CONTENTS

01 Message from the Chairman 11 Steady and Long-Term Progress 57 People-Centered Approach 95 Key Performance Table

03 About Yuwell Medical 13 Enhancing Corporate Governance 59 Human Capital Development 99 Index Table

04 Sustainability Management 19 Commitment to Business Ethics 71 Employee Rights Protection 101 About This Report

23 Information Security and Privacy Protection 75 Protecting Life and Health

27 Sustainable Supply Chain

33 Rooted in Health Driven by Technology 79 Environmental Friendliness

35 Enabling Health with Innovation 81 Strengthening Environmental Management

43 Commitment to Quality 83 Addressing Climate Change

53 Access to Quality Healthcare 91 Reducing Environmental FootprintJiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Message from the Chairman

innovation. Keeping pace with technological evolution and changing user needs in healthcare the Company has consistently increased R&D

investment and expanded its innovation pipeline around core businesses and strategic fields. We have advanced the deep integration of digital

intelligence and medical devices accelerating the development of medical devices toward greater intelligence wearability and convenience and

We firmly believe that as long as we continue entering a new era of intelligent healthcare built on "hardware + software + ecosystem." Guided by innovative technologies and a strong sense of

doing the right things the Company will responsibility we are committed to delivering higher-quality healthcare solutions to users worldwide. In 2025 leveraging its global R&D network and multiple national provincial and ministerial-level research and innovation platforms the Company collaborated with innovative enterprises across

move forward steadily and achieve long-term the industry chain as well as leading universities and research institutes in China and abroad to carry out frontier technology and applied basic

research in areas such as high-end ventilator sensors next-generation vital signs defibrillation technologies wearable biosensing technologies and

development. electrochemical POCT technologies. Benchmarking itself against world-class standards the Company continued to strengthen its competitiveness

and support the accelerated transformation upgrading and high-end development of domestically developed medical devices. The Company

also deepened its presence in smart healthcare by establishing an efficient end-to-end lifecycle quality management system and a comprehensive

omnichannel customer service system to support intelligent product upgrades and enhanced user experience. In 2025 the Company's first-pass yield

reached 99.75% while customer satisfaction among B2B and B2C customers reached 97.7% and 98.4% respectively keeping Yuwell Medical at the

forefront of the industry in customer satisfaction and product experience.Yuwell Medical has always upheld its mission of "alleviating patients' suffering and Putting people first and advancing shared value we worked together to create a healthier and better future. In line with the strategies of

enhancing doctors' medical capabilities." Over the years we have moved forward globalization digital and intelligent transformation and wearable technology Yuwell Medical advanced its talent development planning and talent

with passion and determination leveraging forward-looking insights to identify management model and continued to upgrade the Yuwell Learning and Development Center. We gradually built a comprehensive management

evolving healthcare needs empowering health through innovative technologies mechanism covering talent attraction training and development appointment and incentives and long-term retention empowering employees'

and reshaping the industry landscape through ecosystem collaboration. We capability building and career development in all respects. These efforts have helped us build a diverse inclusive innovative and dynamic team of

strive not only to be a pioneer in innovation-driven transformation but also to high-quality professionals. During the reporting period the Company received a number of honors including the Global Talent Magnet Employer

serve as a steadfast guardian of public health. In 2025 guided by our strategic New Prominent the Top Human Resource Management Award – Top Employer of the Year the China Preferred Employer of the Year and the Global

directions of globalization digital and intelligent transformation and wearable Expansion Navigator. While continuing to deepen its core healthcare business Yuwell Medical actively explored public welfare models aligned with

technology we accelerated the deep integration of digital intelligence and the needs of the times and society. In 2025 the Company contributed nearly RMB 40 million in charitable donations to support medical emergency

medical devices driving faster innovation and iteration in products and services response chronic disease care rural healthcare development and other initiatives ensuring that every act of kindness creates value for life. In 2025

to deliver higher-value healthcare solutions to society. At the same time we Yuwell Primedic gradually expanded from a single-product focus to a broader emergency care ecosystem actively building a multidimensional

continued to explore new pathways toward sustainable development with a long- emergency response network and exploring deeper integration between healthcare services and sports. Its AED and professional first-aid public

term perspective comprehensively strengthening governance effectiveness welfare training programs reached more than 30000 participants in total effectively improving access to emergency response during the "golden four

innovation capabilities risk resilience and global development capacity. Amid minutes." At the same time it made steady progress in supporting the development of traditional Chinese medicine acupuncture diabetes patient

profound industry transformation we remained committed to steady progress care high-altitude medical support systems and the improvement of primary-level medical services making every effort to safeguard life and health.through sustained dedication contributing Yuwell's strength to the advancement Green development low-carbon transformation and environmental responsibility underpin Yuwell Medical's green development philosophy.of global healthcare. The Company integrates green ecological principles and sustainability requirements throughout the entire production and operations value chain and

With stronger governance foundations and a continued focus on steady long- extends its EHS management system across all business segments. We closely monitor climate-related risks and opportunities while systematically

term development Yuwell Medical further strengthened the core capabilities advancing initiatives for resource conservation and environmental protection. Through these efforts we are committed to building a clean low-

supporting its stable and sustainable growth. In 2025 Yuwell Medical continued carbon and climate-resilient manufacturing system that promotes the coordinated development of environmental and economic benefits. In 2025

to improve its modern corporate governance system while steadily expanding the the Company gradually established a closed-loop green value chain spanning green materials green design green intelligent manufacturing and

boundaries of health management. We maintained a strategic focus on solutions green packaging systematically advancing the green evolution of products across their full lifecycle from source reduction to end-of-life recycling.including respiratory therapy blood glucose management and POCT and home In line with the requirements of the ISO 50001 Energy Management System we carried out comprehensive energy management by establishing an

health monitoring while continuing to strengthen our presence in clinical and integrated energy management system covering data collection process monitoring and energy management functions. Equipment and technologies

rehabilitation equipment and actively incubating high-potential businesses continued to upgrade the proportion of green electricity steadily increased and coordination between production and sales became more efficient

such as emergency care and ophthalmology. In particular we further increased further advancing the development of a clean and low-carbon production system. Comprehensive energy consumption per unit of output GHG

investment and resource allocation toward wearable products such as CGM emission intensity water consumption intensity and hazardous waste discharge intensity were all effectively controlled while annual energy

devices. Our diversified product portfolio continued to evolve and upgrade the management and other environmental targets achieved a 100% completion rate.industry-university-research innovation ecosystem advanced at a faster pace and Driven by innovation and committed to quality we continue to move steadily toward our sustainable development goals. Yuwell Medical will remain

our business footprint expanded across more than 100 countries and regions dedicated to its strategies of globalization digital and intelligent transformation and wearable technology. We will pursue greater breakthroughs in

supported by an increasingly mature global operating system. Meanwhile the new product areas reshape healthcare experiences through digital intelligence and expand value boundaries through ecosystem collaboration. Amid

Company has strengthened its internal and external risk management and ongoing market transformation we will build stronger momentum for long-term development. Together with our partners we will uphold a long-term

compliance systems reinforced business ethics and information and data perspective advance the development of the healthcare industry and create greater value for society and customers.security governance and continued to build a secure and resilient supply chain

system. Through rigorous compliance standards strong professional ethics and

systematic management mechanisms we further strengthened the foundation

supporting strategic transformation and long-term steady development.Chairman and General Manager of Jiangsu Yuyue Medical Equipment & Supply Co. Ltd.Guided by a commitment to health and driven by technological innovation

Yuwell Medical continues to reshape the medical device industry through Wu Qun

01 02Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

About Yuwell Medical Sustainability Management

Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. ("Yuwell Medical" Stock Code: 002223) specializes in the R&D manufacturing

sales and service of medical devices. As one of China's leading comprehensive providers of medical devices and healthcare Sustainability Governance Framework

solutions the Company is dedicated to offering high-quality innovative medical products and services to patients and healthcare

institutions worldwide. Yuwell Medical integrates sustainability principles and requirements into its strategic decision-making and business operations

consistently improving its environmental social and corporate governance systems. The Company further strengthens the Board

Guided by its mission of "alleviating patients' suffering and enhancing of Directors' oversight of and participation in ESG matters and regards ESG as an important driver for enhancing compliance

doctors' medical capabilities" Yuwell Medical remains focused on the life management promoting high-quality development and strengthening corporate competitiveness. As the highest decision-

and health industry with a consumer-centered approach. The Company 2025 Top 100 ESG Best Practices

for Chinese Listed Companies making and oversight body for ESG matters the Board of Directors is responsible for assessing the potential impacts risks and follows strategic directions of globalization digital and intelligent opportunities of sustainability factors on the Company's business model defining the Company's ESG development direction

transformation and wearable technology. Its products focus primarily and management strategies supervising the effective implementation of ESG visions goals strategies and plans and ensuring

on respiratory therapy blood glucose management and POCT and home Wind alignment and coordination between sustainability initiatives and the Company's overall strategy. For details of the Board's

health monitoring solutions while maintaining a strong presence in expertise and capabilities in overseeing the management of ESG-related impacts risks and opportunities please refer to the

clinical medical devices and rehabilitation solutions. At the same time

Yuwell Medical actively incubates high-potential business areas such ESG Benchmark Enterprise Award section "Strengthening Corporate Governance / Board Diversity and Effectiveness" in this report. During the reporting period the Board reviewed and approved the Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report and the revised

as emergency care and ophthalmology with particular emphasis on Securities Star Environmental Social and Governance (ESG) Management Policy further clarifying the Company's governance requirements

expanding investment and resource allocation for wearable products and management mechanisms for sustainability-related matters and promoting the effective integration of ESG principles into

including CGM devices driving the evolution of medical devices toward corporate governance and business decision-making.greater intelligence wearability and convenience. With a clear focus on Top 100 in the 3rd Guoxin Cup ESG

the vast opportunities in international markets the Company continues Golden Bull Awards The Company actively adopts quantitative indicators to assess the effectiveness of its ESG management strategies and is gradually

to drive industry transformation through strong R&D capabilities and incorporating relevant ESG metrics into its compensation assessment system. In 2025 the Company organized dedicated ESG

technological innovation providing sustained support for improving the China Securities Journal training sessions covering the latest ESG trends and requirements key priorities for advancing ESG initiatives and ESG information

quality of life of more people around the world. disclosure with the aim of enhancing employees' awareness and understanding of ESG and further promoting the effective

implementation of ESG practices across the Company.Over the years the Company has consistently maintained high levels 2025 Zhiyuan Award – Social

of investment in new products and projects while sustaining industry- Responsibility Pioneer Enterprise

leading innovation capabilities. Yuwell Medical has established Oversight Level

multiple R&D and manufacturing centers in Germany Shanghai Cailian Press

Nanjing Suzhou Danyang Xizang and Shenzhen and has built several Defines the Company's ESG development direction and strategic

national-level innovation platforms including a National Enterprise Board of Directors objectives and makes decisions on major ESG matters

Technology Center a National Industrial Design Center and a National National Digital Pilot Enterprise Oversees ESG-related matters comprehensively and assumes

Postdoctoral Research Workstation. These efforts have enabled the / National Leading Enterprise for responsibility for their effectiveness

Company to establish a comprehensive global network integrating R&D Future Industry Innovation and

manufacturing marketing and services with its products earning broad Development

market recognition. The Company also actively collaborates with medical

institutions in China and abroad to jointly advance the development Ministry of Industry and Information ESG Management Leadership Group Management Level

of the healthcare industry. Through diversified business expansion Technology of the People's Republic of China Head: General Manager Identifies assesses and manages ESG-related risks and

and ongoing international development Yuwell Medical continues to Deputy Lead: Board Secretary opportunities

strengthen its ability to serve the global healthcare sector. For detailed First Batch of China's Famous

information on the Company's operational and financial performance Consumer Brands Members include other senior

Determines the materiality of ESG matters and incorporates them

executives and heads of relevant into business operations and decision-makingplease refer to the Jiangsu Yuyue Medical Equipment & Supply Co. Ltd.departments Coordinates and guides the day-to-day implementation of ESG work2025 Annual Report. Ministry of Industry and Information

Technology of the People's Republic of China

Business operations covering Charity Star of the Yangtze River ESG Working Group Execution Level

100+ Delta – Caring Organization Relevant functional departments Formulates ESG-specific plansJiangsu Charity Federation business departments and countries Implements ESG initiativessubsidiary companies Conducts regular monitoring and reporting of ESG indicators

and regions worldwide

03 04Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Sustainability Management Strategy Stakeholder Engagement

With reference to the AA1000 Stakeholder Engagement Standard and global industry best practices Yuwell Medical systematically

identifies its key stakeholder groups and establishes communication channels tailored to different stakeholders. The Company

fully incorporates stakeholders' concerns expectations opinions and recommendations into the identification and response

to sustainability-related risks and opportunities the formulation of targets and indicators and the continuous improvement of

Yuwell Medical consistently upholds its responsibilities as a corporate citizen. In alignment with the United Nations

management practices building long-term mutually trusted partnerships for shared value creation.sustainability Goals (SDGs) and industry development trends the Company continues to refine its sustainability

management strategy contributing to the long-term advancement of the healthcare industry while ensuring steady

business growth. Stakeholders Expectations and Concerns Communication Methods and Channels

Compliance operations Specialized meetings or reports

Product quality and safety Policy consultation and feedback

Environmental management Official visits

Government and Support for local development Compliance regulatory inspections

Regulatory Authorities (including rural revitalization) Information disclosure

Corporate Governance R&D Innovation

Business Ethics Product Quality and Safety

Root High-quality development Shareholders' meetingsInformation Security ess er d in Access to Quality g H Stable and sustainable returns Financial reports and announcementsand Privacy Protection Pro eal Healthcarem th Investor relations management Investor hotline

Sustainable Supply Te

r D

Chain Shareholders and

Roadshows

Investors Performance briefings and other engagement

activities

Product quality and safety Customer satisfaction surveys

Innovative and low-carbon products Customer relationship management

Customer service management Customer engagement activities

Sustainability Business continuity Social media platforms

Management Customers Reliable privacy protection

Strategy

Compliance with business ethics Supply chain audits and training

Responsible supply chain Open cooperation

Industrial cooperation and exchanges Communication and exchanges

Partners Industry conferences

riend n

t

l eine le-

C Employee rights and benefits Employee activities and communication

ss p e

o

P Occupational health and safety Employee training

Employee training and development Performance evaluation and feedback

Diversity and equal opportunities mechanisms

Employees Internal information communication platforms

Employee grievance channels

Strengthening Environmental Management Human Capital Development

Addressing Climate Change Employee Rights Protection

Pollution Prevention and Ecosystem Protection Rural Revitalization and Social Product quality and safety Media interaction

Resource Utilization and Circular Economy Contribution

Environmental management Information disclosure

Public welfare and charity Public welfare programs

Public and Community communication and Volunteer activities

Communities development

0506

Steady and Long-

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EnJiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Materiality Assessment

Materiality assessment serves as the foundation for Yuwell Medical's sustainability planning risk and opportunity management

and information disclosure. In 2025 the Company updated its ESG topic database with reference to standards and guidelines High 13 12

including the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information the GRI Sustainability 15 14 11

Reporting Standards issued by the Global Sustainability Standards Board (GSSB) and the Self-Regulatory Guidelines No. 17 58 19 17

for Companies Listed on Shenzhen Stock Exchange – Sustainability Report (Trial). Based on the principle of double materiality

Yuwell Medical conducted its materiality assessment from two dimensions: "impact materiality" (the significance of impacts on 16

economic environmental and social sustainability) and "financial materiality" (the significance of impacts on the Company's 2

financial performance). Through a comprehensive review of stakeholders' key concerns and related financial impacts the Company 20 4

identified highly material ESG topics for focused disclosure in this report and continued improvement of ESG management

practices with the aim of better responding to stakeholders' expectations and concerns. The Board of Directors reviewed and 3

confirmed the materiality matrix for the reporting year. 9

6

718

The Company developed a comprehensive list of ESG topics based on leading domestic 1

ESG Topic and international sustainability reporting standards and frameworks mainstream ESG

Identification rating systems industry focus areas and topics of shared concern among internal and

external stakeholders. This process was informed by an analysis of internal and external

development trends and led to the identification of both general and sector-specific

material topics. 10

Governance Dimension

Environmental Dimension

Low High Social Dimension

Financial Materiality

Material in terms of Material in terms of Material in terms of Not material in terms

Materiality The Company conducted surveys among key internal and external stakeholders and both financial and

impact materiality financial materiality only impact materiality only

of either financial or

Assessment carried out both impact materiality and financial materiality assessments based on the impact materiality

principle of double materiality. As a result the 2025 materiality matrix was developed

identifying the Company's material ESG topics and their priorities for the reporting year.No. Topic No. Topic

1 Corporate Governance 11 R&D Innovation and Technology Ethics

2 Business Ethics and Anti-corruption 12 Product Quality and Safety

3 Risk Management 13 Customer Relationship Management

4 Digital and Intelligent Transformation 14 Innovative Smart Healthcare

15 Access to Healthcare

Topic Confirmation Taking into consideration recommendations from internal management and external 5 Information Security and Privacy Protection

and Disclosure experts the Board of Directors reviewed and confirmed the screening and assessment 6 Addressing Climate Change 16 Protection of Employee Rights and Interests

results and identified the Company's highly material ESG topics. For material topics (Including Occupational Health and Safety)

the report provides focused disclosure on governance strategy risk and opportunity 7 Water Resource Management 17 Human Capital Development

management indicators and targets. 8 Emissions and Waste Management 18 Sustainable Supply Chain

9 Resource Utilization and Circular Economy 19 Industry Cooperation and Development

10 Biodiversity Protection 20 Rural Revitalization and Social Contribution

0708

Impact MaterialityJiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Analysis of Impacts Risks and Opportunities of Material Topics

Material Scope of Impact Impact Timeframe Impact UN Material Scope of Impact Impact Timeframe Impact UN

Risks and Opportunities Risks and Opportunities

Topic Upstream Operations Downstream Short- Medium- Long- Level SGDs Topicterm term term Upstream Operations Downstream

Short- Medium- Long- Level SGDs

term term term

There are risks related to product design and

R&D manufacturing and production processes Insufficient employee training and

as well as laws regulations and regulatory Negative development ineffective performance

compliance. Failure to effectively manage such impact: management and organizational culture Negative

Product risks may result in regulatory penalties market highly risks may lead to strategic and organizational impact:

Quality and access restrictions and declining market trust material; transformation risks as well as increased moderately

Safety in the Company's products. Positive

Human talent attrition. material;

impact: Capital

Adopting high standards in safety and quality highly Development A well-established employee learning

Positive

practices can enhance customer trust increase material development and talent cultivation system

impact:

market share and strengthen competitive together with optimized talent allocation and highly

advantage. succession planning helps strongly support material

the achievement of strategic goals and long-

Incidents of commercial bribery and term stable development.corruption may result in significant economic Negative

costs legal consequences operational risks impact:

Business and reputational damage to the Company. highly

Ethics material; Physical and transition risks associated

and Anti- Efforts in business ethics and anti-corruption Positive with climate change may result in asset

Corruption help establish sound internal management impact: losses supply chain disruptions increased

systems and processes optimize internal highly operational costs and shifts in market

controls and enhance management efficiency material preferences that impact product strategies. Negative

and transparency. impact: Addressing The green transition and changing market material;

In the context of technological uncertainty Climate demand driven by climate change create Positive

regulatory volatility market competition and Change opportunities to explore new business impact:

global expansion R&D investment may require Negative directions and develop new product material

R&D significant financial input with no guaranteed impact: solutions. Strengthening energy and resource

moderately

Innovation commercial returns. management also helps secure long-term

material;

and and stable power supply and enhance green Amid technological risks policy and Positive

Technology competitiveness.regulatory risks market competition and impact:

Ethics internationalization challenges R&D activities highly

may require substantial financial investment material

while commercial returns remain uncertain

and difficult to predict. Quality supply compliance and ESG-related

risks within the supply chain may lead to raw

Amid multidimensional risks including material shortages business interruptions

technical risks human-related risks increased costs and delivery delays Negative

and management and operational risks impacting business continuity and market impact:

inadequate management of critical data and Negative competitiveness.customer privacy may lead to data breaches impact:

highly

Information Sustainable material; resulting in compliance risks reputational highly Strengthening sustainable supply chain

security Supply Chain Positive damage and reduced customer trust. material; management can enhance resilience ensure

and privacy Positive business continuity reduce operating costs impact:

protection Strengthening data security protection helps impact: and improve market competitiveness and highly

promote the standardized development highly long-term investor appeal. In addition material

of China's home medical device industry material improving supply chain collaboration supports

enhance the confidence of international the adoption of new technologies and drives

customers in cooperation and expand access corporate transformation and upgrading.to more high-end markets.

09 10Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

STEADY AND

LONG-TERM PROGRESS

Proportion of female directors Anti-corruption training coverage

55.56%100%

Information leakage incidents

0

11 12Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Enhancing Corporate Governance General Meetings of Shareholders held during the year Board Diversity and Effectiveness

Yuwell Medical attaches great importance to Board diversity and regards it as an important

Standardizing Governance 3 foundation for enhancing the scientific nature of decision-making the effectiveness of oversight and risk management capabilities. The election re-election and adjustment of Board

members are conducted in strict accordance with the Company Law of the People's Republic

Yuwell Medical strictly complies with relevant laws regulations and regulatory requirements including the Company Law of the resolutions reviewed of China the Code of Corporate Governance for Listed Companies the Rules Governing the

People's Republic of China the Securities Law of the People's Republic of China the Code of Corporate Governance for Listed and approved Listing of Stocks on Shenzhen Stock Exchange the Articles of Association and the Working

Companies the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange and the Shenzhen Stock Exchange Self- Rules of the Nomination Committee of the Board of Directors. Diversity is incorporated into the

Regulatory Guidelines No. 1 for Listed Companies — Standardized Operation of Main Board Listed Companies. In accordance with candidate selection and review process with comprehensive consideration given to candidates'

the Articles of Association and other internal governance documents the Company continuously improves its corporate governance 12 professional expertise industry experience performance capabilities educational background

structure standardizes corporate operations and enhances the standardization and effectiveness of its governance system. time commitment and independence. This helps maintain an appropriate balance of talents

skills experience gender age and cultural and educational backgrounds within the Board. In

The Company has established a corporate governance structure composed of the General Meeting of Shareholders the Board of Board meetings held addition the Company places high importance on the ethical conduct and leadership reputation

Directors and senior management forming a governance mechanism with clearly defined responsibilities coordinated operations during the year of Board members to support the Company's long-term stable development.and mutual checks and balances. In 2025 in accordance with the Company Law of the People's Republic of China and the Articles

of Association the Company ceased to maintain a Supervisory Board with the Audit Committee under the Board of Directors 8 Independent directors are appointed in strict compliance with independence requirements. assuming corresponding supervisory responsibilities in accordance with the law further enhancing supervisory effectiveness. The Their appointments are subject to qualification and independence reviews by the Shenzhen General Meeting of Shareholders exercises decision-making authority over major matters in accordance with the law. Accountable Stock Exchange election through the cumulative voting system at the General Meeting of

to the General Meeting of Shareholders the Board of Directors is responsible for formulating development strategies reviewing Shareholders and information disclosure procedures in accordance with applicable laws and

major matters and supervising management. The Board has established four specialized committees namely the Strategy regulations. Independent directors constitute a majority of the Audit Committee the Nomination resolutions reviewed

Committee the Audit Committee the Nomination Committee and the Remuneration and Evaluation Committee which are Committee and the Remuneration and Evaluation Committee under the Board of Directors and approved

responsible for specific matters within the scope authorized by the Board and provide professional advice and recommendations and also serve as the chairpersons of these committees providing independent judgment and

to support Board decision-making. Senior management is responsible for the Company's daily operations and management within 27 professional advice to support the Board's scientific decision-making. During the reporting the authority delegated by the Board and organizes the implementation of Board resolutions. For detailed information on corporate period independent directors participated in Board activities through various channels governance please refer to the Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Annual Report. expressed independent opinions on major matters and effectively exercised their supervisory

functions safeguarding the legitimate rights and interests of the Company and its shareholders.In response to evolving regulatory requirements and the practical needs of corporate governance the Company systematically

reviewed and continuously improved its governance and internal management systems during the reporting period. These efforts The Board of Directors consists of nine members including three independent directors

covered areas including the operation of the Board and its specialized committees information disclosure investor relations accounting for 33.33% of the Board and five female directors accounting for 55.56%. Board

management related-party transaction management internal audit and senior management administration with corresponding Audit Committee meetings members possess interdisciplinary expertise and extensive industry experience spanning

review and disclosure procedures carried out in accordance with relevant requirements. held during the year medical devices bioengineering risk management financial accounting legal compliance

6 and finance demonstrating strong capabilities in identifying industry trends integrating resources and managing risks. Among them the chairperson of the Audit Committee is a financial accounting professional. In addition multiple directors possess extensive practical General Meeting of Shareholders experience in internal control and risk management including establishing comprehensive

risk management systems and handling major risk incidents which provides strong support

Strategy Committee meetings for the Company's risk identification risk assessment risk response and risk mitigation

Special Meetings of held during the year efforts. The Board maintains a diversified composition in terms of gender structure cultural

Independent Directors Board of Directors and educational backgrounds professional expertise and industry experience effectively

2 enhancing the scientific nature and quality of decision-making. As of the end of the reporting period the average tenure of Board members was 4.3 years. The Company is committed to building a Board with a well-balanced tenure structure diversified professional capabilities

and independent and effective oversight.Remuneration and Evaluation

Audit Nomination Remuneration and Strategy Committee meetings held

Committee Committee Evaluation Committee Committee during the year

Board Gender

2 Composition Male Female44.44% 55.56%

The Company strictly complies with applicable laws regulations and internal policies including the Rules of Procedure for the

General Meeting of Shareholders the Rules of Procedure for the Board of Directors and the Working Rules for Independent

Directors' Special Meetings. Shareholders' meetings and Board meetings are convened in a standardized manner with proposal Nomination Committee

submission deliberation voting and information disclosure procedures conducted in accordance with the law effectively meetings held during the year Board

safeguarding the legitimate rights and interests of all shareholders especially minority shareholders. The Company continues to Educational Doctor's degree Master's degree Bachelor's degree

strengthen its conflict-of-interest prevention mechanisms by strictly implementing recusal requirements for related directors and Background

related shareholders at both the Board and General Meeting of Shareholders levels ensuring the independence and soundness of Composition 22.22% 33.33% 44.45%

decision-making. 3

13 14Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Information Disclosure and Investor Communication

Professional Expertise

Position Name Gender The Company has established the Information Disclosure Management

