ESG Report 2018

SALES AND PROMOTION Besides manufacturing and research and development, pharmaceutical sale is also an important sector of the Group's business. The Group implements the distribution and promotion of pharmaceuticals strictly according to the laws and regulations regarding pharmaceuticals, such as the Advertising Law of the People's Republic of China and the Reviewing and Standards for the Examination and Publication of Drug Advertisements . According to the related regulations, the Group has formulated standards to regulate the promotional behaviors, and required all the employees of various levels to, when having product sales activities, comply with the related laws and regulations as well as professional ethics. In the aspect of promotion, all the pharmaceutical promotion information released by the Group is based on scientific evidence and complies with the principles of accuracy, objectivity and completeness. Corresponding package insets are also attached to explain the correct medication methods to make sure a complete compliance with the requirements of law. Besides, the Group has also formulated and implemented the relevant management rules, according to the Provisions on the Administration of Pharmaceutical Direction and Labels , on label-type packaging materials. The contents, patterns, wordings, etc. of label type packaging materials are proofread by the Quality Management Department before submitting to the typographer for printing. The typographer shall also pass our screening and review so as to avoid the circulation of wrong information or misleading customers due to printing problems. The sales teams of the Group spread across China, and the management of sales personnel, including recruitment, performance appraisal, training and occupational safety are collectively handled and supervised by the Group's Head Office. This ensures that the related management personnel and frontier promotion personnel have received necessary training, and all the sales personnel have reached the same professional level so as to provide customers with the best-quality services. Besides, all the sales personnel shall sign the Letter of Commitment for working according to laws and be committed to complying with national regulations as well as the regulations and rules of the Group in order to prohibit any violation of regulations regarding sales and promotion. suppliers who meet the related requirements can enter the list of qualified suppliers. Besides, we will conduct written or on-site auditing on the cooperating suppliers to further determine their performance and service level in order to avoid any suppliers without related qualifications or with unstable product quality from entering the supply chain of the Group and affecting the product quality of the Group. The Group generally observes the principle of proximity during procurement. The suppliers are concentrated in the nearby provinces, which can effectively reduce transportation cost and carbon emission in transportation process. In order to strengthen the Group's supply chain management, the Group's China Sales Department has held an annual meeting on supply chain management with the theme of “Gathering for Innovation and Transformation, Linking to the Future” during the Year. Through forums, dedicated lectures and dedicated training, all relevant staff could discuss the new trends of supply chain management in the future. A famous expert in Chinese plan management effectiveness improvement was invited to the meeting to conduct a dedicated training of “Plan Management and Inventory Management of Supply Chain” to strengthen the employees' abilities to control the operation of the supply chain. 35 Environmental, Social and Governance Report 2018 The United Laboratories International Holdings Limited