Jiangsu Yuyue Medical Equipment & Supply Co. Ltd.1CONTENTS

01 Message from the Chairman 11 Steady and Long-Term Progress: 59 People-Centered Approach: 97 Key Performance Table

03 About Yuwell Medical Advancing Towards High-Quality Safeguarding Lives and 101 About This Report

Development Empowering People

05 Sustainable Development 102 Index Table

Management 13 Enhancing Corporate Governance 61 Human Capital Development

19 Adherence to Business Ethics 74 Protection of Employee Rights

23 Information Security and Privacy Protection 77 Safeguarding Life and Health

27 Sustainable Supply Chain

33 Innovation-Driven 81 Environmental

Development: Empowering Friendliness: Creating a

Life Through Technology Shared Green Future

35 Empowering Health Through Innovation 83 Strengthening Environmental Management

41 Commitment to Uphold Quality 85 Addressing Climate Change

53 Access to Quality Healthcare 91 Reducing Environmental Impact

2 3Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Message from the Chairman

A strong sense of responsibility and commitment has been the driving force such as the continuous glucose monitoring systems Anytime 4 and institutions. Through initiatives such as free health screenings

behind Yuwell Medical's journey. Guided by a deep passion for healthcare we Anytime 5 the third-generation sleep apnea therapy device high- diabetes-focused summer camps and the creation of the Yuwell

have forged ahead with perseverance leveraging technological innovation to flow oxygen generators portable oxygen generators and semi- Diabetes Community it has extended meaningful support and

inject fresh momentum and improving quality and efficiency to unlock new automated external defibrillators. Our ability to compete with world- care to people living with diabetes. Our employees have also made

avenues for growth. We strive to be a pioneer in innovation-led transformation class products has continued to improve. We also made solid strides multiple trips to high-altitude outposts over 5000 meters above

and a steadfast protector of public health. In 2024 the demand for health in smart healthcare by integrating artificial intelligence and digital sea level to deliver high-quality and reliable high-altitude oxygen

management continues to rise and industry transformation is moving at innovation into our operations. These technologies have enabled concentrators to local residents aid workers and individuals from

an accelerated pace. Amid the ever-evolving global landscape we remain us to build an intelligent manufacturing and operations system various sectors making every effort to safeguard life and health.committed to our vision of "leading industry development through innovation featuring deep multi-platform and multi-system interaction. At the

and enhancing the health of millions of families". Guided by a focus on same time we established an efficient end-to-end lifecycle quality Green operations and environmental responsibility are the

health and powered by science and technology we proactively aligned management system and a comprehensive omnichannel customer foundation of our commitment to sustainable development.ourselves with national strategies embraced change and new opportunities service framework supporting product innovation the upgrading Yuwell Medical integrates green ecological values and sustainability

and explored new pathways to sustainable development with a long-term of health services and the enhancement of global competitiveness. principles across its production and operations. We have extended

perspective. Step by step we have continued to enhance our capabilities Our products and services are benefiting users worldwide. In 2024 our EHS (Environment Health and Safety) management system

in governance innovation competitiveness risk management and global our first-pass yield reached 99.72% with customer satisfaction rates to cover all business segments and closely monitor the risks and

development. In the dynamic flow of the new era we are determined to forge of 97.2% for B2B clients and 97.7% for B2C users. The Company opportunities presented by climate change. While enhancing

ahead making meaningful contributions to the global healthcare sector with continues to lead the industry in both customer satisfaction and our core competitiveness we are striving to build a clean low-

the power of Yuwell. product experience. carbon and climate-resilient manufacturing system. In 2024 the

Company advanced comprehensive energy management in line

We are strengthening corporate governance to ensure steady progress as With a people-centered approach and a shared commitment with ISO 50001 standards by establishing an integrated energy

we embark on a new journey of high-quality development. In 2024 Yuwell to health we strive to safeguard lives and empower the value control system encompassing data collection process monitoring

Medical remained committed to its roots in the real economy focused on its of life. Guided by a consumer-oriented digitalized and youth- and management functions. This enabled full-cycle closed-loop

core business and pursued professional excellence. We concentrated our focused talent development strategy we have established the management from planning to statistics analysis and evaluation. We

efforts on key areas such as respiratory therapy blood glucose management Yuwell Learning and Development Center and developed a sound continued to upgrade equipment and technology steadily increased

POCT and home health monitoring solutions while consolidating our and adaptive talent management model aligned with our strategic the proportion of green electricity and improved efficiency in

presence in clinical and rehabilitation equipment and actively developing goals. We have developed a well-structured training system tailored production and sales coordination. As a result we achieved effective

high-potential businesses including emergency care and ophthalmology. Our to different levels and roles refined a transparent and merit-based control over comprehensive energy consumption per unit of output

diversified product portfolio was further optimized and our dual advantages promotion pathway and nurtured a workplace that is diverse greenhouse gas emission intensity water consumption intensity and

in brand influence and market competitiveness continued to grow. With inclusive equitable and warm. These efforts continue to enhance hazardous waste discharge intensity. All annual energy management

operations now spanning over 100 countries and regions our global business our talent competitiveness and bring our people together in the targets were achieved with a 100% completion rate marking the

system has become increasingly mature. To ensure long-term stability in shared mission of safeguarding health and life. In 2024 the Company initial results of our efforts to build a clean and low-carbon production

future development we continue to reinforce both internal and external was honored with several accolades including the Outstanding system. Meanwhile we have incorporated green innovation into

risk management systems strengthen the compliance and business ethics Human Resource Management Award - Employer of Excellence the product development advancing modular lightweight low-carbon

framework and implement rigorous standards for information and data Employer of Choice of the Year Award and the Excellence in Talent and health-conscious designs and delivering high-quality solutions

security. Through the development of a highly resilient supply chain and a Acquisition and Development Award. While focusing on our core with a reduced environmental footprint.firm commitment to integrity and innovation we are laying a solid foundation healthcare business Yuwell Medical continues to explore public

for the Company's high-quality and long-term growth. welfare models that align with the needs of the times and society. Though the journey may be long determination leads to arrival;

In 2024 we contributed RMB 1.47 million in charitable donations to though the task may be tough action leads to achievement. Yuwell

Innovation drives progress empowers health and brings vitality to life support emergency medical care diabetes patient assistance and Medical presses ahead with efforts to advance high-quality and

through technology. Guided by the strategy of "reshaping medical devices rural healthcare development making a tangible contribution to the sustainable development through ESG management. We actively

through innovation" we have consistently increased R&D investment in high-quality development of global healthcare. Yuwell Primedic has embrace cutting-edge technological innovation and adapt to

our core businesses and strategic focus areas and have actively explored long been dedicated to the emergency care sector. In partnership evolving industry dynamics. By combining long-term vision with

diverse innovation pathways. We have steadily enhanced our innovation with professional race support organizations its Flying Fish Rescue agile execution we are building sustainable momentum amid

capabilities through both independent and collaborative research using Team has participated in medical support for over 1000 international ongoing market transformation embarking on a new journey to

innovation as a driving force to cultivate new growth drivers and competitive marathon events. Yuwell Primedic's emergency rescue ecosystem reshape the medical device industry through innovation.advantages so as to deliver higher-quality healthcare solutions to society. now spans more than 100 countries and has delivered over 860

In 2024 leveraging our global R&D network and multiple national and public training sessions on AED use and professional first aid saving

provincial-level innovation platforms Yuwell Medical achieved a number hundreds of lives each year. The Company has been deeply engaged Wu Qun

of internationally advanced breakthroughs with independent intellectual in chronic disease management by partnering with social media Chairman and General Manager of Jiangsu Yuyue

property rights. Significant technological progress was made in products platforms hospitals charitable groups and other professional Medical Equipment & Supply Co. Ltd.

01 02Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

About Yuwell Medical

Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. (hereinafter Over the years Yuwell Medical has consistently maintained high

referred to as "Yuwell Medical" stock code: 002223) is a leading levels of investment in the R&D of new products and projects

medical device company in China specializing in the research sustaining its leading position in technological innovation. The

and development production sales and service of medical Company has established multiple research and manufacturing

equipment. As a comprehensive provider of medical devices centers in Germany Shanghai Nanjing Suzhou Danyang Xizang

and solutions Yuwell Medical is committed to delivering high- Shenzhen and other locations. It is also home to several national- ESG Benchmark Pioneer in Corporate Social China's Top 100 Listed Companies in

quality innovative medical products and services to patients and level innovation platforms including a National Enterprise Enterprise Award Responsibility Award ESG Best Practices

healthcare institutions worldwide. Technology Center a National Industrial Design Center and Awarded by Securities Star Presented at the 2024 Cailian Awarded by Wind

a National Postdoctoral Research Workstation. These efforts Press Zhiyuan Award Ceremony

Driven by its mission to "alleviate patients' suffering and enhance have enabled the Company to build a comprehensive global

doctors' medical capabilities" Yuwell Medical remains focused on network encompassing R&D manufacturing marketing and

the life and health sector with a consumer-centric approach. The services earning its products broad market recognition. In close

Company concentrates on key product areas such as respiratory collaboration with medical institutions across China and around

therapy blood glucose management and POCT and home the world the Company is committed to driving progress in the

health monitoring solutions. It maintains a solid foundation healthcare sector. Through a diversified business strategy and

in clinical medical devices and rehabilitation solutions while steady global expansion it continues to strengthen its capacity 2024 ESG Annual Case 2024 Outstanding Case of National Brand Social

actively nurturing high-potential areas such as emergency care to serve the global healthcare sector. For detailed information on Awarded by the Economic Sustainable Development Practices Responsibility Case

and ophthalmology. With a firm focus on the vast international the Company's operational and financial performance please and Social Affairs Department among Chinese Listed Companies Awarded at the 2024 Boao

market the Company follows the strategic path of "reshaping refer to the Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. of People's Daily Awarded by the China Association Entrepreneurs Forum – New

medical devices through innovation" powered by strong R&D 2024 Annual Report. for Public Companies Consumption Development

capabilities and technological advancement. It continues to lead Conference

industry transformation and contributes steadily to improving the

quality of life for people around the world.Net Profit Attributable to

Total Assets Operating Revenue Shareholders of Listed Companies

billion RMB billion RMB billion RMB

Operating in

7.9722.3967.566

100+15.09515.96715.6466.7266.8947.1021.80611.9981.7591.595

countries and regions around the world 10.065 1.482

202020212022202320242020202120222023202420202021202220232024

03 04Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Sustainable Development Management Stakeholder Engagement

Yuwell Medical attaches great importance to stakeholder expectations and concerns maintaining effective communication through

Sustainable Development Governance Framework a proactive and open approach. The Company consistently improves its diverse and routine mechanisms for both internal and

external dialogue to actively respond to stakeholder needs.At Yuwell Medical high-quality and sustainable development has always been a top priority. The Company continues to strengthen

its environmental social and corporate governance (ESG) systems and enhance the Board's oversight and involvement in ESG-

related affairs. ESG is positioned as a key driver for improving compliance management promoting high-quality development and Stakeholders Expectations and Demands Communication Methods and Channels

reinforcing the Company's competitiveness. As the decision-making and oversight body for ESG matters the Board of Directors Compliance operations Specialized meetings or reports

participates in evaluating the potential impacts risks and opportunities of sustainability issues on the Company's business model.It oversees the effective implementation of ESG vision goals strategies and action plans and ensures the integration of ESG Product quality and safety Feedback on policy consultation

principles and requirements into departments and key business processes. For details on the Board's expertise and capabilities in Environmental management Official visits

overseeing the management of ESG-related impacts risks and opportunities please refer to the section "Strengthening Corporate Government & Regulatory Authorities Support for local development Compliance regulatory inspections

