Employee Diversity Goals

Labour Practices

The Group adheres to compliance-based employment, strictly following relevant laws and regulations. It has established and implemented the Headquarters Personnel Recruitment and Employment Management Regulations, firmly adhering to the principles of demand orientation, responsibility, and transparency, fairness, and justice in recruitment. During the recruitment process, we implement the Group's human resources planning and recruitment plans, following the established recruitment procedures.

The Group values interaction between employees and itself. It encourages employees to actively participate in decision - making and ensures their opinions are fully voiced through regular communication between employee representatives and management. Through a social dialogue mechanism, the Group extensively solicits employees' suggestions on the work environment, corporate culture, and management policies, and also regularly conducts employee satisfaction surveys to measure employees' job satisfaction and well-being, as well as effectiveness of its management. The Group has established a robust data protection system, ensuring employees' privacy rights are safeguarded. Regular privacy protection training is provided to raise employees' awareness of personal information protection. In 2024, there were no incidents of employee privacy breaches.

The Group has established internal management systems such as the Attendance and Leave Management Measures and solemnly commits to always respecting and effectively safeguarding employees' basic labor rights to build a fair, healthy, and sustainable work environment, with this commitment covering all self-operated businesses, contractors, and partners. We commit to providing employees with competitive compensation packages. While ensuring employees' basic living needs are met, the actual payment levels are generally higher than the average wage in Beijing, ensuring employees have a good quality of life. We advocate for a healthy work-life balance, generally discourage overtime, and strictly enforce a daily work schedule of no more than 8 hours (excluding lunch breaks), thereby preventing overtime work through both policy and management. We commit to fully paying annual leave wages during employees' paid annual leave periods to ensure their income remains unaffected during such periods. Additionally, we establish a minimum notice period prior to mass contract terminations. Through these practical commitments, we strive to create a professional environment that respects individual value, cares for physical and mental well-being, and promotes long-term development.

To effectively implement these commitments, the Group has simultaneously developed and publicly implemented a systematic labor practices management plan to ensure that all measures are effectively executed and continuously improved. In terms of compensation, the Group has established clear wage standards, ensuring that overtime pay is calculated based on the employee's monthly basic wage, using an hourly wage rate calculated at 21.75 days per month and 8 hours per day. Through a punch-in system, the Group clearly records employees' overtime hours to ensure they receive reasonable compensation. In terms of working hours management, the Group adheres to the Attendance and Leave Management Regulations, generally discouraging overtime work. Departments must develop overtime plans based on business needs to prevent excessive working hours from the outset and ensure employees take their entitled paid annual leave. In terms of employee communication mechanisms, the Group regularly convenes employee representative conferences. In 2024, a total of 1 company-wide employee representative conference and 4 headquarters-level employee representative conferences were held. These conferences reviewed topics such as the Attendance and Leave Management Regulations and the Welfare Management Regulations, which directly impact employees' interests, and studied and implemented proposals submitted by employees to promote democratic management. In terms of social security, in addition to legally paying social insurance for employees, the Group also purchases supplementary medical insurance for eligible employees and their children. It regularly organizes insurance service briefings and reimburses medical expenses for outpatient and inpatient care not covered by medical insurance, thereby expanding the scope of social security coverage. Through these measures, the Group has established a comprehensive management system across all aspects, ensuring that the promised employee rights and interests are effectively implemented and laying the foundation for harmonious and stable labor-management relations.

Employee Compensation Management

To ensure equal pay for equal work, the group regularly conducts comprehensive gender-based salary evaluations. We collect and compare average salary data between male and female employees at all levels, analyzing indicators such as the average gender pay gap, median gender pay gap, and bonuses to verify the fairness of career development opportunities and access to high-paying positions for both male and female employees.

Through regular monitor and evalution of employee compensation data, if a gender pay gap is identified, we will promptly initiate an investigation and implement targeted corrective measures. Additionally, the group continuously optimizes its internal promotion mechanisms to ensure that employee compensation levels are tied to individual capabilities and performance, creating equal career development opportunities for both male and female employees.

We firmly believe that establishing a fair and just compensation management system is a crucial foundation for the sustainable development of the enterprise and safeguarding the vital interests of employees. We will continue to improve relevant policies and systems to foster a more equitable and inclusive work environment for all employees.

In terms of performance management, the Group conducts regular employee performance evaluations on an annual, quarterly, and monthly basis in accordance with business characteristics and employee job differences. Through performance appraisal methods such as target management and key performance indicators (KPIs), the Group effectively motivates employees and promotes the achievement of the group's overall strategic goals.

