Welcome to Universal Medical
ESG
Chairman's Message

As the global consensus on sustainable development deepens, Environmental, Social, and Governance (ESG) has become a key issue of common concern to governments, enterprises, and the market. As a state-owned enterprise-controlled listed company focusing on the development of the medical and health as well as financial sectors, years of practical exploration have made us deeply aware that ESG is not an "additional question" that adds luster to the enterprise, but a "mandatory question" related to the enterprise's sustainable development and long-term value enhancement. Adhering to the philosophy of "delivering benefits to the people, motivating employees, and promoting career development", Genertec Universal Medical closely integrates its own development with national strategies, people's livelihood needs, and ecological responsibilities, and strives to explore a sustainable development path that embodies the responsibility of state-owned enterprises and industrial characteristics.

Strategy-Led: Deep Integration of ESG and Corporate Strategy

ESG is not an isolated initiative; it emphasizes the maximization of comprehensive economic, social, and environmental values, and should serve as the starting point for corporate strategic planning, the "navigator" for high-quality development, and the highest standard for corporate governance. Looking back, Genertec Universal Medical's ESG construction has undergone a transformation from exploration and experimentation to systematic promotion, and from passive compliance to active innovation, and has now been deeply integrated into all aspects of business development.

·  Concept Upgrade: The identity and mission of a state-owned medical and health industry group determine that we must not only attach importance to the economic attributes of the enterprise, but also firmly fulfill our political and social responsibilities, keep in mind the "major national strategies", contribute to the construction of Healthy China through business practices, and ensure that the fruits of development benefit society and the people. Based on this, starting from the development vision, Genertec Universal Medical has gradually clarified its ESG philosophy and put forward the strategic goals of "coordinating enterprise development with serving the people, coordinating with employee growth, coordinating with environmental sustainable development, and achieving win-win results with stakeholders". By focusing on the harmonious coexistence and sustainable development of all parties, the company is driven to enhance its social, brand, and capital market value.

·  Strategy Integration: At present, Genertec Universal Medical's ESG construction has officially entered the strategy-driven stage. On the basis of summarizing practical experience, the company has formulated an ESG strategic plan, established a "1444N" work system, improved the ESG management closed-loop, promoted the integration of ESG into Universal Medical's overall strategic system, and ensured that various strategic indicators fully support the implementation of the ESG philosophy. In 2025, we formulated Universal Medical's 15th Five-Year ESG Special Plan, which will guide the medium and long-term development path with the five-year plan and build a sustainable development model with Universal Medical's characteristics.

Responsibility as the Foundation: People's Livelihood Achievements Demonstrate the Responsibility of State-owned Enterprises

Fulfilling social responsibility is the inherent mission of state-owned enterprises. Under the leadership of China General Technology (Group), Universal Medical adheres to the public welfare nature of the medical cause, places "delivering benefits to the people" at the top of its development purpose, continuously strengthens system, technology, model, and management innovation, and comprehensively improves the level of medical service guarantee. At the same time, adhering to the concept of "making medical services available to more people", it continues to make efforts in medical rescue, assistance, poverty alleviation, public welfare relief, etc., and conveys care and warmth through professional medical strength.

·  Medical Assistance Abroad, in Tibet, and in Xinjiang: Universal Medical actively implements the "Belt and Road" Initiative, conducts medical assistance across mountains and seas in Africa, Central Asia, etc., promotes health cooperation, and builds a "Health Silk Road". Over the past decade, hundreds of medical staff have been dispatched to Xinjiang, Tibet, and other places to help the development of health undertakings in border areas. In 2024, the "Roof of the World" Medical Service Team participated by China Railway Xi'an Hospital, a subsidiary of the company, won the title of "Model Central State-owned Enterprise".

·  Assisting Poverty Alleviation and Rural Revitalization: Universal Medical has invested nearly 20 million yuan in assistance funds in Wuchuan County and Shangdu County, Inner Mongolia, donated a "Xiaotong Mobile Diagnosis and Treatment Vehicle" to Shangdu County, and established a digital medical consortium health platform for the People's Hospital of Taxkorgan County, Xinjiang, solving the problem of medical treatment in remote areas. Medical teams from various hospitals under Universal Medical go deep into villages and communities to provide multi-disciplinary free clinics, health consultations, and free inspections, delivering health benefits.

·  Engaging in Social Welfare: Universal Medical has jointly launched public welfare fund projects with the China Primary Health Care Foundation, covering specialized diseases such as orthopedics, oncology, major neonatal diseases, and cardiovascular and cerebrovascular diseases, solving the treatment problems of economically disadvantaged patients with acute and severe diseases. By the end of 2024, more than 1,600 patients have been assisted, achieving good social response.