Governance / Board Diversity and Effectiveness" in this report. During the reporting period the Board of Directors reviewed and (including rural revitalization)

approved the Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report and the Jiangsu Yuyue Medical Information disclosure

Equipment Co. Ltd. ESG Management Policy. High-quality development General meeting of shareholders

The Company actively adopts quantitative indicators to assess the effectiveness of its ESG management strategies and is Consistent and stable returns Financial reports and

progressively incorporating relevant ESG metrics into its performance evaluation and compensation system. In 2024 the Company Investor relations announcements

organized dedicated ESG training sessions covering topics such as ESG trends and requirements key considerations for promoting Investor hotline

ESG initiatives and ESG information disclosure. These efforts aim to enhance employees' awareness and understanding of ESG Shareholders & Investors Roadshow

thereby ensuring more effective implementation of ESG practices across the organization. Performance briefings and other

engagement activities

Product quality and safety Customer satisfaction survey

Innovative and low-carbon products Customer relationship management

Customer service management Customer communication activities

The Supervisory Body Customers Business continuity Social media platform

Defines the Company's ESG direction and Reliable privacy protection

Board of strategic goals makes decisions on material Adherence to business ethics Supply chain audits and training

Directors ESG matters and fully oversees ESG issues

and ensures their effectiveness Responsible supply chain Open cooperation

Partners Industrial cooperation and Communication and interactionexchange Industry conferences

ESG Management The Management Body

Leadership Group Employee rights and benefits Employee activities and Identifies assesses and manages communication

Lead: General Manager ESG-related risks and opportunities Occupational health and safety

Deputy Lead: Board Secretary Employee training and Employee training

Members include other senior Determines the materiality of ESG issues and development Performance evaluation and

executives and heads of integrates them into business considerations Diversity and equal opportunity feedback mechanismEmployees

relevant departments Guides day-to-day ESG activities Internal information

communication platform

ESG Working Group Employee grievance channelsThe Executing Body

Formulates ESG-specific plans Product quality and safety Media interaction

Environmental management Information disclosure

Relevant functional Implements ESG initiatives

and operational Subsidiaries Public welfare and charity Public welfare programs

departments Regularly monitors and reports ESG Public & Community Community communication and Volunteer activities

performance indicators development

05 06Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Material Issues

Materiality analysis helps the Company identify and assess potential risks providing support for decision-making and

management. In 2024 Yuwell Medical updated its materiality analysis methods in alignment with the latest disclosure standards Governance CategoryHigh 13 12

including the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and the Self-Regulatory 14 8 11 Environmental Category

Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange— Sustainability Report (Trial). The Company conducted 5

materiality assessments from two dimensions: impact materiality—the degree to which an issue affects economic environmental 18 16 Social Category

and social sustainability; and financial materiality—the extent of its impact on the Company's financial performance. By 15

comprehensively evaluating stakeholder concerns and their financial implications the Company identified high-impact ESG issues

for prioritized disclosure in this report. It also continues to enhance ESG management to better address stakeholder expectations 19 2

and drive ongoing improvement. 4 6

3

9

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

and international sustainability reporting standards and frameworks mainstream ESG 7 17

rating systems industry focus areas and issues of shared concern among internal and

Identification external stakeholders. This process was informed by an analysis of internal and external 1

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

material issues.

10

Low Financial Materiality High

The Company conducted a materiality analysis based on the principle of double

Materiality materiality engaging key internal and external stakeholders to assess both impact Material in terms of both Not material in terms

Analysis materiality and financial materiality. The results formed the basis for the 2024 materiality Material in terms of Material in terms of financial and impact of financial or impact

matrix which identified and prioritized material issues for the year. financial significance only impact significance onlysignificance significance

No. Topic No. Topic

1 Corporate governance 11 Innovation-driven development and technology

2 Business ethics and anti-corruption ethics (including smart healthcare innovation)

3 Risk management 12 Product quality and safety

13 Customer relationship management

4 Digital operations

14 Health accessibility

5 Information security and privacy protection

15 Protection of employee rights (including occupational

Issue The Board of Directors incorporating input from internal management and external 6 Addressing climate change health and safety)

Validation experts reviewed the assessment results and validated the highly material ESG issues.

7 Water resources management

and For these issues the report provides focused disclosures on governance strategy risk 16 Human capital development

Disclosure and opportunity management and related metrics and targets. 8 Emissions and waste management 17 Sustainable supply chain

9 Resource utilization and circular economy 18 Industrial cooperation and development

10 Biodiversity conservation 19 Rural revitalization and social contributions

0708

Impact MaterialityJiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Analysis of Impacts Risks and Opportunities Related to Material Issues

Scope of Impact Impact Timeframe Scope of Impact Impact Timeframe

Material Impact

Risk and Opportunity Analysis Material Impact

Issue Short Medium Long Level Short Medium Long Risk and Opportunity AnalysisUpstream Operations Downstream Issue

Term Term Term Upstream Operations Downstream

Level

Term Term Term

There are risks associated with product Insufficient employee training and

design and development manufacturing

Negative development ineffective performance and processes as well as regulatory

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

these risks may lead to regulatory penalties Highly

culture risks may lead to strategic and

Product

significant; organizational transformation risks as

impact:

Quality and market access restrictions and a decline in Moderately

Positive Human well as increased talent attrition.Safety market trust. significant;

impact: Resource A well-established system for employee

By adhering to high standards of safety Positive Highly Development learning development and talent

and quality the Company can strengthen impact:significant cultivation can strongly support the

customer trust expand market share and Highly achievement of the Company's strategic

gain a competitive advantage. significantobjectives enhance brand value and

Incidents of commercial bribery and market competitiveness and contribute

corruption may result in significant to long-term steady growth.Negative

economic costs legal consequences impact:

operational risks and reputational Physical and transition risks associated Business Highly

damage to the Company. with climate change may result in Ethics significant asset losses supply chain disruptions

and Anti- Efforts in business ethics and anti- Positive increased operational costs and shifts in

corruption corruption help establish sound internal impact: market preferences that impact product Negative

management systems and processes Moderately strategies. impact:

optimize internal controls and enhance significant Addressing

management efficiency and transparency. Climate The green transition and evolving market

Significant;

demand driven by climate change present Positive Change

In the context of technological uncertainty opportunities to explore new business impact:

regulatory volatility market competition Negative directions and develop innovative

Significant

and global expansion R&D investment impact: product solutions. Enhancing energy

may require significant financial input Moderately management can help secure long-term

R&D with no guaranteed commercial returns. significant; stable power supply and generate energy-

Innovation saving benefits.Technological innovation and forward- Positive

looking planning help cultivate impact:

Highly Quality supply compliance and ESG-new productive forces supporting related risks within the supply chain may

the Company's long-term market significant lead to raw material shortages business

competitiveness. interruptions increased costs and delivery

There are multidimensional risks delays impacting business continuity and Negative

including technical risks human errors market competitiveness. impact:

and operational and management risks. Negative Highly

impact: Sustainable Strengthening sustainable supply chain Improper management of critical data significant;

Information Highly supply chain management can enhance resilience and customer privacy may lead to data Positive

Security significant; ensure business continuity reduce breaches resulting in compliance risks impact:

and Privacy Positive operating costs and improve market or reputational damage and a decline in Highly

Protection impact: competitiveness and long-term investor customer trust. significant

Moderately appeal. In addition improving supply chain

Robust data protection builds confidence significant collaboration supports the adoption of

among global partners and facilitates new technologies and drives corporate

entry into more high-end markets. transformation and upgrading.Note: Impact levels are classified as negligible moderately significant significant and highly significant.

09 10Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Steady and Long-

Term Progress

Advancing Towards High-

Quality Development

Proportion of female directors

44.4%

Coverage rate of anti-corruption training

100%

Information leakage incidents

0

11 12Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Enhancing Corporate Governance

Standardized Yuwell Medical rigorously adheres to relevant laws and regulations including the Company Law General Meeting of Shareholders

of the People's Republic of China the Securities Law of the People's Republic of China the Code General meetings of Resolutions

Governance of Corporate Governance for Listed Companies the Rules Governing the Listing of Stocks on the As the Company's highest authority the General Meeting shareholders held reviewed and

Practices Shenzhen Stock Exchange and the Self-Regulatory Guidelines No. 1 for Companies Listed on of Shareholders reviews and decides on major company during the year approved

Shenzhen Stock Exchange—Standardized Operations of Companies Listed on the Main Board. matters. It convenes and holds meetings in accordance

The Company also complies with normative documents such as its Articles of Association. It with relevant regulations including the Rules for General

has established a robust corporate governance structure comprising the General Meeting of Meetings of Shareholders of Listed Companies and the 2 9

Shareholders the Board of Directors the Supervisory Board and the management team. This Rules of Procedure for General Meetings of Shareholders

framework ensures clear delineation of rights and responsibilities coordinated operations and of Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. Board of Directors Resolutions

effective checks and balances among the power decision-making supervisory and executive meetings held during reviewed and

organs constantly enhancing corporate governance efficiency. In 2024 the Company updated Board of Directors the year approved

five corporate governance systems including the Market Value Management System of Jiangsu The Board of Directors accountable to the General Meeting of

Yuyue Medical Equipment & Supply Co. Ltd. It consistently upholds the principles of integrity Shareholders is responsible for formulating the Company's

standardized operations core business focus and prudent management driving continuous development strategy business plans and major investment 10 30

improvement in operational standards and development quality. For comprehensive decisions. It also oversees the Company's operational

information on corporate governance please refer to the Jiangsu Yuyue Medical Equipment & management and financial status. The Board has established Audit Committee Strategy Committee

Supply Co. Ltd. 2024 Annual Report. four specialized committees: the Strategy Committee the Audit meetings held meetings held

Yuwell Medical strictly adheres to prescribed procedures for selecting and appointing directors Committee the Nomination Committee and the Remuneration during the year during the year

supervisors and senior management with no changes in membership occurring in 2024. In and Evaluation Committee. These committees handle specific

compliance with regulations such as the Rules for General Meetings of Shareholders of Listed matters within their authorized scope and provide professional

Companies the Measures for the Administration of Independent Directors of Listed Companies consultation and advice for Board decisions. 5 1

and the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange the Company Independent director Ms. Yu Chun chairs the Audit Committee

has formulated internal rules including the Rules of Procedure for General Meetings of independent director Ms. Zhong Mingxia leads the Nomination Remuneration and Evaluation Nomination

Shareholders Specialized Meeting System for Independent Directors Rules of Procedure for the Committee and independent director Mr. Wan Suiren heads Committee meetings held Committee meetings

Board of Directors and Rules of Procedure for the Supervisory Board. When convening general the Remuneration and Evaluation Committee. In all these three during the year held during the year

meetings of shareholders Board of Directors meetings and Supervisory Board meetings the committees independent directors constitute the majority and

Company strictly adheres to stipulated voting matters and procedures effectively safeguarding serve as chairs ensuring professionalism and independence in

the legitimate rights and interests of both the Company and its shareholders. decision-making. 2 2

Supervisory Board Supervisory Board Resolutions

meetings held during reviewed and

The Supervisory Board accountable to the General the year approved

Meeting of Shareholders oversees the Company's finances

and monitors the legal compliance of directors and

General Meeting of senior management in performing their duties thereby

Shareholders safeguarding the legitimate rights and interests of both the 5 12

Company and its shareholders.Supervisory Board Board Diversity and Effectiveness

Specialized Meeting for Board of Directors Board diversity plays a critical role in strengthening scientific decision-making and risk management capabilities serving as a cornerstone Independent Directors for Yuwell Medical's strategic implementation and long-term sustainability. The Company proactively fosters diversity within its Board

through multiple dimensions: gender cultural and educational backgrounds skill sets professional expertise and practical experience.This initiative ensures that Board decisions are both scientifically sound and effectively implemented. Currently composed of 9 members

the Board includes four female directors (44.4%) reflecting a strong dedication to gender equality at the decision-making level. It consists

of 6 non-independent directors and 3 independent directors whose combined backgrounds encompass interdisciplinary knowledge and

Remuneration and

Audit Committee Nomination Committee Strategy Committee extensive industry experience. Their expertise spans bioengineering medical devices risk management finance & accounting law and

Evaluation Committee corporate finance creating a well-balanced mix of experience and professional competencies. The Chair of the Audit Committee brings

a professional accounting background while several directors contribute deep practical insights into risk management and mitigation

including expertise in establishing comprehensive risk management frameworks and addressing major risk incidents. This collective

expertise effectively supports the Company's processes for identifying assessing responding to and mitigating risks.