Target Management

Based on its development strategy and annual operating targets, the Group has established a performance target management system for its organizations and individuals, effectively aligning and breaking down the Group's overall targets. The comprehensive assessment of the Group's secondary institutions and headquarters leadership team includes an evaluation of the achievement of relevant targets, such as “secondary institution operating performance targets” or “strategic decoding and key task targets,” which account for a certain percentage of the total comprehensive assessment score.

Multidimensional Performance Evaluation

The comprehensive evaluation of the leadership teams of the Group's secondary institutions and headquarters departments, as well as the comprehensive evaluation of individual employees, includes a component of competency assessment (i.e., 360-degree evaluation), which accounts for a certain percentage of the total comprehensive evaluation score. In the comprehensive evaluation of individual headquarters employees, senior managers score employee performance according to the weighting corresponding to their management roles.

Team-based performance evaluation

The Group has established team performance contracts and a performance appraisal system, clearly defining the indicators used in team appraisals. Through annual comprehensive evaluations of the leadership teams of secondary institutions and headquarters departments, the overall performance results of teams are determined based on a comprehensive assessment of institutional/departmental performance, party building evaluations, and competency assessments.

Regular dialogue and continuous feedback

The Group's organizational performance feedback includes quarterly/annual evaluations of the OA strategic decoding system and institutional assessment feedback documents. The annual comprehensive performance appraisal scheme for employees includes personal reports, appraisal methods, performance feedback, and communication interviews. After the performance evaluation results are released, department heads and direct supervisors must proactively conduct performance reviews with employees based on the performance cycle, explain the rationale behind the evaluation results, identify and discuss areas for improvement in daily work, and jointly develop the next phase of work plans with employees.

Employee Satisfaction

The group conducts an annual Employee Satisfaction Survey, which focuses on job satisfaction, clarity of target at work, happiness at work, and stress at work. The results of the employee satisfaction survey for the company in 2022-2024 are as follows:

* Employee satisfaction survey data covers all headquarter (Beijing office) employees

Employee Training and Talent Management

The Group has formulated a comprehensive employee development plan, including the Education and Training Management Regulations, in line with its actual needs, covering all employees of the Group, including part-time employees and contract workers. This aims to promote the scientific, institutional, and standardized approach to education and training, build a highly qualified and professional cadre and employee team, and enhance the core competitiveness of the enterprise. The Group formulates an annual training plan and establishes a training management system with a clear management framework. It implements a model of “unified leadership, centralized management, tiered responsibility, and categorized implementation,” carrying out training activities in a structured and differentiated manner. By integrating both online and offline training approaches into a three-dimensional system, the Group places emphasis on talent development programs for outstanding young cadres as well as key professionals in the medical and financial sectors, thereby continuously empowering talent pipeline development.

In terms of learning and development, the Group provides a comprehensive education and training mechanism together with an online training platform, offering multi-domain and multi-level learning resources to support personalized learning paths and data-driven progress monitoring. This enables employees to develop tailored development plans based on their own interests and career goals. The platform also incorporates interactive formats such as online discussions, team projects, and community activities to foster cross-departmental collaboration and knowledge sharing, thereby cultivating a positive learning atmosphere.

To help employees quickly integrate during the early stage of their roles, the Group assigns mentors to new hires at the onboarding stage. Through one-on-one guidance, mentors assist them in becoming familiar with business processes, integrating into the corporate culture, and mastering essential skills. A long-term mechanism for employee performance evaluation, career planning, and development review has been implemented to continuously improve employee performance and promote career growth. Through systematic evaluation and feedback, each employee can identify their strengths and areas for improvement. Based on this, the Group offers personalized career development suggestions and training opportunities.

At the same time, the Group fully recognizes that keeping pace with market demands and industry trends requires continuously updating and acquiring key knowledge, which is essential for maintaining competitiveness. To this end, the Group has determined the core knowledge areas needed for future development and keeps abreast of technological advances, industry developments, and regulatory changes. This ensures the Group has the knowledge reserves necessary to meet future challenges.

The Group attaches great importance to enhancing employees’ capabilities in digital transformation, regarding it as a key driver for business optimization and efficiency improvement. In 2024, the Group organized a total of 14 training sessions on digital transformation, covering topics such as digital transformation in human resources, self-service analysis systems, experience sharing on inclusive finance business system development, and AI-enabled office solutions, with a cumulative participation of 845 employees. The training programs were designed to accommodate the practical needs of different business areas, ensuring that the content closely aligned with job characteristics and application scenarios. These efforts help employees better understand and master the use of new digital tools, processes, and technologies, thereby laying a solid foundation of talent and skills for achieving the Group’s overall digital transformation goals.

