ESG Report 2023

14 Pharmaceutical innovation and the issue of medical accessibility continue to receive widespread attention in the global pharmaceutical and intellectual property sectors. They are closely related to the balanced development of public health and the intellectual property landscape. In order to enhance the Group's independent innovation capabilities and market competitiveness, The United Laboratories presists committed to innovative research and development. We have established multiple research platforms to continuously develop and improve pharmaceutical products to meet the evolving market demands. The Group is also dedicated to promoting industry development through academic outreach projects aimed at disseminating knowledge and information in the field of medicine. Additionally, while focusing on innovation and research and development, we place great importance on patent protection. The Group has implemented the "Intellectual Property Management Methods of The United Laboratories" to fully safeguard our own brand and pharmaceutical patents and to prevent any infringement activities. 5.1 Innovation and R&D The Group continues to strengthen its research and development (R&D) efforts and invest in innovation, establishing diverse pharmaceutical R&D platforms. Our aim is to develop and improve a greater number of high-quality and safe pharmaceutical products, making significant contributions to human health. The Group's pharmaceutical R&D focuses on novel drugs and high-value generic drugs, with key research areas including endocrine medications, autoimmune disease treatments, ophthalmic medications, and more. Additionally, our R&D and innovation efforts encompass pharmaceutical production processes, manufacturing technologies, environmental upgrades, and smart transformation. We are committed to utilizing superior technologies to provide customers with the highest quality pharmaceutical products. The Group has established the Research and Development Institutes for biological drugs, chemical drugs, innovative (chemical) drugs and animal healthcare, as well as the Clinical Researcch Centre to collaborate on research and development. These research institutes are equipped with skilled researchers and state-of-the-art equipment. The Biological Research and Development Platform boasts a team of nearly 720 research and technical personnel, with over 30% of them holding graduate or higher academic qualifications. Additionally, it is equipped with more than 100 cutting-edge research and development equipment, both purchased from the country and abroad, with an aggregated investment exceeding RMB160 million. The Medicinal Chemistry Research and Development Platform is responsible for conducting consistency evaluations on the quality and effectiveness of the Group's Medicinal Chemistry and generic drugs. It comprises nearly 150 research personnel, with over 70% of them possessing graduate or higher academic qualifications within the Medicinal Innovation (Chemical Drugs) Research and Development Platform. The Clinical Medicine Research Centre is tasked with designing, organizing, implementing, quality management, compliance, and other related work for all clinical trial projects undertaken by the Group. It maintains close collaborations with over 100 domestic institutions possessing national drug clinical trial qualifications and authoritative treatment in relevant fields. Under the guidance of renowned experts from both within the country and abroad, the Centre has successfully organized and completed more than 80 pharmaceutical clinical trials. Moreover, the Group collaborates with universities, research institutes, and laboratories both within the country and abroad to carry out research and development activities. , 5.1.1 R&D Platform The Group persists in innovative research and development, continuously allocating substantial resources to progressively increase the investment in R&D. In the Year, the Group has invested RMB808 million for research and development purposes, representing a year-on-year increase of 36.2%. 5.1.2 R&D Investment and Achievements Investment in R&D (RMB million) Environmental, Social and Governance Report 2023 The United Laboratories International Holdings Limited 465 2021 594 2022 808 2023