13 14Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

To advance Board diversity Yuwell Medical has established the Independent Director System and the Working Rules of the Board's Protection of Investor Rights and Interests

Nomination Committee providing a robust institutional foundation for inclusive governance. The Board member nomination

process follows a rigorous selection protocol: the Nomination Committee integrates diversity criteria into its evaluation conducting Yuwell Medical rigorously complies with the Securities Law of the People's Republic of

comprehensive assessments of candidates' educational backgrounds industry experience professional competencies and career China the Measures for the Administration of Information Disclosure by Listed Companies

trajectories. This ensures a balanced composition of the Board in terms of capabilities skills experience gender age and cultural and the Provisions on the System for Registration and Management of Insiders Who Have

perspectives. The Company also attaches great importance to Board members' ethical integrity and leadership credibility. Independent Access to Insider Information of Listed Companies among other relevant laws regulations

director nominations once shortlisted must first undergo qualification and independence reviews by the Shenzhen Stock Exchange. and normative documents. The Company has established the Information Disclosure

They are then subject to election via cumulative voting at the general meetings of shareholders a mechanism that continually elevates Affairs Management System and the Accountability System for Major Errors in Annual

corporate governance standards and decision-making efficacy. Additionally Yuwell Medical actively promotes professional development Report Information Disclosure. These measures ensure that information is disseminated

training and compliance education for Board members aiming to strengthen their professional acumen and performance capabilities. Recognized by the China authentically accurately and in a timely manner thereby improving the quality and

During the reporting period multiple directors engaged in internal high-potential training programs collectively enhancing corporate Association for Public transparency of its disclosures. During the reporting period Yuwell Medical issued four

governance and strategic development capabilities. Companies for Outstanding periodic reports and 35 ad hoc announcements. The Company designated Securities

Board Office Practices in 2024 Times Shanghai Securities News and the CNINFO website as its official media outlets

During the reporting period all directors remained fully compliant with laws regulations and the Company's Articles of Association for information disclosure ensuring equitable access to information for all shareholders.discharging their duties with due diligence prudence and accountability. Meanwhile independent directors actively engaged in Board Throughout the reporting period the Company's information disclosure practices remained

activities through multiple channels offering independent perspectives on key matters to safeguard the scientific validity of decision- fully compliant with regulatory requirements and were free from any false records

making. They effectively exercised their supervisory functions promoting the implementation of Board resolutions and ensuring the Honored with the misleading statements material omissions or other breaches of disclosure obligations.accuracy of information disclosure thereby safeguarding the legitimate rights and interests of both the Company and its shareholders. 15th Pegasus Award

Yuwell Medical continues to refine its internal policies including the Investor Relations

for Investor Relations Management System aiming to build a transparent and efficient communication

Management of Chinese

Professional Capabilities platform for investors. The Company actively carries out investor relations initiatives to Listed Companies

strengthen investor confidence and understanding. A dedicated investor relations section

Type Name Gender Industry Risk

Accounting Law on the Company's official website is maintained by a professional team and regularly

Experience Management updated to provide timely access to the latest company developments. The Company

Chairman General also operates an investor hotline (+86 511-86900876) offering prompt and detailed

Wu Qun Male Received the 14th

Manager responses to inquiries while welcoming feedback from both shareholders and potential Outstanding Board investors. In 2024 the Company convened two general meetings of shareholders held

Director Deputy Zhao

Male Secretary Award for two performance briefings and hosted three online investor exchange sessions. These

General Manager Shuai Investor Relations events allowed for in-depth communication on the Company's financial results and

Wang Management of Chinese

Director Female business strategy. In addition through the cninfo.com platform the Company responded

Lihua Listed Companies to hundreds of questions from investors regarding its operations strategic direction and

Director Deputy Zheng product offerings—achieving a response rate of 98.40%.Male

General Manager Hongzhe Yuwell Medical is dedicated to ensuring equal treatment for all shareholders and has

Chen

Director Male Awarded the 18th China taken proactive measures to safeguard investor rights and interests with a particular

Jianjun Listed Company Value emphasis on minority shareholders. As part of these efforts shareholders including

Wang Selection - Sunshine minority investors can attend shareholder general meetings in person or cast their Director Board Secretary Female

Ruijie Board Secretary Award votes online. For significant matters potentially affecting the interests of minority

Independent Director Yu Chun Female investors the Company separately tallies and discloses their votes. General meetings

of shareholders are scheduled and located to maximize participation and modern

Wan

Independent Director Male information technology is leveraged to increase shareholder engagement ensuring

Suiren all investors especially minority shareholders are informed and can participate in

Zhong major company decisions to effectively safeguard their legal rights and interests.Independent Director Female

Mingxia Yuwell Medical has established a strong shareholder return ethos implementing a

consistent and stable cash dividend strategy to ensure investors share in its growth. The

Board of Directors formulates profit distribution plans based on comprehensive annual

Gender Distribution of the Board of Directors Educational Background of the Board of Directors performance evaluations which are then approved through general meetings of

shareholders to safeguard the legal rights and interests of all shareholders particularly

33% 22% minority investors. To further strengthen market value management the Company

44.4% Doctoral degree implemented the Yuwell Medical Market Value Management System in 2024 and

Female unveiled the Quality Improvement and Return Enhancement Program. This initiative

Master's degree includes the distribution of interim dividends to enhance shareholder returns and

Male market confidence thereby fostering the Company's long-term sustainable growth. For

Bachelor's degree

45% detailed dividend plans and shareholder equity protection measures please consult

55.6% the Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Annual Report.

15 16Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Risk Management and Internal Control

Yuwell Medical rigorously adheres to the Company Law of the People's Republic of China the Audit Law of the People's Republic of Risk Training

China the Basic Standards for Enterprise Internal Control and its supporting guidelines as well as regulatory requirements on internal

control set forth by the China Securities Regulatory Commission and stock exchanges. Considering the unique characteristics of the Yuwell Medical actively nurtures a risk management culture enhancing employees' awareness of internal control risks and

medical device industry the Company constantly enhances the construction evaluation and supervision of its internal control and risk governance capabilities through comprehensive training programs and advocacy initiatives. By integrating these efforts with

management systems to ensure their effective operation thus supporting sustained and stable development. company-wide participation the Company fosters a proactive risk prevention mindset constantly refining its standardized

operational practices. It closely monitors emerging regulatory changes and policy trends undertaking timely analysis and

Risk Management Structure engaging external experts to provide in-depth interpretations and training when necessary ensuring potential risks are managed

within acceptable thresholds.The Board of Directors and its Audit Committee are responsible for comprehensive management and oversight of a wide range of risks. The

Audit Committee supervises the implementation of internal audit and control systems assesses risk management effectiveness and closely

monitors the progress of external audit institutions including accounting firms and national audit agencies. The Board authorizes other

specialized committees to conduct risk management within their respective domains. The Audit Department operating independently from

other business segments is responsible for daily supervision and ensures the effective execution of risk control measures through audit Tax Management

procedures engaging external institutions for independent audits when necessary.Yuwell Medical consistently adheres to the principle of tax compliance in its business

Risk Identification and Response operations strictly following domestic laws and regulations such as the Enterprise Income

Tax Law of the People's Republic of China and international tax regulations. The Company

Yuwell Medical consistently strengthens its risk identification and response capabilities standardizes business management processes is progressively building a comprehensive tax management system actively promoting the

and achieves risk assessment control confirmation and deficiency rectification across core business segments. The Company undertakes implementation of a robust tax management framework and has established a dedicated

end-to-end process control systematically identifying and evaluating operational risk sources while refining and monitoring risks relevant tax team to ensure accuracy and compliance in tax management. During the reporting period the

to its core operations. This includes addressing investment risks business uncertainties operational challenges and sustainability risks Company maintained an

thereby strengthening its risk prevention and control capability through systematic management. Additionally the Company incorporates In 2024 Yuwell Medical further fortified its tax compliance management by progressively

significant ESG risks and opportunities into its risk review and business planning processes fully integrating them into operational and implementing a closed-loop system for tax risk identification assessment and response

financial planning to better manage or mitigate risks and seek growth and transformation opportunities. thereby enhancing its tax risk management capability. In the realm of international

operations the Company optimized its tax management strategies—including the A -grade tax credit rating

In 2024 Yuwell Medical actively promoted the application of digital system platforms in risk identification and supervision achieving timely management of transfer pricing policies and the utilization of tax treaties—to mitigate incurring no major tax violations.identification and effective monitoring of potential risk sources. The Company constantly optimized and improved internal systems such cross-border tax exposures. By conducting internal self-audits and engaging external

as the Information Asset System and Market Activity Expense Regulations comprehensively raising employees' awareness of compliance reviews the Company ensured that its tax management practices were aligned with

and risk control. Moreover the Company strengthened risk management and control of business segments in branches and subsidiaries relevant governance and control frameworks. In response to the OECD's "Two-Pillar"

issuing documents such as the General Principles for Key Issues Approval of Branches and Subsidiaries and establishing robust internal global minimum tax reform the Company assessed its potential impact and established a

control systems for overseas operations to safeguard the Company's global strategy. compliance reporting mechanism to ensure tax fairness and sustainability.Risk Identification

Risk Assessment

Risk Control

17 18Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Adherence to Business Ethics

Governance

Yuwell Medical is firmly committed to the core corporate value of "integrity as the foundation". It strictly adheres to the Company Supply Chain Management

Law of the People's Republic of China the Anti-unfair Competition Law of the People's Republic of China the Anti-Monopoly Law

of the People's Republic of China the Anti-Money Laundering Law of the People's Republic of China as well as other relevant laws To establish an honest and transparent supply chain and maintain a fair market environment Yuwell Medical consistently promotes

regulations and industry standards. The Company has established and constantly refined its business ethics and anti-corruption compliance and business ethics management among its partners. The Company mandates that all suppliers sign an Anti-commercial

management system building a comprehensive defense line for ethical business practices. Bribery Statement and relevant confidentiality agreements before entering into cooperation. This requirement extends to suppliers

regular distributors logistics partners and others. External reporting channels have been established to specifically identify and prevent

