ESG Report 2022

Environmental, Social and Governance Report 2022 The United Laboratories International Holdings Limited 17 Participating in the National Centralised Procurement of Insulin Currently, there are 140 million people with approximatly 210 million vials of insulin in the diabetes in China. Insulin is an important drug first year of the national medical institutions, for diabetic patients to control their blood sugar with a procurement amount of approxiatmly and has an irreplacable position in the treatment RMB17 billion and an average price reduction of of diabetes. Since insulin requires to be used 48% for the selected products. The Group's full long-term, the National Healthcare Security range of insulin products were selected in this Administration organised the 6th national procurement. By increasing the market share of centralised procurement of drugs (Insulin- insulin products, we will be able to alleviate the specific), and the selection results will be financial burden from drug usage and implemented in May 2022. This centralised benefitting the majority of diabetic patients. procurement involves the procurement of 4.2.2 Improve Pharmaceutical Affordability Increasing the Amount of Products in National Medical Insurance Drug List and National Essential Drug List The National Healthcare Security Administration included in the NMIDL, with 24 Category A products （國家醫療保障局） annouced the “Naional Medical and 38 Category B products. In addition, the Group Insurance Drug List (2021 Edition)”(NMIDL) will be also has 30 products in the "National Essential officially implemented on January 1, 2022. During Drug List" (NEDL) published in 2018. the reporting period, the Group has 62 products Category A drugs on the NMIDL are clinically necessary, widely used, effective, and low-priced among similar drugs. The costs incurred from the usage of Category A drugs are paid in accordance with the provisions of Basic Medical Insurance. Category B drugs on the NMIDL are clinicall optioinal, effective, and slightly more expensive than Category A drugs for the same class of drugs. The costs incurred from the usage of Category B drugs are first paid by the enrollee for a certain portion of the costs, then the paid for in accordance with the provisions of the Basic Medical Insurance. National Essential Drug List Naional Medical Insurance Drug List NEDL is the basis for medical institutions to equip and use drugs. The catalog contains 2 parts, which are usage for primary medical and health instituions, and usage by other medical institutions. The drugs in the NEDL are drugs that meet basic medical and health needs, have appropriate dosage forms, reasonably priced, can be ensured supply and are available to the public on a equiptable basis.