The year 2025 marks the conclusion of the 14th Five-Year Plan, the tenth anniversary of Universal Medical’s public listing, and a pivotal year for deepening our ESG practices and strengthening the foundations of sustainable development.

Over the past decade since listing, our ESG journey has evolved from exploratory efforts to systematic advancement, and from passive compliance to active innovation. ESG is now deeply integrated into every stage of strategic planning and business operations. As a listed company controlled by the central government, we have consistently fulfilled our political, economic, and social responsibilities, keeping the nation’s overarching priorities firmly in mind. Through our business practices, we support the “Healthy China” initiative and strive to ensure that the fruits of development are more equitably and broadly shared among the people. To this end, we have proposed four major ESG strategic goals: through continuously enhanced corporate governance, we endeavor to align corporate development with serving the people, with the growth of our employees, with environmentally sustainable development, and with mutual benefits for all stakeholders. These goals guide our efforts to enhance the company’s social, brand, and capital market value.

Driving green development, we leverage green finance and green healthcare to promote harmony between humanity and nature, and to advance environmental sustainability. Carbon peaking and neutrality have been integrated into China’s overall economic and social development, with green becoming a defining feature of high-quality development. Adhering to a green development philosophy, we pursue a dual-pronged strategy of “green finance + green healthcare” to build a “Green Universal Medical,” striving to align corporate growth with environmentally sustainable development.

On the financial services front, we are committed to channeling financial resources to nurture the growth of green industries. We continue to focus on key areas such as photovoltaic new energy, wastewater treatment, and green transportation, supporting urban green transformation and driving diversified growth in green finance. Our ESG syndicated loan pioneered a mechanism linking both green and livelihood key performance indicators. Multiple sustainability-linked corporate bonds and asset-backed special plans have been successfully implemented, setting standards for standardized green finance and promoting its regulated, scaled development. To date, the company’s green credit, green bonds, and sustainable financial derivatives collectively exceed RMB 16.8 billion, continuously fueling the low-carbon transition of industries.

On the medical services front, we are building green, low-carbon hospitals through an integrated approach encompassing buildings, equipment, and management. New and renovated hospitals fully embrace sustainable development principles, employing energy-efficient equipment, eco-friendly materials, and intelligent monitoring and control systems to effectively reduce building energy consumption. We actively utilize green, economical, low-carbon, and smart energy systems, and have built an integrated smart logistics management platform to significantly enhance logistics efficiency. All core hospital application systems have been unified under cloud-based management, reducing infrastructure investment and maintenance costs by approximately 30%, and substantially saving electricity and energy. By the end of 2025, the company’s energy consumption per unit of building area had decreased by over 7% compared to 2020, and carbon emissions had fallen by more than 8%, successfully achieving the goals set in the 14th Five-Year Plan.

Regarding climate response, we actively participated in the simulation tests for China’s Ministry of Finance’s corporate sustainability disclosure standards, voluntarily benchmarking against major international disclosure frameworks to enhance the transparency and governance of climate-related disclosures. We have charted a clear low-carbon development path, advancing carbon reduction initiatives across multiple dimensions including sustainable investment and financing, operational energy conservation and emission reduction, and green technology applications, taking concrete actions in response to the national “dual carbon” strategy.

Benefiting the people with compassion, we provide accessible, high-quality medical services for public good, strengthen healthcare through technological innovation, give back to society as a central government owned entity, remain true to our original aspiration of serving the people, and set a benchmark in healthcare delivery. As a vital component of China’s medical and health service system, centrally owned healthcare providers shoulder multiple responsibilities: ensuring basic medical services, responding to public health emergencies, driving medical research and innovation, and exploring new models of healthcare. Universal Medical remains committed to integrating social responsibility into the entire chain of medical services, health technology, and philanthropic practices, striving to align corporate development with serving the people.