To effectively manage and utilize knowledge resources, the Group has established a comprehensive knowledge management framework - Knowledge Space. It is dedicated to creating a simple, transparent, and efficient "Organizational Information Center" and "Knowledge and Methods Resource Library". Knowledge Space serves as the Group's internal Wikipedia, where all employees can supplement, update, and jointly build commonly used organizational information and best practices. It contains departmental positioning, responsibilities, organizational information, and SOP guides. Through this framework, the Group can efficiently acquire, share, and preserve essential knowledge. This ensures that core technologies, best practices, and experience are inherited and applied within the organization. Additionally, the Group encourages cross-departmental cooperation and knowledge sharing to enhance the overall competitiveness of teams.

-Employee Training Performance

-Staff Development Programmes

Human Rights Commitments

-Statement of Commitment to Respect Human Rights in accordance with International Standards

The group has developed a Human Rights Policy that takes into account the United Nations Universal Declaration of Human Rights, the United Nations Global Compact, the United Nations Guiding Principles on Business and Human Rights, the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, the OECD Guidelines for Multinational Enterprises, the Code of Conduct of the Responsible Business Coalition and other frameworks, supporting and complying with international labour and human rights norms and authoritative global standards. These policies cover the Group’s own operations, its value chain, other business-related activities, and new business relationships arising from mergers and acquisitions, and include a systematic review of risk maps to identify potential issues. They clearly state and explain the content of the Group's human rights commitments and related management principles.

-Actual or Potential Human Rights Issues Covered in Due Diligence

1. Human trafficking

We are committed to working towards the prevention of forced labour and human trafficking by consistently adopting relevant human rights safeguards to ensure that slavery and human trafficking do not occur in our supply chains or other parts of our business.

2. Forced labour and child labour

New employees are required to provide actual and valid identity documents and proof of household registration insurance for inspection to prevent the recruitment of child labor. Once the use of child labor and forced labor is found, we will immediately stop the relevant illegal activities and deal with the involved persons in accordance with the relevant systems of the Group.

3. Freedom of association

The Group's human rights policy respects employees' freedom of association and is committed to providing channels and environments suitable for the free expression of opinions.

4. The right to collective bargaining

The Company's human rights policy respects the right of employees to join or form a trade union without fear of harassment, intimidation or reprisal. The same applies to employees who choose not to join a union. When interacting with legally recognized unions, the group is committed to promoting constructive dialogue and good faith negotiations with representatives of employee groups.

5. Equal pay for equal work

The Group's Human Rights Initiative works continuously to promote gender and racial equality, reduce bias and discrimination in all personnel and business policies and processes, and is committed to equal pay for equal work.

6. Discrimination

We adhere to an equal and diverse employee management policy, and all employees should be treated with respect and should not be discriminated against in recruitment, compensation and promotion based on gender, age, religion, race, disability, illness, marital status or pregnancy.

Note: The above human rights due diligence process covers groups including company employees, women, children, local residents, and others.

-Diversity and Equal Opportunity

The Group has established mechanisms to ensure equality in the workplace, promote diversity and inclusion, and guarantee fair opportunities and treatment for all employees. By offering flexible work arrangements, conducting diversity training, and enhancing the participation of employees from different backgrounds, the Group is committed to fostering a more inclusive corporate culture.

To ensure the effectiveness of its practices and measures, the Group regularly collects relevant data and employee feedback and conducts risk assessments to evaluate the effectiveness of its actions and identify potential risks. It also reviews its practices through internal oversight and regular inspections to identify areas for improvement. This enables the Group to continuously optimize its policies and enhance workplace inclusion and fairness.

Human Rights Mitigation and Remedies

-Procedures Implemented to Mitigate Human Rights Risks

Universal Medical endeavours to embed a human rights policy into the Group's performance and procedures by: implementing a due diligence process to identify, prevent, mitigate and consider potential human rights impacts of our operations; seeking the assistance of third parties, such as lawyers, where appropriate, to assess compliance with our policies, systems, operational processes and to provide the necessary remedies where required; and being transparent with stakeholders about the processes and operational progress that are relevant to them.

-Types of Remedies Taken

The Group's human rights remedies include policy adjustments, compensation, and penalties.