Industry Risk Financial

Experience Management Accounting Law

Policy the Accountability System for Major Errors in Annual Report

Information Disclosure and other related policies to ensure the authenticity

Chairman General Manager Wu Qun Male accuracy and completeness of information disclosure and further enhance

the quality and transparency of information disclosure. During the

reporting period the Company issued four periodic reports and 49 ad hoc

Director Deputy General Manager Zhao Shuai Male announcements and disclosed information through the Juchao Information

Network Securities Times and Shanghai Securities News ensuring that

Director Wang Lihua Female all shareholders have equal access to information. During the reporting

period the Company's information disclosure practices strictly complied

Director Chen Jianjun Male with applicable regulations with no false records misleading statements

material omissions or other violations related to information disclosure.Director Board Secretary Wang Ruijie Female

Based on internal policies including the Investor Relations Management

Employee Representative Director Zhang Jinyan Female Policy the Company strives to build a transparent and efficient

investor communication platform and maintains sound interaction and

Independent Director Yu Chun Female communication with investors through various channels including General

Meetings of Shareholders performance briefings investor surveys the

Independent Director Wan Suiren Male EasyIR platform investor hotlines and the investor relations section of

the Company's official website. During the reporting period the Company

Independent Director Zhong Mingxia Female convened three shareholders' meetings all of which provided both on-

site and online voting channels. The Company also organized performance

briefings offline investor exchange activities and investor survey reception

To support the effective performance of duties by the Board and its specialized committees the Company has consistently improved activities. The response rate on the EasyIR platform reached 97.06%.its director support and training mechanisms. During the reporting period the Company organized and supported directors and senior Directors and senior management participated in relevant communication

management in participating in training programs conducted by securities regulatory authorities and industry organizations. Training activities in accordance with laws and regulations to help investors better

topics covered listed company governance information disclosure business ethics and compliance internal control and sustainable understand the Company's operating performance and development plans.development. In addition through internal communication and knowledge-sharing mechanisms the Company helped Board members stay

informed of changes in regulatory policies and corporate governance requirements further enhancing their ability to perform their duties. Protection of Minority Shareholders' Rights and Interests

The Company treats all shareholders equally and actively adopts measures

to protect the legitimate rights and interests of minority investors. Minority

shareholders may attend shareholders' meetings and vote either in person

Protection of Investor Rights and Interests or through online channels. For major matters involving the interests of minority investors votes cast by minority investors are counted separately

and the voting results are disclosed independently. Through reasonable

Yuwell Medical strictly complies with the Securities Law of the People's Republic of China the Administrative Measures for Information arrangements regarding meeting time and venue as well as the use

Disclosure of Listed Companies the Provisions on the Registration and Administration of Persons with Insider Information of Listed of online voting and other digital tools the Company safeguards the

Companies and other relevant laws regulations and normative documents. The Company continuously improves systems related to the rights of investors especially minority shareholders to information and

protection of investor rights and interests standardizes information disclosure and investor communication practices and safeguards participation in major corporate matters.investors' rights to information participation and supervision in accordance with the law. In 2025 the Company revised documents

including the Investor Relations Management Policy the Internal Review Procedures for Information Publication and Responses on the Delivering Sustainable Returns to Shareholders

EasyIR Platform the Rules of Procedure for the General Meeting of Shareholders and the Information Disclosure Management Policy. These

revisions further strengthened the institutional foundation for protecting investor rights and interests. The Company adheres to the principle of delivering stable returns

to shareholders and continues to advance its "Quality and Return

Enhancement" initiative. It maintains a relatively high level of cash

dividends over the long term to provide stable returns to investors.Best Practice Case of Board of Directors of Listed Companies China Association for Public Companies The Board of Directors formulates profit distribution plans after

comprehensively considering annual operating results and submits

Best Practice of Board Office of Listed Companies China Association for Public Companies such plans to the General Meeting of Shareholders for approval to

ensure that the legitimate rights and interests of shareholders especially

minority shareholders are fully protected. During the reporting period

Best Practice in Investor Relations Management of Listed Companies China Association for Public Companies the Company further increased the frequency of dividend distributions

by implementing the 2024 annual dividend as well as interim and first

16th China Listed Company Investor Relations Tianma Award Securities Times three-quarter dividends for 2025 with the aim of enhancing shareholder

returns and strengthening market confidence. For detailed information

16th China Listed Company Investor Relations Outstanding Board Secretary Award Securities Times on the protection of shareholders' and creditors' rights please refer to the

Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Annual Report.

15 16Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Risk Management and Internal Control

Risk Training and Cultural Building

Yuwell Medical strictly complies with the Company Law of the People's Republic of China the Audit Law of the People's Republic of The Company commits to fostering a sound enterprise-wide risk management culture. Regular training and internal advocacy are

China the Basic Standards for Enterprise Internal Control and its supporting guidelines. In view of stringent regulatory requirements delivered to elevate employees' risk compliance awareness and professional management competency forming a full-staff joint

and intricate business workflows across the medical device sector the Company steadily improves its risk management and risk prevention mechanism. The Company keeps abreast of updates to laws industrial regulatory policies and relevant standards

internal control system to bolster risk prevention capabilities and ensure effective internal control implementation. Aligned with conducts in-depth research in a timely manner and organizes targeted internal learning sessions. Such efforts help all employees

business development and operational management needs the Company revised core rules including the Working Rules of the fully understand and implement internal control and risk management requirements and thus keep all potential risks within

Board's Audit Committee in 2025 further consolidating the institutional foundation for risk management. manageable boundaries.Governance Structure for Risk Management and Internal Control Tax Management

The Board of Directors bears ultimate responsibility for the Company's full risk management and internal control system

with supervision functions delegated to the Audit Committee. Following the revision of the Working Rules of the Board's Yuwell Medical places high priority on tax compliance and tax risk oversight. In

Audit Committee in 2025 the Company further clarified the committee's responsibilities in risk identification rectification of strict accordance with the Enterprise Income Tax Law of the People's Republic

internal control deficiencies and submission of supervision reports. As an independent oversight body separate from business of China and all applicable domestic and overseas tax laws and regulatory

departments the Audit Department oversees internal audit and risk supervision initiatives. Through standardized audit procedures requirements the Company continuously optimizes its tax management system The Company was rated Class

it verifies and evaluates the design and operational effectiveness of internal controls and puts forward targeted rectification by incorporating tax compliance and risk control into its unified corporate

proposals for identified irregularities. Where necessary the Company engages external professional institutions to conduct special risk management and internal control framework which enables systematic

audits and assessments aiming at enhancing the independence and professionalism of its supervision mechanism. implementation of tax policy research tax filing data submission as well as A in tax credit evaluation

full-spectrum risk identification assessment and mitigation. The Company

Risk Identification Response and Monitoring fulfills all statutory tax obligations in compliance with the law and formulates

during the reporting period

tax arrangements strictly in line with business substance. It never structures

The Company adopts end-to-end risk management covering pre- transactions or investment structures to obtain improper tax advantages nor

event prevention in-process oversight and post-event review. It adopts any tax planning devoid of genuine commercial purposes. In respect

places high priority on core operational risks related to investment Risk Identification of related-party transactions the Company applies the arm's length principle

business operation compliance finance and sustainability and Deploy multiple approaches including questionnaire for transfer pricing management to ensure full compliance with prevailing

enhances its comprehensive risk management capacity through surveys document reviews on-site inspections tax laws and regulatory rules. Following evolving tax policies and regulatory

institutional controls process standardization and ongoing technical scanning and penetration testing developments the Company conducts compliance reviews and ongoing process

supervision. supervision over business operations cross-border businesses related-party

In daily risk management the Company strengthens risk transactions and investment initiatives that may bring material tax implications.identification and supervision over cross-regional and cross- Regular tax training sessions are held to raise practitioners' compliance awareness

entity business activities and incorporates domestic and overseas Risk Assessment and professional proficiency preventing tax risks caused by inaccurate policy

compliance financial and operational risks into its unified interpretation or improper execution. No material tax violations were recorded Assess risk occurrence probability

risk management framework to achieve systematic control. within the reporting period. Looking ahead the Company will further refine its

Furthermore it integrates major ESG risks and opportunities into Evaluate the magnitude of risk impacts tax management mechanism enhance its tax governance and strengthen cross-

risk assessment and business planning and incorporates relevant Calculate risk indicators to define risk levels border tax risk prevention in line with its global business layout and operational

considerations into operational and financial strategies. This enables needs. This will enable seamless integration of tax administration with corporate

the Company to effectively mitigate potential risks and capture new Verify the effectiveness of existing control governance risk control and internal control systems.opportunities for business growth and strategic transformation. measures

During the reporting period the Company accelerated the

deployment of digital platforms for risk identification and

supervision and explored the application of large language model Risk Control

recognition and systematic compliance verification technologies

to promptly identify and manage potential risk sources. It also Formulate tailored risk mitigation strategies

optimized the risk control mechanism for all subsidiaries and in light of risk levels and actual business

branches. While safeguarding their independent and law-abiding conditions covering risk avoidance transfer

operations the Company formulated approval guidelines for key reduction vulnerability improvement and

matters and a priority supervision checklist and implemented impact containment

continuous monitoring over subsidiary operational risks. These Establish standardized risk monitoring and

measures effectively improve the Company's capability to identify early warning mechanisms

and address cross-regional and cross-entity risks and firmly

underpin the advancement of its global development strategy.

17 18Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Commitment to Business Ethics

Governance Strategy and Management

Guided by the core corporate value of integrity Yuwell Medical Mechanisms

strictly observes the Company Law of the People's Republic of

China the Anti-Unfair Competition Law of the People's Republic of Taking business ethics as the foundation of its corporate culture

China the Anti-Monopoly Law of the People's Republic of China Yuwell Medical integrates ethical norms into its long-term New Employee Training

the Anti-Money Laundering Law of the People's Republic of China development strategies and operational management systems. 3 sessions were delivered to 255 participants with average training duration exceeding 40 minutes per person.and other applicable laws and industrial codes of conduct. It has In alignment with ISO 37001 anti-bribery management system

established and steadily improved its business ethics and anti- standards the Company embeds business ethics and compliance Targeted Training for High-risk Posts

corruption governance system embedding compliance and ethical requirements deeply into organizational operations business

norms into corporate governance and daily operations to underpin procedures and supply chain management via institutional

Specialized integrity and compliance training was provided for sensitive positions including procurement marketing and

stable high-quality development. improvement compliance training enhanced audit supervision

business service roles covering 689 employees with average training duration over 1 hour.and standardized reporting administration which underpins its Targeted compliance training for core positions was launched at branches and subsidiaries including Xizang Yuwell Medical

The Company has set up a full-coverage business ethics and anti- high-quality development. During the reporting period no major Investment Co. Ltd. Suzhou Hwato Medical Appliance Co. Ltd. 66 Vision Tech Co. Ltd. and Jiangsu Yuwell-POCT Biological

corruption governance framework covering itself and the whole lawsuits or administrative penalties involving corruption bribery Technology Co. Ltd. benefiting around 300 staff members.supply chain. As the top decision-making body the Board of or unfair competition took place.Directors assumes ultimate accountability for the sound operation

of relevant governance mechanisms. Entrusted by the Board the

Audit Committee supervises the implementation of business ethics

and anti-corruption rules and reports material compliance and

ethical issues to the Board in a timely manner. As an independent

internal oversight body the Supervisory Committee tracks Business Ethics Training Business Ethics Audit Supply Chain Ethical Governance

policy updates on national and industrial compliance and ethical

standards identifies and evaluates corresponding risks drafts The Company has established a full-scale business W i t h i n t h e u n i f i e d b u s i n e s s et h i c s m a n a ge m e n t The Company extends ethical standards to the entire supply chain and

and advances the implementation of supporting management ethics training system covering directors all employees framework the Company's Supervisory Committee actively promotes compliant operation among all partners. All suppliers are

regulations and works closely with the Audit Department to carry and external business partners. Training contents focus and Audit Department formulate targeted annual audit required to sign the Anti-commercial Bribery Statement and confidentiality

out routine supervision. Such arrangements ensure the Company on workplace integrity anti-commercial bribery fair plans. In accordance with annual audit arrangements agreements prior to cooperation and dedicated external reporting channels

consistently adheres to rigorous compliance and ethical criteria. All competition norms conflict of interest management and and special deployment they conduct inspections on the are established to identify and defuse ethical risks along the supply chain. The

functional departments perform their respective duties to enforce reporting compliance rules. It also maintains employee implementation of ethical regulations and potential ethical Company conducts regular ethical advocacy activities for suppliers. In 2025

ethical requirements and ensure effective implementation of integrity records and uses individual compliance risks across all business segments. All audit outcomes it incorporated business ethics and anti-corruption initiatives into supplier

relevant rules across all business scenarios. performance as a key reference for promotions honors major identified issues and priority supervision matters conferences conveying the values of integrity cooperation fair competition

and performance reviews which strengthens internal are submitted to the Board's Audit Committee and senior and long-term stable partnership to 152 supply chain enterprises. Such efforts

The Company has formulated a complete set of business ethics ethical controls and prevents misconduct such as fraud management in standardized procedures ensuring ensure consistent enforcement of ethical policies throughout the supply chain

management rules that cover all business segments and functional and malpractice. In 2025 the Company rolled out a independent and efficient supervision. and foster an honest transparent industrial ecosystem.departments. Core documents include the Code of Integrity in full series of business ethics and compliance training

Business Practices the Anti-commercial Bribery Statement the Leveraging audit and supervision results the Company The Company strictly prohibits all forms of corruption fraud extortion and achieving 100% coverage of all regular and part-time

Management System for Employee Conflict of Interest Declaration formulates targeted rectification measures and long- embezzlement. Any employee in breach of relevant regulations will be staff across the Group and its branches and subsidiaries

the Management System for Reporting Gifts and Gratuities term improvement plans and drives implementation dismissed immediately and permanently banned from re-employment. All as well as core business partners and key suppliers. It

the Management Measures for Supervision and the Code of through institutional upgrading process optimization cooperative ties with non-compliant business partners will be terminated once also engaged external professional institutions to elevate

Professional Conduct for Employees. These regulations clearly and awareness training while conducting regular follow- violations are verified and stricter supervision will be applied in subsequent training effectiveness including inviting procuratorial

define standardized requirements for anti-fraud anti-money up reviews on rectification progress. The Company cooperation. The Company reserves the right to conduct regular or officials to deliver special lectures on integrity and

laundering anti-corruption anti-bribery fair competition anti- also conducts annual assessment on the effectiveness unannounced on-site audits of suppliers upon reasonable notice. This ensures compliance helping all staff strengthen risk awareness

monopoly and conflict of interest prevention. These management and compliance status of its internal control system ongoing oversight of supply chain compliance and ethical risks and allows the and self-prevention capabilities.rules apply to all directors and employees including part-time staff and incorporates business ethics and anti-corruption Company to impose strict sanctions on confirmed violations in accordance

and are gradually extended to supply chain partners distributors requirements into core evaluation criteria to facilitate with applicable laws and internal regulations. In 2025 the Company completed

and other business collaborators building a solid ethical continuous management optimization. factory compliance audits on 31 suppliers with inspection scope covering

compliance barrier across the entire business ecosystem. business ethics and anti-corruption compliance status.

19 20Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Impact Risk and Opportunity Management

Anti-Unfair Competition Management

In compliance with the Anti-Unfair Competition Law of the People's Republic of China and applicable anti-monopoly and fair Yuwell Medical brings business ethics and anti-corruption risks into its enterprise-wide risk management system which works

competition laws in all operating regions the Company explicitly prohibits improper practices including price manipulation in synergy with internal control and compliance mechanisms to systematically identify assess and address ethical risks in

false advertising and trade secret infringement fostering a fair and transparent market environment. Relevant requirements are daily operations. Based on its business models and industry features the Company carries out regular ethical risk assessment

integrated into corporate compliance and business ethics training. Regular themed training ensures all employees fully understand and analyzes potential risk triggers. It focuses on hidden risks such as conflict of interest improper benefit transfer and unfair

and abide by relevant policies. The compliance supervision team conducts routine inspections and imposes strict sanctions on competition existing in academic exchanges clinical research cooperation terminal sales and supply chain collaboration. By

confirmed violations in accordance with laws and internal regulations. No violations of anti-unfair competition laws took place sorting out business workflows and key posts the Company defines high-risk scenarios and formulates targeted compliance

during the reporting period. guidelines to ensure all business activities comply with legal norms and corporate ethical standards.To realize timely identification and effective control of ethical risks the Company continuously optimizes its risk monitoring system

and supervises the implementation of ethical codes and key business activities via internal audits compliance reviews and reporting

mechanisms. All external partners are required to sign business ethics and anti-corruption agreements alongside available reporting

channels to expand risk detection sources. Standardized constraints and supervision over partners effectively defuse ethical risks in

Reporting Management business and supply chain cooperation reducing their adverse impacts on corporate operations and brand reputation.The Company adopts a zero-tolerance attitude towards

corruption fraud and other unethical behaviors. It has

implemented the Reporting Management System and Reporting Channels

established diversified reporting channels. Employees Indicators and Targets

suppliers distributors and other stakeholders may

report violations and irregularities under real names Postal Address:

or anonymously which enables broad participation in Supervision Department Yuwell Science and Indicator / Target 2025 Achievement Status

integrity oversight. Technology Center No. 1 East Huanyuan Road Zero major litigations involving corruption or unfair competition Target achieved

Xuzhuang Software Park Xuanwu District

All reports are centrally processed by the Supervisory Nanjing City Jiangsu Province Target achieved

Committee which reports directly to the Disciplinary 100% business ethics and anti-corruption training coverage for

Inspection Committee consisting of the Chairman CFO 100% coverage of anti-corruption training non-independent directors with an average of 1 hour per person

Business Deputy General Manager and CHRO ensuring Hotline:

independent and impartial case handling. The whole +86 25 8558 2701 100% business ethics and anti-corruption training coverage for all employees with an average of 3 hours per person

procedure including acceptance investigation and

feedback is generally completed within 30 days. Verified 100% signing rate of the Anti-commercial Bribery Statement

Email:

corrupt behaviors will be disciplined accordingly based on and Supplier Social Responsibility Commitment among the Target achieved

jubao@yuyue.com.cn

actual circumstances. parent company's suppliers distributors and partners

The Company fully protects whistleblowers' legitimate 100% handling rate of valid reporting Target achieved

rights and interest by maintaining strict confidentiality

of their personal information and reporting materials. All

cases are filed with unified serial numbers and managed

by designated staff under classified confidentiality rules. It

is strictly forbidden to disclose whistleblower information

and case progress to involved parties or irrelevant

personnel. Any retaliatory acts against whistleblowers

will be severely punished; serious infringements will

be promptly referred to judicial authorities for criminal

liability pursuit.In 2025 Yuwell Medical joined the Enterprise Institute for

Internal Controls (Working Committee of Enterprise Anti-

Fraud Alliance). The Company also facilitated supervisory

staff to obtain professional qualifications including Corporate

Compliance Officer (CCO) and Certified Anti-Fraud Professional

(CAP) which further enhanced the professionalism of

its ethical governance. No substantiated business ethics

violations occurred within the reporting period.

21 22Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Information Security and Privacy Protection Data Backup and Recovery

The Company has formulated standardized data recovery plans with clear specifications for data backup extraction

application and contingency disposal. Regular full and incremental data backups are performed via cloud platforms

Governance and NAS devices. Quarterly restoration drills are conducted in simulated environments to verify data recoverability

and validate business continuity capabilities.Yuwell Medical takes information security and privacy protection as a fundamental guarantee for steady business operation

business continuity and customer trust. Following the Cybersecurity Law of the People's Republic of China the Data Security Law

of the People's Republic of China the Personal Information Protection Law of the People's Republic of China and applicable local Tiered Management of Data Assets

laws and regulations across all operational territories the Company continuously improves its dedicated management system for The Company manages data assets covering marketing production finance R&D and other domains under a tiered

information security and privacy protection. classified framework. Differentiated protection strategies are implemented for core important and general data

It has established a complete management framework covering IT system security data security and personal information respectively. Optimized hierarchical control and access permission management substantially reduce risks of data

protection. The Board of Directors assumes ultimate accountability for all major issues in this field. The IT Leadership Group leakage loss and unauthorized misuse.formulates overall development strategies makes core decisions and oversees policy execution. The Digital Operation Center

takes the lead in IT security management and technical defense deployment. All business departments fulfill their respective

responsibilities to implement security and data protection requirements via close coordination. The Company also sets quantified Technical Defense and Endpoint Management

information security goals and incorporates relevant performance into employee evaluation systems.The Company steadily upgrades its cybersecurity defense capabilities by applying encryption and decryption

The Company enforces the Information Security Privacy and Personal Identifiable Information Management Manual together with protocols to data stored on servers and user endpoints. Firewalls security situational awareness systems and

a complete set of supporting rules including the Data Security Management System the Information System Security Management other intrusion detection and prevention tools are fully deployed to enable real-time monitoring early warning

Measures the Account Password and Access Management System the Information Device Usage Manual the Information Security and centralized management of external cyber threats. The Company also strengthens endpoint security and

Risk Assessment Management Measures the Cybersecurity Emergency Response Plan and the Overseas Data Security System. This automated defense mechanisms. Unified endpoint management and rapid threat response systems facilitate

comprehensive framework covers all business sectors and core operational scenarios providing solid institutional support for the instant identification and remediation of abnormal activities boosting the efficiency and reliability of overall

safe operation of information infrastructure application systems business data and client-related information. security defense. Throughout the year the Company achieved a 100% phishing incident response rate and

intercepted approximately 310000 external cyber intrusions.Strategy and Management Mechanisms Cybersecurity Emergency Management

The Company continuously revises its Cybersecurity Emergency Response Plan and upgrades dedicated early-

Upholding the core principle that information assets underpin warning and emergency response platforms to streamline security incident handling and deliver timely and

corporate development and privacy protection is the shared effective protection. Two cybersecurity attack-and-defense drills were carried out during the year to practically test

responsibility of all staff the Company has formulated standardized Yuwell Medical has obtained dual authoritative and elevate the overall defense competence and emergency response capacity of the Company's security system.procedures covering policy formulation risk impact assessment system certifications: All emerging security incidents were properly resolved without causing material disruptions to business operations

full-lifecycle management emergency response real-time endangering data security or impairing legitimate customer interests.monitoring and regular audits. These procedures help standardize ISO 27001 Information Security

employee practices in cybersecurity daily operation and Management System

maintenance data center management system iteration personal

privacy protection and overseas data security. Regular themed ISO 27701 Privacy Information

training and periodic compliance audits are conducted to steadily Management System Overseas Data Security Management

enhance corporate capabilities in information security privacy To strengthen data protection for overseas businesses the Company has established a dedicated Overseas Data Security System

protection and personally identifiable information management. in compliance with local laws and regulations in all operating jurisdictions. This document defines the entire data workflow from

collection storage utilization and transmission to cross-border transfer helping to mitigate potential risks associated with overseas

data management and cross-border data flows.Information System and Data Security Supply Chain Cybersecurity Management

To ensure business continuity safeguard data assets and maintain stable system operation Yuwell Medical keeps refining its Cybersecurity compliance is embedded into supplier admission criteria and partnership agreements. Binding contractual clauses

management protocols for information systems and data security. Amid the continuous deployment of digital platforms and and ongoing operational supervision are enforced to prevent leakage of corporate confidential information and relevant data. In

business expansion the Company enforces full-lifecycle security management over information systems spanning planning accordance with the Information Security Outsourcing O&M Management Regulation the Company conducts rigorous security

construction launch modification and decommissioning. By integrating institutional constraints with technical safeguards it assessments and persistent oversight over third-party service providers. This enables timely identification and rectification of

ensures robust stable and controllable operation of all information systems and thus effectively mitigates various information and operational anomalies and effectively guards against risks including information leakage data tampering service unavailability

data security risks. unauthorized network access and damage to physical infrastructure.

23 24Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Impact Risk and Opportunity

Management

Personal Information and Privacy Protection Information Security Cultural Development

In routine operations Yuwell Medical strictly abides by the Person- through quarterly backup restoration drills to guard against data The Company integrates information security Yuwell Medical has formulated the Information Security Risk Assessment

al Information Protection Law of the People's Republic of China leakage corruption loss and tampering. Regular internal audits and privacy protection into its regular Management Measures and established a standardized end-to-end assessment

the Specification of Data Acquisition and Application for House- and third-party reviews are conducted on privacy policy compli- staff training system and delivers ongoing workflow covering preparation threat identification vulnerability detection

hold Medical Devices and other applicable regulations and stand- ance and the Company maintains a zero-tolerance policy toward awareness-building activities including risk analysis risk disposition residual risk management and holistic control.ards. Aligned with the ISO 27701 Privacy Information Management any privacy breaches. During the reporting period the personal themed workshops and popularization Dynamic risk management is implemented by matching security risks with

System and following the principles of legality legitimacy necessi- information protection compliance rate reached 100%. campaigns to elevate employees' security actual business scenarios. The Company conducts at least one full-scale risk

ty and data minimization the Company improves its privacy man- awareness and compliance competency. assessment annually and regularly updates relevant evaluation results in

agement system covering various product data types to ensure full During the reporting period all employees response to system upgrades business restructuring and emerging security

lifecycle compliance in the collection use transmission storage Through its Privacy Statement and supporting policies the signed confidentiality agreements. The incidents ensuring timely and efficient risk management.and deletion of personal data. Company ensures customers employees and partners maintain Company organized one corporate-wide During assessments the Company systematically identifies various latent risks

information security training session and two

Privacy protection mechanisms are embedded into system design full control over their personal information and commits to including technical risks such as system breakdowns and cyberattacks human-

specialized training programs targeting IT

to grant users full autonomy over data processing. The Company protecting the core rights of data subjects as follows: factor risks stemming from operational errors and unauthorized privilege abuse

R&D and other core roles benefiting nearly

conducts strict necessity assessment before data acquisition and management risks arising from imperfect rules and flawed workflows as well

8000 participants. Combining institutional

never collects information irrelevant to business functions. Sepa- Right to Access and Transparency: Users are entitled to know as regulatory compliance risks. All identified risks are incorporated into the

norms typical risk scenarios and incident

rate explicit authorization is required for all sensitive personal data the scope purposes and processing modes of their personal company-wide risk management system. Leveraging assessment outcomes

disposal best practices these sessions

and users must sign the Yuwell Software Service Agreement to data. the Company pushes forward rectification review and iterative optimization

guide all staff to embed security and privacy

grant prior consent. User-friendly channels are available for users forming a closed-loop management cycle of identification rectification

Right to Rectification: Users may request timely amendment of protocols into daily business operations.to withdraw data processing consent anytime or restrict their per- review and capability improvement which effectively safeguards corporate

inaccurate or incomplete personal information.sonal information from being used beyond core service scenarios. information assets and personal user data security. In 2025 centering on core

Right to Erasure: Users are eligible to apply for data deletion risk areas including access control system configuration data access restriction

The Company defines clear boundaries for personal information

upon service completion consent withdrawal or account can- 100% and internet exposure management the Company carried out security risk application and enforces transparent supervision. All data shall cellation. assessments on eight core business systems covering financial management

be used solely for original intended purposes and shall not be

shared transferred or disclosed to third parties without formal Specified Retention Period: The Company publicly clarifies the signing rate of employee confidentiality

supply chain collaboration R&D and overseas operations. Through field

retention term of all personal data and performs data destruc- agreements interviews centralized vulnerability scanning penetration tests and manual approval. The Company adopts access control data encryption

audits potential hazards were sorted by risk level for hierarchical rectification. All

and desensitization technologies and verifies data availability tion or anonymization once the period expires.

