ESG Report 2023

6.2.3 Anti-Corruption and Anti-Money Laundering In addition to building an incorruptible culture and encouraging employees to be self-disciplined and abide by the laws, the Group has also established “The United Laboratories Anti-Fraud and Whistleblowing Management Policy” to combat all potential fraud in the Company. The Group's Audit and Legal Affairs Centre is the anti-corruption department responsible for organizing the Group's corruption risk assessment, establishing maintenance reporting channels, and accepting and investigating corruption cases. When reports or clues on corruption matters are received, the Group will arrange investigators for analysis, evaluation and investigation, and penalize the employees involved based on the investigation results and opinions on its handling. In order to enhance deterrent effect, for any employees that are associated with malpractice behaviours, the Company shall impose corresponding internal economic and administrative disciplinary penalty regardless of whether the case constitute a criminal offence. If the case is serious, the Group reserves the right to terminate the labour relationship and pursue criminal responsibility according to law. In order to further strengthen our staff’s awareness of complying with business ethics and related laws, the Group regularly organizes training sessions on laws and corporate regulations for our staff to enhance their professionalism and strengthen the prevention of legal risks. During the Year, the Group’s Legal Affairs Department organized a total of 32 training sessions on compliance and business ethics, covering topics such as donation of drugs, drug sales, representative responsibilities, information security, contract signing, with combined training count of 6,084 attendances. In addition, the Group's Legal Department has conducted a combination of online and offline anti- corruption training, with the target audience including all employees and suppliers, a total recorded attendance of 949 is recorded. The Group will review the anti-corruption policy as appropriate and conduct annual audits. In 2023, the Group has comprehensively updated “The United Laboratories Anti-Fraud and Whistleblowing Management Policy” and conducted online anti-fraud training sessions for all companies in accordance with the new system. The training covered various violations and case studies, aiming to enhance the awareness of integrity among employees and management personnel, and increase vigilance towards legal and disciplinary risks. To establish an effective anti-money laundering system, the Group has established “The United Laboratories Anti-Money Laundering Management Policy” applicable to all subsidiaries and employees of The United Laboratories, aiming to prevent, monitor, and combat money laundering activities. The Board bears ultimate responsibility for anti-money laundering management, while the Supervisory Board oversees the performance of the Board of Directors and senior management in anti-money laundering matters and provides recommendations on anti-money laundering management. The Group's Finance Department, Treasury Department, and Credit Risk Department serve as the supervisory departments responsible for promoting the implementation of various anti-money laundering initiatives. To ensure the effectiveness of anti-money laundering management, the Group conducts regular or ad hoc inspections, with the inspection results linked to performance assessments and management authorizations. Additionally, the Group ensures the compliance and effectiveness of anti-money laundering management through internal audits, and the Board receives regular reports on the internal audit findings related to anti-money laundering. In addition to internal audits, the Group engages external audit firms to evaluate the effectiveness of anti-money laundering management, ensuring its robustness and compliance. As for the business partners, the Group requires both parties to enter into the Incorruptible Cooperation Agreement, which itemizes the integrity compliance that both parties shall comply with, and provides telephone, email and post complaint reporting methods to effectively reduce the risk of corruption and ensure the interests of both parties. During the Year, the Group was not involved in any cases of corruption litigation. Recorded Attendances of Anti-corruption Training 949 Recorded Attendances of Compliance Training 6,084 Compliance Training 32 30 Environmental, Social and Governance Report 2023 The United Laboratories International Holdings Limited