1. Policy Adjustment

Regularly review and revise the human rights prevention measures in each unit, as well as the related complaint penalties and whistle-blower protection measures.

2. Compensation

Employees can reflect and resolve related issues through channels such as the employee complaint hotline and employee suggestion boxes;

(1)     Employees can reflect and solve related problems through channels such as employee complaint hotlines and employee opinion mailboxes.

(2)     Setting up medical clinics or arranging for doctors to be stationed there on a regular basis to provide services related to psychological counselling.

(3)     Arranging for lectures and inviting experts to give speeches to publicize and answer questions related to employees' self-protection and protection of their rights.

3. Punishment

According to the seriousness of the situation, the person or department responsible for the incident will be punished according to the relevant regulations of the Group.

Occupational Health and Safety

-Compliance with Relevant International Standards and Regulations on Occupational Health

The group strictly complied with ISO 45000, the Law on Production Safety of the People’s Republic of China, the Fire Protection Law of the People’s Republic of China, the Law on Prevention and Control of Occupational Disease of the People’s Republic of China, the Regulations on Worker’s Compensation Insurance and the Regulations on Public Health Emergencies, the Regulations on the Safety and Management of Hazardous Chemicals and other various national and international laws and regulations. At the same time, we have formulated internal management guidelines such as the Management Measures for Work Safety in Construction Projects and Management Measures (Inspection) for Infrastructure Equipment(Trial) to standardize the supervision and management of the Group’s safe production, which apply to all of the Group’s businesses and employees, as well as contractors or individuals under the Group’s supervision. The implementation and effectiveness of this policy have been acknowledged and approved by the Board of Directors, and are regularly included in the agenda of Board meetings for review and guidance.

-Occupational Health and Safety Action Plan and Work-related Injury Accident Investigation and Handling

The group and each unit need to comprehensively revise and sign the Responsibility Letter for Safety, Environmental Protection and Quality Targets every year according to the actual situation, and make a summary report on safety production at the end of the year. Moreover, the headquarters of the Group will issue the key work arrangements for safety production in the next year to each unit to ensure that each operating unit clearly understands its position in the Group’s safety production system and its safety production responsibilities.

We have established the Measures for the Supervision and management of work safety, and the Overall Emergency Response Plan for EHS Accidents, clearly defining the emergency response procedures for different levels of sudden incidents, as well as requirements for terminating emergency responses, reporting production safety accidents, and post-incident handling, with the aim of preventing or mitigating significant negative occupational health and safety impacts. Additionally, we have established a dual prevention mechanism for risk grading control and hazard identification and rectification. We conduct year-end spot checks and on-site inspections, with affiliated units conducting safety risk identification and grading, formulating control measures, and entering them into the Smart General Safety Production Information System. We also organize various health and safety training activities in conjunction with “Safety Production Month” and “Occupational Disease Prevention Law Promotion Week.”

The Group has commissioned a qualified independent certification body to conduct third-party certification and annual external audits of its occupational health and safety management system in accordance with international standards. Genertec Universal Medical Technology Services (Tianjin) Co., Ltd. has obtained ISO 45001 management system certification. The Group regularly organizes internal inspections, with a dedicated safety management team conducting on-site inspections and supervision of the implementation of the system across all departments to ensure its effective implementation. Additionally, the Group has incorporated occupational health and safety standards into procurement contracts with suppliers and partners, requiring partners to comply with relevant regulations to ensure the entire supply chain meets safety and health requirements.

In 2024, the Group did not experience any production safety accidents or major adverse occupational health and safety incidents.

-Commitment to Continuous Improvement of OHS Management System Performance

The Group has been conducting ongoing communication and consultation with employee representatives to continuously standardize and refines its occupational health and safety management system and continuously monitors its occupational health and safety management system. We ensures that our employees are able to work in a healthy and safe environment by means of a comprehensive occupational health and safety management system. At the same time, in order to enhance the safety awareness and skills of its employees, we actively conduct occupational health publicity and training, organize free clinics, lectures, and distribute brochures to help stakeholders understand preventive occupational disease measures. We also persist in hosting diverse health-related activities and lectures, covering topics such as mental health, nutrition, fitness, first aid, oral care, and traditional Chinese medicine therapy. These efforts aim to convey health concepts, share knowledge, and care for employees' physical and mental well-being.The Group is actively engaged in various safety trainings to reduce the risk of work-related injuries or hazards of occupational diseases, and to continually improve the Group's occupational health and safety system to enhance the performance of its occupational health and safety management.