Across its global operations Yuwell Medical has established a comprehensive business ethics and compliance management business ethics risks in commercial processes. In 2024 the Company incorporated business ethics and anti-corruption content into

framework that covers both the Company and its supply chain. The Board's Audit Committee acts as the supervisory authority supplier conferences conducting integrity promotion throughout the supply chain to ensure effective implementation of business ethics

overseeing the implementation of ethical management systems and requirements to drive the Company's stable high-quality policies. A total of five offline training sessions were conducted throughout the year reaching 522 suppliers.growth. Meanwhile the Supervisory Committee—an independent internal oversight unit—assumes the role of monitoring evolving

national and industry policies on compliance and business ethics. It evaluates ethical and anti-corruption risks formulates Yuwell Medical requires suppliers to comply with national and local laws regulations policies and industry standards in their operating

policies and closely collaborates with the Audit Department to conduct daily audit supervision ensuring strict adherence to the jurisdictions. It maintains a zero-tolerance policy towards any form of corruption fraud extortion or embezzlement. Employees found

highest compliance and ethical standards. All functional departments are required to rigorously enforce and implement business violating these regulations face immediate dismissal and permanent disqualification from re-employment. For partners violating

ethics regulations. Additionally the Company maintains employee integrity records which serve as crucial references for employee regulations cooperation is terminated immediately upon verification and supervision and control of relevant departments during

promotion recognition and performance evaluations. collaboration are intensified. The Company reserves the right to conduct on-site or surprise audits of suppliers with appropriate notice

to ensure continuous monitoring of supply chain compliance and business ethics risks. If improper or non-compliant behaviors are

Yuwell Medical has developed and constantly refined its business ethics management system which covers 100% of its business discovered during audits cooperation is immediately terminated and responsible parties face serious consequences. In 2024 the

areas and functional departments. This comprehensive system includes the Code of Conduct for Integrity in Business Practices Company conducted factory audits of 30 suppliers covering business ethics and anti-corruption related content.Statement on Anti-Commercial Bribery Declaration Management System for Employee Conflicts of Interests Surrender

Management System for Gifts and Cash as Giving Management Measures for Supervision and Employee Professional Ethics

and Code of Conduct. These policies ensure that all directors employees (including part-time staff) headquarters supply chain

partners and distributors adhere to core principles such as anti-fraud anti-money laundering anti-corruption anti-bribery fair

competition anti-monopoly and conflict of interest prevention. The Company is progressively expanding the application of these

principles to cover suppliers distributors and other customer groups of all branches and subsidiaries thereby reinforcing a robust Throughout the year a total of encompassing

business ethics defense line across the entire enterprise.

5offline business ethics training sessions 522 suppliers

Strategy and Management Mechanisms were conducted for the supply chain

Yuwell Medical considers business ethics as the cornerstone of its corporate culture integrating it into the Company's long-term

development strategy and extending this requirement throughout its supply chain to safeguard high-quality development. During

the reporting period the Company did not face any major litigation cases involving corruption or unfair competition.Anti-Unfair Competition

Business Ethics Training

Yuwell Medical steadfastly upholds the Anti-Unfair Competition Law of the People's

To cultivate a culture of integrity Yuwell Medical has developed a comprehensive compliance and business ethics training Republic of China and relevant anti-monopoly and fair competition regulations

program for all employees. This program covers but is not limited to onboarding compliance training for new hires integrity and in all its operational jurisdictions. By strictly prohibiting practices such as price

compliance workshops for functional staff anti-corruption seminars for directors and the promotion of supplier codes of conduct. manipulation false advertising and trade secret infringement the Company

During the reporting period the

The Company integrates employee integrity and compliance performance into promotion recognition and performance appraisal actively fosters a fairer and more transparent market ecosystem. Its comprehensive

Company reported no violations

criteria thereby strengthening employees' awareness of compliance and anti-corruption measures to deter unethical practices and compliance and ethics training program integrates dedicated modules on anti-unfair

of anti-unfair competition laws

fraudulent conduct. In 2024 the Company conducted online compliance and business ethics training and examinations achieving competition with eight specialized sessions delivered annually for all staff. These

and regulations.

100% coverage of Board members as well as Group branch and subsidiary employees (including part-time staff). Online training initiatives ensure employees gain thorough understanding of and strictly comply

and learning sessions exceeded 1 hour in duration. Offline specialized training primarily targeted departments such as finance with the Company's anti-unfair competition policies. The Compliance Supervision

procurement storage and transportation and human resources. Five sessions of compliance and business ethics training for new Department regularly conducts anti-unfair competition reviews addressing any

employees were conducted recording 489 attendances. violations with stringent measures.

19 20Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Whistleblowing Management Impact Risk and Opportunity Management

Yuwell Medical upholds a zero-tolerance policy towards corruption and unethical business practices. The Company has implemented the

Yuwell Medical Management System for Whistleblowing and established diverse reporting channels. Employees suppliers distributors Yuwell Medical integrates business ethics and anti-corruption risks into its overall risk management framework. To proactively mitigate

and other stakeholders are encouraged to report concerns openly or anonymously through mail telephone hotlines and other means. ethics-related risks the Company undertakes regular risk identification and assessment conducting thorough analyses of potential

This approach promotes active participation of all employees suppliers and partners in the integrity supervision system ensuring ethical risk factors. This includes evaluating various conflicts of interest improper benefit transfers and unfair competition risks in areas

prompt and effective addressing of potential or existing violations of the Company's ethical standards policies and applicable laws. such as academic exchanges clinical research and retail terminal sales. The Company develops compliance policies and procedures

to ensure that all business conduct across operations adheres to ethical standards and legal requirements. Through continuous

The Company has established a core Supervisory Committee tasked with centrally managing whistleblowing complaints. This enhancements to its monitoring system—including internal audits compliance reviews and confidential whistleblowing mechanisms—

committee reports directly to the Chairman thereby ensuring independence and impartiality in complaint resolution and supervisory the Company enables timely detection and disclosure of potential risks.operations. The whistleblowing process—from investigation to feedback—is typically concluded within 30 days of complaint receipt.Confirmed cases of corruption are subject to strict measures based on the severity of the offense. Within the business ethics management framework the Supervisory Committee and Audit Department conduct ad hoc audits

and oversee the implementation of policies and the management of business ethics risks across various business scenarios. They

Yuwell Medical is dedicated to strictly protecting the confidentiality of whistleblowers' personal information and reported materials. regularly report audit results significant findings and matters requiring attention directly to the Board's Audit Committee and the

A confidential whistleblowing receipt ledger is maintained with a unified numbering system for receipts. Designated personnel Chairman maintaining independence at organizational business and individual levels. Additionally the Company annually reviews

exclusively handle whistleblowing cases and materials managing them in strict accordance with confidentiality protocols. The Company the effectiveness and compliance of its internal control system proactively managing potential business ethics risks in operations.explicitly prohibits disclosing whistleblowers' identities or case details to parties under investigation or unauthorized individuals. While The Supervisory Committee and Audit Department considering situational factors and based on corporate control requirements and

safeguarding whistleblowers' anonymity the Company takes stringent measures against any form of retaliation. Verified retaliatory departmental audit plans constantly conduct targeted audits to enhance risk control in core business areas. The Company develops

actions are dealt with seriously and behaviors that significantly endanger whistleblowers' rights are promptly reported to judicial continuous improvement plans based on audit outcomes to ensure the effective operation of its business ethics anti-corruption policies

authorities for potential criminal prosecution. and compliance systems. Furthermore it establishes anti-corruption agreements with business partners and implements external

reporting channels to specifically identify and mitigate business ethics risks in commercial processes.Mailing Address Supervisory Committee Yuwell Science and Technology Center No. 1 East Huanyuan

Road Xuzhuang Software Park Xuanwu District Nanjing City Jiangsu Province

Telephone 025-85582701

Whistleblowing

Channels Email jubao@yuyue.com.cn Indicators and Targets

Indicator and Target 2024 Achievement Status

Zero major litigation cases

involving corruption or unfair Target achieved

competition

Target achieved

Average anti-corruption training

duration per director: 5.7 hours with

100% coverage rate of anti- 100% coverage rate.

corruption training

Average anti-corruption training

duration per employee: 6.7 hours with

100% coverage rate.

100% signing rate of Anti-

commercial Bribery

Statement and Supplier Social

Responsibility Commitment Target achieved

by suppliers distributors and

partners of Yuwell Medical's

parent company

100% handling rate of valid

Target achieved

whistleblowing reports

21 22Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Information Security and Privacy Protection

Governance Overseas Data Security Management

Yuwell Medical's information security and privacy protection governance structure is deeply integrated into its overall governance framework. To strengthen data protection in its global operations and ensure the confidentiality integrity and availability (CIA) of data Yuwell

The IT Leadership Group is responsible for formulating macro strategies and key decisions regarding information security as well as overseeing Medical strictly complies with relevant international laws and regulations—particularly local data protection requirements in the

the implementation of information security measures. The Information Management Department executes specific information security jurisdictions where it operates. The Company has established a comprehensive Overseas Data Security System that clearly defines

measures ensuring the continuous and effective running of the information security operation and maintenance system and reports directly requirements across various dimensions including overseas data collection and storage transmission and utilization sharing and

to the IT Leadership Group. Additionally the Company has established quantitative information security indicators and a reward/punishment disclosure emergency response protocols and supervision and auditing procedures. This robust system rigorously safeguards

mechanism incorporating information security performance into the employee evaluation system to reinforce information security against security risks associated with overseas data management and cross-border data transfers.management practices.Yuwell Medical adheres to 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 as well as other applicable laws and regulations in its operational Supply Chain Information Security Management

regions. Benchmarking against standards such as ISO 27001 Information Security Management System and ISO 27701 Privacy Information

Management System the Company has developed a comprehensive Information Security Privacy and Personal Identifiable Information During supplier admission assessments Yuwell Medical incorporates the protection of customer information security into

Management Manual. This is complemented by a series of management procedures regulatory systems and related forms including the its evaluation criteria. Stringent confidentiality clauses are stipulated in the Sourcing Framework Agreement to ensure that

Information Security Management System Data Security Management System Information Security Risk Assessment Management Measures confidential information and related data remain secure. The Company has implemented the Information Security Outsourcing

Information Security Outsourcing O&M Management Regulation and Overseas Data Security System. Taken together these measures O&M Management Regulation to conduct thorough security reviews and ongoing monitoring of service providers. This proactive

constitute a robust information security protection system that spans all business areas. The system ensures the security of the Company's approach allows for the timely detection and correction of various anomalies in the service process mitigating risks such as

information infrastructure application systems products and customer information thereby safeguarding operational continuity. information leakage tampering unavailability unauthorized access and physical environment or facilities damage.Strategy and Management Mechanisms

Personal Information and Privacy Protection

Yuwell Medical adheres to the management principle that "Information assets are the foundation of survival; privacy security is

everyone's responsibility". The Company has established clear procedural standards across various aspects including information Yuwell Medical adheres to the privacy protection principles of "legality authorization and confidentiality" integrating data privacy

security and privacy protection policy regulations risk and impact assessments lifecycle management network and information security protection into its overall compliance management framework. The Company is working to improve its privacy data management

emergency management monitoring and auditing. These standards strictly govern employee behavior in areas such as network system which covers various types of product data. This effort aims to ensure transparency in how data is collected and used.security operation and maintenance management data center management system changes personal information and privacy This system ensures compliance at every stage of the personal information lifecycle—from collection and usage to transmission

protection and overseas data security. The Company emphasizes information security and privacy protection training and conducts storage and deletion. Furthermore the Company actively engages in formulating industry standards for medical data security

regular audits to constantly enhance its capabilities in these critical areas and personal identifiable information management. thereby promoting the standardized secure and efficient use of medical data.Information System and Data Security

Data Backup Tiered Control of Enhanced Technical Information Security Information Security

and Recovery Data Assets Protection Emergency Management Culture Building

The Company has implemented The Company has classified and The Company constantly upgrades The Company regularly improves its The Company includes information security as

comprehensive data recovery plans graded its data assets including its information security protection Cybersecurity Emergency Response part of its onboarding programs to ensure new

which specify the requirements marketing production financial c a pa b i l i t i e s i m p l e m e n t i n g Plan. An early warning and emergency hires understand role-specific security risks and

and protocols for data backup and R&D data according to a three- encryption/decryption management response technology platform baseline requirements. Regular company-wide

extraction and usage to ensure tier system (i.e. core important and for servers and terminal data. has been established to enhance training sessions and awareness campaigns are

rapid recovery in case of loss or general data). Targeted protection Internal and external firewalls capabilities for swift detection and held to highlight the importance of information

damage. Cloud services and NAS measures have been applied based situation awareness systems and analysis of security incidents. Protocols security in daily tasks helping employees better

