ESG Governance Structure

In order to further ensure that the relevant matters are carried out in a systematic and orderly manner within the Group and at all levels of its organizations, the Group has established an ESG governance framework under the joint decision-making of the Board of Directors and the senior management, integrating environmental, social and governance considerations into the decision-making and planning of every operation and business level, so as to comprehensively promote the sustainable development process of the Group.

Universal Medical has established a Strategy and ESG Committee to conduct research on the Group's medium-to-long-term development strategies (including sustainability strategies) and their feasibility. Concurrently, the Committee ensures the effectiveness of management and decision-making mechanisms for key issues, participating in the formulation of policies, strategies, and objectives related to significant topics that impact the Group's sustainable development, such as climate change risks and opportunities, privacy and data security, inclusive finance, occupational health and safety, etc. It also conducts regular (annual) discussions and reviews of these key issues, monitors progress and performance, and, where appropriate, makes suggestions to the Board of Directors.

Additionally, we have established an ESG Working Group. This group is composed of representatives from the functional departments within our Group that are involved in ESG matters. The daily operations of the group are managed by the Board Office, and the head of ESG for our Group serves as the leader of the working group. The group reports on ESG matters to the Strategy and ESG Committee under the Board of Directors and, when necessary, provides relevant feedback to management or the appropriate departments. The daily work department of the ESG working group is the Board Office.

The ESG Working Group is authorized by the Board of Directors to participate in the ESG-related work of the Group. Its responsibilities include coordinating and harmonizing the implementation and execution of all ESG-related work by the functional departments of the Group's headquarter and subsidiaries, reporting regularly to the Board of Directors on major ESG issues and work, communicating the Group's strategies and specific initiatives on ESG management, collecting and reporting on the ESG management measures and performance, and collecting the required data for ESG reports from the functional departments of the Group for submission to the Board of Directors for approval. The ESG Working Group will formulate recommendations to the Board members for improvement in light of the actual situation of ESG related work, so that the Board can implement ESG regulatory matters in a sustainable and effective manner.

Each functional department and its ESG officer are responsible for the management of each special ESG issue, data collection and promotion of important ESG practices, and carry out related work in accordance with the ESG management system and process.

The Group conducts regular comprehensive reviews of its ESG governance framework, inviting internal and external experts and stakeholder representatives to participate in evaluations. These reviews benchmark industry best practices and analyze the Group’s strengths and weaknesses. Identified issues are addressed through targeted improvement measures, continuously optimizing sustainability practices and plans to enhance the Group’s sustainable development management capabilities.

ESG Strategy and Goals

Universal Medical attaches great importance to the systematic formulation and implementation of its sustainable development strategy. The Group has adopted a systematic SWOT analysis approach to identify and analyze external and internal critical factors affecting the sustainable development strategy and plans, ensuring strategic alignment with the macro-environment and the Company’s practical conditions.

In 2024, we have established the Universal Medical ESG Strategic Framework, clearly defining four major strategic objectives for the future sustainable development of Universal Medical. These objectives are: alignment with serving the people, alignment with employee growth, alignment with environmental sustainability, and achieving mutual benefits with stakeholders. These four strategic objectives have been broken down into specific work plans, with detailed action plans, milestone targets, responsible departments, and strategic execution monitoring methods established. In the future, we will ensure the effective implementation of the strategy through strategic monitoring and specialized performance appraisal mechanisms, digital systems, and cultural training systems, guaranteeing the successful achievement of our strategic goals.