ESG Report 2023

100 This Year, The United Laboratories has newly constructed a high-concentration water separation and 10t/d recycled concentrated alkaline project, which processes high-concentration water from the zero-discharge recycled water system for salt separation to achieve environmental governance and promote resource utilization in a virtuous cycle. Additionally, in this year, Workshop 407 has completed the amoxicillin mother liquor top washing water recovery project, increasing the recovery rate of amoxicillin mother liquor and reducing wastewater discharge through the reuse of top membrane water. Inner Mongolia Company generates air pollutants in the production process, including exhaust gas with a peculiar smell generated from sewage treatment process, exhaust gas generated from production process, phenylacetic acid exhaust gas generated from the fermentation process of phenylacetic acid recycling, smoke of coal-fired boiler and the exhaust gas emitted by the used motor vehicles. In regard to the various types of exhaust gas, Inner Mongolia Company has set corresponding treatment facilities and systems to undergo recycling or purification treatment, and has implemented organic exhaust gas treatment projects, so as to ensure that all exhaust gas have reached the national emission standard before being emitted. In order to ensure that the amount of emission does not exceed the legal standard, Inner Mongolia Company has formulated systems relating to pollutant monitoring. In addition to maintaining the automatic monitoring systems for relevant exhaust gases, the company has also engaged a third party monitoring institution to regularly monitor the gas from pollution sources in monthly or quarterly, so as to ensure that the emission of exhaust gas complies with exhaust gas pollution control standards such as the Emission Standard of Air Pollutants for Pharmaceutical Industry (GB37823-2019). During the Year, Inner Mongolia Company has conducted 4 quarterly monitoring of exhaust gas outlets, all of which met the standards, and no excessive gas emissions occurred. 10.4.2 Exhaust Gas Treatment High-concentration Water Fractionation and 10t/d Caustic Soda Recycling Project The company invested RMB57.05 million yuan to build a 4,000m³/d high-concentration water fractionation and 10t/d caustic soda recycling project, which processes high-concentration water from the zero-discharge reclaimed water system to separate sodium chloride and sodium sulfate from wastewater. Monovalent salts are converted into acid and alkali for recycling through bipolar membrane technology, achieving the goal of acid and alkali recycling. Divalent salts are evaporated and concentrated using MVR technology to improve purity for external sales, thus exploring the circular economy of waste salt. After the implementation of this project, not only can the generation of solid waste be reduced, but it can also achieve the benign cycle of waste reduction and resource utilization at the source. Environmental, Social and Governance Report 2023 The United Laboratories International Holdings Limited