Leveraging our medical expertise, nearly 70 of our affiliated healthcare institutions are deeply rooted in their local communities, excelling in health services and public welfare, and tangibly enhancing the health and well-being of the people. We actively organize charitable activities such as community health clinics to bring medical resources to the grassroots level. Over the year, we conducted more than 980 free clinic events, serving over 80,000 residents and workers. We established and donated to public welfare funds, accumulating over RMB 6 million over four years to provide medical assistance to 1,650 struggling families. We actively advanced the “Ten, Hundred, Thousand” public welfare aid project, making cutting-edge international medical technologies accessible to more families. We continuously innovate medical service models and fulfill the social responsibilities of a central government owned entity. The General Hospital of Panzhihua Iron and Steel, leveraging aviation rescue partnerships, has established a “one-hour life circle” covering remote mountainous areas of Liangshan Prefecture; the “Air 120” successfully rescued 61 critically ill patients over the year, flying over 7,000 kilometers. The psychiatric hospital of Zhongtie Huazhou Hospital fully undertakes management and service functions entrusted by the local government, achieving comprehensive management and service closure for individuals with mental disorders in the region.

Driven by our core medical capabilities as the engine, supported by specialty medicine and health technology as two wings, we better meet the diverse, multi-tiered health needs of the people. We deepen cooperation with national-level scientific and technological forces, establishing the Universal Medical New Technology Transfer Center of the National Key Laboratory of Digestive Health to continuously empower our hospitals to enhance specialty service capabilities. Leveraging the policy advantages of Hainan Lecheng’s “special licensed medical devices and drugs,” we innovatively introduced China’s first Edison Histotripsy ultrasound tissue fragmentation tumor treatment device, providing world-leading treatment solutions for liver cancer patients. We strengthen smart hospital construction, offering integrated internet medical services to nearly 300 healthcare institutions under Genertec, with the platform registering over 6 million users and serving more than 50 million patients. We developed an intelligent triage agent and deepened AI-powered Q&A capabilities, significantly improving medical efficiency and service accuracy. We are developing smart pharmaceutical services, using a platform-based prescription circulation system to connect the entire chain of diagnosis, treatment, and pharmacy, expanding new service models. Furthermore, through lean management, we systematically advance medical service process optimization and model innovation, comprehensively enhancing the convenience and sense of gain from medical services, reducing various costs by RMB 27.98 million over the year and saving patients 5,347 hours of waiting time.

Strengthening foundations through good governance, we rely on a robust governance system and broad-based participation to support the shared growth of the company and its employees, and to promote win-win outcomes with stakeholders. “Good governance” is the fundamental safeguard for navigating change, solving complex problems, enhancing competitiveness, and protecting the rights of all parties. Universal Medical consistently regards governance capability as the core bedrock of sustainable development. We cultivate responsible governance, promote compliant operations, and steer high-quality corporate development with high-standard governance. We have established a governance structure with clearly defined powers and responsibilities, strong oversight, and efficient operation, fully leveraging the decision-making and supervisory roles of the Board of Directors and its specialized committees. We adhere to transparency and accountability, improve information disclosure mechanisms, and protect the legitimate rights and interests of shareholders (especially minority shareholders). We strictly observe compliance boundaries, improve compliance management and anti-corruption systems, maintain zero tolerance for corruption, and conduct regular integrity education to fortify risk defenses. We have built a multi-layered risk management and internal control system to accurately manage various business risks, identify and manage ESG and emerging risks, and comprehensively enhance the company’s resilience against risks.

Universal Medical attaches the highest importance to employee growth and development. We are committed to translating employee satisfaction into patient and client satisfaction, fostering a workplace environment that is safe, equitable, and inclusive, and strengthening our talent development and career progression systems — striving to achieve alignment between corporate development and employee growth. We maintain open and democratic communication channels, actively listening to employees’ voices through workers’ congresses, leadership open days, and the “I Want to Ask” feedback platform, thereby reinforcing employees’ sense of belonging and engagement. We are strengthening our talent pipeline by establishing a tiered and categorised training system that covers all employees, delivering training to 35,000 person-times over the year. We have firmly upheld employee health and safety standards, comprehensively implementing the “Work Safety Month” campaign, with zero workplace safety incidents recorded during the reporting period. We have refined our employee welfare and rights protection mechanisms, extending care to employees facing difficulties, safeguarding personal privacy, and regularly providing targeted support relating to maternity leave, retirement, and other occasions, with over 140 cultural and recreational activities organised throughout the year.