100% detected vulnerabilities have been fully fixed and passed retesting verification.In terms of risk mitigation the Company embeds information security and privacy

protection requirements into institutional frameworks and business workflows.coverage of information security training It strengthens dynamic risk supervision through policy optimization process

standardization and technological upgrading and regularly verifies the effectiveness of

managerial and technical measures to better hedge and mitigate cybersecurity risks.Indicators and Targets

Information Security Audit

Yuwell Medical keeps abreast of cutting-edge advances in information security policies and technologies. Regular targeted audits are

conducted across five core domains: user access management system development system iteration logical access control and general Indicator / Target 2025 Achievement Status

operational controls. The Company also engages independent third-party institutions to perform independent audits on its cybersecurity 100% coverage of information security training Target achieved

architecture which helps refine its risk control mechanisms and maintain leading security defense capabilities.

100% completion of annual dedicated IT reviews on core business system access Target achieved

For overseas data operations the Company assigns dedicated oversight teams to conduct routine supervision over cross-border data

processing activities. The teams regularly inspect policy enforcement review data access logs and analyze security incident records to Zero major information security incidents Target achieved

promptly identify and resolve existing loopholes and irregularities. Internationally accredited third-party cybersecurity firms are also

commissioned to perform comprehensive assessments of the Company's overseas data security framework. All identified issues are rectified Zero data leakage incidents Target achieved

in strict accordance with audit requirements to steadily upgrade overall data management proficiency. Zero fines arising from security vulnerabilities or cyber incidents Target achieved

25 26Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Sustainable Supply Chain Supplier Audit and Performance Evaluation

The Company implements tiered classified supplier management with clear requirements for supplier audits performance

Governance evaluation frameworks usage restrictions and exit criteria stipulated in the Supplier Management Control Procedure. Annual audit schedules are formulated for all onboard suppliers together with standardized Supplier Evaluation Forms. The Company

conducts regular assessments and ongoing monitoring on suppliers' contract fulfillment quality control social and environmental

High-quality stable and sustainable supply chain operation compliance via on-site inspections and remote reviews. Suppliers are categorized into four tiers (A B C D) based on overall scores

constitutes a solid foundation for Yuwell Medical's sound business Full Lifecycle Supplier with differentiated management strategies applied.development. The Company has established a streamlined supply Management

chain management system with the Supply Chain Management

Department exercising overall oversight of supplier administration. Supplier Screening and Admission Tier Overall Score Management Strategies

Its internal functional units cover planned procurement resource The Company adopts rigorous supplier admission A ≥ 90 Prioritize procurement and expand cooperation scale

development advance procurement and indirect procurement standards and conducts comprehensive due

which undertake full-lifecycle supplier management. Functional diligence across multiple dimensions including

departments including Quality and R&D participate in supplier B 70–89 Maintain regular procurement and stable partnershipdelivery capability risk management capability

admission review quality audits performance evaluation and quality assurance capacity R&D expertise

continuous improvement based on respective responsibilities C 60–69 Impose rectification deadlines and reduce procurement volumecompliance and sustainable development

building a cross-functional collaborative supply chain management performance. Only eligible suppliers are enrolled

system. Cut procurement share and mandate rectification; terminate in the Qualified Supplier Directory and managed D ＜ 60 partnership upon unmet standards

The Company strictly complies with the Law of the People's Republic under tiered classification forming a high-

of China on Invitation and Submission of Bids and its supporting standard supply chain ecosystem. Adhering

regulations. It has formulated and implemented internal protocols to transparent procurement principles the

including the Supplier Management Control Procedure and the Company treats SME suppliers equally to ensure For deficiencies identified in evaluations and audits the

Procurement Control Procedure to standardize the full process of fair and impartial procurement practices. In 2025 Company issues formal Supplier CAPA Notices to specify Total suppliers reviewed via desktop assessment

supplier screening cooperation assessment and exit which helps it further refined admission review protocols rectification requirements deadlines and verification

foster a high-quality and resilient supply chain. In 2025 the Company and core control points in accordance with the criteria and verifies the effectiveness of improvement

or on-site audit

revised the Supplier Management Control Procedure to refine tiered Procurement Control Procedure and the Supplier measures. Rectification outcomes are taken as key

supplier management rules and optimize workflows for admission Management Control Procedure. references for subsequent performance reviews and

review performance appraisal and non-compliance rectification. tiered classification. Where necessary the Company

481

offers professional training and technical guidance to

help suppliers develop targeted improvement plans Suppliers receiving support while implementing

Total number of suppliers take timely corrective actions and resolve existing corrective actions and improvement initiatives

Strategy and Management issues so as to jointly strengthen sustainable supply 506 chain management. Suppliers failing to complete Mechanisms effective rectification will face further procurement 191restrictions while those with persistent non-compliance

Note: Data covers only Yuwell Medical's parent company. will be placed under enhanced supervision or removed Suppliers participating in corporate

Guided by corporate strategic objectives Yuwell Medical continuously from the supplier roster. capacity-building training programs

optimizes full-lifecycle supplier management and enforces

sustainable procurement policies. It embraces data-informed Clear exit triggers are defined throughout all management

decision-making to boost collaborative efficiency and strives to build phases including annual Tier D rating unresolved non- 176

a competitive resilient and sustainable supply chain to underpin the compliance of Tier C suppliers repeated unsatisfactory

achievement of corporate strategic targets. performance and major violations involving quality

safety and compliance. Once triggered the exit procedure Suppliers terminated due to substantial actual

will be initiated. The Company will meanwhile adjust or potential adverse impacts

procurement strategies and deploy alternative supply

solutions to mitigate supply chain risk exposure and

guarantee business continuity as well as consistent 0

product quality and safety.Note: Data covers only Yuwell Medical's parent company.

27 28Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Sustainable ESG Compliance Focus Implementation Measures

Case Procurement

Raw Material Supplier Management

Unified quality requirements are specified in the Quality Agreements and Freight Transportation

Yuwell Medical takes raw material quality control as a core source- Yuwell Medical integrates sustainable devel- Services Contracts. A quality information sharing mechanism is established with suppliers

level safeguard for product safety and reliability. Based on component opment principles into its full supply chain alongside regular quality audits and evaluations. Targeted quality training and technical

application scenarios production process complexity quality safety management system. While guaranteeing collaboration are provided as needed to fully control quality risks across all procedures.impact and sample verification results it implements tiered classified consistent product quality and stable deliv-

management for raw material suppliers and conducts regular system ery the Company steadily strengthens over- See the "Product Quality and Safety" section for more details

audits and performance appraisals as scheduled. Exit and restriction sight over supply chain sustainability risks.mechanisms are embedded across all supplier management stages. It mandates full consideration of environ-

Product and Coverage of supplier quality assessment

Suppliers failing pilot production validation will be eliminated at the mental social and governance criteria in all 100%

Service Quality

onboarding phase. During annual reviews underperforming suppliers procurement activities and requires all sup-

are required to complete rectification within a set period with follow- pliers to sign the Supplier Anti-Commercial Suppliers holding quality management system certifications 267

up verification. Those consistently failing to meet standards will be Bribery Commitment and Supplier Social

subject to usage restrictions grade demotion or complete supplier Responsibility Commitment ensuring their Suppliers signing quality assurance agreements 425

qualification revocation in accordance with internal regulations. full compliance with the Business Social

Compliance Initiative (BSCI) codes of con-

In 2025 the Company added standardized management clauses

duct and applicable laws and regulations.for OEM and ODM suppliers to its supplier management policies.Through supplier pre-qualification review

Stricter oversight was enforced throughout onboarding reviews

contractual binding clauses policy advoca-

quality agreement execution and in-process supervision which

cy and periodic audits the Company facili- All suppliers are required to sign the Anti-commercial Bribery Statement. The Company delivers

effectively mitigated quality and compliance risks inherent in such

tates and supervises the implementation of regular compliance training and conducts project-based due diligence and audits when necessary

cooperation models.sustainable procurement practices. Suppli- committing to long-term partnerships with suppliers adhering to rigorous ethical standards.ers are obliged to formulate and implement

targeted rectification plans for identified See the "Commitment to Business Ethics" section for full details

non-conformities with continuous progress Business Ethics

Synergistic Development with Suppliers tracking and re-assessment conducted to and Compliance Signing rate of the Supplier Anti-Commercial Bribery Commitment and

The Company fosters sound interactive partnerships with suppliers. Through spe- ensure supply chain sustainability. Supplier Social Responsibility Commitment 100%

cialized training regular conferences and daily communication channels it syn-

chronizes production requirements quality benchmarks and management norms In addition the Company treats all suppli-

to strengthen supply-demand synergy. To address the development needs of ers with integrity and fulfills its payment

small and medium-sized suppliers it offers compliant operational support to opti- obligations in strict accordance with legal

mize the overall supplier ecosystem. In 2025 the Company held multiple themed requirements. To protect the legitimate

exchange sessions and convened its annual supplier conference in October. Under rights and interests of SMEs it ensures Aligned with BSCI standards and local laws suppliers are required to sign the Supplier Social

the philosophy of "Win-Win Supply Chain Empowered by Digital Intelligence" the timely fund settlement and achieved a Responsibility Commitment and undergo dedicated social responsibility audits with formal Supplier

conference standardized supply chain cooperation rules and management crite- 100% on-time payment rate for SME paya- Social Responsibility Assessment Reports issued accordingly. Relevant regulations cover child labor

ria to reduce operational misalignments. The initiative covered 83 suppliers of the bles in the reporting period. prohibition elimination of forced labor occupational health and safety protection working hour and

parent company and 69 suppliers serving its branches and subsidiaries. salary management and anti-discrimination. Suppliers with valid environmental and occupational

health & safety system certifications are given priority in admission reviews and annual audits.Environmental

Protection Labor Rights Coverage of supplier environmental performance evaluation 100%

Occupational Health

and Safety Suppliers holding environmental management system certifications 72

Suppliers holding occupational health and safety management system

certifications 32

Note: Data covers only Yuwell Medical's parent company.Yuwell Medical 2025 Annual Supplier Conference

29 30Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Resilient Supply Chain Impact Risk and Opportunity Management

Building a resilient supply chain and safeguarding business

Yuwell Medical is exposed to a wide spectrum of supply chain risks including quality risks related to

continuity are core priorities for sustainable supply chain

raw materials finished goods and service delivery; supply risks such as supplier disruptions material

development. Focusing on critical material assurance logistics

shortages and logistics delays; financial risks driven by price fluctuations and market shifts; regulatory

coordination and emergent risk response Yuwell Medical

compliance risks involving violation of laws and internal policies; as well as ESG risks covering labor

keeps refining its supply chain resilience management system

rights protection occupational health and safety business ethics and anti-corruption practices. Internal

to sustain stable operations. In 2025 the Company maintained

management protocols including the Supplier Management Control Procedure and Procurement

steady raw material supply with no production disruptions

Control Procedure fully embed supply chain risk prevention mechanisms to underpin the development

caused by material shortages.of a high-quality resilient supply chain.The Company integrates sustainability-related risks into the full lifecycle of supplier management. It

conducts annual systematic identification and evaluation of all supply chain risks including ESG-related

ones and formulates annual supplier audit plans accordingly. Through on-site and remote audits the

Dual-sourcing Strategy Company conducts ongoing oversight and comprehensive evaluation over supplier qualifications

contract performance quality management as well as social and environmental impacts to dynamically

The Company optimizes supplier portfolios for core categories grasp overall supply chain risk profiles. Targeted risk mitigation measures are developed for different

and key materials. By building diversified supply networks and supplier categories to achieve effective risk containment.adopting primary-alternative material supply mechanisms

it mitigates reliance on single suppliers and thus eliminates Suppliers with unsatisfactory evaluation results will receive formal CAPA Notices and be subject to

production disruptions stemming from supply breakdowns. targeted risk control measures with rectification progress closely tracked and reviewed to mitigate

existing risks. Those sustaining high-risk status or failing to deliver satisfactory improvement will be

subject to sourcing restrictions suspended or terminated from the supplier network to prevent risk

Digitalized Management spillover. The Company also conducts ongoing monitoring and periodic reviews on the implementation

effect of risk control measures ensuring all governance mechanisms are fully implemented in practical

The Company advances supply chain digital transformation. business scenarios.Real-time operational tracking enhances the visibility

and predictability of material supply enabling timely

identification and resolution of potential issues to secure

stable raw material provision.Intelligent warehouse systems are upgraded to facilitate Indicators and Targets

real-time inventory monitoring and demand forecasting

for key and high-risk materials with safety stock reserves Indicator / Target 2025 Achievement Status

established to guarantee smooth production execution.The Company also optimizes logistics layouts and Target achieved

transportation solutions and forges long-term stable Zero business interruptions No production tasks were delayed due to supply

partnerships with logistics service providers to improve chain disruptions.delivery efficiency while ensuring full compliance and

98.50% incoming material inspection Target achievedoperational safety.

pass rate Actual incoming material inspection pass rate: 99.54%

100% supplier assessment covering

Emergency Preparedness and Business Continuity Target achievedenvironment quality and safety

Tailored emergency response protocols and backup plans

are formulated based on business attributes and risk levels

enabling swift response and rapid operational recovery

amid unexpected incidents.A multi-site production layout is further optimized to

realize mutual backup across manufacturing bases. This

mechanism ensures uninterrupted business delivery and

consistent fulfillment of customer demands in the event of

natural disasters operational accidents and major external

environment changes.

31 32Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

ROOTED IN HEALTH

DRIVEN BY TECHNOLOGY

R&D investment during the year

RMB 570.15 million

Digital health services cover

500000+ Yuwell health devices

First-time inspection pass rate

99.75%

33 34Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Enabling Health with Innovation Innovation System

Committed to building a global R&D and manufacturing network Yuwell Medical operates multiple R&D and production centers in

Germany Shanghai Nanjing Suzhou Danyang Xizang and Shenzhen forming a collaborative domestic and international R&D and

industrial layout. The Innovation Institute focuses on exploring cutting-edge technologies and accelerating their industrialization

Governance while regional R&D centers prioritize market-driven product development projects which creates a three-tier R&D operating model:

technology pre-research platform-based technology commercialization and end-product development. The Company integrates

internal and external resources to build a high-level open technological innovation platform and a comprehensive innovation eco-

As the core driver of new quality productive forces technological innovation underpins the Company's exploration of new development

system. By adopting a diversified R&D approach that combines independent research with collaborative innovation it continuously

paths and the building of differentiated competitive advantages. Focusing on technological progress and industrial upgrading trends within

fuels its high-quality growth and the advancement of the broader healthcare industry.the healthcare sector Yuwell Medical has established a scientific and efficient decision-making and management system for innovation-

driven R&D projects. The Board of Directors oversees and makes decisions on major innovation-related matters ensuring R&D priorities Based on strategic objectives market and user demands and healthcare technology dynamics the Company has established a trin-

are fully aligned with the Company's overall development strategy. The senior management team coordinates resource allocation ity innovation demand management system to enhance the forward-looking layout targeted positioning and collaborative synergy

and tracks R&D project implementation progress via dedicated innovation management review mechanisms. The R&D Department in of R&D project initiation. A dual-driven R&D framework has been formed integrating technology pre-research with product devel-

collaboration with the Industrial Design Center takes charge of executing specific R&D initiatives driving technological breakthroughs opment and combining organizational entities with project-based operations. By balancing breakthroughs in cutting-edge technol-

product iteration and the commercialization of R&D outcomes. To enable the seamless linkage of innovation achievements across R&D ogies with research on generic and key industrial technologies this layout steadily improves capabilities for original technological

production transfer and market promotion the Company has also put in place a cross-departmental collaboration mechanism that innovation and the commercialization efficiency of R&D outcomes. In line with the R&D characteristics of medical devices the Com-

promotes efficient communication and coordination among R&D marketing production and quality functions. This allows the Company pany consistently optimizes its IPD system and cross-functional collaboration mechanisms enabling efficient coordination across

to capture opportunities arising from the intelligent precision and international transformation of the healthcare industry. To standardize technology product supply chain quality and marketing functions which supports rapid iteration and upgrading of product lines.R&D operations and elevate overall innovation efficiency the Company has formulated a complete set of R&D management documents Upholding the principle of open collaborative innovation Yuwell Medical has issued the Industry-Academia-Research Collaboration

including the Yuwell Medical R&D Management System the Yuwell Medical R&D Cost Collection and Accounting Management Measures Management Measures and partners with top-tier external institutions to jointly advance the development of China's healthcare

the Yuwell Medical Measures on Rewards and Penalties for Technological Achievements and Innovation and the Yuwell Medical Industry- industry toward an integrated model of "hardware + AI + ecosystem." The Company has established long-term industry-academia-re-

Academia-Research Collaboration Management Measures. These policies clarify standardized requirements for R&D project initiation search cooperation with renowned institutions including the Chinese Academy of Sciences Tsinghua University Beijing Institute of

implementation production handover achievement management and incentive and restraint rules. The framework accelerates the Technology Nanjing University Southeast University Sichuan University Peking Union Medical College Hospital and the Obstetrics

cultivation and development of new quality productive forces and strengthens the Company's core industrial competitiveness. and Gynecology Hospital of Fudan University.Strategy and Management Mechanisms R&D Project ManagementBuilt on the IPD system the Company has established an end-to-end product R&D workflow covering market requirement

analysis R&D planning functional prototype development engineering prototype verification pilot production and mass

Guided by its corporate vision of leading industry development through innovation and enhancing the health of millions of families and its production. By adopting multi-level technical reviews and a stage-gate management mechanism it systematically evaluates

development strategy of reshaping medical devices through innovation Yuwell Medical keeps pace with technological advances and evolving user technical feasibility implementation risks and commercialization readiness facilitating collaborative decision-making among

demands in the healthcare industry. Centered on the three major directions of globalization digital and intelligent transformation and wearable R&D engineering and other relevant departments. The Company also consistently optimizes its PLM system to enhance the

technology the Company consistently expands its R&D pipeline promotes iterative innovation of products and services and advances the deep transparency traceability and standardized management of the entire R&D process.integration of digital and intelligent technologies with medical devices in an effort to deliver high-value medical solutions to society.Throughout R&D management the Company embeds human-centric usability design into every phase of product development

In R&D practices the Company adopts a user-centric and scenario-driven approach embedding human-centric design and ease of use as underpinned by standardized management protocols that encompass market requirement research functional and engineering

core principles into product design and technological development. On the premise of meeting functional and safety standards it optimizes prototype development pre-launch validation and post-market performance evaluation. Leveraging user research and real-

interaction logic and simplifies operational complexity to enhance product adaptability and user experience in real-life application scenarios. world application data feedback the Company systematically assesses the clinical suitability and user experience of product

Green development principles are integrated into the full product lifecycle to advance the coordinated development of technological innovation designs. Insights are applied to continuous optimization and iterative upgrading of next-generation products forming a user-

and sustainable development goals. Leveraging cross-departmental Integrated Product Development (IPD) and Product Lifecycle Management demand-driven closed-loop improvement mechanism. In 2025 the Company launched the Anytime Future Partner Recruitment

(PLM) systems the Company standardizes end-to-end R&D governance and improves innovation efficiency. To meet medium- and long-term Program which recruited 500 end-users to participate in product R&D. This allows real user needs to be integrated into the

development needs it also conducts forward-looking research and builds technology reserves paving the way for smart medical solutions. upfront product design phase continuously optimizing the overall product service experience.

35 36Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

R&D Technology Platforms

The Company has built a comprehensive R&D technology platform matrix aligned with each business unit's R&D needs which Received Respiratory Therapy Business

supports collaborative innovation and iterative upgrades across multiple product lines. Leveraging national provincial and The Company's respiratory and oxygen therapy product portfolio

ministerial-level platforms including a National Enterprise Technology Center a National Industrial Design Center and a National 4 prioritizes stable oxygen supply while simultaneously optimizing Postdoctoral Research Workstation it accelerates the commercialization and industrialization of technological achievements. national-level science and equipment energy efficiency operating noise and overall user

technology innovation awards during the year comfort. With nearly 100 patents its products achieve globally

leading pressure stability performance and deliver innovative

Hardware Technology Platforms solutions for home-based and mobile healthcare applications

Received for conditions such as chronic obstructive pulmonary disease

(COPD) and sleep apnea. In 2025 its oxygen concentrators

42 achieved major breakthroughs in the domestic localization of core components including lithium molecular sieves DC variable-Fluid Simulation Motor Drive Wearable Sensing national-level science and frequency compressors high-precision valve assemblies and

Technology Platform Technology Platform Technology Platform technology innovation awards cumulatively sensors with targeted enhancements to operational stability and

long-term service performance. For instance the YH-925 Auto

Bi-level Positive Airway Pressure Respirator operates below 30

Received decibels and employs an upgraded algorithm to automatically

New Materials Advanced Anti-HCT Interference Micro-nano Laboratory MEMS identify multiple sleep events and intelligently generate sleep

Technology Platform Technology Platform Process Platform 8 analysis reports while the S-5W Scroll Oxygen Concentrator is provincial-level science and equipped with a built-in variable-frequency scroll compressor

which extends its service life to 20000-30000 hours.technology innovation awards during the year

Software Technology Platforms

Received Continuous Monitoring Business

As a core strategic pillar continuous monitoring technology

102 transforms the Company's products from standalone diagnostic R&D Management Cloud Production-Marketing provincial-level science and tools into data entry points for full-lifecycle health management Platform Platform Collaboration Platform setting the stage for smart healthcare development.

technology innovation awards cumulatively

In terms of continuous glucose monitoring (CGM) the Anytime

4 and Anytime 5 series of continuous glucose monitors

Operate have obtained medical device registration certificates Intelligent Manufacturing CRM Data Analysis

Platform Platform Platform covering both in-hospital clinical treatment and home health 12 management scenarios. To further improve data stability and monitoring reliability under long-term continuous use high-tech enterprises the Company upgraded supporting sensors and algorithm

platforms in 2025. A patented vital sign anomaly recognition

Yuwell AI Agent Interaction Layer

function suspends abnormal data output upon detecting

Operate abnormal device operation reinforcing safety protection

through underlying technological design.

3 For continuous dynamic blood oxygen monitoring the YX5 series AI Agent App Product-Specific Apps (Anytime / ventilator devices) Specialized Refined pulse oximeter obtained medical device registration approval

Differentiated and Innovative (SRDI) SMEs in 2025. Featuring an adaptive silicone finger ring structure

paired with high-precision chips and optimized algorithms the

device delivers enhanced measurement performance under low

perfusion and physical motion conditions.Operate

Drawing on its profound R&D expertise Yuwell Medical collaborates with upstream and downstream partners and leading

universities worldwide to conduct cutting-edge and applied basic research in key fields including high-end respirator sensors

next-generation vital sign monitoring and defibrillation technologies wearable biosensing technology and electrochemical 3 national-level scientific and

POCT technology. Through these efforts the Company is committed to accelerating the transformation upgrading and high-end technological innovation platforms

development of domestic medical devices.

