ESG Report 2025

81 At the same time, the Group uses the results of supplier inspections and audits as an important basis for subsequent cooperation decisions, and aligns them with supplier classification management, procurement strategy adjustments and risk control measures. For suppliers with strong management foundations, high levels of cooperation and stable performance, The United Laboratories will prioritise maintaining and deepening cooperation. For suppliers that fail to continuously meet requirements or do not implement rectification effectively, measures such as suspension of cooperation, removal from the list of qualified suppliers or termination of cooperation will be taken as appropriate, in order to safeguard the overall stability of the supply chain. During the Year, The United Laboratories also conducted a total of 1,777 online and on-site audits of all major cooperating suppliers. Details are as follows: 2025 Online Audit Quantity 2025 Offline Audit Quantity Supplier category 96.2% 100% 94.7% 100% 100% 105 2 49 80 91 Qualification Rate 99.4% 100% 99.3% 100% 99.8% Quantity 458 7 146 423 416 Annually / irregular Annually / once every three years / once every 3–5 years (by risk category) Annually / irregular Annually / irregular Annually / irregular Audit frequency requirements Raw and auxiliary materials Reagents Packaging materials Hardware and labour protection materials Equipment 9.3.3 Supplier Training To enhance suppliers’ understanding of the Group’s management requirements and consistency in execution, the Group regards supplier training as an important part of dynamic supply chain management. Taking into account supplier type, stage of cooperation and risk characteristics, the Group continuously conducts targeted communication and awareness-raising activities, promoting consistent standards between suppliers and the Group in quality management, delivery coordination, safety and environmental protection, and compliant operations. The training content mainly focuses on the Supplier Code of Conduct, product quality requirements, incoming material standards, change management, delivery requirements and sustainability concepts, helping suppliers to gain a clearer understanding of The United Laboratories’ cooperation standards and management priorities. For key suppliers or newly introduced suppliers, the Group also strengthens communication on quality risk control, exception handling mechanisms and continuous improvement requirements in light of actual cooperation circumstances, thereby deepening suppliers’ understanding of the cooperation requirements and enhancing execution capability. At the same time, The United Laboratories also appropriately communicates basic requirements relating to business ethics, integrity compliance and anti-corruption during supplier communication and training, emphasising that both parties must jointly uphold a fair, just and honest business environment and encouraging suppliers to integrate such concepts into their daily operations and internal management. Through the continuous implementation of supplier training and engagement activities, the Group not only strengthens information exchange and collaboration with suppliers, but also enables suppliers to promptly identify and respond to the Group’s management requirements in areas such as quality, delivery and sustainability, thereby promoting the steady enhancement of overall supply chain management standards. For suppliers identified as non-compliant during the audits conducted in the Year, the Group has taken corresponding actions based on the actual circumstances. New applicants that failed to pass the audit were not included in the list of qualified suppliers, while existing qualified suppliers that were found to be non-compliant upon audit have had their cooperation terminated. The Group will continue to strictly implement supplier audit and risk control measures to ensure the overall stable operation of the supply chain. Qualification Rate Quantity The United Laboratories International Holdings Limited 2025 Environmental, Social and Governance Report