Through responsible governance, Universal Medical safeguards the company’s sustainable value. By integrating industry and finance, health technology, and other practical approaches, we join hands with all parties to build a bright future for medical and health, striving to achieve win-win outcomes with stakeholders. We provide financial support to local state-owned enterprises, listed companies, and high-quality private enterprises, courageously fulfilling our mission in serving the development of modern industrial systems and the principal responsibilities of central enterprises. Through the “two-way empowerment” of finance and industry, we are advancing along the path from “capital provider” to “ecosystem co-builder” in industry-finance integration. Universal Medical Equipment Services specializes in full lifecycle management of medical equipment, utilizing core business platforms such as IoT systems and asset lifecycle management to significantly enhance equipment operation and management efficiency. Serving over 1,600 hospital clients and managing a total equipment asset value exceeding RMB 40 billion, we address operational pain points through model innovation and unlock equipment value through technological intelligence. Universal Qingniao has established a smart healthcare and elderly care service system spanning 24 provinces (municipalities) nationwide. Its online platform serves 5,410 medical and elderly care institutions, and its offline operations manage over 73,000 home-based elderly care beds. By leveraging “medical + financial” resources and “technology + operational” capabilities, we empower local governments, healthcare and elderly care institutions, families, and other key stakeholders, turning the vision of “providing for the elderly and treating the sick” into tangible reality.

Over the past decade since listing, Universal Medical has become one of the first China Early Adopters of the International Sustainability Standards Board (ISSB) and a member of the United Nations Global Compact (UNGC). In the S&P Global Corporate Sustainability Assessment (CSA), we ranked first among domestic peers and near the top globally. We were recognised as “Best Industry Mover” in the S&P Global Sustainability Yearbook 2025 (China Edition) and selected for inclusion in the Sustainability Yearbook 2026 (Global Edition). Furthermore, the Company has been included in CCTV’s “Top 100 ESG Listed Companies Pioneer” rankings for three consecutive years, and our ESG governance case were featured in the Blue Book on ESG of Central Government owned Enterprise Listed Companies (2025), published by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC). These achievements are by no means coincidental. As a listed company held by a central government wholly-owned entity, all of our endeavours and practices have consistently moved in concert with the nation’s green transformation.

2025 marks the tenth anniversary of the adoption of the United Nations 2030 Agenda for Sustainable Development and the Paris Agreement, as well as the twentieth anniversary of President Xi’s “Two Mountains” theory. This year, President Xi  made a solemn declaration of China’s new round of nationally determined contribution targets at the United Nations Climate Change Summit, demonstrating China’s resolve as a responsible major country in leading global climate governance through a more ambitious action plan, while injecting powerful momentum into the green and low-carbon transformation of the domestic economy and society. In the healthcare sector, as the “Healthy China 2030” strategy continues to deepen, the industry is accelerating its transition from scale-driven expansion to quality-driven development. The outline of the national 15th Five-Year Plan sets out clear directions including the “Medical and Health Infrastructure Strengthening Project,” “Advancing Digital and Intelligent National Health Development,” and “Accelerating Green Production and Lifestyles,” charting a course for us to accelerate energy conservation, emission reduction, and green hospital construction in the environmental dimension; strengthen grassroots healthcare delivery and health equity in the social dimension; and advance digital intelligence and risk governance systems in the governance dimension.

“Those who do right by the green mountains will find the green mountains do right by them.” ESG has never been an optional extra — it is the intrinsic safeguard that enables enterprises to navigate a steady and far-reaching course. Standing at the threshold of the 15th Five-Year Plan, Universal Medical will continue to be guided by its ESG strategy, driven by innovative mechanisms, and sustained by ESG practices. We will fully leverage the synergistic strengths of our medical, industrial, and financial capabilities, and strive to construct a shared and mutually beneficial grand health ecosystem. We will sharpen our positioning in the construction of “Healthy China,” lead the way in green transformation, break new ground through governance innovation, and aspire to be a vanguard in the practice of ESG and sustainable development — contributing Chinese wisdom and central government owned entity strength to the cause of global sustainability.