37 38Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Digital Intelligence Integration Talent Development and Innovation Culture

Yuwell Medical consistently advances its digital and intelligent transformation strategy centered on two core pillars: Digital Yuwell and Digital Regarding talent as the core driver of technological innovation Yuwell Medical

Healthcare. The Company builds end-to-end digital capabilities spanning product R&D supply chain management smart manufacturing and has established a comprehensive talent management system covering attraction

customer terminal services forming a fully data-driven operation system across the entire product lifecycle. This framework enables the delivery cultivation retention and deployment with a strategic focus on high-end R&D talent Case

of more competitive products and professional healthcare services. In 2025 the Company further optimized its information system architecture and echelon building. The Company's talent development ladder is structured as:

and underlying data infrastructure strengthened cross-system synergy and scenario-based application deployment and empowered digital domain experts - technical backbones - young professionals. The core R&D team Online Training Camp for Outstanding

functionality implementation across key business scenarios. gathers high-caliber technical professionals including recipients of the National Major R&D Technical Managers

Talent Project selected experts under the Chinese Academy of Sciences' Hundred

Talents Program outstanding young talents from Beijing and participants in Jiangsu In 2025 the Company launched an online training

Province's Entrepreneurship and Innovation Program. The team comprises 20 members camp to empower technical management Digital Yuwell Digital Healthcare

holding doctoral degrees or senior professional titles. personnel in an effort to systematically enhance

participants' project management capabilities

In terms of R&D competency development guided by the R&D Center Mentorship and cross-team collaboration skills. Centered

Management System and the High-Potential Talent Development Management on core challenges faced by technical experts

Measures the Company enhances R&D staff's industry vision and technical skills transitioning into management roles the

through specialized training cross-module exchanges and thematic seminars both training offered practical courses covering

internally and externally. Industry-leading experts are regularly invited to provide project coordination team governance and

technical consultation and professional guidance aligned with R&D project priorities technical decision-making. This helped technical

and technological directions supporting targeted problem-solving and continuous professionals adapt rapidly to management

Digital Digital Digital Digital Digital R&D Digital Digital Intelligent optimization in core technical fields. The Company also standardizes qualification responsibilities while further strengthening

Supply Chain Production Operations Marketing Products Services Functions assessment for R&D roles to build a sustainable talent pipeline. organizational efficiency and project delivery

To foster an innovation-driven culture that encourages exploration and tolerates quality across the entire R&D system.IT DT BT reasonable failure the Company has introduced diversified innovation incentives

(Business Digitalization) (Digital Technology Empowerment) (Business Technology Innovation) including the Quarterly R&D Star Selection. These mechanisms grant priority resources

to outstanding projects fully stimulating employees' innovative potential and

sustaining long-term development.Focusing on system interconnection data-driven operations and intelligent

decision-making Yuwell Medical is accelerating the construction of smart

factories. By integrating core systems including APS (Advanced Planning Technology Ethics

and Scheduling) ERP (Enterprise Resource Planning) PLM (Product Listed among the

Lifecycle Management) MES (Manufacturing Execution System) and WMS first batch of National

(Warehouse Management System) and leveraging enabling technologies Excellent Smart Factories Upholding its ethos of integrity and responsible practice Yuwell Medical prioritizes the ethical implications of technological activities and

such as big data cloud computing AI and the industrial internet the integrates technology ethics requirements into daily operations. The Company prohibits the research and application of any technologies

Company has deployed intelligent flexible production lines. These lines detrimental to the natural environment human health public safety or social ethics. Through the development of innovative practical products

feature automated manufacturing real-time data collection and automatic Selected as a technologies and processes it aims to create positive value and drive social progress.fault identification and intervention achieving end-to-end automation National Digital Pilot Enterprise

and closed-loop data management from raw material warehousing to Data Collection and Application

finished product delivery. In recent years the Company has systematically

advanced intelligent manufacturing and automation through targeted Recognized as a Adhering to the principles of legality legitimacy necessity and data minimization the Company ensures full compliance in the collection storage

project implementation launching around 30 automation initiatives. National Leading Enterprise in and utilization of personal data while protecting the legitimate rights and interests of data subjects through strict permission management and

Technologies such as AI visual inspection CCD image recognition truss comprehensive information security safeguards.Future Industry Innovation and

robots automatic screwing and assembly intelligent performance testing For detailed provisions please refer to the "Information Security and Privacy Protection" section of this report.and flexible manufacturing are now widely used in processing assembly Development

quality inspection and packaging significantly boosting the Company's

ability to respond rapidly to complex global order demands. Protection of Participants' Rights and Interests

In clinical research activities the Company strictly complies with the Declaration of Helsinki the Good Clinical Practice for Medical Devices and

the ISO 14155 management system. All clinical research projects must be reviewed and approved by an independent ethics committee prior to

implementation with ongoing monitoring and evaluation conducted throughout the research process. Before project initiation researchers fully

inform participants of the research purpose procedures and potential risks and obtain written informed consent to guarantee participants' right

to information and self-determination. All data collection and usage activities are conducted in full compliance with regulatory requirements to

protect participant privacy and data security. The Company continuously monitors participants' physical condition throughout the study and

provides timely medical support when needed fully safeguarding their legitimate rights and interests.Responsible AI Governance

Throughout the AI R&D and application lifecycle the Company upholds strict ethical standards: safety and effectiveness privacy protection

fairness and non-discrimination transparency and explainability and accountability and traceability. By implementing compliant R&D workflows

data anonymization algorithm reviews real-time risk monitoring employee ethics training and proactive external oversight it ensures the safe

2025 Yuwell Medical Developer Conference controllable application of AI technologies.

39 40Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Intellectual Property Protection Impact Risk and Opportunity Management

Cumulative valid patents granted Yuwell Medical strictly abides by the Patent Law of the People's Republic of Facing a spectrum of key risks including rapid technological iteration industry disruption driven by emerging technologies such

China the Trademark Law of the People's Republic of China the Copyright

1355 as AI and big data uncertainties in new product development technical talent mobility and evolving policy and regulatory Law of the People's Republic of China the Anti-Unfair Competition Law of the requirements Yuwell Medical has established a cross-departmental IPD management workflow. This framework ensures risk People's Republic of China and relevant regulatory rules for the medical device management is embedded throughout the entire product R&D process.

industry. It has formulated a complete set of administrative measures including

the Intellectual Property Management System and has established a dedicated Through cross-functional collaboration among R&D marketing production procurement and after-sales teams the IPD process

intellectual property management department to underpin the Company's enables rapid information sharing and cross-departmental synergy. It supports multi-dimensional risk identification covering Cumulative valid invention

patents granted technological innovation capabilities and market competitiveness. technical feasibility market adaptability supply chain stability and regulatory compliance. The Company consistently optimizes its

R&D risk database to dynamically monitor and manage potential R&D-related risks. To address uncertainties in technological R&D

193 The Company advances its global trademark and patent portfolio through the IPD mechanism adopts a market-demand-oriented approach. Product development is closely aligned with customer needs enhanced daily monitoring and professional review. In light of market with phased assessment and flexible adjustment of R&D priorities and technical solutions to mitigate the risk of R&D deviation from access rules and competitive landscapes in key regions it proactively market demands. The Company also emphasizes the sustainability of risk management. It conducts regular reviews of risk registers

conducts patent risk analysis and formulates response plans. The Company evaluates the effectiveness of existing risk response strategies and adjusts risk management arrangements in a timely manner

has established a standardized patent dispute handling mechanism based on project progress and changes in the external environment. Dedicated risk early-warning and reporting systems have

New patent applications and legal reserve system to support the compliant development of been established to enable rapid response and effective risk control. In external cooperation and open innovation initiatives the

filed in 2025 overseas businesses. In 2025 it continued to expand its patent portfolio Company rigorously assesses partners' regulatory compliance status and technical capabilities. Formal confidentiality agreements

in core product segments including respiratory therapy blood glucose

335 and cooperation terms are signed to clarify respective rights and obligations consequently minimizing collaborative risks.management and POCT and home health testing. The Company integrates intellectual property risk prevention into routine R&D project management. Guided by the R&D Intellectual The Company also prioritizes raising employees' awareness of intellectual Property Risk Assessment Form it conducts systematic IP risk evaluation at key stages including project initiation technical

property protection. Regular IP training and external exchanges are solution evaluation and achievement commercialization. Strict IP protection strategies are implemented to proactively guard

organized to enhance the understanding of IP compliance management against technology leakage and infringement risks. In 2025 the Company strengthened end-to-end IP risk identification across

New patents granted in 2025 and risk prevention among R&D and relevant functional teams. In 2025 four the full R&D process. Global patent searches were conducted for core technical directions at the project initiation phase and

specialized IP training sessions were held covering core legal provisions

193 comprehensive IP compliance reviews were organized prior to product launches. Continuous monitoring and targeted research internal IP management systems and patent infringement risk control. were carried out to track potential infringement risks with focused oversight applied to high-risk scenarios such as e-commerce External professional institutions were invited to deliver a special training sales platforms overseas exhibitions and cross-border business operations.

session on Practical Guidelines for Trade Secret Protection at Yuwell's

Global R&D Headquarters in Nanjing further strengthening employees'

compliance awareness and comprehensive risk prevention capabilities.New invention patents

granted in 2025

36

Indicators and Targets

Cumulative software

copyrights registered

Indicator / Target 2025 Achievement Status

208 Target achievedSustain adequate R&D investment to drive Total R&D investment: RMB 570.15 million accounting for 7.17% of

product upgrading and business growth through

operating revenue

technological innovation

R&D personnel: 1370 accounting for 20.52% of total workforce

New software copyrights

registered in 2025

Target achieved

18 Steadily increase annual patent applications and granted patents Cumulative valid patents granted: 1355; New patent applications filed in 2025: 335; New patents granted in 2025: 193

41 42Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Commitment to Quality

Full Lifecycle Collaborative Management Framework

Product Quality and Safety

Governance Production-Sales Collaboration Platform APS Planning and

IPD Process Execution Platform Intelligent WMS Cloud Platform and

To deliver high-quality and highly reliable products Yuwell Medical has built a high-standard full-lifecycle quality management PLM Platform Distribution System One Product One Code Platform O2P &

system. Through clear quality policies strategic objectives institutional frameworks and core quality principles it effectively guides SG Platform Big Data Platform ERP System

and standardizes company-wide quality practices. Corporate quality policies and quality objectives are formulated and issued by top

management. As the overall coordination and promotion body the Quality Department is staffed with full-time quality professionals

including quality officers quality managers quality engineers and system engineers who oversee the daily operation and continuous Design

improvement of the quality management system. A robust cross-departmental collaboration mechanism is also in place. Functional R&D Procurement Production Sales After-sales

departments including R&D procurement production sales and after-sales services participate in quality management and risk control

in accordance with defined responsibilities ensuring rigorous quality requirements are embedded across the entire product lifecycle.The Company strictly complies with the Product Quality Law of the People's Republic of China the Regulations for the Supervision

and Administration of Medical Devices and the Good Manufacturing Practice for Medical Devices while also aligning its operations Full Lifecycle Quality Management Customer Complaint and Feedback Mechanism

with relevant international quality management standards.1 It has formulated and implemented the corporate Quality Manual

and a complete set of supporting procedural documents including the Design and Development Control Procedure the Incoming Digital and Intelligent Production-Marketing System

Inspection Control Procedure the In-process and Final Inspection Control Procedure the Non-conforming Product Control

Procedure the Document Control Procedure and the Risk Management Control Procedure. This establishes a high-standard quality

management and full-lifecycle risk prevention system. In 2025 the Company kept abreast of updates to medical device regulations

and technical standards in China and major overseas markets. Accordingly it revised 23 quality management procedural

documents covering design and development control supplier management and non-conforming product handling alongside

updates to 500 inspection specifications. These revisions ensure all production processes fully comply with the latest operational

standards substantially elevating the overall quality level of the Company's products.Strategy and Management Mechanisms Major Product Certifications Quality Management System Certifications

A user-centric full-value-chain collaborative management model underpins Yuwell Medical's core operational strategy. Centered on EU Medical Device CE (Conformité Européene) Certification The Company has obtained the following

customer demands the Company integrates user requirements and stringent quality standards into every business link covering authoritative system certifications:

product design R&D procurement production sales and after-sales services. Supported by standardized workflows and a complete EU MDR (Medical Device Regulation) Certification

institutional framework including management systems performance indicators incentive policies and team building mechanisms ISO 9001 Quality Management System、

the Company embeds rigorous quality and risk management across the entire product lifecycle. This guarantees consistent product ISO 13485 Medical Devices Quality Management U.S. FDA (Food and Drug Administration) Certification

quality and agile responsiveness to customer needs with clear feedback and execution mechanisms at every business stage. The System、

Company is thereby able to deliver customer-oriented high-quality products and strengthen overall market competitiveness. Medical Device Single Audit Program (MDSAP)

KGMP (Korea Good Manufacturing Practice) Certification

In addition Yuwell Medical accelerates digital and intelligent transformation by building an end-to-end digital operation ecosystem

integrated with APS ERP PLM MES WMS and other core systems. The framework enables horizontal data integration across

valid China Class II and III medical device registration certificates

functions such as R&D supply chain manufacturing and service workflows while also supporting vertical business integration 164

across the Group. This data-driven intelligent manufacturing system helps ensure stable and consistent product quality. 198 valid China Class I medical device filing records

1 Applicable standards and regulations include: the GB/T 42061-2022 (identical to ISO 13485:2016 Medical devices - Quality management systems - Re-

quirements for regulatory purposes) the GB/T 19001-2016 (identical to ISO 9001:2015 Quality management systems - Requirements) the GB/T 42062-2022

(identical to ISO 14971:2019 Medical devices - Application of risk management to medical devices) the Good Manufacturing Practice for Medical Devices

the EU Medical Devices Regulation (MDR) the EU In Vitro Diagnostic Medical Devices Regulation (IVDR) the Brazilian Health Regulatory Agency Resolution

No. 665 (RDC ANVISA 665/2022) the U.S. Code of Federal Regulations Title 21 Part 820 - Quality System Regulation the Japan MHLW Ministerial Ordinance

No. 169 Ordinance on Standards for Manufacturing Control and Quality Control of Medical Devices and In Vitro Diagnostic Reagents (MHLW Ministerial Or- Note: Medical device registration and filing data cover Yuwell Medical's parent company Suzhou Medical Appliance Factory Suzhou Yuwell Medical Tech-

dinance No. 169) the Quality Management System requirements of the Conformity Assessment Procedures of the Australian Therapeutic Goods (Medical nology Co. Ltd. Primedic (Jiangsu) Medical Science and Technology Co. Ltd. Jiangsu Yuwell-POCT Biological Technology Co. Ltd. 66 Vision Tech Co.Devices) Regulations (TG[MD]R Sch3) the Korea Medical Device (GMP) Regulations the Canadian Medical Devices Regulations (SOR/98-282) and the Med- Ltd. Xizang Yuwell Medical Investment Co. Ltd. Nanjing Yuwell Software Technology Co. Ltd. Shanghai Zhongyou Pharmaceutical High-Tech Co. Ltd.ical Device Single Audit Program Audit Approach (MDSAP AU P0002.008). and Chalice Solution PTE Ltd.

4344

Customer Satisfaction

Customer NeedsJiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Quality Testing

Yuwell Medical has established a comprehensive quality inspection and testing

End-to-End Full Product Lifecycle Quality Management system. Its Product Safety Laboratory has been accredited by the China National

Accreditation Service for Conformity Assessment (CNAS) and holds multiple

internationally recognized qualifications including ISO 17025 CTF Testing Laboratory

and UL Witnessed Laboratory certifications. The Laboratory regularly participates in

R&D and Design Sales professional training academic seminars and proficiency assessments organized by

Leveraging the cross-departmental IPD framework the Company has established an end-to-end management mechanism covering user Seamless data connectivity is realized domestic and international third-party institutions to ensure its testing capabilities

demand identification product design verification and validation and design transfer. This ensures R&D and design outcomes are fully across production-to-end-user workflows. remain aligned with industry-leading standards. Beyond mandatory verification

aligned with user expectations. A dedicated Design Quality Assurance (DQA) team and user expert panel are set up to embed quality control A cross-departmental collaborative user cycles the Company conducts regular internal random inspections and daily

requirements into every critical upstream stage deeply integrating quality standards into the entire IPD process. The system enables full experience optimization mechanism performance monitoring on key testing equipment such as oxygen analyzers and

quality traceability from initial requirement definition to official market launch mitigating R&D risks at the source. is established including regular cross- blood pressure simulators. This helps proactively identify potential performance

functional user experience workshops and deviations and enables forward-looking prevention of quality risks. For product

The PLM platform boosts cross-functional collaboration efficiency between R&D and other departments enhancing project reliability external service coordination meetings. The standard revisions and new product model launches the Company conducts in-house

and predictability. Rigorous quality reviews are conducted at key R&D milestones. Quality gates including technical reviews and business Company extensively collects integrates testing supplemented by third-party verification to validate safety and reliability prior

decision reviews ensure design deliverables comply with established quality benchmarks and regulatory requirements. In the middle and conducts in-depth analysis of product to mass production. In 2025 the pass rate for submitted product testing reached

and later stages of product development real end-users are invited to conduct usability testing on functional and engineering prototypes feedback and operational data from service 100% alongside a 100% pass rate for regulatory random sampling inspections.under near real-world application scenarios. Identified defects are prioritized for rectification and managed under closed-loop protocols channels. Monthly and quarterly product

maintaining stringent design quality standards. In terms of preventive quality control the Company has formulated standardized feedback analysis reports are compiled with procedures for incoming material inspection in-process inspection and finished product

cross-functional teams jointly formulating inspection. Multi-layered testing and monitoring mechanisms are deployed for key quality

actionable improvement measures to drive risk points enforcing rigorous quality oversight from raw material receipt through to

fundamental enhancements in product product shipment. This effectively mitigates potential product safety and quality hazards.Certification and Registration quality and user experience. In 2025 through pre-delivery inspections of new products and dynamic sampling of

finished goods inventory the Company completed supplementary testing for 130 product

Product registration and certification management are fully embedded into the corporate quality management system. During the product The Company conducts real-time monitoring

of market customer complaints and batches and validation testing for materials undergoing specification changes. Over 1000 development phase the Company defines applicable regulatory and certification criteria for different product categories and target markets. CMM inspections were conducted to reduce quality fluctuation risks at the source.These requirements are implemented throughout subsequent R&D validation and production processes to guarantee product quality and regulatory random inspection results. Strict

compliant market access. The quality management system operates in synergy with regulatory compliance management with compliance post-warehousing re-inspection procedures

performance included in regular management reviews to ensure ongoing alignment with evolving regulatory standards. are enforced for medical devices to sustain

consistent product quality and prevent non- Product Safety Management

conforming products from entering clinical In strict accordance with regulatory requirements including the Good Manufacturing

use. Packaging quality review and control are Practice for Medical Devices the Regulation of Medical Devices Recall Administration

further strengthened to guarantee product and the Measures for the Management of the Monitoring and Reevaluation of

Procurement integrity throughout distribution. Medical Device Adverse Events Yuwell Medical has formulated and implemented

The Company has established a quality and compliance-oriented supplier management framework supported by the Supplier Management internal management systems such as the Medical Device Adverse Event Monitoring

Control Procedure. It implements rigorous supplier access audits execution of quality agreements change management protocols and Management System the Protocol for Active Reporting of Adverse Events the

ongoing supplier performance evaluation. Advanced quality testing equipment and technologies are deployed to build a comprehensive raw Domestic Recall Control Procedure and the Overseas Medical Device Adverse Event

material quality control system ensuring supply stability while meeting international quality and safety standards. Post-market Management Reporting and Recall Control Procedure. These policies help standardize the full

A comprehensive post-market quality process management of adverse event reporting risk assessment and product recall For further details on procurement management refer to the "Supply Chain Quality Control" section of this report.management system is established covering protocols. Regular mock recall exercises are conducted to validate and optimize recall

adverse event surveillance risk assessment workflows enhancing the timeliness and effectiveness of risk response. No product

a n d p ro d u ct re ca l l m e c h a n i s m s to recalls were initiated during the reporting period.continuously monitor the safety and efficacy The Company operates a proactive adverse event monitoring framework guided

Production of marketed products. Adhering to the by the principle of reporting any suspected adverse event. Customer feedback is

Standard Operating Procedures (SOPs) are fully formulated and strictly enforced. Critical in-production control points including first-piece principle of reporting any suspected adverse promptly reviewed and assessed. Where a potential medical device adverse event is

inspection in-process patrol inspection and final finished inspection are rigorously implemented. Production equipment undergoes regular event the Quality Department implements identified standardized reporting procedures are triggered immediately alongside

maintenance and calibration to sustain stable and controllable manufacturing workflows. Full batch management is applied to all raw timely and effective post-market risk control RCA and targeted risk control measures. This enables early detection and containment

materials and finished products ensuring complete transparency and traceability across the production process. for medical devices. of post-market risks. Enhanced adverse event monitoring is implemented for core

The Company regularly organizes cross- product lines which continuously improves the Company's capability to identify and The Company continues to advance intelligent manufacturing and digital management to enhance lean management capabilities effectively

functional reviews involving quality R&D respond to post-market risks.reduce operational errors rapidly identify areas for improvement and optimize quality control strategies ensuring stable efficient and

high-quality production processes. Through the application of its production-sales platform and related systems operational efficiency production and technical teams to analyze

improved by approximately 30% in 2025 supporting the stable and reliable operation of production processes. In addition the Yuwell high-risk and frequently occurring adverse Number of product recalls Proportion of products recalled due to safety

Wuliubao application enables full-process visual tracking of transportation and logistics allowing precise control over delivery quality. events. Standardized workflows for event

analysis impact evaluation and corrective during the year and health reasons

Non-conforming products are managed in accordance with standardized graded disposition procedures. For major or recurring quality action deployment are formalized to sustain

incidents the Corrective and Preventive Action (CAPA) procedure is activated covering root cause analysis (RCA) corrective action the long-term safety and effectiveness of all

implementation and effectiveness verification to achieve closed-loop quality remediation. marketed products. 0 0%

45 46Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Company-wide Quality Culture Impact Risk and Opportunity Management

To fully implement its corporate quality policy Yuwell Medical

promotes company-wide engagement in quality management. Yuwell Medical integrates product qual ity r isk into i ts covering organizational structure and personnel management

A diversified quality training curriculum has been developed to comprehensive risk management framework. It conducts facility and equipment administration document control design

comprehensively elevate all employees' quality awareness and systematic identification assessment control and monitoring and development procurement production management

professional expertise. The Company formulates an annual quality of quality risks across the entire product lifecycle and verifies quality inspection and control sales and after-sales services non-

training roadmap implements post-training assessments and the effectiveness of the quality system through internal and conforming product management adverse event monitoring

effectiveness evaluations and conducts regular training reviews external validation mechanisms. During quality risk assessment analytical review and continuous improvement. These

and curriculum optimization to ensure sustained training outcomes. the Company focuses on four core risk categories: design and audits helped identify management gaps and drove targeted

In 2025 it launched company-wide quality culture campaigns and development risks raw material and supplier risks production corrective actions. The Company also underwent 55 external

universal quality management training. Through workshop briefings and process risks and regulatory and supervisory compliance quality management system audits conducted by government

on-site patrol guidance and scoring assessments quality awareness risks. Quality risk management requirements are embedded regulators and third-party institutions achieving a 100% pass

was deeply embedded into the Company's long-term development into every stage of design and development procurement rate. For any quality deviations arising during production the

ethos. Quality training was integrated into the mandatory induction production sales and post-market management. In adherence to Company promptly launches CAPAs and applies RCA to pinpoint

curriculum for new employees and specialized training was provided ISO 14971 and ISO 13485 standards the Company closely tracks fundamental causes ensuring the quality management system

for staff in core quality roles ensuring all key practitioners hold valid the latest regulatory updates and technological advancements. maintains reliable high-standard operation.certifications and maintain ongoing competency compliance. At Yuwell Medical on-site quality training It proactively identifies and exercises strict control over potential

In response to potential operational disruptions stemming

Yuwell Medical's parent company annual quality training recorded quality risks throughout the product lifecycle and applies tiered

from supply chain volatility capacity fluctuation logistics

3537 attendances achieving 100% coverage for quality personnel management protocols for risks of different severity levels to

uncertainty and policy adjustments the Company has built a

and a 100% assessment pass rate. Employees' quality awareness and ensure timely and proper resolution.dynamic risk assessment and early-warning mechanism. It also

professional operational capabilities have seen steady improvement.To sustain the effective operation of the quality management enhances resilience via robust supply chain construction flexible

system the Company conducts regular internal quality audits and production scheduling logistics guarantee arrangements and

Supply Chain Quality Control accepts external audits from regulatory authorities certification real-time regulatory policy tracking. During the reporting period

Yuwell Medical has formulated internal management documents manufacturing process control change management non-conforming bodies and business partners which continuously enhances the the Company further advanced the development of its intelligent

including the Supplier Management Control Procedure. To ensure product handling continuous improvement and after-sales service. completeness and operational effectiveness of the quality system. manufacturing system to steadily improve production efficiency

product quality and safety it implements closed-loop management The Quality Department and relevant functional teams jointly review In 2025 the Company completed 81 internal quality audits and quality stability.covering supplier qualification audit incoming material inspection and analyze supplier audit results follow up on rectification progress

performance evaluation and continuous quality improvement. and conduct re-inspection for closed-loop resolution. When necessary

Potential suppliers are subject to rigorous quality management system the Company provides quality training professional guidance and

audits and are only admitted to the qualified supplier database upon technical support to help suppliers upgrade their quality management

passing assessment. All suppliers are required to sign a formal Quality capabilities and achieve sustained improvement. To strengthen Indicators and Targets

Agreement; the 2025 revised version further strengthens management quality synergy across the supply chain Yuwell Medical held a

requirements for critical category changes. supplier quality conference in 2025 which clarified unified quality

Indicator / Target 2025 Achievement Status

requirements compliance standards and collaborative improvement

The Company adopts graded quality control for raw materials.priorities for all suppliers. Targeted training was delivered on

All incoming materials undergo mandatory inspection upon Target achieved

regulations including RoHS REACH drinking water safety standards

receipt with full batch number management implemented to Production first-pass yield ≥ 99.30%

and toxic substance control laws aiming to raise overall compliance Actual first-pass yield: 99.75%

ensure complete traceability of key raw materials. Strict incoming

awareness throughout the supply chain.inspection is enforced for critical raw materials and components to 100% product sampling inspection pass rate Target achieved

guarantee quality consistency while effectively improving supplier In the event of supplier product quality non-conformities the

on-time delivery performance. During the trial production phase Company issues a CAPA report in accordance with the Corrective 100% training coverage for quality personnel Target achieved

of new material adoption the Company conducts close process and Preventive Control Procedure. For suppliers with willingness

monitoring to secure new material quality. Intelligent inspection to improve the Company provides tailored support to formulate

Zero major quality accidents Target achieved

equipment including intelligent flash testers intelligent weighing improvement plans including quality management system

devices for axillary crutches and AI label recognition detectors is optimization production process capability enhancement and

deployed to upgrade overall incoming inspection capability. The document and procedure standardization. For suppliers with Note: Data covers only Yuwell Medical's parent company.Company also collects and analyzes supplier incoming quality data frequent or major quality incidents dedicated quality engineers

on a monthly basis facilitating full material traceability and driving are assigned to develop and track special improvement plans

continuous supplier quality improvement. ensuring effective resolution within a defined timeframe. During the

reporting period the Company conducted on-site quality audits of

A comprehensive supplier audit mechanism has been established

37 suppliers covering quality management systems manufacturing

supported by a formal annual audit plan and rigorous on-site execution.process control and change management; no major quality non-

Audits cover multiple dimensions: quality management system

conformities were identified among any audited suppliers.product design and development material supplier management

47 48Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Professional Services

Upholding a user-centric operational philosophy Yuwell Medical prioritizes

customer needs as the foundation of all service delivery. In compliance

with GB/T 27922 Evaluation System for After-Sales Service of Commodity

and relevant industry requirements the Company has established a full-

lifecycle service system covering pre-sales consultation in-sales technical

support and after-sales warranty services. Through standardized process

management and digital tool deployment it enhances customer demand

response efficiency and problem resolution quality which optimizes users'

end-to-end service experience and overall satisfaction.During the reporting period the Company fully adhered to customer

service compliance requirements. There were no regulatory violations

related to the health and safety impacts of products and services no

irregularities involving product and service information and labeling

and zero substantiated complaints concerning customer privacy

infringement or personal data loss.Listed in China Top 100 Service Brands 2025

Proactive Service User Care

The Company has formulated the Yuwell Medical Service Process and Standards and built an omnichannel customer service Based on deep insight into user demands the Company delivers differentiated personalized value-added services to build a

ecosystem featuring front-end multi-channel access mid-end collaborative platforms and back-end supporting systems. A product humanistic service system. For daily product use online wearing guidance and one-on-one video tutoring are provided to ensure

insight and operational analysis platform has been developed to enable seamless linkage between brand development user standardized operation and guarantee optimal user experience. For vulnerable groups including elderly people living alone

operation and product iteration. The Company consistently optimizes its service strategies and quality through proactive service individuals with disabilities and economically disadvantaged communities the Company offers door-to-door services freight

layout to elevate overall user experience. and maintenance fee exemptions free accessory gifts and standby equipment support. Through AI customer service member

ecosystem development and regular user return visits it provides more personalized and considerate services. In addition the

Company has established an integrated online-offline user education and training system. By offering operational guidance courses

Diverse The Company provides real-time interactive services through multiple touchpoints including the visual tutorials knowledge brochures and short video content it empowers users with self-health management capabilities

Channels 400-service hotline WeChat official account dedicated mobile application Enterprise WeChat and achieving a service upgrade from product supply to long-term companion health management.mainstream e-commerce platforms.The Company steadily expands its nationwide after-sales service network having established over 400

service outlets covering provincial capitals and major cities to deliver localized support and improve Case

service accessibility and stability.Yuwell Medical Hosts the Inaugural Co-voice·2025 Brand User Day

High-Quality The Company has built a preventive service quality management system shifting its service model from

Services passive response to proactive risk prevention. In October 2025 Yuwell Medical held its inaugural Co-voice·2025 Brand User Day. Nearly

100 invited users toured the Company's national-level smart factory where they observed

A real-time Voice of Customer (VOC) monitoring system has been deployed leveraging data analysis the complete medical product manufacturing process. Through face-to-face exchanges with

platforms to continuously identify abnormal customer feedback drive timely issue resolution core product and R&D teams participants provided authentic user needs and suggestions

evaluate implementation effectiveness and iteratively optimize service protocols. enabling the Company to refine product iteration and service optimization. This event fully

An automated service quality scoring mechanism has been adopted to assess customer service demonstrated the Company's user-centric philosophy and drove targeted product and service

performance identify operational weaknesses and facilitate data-driven continuous improvement. improvements based on real user feedback.Service risk control has been strengthened with standardized workflows for real-time risk logging rapid

response and full-process tracking; solutions are archived in the corporate knowledge base and regular

review meetings are held to address outstanding issues and dynamically optimize service strategies.

