Environmental Goals

Universal Medical has actively set various environmental protection goals and regularly monitors their achievement. The following are the annual environmental goals set by Universal Medical, along with actual resource consumption and emission data. According to statistics, all the targets of Universal Medical for 2024 have been achieved as scheduled.

Energy Conservation and Emission Reduction

The Group has established a definitive low-carbon transition strategy, committing to continuous reduction of greenhouse gas emissions across all operational activities, enhancement of energy efficiency, and increased investment in clean energy technologies and green innovation. We have formulated long-term sustainability goals to systematically advance energy management and energy conservation initiatives across our hospital network, while progressively implementing renewable energy solutions such as solar and photovoltaic power generation. These efforts are driving the green transformation of our hospital infrastructure development.

The group signed a safety, environmental protection and quality work objectives and responsibilities with the subordinate units, and effectively urged the units to fulfil the main responsibility for environmental protection, and adopted a series of energy-saving and emission reduction measures in the office premises and its hospitals, including:

• Maximize the use of natural lighting, ventilation, and green design in hospital design to boost energy efficiency and enhance indoor environmental quality;

• Preferential purchase of energy-efficient electrical appliances, phasing out high energy-consumption lamps and replacing them with energy-saving lamps;

• For the lighting of public places such as stairs, corridors, toilets, etc., automatic control devices such as time delay switches or induction switches with mature energy-saving technology should be installed as appropriate to prevent turning on the lights all the time;

• For office equipment such as computers, copiers and fax machines, cut off the power in time when not in use to reduce standby consumption;

• Strictly implement air-conditioning operation regulations, do not open doors and windows when the air-conditioning is turned on;

• Strictly implement the Measures on Driver and Vehicle Management, promote sharing of official vehicles, and reduce separate dispatch of vehicles;

• Adhere to standard driving, maintain on time, reduce abnormal loss of vehicle components, and strive to reduce fuel consumption and maintenance costs of vehicles;

• Encourage short-distance commuting, walking, cycling or using public transportation such as subways and buses as much as possible.

Waste Management

The Group strictly complies with relevant laws and regulations, such as the Solid Waste Pollution Environment Prevention and Control Law of the People's Republic of China and the Pollution Control Standards for Hazardous Waste Storage. The Group has continued to implement, promote and optimize energy conservation and emission reduction. In 2024, the Group did not have any violations in respect of emission throughout the year. In order to improve the treatment methods for medical waste and wastewater, the Group formulated the Measures for Supervision and Management of Environmental Protection and implemented a series of normative measures to manage the Group’s waste and wastewater discharge in a more refined manner. Some of measures that have been implemented are as follows:

• We should deal with the hazardous wastes (including medical waste) stipulated in Directory of National Hazardous Wastes, strictly according to Law of the People’s Republic of China on the Prevention and Control of Environment Pollution Caused by Solid Wastes, and we shall not dispose the wastes randomly;

• It is forbidden to dump or stack medical wastes or mix medical wastes with other wastes and domestic garbage in non-storage locations;

• According to the category of medical waste, it is placed in special packaging or closed containers that prevent leakage and sharp penetration;

• Special packaging and containers for medical waste should have obvious warning signs and instructions;

• Wastewater, waste residues, waste oil, waste acid, alkali waste or toxic liquid are prohibited to enter into the drainage systems;

• Industrial waste residues, rubbish and other solid waste are strictly prohibited to enter into the drainage systems;

• The environmental protection management personnel of each medical institution shall count and record the types, quantities, and concentrations of pollutants discharged by the wastewater discharge facilities, treatment facilities and in normal operating conditions to ensure that the sewage discharge limit meets the relevant requirements of the Comprehensive Wastewater Discharge Standard.