(Network Attached Storage) have on this classification with enhanced other intrusion detection and for managing and handling emergency identify and prevent potential data security

been utilized for scheduled full/ tiered control and permission prevention mechanisms have events have been strengthened issues. During the reporting period the Company

incremental backups to mitigate management to ensure optimal been deployed. Network isolation to ensure prompt and effective delivered 15 specialized information security

data loss risks. Quarterly recovery protection for the most sensitive protocols have been strengthened information security responses. Thirty- training sessions covering topics such as

drills of backup data in simulated and critical data. These actions help complemented by regular security five information security emergency overseas data classification information security

environments are conducted to reduce the risks of data breaches loss assessments and vulnerability scans drills were successfully conducted management and endpoint protection security.verify recoverability. and misuse while improving data to maintain a robust data security throughout the year. Yuwell Medical's Information

management efficiency and security. protection framework. Security Promotion Poster

23 24Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

mechanisms. At the management level the Company has implemented comprehensive information security and privacy

The Company conducts all operations involving personal data collection storage processing protection policies and procedures. Ongoing training and preventive management are also emphasized to avoid transfer and

transportation and use in strict accordance with applicable laws regulations and codes of mitigate information security risks.conduct conscientiously safeguarding the legitimate rights and interests of data subjects.Principle The Company requires users to verify the legality and compliance of external data sources before Yuwell Medical regularly audits its information security management system in alignment with its business characteristics

of Legality introducing them into Yuwell systems or storage infrastructure. constantly monitors information security technology trends and evaluates and enhances risk control measures to maintain

robust information security protection capabilities thereby ensuring business continuity and data asset security. The Company

conducts specialized audits across five key areas: user access management system development system changes logical

Prior to obtaining personal information the Company mandates the signing of a Yuwell Software access and other general controls. Independent third-party organizations are also engaged to audit the Company's information

Service Agreement with individual consent fully respecting and upholding the rights of individuals security system and provide Information System Audit Reports validating the effectiveness and compliance of information

to be informed access correct and delete their information. security management practices. For managing data overseas the Company has set up dedicated teams or roles focused on data

security supervision. These teams are responsible for the daily monitoring and inspection of data processing activities outside the

The Company meticulously assesses the necessity of obtaining personal data refraining from country. They regularly review the implementation of data security protocols data access logs security incident reports and other

Principle of accepting or collecting data unrelated to its business functions. relevant information aiming to swiftly identify and rectify any data security discrepancies or violations. The Company periodically

Authorization The Company guarantees relevant parties' rights to knowledge choice and control over their engages internationally accredited third-party security audit firms to conduct comprehensive assessments of its overseas data

personal information. Only authorized data is obtained and used with a series of measures taken security management system. Any identified issues are promptly addressed in accordance with audit recommendations ensuring

to minimize the use of personal information. continuous improvement in data security management standards.The Company maintains strict confidentiality of privacy data refraining from sharing transferring

or disclosing users' personal information to any third-party company organization or individual

without explicit permission. It establishes robust data security capabilities implements necessary

Principle of management and technical measures and conducts regular inspections and evaluations of the

Confidentiality effectiveness of privacy data management and technical safeguards to prevent data breaches

damage loss or tampering.Yuwell Medical has successfully The Yuwell Anytime system has

obtained ISO 27001 and ISO achieved Level 3 Information System

27701 certifications Security Protection certification

Impact Risk and Opportunity Management

Yuwell Medical has implemented the Information Security Risk Assessment Management Measures establishing a clear process for

assessing information security risks. This thorough procedure encompasses risk assessment preparation threat and vulnerability

identification risk evaluation and analysis risk treatment residual risk management and risk control. By quantitatively assessing Indicators and Targets

risk levels the Company enhances its capability to accurately identify and evaluate potential cybersecurity threats facilitating

the development of targeted mitigation strategies. The information security risk assessment team comprises cross-departmental Indicator and Target 2024 Achievement Status

cybersecurity personnel and external experts ensuring a comprehensive and professional evaluation through collaborative

expertise. Assessment methodologies incorporate a mix of questionnaires interviews automated scans manual inspections

document reviews and ethical penetration testing. Risk levels are determined by integrating both the value of the assets involved 100% coverage rate of information security training Target achieved

and the likelihood of potential threats occurring. The Company conducts risk assessments at least annually and updates them in

response to changes in information systems business operations and information security incidents thereby maintaining timely

and effective risk management.

100% completion rate of annual IT-specific review for

Target achieved

During the information security risk assessment process Yuwell Medical systematically identifies a wide range of potential critical business system permissions

risks including technical risks (e.g. hardware and software failures physical environmental impacts malicious code and

viruses) human risks (e.g. negligence operational errors mismanagement unauthorized access or abuse and hacker attacks)

management risks (e.g. inadequate security policies organizational security management deficiencies and low personnel Zero major information security incidents Target achieved

security awareness) and legal and regulatory risks (e.g. potential legal liabilities or reputational damage resulting from non-

compliance with relevant laws and regulations). These risks are incorporated into the enterprise-wide risk management framework

to safeguard the Company's information assets thus ensuring privacy protection. Yuwell Medical deploys multidimensional risk Zero information leakage incidents Target achieved

prevention and control measures to mitigate information security risks. At the technical level the Company has established a

robust protection system incorporating network isolation data encryption firewalls vulnerability scanning and early warning

25 26Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Sustainable Supply Chain

Governance Supplier Evaluation and Improvement

The quality resilience and sustainability of the supply chain are paramount to Yuwell Medical's stable development. The Company has Yuwell Medical employs a classified and tiered management approach for its suppliers. Based on the type of products and services

established an efficient supply chain management system through a clear delineation of responsibilities and robust cross-departmental provided suppliers are categorized into material suppliers storage and transportation suppliers and IT service suppliers with tailored

collaboration mechanisms. The Supply Chain Management Department comprises four specialized teams: the planning and management requirements and standards established for each category. The Supplier Management Control Procedure clearly

procurement team the resource development team the advance procurement team and the indirect procurement team. These teams delineates protocols for supplier audits performance evaluations and potential restrictions or eliminations. Following classification

are responsible for managing the entire lifecycle of suppliers. They lead and participate in supplier evaluations in line with the Company's and tiering principles the Company develops rigorous annual audit plans for all admitted suppliers. This process includes issuing and

procurement policies and requirements and coordinate all activities related to suppliers. The Quality Department works closely with the distributing Supplier Evaluation Forms and conducting regular monitoring and thorough assessments of suppliers' qualifications

Supply Chain Management Department to carry out thorough supplier audits assessments and controls. Together they aim to build a contract performance quality management practices and social and environmental impacts through both remote and on-site audits.high-quality and resilient supply chain. Based on the audit findings the Company issues Supplier Corrective and Preventive Action Reports providing prompt feedback to

suppliers and guiding them through targeted improvement efforts in response to identified issues. During the reporting period Yuwell

Yuwell Medical strictly adheres to the Law of the People's Republic of China on Invitation and Submission of Bids and its associated Medical's parent company conducted 65 on-site audits including evaluations of newly admitted suppliers.implementation regulations alongside other pertinent laws and regulations. The Company has formulated internal management

standards including the Supplier Management Control Procedure and Procurement Control Procedure. These standards govern

the entire supplier lifecycle—from screening and onboarding to collaboration evaluation and exit. By strictly enforcing supply chain

compliance requirements the Company establishes a fair and equitable procurement environment while constantly optimizing supplier Material Supplier Management

portfolios thereby enhancing overall supply chain efficiency and risk resilience.Ensuring a high-quality and stable material supply is critical to guaranteeing product safety and reliability from the source. Yuwell

Strategy and Management Mechanisms Medical prioritizes material supplier management by implementing a category-based and tiered approach. This system classifies suppliers according to four key criteria: the criticality of the component's role in the final product the complexity of its production

process its risk level to product quality and safety and audit sample test results. The Company develops annual supplier audit

Guided by its overarching business strategy Yuwell Medical consistently refines its supplier lifecycle management formulates and plans to evaluate the systems of material suppliers listed in the Qualified Supplier Directory. Quarterly performance assessments

implements sustainable procurement policies reinforces data-driven decision-making processes and enhances collaborative are conducted to inspect the quality of supplied goods with underperforming suppliers required to analyze root causes and

efficiency. The Company is committed to building a competitive resilient and sustainable supply chain providing a solid implement corrective and preventive actions (CAPA). The Company establishes strategic partnerships with reputable key material

foundation for achieving its strategic objectives. suppliers to achieve long-term supply chain stability.Supplier Lifecycle Management The Company has implemented robust exit mechanisms at various stages of supplier management to maintain stringent

quality control. For material suppliers after passing the initial screening and admission process new suppliers' materials

undergo production trial evaluations. Suppliers failing three production trials are eliminated. During annual audits suppliers

Supplier Screening and Admission receiving a C-grade are required to improve within a specified timeframe and face elimination if they fail a re-evaluation.Yuwell Medical has deployed a robust mechanism for screening and admitting suppliers. By developing multi-dimensional Suppliers receiving a D-grade are immediately disqualified. Those receiving three consecutive C-grades are downgraded to D

evaluation standards the Company carries out thorough qualification reviews of potential suppliers. These assessments evaluate and have their supply qualifications suspended.supply and delivery capability financial risk capability quality assurance capability R&D and technical capability and adherence

to sustainability requirements. Suppliers who meet these criteria are included in the Qualified Supplier Directory and are subject to

classified and tiered management contributing to the development of a high-quality supply chain ecosystem. Assessment Grade Assessment Result Score Treatment Method

Occupational health and safety information security protection environmental A Excellent supplier ≥ 90 Priority procurement

Supply and

stewardship procurement and supplier management delivery efficiency and

Delivery Capability

warehousing and transportation management. B Standard supplier 70-89 Normal procurement

Financial Risk

Asset quality indicators profitability metrics and internal control management systems.Capability Time-limited

Provisionally acceptable

C 60-69 improvement reduced

Quality management systems personnel training programs equipment management supplier

Quality Assurance procurement

protocols quality control practices supplier management procedures and warehouse

Capability

management efficiency.Supply qualification

D Unqualified supplier <60

R&D and Technical Technical reserves R&D and design capabilities new product introduction processes cancelled

Capability and engineering management competencies.