49 50Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Responsible Marketing

Customer Satisfaction

Complaint Response Management In all marketing and promotional activities Yuwell Medical strictly complies with the Advertising Law of the People's Republic of China

the Anti-Unfair Competition Law of the People's Republic of China

By issuing the Yuwell Medical Complaint Management Regulation the Company consistently refines its mechanisms for the receipt Through regular satisfaction sur veys the the Regulations for the Supervision and Administration of Medical

processing tracking and oversight of user feedback. Customer complaints are centrally accepted through multiple channels Company gathers authentic customer opinions Devices the Measures for the Administration of Registration and

including the corporate customer service platform offline after-sales outlets e-commerce platforms public feedback channels a n d e va l u a t i o n s . T h e s e s u r v e y s p r o v i d e Filing of Medical Devices the Regulations on the Administration of

and government regulatory authorities. All feedback is handled promptly and efficiently. Targeted CAPAs are formulated and comprehensive insights into user feedback and Medical Device Instructions and Labels and other applicable laws

implemented and insights from complaint cases are integrated into process optimization and employee training which drives improvement suggestions guiding continuous and regulatory provisions. The Company has formulated supporting

iterative upgrades to product quality and overall service performance. quality upgrades for its products and services. The internal policies including the Responsible Promotion Policy the

2025 customer satisfaction survey covered core Front-end Marketing Service Standards and Specifications and the

dimensions including product quality delivery Internal Audit Management Procedure. These frameworks clarify

Receipt Recording Initial performance pricing after-sales service and the information dissemination mechanism for product content and Assessment technical support with a 100% questionnaire promotional campaigns ensuring all products are marketed in an

Collect complaint information Compile and archive complete Conduct preliminary complaint distribution and recovery rate. Survey results ethical scientific and objective manner. The Company prohibits

submitted via customer service user feedback details evaluation and provide initial serve as a core reference for service management sales and business expansion through commercial bribery unfair

platforms after-sales outlet staff response to the user a n d a r e i n t e g r a t e d i n t o s e r v i c e q u a l i t y competition or any other illegal means.government regulatory bodies and assessment employee training arrangement

public feedback channels and business process optimization. A dedicated Yuwell Medical has established a robust source control mechanism

tracking and verification mechanism has been for marketing content. In accordance with internal guides such

Deviation Investigation established for improvement initiatives forming as the Document Standardization Guidelines all promotional Feedback Correction & Evaluation a closed-loop management cycle of monitoring materials must be strictly compiled based on officially approved

Communicate investigation Launch deviation investigation Organize cross-departmental → analysis → improvement → validation for product registration dossiers filing records and published

findings and finalized handling and implement formal CAPA investigation and risk customer satisfaction management. In 2025 the academic literature. A comprehensive compliance review and

plans to the user procedures assessment to identify root Company optimized standardized operational control process is embedded throughout the entire marketing

causes and existing problems protocols for key service nodes strengthened workflow. All externally released materials related to product

cross-departmental collaboration mechanisms promotion campaign activities and market communications

Yuwell Medical Complaint Handling Workflow and adopted AI-powered intelligent service quality

are subject to multi-level rigorous review prior to publication

supervision tools. These improvements further ensuring full alignment with applicable laws regulatory

enabled rapid response precise case disposal requirements and internal management standards. Product To enhance overall response efficiency the Company has established a

and premium user experience driving steady packaging design delivers clear and accessible information for tiered collaborative customer service system. AI service robots are deployed

across all channels to rapidly resolve standardized consultations and routine growth in overall customer satisfaction.users across different regions with regular reviews conducted to

maintain consistency with the latest clinical evidence and official

inquiries. Human customer service teams focus on addressing complex Customer complaint handling rate approved documentation. The Company strengthens compliance

requests personalized demands and matters requiring cross-departmental during the year training for marketing personnel and integrates compliance

coordination. This human-machine collaboration model effectively improves B2B customer satisfaction

100% performance into the sales team's formal assessment system customer satisfaction. Supported by cloud platform infrastructure the 97.7% which effectively mitigates marketing-related compliance risks.Company has built an intelligent knowledge base that archives standardized resolution guidelines for common customer issues. The knowledge base Furthermore through a unified corporate knowledge base and AI

enables consistent and accurate responses by service staff and supports user robot corpus the Company systematically organizes and regularly

self-service inquiries which substantially shortens overall response lead updates product information policy guidelines and compliance

time. Robotic Process Automation (RPA) digital employees and upgraded tips covering core business scenarios. A negative list of prohibited Customer complaint closure rate B2C customer satisfaction

automated work order platforms optimize the full workflow of complaint and restricted promotional wording has been established to ban

receipt task assignment and case disposal. The launch of an intelligent 99.8% 98.4% exaggerated efficacy claims and misleading statements ensuring after-sales assistant further elevates the end-to-end user service experience. all marketing content remains scientific accurate standardized and internally consistent.Within the after-sales workflow a unified centralized service platform

enables users to submit repair requests and track processing status in real

time. This creates digital closed-loop management across the entire repair

process ensuring compliance process control and continuous optimization.

51 52Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Access to Quality

Healthcare Human-Centric and Improving Product Affordability

Inclusive Design Upholding the WHO's fair pricing principles Yuwell Medical adopts a value-based equitable and transparent product pricing

Guided by i ts corporate v is ion of leading industr y Prioritizing product usability safety and comfort strategy. The Company develops sustainable pricing models that balance stringent product quality standards with affordability

development through innovation and enhancing the health of Yuwell Medical adopts human-centric inclusive goals which enhances healthcare accessibility in underdeveloped regions and primary care settings. Tailored pricing frameworks

millions of families Yuwell Medical advances the accessibility design. Special attention is given to elderly users are formulated according to the development maturity of individual markets ensuring rigorous implementation of pricing policies

of quality healthcare by expanding geographic product people with special needs and home health full price transparency and broad product accessibility. These measures enable the Company's innovative medical devices to

coverage optimizing scenario-based product adaptation and management scenarios enabling safe and convenient benefit wider populations worldwide.adopting inclusive product design. While ensuring product product use for diverse populations in household and

quality and regulatory compliance the Company balances primary healthcare settings. The Company allocates

product performance with affordability to make high-quality dedicated funds to strengthen core R&D capabilities For developing economies the Company applies differentiated pricing to blood glucose monitoring products. Without

medical devices accessible to broader populations. accelerate the development of digital and intelligent compromising product performance safety specifications or regulatory compliance the pricing of these products is

medical devices and launch user-friendly smart maintained at approximately two-thirds of comparable European and American brands effectively easing the economic

products. Through high-quality cost-effective and

Product Accessibility burden of chronic disease management in resource-limited regions.sustainable product offerings it fulfills its corporate

vision of enhancing the health of millions of families.Expanding Global Geographic Anytime 5 Pro

Reach A CGM product equipped with voice broadcast and

a large-font display to accommodate elderly and Addressing Major Chronic Diseases

Leveraging its global production layout and comprehensive visually impaired users; support family data sharing

market service network the Company supports stable and connectivity with smart wearables for convenient Yuwell Medical prioritizes major chronic diseases that impose heavy long-term health and economic burdens on patients. In

product supply and localized after-sales services across remote monitoring. response to prolonged diagnosis-treatment cycles and strong home-based management demand the Company consistently

countries and regions worldwide. By the end of the reporting develops widely applicable intelligent and high-precision products and wearable devices. These offerings support healthcare

period Yuwell Medical's products were available in more than institutions and end users in conducting standardized full-cycle chronic health management.

100 countries and regions globally. Committed to advancing remote chronic disease management the Company has built an out-of-hospital continuous health

During 2025 Yuwell-POCT further expanded its presence in monitoring system to empower users with independent home health management. For further details refer to the Yuwell Medical

low- and middle-income markets with its products launched 2024 Sustainability Report and the "Smart Healthcare" section of this report. By integrating vital sign testing devices the Company

in North Africa South Africa India Vietnam Thailand Yuwell Primedic AEDs enables multi-indicator home monitoring covering blood pressure pulse rate blood oxygen body temperature blood glucose

Brazil Indonesia and other regions. The company actively Feature a built-in camera and SOS alarm to markedly and uric acid. Intelligent linkage of multi-dimensional health indicators facilitates early identification and timely intervention of

participated in government procurement projects in Russia improve rescue response and survival rates within the potential health risks advancing the front-end prevention and management of chronic diseases.India and other markets supporting local healthcare resource critical "golden four minutes" of emergency treatment.allocation through targeted product adaptation and optimized

supply planning. Through patient education and medical

knowledge dissemination initiatives it helped end users and

medical professionals better understand the application of

blood glucose monitoring in chronic disease management and

improved product accessibility at primary healthcare facilities.Suzhou Hwato Vacuum Cupping & Manual

In the emergency response sector Yuwell Primedic promotes Negative Pressure Cup Series

the targeted deployment and scenario adaptation of AED Adopt a flameless negative pressure design to lower

devices across diverse application environments. AED products inherent safety risks and significantly improve ease of

are widely deployed in educational institutions cultural and use for household scenarios.tourism venues medical and healthcare facilities industrial

sites emergency rescue systems and public spaces supported

by standardized operational training and emergency response

mechanisms to enhance real-scene usability and emergency

rescue efficiency. The Company's emergency products cover

over 150 countries and regions across Europe the Asia-Pacific

the Middle East and South America.

53 54Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Smart Healthcare

To accelerate the in-depth development of smart healthcare Yuwell Medical integrates traditional medical devices with cutting-

edge technologies such as the IoT and AI. By building an open enabling platform establishing comprehensive personal and family

digital health records and empowering industry partners to develop digital medical service ecosystems the Company remains Case

committed to delivering innovative high-quality and accessible medical services to broader communities.Remote Chronic Disease Management

Digital Health

Innovation Subscription to Holistic Health Products and Services (Exercise Diet Mental Health Content) Remote chronic disease management is a core component of Yuwell Medical's "Internet + Healthcare" strategy. Through

the linkage of intelligent hardware a digital remote chronic disease management platform and online service terminals

Medical Service Hospitals Specialized Medical Health Service Rehabilitation and OTC Institutions Institutions Institutions Elderly Care Facilities Pharmacies users can monitor and manage health data in real time via mobile devices access remote consultations and participate

in interactive follow-up care which improves the efficiency and accuracy of medical services. The Company further

Personal/Family Empowering Medical Care Medical AI Health Big Data Service- promotes the integration of AI technology into remote chronic disease management. Driven by proprietary AI algorithms

Digital Health Auxiliary Services Automation oriented Operations smart health devices conduct personalized health analysis based on continuous high-precision data streams.Records

Government Supervision and Data Authorization The Anytime 5 series adopts advanced AI algorithms and supports multi-terminal interconnection enabling continuous

Health Data

Collection and Personal/family health records cover physiological and medical indicators

data output every 3 minutes for up to 16 consecutive days. Core technical indicators including a MARD value of 8.58%

Management as well as non-medical personal health metrics and continuous wear time have reached internationally leading standards. In 2025 the CGM product line was further

optimized with real-time blood glucose data sharing intelligent blood glucose fluctuation alerts and personalized

management functions. Cloud data uploading also assists physicians in remotely optimizing treatment plans forming a

complete "hardware + software + service" closed-loop healthcare ecosystem.Home Testing

and Therapeutic

Devices Smart Healthcare Ecosystem

Guided by the corporate strategy of reshaping medical devices through innovation Yuwell Medical steadily advances the

development of a smart healthcare ecosystem by integrating home healthcare clinical medical services and internet medical

resources. The Company empowers partners across multiple application scenarios and delivers end-to-end health management

Digital Health Services services spanning preventive care through rehabilitation. This continuously improves the accessibility of primary healthcare and the overall effectiveness of home-based health management.Yuwell Medical has launched an Internet of Medical Things

(IoMT) management platform and built the Smart Yuwell Digital health services cover

digital health management ecosystem. By consistently Healthcare Institution Pharmacy Service Holistic Health Institution

upgrading intelligent medical hardware and expanding the Collaboration Collaboration Collaboration

boundary of digital health services the Company accelerates 500000+ Through the standardized aggregation To address the need for integrated By opening its standardized data

the deployment of AI-enabled healthcare products to offer of home medical device data the medication and health management platform the Company supports

users smarter more precise and more efficient health Yuwell health devices Company facilitates the creation services the Company opens its data primary healthcare institutions such

management solutions. of personal health records. In full platform to enable OTC pharmacies as community health centers in

compliance with regulations it to participate in building personal establishing personal and family health

Frontend User User engagement is established through online channels including e-commerce platforms social media enables secure data sharing with large and family health records within records. It also enables compliant

Interaction and mini-programs as well as offline touchpoints such as partner pharmacies and medical institutions. public hospitals community health compliance boundaries. By combining data interconnection with medical

Mid-end Platform Leveraging IoT big data and AI technologies the Company has developed an integrated medical device centers and internet hospitals. By medication records with device health institutions within the tiered diagnosis

Capabilities health management platform that supports compliant health data collection analysis and management. empowering medical institutions data the Company provides users and treatment system. This facilitates

Multi-channel synergy is enabled via the Family Health Cloud Platform the Yuwell Health Manager mobile to conduct remote patient follow- with periodic targeted health support targeted health intervention and

application and the WeChat official account which supports real-time health monitoring and remote up real-time health monitoring and services which expands pharmacies' standardized management for chronic

medical consultation to facilitate personalized health management. In 2025 the Company launched the targeted interventions these efforts service scope in comprehensive health disease populations enhancing the

Yuwell AI Agent powered by large-model technology. Integrated with the Yuwell Health Manager platform it extend chronic care beyond hospital management. participation and service continuity of

delivers personalized health guardianship services. walls and shift disease management primary healthcare providers in public

toward long-term home-based care. health management.Backend Operation Intelligent manufacturing and operational maintenance management ensure consistent product quality

Support and efficient service response underpinning the stable and reliable operation of digital health services.

5556

Upward Industrial Downstream User

Openness EmpowermentJiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

PEOPLE-CENTERED

APPROACH

Average training hours per employee during the year

37.43

Average organizational climate score

4.25

Total charitable donations

approx. RMB 40 million

57 58Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Human Capital Development Talent Attraction and Retention

In line with its corporate strategy and business planning the Company conducts regular organizational and talent assessments. It

proactively formulates human resource plans optimizes its talent workforce layout and consistently diversifies talent recruitment

Governance channels that span both domestic and global markets. Apart from external channels including internship programs campus

recruitment and social recruitment the Company also partners with globally renowned job portals regional platforms and

overseas agencies to enhance recruitment precision and efficiency so as to meet the talent demands driven by corporate strategy

Yuwell Medical consistently optimizes its human resource management system aligning HR strategies closely with the Company's and rapid business expansion. Internally it advances strategic talent reserve and succession planning operates an internal talent

overall development roadmap and operational objectives. Under the Board of Directors the Remuneration and Evaluation marketplace and establishes standardized mechanisms for employee referrals internal transfers and re-employment. Adhering to

Committee chaired by an independent director is responsible for formulating evaluation criteria remuneration policies and the principles of comprehensive evaluation fairness and integrity with professional competence the Company strives to build a

incentive plans for directors and senior management as well as overseeing the implementation of remuneration frameworks and professional globally competitive talent team.incentive schemes. The Company has established a dedicated Human Resources Center to oversee overall HR strategy planning

organizational management talent development performance management and compensation and benefits. Based on annual Responding to its global business layout and talent demands in emerging technology and product sectors the Company

operational plans and business priorities it collaborates with business divisions to deploy standardized HR practices. Subsidiaries dynamically adjusted its talent supply structure in 2025. Committed to building a diversified high-caliber talent pipeline it further

and affiliated enterprises implement HR management in accordance with the Group's unified management requirements while strengthened the recruitment of professional and international talent.adapting to their own business characteristics and operational realities ensuring stable and sustainable development across all

business units.The Company has formulated and iteratively improved a comprehensive set of HR management systems covering organizational The Company has launched graduate and intern recruitment programs to underpin long-term talent pipe-

management talent recruitment and retention vocational training and career progression performance appraisal and compensation line development recruiting over 80 management trainees and more than 500 interns in 2025.and benefits. Aligned with corporate strategy and business needs it conducts systematic HR planning and has built a strategic

talent reserve mechanism. By supporting employee career growth and competency enhancement while standardizing performance Early Talent Engagement: The Company implemented the Campus Early Talent Engagement Program vis-

management and incentives the Company enables every employee to contribute their strengths and create tangible value. iting universities to deliver customized career empowerment courses for graduating students and overseas

Campus Recruitment returnees. A total of 10 sessions were held during the year reaching more than 3000 prospective graduates.& Early Talent The Company also established and improved internship and employment cooperation mechanisms with

Engagement multiple universities receiving visits and exchanges from more than 1000 teachers and students from over

Strategy and Management Mechanisms 10 institutions throughout the year.Joint Talent Development: The Company actively carried out industry-academia-research cooperation

with universities and research institutes jointly establishing student internship and employment bases as

Centered on the corporate strategies of globalization digital well as technology research institutes with institutions including Shanghai Jiao Tong University Beijing

and intelligent transformation and wearable technology Institute of Technology and Southeast University. For example Yuwell-POCT collaborated with the Uni-

Yuwell Medical has rolled out a tailored talent development versity of Shanghai for Science and Technology on projects such as the "AI-Based CGM Blood Glucose Alert

plan and management model that aligns with long-term Yuwell Medical's parent company received the Algorithm" further enhancing both employer branding and research capabilities.business growth. The Company adopts a dual talent strategy following honors:

of internal cultivation and external recruitment offering Global Talent Magnet Employer New

competitive compensation and benefits structured vocational Prominent

training and clear career advancement pathways. By refining Top Human Resource Management Award Leveraging business expansion momentum the Company has further strengthened its premium employer

performance management and incentive mechanisms it has – Top Employer of the Year Professional brand image and recruited R&D technical specialists and overseas sales professionals with solid medical

built a closed-loop talent management system that integrates China Preferred Employer of the Year Talent industry backgrounds. By deepening cooperation with professional external agencies specializing in global

talent attraction development appointment and long-term

retention. In 2025 the Company targeted emerging strategic Global Expansion Navigator

Recruitment talent sourcing it has formed a multi-channel recruitment ecosystem covering online platforms regional

channels campus recruitment and headhunting services—an approach that has significantly improved

fields including international expansion AI-enabled wearable recruitment efficiency for core roles professional specialists and top industry talent. In 2025 multiple

technology and technological innovation to attract recruit vacancies were published on global and local job platforms engaging over 10000 overseas professionals

integrate and deploy high-caliber talent. Priority was given to and enhancing the Company's global employer brand and international talent reserve capacity.the construction of high-end professional technical teams and

overseas sales talent pools providing robust human capital

support for business innovation and global market layout.Internal Talent The Company has formulated the Internal Transfer Management Measures and the Internal Referral

Mobility Channels Management Measures which formalizes mechanisms for employee referrals internal transfers and

re-employment. This enables talented and high-integrity employees to gain career advancement

opportunities supports talent retention and ensures a continuous pipeline of high-performing individuals

ready to take on diverse roles. A total of 12 internal transfer projects were launched during the year.

59 60Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Total number of employees Employee Training

6676 Employee Training System

Centered around its business development and

internationalization strategy Yuwell Medical has

Gender distribution Hierarchical distribution established the Yuwell Learning and Development Center.Based on future business growth demands it identifies

core organizational capabilities and continuously

New hires during the reporting period upgrades the employee training and development

system to strengthen the Company's overall talent

2286 competitiveness. Supported by the Learning and Development Center a tiered and categorized training Female employees 2782 Senior management 142 framework has been established for new employees

Male employees 3894 Middle management 332 professional specialists management staff and high-

Frontline employees 6202 potential talent. Leveraging learning roadmaps

standardized course systems and digital learning

platforms the Company strengthens role-specific

Proportion of female employees among new hires competency building for all employees empowering

during the reporting period professional ski l l growth and long-term career

development. The Company also fosters a dual training

38.5% ecosystem: internally it systematically builds an internal trainer team to institutionalize and replicate accumulated

organizational experience and professional capabilities;

Employment type Educational background externally it connects with industry experts and arranges

benchmark enterprise visits to broaden employees'

industry vision and professional horizons.Newly recruited fresh graduates

226 As the core repository of the Company's institutional Regular employees 6676 Employees with bachelor's degree and above 2880 knowledge and practical experience Yuwell Academy Dispatched employees 0 consistently expands its course offerings and learning

Part-time employees 0 Employees with associate degree 1613 resources to meet growing demand for versatile globally

Employees with degree below competent professionals amid corporate strategic

associate level 2183 upgrading and business expansion. By closely integrating

employee learning with on-the-job practice the Academy

has built a targeted forward-looking training content

matrix tailored to organizational development needs.Total courses available on the Yuwell Academy digital

Age distribution Regional distribution learning platform:

1911

Cumulative learning hours:

Employees aged under 30 1694 Chinese employees (including employees

from Hong Kong Macao and Taiwan)

Employees aged 30-50 4585 6542 153179.9

Employees aged over 50 397 Overseas employees 134

61 62Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Talent Development Programs

With a product-oriented mindset Yuwell Medical designs differentiated talent development programs aligned with future strategic New Employee Training

needs creating systematic training pathways for professional specialists management personnel and new recruits (including

social hires and management trainees). By integrating theoretical learning with practical assignments and using diverse training Yuwell Medical attaches great importance to the onboarding integration and career development of new employees. Through the

formats the programs systematically enhance employees' professional expertise and managerial skills. All talent initiatives are online New Employee Learning Program and offline centralized induction training the Company enables new recruits to quickly

practice-driven combining structured coursework on-the-job tasks and phased assessments to support skill development and grasp corporate fundamentals understand business workflows and product expertise and integrate into the corporate culture. This

role transitions. The Company also conducts multi-dimensional evaluation and feedback for all training programs along with supports rapid adaptation to workplace roles and organizational environments.annual learning outcome assessments making training quality and effectiveness fully measurable and traceable to support

continuous course improvement. Leadership Development and Training

Aligned with corporate strategy and business development priorities the

Training coverage by gender Company has established core leadership competency standards centered

on strategic vision business execution and talent cultivation capabilities

Total investment in employee training: to further optimize the leader selection evaluation and development Leadership Training Series

2.1 Male employees 100% mechanisms. By refining the leadership development system it elevates overall managerial competence and accelerates the growth of young high-RMB million potential talent. Management Trainee

Female employees 100% The Company has put in place a regular talent review and assessment

mechanism to dynamically manage high-potential employees. It has

Employee training coverage rate: formulated the High-Potential Talent Development Management Measures

Training coverage by hierarchical level and consistently refined leadership evaluation criteria and industry- Junior Manager

100% specific practical courses. Partnering with world-renowned institutions such as the Wharton School Korn Ferry and Kenexa it designs customized Senior management 100% management development programs that support leadership cultivation

for managers and high-potential talent systematically enhancing their Middle Manager

strategic vision executive leadership and strategic thinking. To build

Middle management 100% a key talent pipeline the Company establishes formal management Total employee training attendances: succession pipelines and a strategic reserve pool for high-potential talent.

41650 By identifying screening and assessing readiness for key roles and Frontline employees 100% strengthening targeted coaching for newly appointed managers it ensures Senior Managera stable and continuous talent supply for core positions.

Since the launch of the Yuwell Star Management Trainee Program in 2018

Average training hours by gender the Company has promoted more than 20 fresh graduates to management

Total employee training hours: and technical expert positions continuously building a pipeline of

outstanding young talent.

249900 Male employees 37.78 Tailored to employees' different career growth stages the Company implemented four tiered talent development programs in 2025: Setting

Female employees 37.09 Sail Hoisting Sails Cruising and Navigating. These programs cover

new employees and management trainees junior managers high-

potential talents and middle and senior managers strengthening the

Average training hours per employee: Average training hours by hierarchical level corporate leadership pipeline. During the reporting period four dedicated

37.43 junior manager training camps were held to support core professionals transitioning smoothly into management roles.Senior management 18.43

As a flagship initiative for recruiting innovative talent and cultivating

Middle management 32.76 future core leaders the Yuwell Star Program employs a diversified training

approach that includes pre-employment online courses centralized

induction camps a dual-mentor system combining business supervisors

Frontline employees 49.55 with business partner mentors and a workplace evolution camp. By the

end of 2025 the program had successfully nurtured 493 management

trainees.

