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 also regularly conducts employee satisfaction surveys to measure employees' well - being and the 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.

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.

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 established the Education and Training Management Regulations in line with its actual needs. 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 developed annual training plans, established a training management system, and defined the organizational structure of training management, carrying out training activities in a layered and classified manner.

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.

The Group 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.

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 company'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 company 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 others. Supporting and complying with international labour and human rights norms and authoritative global standards. These policies cover all stakeholders in the company, including the company itself, its supply chain, its partners and joint ventures, and clearly state and explain the content of the company'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 company'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 Company'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 Employment 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 company 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 company'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 company's human rights remedies include policy adjustments, compensation, and penalties.

1. Policy Adjustment

Regularly review and revise the sexual harassment prevention measures in each factory, 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 Company.

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 Company’s safe production.

-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, which clearly defines the requirements and steps for the investigation of work-related accidents, and requires that each unit should organize at least one work safety inspection activity per month, investigate and manage potential production safety accidents, classify and report no production safety accidents, and that the chairman of the trade union should take part in the investigations of all types of work accidents of the Group companies, and represent the trade union to The chairman of the labour union participates in the investigation and handling of all kinds of work-related accidents of the Group, puts forward opinions on the handling of such accidents, and supervises and checks the implementation of accident prevention measures.

-Commitment to Continuous Improvement of OHS Management System Performance

The group continuously standardizes and refines its occupational health and safety management system and continuously monitors its occupational health and safety management system; it ensures that its 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, aligning with our ESG goals.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 Company'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 Group sets applicable occupational health and safety performance objectives in accordance with the Company'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 company 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 company summarizes the completion status of these goals.

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 conducts regular mental health assessments, provides mental health support services, analyses the working environment, and collects employee feedback to identify potential stressors and ensure proper management of psychological risks.

We 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.

To help employees recognize potential signs of mental health risks, we provide mental health training and education, and host live streaming lectures on employee care. The Group has allocated relevant resources to ensure employees can respond to and seek help for mental health issues in a timely manner. We offer timely assistance to employees with mental health problems, such as purchasing psychological counselling packages and providing free phone counselling services. For employees affected by physical or mental risks, we have designed rehabilitation and return to work programs to help them regain vocational confidence.

The company 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.