ESG Report 2023

8.3 Supplier Training In the Year, the Group conducted integrity training for all suppliers and safety transportation training for approximately 80 raw material clients. Supplier Classification 2023 Offline Audit Amount Qualification Rate Amount Qualification Rate Internal Audit Time Requirements 2023 Online Audit 8.3.1 Supplier Quality Training After monthly assessments and regular on-site audits of suppliers, the Group provides feedback to the suppliers. Following the audit process, if any non-compliance is identified, the supplier must provide corrective measures and an implementation schedule for the identified issues. Suppliers found with any non-conforming performance are marked as "high risk" and undergo monthly on-site training as a quality assurance measure to ensure improvements are made until our standards are met. Our procurement team follows up on corrective measures to ensure the resolution of compliance issues. The Group reserves the right to terminate business relationships with suppliers who seriously violate these guidelines and fail to correct within the specified timeframe. 8.3.2 Supplier Integrity Training We also provide reporting channels to encourage relevant personnel in the business to report any suppliers suspected of violating the practices and conditions outlined in these guidelines. The Group has signed the "The United Laboratories Anti-Corruption Cooperation Agreement" with all collaborative suppliers, clearly stating the Group's requirements for integrity and the respective obligations of both parties in complying with integrity regulations. Complaints and reports can be made through various channels, such as telephone, email, and mail, to effectively reduce the risk of corruption and ensure the integrity of all collaborative suppliers. 56 Additionally, the Group conducted a total of 440 online and offline audits for all major collaborative suppliers, achieving a 100% qualification rate. Environmental, Social and Governance Report 2023 The United Laboratories International Holdings Limited Raw Materials and Auxiliary Materials (Total) N/A Raw Materials and Auxiliary Materials (Critical) Offline audit every three years Raw Materials and Auxiliary Materials (Other) Online audit Hardware, Labor Protection Tools Timely audit Equipment N/A 53 100% 27 0 / 3 53 100% 24 290 100% 10 48 100% 12 100% 100% 100% 100% 100%