63 64Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Professional Skills Training Employee Development

For core roles in R&D production and marketing the Company designs role-specific learning roadmaps and professional training

programs. It identifies critical capabilities for improvement over the next 3-5 years focusing on nurturing young professionals. Clear Aligned with its strategic planning and business priorities the Company systematically advances employee development and

qualification criteria and career development blueprints are established for R&D positions driving continuous upgrading of overall talent pipeline building by linking individual competency enhancement with long-term career growth. Regular talent reviews help

competency and professional competencies through integrated theoretical training and on-the-job practice. For production staff accurately map key roles and talent cohorts. By proactively defining competency requirements for different development stages

in key process roles specialized training courses are provided with rigorous assessments required before formal deployment. In the Company enables every employee to leverage their strengths and excel in suitable positions.response to the corporate transformation toward wearable technology and digital intelligence the Company strengthened training

on AI technology and practical application in 2025 along with benchmarking exchanges with industry leaders. Training covered Dual-Track Talent Development System

AI algorithm principles data analysis methodologies and medical device regulatory compliance (including FDA and CE marking Adhering to a talent strategy of prioritizing internal cultivation supplemented by external recruitment Yuwell Medical has

requirements) substantially supporting new product R&D and overseas market expansion. established a clear dual-track career development framework that provides employees with sustainable career pathways and

To strengthen the professional training system and build internal organizational knowledge the Company steadily advances the aligns personal aspirations with organizational needs. On the management track the Company has developed standardized leader

development of its internal trainer team. During the reporting period through internal FDA trainer certification programs and the management systems and tiered leadership programs formalizing procedures for leader selection appointment evaluation

internal trainer cultivation mechanism at the Suzhou site 26 certified internal trainers were certified and 27 proprietary courses and promotion to unlock the growth potential of management personnel at all levels. On the professional track a structured

were developed enabling the transfer of professional expertise and practical experience across the organization. qualification system and tiered pathways are established for different job families supporting sustained professional growth in

specialized fields. In 2025 responding to international business expansion and organizational restructuring the Company refined

competency criteria for core roles including overseas country managers project managers e-commerce operations managers and

provincial/regional sales managers. By compiling historical best practice cases and providing targeted guidance and application

support for relevant business lines it helped employees clearly understand role requirements and career development trajectories.Case

Overseas Regulatory Registration Training Leadership Track Professional Capability TrackNavigating R&D

To align with U.S. FDA requirements Yuwell Medical has systematically rolled out FDA regulatory training and promoted Cruising Management Talent Development System Professional Talent Development System Marketing

its internal application. In 2025 the Company provided internal FDA training to staff in regulatory affairs registration Senior Manager High-Potential Talent Departmental Professional Skills

R&D and platform management covering general requirements registration rules R&D compliance and post-market Hoisting Wharton Study Tour Development Echelon Building TrainingSails Production

surveillance. A total of 12 open refresher sessions were also held reaching over 500 employees. These initiatives have In-service Leader New Manager Role-specific Customized Learning Training and Practice Transition Programs Certification Training Roadmaps

notably improved staff understanding of overseas regulations and strengthened their compliance execution. Setting Functional

Sail Support

New Employee Development System (Social Hires & Management Trainees)

Course Resource Management Internal Trainer Team Management Training Program Management

Online Learning Platform: Yuwell Academy

External Joint Training

Leveraging high-quality external training resources the Company actively collaborates with universities research institutions Defining Competency Identifying and Developing Evaluation and Standards for Key Roles High-Potential Talent Continuous Improvement

and professional consulting firms to expand employee learning and development channels. In 2025 Yuwell Medical partnered

with multiple prestigious universities medical device industry associations and professional consulting organizations on topics Establish a comprehensive Conduct annual talent reviews for management Regularly track the

including operational management digital intelligent transformation regulatory compliance design innovation and cross- Management management competency and specialized talent based on organizational progress of high-potential

cultural leadership which were delivered through specialized courses thematic seminars and benchmarking study tours. Selected Track framework centered on the development needs to accurately identify high- employees through phased

employees participated in external benchmarking visits and industry exchanges to learn advanced management models and Yuwell Leadership Standards. potential employees. Design differentiated assessments and structured

development plans tailored to individual career feedback. Continuously

best practices broadening their industry perspectives and enhancing professional capabilities. These efforts effectively support Roll out a unified professional tracks using targeted training cross-industry refine the development

corporate strategy implementation and organizational capability building.Professional qualification system to help exposure mentorship and job rotations to system to support steady

Track employees clarify their role support development across both management competency growth and

positioning and identify and professional tracks and strengthen smooth role transitions.competency gaps. succession readiness.Education and Qualification Support

The Company advocates a lifelong learning culture and has issued institutional policies including the Research Personnel

Continuing Education Management System and the On-the-Job Postgraduate Training Management System. It encourages and

supports all employees (full-time and part-time) to pursue job-related degree programs and professional certifications helping

them continuously upgrade their competencies. Reasonable tuition subsidies are provided for employees pursuing further

education or approved study programs. As of the end of the reporting period 24 employees were enrolled in higher education

programs expanding their long-term career development and promotion opportunities.

65 66Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Diversity and Equal Opportunity Female employee ratio Talent is the Company's most valuable asset and diversity and inclusion form the fertile ground that nurtures talent growth. Recognizing that genuine global competitiveness stems not merely from market expansion but from respecting and integrating diverse perspectives and thinking within

the organization Yuwell Medical has strived to break geographical and cultural boundaries over the past year. By fostering an open and inclusive

Upholding the philosophy of diversity inclusion dedication and work- workplace where all employees can build consensus amid diverse viewpoints it ignites innovation through cross-cultural dialogue and idea exchange.life balance Yuwell Medical embeds diversity and inclusion principles

into every stage of talent recruitment employment management 41.67%

performance evaluation and employee development. This mitigates

the impact of unconscious bias and unfair practices on employment Compensation and Incentives

decisions ensuring equal opportunities and broad career develop-

ment platforms for all employees. The Company holds annual compa-

ny-wide diversity training and thematic activities. Regular face-to-face Compensation and Incentive Framework

communication sessions between management and staff together Female representation in management roles Based on its Compensation Management System the Company

with team-building initiatives led by HR Business Partners (HRBPs) (including management talent pipeline middle and For short-term incentives the Company continuously refines its has established a performance- and value contribution-oriented

promote cultural integration across diverse backgrounds. Through performance reward policies in alignment with annual operational senior management) remuneration mechanism suited to its business characteristics. All

these efforts the Company is committed to fostering a diverse equita- goals and business priorities. In 2025 special performance incentive employees (including non-managerial and non-sales staff) are covered

ble inclusive and vibrant workplace culture. plans were introduced to support key strategic initiatives including by a standardized pay structure consisting of fixed and variable income new product launches and business expansion. For long-term

components. When designing or adjusting remuneration schemes the incentives the Company launched Employee Stock Ownership

Company comprehensively benchmarks market salary levels industry

35.29% Plans (Phase I and Phase II) in 2021 and 2023 covering directors compensation trends and internal operating conditions to continuously supervisors senior executives middle managers and other core

enhance the external competitiveness of its overall pay package. employees across the Company and its controlled subsidiaries. By

Recruitment and Hiring

The remuneration system comprises base salary variable performance linking core employees' personal financial returns to the Company's

Guided by the Yuwell Medical Recruitment Management System and bonuses and long-term incentives all linked to corporate operational medium- and long-term development objectives these mechanisms

the Yuwell Medical Employee Handbook the Company institutionalizes performance departmental organizational performance and individual strengthen employees' focus on sustainable value creation and foster

equal opportunity principles throughout recruitment frameworks and Female representation in performance outcomes. Variable performance rewards and long-term mutual growth between individuals and the enterprise. The incentive

workflows. All job candidates are evaluated fairly without discrimina- framework incorporates standardized restrictive provisions that tie senior management incentives are allocated differentially based on job category scope of

tion based on gender age education ethnicity religion marital status accountability individual contribution and the performance results incentive eligibility to professional ethics regulatory compliance

or cultural background. Fair employment opportunities are extended of the Company and respective departments. This approach ensures and on-the-job performance. For employees involved in disciplinary

to career re-entry professionals such as returning working women and that remuneration is closely aligned with actual performance driving violations or dereliction of duty the Company may defer recover or

qualified persons with disabilities advancing diversified and inclusive 28.17% sustained performance improvement and strengthening the retention adjust performance bonuses and equity incentives in accordance with employment practices. of core talent. internal management regulations.Recruitment practitioners participate in regular unconscious bias train-

ing to prioritize job competency and performance during candidate as-

sessment. This minimizes the influence of irrelevant personal factors Performance Evaluation and Feedback

on hiring outcomes and enhances the fairness and consistency of the

overall recruitment process. Female representation in STEM (R&D technical) roles The Company has established a tiered categorized performance feedback stage structured performance feedback and one-on-one

appraisal mechanism that links performance management with coaching are delivered to assessees helping them recognize personal

corporate strategic goals operational plans and individual job strengths development gaps and organizational expectations while

responsibilities. Annual formal performance evaluations are conducted clarifying pathways for future improvement.

29.85% for regular employees within the assessment cycle covering multi-dimensional criteria such as work performance professional The Company prioritizes transparent performance communication Work and Welfare Support competency and conduct. Appraisal results serve as a core basis for and structured result feedback encouraging employees to actively

employee career development and remuneration decisions. Annual participate in goal setting and post-evaluation reviews. Comprehensive Respecting diverse employee needs the Company consistently op- feedback is provided to all assessees upon completion of evaluations.timizes workplace conditions to provide a healthy and comfortable corporate strategies and operational targets are cascaded down to

departments teams and individual roles. This goal alignment and High-performing employees receive both monetary and non-monetary working environment. For employees with disabilities it upgrades ac-

responsibility deployment ensure consistency across organizational recognition to foster internal motivation. For employees with cessible facilities and tailors workplace arrangements to role require-

Female representation in management positions departmental and individual performance underpinning the effective below-standard performance or those temporarily unable to meet ments thereby safeguarding equal employment rights.execution of corporate strategy. During the reporting year 98.02% role requirements a Personal Improvement Plan (PIP) is promptly

Female employees enjoy equal opportunities in recruitment employ- of revenue-generating business lines of regular employees completed formal performance and career initiated to establish clear improvement objectives and provide

ment training and promotion with strict adherence to the principle development reviews. targeted support with progress continuously tracked in subsequent

of equal pay for equal work. Statutory entitlements including prenatal assessment cycles. Employees who disagree with appraisal outcomes

examination leave maternity leave and breastfeeding leave are fully For middle and senior management personnel Yuwell Medical employs may file formal appeals through established internal procedures. The

guaranteed. The Company also encourages male employees to take 32.51% a comprehensive 360-degree talent assessment and performance HRBP team coordinates cross-functional communication and delivers paternity and parental leave to support balanced career and family feedback system that gathers input from super visors peers official feedback following management review. A robust supervision

responsibilities. During the reporting period 35 employees (including subordinates and cross-functional collaborative departments. The and restraint mechanism including disciplinary violation reporting

male staff) took parental leave achieving a 100% return-to-work rate appraisal framework follows three standardized stages covering the and investigative interviews safeguards employees' legitimate rights

after leave. For female employees resuming work post-childbirth the full evaluation process which enhances the fairness and credibility of and interests ensuring the objectivity fairness and impartiality of the

Company provides a humane transition adaptation period to support performance reviews. In the preparation stage tailored assessment entire performance management system.a gradual return to full duties and sustain long-term career continuity. questionnaires are designed for different employee groups based

Female employees are offered equal access to education professional Ethnic minority Employees with on evaluation objectives and 360-degree assessment tools are fully

training and promotion pathways to support career growth and skill deployed to all relevant assessors and participants. In the assessment employee ratio disabilities ratio

diversification. The Company actively empowers women to break stage the entire evaluation process is conducted anonymously with

through the glass ceiling take up key leadership and professional roles

and explore broader career development possibilities. 2.92% 0.19% strict confidentiality maintained for all assessment data and final reports fostering an open and impartial evaluation environment. In the

67 68Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Building a Happy Yuwell

Upholding the corporate ethos of work diligently and live happily the Company

provides comprehensive non-monetary welfare benefits and diversified employee Employee Satisfaction Management

wellbeing initiatives. By fostering a healthy comfortable harmonious and warm

workplace environment it steadily enhances employees' sense of fulfillment and To capture employees' genuine perceptions of organizational management and the workplace environment the Company has conducted

organizational belonging. annual organizational climate surveys for five consecutive years. The survey adopts a validated question bank from a leading external

consulting firm tailored to the Company's operational characteristics. It evaluates six core dimensions: basic welfare needs supervisor

Through cultivating multicultural teams and organizing cross-cultural exchange support institutional authority and process efficiency team collaboration cultural identity and learning and development opportunities.activities the Company empowers every employee to act as a cultural bridge In the 2025 organizational climate survey 3788 valid questionnaires were collected representing an effective response rate of 80.5%. The

connecting global markets. The rich diversity of internal perspectives deepens the overall average organizational climate score reached 4.25 out of 5 and overall employee satisfaction stood at 82.9%.organization's understanding of external customer needs. This internal cultural

insight transcends geographical and linguistic boundaries enabling employees to Targeted improvement plans have been formulated and implemented to address employee feedback related to career development

deliver professional services with greater empathy and elevate the overall customer The 5th Chairman's Cup institutional workflows and cross-departmental collaboration. Initiatives include conducting regular talent pipeline reviews further

experience. Basketball Tournament upgrading the training system and refining tiered categorized training programs advancing the standardized development of internal

systems and processes and strengthening cross-departmental communication via company-wide thematic activities. The Company will

continuously track and evaluate the implementation outcomes of all improvement measures.Basic Welfare Benefits

Social insurance package and housing provident fund; comprehensive paid

leave entitlements including sick leave work-related injury leave marriage

and bereavement leave prenatal examination leave maternity leave paternity Impact Risk and Opportunity Management

leave breastfeeding leave parental leave and annual leave.Recognizing human capital as a core strategic resource that underpins business strategy execution and long-term growth Yuwell

Employee Health Support Medical has established a systematic human capital risk management framework. The Company continuously monitors changes in

Little Flying Fish Summer Camp internal and external environments and systematically analyzes potential human capital-related risk factors. Aligned with corporate

Annual comprehensive physical examinations personal accident insurance – Family Day Event strategic objectives it conducts standardized identification assessment response and ongoing monitoring of human capital risks

illness condolence grants and summer high-temperature allowances. to maintain effective risk control. This approach drives ongoing optimization of organizational capabilities and talent structure

Additional employer liability insurance for frontline operational and field staff. providing robust support for sustainable development amid intense market competition.Regular on-site wellness activities including TCM health consultations and

shoulder & neck physiotherapy sessions. Key human capital risks include talent attrition insufficient supply of core professionals ineffectiveness of performance

Partnerships with professional psychological assessment institutions to provide management systems misalignment between training resources and development needs inadequate fairness and market

psychological evaluation and counseling services for employees in need. competitiveness of compensation and incentives employment compliance risks and gaps in organizational synergy and cultural

development. In response to these identified risks the Company optimizes HR management systems and workflows dynamically

adjusts talent development strategies in line with corporate planning and business expansion and builds a full-lifecycle growth

Work-Life Balance & Stress Relief support system for employees. It refines the end-to-end talent management cycle of attract-develop-deploy-retain and mitigates

Regular team-building events sports competitions and recreational activities business disruption caused by key personnel changes through regular talent reviews and succession planning. This approach builds

including outdoor excursions basketball tournaments Yuwell running club Overseas Employee Training in Brazil a resilient adaptive organization capable of navigating market and industry cycles.activities sports challenge check-ins online game events vlog contests blind

box activities and pet-friendly gatherings to help employees relax and relieve

work pressure.A special Yuwell Summer Vacation arrangement to support work-life balance Indicators and Targets

during peak and off-peak business cycles.Annual Family Day events with employees' families and children fostering a

harmonious and supportive workplace culture. Indicator / Target 2025 Achievement Status

Continuous optimization of office layout and facilities to enhance workspace

comfort and flexibility. Maintain 100% employee training coverage Target achieved

Employee Care Initiatives Target achieved

Continuously enhance overall employee satisfaction

A dedicated employee welfare fund to provide timely financial assistance to Employee satisfaction reached 82.9% a year-on-year increase of

employees and their families facing serious illness or hardship which has 1 percentage point over 2024.supported over 600 individuals cumulatively including 62 vulnerable employees

in 2025. Achieve no less than 80% completion rate for key talent Target achieved

Additional family visit leave (beyond statutory and annual leave entitlements) recruitment targets Key talent recruitment completion rate reached 81.8%.for expatriate employees to facilitate family reunions.手游大赛

69 70Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Employee Rights Focus Area Preventive & Mitigation MeasuresLabor contract signing rate for

regular employees: Recruitment teams complete regular unconscious bias training to ensure fair evaluation of candidates regardless of

Protection background during both social and campus recruitment hiring and promotion processes.100% Anti-Discrimination & Anti-Harassment Anti-discrimination and anti-harassment provisions are clearly stipulated in the Employee Handbook aiming to eliminate all forms of unfair discrimination prejudice and workplace harassment. Zero discrimination or harassment incidents were

recorded during the reporting year.Labor Rights and Interests Social insurance coverage rate for The Company establishes and dynamically updates minimum compensation benchmarks to ensure all employees receive

regular employees: Fair Compensation at least a living wage.

100% & Equal Pay A compensation data analysis mechanism is implemented; pay gaps are regularly assessed by role grade and tenure with Yuwell Medical fully complies with the Company Law of the People's periodic pay fairness audits conducted to uphold the principle of equal pay for equal work.Republic of China the Labor Law of the People's Republic of China

and other applicable laws and regulations as well as international Freedom of

human rights frameworks including the International Bill of Human Association The Company respects and supports employees' legal right to join trade unions and participate in collective bargaining. In Note: Rehired personnel are exempted from

Rights the ILO Conventions and the UN Guiding Principles on Business & Collective 2025 trade union and collective bargaining agreement coverage reached 100% of employees.labor contract signing; rehired personnel and

and Human Rights Bargaining. The Company strictly prohibits exploitative local overseas employees are not covered under

employment practices such as child labor and forced labor adheres to domestic social insurance schemes. A comprehensive occupational health and safety management system has been established to strictly monitor and control

all statutory employment regulations and fully safeguards employees' Occupational workplace health hazards across all operating sites.legitimate labor rights and interests. Confidential anonymous Number of major labor and Health & Safety

grievance channels have been established to protect employees' rights human rights incidents:

For detailed information refer to the "Occupational Health and Safety" section of this report.to voice opinions and report violations in accordance with the law with

clear anti-retaliation safeguards in place. No incidents involving child 0 Employee Communication and Grievance Mechanismslabor forced labor or employment discrimination occurred during the

reporting period. To fully respect and safeguard employees' rights to participation free expression and institutional supervision the Company has

established diversified internal communication channels including employee representative meetings face-to-face communication

Human Rights Due Diligence Management sessions with the Chairman 360-degree evaluations for management internal publications and dedicated employee online

forums. These channels encourage employees to submit constructive suggestions on organizational management workplace

To consistently strengthen its human rights due diligence system

the Company has formulated and implemented a complete set of conditions career development and other work-related matters.internal policies and procedures including the Anti-Discrimination Human Rights Risk Identification and Assessment The Company has formulated and strictly implemented the Employee Complaint Management Procedure and the Reporting

Management Procedure the Labor Employment Procedure the Management System which establish standardized workflows for complaint intake investigation review and escalation to ensure

Special Working Environment Assessment for Female Workers the timely and regulated resolution. All employees are encouraged to report unfair treatment to their direct supervisors or the HR

Management of Child and Minor Workers the Yuwell Work-related department. Designated staff are responsible for receiving and following up on employee complaints and reports with timely

Injury Accidents Management Measures and the Employee Handbook. Implementation of Human Rights Risk

These institutional frameworks ensure all employees receive fair feedback provided to the relevant employees. Strict confidentiality is maintained for all complaint and report records and the Mitigation and Remediation Measures

opportunities and respectful treatment throughout recruitment Company takes firm action against any form of retaliatory behavior. The Company regularly analyzes closed complaint and report

employment promotion and daily work effectively preventing and cases and optimizes internal management systems and workflows based on findings to prevent the recurrence of similar issues.mitigating internal human rights risks. As part of its ongoing supply

chain risk reviews the Company requires all suppliers to adhere to Employee Representative Meeting

social responsibility benchmarks reducing human rights exposure Monitoring and Continuous Improvement

across the supply chain. Held on a regular basis to collect employee feedback on welfare policies career development and other

workplace concerns.Labor and Human Rights Risk Prevention Face-to-Face Communication Session with the Chairman

Senior management including the Chairman and General Manager holds direct dialogues with employee

Focus Area Preventive & Mitigation Measures representatives on organizational development business operations and corporate culture to listen to

The Yuwell Medical Recruitment Management System explicitly bans the recruitment and employment of child labor. grassroots voices.Prohibition of Child Rigorous identity verification and pre-employment background screening are conducted for all applicants. For campus

Labor recruits official school employment recommendation documents are verified; for social recruits prior employer social 360-degree Evaluations for Management

insurance records are cross-checked to ensure that no child labor is employed. Collect multi-level employee feedback to drive continuous improvement in managerial performance.Employees enjoy full freedom to sign or terminate labor contracts voluntarily. Internal publication Yuwell New Horizon

The Company formulates targeted recruitment plans based on business development forecasts to ensure adequate Release corporate news and management updates and share employee work experience and best practices.Prohibition of staffing levels. Each business unit reviews operational plans quarterly and adjusts recruitment strategies accordingly.Forced Labor The Group leverages the Beisen recruitment platform for standardized talent management and long-term talent pipeline Employee Online Forum "Fish Pond"development to maintain stable staffing. An open platform for free employee expression and concern submission; the official account provides uni-

All forms of forced labor are strictly prohibited. Standard working hour and leave management policies are enforced and fied and timely responses to widely discussed workplace topics.an attendance monitoring system ensures reasonable working hours and full protection of statutory leave entitlements.

71 72Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Occupational Health and Safety Prevention and Control of Occupational Hazards

By implementing the "three simultaneities" principle—under which

occupational disease prevention facilities are designed built and put

Yuwell Medical strictly abides by the Work Safety Law of the People's Republic of China the Law of the People's into operation concurrently with the main project—the Company embeds

Republic of China on the Prevention and Control of Occupational Diseases the Safety Administration of Hazardous occupational health and safety standards into the entire production process

Chemicals the Provisions on the Supervision and Administration of Occupational Health at Work Sites and the from process design to production layout. Qualified third-party institutions are

Requirements of Work Safety Management System for Large and Medium-sized Enterprises. Benchmarking against commissioned to conduct regular monitoring of workplace occupational hazard

the ISO 45001 management system standard the Company has developed a complete set of internal specifications factors such as noise and dust and to carry out systematic hazard identification

including the EHS Management Manual and the Work-related Injury Accidents Management Measures forming risk grading and targeted control measures. Individual occupational health

a comprehensive occupational health and safety management system. The General Manager assumes overall files are established for all employees and regular occupational health

responsibility for workplace safety management and occupational health and safety targets are incorporated into examinations are arranged. Safety warning signs and dedicated protective

formal management performance assessments. facilities are installed in high-risk work areas and employees are equipped with

job-matched personal protective equipment. Identified workplace hazards

Occupational Health & Safety Target 2025 Achievement Status are rectified promptly with implementation progress tracked and reviewed to

maintain a healthy and safe working environment.Zero work-related fatalities among employees Target achieved The Company consistently updates its overall emergency response plans and

special safety incident contingency protocols and organizes regular training

Zero incidence of occupational diseases among employees Target achieved and emergency drills. During the reporting period two company-wide fire

emergency drills were completed as scheduled. For scenarios including electric

100% coverage of employee health and safety training Target achieved shock mechanical injury and hazardous chemical leakage the Company

adopted a combined approach of tabletop exercises and on-site practical drills.All drills were followed by post-event summaries evaluations and targeted

Workplace hazard rectification rate ≥ 98% Target achieved process improvements.

100% certification rate for special operation personnel Target achieved

Health and Safety Training

100% compliance rate of workplace hazard factor monitoring results Target achieved To build a robust workplace health and safety culture the Company provides

mandatory three-level safety induction training and fire safety training for all

employees. Annual themed campaigns are also hosted such as Work Safety Month

and Fire Safety Month. Through centralized awareness promotion specialized

Work-related injury insurance coverage training and scenario-based emergency drills the Company comprehensively

Yuwell Medical's parent company and four for regular employees enhances employees' hazard identification capabilities and emergency response

subsidiaries have obtained 1

100% skills. All safety training content is incorporated into the annual training plan and ISO 45001 Occupational Health and Safety formal assessment system for standardized implementation.Management System certification

Mastery of CPR and AED operation is designated a mandatory

training course and integrated into the fixed curriculum for

Health and safety training attendances Lost workdays due to work-related injuries new employee onboarding.

7461 1216.5 A total of

5 specialized health and safety training sessions were

Work-related injury rate

held during the year

0.30% recording

450 attendances

1 Note: Rehired personnel and local overseas employees are excluded from coverage.

73 74Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Protecting Life Yuwell Diabetes Community Supporting Rural RevitalizationThe ongoing Yuwell Diabetes Community serves individuals with

Type 1 Type 2 and gestational diabetes. Through professional

and Health health education and interactive community engagement it helps Focused on rural revitalization and primary medical capacity building the Company allocates resources to develop primary medical institutions users establish standardized blood glucose monitoring habits and optimize high-altitude healthcare support system and strengthen emergency response capabilities in remote regions. Through these efforts it

daily management awareness. promotes the grassroots deployment of high-quality medical resources.Guided by its mission to "alleviate patients' suffering and Registered platform users:

enhance doctors' medical capabilities" Yuwell Medical

addresses public health needs through ongoing public welfare 0.62 Building a High-Altitude Healthcare Support Systeminitiatives in emergency medical care chronic disease support and public health protection contributing to the long-term million Addressing oxygen supply shortages in high-altitude regions Yuwell Medical launched the Xizang Oxygen Supply Project in 2016 and completed

development of healthcare. construction of the Yuwell Medical High-Altitude Oxygen Industrial Park in Lhasa in 2018. The Company has developed a diversified product portfolio

Cumulative community page views: covering centralized oxygen diffusion systems modular oxygen supply systems portable oxygen generators vehicle-mounted oxygen systems

personal nasal oxygen delivery and shelter-style oxygen supply solutions. These offerings cater to oxygen demand across residential households

2.21 public venues institutional premises and emergency rescue scenarios. A localized operation and maintenance team and a standardized 1+1 service Total charitable donations: model have been established supported by an intelligent remote monitoring platform. The system ensures one-hour response service within urban million Lhasa and one-day service coverage for remote areas significantly improving equipment maintenance efficiency and emergency response capacity.