27 28Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Collaborative Win-Win with Suppliers

Yuwell Medical actively fosters cooperation and exchange with suppliers delivering professional training and placing a strategic

focus on the development of small and medium-sized vendors. The Company provides tailored support to suppliers facing

temporary challenges constantly optimizing the supplier ecosystem to enhance overall supply chain competitiveness. Through

multilateral dialogue and communication the Company proactively shares updates on production requirements product quality Total number Proportion of suppliers subjected

standards and company policy interpretations. With an open and cooperative approach the Company grows alongside its of suppliers to environmental assessments

suppliers achieving collaborative optimization and sustainable development of the supply chain.Case Annual Supplier Conference 516 100%

In October 2024 Yuwell Medical hosted its 2024 Annual Supplier Conference themed "Quality Wisdom Supply and Win". The

conference comprised four sessions engaging 309 suppliers of the Company and 213 suppliers of its branches and subsidiaries.Supplier partners from around the globe actively attended the event collectively exploring product innovation-driven industrial Proportion of suppliers subjected On-time payment

upgrading and the future development of globalized supply chains. to quality and safety assessments rate to SMEs

100%100%

Note: Statistics pertain to Yuwell Medical's parent company.Sustainable Procurement

Yuwell Medical integrates sustainability requirements into its

supply chain management system explicitly mandating the

consideration of environmental social and governance factors in

the procurement process. Suppliers are required to sign documents

such as the Supplier Anti-Commercial Bribery Commitment and Product and Service Quality Business Ethics and Anti-Corruption Environmental Protection and Labor Rights

Supplier Social Responsibility Commitment ensuring compliance

with BSCI (Business Social Compliance Initiative) regulations and

legal requirements. These commitments encompass principles The Company clearly articulates its quality requirements in The Company mandates all suppliers to sign the Supplier The Company conducts comprehensive social responsibility

including anti-bribery anti-corruption anti-monopoly anti-money the Quality Agreement and Freight Transportation Services Anti-commercial Bribery Statement. It reinforces advocacy audits on suppliers in accordance with BSCI and local government

laundering and conflict of interest avoidance in business conduct. Contract. A robust quality information sharing mechanism and training and when necessary conducts thorough requirements resulting in detailed Supplier Social Responsibility

They also prohibit the use of child labor and forced labor mandate is established with suppliers alongside regular audits and due diligence investigations and audits of partners based Audit Reports. These audits cover multiple critical areas including

the provision of safe and healthy work environments respect for assessments. When necessary quality training technical on cooperation projects. The aim is to foster long-term child labor forced labor occupational health and safety freedom

employee rights elimination of discrimination and establishment cooperation and exchanges are provided to strictly control partnerships with suppliers who adhere to high standards of of association and collective bargaining anti-discrimination and

of social responsibility management systems. The Company quality risks at all stages. For detailed information please refer business ethics. For detailed information please refer to the environmental issues. Suppliers who have obtained relevant

implements and monitors supplier sustainable procurement to the "Product Quality and Safety" section of this report. "Adherence to Business Ethics" section of this report. environmental management system and occupational health

requirements through rigorous supplier assessments contractual and safety certifications are given favorable consideration during

terms training and education and regular audits to ensure supply admission and audits encouraging suppliers to strengthen their

chain sustainability and stability. Additionally the Company treats sustainability management practices.suppliers with integrity adhering strictly to legal requirements

for timely payment to small and medium-sized enterprises thus

protecting their legitimate rights and interests.In 2024 231 suppliers of Yuwell Medical's parent company were

certified for quality management systems 30 for environmental

management systems and 66 for occupational health and safety

management systems.

29 30Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Resilient Supply Chain Impact Yuwell Medical navigates a diverse landscape of supply chain risks encompassing quality

risks (e.g. raw materials products and services) supply risks (e.g. supplier disruptions

Establishing a resilient supply chain and ensuring business continuity are pivotal aspects of building a sustainable supply chain. Risk and raw material shortages transportation delays) financial risks (e.g. price fluctuations

Yuwell Medical proactively enhances its supply chain safeguarding measures to ensure stability and reliability. In 2024 the Opportunity market volatility) compliance risks (e.g. violations of laws regulations and company Company maintained stable raw material supplies with no production disruptions attributed to material shortages. policies) and ESG risks (e.g. labor rights occupational health and safety business

Management ethics and anti-corruption). The Company's internal management standards including

the Supplier Management Control Procedure and Procurement Control Procedure

comprehensively address supply chain risks and implement meticulous risk control

measures across all supply chain stages.The Company expands its supplier network and builds secondary sourcing capabilities along

with a supplier rotation mechanism. Through a diversified supply network and primary/backup The Company conducts annual in-depth identification and assessment of potential

strategies for critical materials the continuity of key material deliveries is assured. The Company supply chain risks including ESG risks. It performs thorough analyses of specific mitigation

Dual maintains a robust supplier pool for priority categories and constantly optimizes suppliers to measures for different supplier categories and develops comprehensive annual audit

Sourcing mitigate supply risks. plans. Regular monitoring and holistic evaluations of suppliers are conducted to ensure

effective control of supply chain risks. In cases where a supplier's assessment performance

is subpar the Company generates a Supplier Corrective and Preventive Action Report

formulating and implementing targeted risk management measures to contain or

The Company bolsters its supply chain digital management through real-time tracking and mitigate the risk. For suppliers presenting extreme risks it swiftly terminates cooperation.monitoring with particular emphasis on high- and medium-risk materials. Advanced data analysis The Company constantly monitors and tracks the implementation of supplier risk

and forecasting techniques are employed to promptly identify and resolve potential issues management measures periodically evaluating their effectiveness. To address supply

maintaining the stability of raw material supply. chain issues promptly a robust emergency response mechanism has been established to

The Company has established an intelligent WMS (Warehouse Management System) to enhance mitigate the potential impact of supply chain risks on business operations.Digital real-time inventory tracking and predictive analysis optimizing inventory strategies and ensuring

Management dynamic management to maintain optimal inventory levels and sufficient supply of critical materials.The Company has optimized its logistics network including streamlining transportation routes Indicators and Indicator and Target 2024 Achievement Status

rationalizing transportation methods and fostering robust partnerships with logistics providers to Targets

ensure supply chain efficiency. Target achieved

No instances of unfinished

Zero business interruptions

manufacturing tasks due to supply

The Company has developed differentiated emergency response and backup plans based on the chain disruptions.severity levels of production activities and the likelihood of supply delays ensuring rapid response

and recovery in emergencies. Target achievedIncoming material

Incoming material acceptance rate:

Contingency The Company has established and constantly refined a multi-site layout to provide mutual

acceptance rate ≥ 98.50%

99.03%

Planning backup facilities ensuring uninterrupted product supply in the event of natural disasters unusual

accidents or significant changes in the external environment. 100% of suppliers underwent

environmental quality and Target achieved

safety assessments.

31 32Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Innovation-Driven

Development

Empowering Life Through

Technology

R&D investment throughout the year

RMB546.68million

Yuwell health products covered by digital health services

500000u nits

First-pass yield

99.72%

33 34Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Empowering Health Through Innovation

Governance New quality productive forces with innovation at their core drive enterprises to explore novel

development paths and create fresh competitive advantages. Yuwell Medical has established

a scientific and efficient innovation and R&D project decision-making and management

system focusing on cultivating and applying new quality productive forces. The Board of

Directors oversees decisions related to innovation strategy ensuring that innovation aligns

with the Company's overall strategy. The management team delivers robust support for R&D Fluid Simulation Motor Drive Compressor R&D

projects through a review mechanism for innovation management optimizing resource Technology Platform Technology Platform Application Platform

allocation strategically. Meanwhile the R&D Department in collaboration with the Industrial

Design Center drives innovation implementation to ensure the Company's product

development and technical research remain advanced and forward-looking. Additionally

the Company has broken down functional barriers by establishing mechanisms for cross- New Material Advanced Anti-HCT Interference Micro-nano Laboratory

functional collaboration and resource sharing. This ensures close cooperation and efficient Technology Platform Technology Platform MEMS Process Platform

synergy among R&D marketing production and quality departments throughout the entire

process from R&D and production to market promotion actively responding to the industry

trend towards more intelligent precise cutting-edge and internationalized medical and

health industry chains.To ensure high-quality and efficient advancement of R&D innovation Yuwell Medical has Leveraging its profound R&D technological foundation Yuwell Medical focuses on multiple key areas such as respiratory therapy and

formulated comprehensive R&D innovation management systems. These include the Yuwell blood glucose management. The Company has achieved numerous important technological breakthroughs and obtained a series of

Medical R&D Management System Yuwell Medical R&D Cost Collection and Accounting internationally advanced proprietary achievements and patents. It possesses multiple national provincial and ministerial-level scientific

Management Methods Yuwell Medical Technology Achievements and Innovation Rewards research innovation platforms including the National Enterprise Technology Center National Industrial Design Center and National

and Discipline Methods and Yuwell Medical Industry-Academia-Research Collaboration Postdoctoral Scientific Research Workstation. The Company has repeatedly undertaken national and provincial key projects such as

Management Measures. These systems are developed in accordance with relevant domestic National Key R&D Programs National Major Technical Equipment Research Projects and Jiangsu Provincial Scientific and Technological

and international laws regulations technical guidelines industry norms and standards. Achievement Transformation Projects accelerating the transformation and industrialization of technological achievements.They clearly define requirements and standards for R&D project initiation management

project management production transfer management takeover management

achievement management and reward mechanisms. Leveraging cross-departmental IPD

(Integrated Product Development) process and PLM (Product Lifecycle Management) tools

the Company accelerates the cultivation and development of new quality productive forces Received Receive Received

enhancing its core industrial competitiveness.Strategy and Adhering to the vision of "leading industry development through innovation and 4 national scientific and 38 national scientific 10 provincial scientific and

enhancing the health of millions of families" Yuwell Medical follows the development technological innovation awards and technological innovation technological innovation awards

Management strategy of "reshaping medical devices through innovation". The Company consistently during the reporting period awards cumulatively during the reporting period

Mechanisms increases R&D investment in line with national strategic needs and development trends

in the medical and health field. It deepens global strategic layout and strengthens the

integration of industry academia and research. With R&D innovation as the core engine Receive Nanjing Yuyue Software Jiangsu Yuwell-POCT Biological

of enterprise development the Company promotes product and service innovation to Technology Co. Ltd. was recognized as Technology Co. Ltd. was recognized as

bring high-value medical solutions to society. 94 a High-Tech Enterprise a Specialized Refined Differentiatedand Innovative (SRDI) SME and a R&D Innovation System provincial

scientific and technological Jiangsu Provincial Private Science

Yuwell Medical focuses on building a global R&D network establishing multiple R&D centers innovation awards cumulatively and Technology Enterprise

and production bases in Germany Italy Shanghai Shenzhen Nanjing Suzhou Danyang

Xizang and other locations. The Company actively integrates R&D innovation resources

from domestic and international research institutions and universities constructing high- Shanghai Likang Disinfectant Shanghai Medical Instruments

level open scientific and technological innovation platforms and comprehensive innovation Hi-Tech Co. Ltd. was recognized as (Group) Co. Ltd. was recognized as

systems. It has established multiple internationally leading R&D technology platforms and an SRDI SME a High-Tech Enterprise and

conducts technological innovation research and key technology breakthroughs through a SRDI SME

diverse R&D strategies such as independent research and cooperative development to

achieve rapid iteration and optimization of product lines.

