ESG Report 2023

20 The Group is committed to promoting the growth of the pharmaceutical industry as well as the promotion of pharmaceutical academic and medicinal information. During the year, the Group actively participated in a multiple high-level pharmacetical academic forums, including the Annual Meeting of the Diabetes Committee of the Chinese Research Hospital Association, the Annual Meeting of the Endocrinology and Metabolism Committee of the Physicians Association and the Annual Meeting of the Chinese Society of Clinical Pharmacy. During the year, the Group participated in 11 high-level academic forums across the country with over 2,000 attendees. In addition, the Group continues to organise the "Double Excellence Campaign" - grassroots diabetes prevention and management training series, actively contributing to the improvement of the rational clinical use of diabetes drugs. 5.4.1 Providing Training for Local Healthcare Professionals The yield, flowability, and hardness of products are highly valued parameters for pharmaceutical manufacturers as they directly affect the characteristics and efficacy of the products. Our Group's key products for a customer in Turkey are uncoated amoxicillin tablets and amoxicillin-clavulanic acid coated tablets. As the customer experienced unsatisfactory results with the Federal Enzyme Method for amoxicillin in the initial stage, our sales team led relevant technical personnel from Zhuhai and Inner Mongolia Company to the Turkish pharmaceutical manufacturer's facility for on-site technical exchange, aiming to better understand and address the formulation customer's technical issues and promote commercial collaboration between the two parties Through measures such as adjusting relevant product parameters, we ultimately succeeded in resolving the issues of flowability, yield, and finished product hardness encountered by the formulation customer during the production process of using Federal products. This accelerated the progress of our commercial collaboration and established a long-term and mutually beneficial strategic partnership between the two parties. Company . Technical Exchange with Turkish Pharmaceutical Manufacturer Adhering to the tenet of "To Make Life More Valuable", the Group places a great importance to public health and supports the provisions of the “Doha Declaration on the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and Public Health” on protecting public health and granting compulsory licences for relevant patents in emergency situations. In addition, as a generic drug manufacturer, the Group supports fair competition for generic drugs. 5.4 Enhancing Healthcare Standards In addition, the Group also focuses on the accessibility and affordability of pharmaceuticals in developing countries. We have established a fair and reasonable pricing mechanism for active APIs and intermediates, which takes into account factors such as production costs, industry supply and demand, healthcare system coverage, and patient affordability. This mechanism adopts a relatively transparent and consistent pricing policy at both national and domestic market levels. To ensure familiarity and understanding of price levels among our customers, the Group has consistently practiced disclosing the prices of our pharmaceutical products. For example, we publicly disclose the prices of insulin products selected through national centralized procurement, contributing to a relatively transparent overall market pricing. The Group strives to minimize intermediaries and effectively reduce the cost of pharmaceutical supply. Currently, our generic drugs are priced at approximately 60-70% of the innovator drugs in the market. The Group has established a Product Pricing Management System, which clearly states that the Group will determine product sales prices based on market conditions, taking into account our own sales and supply situation. Considering the economic conditions in different regions, the Group adjusts the selling prices of similar products between developing and developed countries to ensure broader access to treatment. In the first quarter of this year, The United Laboratories supported the medication needs of earthquake-affected populations in Turkey by selling our products at an average price approximately 13% lower than the average prices in all other markets during the same period. Additionally, this year, the average selling price of our products in the Thai market was approximately 6% lower than the average price in the Spanish market. During this Year, the Group did not have any quality control issues specifically for non-exclusive licensed drugs or drugs with non-exclusive licenses. The Sustainability Committee has been established within the Group to oversee the accessibility of healthcare services. 5.3.3 Fair Pricing Environmental, Social and Governance Report 2023 The United Laboratories International Holdings Limited