40 To strengthen local capacity building the Company carries out industry-academy cooperation with regional universities to train local technical Total community posts: personnel in equipment installation operation and maintenance and technical support. This gradually enhances regional medical service capabilities approx. RMB million

0.25 and drives the evolution of high-altitude health security—from equipment provision to sustainable local capacity development.million

Commitment to

Diabetes Care

Diabetes ranks among the most prevalent chronic diseases

worldwide and Yuwell Medical is deeply engaged in chronic

disease management. Drawing on profound insights into the

needs of people living with diabetes as well as evolving health High-altitude oxygen supply solutions Yuwell oxygen supply shelter

management trends and leveraging its technological expertise

in blood glucose monitoring devices and digital health manage- The 19th Nanyi Summer Camp for Type 1 Diabetes

ment the Company consistently drives product innovation and

technological upgrading. Its CGM Series 4 and Series 5 together

with the 921-fingertip blood glucose monitoring system fully

meet long-term diabetes management needs in terms of moni- Driving Progress in TCM Improving Primary Healthcare Service Infrastructure

toring continuity stability and ease of use. Acupuncture

Beyond delivering precision blood glucose monitoring technolo- In response to insufficient medical equipment allocation and limited specialized infection control training for primary medical institutions

gy the Company strives to build a warm supportive ecosystem chronic disease management capacity in rural and remote areas across 29 provincial-level healthcare-associated infection quality

for diabetic patients safeguarding their health through profes- As an inheritor and promoter of traditional Chinese medicine the Company donates blood pressure monitors oxygen therapy control centers recording 4741 attendances.sional technology and thoughtful services. In 2025 Yuwell Med- (TCM) acupuncture culture Suzhou Hwato Medical Appliance Co. equipment AEDs and basic diagnostic devices to primary medical

ical partnered with hospitals and professional medical institu- Ltd. a subsidiary of Yuwell Medical contributes steadily to TCM and elderly care institutions via charitable organizations and local

tions to advance diabetes prevention and treatment initiatives. education and talent cultivation injecting new vitality into the collaborative partnerships. These donations enhance the capacity

The Company sustained operation of the Yuwell Diabetes Com- prosperity of this ancient practice. Since 1991 the company has for screening and daily management of common and chronic

munity and collaborated with hospital experts to host regular established the Hwato Scholarship at Nanjing University of Chinese diseases. Since 2021 the Company has participated in targeted rural

offline Yuwell Health Camps providing face-to-face professional Medicine supporting thousands of outstanding TCM students. It revitalization initiatives improving local medical service conditions

guidance on blood glucose management complication pre- also co-founded the Hwato Gold Needle Award with provincial through equipment donations grassroots professional training and

vention and lifestyle intervention. On key public health dates and municipal acupuncture associations to recognize medical industrial collaboration.including International Nurses Day (May 12) and World Diabetes professionals who have made outstanding contributions to the

Day (November 14) the Company sponsored dozens of free pub- development of TCM acupuncture. In 2025 the company signed To advance the national primary healthcare infection prevention and

lic welfare clinic events nationwide delivering compassionate a strategic cooperation agreement with the China Association of control system Zhongyou Likang Pharmaceutical High-Tech (Chengdu)

care to diabetic communities. Acupuncture-Moxibustion to sponsor five competition sessions of Co. Ltd. has exclusively supported the National Health Commission's

the Hwato Cup Acupuncture and Moxibustion Contest over the next Inspiring China primary infection control training program since 2017

ten years supporting multi-dimensional talent development in TCM and has established the Inspiring China Hospital Infection Prevention 2025 Inspiring China Basic Training on Hospital Infection Management

acupuncture and tuina disciplines. and Control Research Fund. In 2025 the company delivered Shanxi Province

75 76Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Focusing on Emergency Medical Care The Company also explores innovative integration of emergency equipment with urban public amenities to improve AED availability and accessibility in public spaces. Dedicated emergency call buttons are installed and linked to elevator systems for

direct connection to emergency rescue floors optimizing emergency response pathways in high-rise buildings and residential

Since its founding Yuwell Primedic has upheld the corporate mission of "saving lives anytime anywhere." Focusing on the medi- communities. Leveraging 24-hour self-service convenience stations the Company supplements and expands the urban emergency

cal first aid sector the company advances the widespread deployment of emergency equipment and the popularization of first aid response network. Combined with mobile emergency scenarios such as the Urban Ferrymen initiative it develops a deployable first

practical skills. Domestically over 10000 volunteers receive standardized professional first aid training from Yuwell Primedic each responder mechanism to enhance the temporal and spatial coverage of urban emergency resources.year. Globally its emergency rescue network spans more than 150 countries and regions contributing to the rescue of more than 100

individuals annually. Yuwell Primedic AEDs have long served as designated emergency support equipment for high-intensity sporting Yuwell Primedic has hosted with

events including marathons and cycling races.Advancing Systematic First Aid Solutions 500+ public welfare training 30000+

In the field of public emergency equipment and integrated rescue services the Company is evolving from single-product supply to sessions on AED operation and professional first aid skills attendances nationwide

full-scenario ecosystem development actively exploring emergency response models tailored to the risk levels of different locations.In 2025 leveraging the active SOS alarm function of the Primedic HeartSave H7 AED series the Company built basic emergency re-

sponse units centered on AED deployment. Each unit is configured with one AED device three one-touch emergency call terminals By integrating fixed emergency facilities deployed in transport hubs and public spaces with mobile resources including vehicle-

and six professional first aid volunteers. These units are deployed hierarchically based on site risk classification improving the effi- mounted AEDs the Company is gradually constructing an urban emergency network featuring fixed-site coverage supplemented

ciency and feasibility of on-site emergency response in public venues and large-scale events through device triggering emergency call by mobile emergency capacity. This framework improves response continuity and overall efficiency for sudden health emergencies

linkage and coordinated deployment of on-site rescue personnel. Building on this foundation the Company is gradually establishing across diverse scenarios offering a replicable and scalable model for public emergency system development.a comprehensive emergency ecosystem spanning standalone products to integrated emergency scenario solutions. In pre-hospital

emergency care centered on defibrillation support the Company promotes integrated linkage between hardware devices and digital

systems enabling data synchronization throughout the ambulance Circulation-Airway-Breathing-Defibrillation (C-A-B-D) workflow

and improving overall pre-hospital treatment efficiency. Equipped with a built-in camera SOS alarm and map navigation functions

Railway In October 2025 Yuwell Primedic completed large-scale AED deployment across the national railway system the HeartSave H7 AED supports real-time emergency alerts and remote physician guidance effectively boosting patient survival rates

System installing devices at 97 core railway hub stations in Jiangsu Zhejiang Anhui and Shanghai. AEDs are placed

during critical rescue windows. in high-density and high-risk areas including waiting halls main station exits logistics distribution centers

Building a Multi-layered Urban Emergency Response Network maintenance depots and large workshop facilities which enhances on-site emergency response efficiency for sudden cardiac arrest and other acute incidents.Targeting public transport hubs and urban public spaces characterized by high pedestrian density population mobility and elevated

risk of sudden health incidents the Company consistently advances the deployment of emergency facilities and the development of

on-site emergency response capabilities. By pre-positioning core emergency equipment such as AEDs at key locations and delivering Vehicle- In collaboration with public welfare organizations the Company launched a vehicle-mounted AED pilot program

first aid skills training in transport hubs schools corporate campuses and sporting events the Company fosters a socially capable mounted

System across 8 cities nationwide deploying equipment in 240 vehicles. Volunteer drivers with certified first aid volunteer base with basic first aid competencies. This enhances the accessibility and timeliness of emergency intervention within the qualifications are equipped with vehicle-mounted AEDs to increase the density of mobile emergency responders

"golden four minutes". In 2025 the Company delivered professional first aid training across multiple transport hubs and donated AEDs within urban traffic and mobile population groups.and health monitoring equipment to key public venues. These public welfare emergency support initiatives helped rescue nearly 100

individuals.Supporting Safe Operation of Sports and Large-scale Events

Launched the Red Cross first aid station donated by

Upholding the corporate ethos of "elevating health Yuwell Primedic at the Khunjerab National Border

celebrating sport" Yuwell Medical extends professional Scenic Area which improves emergency rescue

capacity for high-altitude border tourism areas.medical device expertise into public health management

leveraging technological innovation to support scientific

sports participation and healthy lifestyles for all. To deepen Hosted public welfare health activities and delivered

the integration of healthcare services and sports industry professional AED and CPR first aid skills training at

development the Company provides sustained emergency Nanjing South Railway Station.medical support for sporting competitions and large public

events contributing to the development of a strong national

sports sector. During the reporting period the Company Donated 1 million emergency care packages for urban

provided on-site medical support for 53 sporting events. AEDs couriers participating in Taobao Flash Sale campaigns

and oxygen therapy equipment were deployed along race providing reliable health protection for frontline

delivery workers.routes and key venues with dedicated post-event recovery Partnered with the Shanghai Marathon to jointly build a Delivered professional medical support for the Namtso

zones established to cover high-intensity sporting scenarios public health ecosystem under the theme "elevating health Lake Mountain Bike Challenge to elevate emergency safety

including marathons cycling races and ball games. celebrating sport." assurance capabilities in extreme environments.

77 78Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

ENVIRONMENTAL

FRIENDLINESS

Total investment in environmental protection GHG emission intensity (Scopes 1 and 2 market-based)

RMB 4.47million 0.0260 tCO2e/RMB 10000 revenue

Compliance rate for three wastes emissions

100%

79 80Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Strengthening Environmental Management Environmental Management ObjectivesThe Company regularly conducts operational environmental impact assessments formulates annual environmental management targets

and tracks implementation progress dynamically. Timely rectification is carried out for identified deviations to achieve closed-loop

environmental performance management. Environmental management objectives are incorporated into formal management performance

Yuwell Medical adheres to the green development philosophy and evaluations with a one-vote veto mechanism applied for major adverse environmental incidents. Corporate environmental targets are

strictly complies with national environmental legislation including cascaded and decomposed to relevant departments tied to the performance assessment of department heads and key role holders.the Environmental Protection Law of the People's Republic of Total investment in environmental protection:

China the Law of the People's Republic of China on Water Pollution Indicator / Target 2025 Achievement Status

Prevention and Control the Law of the People's Republic of China on

the Prevention and Control of Atmospheric Pollution and the Law RMB 4.47 million Maintain 100% hazardous waste standardized management rate;

of the People's Republic of China on the Prevention and Control of achieve 90% recyclable waste comprehensive utilization rate

Environmental Pollution by Solid Waste. Benchmarking against the

ISO 14001 Environmental Management System standard the Company Plant boundary noise complies with Class 3 standards in GB 12348-2008 Emission Standard for

consistently optimizes its overall EHS management framework. Environmental protection training coverage rate: Industrial Enterprises Noise at Boundary (Day ≤ 65 dB Night ≤ 55 dB); zero related public complaints

Target achieved

The Company has established a robust EHS management structure 100% Plant boundary fugitive emissions fully meet regulatory standards; zero external complaintssupported by internal documents including the EHS Management Manual. By strictly implementing EHS responsibilities at all levels On-site rainwater and sewage diversion fully implemented; all wastewater discharge complies with

strengthening operational monitoring and ensuring ongoing standards

improvement it minimizes corporate environmental footprint while Factory greening rate ≥ 15%

enhancing comprehensive competitiveness. No environmental pollution

incidents administrative penalties for environmental violations or

major environmental accidents occurred during the reporting period. Environmental Risk Management and Control

The Company has formulated standardized procedures including the Environmental Aspect Identification and Evaluation Control Procedure

and the Emergency Preparedness and Response Procedure. It conducts annual identification and review of environmental hazards covering

wastewater discharge exhaust gas emissions hazardous waste disposal soil and groundwater pollution risks and noise impact. Risk

EHS Management Structure assessments are dynamically adjusted in response to process upgrades and site operational changes. For identified environmental risk

The Company has established a standardized three-tier EHS management framework. The General Manager serves as the primary person points targeted corrective measures are formulated with clear departmental accountability. Environmental emergency plans are revised

responsible for environmental protection overseeing overall EHS strategic planning and top-level management. The Management regularly to ensure risk response protocols align with on-site operational realities. The Company also conducts routine environmental

Representative appointed to support the General Manager is responsible for formulating EHS work plans ensuring the establishment monitoring covering wastewater organized and fugitive exhaust gas soil groundwater and noise pollution. Pollutant discharge data is

implementation and maintenance of the environmental management system and submitting regular progress reports to the General effectively monitored and environmental monitoring results are publicly disclosed in a timely manner to accept regulatory oversight and

Manager. All functional departments execute EHS management system regulations and operational requirements to ensure the achievement public supervision.of established environmental policies and performance objectives. The EHS management system covers 100% of the Company's core A dedicated emergency command center and on-site emergency response teams have been established alongside a formal Emergency

business segments. During the reporting period the Company signed hierarchical safety and environmental responsibility agreements Plan for Sudden Environmental Incidents. Specialized emergency drills are organized based on operational needs to enhance organizational

across all levels. EHS performance fulfillment is fully integrated into management performance appraisals with annual reward and penalty response capabilities. The Company held two environmental emergency drills in 2025.mechanisms linked to accountability outcomes.Environmental Training

The General Manager takes overall responsibility for the Company's EHS management including

General

formulating EHS policies and objectives allocating resources for effective EHS system operation Environmental management training is fully integrated into the annual corporate training plan. Tiered categorized training sessions are

Manager

and managing overall environmental risks. delivered covering regulatory compliance pollution prevention and environmental risk management with post-training assessments

implemented to strengthen employees' environmental awareness and professional capabilities. The Company organized four specialized

environmental training sessions in 2025.The Management Representative assists the General Manager in establishing implementing Environmental Auditing and Certification

and maintaining the EHS management system to ensure the achievement of EHS policies The Company has formulated the Internal Audit Control Procedure

Management

and objectives. The Representative also organizes risk and opportunity assessments leads and the Management Review Procedure . Internal audits and

Representative Yuwell Medical's parent company and four

investigations and resolutions of major environmental and safety incidents and oversees the management reviews of the environmental management system

implementation of response measures. are conducted annually covering production operations pollution

subsidiaries have obtained ISO 14001

prevention facility management regulatory compliance execution Environmental Management System

and performance target achievement . Continuous system certification.improvement is driven through the Plan-Do-Check-Act (PDCA) cycle.Third-party professional institutions conduct quarterly independent

Functional Functional departments implement all EHS system regulations and requirements performing Yuwell Medical's parent company has been audits of the environmental management system to comprehensively

Departments related duties to facilitate the achievement of EHS policies and objectives. certified as a National Green Factory and monitor its operational status and environmental performance. Jiangsu Provincial Green Factory.Annual surveillance audits and triennial recertification audits are

completed by authorized certification bodies.

81 82Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Addressing Impact Potential Financial Category Risk/Opportunity Type Risk/Opportunity Description Response MeasuresTimeline Implication

Climate Change Extreme weather events including Strengthen climate risk identification and floods typhoons and heatwaves may hierarchical management; optimize emergency

Acute cause direct damage to corporate

Revenue response plans and enhance resilience against

assets and facilities disrupting Operating cost extreme weather; refine supply chain layout to

normal business continuity. Fixed asset safeguard business continuity.Governance Physical Risks Advance energy efficiency improvement

Rising ambient temperatures and and smart manufacturing; gradually deploy

Yuwell Medical has established a dedicated climate governance growing water resource scarcity risks production line robots automated guided

framework. By integrating climate-related impacts risks and Chronic may undermine supply chain stability Operating cost vehicles (AGVs) and other intelligent

opportunities into both the corporate ESG management system and and drive up operational expenses. equipment to boost productivity and reduce long-term operational costs.the enterprise-wide risk management architecture the Company

consistently enhances its capabilities in climate risk identification Tightening regional environmental Proactively monitor updates to environmental

assessment management and transparent disclosure. policies and requirements may and carbon regulations across operating

Policy & Legal raise compliance costs and impose Operating cost regions; strengthen regulatory compliance

The Board of Directors oversees all material climate-related matters additional operational constraints. management and enhance adaptive capacity

and conducts regular reviews of climate risk and opportunity to policy evolution.assessment results evaluating their potential implications for

corporate strategy daily operations and financial performance. It Rising customer demand for low- Continuously monitor the impact of climate

reviews climate-related targets and phased implementation progress carbon products and green supply change and natural disasters on public health;

and supervises the execution of climate action plans. During major chains creates opportunities to track cutting-edge epidemiological and

investment deliberations and corporate strategic planning the Transition bolster product competitiveness via disease spectrum research to guide product

Board fully incorporates climate considerations to ensure climate Risks green innovation while increasing and technological innovation.transition-related costs.resilience aligns with the Company's long-term development Formulate a clear decarbonization roadmap;

trajectory. The EHS Working Group is tasked with organizing climate Market & Technology Long-term climate change may Revenue actively adopt new low-carbon materials Operating cost

risk and opportunity identification scenario analysis and materiality trigger extreme weather events that equipment processes and technologies;

assessment. It formulates climate change response strategies exert direct or indirect impacts on conduct full ROI and feasibility assessment

quantitative targets and actionable implementation roadmaps public health. Climate-induced shifts for low-carbon transition projects and deploy in public health patterns may require optimal solutions tailored to operational

and coordinates relevant business units to deliver specific climate adjustments to product R&D pipelines realities.initiatives. The Working Group regularly compiles climate-related and market positioning posing

data tracks progress against established targets and evaluates the tangible operational challenges.effectiveness of climate management measures.Emerging business potential exists in Increase R&D investment and optimize

climate-related disease management R&D layout to strengthen product portfolio

alongside growing market demand competitiveness while addressing evolving

Strategy and Management for home medical devices. Rising public health needs.health risks associated with climate

Mechanisms change are expected to drive Products & Services increasing demand for household Revenue

medical equipment.Yuwell Medical systematically identifies and analyzes climate-driven Climate

risks and opportunities embedding climate considerations into Low-carbon technologies and eco-Opportunities friendly products enhance market

core strategic decision-making. While accelerating the corporate competitiveness and create new

green transition the Company integrates climate risk management revenue growth drivers.requirements into production operations and end-to-end supply

chain management to strengthen overall resilient capacity against Adoption of energy-saving Further advance smart manufacturing; widely

climate change. technologies and equipment reduces deploy energy-saving technologies and

Resource Efficiency production energy consumption Operating cost equipment to build a green high-efficiency

delivering both cost savings and energy utilization system and lower long-term

environmental benefits. operational costs.Short Term Medium Term Long Term

83 84Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Green Products Green Product Design

The Company advances green product design through modular lightweight and low-energy approaches.Within its full product lifecycle management framework Yuwell The Company reduces product lifecycle environmental

Medical embeds core sustainability requirements covering impact through the adoption of recyclable alternative

resource efficiency energy conservation and emission reduction materials rechargeable components and bio-based Oxygen generators: Adopt DC variable-frequency control technology to dynamically match compressor output with

hazardous substance control material recyclability and plastic or natural raw materials. real-time oxygen demand which reduces overall energy consumption. Modular easy-to-maintain design simplifies

waste reduction. The Company advocates modular lightweight disassembly and repair extending product service life and minimizing waste generation. Compact and lightweight

low-energy and eco-conscious design principles to minimize design improves portability and transportation efficiency.products' environmental footprint across the production in-use Yuwell-POCT's Anytime 4 and 5 series CGM devices

and end-of-life disposal stages. adopt recyclable main structural materials including Electric wheelchairs: Achieve an approximately 5 kg average weight reduction and a 10% smaller folded size in new

ABS PC POM PETG and SUS304 stainless steel lightweight models. Control unit standby current is lowered from 3mA to 0.8mA extending standby duration and

accounting for over 90% of total device material reducing idle energy consumption.Eco-Friendly and Health-Conscious Materials usage. The main structure is produced via injection

molding without additional chemical additives. Temperature measurement products: Adopt modular and lightweight design. Shared pre-heating platform and In compliance with international and domestic standards universal temperature measurement modules enhance component standardization and resource utilization efficiency.including the Technical Documentation for the Assessment of

Electrical and Electronic Products with Respect to the Restriction

Zhongyou Likang adopts bio-based raw materials Electronic blood pressure monitors: Feature modular architecture intelligent standby mode and rechargeable lithium

of Hazardous Substances (IEC 63000) the Registration

derived from corn fermentation to replace batteries.Evaluation Authorization and Restriction of Chemicals (REACH)

traditional chemical ethanol in mainstream

the Directive on the Restriction of the Use of Certain Hazardous Surgical instruments: Adopt a refined lightweight design for micro-instruments. Replaceable modular components

disinfection products which lowers the carbon

Substances in Electrical and Electronic Equipment (RoHS) the prevent full-unit scrapping due to single-part failure extending overall product service life.footprint. It also applies multi-enzyme high-

Waste Electrical and Electronic Equipment Directive (WEEE)

concentration cleaning formulas and foam-free

the EU Battery Regulation (EU 2023/1542) and the Biological

cleaning technology to reduce equipment wear and

Evaluation of Medical Devices (GB/T 16886) the Company

packaging material consumption.implements end-to-end hazardous substance control throughout Green Packaging

product development. Environmental and health compliance

requirements are defined at the R&D stage and integrated into Suzhou Hwato integrates natural raw materials such While ensuring product safety and transportation integrity the Company optimizes packaging structures and material selection. It

design input and validation management; all product design as natural jade into selected products to replace prioritizes recyclable alternatives such as paper-based degradable packaging and tinplate and promotes internal material recycling

testing is completed by accredited third-party laboratories. Strict synthetic chemical materials in an effort to reduce and resource reuse to advance packaging waste reduction across the full product lifecycle.hazardous substance management is enforced for raw materials the environmental load of material lifecycles.auxiliary supplies and key components with suppliers required

to provide formal compliance declarations and qualified test Yuwell-POCT implemented packaging structure and material optimization to cut plastic usage which reduced total

reports. Only RoHS-compliant materials are adopted effectively packaging material consumption by approximately 57 tonnes in 2025 including over 50 tonnes of PP plastic. Transport

restricting hazardous substances such as mercury lead carton surface paper was switched from virgin pulp to FSC-certified recycled paper containing 15% recycled fiber content.cadmium and hexavalent chromium. The Company conducts

internal self-assessments against the Green Supply Chain 66 Vision adopts recyclable corrugated cartons for selected products and utilizes reusable integrated wooden box

Management Evaluation Requirements to minimize chemical- packaging for new surgical microscopes.related health and environmental risks in daily operations.Suzhou Hwato replaces PVC packaging with FSC-certified paper and recyclable PET materials for certain product lines.Yuwell Medical partnered with SF Express to launch a reusable logistics container program which reduced single-use

Yuwell Medical has developed mercury-free desktop blood packaging waste for consumer shipments and improved overall packaging resource efficiency.pressure monitors to replace traditional mercury-containing

devices. The innovative design retains the classic auscultation

mode familiar to medical professionals while incorporating

an automatic oscillometric mode precisely meeting both

professional clinical measurement standards and user-friendly

daily usage needs. Total packaging material consumption

8182.05 tonnes

Note: Data covers Yuwell Medical's parent company Suzhou Medical Appliance Factory Suzhou Yuwell Medical Technology Co. Ltd. Nanjing

Yuwell Software Technology Co. Ltd. Shanghai Medical Equipment Works Co. Ltd. Jiangsu Yuwell-POCT Biological Technology Co. Ltd.Shanghai Zhongyou Pharmaceutical High-Tech Co. Ltd. and 66 Vision Tech Co. Ltd.