35 36Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Industry-Academia-Research Cooperation

Respiratory Therapy Yuwell Medical embraces the concept of open collaboration and has formulated the Industry-Academia-Research Collaboration

Management Measures. It partners with high-level third-party institutions to establish comprehensive innovation centers integrating

Yuwell Medical's oxygen concentrator technology has undergone three generations of technological upgrades amassing nearly R&D talent cultivation and business exploration accelerating technological innovation processes and nurturing professional talent for

100 patents. Significant breakthroughs have been achieved in low-noise technology with pressure stability improved to world- the industry. The Company has engaged in in-depth and effective industry-academia-research cooperation with numerous universities

class levels enabling customized treatment solutions. In 2024 the Company advanced the innovative development of variable research institutes and clinical hospitals including the Chinese Academy of Sciences Beijing Institute of Technology Nanjing University

frequency scroll oxygen concentrators achieving noise control between 29-34dB(A) and increasing compressor lifespan by 30%- Southeast University Sichuan University Peking Union Medical College Hospital and Jiangsu Provincial Hospital. These collaborations aim

50%. It successfully achieved mass production of 5L/10L scroll compressors and completed the construction of the first prototype to jointly address clinical challenges improve medical device diagnostic and treatment technologies and contribute to the high-quality

of an integrated respiratory oxygen machine offering new solutions for mobile medical scenarios such as chronic obstructive development of the healthcare industry.pulmonary disease and sleep apnea.Case National Key R&D Program Successfully Completed Marking a Major Breakthrough in

Continuous Glucose Monitoring

In 2024 Yuwell Medical's oxygen In September 2024 the National Key R&D Program titled "Development of a Wearable Continuous Glucose Monitoring System and Its

concentrator assembly workshop Application in Personalized Diabetes Health Management" successfully passed final acceptance. This project was led by Yuwell Medical and

was awarded the National Workers' jointly undertaken by more than ten institutions including the Institute of Microelectronics of the Chinese Academy of Sciences the Institute

Pioneer title. Yuwell's proprietary of Electronics of the Chinese Academy of Sciences the Suzhou Institute of Biomedical Engineering and Technology of the Chinese Academy of

adsorption technolog y noise Sciences and Peking Union Medical College Hospital. This represents a significant technological breakthrough for Yuwell Medical in diabetes

reduction technology and intelligent management particularly in real-time CGM systems. Through a combination of sensor optimization and algorithm refinement the project

oxygen control software are all at the improved data accuracy and stability while facilitating personalized health management via big data and AI integration.forefront of international standards. The project focused on the R&D of cutting-edge technologies for various forms of CGM including minimally invasive and implantable systems as

well as the establishment of personalized diabetes health management platforms. It offers diabetic patients a more convenient and accurate way to

monitor their blood glucose levels allowing both doctors and patients to adjust management strategies in real time. By minimizing user discomfort

and reducing infection rates the project demonstrates notable advantages—particularly in clinical efficacy comfort portability and safety.Talent Development and Innovation Culture

Yuwell Medical firmly believes that talent is the driving force behind technological innovation. The Company has established a

comprehensive talent lifecycle management system covering attraction nurturing retention and utilization. By integrating full-time

recruitment with flexible work arrangements it has built an innovative professional team of over 2200 members including more than 100

doctoral-level professionals and senior experts. Among the team members are over 30 high-level talents who have been recognized under

major national talent programs including recipients of the National Major Talent Project members of the Chinese Academy of Sciences'

Hundred Talents Program talents selected for Jiangsu Province's Entrepreneurship and Innovation Program and top-tier experts honored

under Zhenjiang's Jinshan Talent Program and the Danfeng Chaoyang Initiative.To constantly enhance the team's technical proficiency and innovative capabilities the Company prioritizes the cultivation of strategic R&D

management talent. It regularly organizes cross-functional R&D training and exchange sessions for employees. Through a mix of internal/external

Blood Glucose Monitoring training programs technical seminars and workshops the Company facilitates knowledge sharing and technical collaboration helping staff keep

pace with cutting-edge technologies and industry trends. Additionally the Company hires industry experts as R&D consultants to foster resource

Yuwell Medical has diversified its portfolio from traditional fingertip blood glucose meters (BGM) to continuous glucose monitoring sharing and complementary advantages driving upgrades in corporate technology and self-reliant innovation in core R&D areas.

(CGM) systems. Traditional BGM products have undergone continuous optimization in test strip design significantly enhancing Yuwell Medical has introduced innovative incentive mechanisms such as the R&D Quarterly Star Selection and implemented the

measurement accuracy and user experience suitable for daily monitoring and rapid testing in emergency situations. CGM Performance Commitment Management Measures and Technology Achievements and Innovation Rewards and Discipline Methods. These

systems provide accurate blood glucose monitoring data and more convenient precise solutions for diabetic patients through initiatives are designed to stimulate employees' enthusiasm for innovation and provide preferential resources for outstanding innovative

high-performance chips micro-sensors and advanced algorithms. The Company is accelerating its presence in the CGM field. In projects. In addition the Company drives cross-disciplinary technological innovation initiatives to nurture an innovation culture that

January 2025 the Anytime 4 series CGM product obtained the medical device registration certificate featuring disposable sensors supports experimentation and embraces failure. This approach not only unlocks employees' innovative potential but also sustains a

that can be used constantly for 15 days significantly improving accuracy and ease of use. In April 2025 the Anytime 5 series CGM dynamic environment of continuous innovation and exploration providing long-term momentum for the Company's development.product received the medical device registration certificate adopting an integrated structural design paired with the Company's

latest sensor and algorithm development platform further enhancing product accuracy and usability.Case

Yuwell Medical's blood glucose management strategy focuses on seamless integration between in-hospital and out-of-hospital Establishing a Qualification System to Accelerate R&D Talent Pipeline Development

care achieving a comprehensive solution. In-hospital management delivers real-time blood glucose data through the CGM

system enabling clinicians to develop personalized treatment plans and reduce the risk of abnormal blood glucose levels. Out-of- In 2024 Yuwell Medical's Innovation Institute implemented the Consumer Health R&D System Qualification Assessment project

hospital management harnesses the integration of portable home monitoring devices and mobile applications thereby enabling establishing professional talent qualification standards covering multiple technical domains including software hardware structure

patients to access real-time data conduct trend analyses and receive health recommendations. Collectively these solutions and registration. Through a rigorous standard development and certification process five core technical personnel were successfully

empower diabetic patients to adjust their lifestyles based on data-driven insights while offering data-sharing capabilities and identified and certified bringing the total number of certified individuals to 28. The qualification assessment scientifically promoted talent

reminder functions for family and friends further enhancing patient engagement in their care. development and strengthened the R&D expert pipeline providing solid talent support for product R&D and innovation thus driving the

Company's continuous technological innovation.

37 38Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Technology Ethics

Yuwell Medical adheres to the principle of "doing the right thing in the right way" complying with scientific and technological ethical norms Impact Risk Identifying and managing risks associated with innovation activities is crucial for

and advocating the cultivation of social responsibility values. Based on market and customer-oriented independent innovation with core maintaining a company's sustained competitiveness. To address various risks including

technologies as the focus and excellent quality as the guarantee the Company commits to not developing or using scientific technologies and Opportunity rapid technological advancements the impact of emerging technologies such as AI

that harm the natural environment life and health public safety and ethical morals. Through the development of innovative and applicable Management and big data new product development challenges potential loss of scientific talent

new products technologies and processes the Company aims to bring positive impacts to social progress. and policy and regulatory uncertainties Yuwell Medical has implemented a cross-

departmental IPD management process. This comprehensive approach ensures that

Regarding data processing the Company follows the principles of legality confidentiality and authorization ensuring that the collection risk management activities are seamlessly integrated throughout the entire product

storage and use of personal data are compliant while fully protecting the legitimate rights and interests of data subjects (for detailed development cycle.information please refer to the "Information Security and Privacy Protection" section of this report).The IPD process facilitates swift information exchange between departments and

In clinical research processes Yuwell Medical strictly adheres to standards such as the Declaration of Helsinki the Good Clinical Practice enables multi-perspective project reviews through collaboration among cross-

for Medical Devices and the ISO 14155 management system. All clinical research projects must undergo review by independent ethics functional teams in R&D marketing production procurement and after-sales service. By

committees and are subject to regular supervision and evaluation. Research subjects receive detailed information about the purpose of integrating market trend analysis technology forecasting and structured development

the study the procedures involved and any potential risks. Their written consent is obtained to ensure informed consent and voluntary workflows the Company systematically identifies risks across technical market supply

participation. Data collection and utilization adhere strictly to legal requirements ensuring the privacy and security of subjects' data. chain and financial domains. This iterative process constantly enriches the Company's

Throughout the research process a specialized mechanism monitors subjects' health and safety providing timely medical support to risk database enabling real-time monitoring and proactive mitigation of potential R&D

maintain the study's scientific and ethical integrity while safeguarding subject rights. challenges. To address the inherent uncertainties in technological development the

IPD process emphasizes a market-demand-driven approach ensuring that product

Intellectual Property Protection development closely aligns with customer needs. This strategy allows for continuous

refinement and optimization throughout the product development process reducing

Yuwell Medical strictly complies with the Patent Law of the People's Republic of China the Trademark Law of the People's Republic of the risk of R&D innovation deviation through iterative improvements and rapid responses

China the Copyright Law of the People's Republic of China the Anti-Unfair Competition Law of the People's Republic of China and to market changes. The IPD framework emphasizes continuous risk governance through

regulatory requirements in the medical device industry. The Company has developed a series of management measures including the regular reviews of risk registers and evaluations of mitigation strategy effectiveness.Intellectual Property Management System of Jiangsu Yuyue Medical Equipment & Supply Co. Ltd and set up a dedicated Intellectual Risk management plans are dynamically adjusted based on project milestones and

Property Management Department. By refining its IP management system conducting regular internal audits and external reviews external environmental shifts. To ensure real-time project visibility the Company has

and strengthening the management of R&D outputs the Company effectively prevents the loss of intangible assets while fostering instituted risk early warning mechanisms and escalation protocols. In collaborative

employees' enthusiasm for invention and creative innovation. In day-to-day operations the Company prioritizes cultivating employees' initiatives Yuwell Medical rigorously assesses partners' reputations and R&D capabilities

IP awareness through regular training sessions helping them understand the significance of intellectual property and how to apply and safeguarding corporate interests through robust confidentiality agreements and well-

protect it effectively in their work. To safeguard R&D achievements the Company has also developed an R&D Intellectual Property Risk defined contractual clauses that minimize collaboration risks.Assessment Form and implements rigorous IP protection strategies to mitigate risks of technology leakage and infringement.Indicators and Targets

While upholding its own intellectual property rights the Company fully respects the IP rights of others. It is committed to avoiding infringement

strengthening comprehensive patent risk management and strictly honoring confidentiality obligations in technical collaborations. Through

such practices the Company aims to maintain a fair competition environment and foster healthy market development. Indicator and Target 2024 Achievement Status

Target achieved

Ensure R&D investment R&D investment throughout the year:

to drive product upgrades RMB 546.68 million representing 7.23%

and business development of operating revenue.through technological

innovation. R&D personnel:1219 constituting

19.21% of the total workforce.

Target achieved

Increase the number of Maintain 1195 valid granted patents

patent applications and with 295 new patent applications filed

grants. during the year and 200 new patents

granted within the year.

