ESG Report 2023

107 10.6 Protecting Biodiversity Biodiversity has always been an integral part of ecosystems, providing valuable natural resources and ecological services to humanity. At the same time, biodiversity is the foundation for human survival and development, forming the material basis for all social activities; without biodiversity, human existence would not be possible. Biodiversity is of vital importance in maintaining ecological balance, preserving human well-being, and promoting sustainable development. The United Laboratories attaches great importance to biodiversity conservation and strictly adheres to relevant laws and international conventions such as the Forest Law of the People's Republic of China, the Implementation Regulations of the Forest Law of the People's Republic of China, the Wild Plant Protection Regulations of the People's Republic of China, the Wild Animal Protection Law of the People's Republic of China, and the United Nations Convention on Biological Diversity. The company has developed and actively promotes measures related to biodiversity conservation. To protect biodiversity, our group has formulated the “Biodiversity Conservation Management Regulations”, with responsibilities assigned to the Group's Environmental Protection Department and ESG Working Group for developing corresponding measures and conducting supervision and inspections. In order to maintain ecological balance, the Group is committed to: Biodiversity Conservation 1 2 3 4 5 Not using any animal or plant materials from species listed in the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) for product manufacturing. Verifying the raw materials provided by suppliers to ensure they do not belong to species listed in the CITES appendices for animal or plant materials. We do not engage in deforestation- related activities in our business operations, and we commit to maintaining zero deforestation in our future operations. We will enhance awareness among employees and suppliers regarding biodiversity conservation in all our business operations, continuously strengthen internal biodiversity protection campaigns and training. Continuously reducing adverse impacts on biodiversity and fulfilling our commitment to biodiversity conservation. Ulan Suhai Lake is located in Urad Front Banner, Bayannur City, Inner Mongolia Autonomous Region, and is one of China's eight major freshwater lakes as well as the largest lakeside lake in the Yellow River Basin. It is a large grassland lake with biodiversity and environmental protection functions, which is extremely rare in desert and semi-desert areas globally. Ulan Suhai Lake plays a crucial role in maintaining ecological balance in the northwest region of China and beyond, and in protecting species diversity. In 2016, the comprehensive treatment of Ulan Suhai Lake was included in the national '13th Five-Year Plan' outline. Bayannur City has followed the comprehensive treatment concept of 'ecological replenishment, source control and pollution reduction, restoration and management, resource utilization, and sustainable development,' accelerating the implementation of the Ulan Suhai Lake treatment plan, completely eliminating point source pollution hazards in Ulan Suhai Lake, and achieving zero discharge of point source pollutants into the lake. The United Laboratories actively responds to the government's call, adhering to the environmental protection concept of “Green Waters and Green Mountains are Golden and Silver Mountains” and “Environmental Protection is the Lifeline of Enterprises”, firmly supporting the construction of the “Western Ecological Security Barrier”. By the end of October 2019, the company completed the construction and installation of the reclaimed water project, and by the end of December, successfully completed the debugging work, achieving zero discharge of sewage from the entire factory and full reuse. As of this year, The United Laboratories has maintained zero discharge of sewage for more than three years, with all water being reused. This contributes to the governance and protection of biodiversity in Ulan Suhai Lake. Environmental, Social and Governance Report 2023 The United Laboratories International Holdings Limited