ESG Report 2018

OPERATION WITH INTEGRITY Honesty, compliance with the law and integrity are always the foundation of enterprise development. The Group has always been striving to establish a positive atmosphere of operation with integrity and working with diligence and respect, holding the “zero tolerance” attitude towards illegal behaviors such as bribery, extortion, fraud and money laundering. Therefore, we strictly comply with the Criminal Law of the People's Republic of China , the Anti-unfair Competition Law of the People's Republic of China and other related laws and regulations, and at the same time formulate a relevant system on anti-malpractice and complaint reporting, for the purpose of preventing corruption and reducing the operating risks of the Group. Advocate honest and upright corporate culture, create anti- malpractice corporate culture and environment Evaluate malpractice risks and establish specific control procedures and mechanism Specify anti-malpractice work duties, organize the receiving, investigation, reporting and handling work of anti-malpractice In views of immoral and dishonest behaviors, employees or any partners of the Group may report through the reporting channels in form of real name or anonymity. The Group has arranged related departments to be responsible for organizing and implementing anti-malpractice work, including complaint-handling and malpractice- related matters. In order to enhance the deterrent effect, for any employee with malpractice behaviors, the management shall impose corresponding internal economic and administrative disciplinary penalty no matter if it has reached the degree of criminal offense. During the Year, the Group was not involved in any cases of corruption litigation. During the cooperation with different business partners of the Group, both parties shall sign the anti-commercial bribery agreement to ensure that the personnel at different levels of both parties would observe professional ethics, work with integrity and comply with law, so as to jointly bring an end to commercial bribery behaviors. For any cooperating partners that violate the agreement, the Group preserves the right to terminate the cooperation between the two parties, and include it into the blacklist of integrity, so as to protect the Group's reputation in integrity. MAIN ANTI-MALPRACTICE WORK OF THE GROUP 37 Environmental, Social and Governance Report 2018 The United Laboratories International Holdings Limited