ESG Report 2023

5.3 Improving Medical Affordability The National Healthcare Security Administration 國家醫療保障局 announced the “National Basic Medical Insurance Drug List (2023 Edition)” (NMIDL) will be officially implemented on January 1, 2023. During the reporting period, the Group has 66 products included in the NMIDL, with 24 Category A products and 42 Category B products. In addition, the Group also has 30 products in the “National Essential Drug List” (NEDL) published in 2018. ( ) 5.3.1 Selected in National Medical Insurance Drug List and National Essential Drug List Insulin Products Antibiotic Products Currently, there are 140 million diabetes patients in China, and insulin plays a crucial role in controlling blood sugar levels for these patients, holding an irreplaceable position in diabetes treatment. Since insulin requireds to be used long-term, the National Healthcare Security Administration organised the 6th batch of national centralised procurement of drugs (Insulin-specific) and the selection results will be implemented in May of 2022. This centralised procurement invoves the procurement of approximately 210 million units of insulin in the first year of the national medical institutions, with a procurement amount of RMB17 billion and an average price reduction of 48% for the selected products. The Group's full line of insulin products was selected in this procurement, and through increasing our market share of insulin products, we aim to alleviate the financial burden of medication and benefit a wide range of diabetes patients. During the year, the eighth centralized drug procurement of the state was initiated and successively implemented, covering drugs for common diseases and chronic diseases like infection, cardiovascular and cerebrovascular diseases, allergy and mental diseases. The tazobactam sodium for injection (specification: 4.5g) of the Group was selected. As the centralised drug procurement of the state is becoming normalised and mature, it will gradually tend to alleviate the impact on drug prices. Following the policy guide, the Group carried forward R&D, innovation and product upgrade and further enhanced the comprehensive competitive edges. In the future, the Group will provide more affordable drugs to those in need. approximately 5.3.2 Participating in the National Centralised Procurement 19 Environmental, Social and Governance Report 2023 The United Laboratories International Holdings Limited National Medical Insurance Drug List (NMIDL) 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 clinically 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 (NEDL) 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. The NEDL come into effect from 21 September 2009.