·  Supporting Employee Development: Universal Medical attaches great importance to employee care and development, continuously drives patient satisfaction and customer satisfaction with employee satisfaction, carries out special projects to improve employee satisfaction, creates a safe, equal, and inclusive workplace environment, focuses on talent training and development, smooths promotion channels, and enables employees to grow together with the organization.

Green Empowerment: A New Low-Carbon Paradigm for Medical and Financial Scenarios

Carbon peaking and carbon neutrality have been incorporated into the overall layout of China's ecological civilization construction and the overall economic and social development, and green has increasingly become a distinct background color of high-quality development. Combining the characteristics of its main business, Universal Medical focuses on green financial innovation and green medical construction practices to build a "Green Global Healthcare" and work with the whole society to protect the ecological environment.

·  Green Financial Practices: Universal Medical pays attention to green financial projects, explores the development and innovation of green financial products, and has issued more than 10 billion yuan of ESG or green-labeled loans, bonds, and derivatives, injecting funds into environmental protection projects such as clean energy and sewage treatment, and promoting the vigorous development of the green industry. In 2024, Universal Medical issued 2.477 billion yuan of sustainable and green bonds, 1.477 billion yuan of ESG-linked derivatives, and the scale of green credit reached 7.053 billion yuan, continuously practicing the concept of "finance for good".

·  Green Hospital Construction: Universal Medical creates high-quality green and low-carbon hospitals through a trinity of energy-saving measures in buildings, equipment, and management. When constructing and renovating hospitals, it fully implements the concept of sustainable development, uses energy-saving equipment and materials, configures intelligent monitoring and control systems, and effectively reduces building operation energy consumption. At the same time, it actively uses green, economical, low-carbon, and intelligent energy systems, builds an integrated smart logistics management platform, and improves logistics management efficiency. It is expected that by the end of 2025, Universal Medical's energy consumption per unit of building area will be reduced by more than 5% compared with 2020, and carbon emissions will be reduced by more than 7%.

Innovation-Driven: Building a Grand Health Ecosystem with ESG philosophy

Against the background of profound changes in the global medical and health industry, ESG provides a guarantee for the sustainable development of enterprises and also provides a strategic framework and direction guidance for systematic innovation. Universal Medical has always regarded innovation as the core driving force for sustainable development, guided business model and technological innovation with ESG thinking, and strived to build a new vision of a grand health ecosystem featuring value sharing and win-win results for all parties.

·  Business Model Innovation: In helping the construction of Healthy China, serving the real economy, promoting industrial upgrading, and improving people's livelihood, Universal Medical has actively explored the coordinated path of "medical treatment, industry, and finance", improved medical service capabilities, explored specialized medical fields, laid out technological lines such as smart medical care, elderly care, and rehabilitation, and equipment life-cycle management, realizing the effective expansion of the medical and health industry chain. It has innovatively launched a one-stop "financial leasing plus" solution, deeply integrating financial services with medical, elderly care, and rehabilitation services, and injecting new momentum into the high-quality development of the industry. In the future, we will continue to tap industry needs, explore new models of industry-finance integration, and achieve a win-win situation of economic value and social value.

·  Technology Integration and Innovation: Technological innovation is an important driving force in the fields of ESG and sustainable development. At present, Universal Medical is actively building a trinity smart hospital construction system of smart medical treatment, smart services, and smart management, and has achieved positive results: the construction of a shared database for core business systems and the cloud deployment of application systems have significantly reduced digital construction investment; innovative applications such as medical imaging AI, Internet health platforms, and health managers have significantly improved hospital operation efficiency and patient medical service experience. We are well aware that China's medical and health industry will usher in a new round of profound changes. Universal Medical will also seize the opportunity, use innovation as a fulcrum to drive industrial upgrading, strengthen the intensive construction of the group's AI innovative application platform, give play to the digital and intelligent capabilities of the data center, empower the high-quality development of the medical and health industry, and become a creator and disseminator of sustainable value.

"When people live up to the green mountains, the green mountains will surely live up to people." For enterprises to achieve sustainable development, they need to integrate into national strategies and combine commercial, social, and environmental values. In the future, guided by the ESG philosophy, Universal Medical will continue to find its position in the construction of Healthy China, take the lead in green transformation, solve problems in governance innovation, and contribute Chinese wisdom and state-owned enterprise strength to global sustainable development.