The Group maintains regular communication with stakeholders, including government, employees, suppliers, and community representatives. We engage in discussions concerning pollution discharge, waste management, and associated health risks, as well as mitigation measures. This ensures that all parties have a thorough understanding of and support for the Group’s environmental management practices. To guarantee the effectiveness of these measures, Universal Medical regularly collects relevant data on waste treatment and emission control and conducts environmental risk assessments and trend analyses. Based on the information gathered, the Group continuously improves its practices and enhances its pollution prevention efforts. Regular reviews of existing waste management and pollution control programs help identify areas for improvement. Optimization plans are then developed to boost environmental performance and fulfill the company’s commitment to sustainable development.

Creating a Circular Business Model

The Group actively implements circular economy measures to reduce resource waste and improve resource efficiency. It adopts a circular design concept in daily operations, which includes optimizing resource use, increasing product recycling rates, and reducing waste emissions. The Group also encourages suppliers to adopt environmentally friendly designs and use recycled materials to minimize the environmental impact throughout the product life cycle and promote the circular economy concept across the value chain. Additionally, the Group carries out energy - saving and environmental protection campaigns. It raises employees’ awareness through initiatives such as issuing environmental proposals and conducting training seminars. The Group advocates that all units actively practice and enhance energy efficiency through technological and management approaches.

To ensure the effectiveness of these initiatives, the Group regularly collects relevant information and conducts risk assessments to guarantee proper implementation and desired outcomes. Universal Medical has also established a review mechanism to regularly evaluate its practices and enhance its management of the circular economy.

Water Resources Usage

The Group fully recognizes the importance of water resources and actively enhances water - use efficiency and protects water resources. The Environmental Protection Supervision and Management Measures it has issued include water resource management and conservation - related systems and encourages all employees to strengthen their water - conservation awareness. The Group seeks to influence and promote suppliers' attention to water shortages through supply chain management. It requires suppliers to take water - saving measures in production and services and to comply with relevant water resource management laws, regulations, and standards. The Group's daily water use mainly comes from municipal pipeline water supply, and there is no difficulty in securing water sources. We advocate and encourage employees to save water during daily work. Some of the main water-saving measures are as follows:

• Gradually replace faucets and sanitary ware in the office area with water-saving appliances to prevent water evaporating, emitting, dripping, leaking and flowing for a long time;

• Regularly check whether exist water evaporating, emitting, dripping, leaking and flowing for a long time of water equipment, and the employees shall contact in time the relevant personnel for repair;

• Check water usage during daily washing, not washing vehicles with high-pressure clean water.

To ensure the accuracy and transparency of water - use accounting and performance data, we have commissioned qualified independent third - party agencies to verify and validate these metrics. Moreover, the Group regularly reviews its current water resource management practices and enhancement plans to identify potential areas for improvement and to continuously optimize its water management strategies. This ongoing process aims to elevate the Group's overall environmental performance.

Climate Resilience

The company recognizes that climate change presents various risks and opportunities to our business and society as a whole. To proactively address the challenges related to climate change, we conduct regular annual reviews and assessments of significant climate-related issues. We integrate climate risks into our Group’s internal risk management mechanisms, considering changes in the external environment. The Group has formulated the Emergency Management Measures for Sudden Incidents and the Overall Emergency Response Plan for EHS Accidents to mitigate or eliminate the adverse effects of extreme weather.

Additionally, the company has established a Strategy and ESG Committee, which regularly reviews and provides recommendations on the management of climate risks and opportunities to the Board of Directors. Managing climate risks and opportunities is a core part of our strategy. We have set clear and measurable climate risk management objectives. We have engaged independent organizations to verify our greenhouse gas emissions and regularly assess our performance against our climate risk management goals.

By analyzing and comparing the data, we identify the effectiveness of our current measures and the areas for future improvement. We regularly update and disclose the results of our climate risk assessments to transparently demonstrate our climate governance effectiveness and future plans to stakeholders. Our climate change risk and opportunity assessments cover not only our own operations but also extend to various stages of our supply chain. This comprehensive assessment framework helps us identify and analyze short-term, medium-term, and long-term climate risks, ensuring our business remains resilient under changing climate conditions.

