ESG Report 2018

IMPROVEMENT IN PRODUCTION TECHNOLOGY The current supply chain of circular economy turns the waste residue produced during production into organic fertilizer and reuses it in corn planting , which can recycle and reuse resources while reducing the environmental impacts of energy consumption and waste disposal . During the Year , various works in innovative technological transformations and innovative management have been carried out in the production plants of Inner Mongolia Company . In terms of optimization of production technology , the 6 - APA fermentation plants have completed the technological verification and experiment optimization of new type of 6 - APA fungus growing. The new technology can shorten the fermentation cycle of existing fungi, raises the production output and also reduce the amount of energy and other resources invested in the fermentation cycle , which greatly reduces the use of resources . Inner Mongolia Company plans to gradually apply the new technology to various plants in the coming year , and hence more benefits can be predicted . Corn fermentation Corn planting Organic fertilizer Fungi Residue Amoxicillin Bulk Medicine 6-APA Intermediate Products ENERGY CONSERVATION The importance of energy consumption to the pharmaceutical industry cannot be underestimated , and the derived environmental impacts cannot be ignored either . In response to the country's full implementation of energy conservation in major industrial segments , Inner Mongolia Company has formulated a detailed management system in energy conservation according to the National Requirements on Energy Management System. A corresponding task force has been established to effectively coordinate the production plants' or departments' energy consumption and energy conservation measures with a healthy management system. In the meantime , Inner Mongolia Company has formulated control indicators of energy consumption , material consumption and the production and emission of pollutants , so that targets and plans of energy conservation and emission reduction can be delivered to production plants, teams and even individual positions, and work can be done with a pragmatic approach. During the Year , Inner Mongolia Company continued to support the development of circular economy. While adopting the homemade supply chain of circular economy of “corn fermentation - 6-APA intermediate products - amoxicillin bulk medicine” , it also strives to seek for and investigate the possible ways of improvement or efficiency enhancement . 15 Environmental, Social and Governance Report 2018 The United Laboratories International Holdings Limited