85 86Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Low-Carbon Operations Energy Structure Optimization

Through distributed PV deployment and green power procurement the

Benchmarking against ISO 50001 Energy Management System Company steadily increases the proportion of clean energy utilization.Total PV power generation during the year

standards Yuwell Medical has formulated the Energy Management By the end of 2025 three distributed PV projects had been completed

at the Heyang and Yunyang production sites with a total installed

System Manual and supporting procedural documents. The 17.32million kWh

Company has built a full-process management mechanism covering Yuwell Medical's parent company and two

capacity of 14.06 MWp. Adopting N-type TOPCon modules and high-

efficiency inverter technology the PV system meets on-site production

energy planning real-time monitoring data analysis performance subsidiaries have obtained electricity demand while effectively reducing reliance on fossil energy.improvement and annual assessment. It advances low-carbon ISO 50001 Energy Management Purchased green power volume

operational transformation across three core dimensions: managerial System certification

energy conservation technological energy efficiency upgrades and Strengthening Energy Conservation Management

clean energy structure optimization. The Company updates energy Taking comprehensive energy consumption per unit output value as 7.17million kWh

management targets annually and incorporates key metrics such a core control indicator the Company conducts monthly statistical

as comprehensive energy consumption per unit output value into analysis and real-time tracking of target achievement status.Supported by the energy management big data platform it monitors Total clean energy utilizationannual business plans and formal performance appraisal frameworks.real-time energy consumption unit energy consumption metrics and

operational trends. Abnormal energy usage and untapped energy-

saving potential are identified promptly enabling the formulation 24.49 million kWh

Energy Management Strategy of optimized operational strategies. These include adjusting

To advance the development of an energy management big data platform Yuwell Medical has established an integrated monitoring equipment operating parameters improving overall equipment efficiency and strengthening peak-load shifting management while Clean energy proportion in total power consumption

and management system that covers data collection operational process oversight and holistic energy management. The platform ensuring production efficiency and equipment operational safety.enables real-time collection and centralized monitoring of multiple energy media (e.g. water electricity and gas) and key energy- The Company also conducts regular systematic energy reviews to

consuming equipment. Through closed-loop management spanning energy planning statistical accounting trend analysis and analyze energy consumption levels and saving potential of major 45.83%

performance assessment the platform ensures the safe reliable economical and efficient operation of the overall energy system. energy-using equipment and production systems aiming at further

The energy big data platform supports hierarchical statistical analysis trend forecasting and automatic anomaly alerts with the refining energy utilization strategies. During procurement energy

margin of error for energy data collection controlled within 1%. Leveraging data-driven insights the Company promptly identifies performance is integrated into equipment selection criteria and

high-energy-consumption processes and formulates targeted optimization measures. This drives the transition from experience- supplier evaluation frameworks prioritizing high-efficiency energy-

based energy management to data-led precision governance continuously elevating energy conservation emission reduction and saving equipment and green energy solutions. Jiangsu Yuwell-

overall energy management performance. Through ongoing retrofits of high-energy-consumption facilities POCT Biological 66 Vision Tech

Shanghai Medical

and system upgrades Yuwell Medical phases out inefficient legacy Technology Co. Co. Ltd.Equipment Works

Ltd. Co. Ltd.equipment. Operational efficiency is maintained at 100% for air

compressors the power factor of power distribution systems reaches

Monitoring Integration Energy Indicators 96% or above and energy-saving lighting penetration stands at Dehumidifier Unit Water-Circulation Power Load Project

100%. Screw chillers and ground source heat pumps operate stably Steam Heating Air Conditioning Management and Name Energy-Saving System Peak-Load Shifting

within their optimal efficiency ranges. In 2025 the Company deployed Retrofit Replacement

Statistical an intelligent VRV air conditioning system. Through tiered account

Accounting management remote intelligent control and automatic shutdown

functions the system achieved an overall air conditioning energy saving

Replaced Deployed water- Optimized air

rate of approximately 30% while boosting operation and maintenance traditional electric circulation air conditioning

Energy efficiency by 80% and reducing equipment fault response time to

Core Opti- heating with steam conditioning usage regulations; Planning within 24 hours. To further advance smart manufacturing deployment heating; switched to replace guided high-mization

the Company adopts higher-efficiency production technologies and the regeneration conventional power equipment Measures

processes to lower energy consumption per unit output value. process from compressor- operation to off-electric drive to based air peak night hours.steam drive. conditioning.Guided by statistical accounting and supported by monitoring integration the system oversees energy plan Comprehensive energy consumption per unit output

execution supplemented by dynamic control adjustment. It prioritizes core energy indicators to strengthen value dropped to Reduced hourly Reduced air Capped maxi-

thematic analysis and underpin energy forecasting strategic decision-making and performance evaluation. 5.4 Energy electricity conditioning mum power load Saving consumption system energy at 0.136 million; kgce per RMB 10000 of revenue in 2025 Outcome by 126 kWh consumption by annual electricity

Energy Energy Decision- Pre-Planning In-Process In-Process Post- Post- under full-load over 30%. consumption

Forecasting Making Accounting Control Analysis Assessment operation. decreased by 3%

5.26% year-on-year.a

decrease compared with the 2023 baseline

8788

Performance

Evaluation

Thematic

Analysis

Control

Adjustment

Energy Decision-

Making

Energy

ForecastingJiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Impact Risk and Opportunity Indicators and Targets

Management

Indicator / Target 2025 Achievement Status

Yuwell Medical has established a standardized mechanism for Comprehensive energy consumption per unit output value

identifying and managing climate-related impacts risks and Actual: 540 kgce per RMB million of revenue≤ 560 kgce per RMB million of revenue

opportunities. Fully integrated into the Company's risk management

system and strategic decision-making workflows this framework Air compressor efficiency ≥ 85%; operating pressure ≥ 0.75 All targets achieved; exhaust temperature

enhances organizational resilience and strengthens long-term value MPa; exhaust temperature < 100℃ maintained at 80℃

creation capabilities amid climate change.Power distribution power factor ≥ 96%; Power distribution power factor: 97%;

line loss rate < 5% line loss rate ≤ 3%

Ground source heat pump COP efficiency ≥ 5.4;

All targets achieved

screw chiller COP efficiency ≥ 5

Climate Risk and Opportunity Identification Note: Data covers only Yuwell Medical's parent company.In alignment with leading disclosure frameworks including IFRS S2

Climate-related Disclosures and the Self-Regulatory Guidelines No. 17

for Companies Listed on Shenzhen Stock Exchange – Sustainability GHG Emission Reduction Targets

Report (Trial) the Company identifies climate-related risks and

opportunities tailored to industry attributes business footprint and

climate scenarios of operating regions. Impacts are analyzed across Reduce GHG emission intensity by Achieve a renewable energy consumption

three time horizons: short-term (1-3 years) medium-term (3-5 years) share of no less than

and long-term (5 years and above). 10% by 2030

using 2024 as the baseline year 50% by 2030

Climate Risk and Opportunity Materiality Assessment

Through internal and external environmental research and Indicator Unit 2025

professional risk assessment tools the Company evaluates risk Gasoline tonnes 66.10

probability operational impact and potential financial implications

(e.g. revenue volatility operational costs and asset/capital Diesel tonnes 39.15

expenditure). Assessment outcomes are used to prioritize material

climate risks and key strategic opportunities. Energy Natural gas million m3 1.24

Consumption Purchased electricity million kWh 28.95

Total energy consumption tce 6240.31

Climate Risk and Opportunity Management Energy consumption intensity tce/RMB 10000 revenue 0.0078

Material climate risks and opportunities are embedded into the Direct GHG emissions (Scope 1) tCO2e 3002.13

corporate risk management system with dedicated climate action

plans formulated to proactively address climate challenges. Indirect GHG emissions tCO e 17645.41

(Scope 2 market-based) 2

Develop targeted climate response action plans. Indirect GHG emissions

tCO2e 19163.09

Integrate climate-related indicators into annual target management. GHG Emissions (Scope 2 location-based)

Regularly track implementation progress and evaluate management Total GHG emissions tCO2e 20647.55

effectiveness. (Scopes 1 and 2 market-based)

Dynamically adjust management measures in response to evolving GHG emission intensity tCO2e/RMB 10000 revenue 0.0260

internal and external conditions. (Scopes 1 and 2 market-based)

89 90Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Reducing Environmental Footprint

Water Resource Management Emissions and Waste Management

All production and office water supply at Yuwell Medical is sourced from Adopting clean low-carbon production and operational During the reporting period all pollutant discharges fully

municipal water utilities and is primarily allocated to manufacturing practices Yuwell Medical str ict ly complies with the met national and local emission standards. No major

processes and daily administrative use. All major production facilities Water Resource Management Target Environmental Protection Law of the People's Republic of China environmental incidents unauthorized air or water pollutant

are located in regions with low water stress levels. The Company and the Regulation on the Administration of Pollutant Discharge discharge exceedances or environmental administrative

has formulated the Water Conservation Management System and Reduce water consumption intensity by Permits. Guided by the EHS Management Manual the Company penalties and related legal liabilities occurred.established an annual water quota target management mechanism implements rigorous management over exhaust gas emissions

implementing rigid water allocation limits and regular statistical wastewater discharge and solid waste disposal ensuring all

analysis. Root-cause investigations and corrective actions are 8% discharge and disposal activities fully comply with permit by 2030

conducted for abnormal water consumption fluctuations. During requirements and emission standards. The Company regularly Compliance rate for three wastes emissions

the reporting period the Company completed a self-evaluation in using 2024 as the baseline year commissions qualified third-party institutions to conduct

accordance with the Evaluating Guide for Water Saving Enterprises and independent environmental monitoring fulfills mandatory

fully met all relevant management and technical benchmarks. environmental information disclosure obligations and 100%

maintains a 100% compliant disposal rate for all waste streams.Water Formulate annual water resource utilization plans

Conservation and enforce quota-based management; conduct

regular water usage assessments and supervision Total water withdrawal

with reward and penalty mechanisms linked to Water and Effluents Management

conservation performance.Allocate special annual funds for water-saving 0.74 million tonnes Wastewater sources at the Company include domestic sewage A Three-Tier Approach to Wastewater Risk Prevention and

project upgrades technological improvements R&D laboratory wastewater and manufacturing process Control: Source Control Pipe Network Regulation and

and procurement of high-efficiency water-saving wastewater. In strict accordance with the Law of the People's Boundary Monitoring

equipment such as cooling towers to boost Total water discharge Republic of China on Water Pollution Prevention and Control

overall water utilization efficiency. Source Control: Strengthen classified wastewater collection 0.34 the Integrated Wastewater Discharge Standard the Reuse of and pre-treatment to reduce pollutant load on downstream Deliver dedicated water-saving awareness training Urban Recycling Water - Water Quality Standard for Industrial treatment systems.for employees; encourage staff to propose technical million tonnes Uses and local discharge regulations the Company has

improvement suggestions and strengthen R&D formulated the Wastewater Management System. Leveraging Pipe Network Regulation: Optimize rainwater outlet

innovation in water conservation technologies. mature reliable sewage treatment technology integrated interception design and install dedicated valve control Total water consumption with automatic control systems the Company precisely devices.Reduce unit product water consumption by 0.40 optimizes operational parameters and conducts routine online Water Recy- Boundar y Monitoring: Enhance real-time discharge cling & Reuse optimizing production workflows and equipment monitoring of chemical oxygen demand (COD) suspended million tonnes monitoring and anomaly early warning to prevent pollutant

operating parameters; promote the recycling of solids (SS) and ammonia nitrogen (NH3-N) ensuring full leakage and environmental spillover.cooling water and process wastewater to enhance compliance in the treatment discharge and recycling of all

water utilization efficiency. production and operational wastewater.Recycled water volume

Collect on-site rainwater via dedicated retention A strict rainwater and sewage diversion system is fully implemented

ponds and reused for landscape irrigation. A total 0.036 across all sites. Rainwater flows through independent pipelines Chemical Oxygen Ammonia nitrogen of 1825 tonnes of water was conserved through million tonnes into the municipal rainwater network. Production wastewater is Demand (COD) discharge (NH -N) discharge

rainwater harvesting in 2025. treated separately through on-site facilities. High-concentration

3

organic wastewater undergoes pre-treatment before being

Recycled water ratio combined with cleaning wastewater and scrubber wastewater in a Water Risk Construct a ring-shaped water supply network 1.50 tonnes 0.12 tonnes

Mitigation dedicated mixing system. Following comprehensive treatment up to enhance water supply resilience. Conduct to standard approximately 60% is discharged into the municipal

regional water resource carr ying capacity sewage network while the remaining 40% is sent to the reclaimed

assessments during site selection for new and 8.12% water treatment system for further purification and subsequent

expansion projects to ensure sufficient water reuse as production line rinse water.supply for production operations.

91 92Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Emissions Management

Primary exhaust gas emissions include volatile organic compounds (VOCs)

nitrogen oxides (NOx) sulfur oxides (SOx) and particulate matter (PM) Non-Hazardous Waste

generated during production activities. The Company complies with the Zhongyou Likang upgraded workshop

Law of the People's Republic of China on the Prevention and Control of exhaust gas enclosure facilities by replacing Non-hazardous waste generation Non-hazardous solid waste comprises scrap metal metal dust general

Atmospheric Pollution and local air pollutant emission standards for all photocatalytic oxidation units with activated raw material packaging drums and office waste. Industrial solid waste is

operating locations. In accordance with the Exhaust Gas Management carbon adsorption systems achieving an 358.37 collected for centralized recycling while domestic waste is handed over to System it strictly controls pollutant categories emission concentrations organized exhaust gas treatment rate of municipal sanitation authorities for standardized disposal. The Company tonnes

and total emission volumes. Regular monitoring is conducted for key over 90%. cuts general waste output by optimizing production workflows and

parameters such as gas composition concentration and flow rate implementing digital operational management. Additional waste reduction

to ensure full compliance. Dedicated exhaust gas treatment systems 66 Vision optimized product marking initiatives include advancing paperless offices and electronic archiving

have been deployed across all sites. Enclosed collection is adopted processes by replacing traditional screen deploying electronic ink screen systems and adopting reusable logistics

during production processes with supporting end-of-pipe treatment printing and pad printing with laser Non-hazardous waste recycling volume pallets. Yuwell Medical's parent company achieved a 100% comprehensive

facilities including adsorption and spray systems installed for centralized printing which reduced ink consumption utilization rate for general solid waste.purification of organized emissions. Operation logs are maintained and associated VOC emissions.for all treatment facilities with routine maintenance and consumable 302.23 tonnes

replacement carried out to ensure stable and effective operation. Waste Management Target

Reduce waste generation per unit product by

Nitrogen Oxides (NOx) Sulfur Oxides (SOx) Volatile Organic Compounds Particulate Matter (PM) Hazardous waste generation

emissions emissions (VOCs) emissions emissions

0.85 tonnes 0.08 18.9% in 2025tonnes 0.94 tonnes 0.19 tonnes 77.72 tonnes using 2024 as the baseline year

Waste Management

In full compliance with the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid

Waste and supporting regulatory standards the Company has formulated internal management documents including the General Biodiversity Protection

Solid Waste Management System and the Hazardous Solid Waste Management System to govern full-process waste management—

from generation and classification to storage transfer and final disposal. No waste disposal violations were recorded during the

reporting period. The Company strictly abides by national and local biodiversity

conservation laws and regulations actively fulfills its obligations under

Guided by the principles of waste reduction resource recycling and harmless disposal the Company prioritizes source reduction the UN Convention on Biological Diversity and integrates biodiversity

and efficient resource utilization. It advances green product design through modular lightweight and low-energy approaches and protection considerations into the full project lifecycle—spanning

strengthens production-marketing coordination to improve material efficiency steadily curbing overall waste generation. planning design construction and operational phases. Prior to project

development the Company conducts thorough environmental risk

Hazardous Waste identification and ecological hazard assessments strictly adhering to

ecological red line boundaries. During operational phases continuous

Major hazardous waste streams include waste filter bags sewage sludge spent activated carbon from exhaust gas treatment waste environmental monitoring is implemented to promptly identify and

filter cotton chemical raw material packaging drums waste oil waste emulsion and oil sludge. The Company has established a mitigate potential risks with targeted ecological restoration and

dedicated classified hazardous waste management system with enclosed temporary storage areas equipped with impermeable conservation initiatives carried out as needed. During the reporting

leak-proof and rainproof protection measures. In compliance with GB 18597-2023 Standard for Pollution Control on Hazardous period none of Yuwell Medical's production facilities or operational

Waste Storage the Company implements classified labeling standardized storage and complete ledger record-keeping. Specialized sites were located within ecological protection zones or areas of high

personnel are assigned to manage hazardous waste with strict adherence to the official manifest system for all waste transfers. biodiversity value. The Company's production activities products

Disposal is exclusively entrusted to qualified third-party entities. In 2025 the Company collaborated with certified comprehensive and services exerted no significant adverse impact on biodiversity. No

utilization and disposal firms to enhance resource recovery of waste cutting fluid waste emulsion and waste oil reducing annual administrative penalties or major environmental incidents arising from

hazardous waste output by 5.31 tonnes. ecological damage or biodiversity disruption occurred.

93 94Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Key Performance Table

Corporate Governance

Business Ethics and Anti-corruption

Water Utilization

Indicator Unit 2023 2024 2025

Indicator Unit 2023 2024 2025

Coverage rate of anti-corruption training % 100% 100% 100%

Total water withdrawal million tonnes 0.56 0.69 0.74

Average anti-corruption training duration

hours 2 6.7 3

per employee Water recycling rate % / 5.40% 8.12%

Environmental Performance

Environmental Management

Emissions and Waste

Indicator Unit 2023 2024 2025

Indicator Unit 2023 2024 2025

Total investment in environmental protection1 RMB million 7.02 4.82 4.47

Waste emission compliance rate % 100% 100% 100%

Environmental protection training coverage rate % 100% 100% 100%

Hazardous waste generation tonnes 48.38 66.45 77.72

Environmental incidents throughout the year cases 0 0 0

Non-hazardous waste generation tonnes 245.58 250.75 358.37

Note 1: In 2023 the Company made significant investments in environmental protection facilities. During 2024-2025 the focus shifted to maintenance

resulting in lower expenditure. Nitrogen Oxides (NOx) emissions tonnes / 0.18 0.85

Sulfur Oxides (SOx) emissions tonnes / 0.02 0.08

Energy Use and Greenhouse Gas Emissions2 Volatile Organic Compounds (VOCs)emission tonnes / 1.12 0.94

Indicator Unit 2023 2024 2025 Particulate Matter (PM)emissions tonnes / 0.08 0.19

Gasoline tonnes 76.40 52.86 66.10

Diesel tonnes 33.27 37.93 39.15

Natural gas million m3 0.86 1.01 1.24

Social Performance

Purchased electricity million kWh 34.92 39.84 28.95 R&D Innovation

Total energy consumption tce 5600.27 6368.69 6240.31

Indicator Unit 2023 2024 2025

Energy consumption intensity tce/RMB 10000 revenue 0.0070 0.0084 0.0078

Annual R&D investment RMB million 504.37 546.68 570.15

Direct greenhouse gas emissions (Scope 1) tCO2e 2201.36 2456.42 3002.13

R&D investment as a percentage of revenue % 6.33% 7.23% 7.17%

Indirect GHG emissions (Scope 2 market-based) tCO2e / 18238.06 17645.41

Indirect GHG emissions (Scope 2 location-based) tCO2e 19916.69 21380.41 19163.09

Total GHG emissions (Scopes 1 and 2

tCO2e / 20694.48 20647.55market-based)

Customer Rights

GHG emission intensity (Scopes 1 and 2

tCO2e/RMB 10000 revenue / 0.0274 0.0260market-based) Indicator Unit 2023 2024 2025

Note 2: The data is based on guidelines including the Greenhouse Gas Protocol published by the World Resources Institute (WRI) and the World Business Council Customer complaint handling rate % 100% 100% 100%

for Sustainable Development (WBCSD) ISO 14064-1:2018-Specification with guidance at the organization level for quantification and reporting of greenhouse gas

emissions and removals and GB/T 2589-2020 – General Rules for Calculation of the Comprehensive Energy Consumption issued by the State Administration for B2B customer satisfaction rate % 96.2% 97.2% 97.7%

Market Regulation and the Standardization Administration of China. For Scope 2 greenhouse gas emissions the emission factor for purchased electricity is based

on the Announcement on the Release of the 2023 Carbon Dioxide Emission Factors for Electricity Generation (Announcement No. 47 [2025]) jointly issued by the B2C customer satisfaction rate % 97.25% 97.7% 98.4%

Ministry of Ecology and Environment and the National Bureau of Statistics.

95 96Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Social Performance

Employment Equality and Diversity

Indicator Unit 2023 2024 2025 Indicator Unit 2023 2024 2025

Total number of employees persons 6114 6346 6676 Incidents of employee discrimination/harassment cases 0 0 0

Number of new hires during the reporting

persons 1247 2368 2286 Proportion of female directors % 44.4% 44.4% 55.56%

period

Number of newly recruited fresh graduates persons 68 146 226

Number of employees by gender

Male employees persons 3482 3734 3894 Employee Training and Development

Female employees persons 2632 2612 2782 Indicator Unit 2023 2024 2025

3

Number of employees by age Total investment in employee training RMB million 10.08 3.20 2.10

Employees aged under 30 persons 1586 1810 1694 Total training attendances attendances 34356 35762 41650

Employees aged 30-50 persons 3902 4135 4585 Total training hours hours 171780 223874 249900

Employees aged over 50 persons 626 401 397 Average training hours per employee during the year hours 28.09 35.28 37.43

Note 3: Total employee training expenditure in 2023 includes expenses for overseas study programs.Number of employees by hierarchical level

Senior management persons 135 135 142

Middle management persons 306 313 332

Occupational Health and Safety

Frontline employees persons 5673 5898 6202

Indicator Unit 2023 2024 2025

Number of employees by educational level Work-related fatalities among employees persons 0 0 0

Employees with bachelor's degree or above persons 2081 2501 2880 Employee occupational disease incidence rate % 0% 0% 0%

Employees with associate degree persons 1559 1612 1613 Health and safety training coverage rate % 100% 100% 100%

Employees with degrees below associate level persons 2474 2233 2183

Number of employees by region

Employees from China (including Hong

persons 6020 6234 6542

Kong Macao and Taiwan) Product Quality and Safety

Number of overseas employees persons 94 112 134 Indicator Unit 2023 2024 2025

Proportion of products recalled for safety and

Employee satisfaction rate % 83.6% 81.9% 82.9% % 0% 0% 0%

health reasons

97 98Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2025 Sustainability Report

Index Table GRI Content Index

The Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Statement of Use This report has been prepared with reference to the GRI Standards by Yuwell Medical. The

Stock Exchange — Sustainability Report (Trial) reporting period covers January 1 2024 to December 31 2024.GRI Used GRI 1: Foundation 2021

Disclosure Requirements Corresponding Section in This Report

Addressing Climate Change Addressing Climate Change

Reporting Framework GRI 1: Foundation 2021

Pollutant Emissions Strengthening Environmental Management Reducing Environmental Footprint

Waste Disposal Strengthening Environmental Management Reducing Environmental Footprint Message from the Chairman 2-22/2-23

Ecosystem and Biodiversity Protection Reducing Environmental Footprint About Yuwell Medical 2-1/2-2/2-4/2-6/2-16/201-1

Environmental Compliance Management Strengthening Environmental Management Reducing Environmental Footprint Sustainability Management 2-12/2-13/2-14/2-16/2-19/2-22/2-29/3-1/3-2/3-3

Energy Utilization Addressing Climate Change Steady and Long-Term Progress

Water Resources Utilization Reducing Environmental Footprint Enhancing Corporate Governance 2-9/2-10/2-12/2-15/2-27/405-1

Circular Economy Reducing Environmental Footprint

Commitment to Business Ethics 2-27/3-2/205-1/205-2/205-3/206-1

Rural Revitalization Protecting Life and Health—Supporting Rural Revitalization

Information Security and Privacy Protection 418-1

Social Contribution Protecting Life and Health

Sustainable Supply Chain 2-6/3-2/204/308-1/308-2/414-1/414-2

Innovation-Driven Development Enabling Health with Innovation

Technology Ethics Enabling Health with Innovation—Technology Ethics Rooted in Health Driven by Technology

Supply Chain Security Sustainable Supply Chain Enabling Health with Innovation 2-6/2-27/416-1

Equal Treatment of Small and Medium-sized

Sustainable Supply Chain Commitment to Quality 2-6/2-25/2-27/3-2/416-1/416-2/417-1/417-2/417-3/418-1/419-1

Enterprises

Access to Quality Healthcare 2-23/2-27/203-1/203-2

Product and Service Safety and Quality Commitment to Quality

Data Security and Customer Privacy Protection Information Security and Privacy Protection People-Centered Approach

Employees Human Capital Development Employee Rights Protection Human Capital Development 401-2/404-1/404-2/404-3

Due Diligence Sustainable Development Management Employee Rights Protection 2-7/401-1/403-1/403-2/403-3/403-4/403-5/403-6/403-7/403-8/403-9/403-10/405-1/406-1

Stakeholder Communication Sustainable Development Management Protecting Life and Health 3-2/203-1/203-2/413-1

Anti-commercial Bribery and Anti-corruption Commitment to Business Ethics Environmental Friendliness

Anti-unfair Competition Commitment to Business Ethics—Anti-Unfair Competition Management

Strengthening Environmental Management 3-2/2-27/307-1

Voluntary Disclosure Issues Corresponding Section in This Report

Addressing Climate Change 201-2/302-1/302-3/302-4/302-5/305-1/305-2/305-4/305-5

Corporate governance Enhancing Corporate Governance

Reducing Environmental Footprint 2-27/303-1/303-3/303-5/304-3/305-7/306-1/306-2/306-3/306-4/306-5/307-1

Risk management Enhancing Corporate Governance—Risk Management and Internal Control

Digital operations Enabling Health with Innovation—Digital Intelligence Integration Key Performance Table 201-1/203-2/302-1/302-3/303-5/305-1/305-2/305-3/305-4/306-3/401-1/403-9/404-1/404-3

Health accessibility Access to Quality Healthcare Index Table -

Industrial cooperation and development Enabling Health with Innovation Access to Quality Healthcare—Product Accessibility About This Report 2-2/2-3

99 100Jiangsu Yuyue Medical Equipment & Supply Co. Ltd.

About This Report

This report is the third sustainability report of Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. (hereinafter referred to as

"Yuwell Medical" the "Company" or "we"). Prepared in accordance with the principles of objectivity standardization transparency

and comprehensiveness this report presents the Company's philosophy management practices and performance in sustainable

development and responds to key issues of concern to stakeholders.Reporting Scope

This report focuses on the information and key performance quantitative performance targets. The measurement standards

of Yuwell Medical and its subsidiaries in fulfilling their methodologies assumptions calculation tools and sources of

economic social and environmental responsibilities in 2025. conversion factors used for key performance indicators in this

report are explained in the relevant sections where applicable.Definition of Terms Principle of Balance: This report reflects objective facts and

provides balanced and unbiased disclosure of both positive

For ease of reference and reading"Jiangsu Yuyue Medical and negative information relating to the Company presenting

Equipment & Supply Co. Ltd." is also referred to in this report Yuwell Medical's ESG efforts in a balanced manner. During

as "Yuwell Medical" the "Company" or "we". the reporting period no material negative incidents were

identified that should have been disclosed but were not.Timeframe Principle of Consistency: This report maintains consistency

This report covers the period from January 1 2025 to December in the statistical and disclosure methods used for the same

31 2025 with certain content moderately extended to previous indicators across different reporting periods. Where changes

and subsequent years. This report is an annual report. have been made to the statistical or disclosure methods

sufficient explanations are provided in the notes to this report to

Basis of Preparation facilitate meaningful analysis and evaluation by relevant parties.This report has been prepared with reference to the GRI

Sustainability Reporting Standards issued by the Global Source of Information

Sustainability Standards Board (GSSB) the Self-Regulatory

Guidelines No. 17 for Companies Listed on Shenzhen Stock All information and data used in this report are derived from the

Exchange – Sustainability Report (Trial) the Self-Regulatory Company's official documents statistical reports and financial

Guidelines No. 3 for Companies Listed on Shenzhen Stock reports as well as sustainability practice information collected

Exchange — Preparation of Sustainable Development Reports and reviewed by the department responsible for sustainability

ISO 26000:2010 Guidance on Social Responsibility issued by management. Unless otherwise specified all monetary amounts

the International Organization for Standardization (ISO) and referred to in this report are denominated in RMB.the United Nations Sustainable Development Goals (SDGs).Assurance of Accuracy

Reporting Principles The Company assures that this report contains no false records

misleading statements or material omissions and assumes

This report follows the principles of materiality quantification responsibility for the authenticity and accuracy of its contents.balance and consistency.Principle of Materiality: Yuwell Medical conducts materiality Report Access Jiangsu Yuyue Medical Equipment & Supply Co. Ltd.assessments to identify and evaluate ESG topics that are This report is available in both print and PDF formats. The Yuwell Medical stock code: 002223

significant to the Company's operations and to internal electronic version of the report is available on the Yuwell

and external stakeholders and provides focused disclosure Medical website (www.yuwell.com) and the CNINFO website

on these topics in the report. For further details on the Address: No.1 Baisheng Road Development Zone Danyang City Jiangsu Province China (www.cninfo.com.cn). To further improve the preparation of

materiality assessment process and results please refer to this report we welcome your comments and suggestions. If Tel: 86-0511-8690 0876

the "Materiality Assessment" section of this report. you have any questions or recommendations regarding this E-mail: yuwellzqb@yuyue.com.cn

Principle of Quantification: This report discloses quantitative ESG report please contact us by email at yuwellzqb@yuyue.com.performance indicators and where applicable sets corresponding cn or by telephone at +86-511-86900876.

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