ESG Report 2023

Before The United Laboratories entered the Paraguayan market, it was a price-oriented market with regulatory confusion and frequent medical incidents. One of our clients in Paraguay experienced a major medical incident resulting in the death of a child. Through communication with the client, we discovered that the original supplier of their oral pharmaceutical, Amoxicillin and Cefixime Proxetil, was a chemical plant that did not have high-quality requirements for their product, and the client had not established a robust quality system internally. As a result, we actively engaged with the client, providing detailed pharmaceutical information and preparing work reference materials for each shipment to assist them in effectively controlling the quality of the pharmaceutical product during the production process. Ultimately, we successfully helped the client elevate the production standards of the pharmaceutical to those of developed countries. Assisting Customers in Developing Countries to Improve Product Quality Our clients in Thailand faced challenges in their production of Amoxicillin pharmaceuticals due to limitations in their manufacturing technology, leading to frequent dissolution issues. Through multiple communications and negotiations, we arranged for free samples and shared relevant production parameters to assist the client in improving production efficiency and ensuring quality stability. Providing Process Technology Improvement Support to Clients 21 As a raw material supplier, The United Laboratories not only provides high-quality APIs and intermediates to large pharmaceutical enterprises in developed countries, but also continuously supports pharmaceutical companies in developing countries to improve their pharmaceutical standards. Through detailed pharmaceutical information, sample preparation, and work reference materials during shipment, as well as providing support for process technology improvements, The United Laboratories assists local pharmaceutical manufacturers and other clients in enhancing production efficiency and effectively controlling the quality and stability of pharmaceutical products. Our commitment is to help our clients elevate their standards to meet the requirements of regulatory markets and international pharmaceutical manufacturing standards. During the Year, a total of 68 manufacturers utilized The United Laboratories' APIs for the declaration, implementation, or completion of consistency evaluations for 11 different varieties. 5.4.2 Assisting Overseas Customer in Achieving International Pharmaceutical Manufacturing Standards The Group actively promotes the rational use of antibiotics as the misuse of antibiotics leads to increased antibiotic resistance, which inevitably poses threat to public health. As antibacterial drugs are one of the Group's major product categories, the Group strictly complies with the "Administrative Measures for the Clinical Application of Antibacterial Drugs" promulgated by the government and the "Classification and Management Catalogue of Clinical Application of Antibacterial Drugs" issued in various regions, and actively cooperates to control and reduce the occurrence of antibiotics abuse. To address the issue of antibiotic resistance, the Group is developing a Class 1 new drug LB2311 suitable for drug-resistant bacterial infections. As of the end of this report period, the project is in the preclinical research stage. 5.4.3 Rational Use of Drugs Environmental, Social and Governance Report 2023 The United Laboratories International Holdings Limited