ESG Report 2023

Supplier Admission Process To ensure the continuous supply security and cost reduction, the Procurement Department selects new sources of supply based on procurement needs. Suppliers who meet the initial assessment and evaluation criteria are included in the Potential Supplier Database and can be benchmarked against qualified suppliers. In addition to searching for suitable sources of supply through relevant websites, exhibitions, and other channels, procurement personnel may also request other suppliers to fill out forms based on actual conditions through information inquiries. The reviewed forms serve as a basis for adding new suppliers and also assess the suppliers' level of cooperation and integrity. When selecting new sources of supply, procurement personnel may add two or more suppliers simultaneously. Each supplier is compared horizontally according to the information requirements, so that the relevant information of the newly added suppliers can be compared in one list during the review process. New Supplier Approval Process Establish a plan for adding new suppliers Search for suitable suppliers Suppliers provide complete and timely qualification documents Complete the approval form for adding new suppliers Compliant Approval Approval Enter the factory's process for managing the approval of new suppliers Review qualifications Disapproval Disapproval Disapproval 51 Environmental, Social and Governance Report 2023 The United Laboratories International Holdings Limited Procurement Department Reviewed by Approved by Group Procurement Centre