Biodiversity Protection

The Group places high importance on the sustainability of the ecological environment and actively engages in biodiversity conservation to address related risks and opportunities. This initiative sets key objectives for protecting priority areas, species, and ecological functions, and implements them through green building, ecological restoration, and environmentally friendly procurement. The Group regularly communicates with stakeholders on biodiversity issues and plans to conduct biodiversity risk assessments. Many of the Group's subsidiaries are medical institutions, and none of its operations are located near areas of global or national biodiversity significance. The Group is committed to avoiding such situations in the future.

A strict policy prohibits the use of rare, endangered species, and scarce materials in operations and the supply chain to reduce the negative impact on natural resources at the source. The Group continuously measures and evaluates the environmental benefits of its products and operations, such as reduced energy consumption, waste reduction, and lower carbon emissions, to quantify the results of its green transition. To further promote green procurement, the Group actively uses materials certified by environmental or ecolabel certification, including FSC - certified wood and other environmentally friendly materials meeting green label standards, to support sustainability through procurement.

In workplace and surrounding environment construction, the Group integrates nature - connected design concepts. It uses green building materials, introduces natural light, and adds green vegetation areas to create a healthy, comfortable, and environmentally friendly office atmosphere, thereby enhancing employee well - being and environmental performance. By collecting data on environmentally friendly design and green operations, and regularly conducting risk assessments and reviews, the Group ensures the effectiveness of implemented measures, promptly identifies management deficiencies, and continuously improves green operations and ecological protection.

Sustainable Procurement

To promote shared environmental responsibility across the supply chain, the Group has established sustainable procurement - related policies. When purchasing equipment, it prefers products with low energy consumption and meeting environmental standards, and encourages suppliers to reduce resource use and environmental impact during production, transportation, and services.

To ensure effective implementation of green procurement policies, the Group regularly collects procurement - related information, assesses the proportion of green product and service purchases and their environmental benefits, and analyzes potential environmental and social risks in the supply chain. This strengthens sustainable procurement process management. Additionally, a regular review mechanism has been set up to systematically examine policy implementation and optimize procurement standards and processes, thereby continuously improving the environmental performance and social responsibility of the supply chain.

Management of Nature - Related Risks and Opportunities

The Group actively responds to the framework requirements published by the Taskforce on Nature - related Financial Disclosures (TNFD). It systematically identifies, assesses, and manages nature - related risks and opportunities, and regularly discloses the status of nature - related risk management to stakeholders. This enhances the transparency and management level of environmental information.

To ensure the effectiveness of management measures, Universal Medical regularly collects relevant information on implementation, conducts nature - related risk and opportunity analyses, and has established a systematic review mechanism. This enables timely identification of improvement areas in current practices and the optimization of ecological management strategies.

Environmental Management and Data Management

The management team at Universal Medical has established a Safety, Environmental Protection, and Quality Committee, which holds 1-2 times annual meeting to lead and research the company's energy-saving and environmental protection work. We sign the Safety, Environmental Protection, and Quality Work Target Responsibility Letter with affiliated units to ensure that every aspect of the company’s operations strictly complies with environmental regulations.

The Group has established and implemented a systematic data management mechanism for collecting, consolidating, and reporting various environmental performance data, including carbon emissions, water resource usage, waste management, and energy - saving and consumption - reduction indicators. Standardized processes and data quality control measures ensure the accuracy, completeness, and reliability of environmental data. Regular information collection and risk assessment identify potential data deviations and management weaknesses. A data review mechanism ensures environmental information disclosure meets international and regulatory standards. Periodic data management practice reviews and optimizations enhance data accuracy and transparency, ensuring high - quality information disclosure and strengthening stakeholder trust in the company's environmental practices.

In 2024, no environmental incidents occurred, and we fully achieved the annual energy-saving and environmental protection goals.