent documentation Improvement projects related to The United Laboratories Company development plans and vision, research and development of new projects Establishment of a comprehensive quality control system: process specifications, production records, deviation management, change management, batch management, quality standards, inspection methods, stability testing, quality reviews, etc. Complaints, returns and exchanges, rework rates, product acceptance rate Adequate inventory management for normal operations Sound warehouse management systems for raw materials, packaging materials, and finished products, including proper zoning Management and handling procedures for non-conforming products Completeness and validity of business license, operating permits, production permits, authorised agencies, etc. Company scale: financial situation, personnel, organisational structure, etc. Sales revenue in the recent three years, market share of the product, industry position Percentage of The United Laboratories' annual order volume in relation to the supplier's annual revenue Any legal disputes over the recent three years, with a brief description of the reasons and judgment outcomes The United Laboratories International Holdings Limited 2025 Environmental, Social and Governance Report