ESG Report 2022

4.2 Pharmaceutical Industry Facilitating the Development of the 4.2.1 Improve Pharmaceutical Accessibility Other R&D Achievements The Group's business covers pharmaceutical accessibility and affordability of drugs in developing products, active pharmaceutical ingredients (APIs), countries, and has established a fair and and intermediates, with product pipeline in fields reasonable pricing mechanism for APIs and such as endocrine, autoimmune, opthalmic, and i n t e r me d i a t e p r o d u c t s . T h i s me c h a n i sm anti-infection. The Group has been actively comprehensively considers factors such as expanding its international business to improve its production costs, industry supply and demand, global industrial distribution and export business. coverage of medical systems, and patients' Currently, the Group's international business affordability. The Group adopts a relatively covers intermediates and APIs, with a global sales transparent and consistent pricing policy in the network covering major pharmaceutical markets same level market both domestically and and emerging markets in China, Europe, India, the internationally. To make customers familiar with Middle East, South America, and Africa. The Group and understand the pricing level, the Group is is also a global leader in the upstream industry for committed to disclosing the purchase prices of the penicilin antibiotics. The Group's intermediates and drugs, such as the price of insulin selected by the API products have obtained official certifications national centralized procurement. This makes the from many countries, such as the European Union overall market price relatively transparent. The Ce r t i f i c a t i o n o f s u i t a b i l i t y o f Eu r o p e a n Group minimizes the intermediary links as much as Pharmacopoeia monographs(CEP), the United possible to effectively reduce the supply cost of States FDA, Germany, India, Japan, Brazil, and drugs. Currently, the pricing of the Group's generic Mexico. Currently, the Group has a total of 32 drugs on the market is generally 60-70% of the overseas certificatoins and 78 overseas innovator drugs. The Group did not have any registraions. quality control issues related to non-exclusive drug licenses for drugs in the current year. The Group During the Year, the Group's overseas business c u r r e n t l y d o e s n o t h a v e a b o a r d - l e v e l revenue is recorded to be RMB2.37 billion, representative or committee responsible for accouning for 20.9% for the Group's turnover. overseeing the accessibility of medical services for employees. In addition, the Group also pays attention to the Overseas certifications 32 Overseas registrations 78 Overseas business r evenue RMB 2.37 billion 16 Environmental, Social and Governance Report 2022 The United Laboratories International Holdings Limited During the Year, the Group's "Technical in the 2021 Zhuhai Science and Technology Transformation Project of Biological Drugs and Progress Award. Chemical Drugs to Increase Productivity and Improve Efficiency" was included in the 2022 Zhongshan City Industrial Development Project, and the "Tenofovir Disoproxil Fumarate Tablets, Memantine Hydrochloride Tablets and Glipizide Tablets Consistency Evaluation Subsidy Project" was included in the 2021 Zhongshan Health Medicine Industry Development Project. The above two projects received a cumulative subsidy of approximately RMB13.7 million from the government. In addition, the project "Technology Development and Industrialization of Glycine Insulin for Diabetes Treatment" won the First Prize