ESG Report 2018

REDUCTION IN WATER CONSUMPTION Inner Mongolia has various natural enviroment including forests , grasslands , wetlands , rivers and lakes . Ecological protection and restoration is one of the main directions to national comprehensive environmental protection . Water resources are the most basic and indispensable resources in the long - established integrated ecosystem of Inner Mongolia . Therefore , the Group , especially Inner Mongolia Company , spares no efforts to reduce the consumption of water resources . The production conditions of pharmaceutical product are extremely strict. Therefore, even though it is hard to greatly adjust the consumption of water, Inner Mongolia Company still have in hand all the details including the entering, transport, usage, discharge and recycling, etc. of water resources so as to take every chance to reduce water consumption and avoid wasting water. Through the implementation of the wastewater reuse plan , Inner Mongolia Company maximize the scale of recycling wastewater from the production plants and increase the reuse rate of wastewater as much as possible . During the Year , Inner Mongolia Company completed the small - scale and middle - scale experiments on the reuse of reclaimed water . The reclaimed water reuse system is expected to be completed and launched in 2019 , which is predicted to reduce the amount of purchased water . Water Conservation Measures of Inner Mongolia Company during the Year Replaced boiler make - up water with industrial potable water to reduce the amount of boiler make - up water and reduce heat loss Recycled cooling water in steam pipeline network of factory area as boiler make - up water Adopted recycling water pumps to recycle the water draining from water tank to circulating pool for reuse Strengthened the management of regular maintenance of water equipment to prevent leakage or dripping Under the combination of various measures in water conservation , remarkable results are shown . Inner Mongolia Company will continue with the existing measures and actively make use of innovative technologies , so as to contribute to the protection of water resources . Indicators 2018 2017 3 1 Total water consumption (m ) 6,364,595 6,706,054 3 1 Water consumption per ton of products (m ) 160 . 35 190 . 96 1. Adjustment of water consumption amount has been made as Inner Mongolia Company has updated its categorization of water consumption during the Year. Data of 2017 has been restated accordingly. 19 Environmental, Social and Governance Report 2018 The United Laboratories International Holdings Limited

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