-Quantitative targets for improving OHS performance indicators

Universal Medical sets applicable occupational health and safety performance objectives in accordance with the Group's occupational safety policy, with the overall objective of eliminating the occurrence of fatalities, serious injuries (including acute occupational poisoning) to three or more people at a time or direct economic losses of 1 million yuan or more in production safety accidents, and large and above environmental pollution incidents and acute occupational disease hazards.

Other related objectives include:

1.100% occupational health inspection rate of employees engaged in operations exposed to occupational disease hazards before, during and after leaving work;

2.100% wear and use rate of labour protective equipment;

3.100% Rectification Rate of Production Safety Hazards;

4.100% education and training rate for employee security;

5.100% certification compliance rate for special operation personnel, and 100% inspection and testing rate for special equipment;

6.100% insurance coverage rate for work-related injury insurance among employees;

7.100% compliance rate with the "Radiation Protection and Safety Requirements for Nuclear Medicine" (HJ 1188-2021) in the management of medical radioactive sources;

8.Eliminate occurrences of being penalized by relevant authorities due to safety and environmental incidents. In the event of any such occurrence, ensure 100% timely and accurate reporting, without any delay, omission, or concealment.

At the beginning of each year, the group signs a Work Objective Responsibility Agreement for Safety, Environmental Protection, and Quality with all its subordinate units, clarifying the quantitative objectives of each unit in terms of occupational health and safety, which are signed and confirmed by the primary responsible persons of each unit. The Group monitors the achievement and progress of its occupational health and safety goals through various means such as unannounced safety inspections, special campaigns, and the Group's information platform for work safety. At the end of the year, the Group summarizes the completion status of these goals.

Employee Care

-Employee Support Program

Universal Medical places a high priority on the physical and mental well-being of its employees and their work-life balance, and has established a comprehensive and transparent employee support program. We offer stress management courses and an employee assistance hotline in the workplace, and encourage employees to participate in regularly organized health lectures, fitness activities, and stress-relief training to help them maintain their physical and mental health and stay in good working condition. In terms of working conditions, the Group implements flexible working hours and offers part-time work options to create a more flexible and employee-friendly work environment.

Additionally, Universal Medical prioritizes family support. On one hand, we provide lactation rooms for employees in need, making it convenient for breastfeeding employees to use. Primary caregivers are eligible for standardized paid parental leave, with a total of 22.6 weeks of paid parental leave available. Non-primary caregivers may also receive a certain amount of paid parental leave, with paternity leave lasting 2 weeks. Furthermore, we provide additional paid family care leave for employees caring for family members with physical or mental health conditions. We also offer employee children's holiday childcare programs, providing support such as physical activities, eye exercises, homework assistance, and interest-based courses for employees' children (children). These initiatives help employees balance their personal and professional responsibilities, promoting sustainable development for both employees and the Group. By the end of the 2024 fiscal year, we have achieved full coverage of non-salary benefits for all company employees.

-Focus on Employee Mental Health

We place great importance on employees' mental health, have identified potential psychological risks, and implemented effective management measures. The Group provides all employees with mental health counselling services through the “Universal Healthcare Platform,” conducting regular mental health assessments, support services, work environment analyses, and employee feedback collection to identify potential sources of psychological stress and ensure that mental health risks are effectively managed. The Group continuously carries out mental health training and education, and through employee care live-streamed lectures, helps employees recognise potential mental health risks they or others may face. At the same time, the Group offers counselling packages and free telephone counselling services to provide timely support for employees with mental health issues, and implements rehabilitation and return-to-work programmes to ensure that employees can successfully resume work and regain professional confidence.

In terms of sports and health initiatives, the Group actively promotes a healthy lifestyle by establishing sports interest groups covering football, basketball, table tennis, badminton, and other activities. The daily activity expenses are borne by the labor union, encouraging employees to enhance physical fitness, relieve stress, and promote communication through sports. We persist in hosting diverse health-related activities and lectures as well as interactive activities, covering topics such as mental health, nutrition, fitness, first aid, oral care, and traditional Chinese medicine therapy. These efforts aim to convey health concepts, share knowledge, and care for employees' physical and mental well-being.

The Group regularly collects information on employees' mental health issues and conducts risk analyses to evaluate the effectiveness of its mental health management measures and ensure they meet employees' actual needs. Through an internal review mechanism, the Group regularly examines its existing mental health management measures, identifies areas for improvement, and optimizes them to better support employees' physical and mental well-being.