39 40Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Commitment to Uphold Quality

Product Quality and Safety

Governance

Yuwell Medical adheres rigorously to high-standard governance principles ensuring that

every facet of product design manufacturing and distribution meets stringent safety and

quality benchmarks. The Company instills and deepens a culture of quality excellence across all

employees. Through a comprehensive framework of policies objectives systems concepts and Full Lifecycle Collaborative Management

standards it guides quality-driven behaviors and elevates organizational quality competence.Top management meticulously formulates and regularly updates the Company's quality Product-Sales Synergy Platform APS Planning and Execution Platform Intelligent WMS IPD Development Process

policy and objectives. The Quality Department staffed with dedicated professionals including Cloud Platform & Distribution System "One Item One Code" Platform "O2P&SG" Platform PLM R&D Management Platform

quality officers engineers and system specialists serves as the central hub for implementing Big Data Platform ERP Management System

monitoring and constantly improving the quality management system. This department

ensures compliance with quality standards at every production stage. Complementing this the Design and R&D Procurement Production Sales After-Sales

Company has established an integrated cross-departmental collaboration mechanism that

unites R&D procurement production sales and after-sales services. This creates a closed-loop

quality management system spanning the entire product lifecycle.Yuwell Medical remains unwavering in its commitment to producing high-quality highly Full Lifecycle Quality Management

reliable products. It complies with key regulations including the Product Quality Law of Customer Complaints and Feedback

the People's Republic of China the Regulations for the Supervision and Administration of

Medical Devices and the Good Manufacturing Practice for Medical Devices. Drawing from Digital and Intelligent Production and Sales System

internationally recognized quality management standards1 the Company has developed

the Yuwell Medical Quality Manual which establishes critical control elements for the quality

management system aimed at constantly enhancing product quality and safety. The Major Product Certifications2 Quality Management System Certifications

Company has implemented a series of quality management procedures including the Design

and Development Control Procedure Risk Management Control Procedure Medical Device EU Medical Device CE (Conformité Européene) Certification Yuwell Medical has obtained certifications for

UDI Control Procedure Non-conforming Product Control Procedure and Production and quality management systems including ISO 9001

Service Provision Control Procedure. These procedures form the foundation of high-standard Quality Management System ISO 13485 Medical

quality management and risk management systems that encompass the entire product 140 valid U.S. FDA (Food and Drug Administration) Certification Devices Quality Management System and the

lifecycle. In 2024 Yuwell Medical revised six key procedural documents including the Design

and Development Control Procedure and updated 375 inspection protocols. This extensive Chinese Class II and III Medical EU MDR (Medical Device Regulation) Certification

Medical Device Single Audit Program (MDSAP).update ensures that all product manufacturing processes adhere to the latest operational Device Registration Certificates

standards further elevating the overall quality of the Company's product offerings. KGMP (Korea Good Manufacturing Practice) Certification

Strategy and Management Mechanisms

Notes: 1. The Company adheres to a comprehensive set of national and international standards and regulations including the GB/T 42061-2022 which

Yuwell Medical's core operational strategy revolves around a user-centric full-chain

collaborative management approach. This strategy takes customer needs as its 167valid is equivalent to ISO 13485:2016 Medical devices - Quality management systems - Requirements for regulatory purposes the GB/T 19001-2016 which is equivalent to ISO 9001:2015 Quality management systems - Requirements the GB/T 42062-2022 which is equivalent to ISO 14971:2019 Medical devices -

foundation integrating these requirements and high-quality standards throughout the Chinese Class I Medical Device

entire business chain from product design and R&D to procurement production sales Application of risk management to medical devices the Good Manufacturing Practice for Medical Devices the EU Medical Devices Directive (MDD) the EU Filing Certificates

and after-sales service. The Company utilizes a comprehensive process mechanism In Vitro Diagnostic Medical Devices Directive (IVDD) the EU Medical Devices Regulation (MDR) the EU In Vitro Diagnostic Medical Devices Regulation (IVDR)

supported by management systems key performance indicators (KPIs) incentive 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

policies and team structures. Through this integrated framework it drives rigorous Regulation the Japanese Ministerial Ordinance No. 169 Ordinance on Standards for Manufacturing Control and Quality Control of Medical Devices and In

quality and risk management across the entire product lifecycle ensuring superior Vitro Diagnostic Reagents (MHLW Ministerial Ordinance No. 169) the Australian Therapeutic Goods (Medical Devices) Regulations 2002 the Korea Good

product quality while enabling prompt and flexible responses to customer needs. Manufacturing Practice (KGMP) Audit for Medical Devices the Canadian Medical Devices Regulations (SOR/98-282) and the Medical Device Single Audit

Customer feedback is effectively disseminated and actioned across all value chain

links thereby ensuring the delivery of high-quality products that meet customer Program (MDSAP) Audit Approach (MDSAP AU P0002.008).expectations. This strategy not only enhances market competitiveness but also lays a 2. The medical device product registration and filing certificate data encompass Yuwell Medical's parent company Suzhou Medical Appliance Factory

solid foundation for the Company's long-term sustainable growth. Furthermore Yuwell Suzhou Yuwell Medical Technology Co. Ltd. Primedic (Jiangsu) Medical Science and Technology Co. Ltd. Jiangsu Yuwell-POCT Biological Technology Co.Medical has achieved efficient and precise control of the production process through Ltd. 66 Vision Tech Co. Ltd. Xizang Yuwell Medical Investment Co. Ltd. Shanghai Medical Instruments Group and Chalice Solution PTE Ltd.intelligent manufacturing whole-process data management and automated testing

ensuring consistently high product quality standards.

4142

Customer Satisfaction

Customer NeedsJiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

End-to-End Lifecycle Quality Management

R&D and Design Procurement Production Sales Post-Market Quality Management

The Company has implemented a comprehensive end- The Company implements centralized The Company implements strict The Company has achieved data The Company has established long-

to-end design workflow based on a cross-departmental procurement and supply chain management quality control throughout the integration from production to term monitoring plans to constantly

IPD management process. This approach maximizes based on customer needs and actual production process with standard users establishing a comprehensive track product performance and

alignment with user needs creating a closed loop from production requirements. A rigorous supplier operating procedures (SOPs) cross-departmental collaborative safety after market launch. Adverse

requirements to design usability. A team of user experts selection mechanism and comprehensive formulated and executed. Multiple mechanism for optimizing user events are proactively collected

has been assembled to conduct in-depth research quality control system have been control points are established at experience. This includes multi- and reported effectively controlling

on user needs and pain point analysis. A closed- established to ensure the quality and different production stages and departmental user experience post-market risks of medical devices.loop experience research and usability verification stability of raw material supply. regular equipment maintenance and improvement meetings and service- The Quality Department evaluates

mechanism is employed to monitor design quality. Regular audits and quality reviews of calibration are performed to ensure side collaborative external meetings. customer feedback based on the

In the later stages of product development real users material suppliers are conducted and all aspects of the production process Feedback is extensively collected on principle of "report if suspicious"

are invited to conduct usability tests on functional and advanced quality inspection equipment meet predetermined quality standards. various dimensions of user experience immediately reporting according to

engineering prototypes in near-realistic scenarios. These and technologies are introduced to ensure A batch management system is comprehensively integrating and specified procedures once an event

test results significantly impact product certification and raw materials meet international quality and adopted to ensure transparency and deeply analyzing service-side product is suspected to be a medical device

market launch even holding veto power. Improvement safety standards. traceability in the production process. issue data. Detailed product feedback adverse event.requirements are proposed for identified issues analysis reports are generated

forming a closed loop for product design optimization A mid-warehouse inspection system has

The Company is advancing the Regular in-depth reviews of high-

been established and improved to proactively construction of intelligent production

monthly and quarterly with multiple risk and frequently occurring

and ensuring high design standards. departments collaboratively

manage supplier quality reducing rework workshops by continuously introducing adverse events are conducted with

PLM tools have been introduced to enhance collaboration advanced technologies and smart developing practical improvement risks caused by substandard processes the quality R&D production and

efficiency between R&D and other functional departments measures to enhance product quality and effectively improving supplier delivery equipment to enable fully automated technical departments. Following

improving the reliability and predictability of R&D production of key products. This and user experience from the source.timeliness while ensuring quality. effective analysis and evaluation

projects. Strict quality audits are executed at each key includes intelligent inspection Real-time monitoring of market CAPAs are put in place to reduce the

R&D milestone to ensure research quality at all project equipment and real-time production customer complaints and regulatory occurrence of adverse events each

stages. The R&D Center regularly conducts internal data analysis which constantly sampling information is conducted. year ensuring continuous safety

training and exchanges covering medical device quality improves lean management levels A post-warehouse re-inspection and effectiveness of products.system standards regulations and testing requirements effectively reduces operational procedure for medical devices is

integrating quality management concepts into every errors and quickly identifies areas for implemented involving sampling

aspect of the R&D process. improvement and optimization of inspections and comprehensive

quality control strategies ensuring performance tests on products to In 2024 Yuwell Medical

stability efficiency and high quality detect quality issues that may occur collaborated with the Zhenjiang

in the production process. during transportation or handling. This Adverse Drug Reaction

The Yuwell Wuliubao mobile effectively monitors product quality Monitoring Center in Jiangsu

application enables full-process consistency and prevents substandard Province to conduct adverse

visualization and tracking of products from entering medical use event monitoring for key

transportation precisely controlling ensuring product safety. medical device products

delivery quality and monitoring specifically compressed air

transportation progress in real time nebulizers. The Company

to ensure goods are delivered to was successfully selected as a

customers in optimal condition and medical device vigilance pilot

quantity. unit and was awarded the title

of Drug Regulatory Training

Base by the Jiangsu Medical

Products Administration.

43 44Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Quality Inspection

Yuwell Medical has established a comprehensive and highly efficient laboratory system. The Case

Product Safety Laboratory has been accredited by the China National Accreditation Service Product inspection pass rate FDA Regulations Training

for Conformity Assessment (CNAS) and has obtained several prestigious international

certifications including ISO 17025 Laboratory Certification CTF Laboratory Certification and In 2024 Yuwell Medical conducted comprehensive FDA regulations training across the entire organization. The training which

UL Witness Laboratory Certification. To keep its testing capabilities at an industry-leading utilized various learning methods such as theoretical explanations and case analyses focused on key topics including the QSR820

level the laboratory actively engages in training sessions seminars and interlaboratory 100% Quality System Regulation and the 21 CFR Part 11 Electronic Records. It involved key departments such as R&D production and

comparisons hosted by domestic and international third-party organizations. By investing in warehouse as well as relevant personnel from branches and subsidiaries with over 1300 participants. This FDA regulations

these rigorous activities the Company ensures strong assurance for the quality and safety of training is crucial for enhancing the Company's product quality and safety fostering a compliance culture and establishing a solid

its products. In addition to daily checks the Company's measuring instruments are routinely regulatory foundation for product exports to the U.S. market in 2025.sent to authorized metrology institutions for verification and calibration.The Company has implemented standardized procedures for incoming material inspection Supplier Quality Management

in-process inspection and finished product inspection. Each batch of products undergoes

thorough internal testing in strict compliance with medical device product quality standards. Yuwell Medical has established integrated management regulations such as the Supplier Management Control Procedure

This ensures rigorous quality control at every stage from raw material reception to product to ensure product quality and safety through closed-loop oversight. This system covers supplier audits incoming material

dispatch effectively preventing potential product safety and quality issues. Complementing inspections performance evaluations and continuous improvement measures. The Company performs rigorous audits of

internal testing the Product Safety Laboratory conducts safety electromagnetic potential suppliers' quality management systems prior to approval and obtains signed Quality Agreements from all suppliers.compatibility environmental and noise tests as per standard requirements. For products During new material introduction it closely supervises the trial production phase to ensure materials meet strict quality

with standard changes or new models samples are submitted to third-party testing benchmarks. Additionally the Company collects and analyzes monthly incoming material and inspection data from suppliers

institutions. Mass production only begins after product safety and reliability have been enhancing traceability and driving ongoing supplier performance improvements.thoroughly verified. In 2024 the Company achieved a 100% product inspection pass rate.The Company has established a robust supplier audit procedure developing and rigorously executing annual audit plans. These

audits cover multiple critical areas including quality management systems product design and development material sourcing

Product Safety Management manufacturing process control design change management non-conformance management improvement processes after-sales

Yuwell Medical strictly adheres to regulatory requirements including the Good Manufacturing service and hazardous substance control. Led by the Quality Department relevant teams conduct in-depth reviews and analyses of

Practice for Medical Devices and the Regulation of Medical Devices Recall Administration audit findings to drive issue resolution and re-verification. When significant gaps are identified the Company provides targeted quality

Product recall rate

and has established a comprehensive product recall system and mechanism. The training professional guidance and technical support to help suppliers gradually build up their quality management capabilities.throughout the year

Company has developed internal management procedures such as the Domestic Recall In cases where quality issues are identified in a supplier's products the Company issues a formal CAPA report in accordance with

Control Procedure and Foreign Medical Device Adverse Event Reporting and Recall Control 0% the CAPA Procedure Document. For suppliers demonstrating a willingness to improve the Company conducts on-site visits and Procedure. To ensure the efficiency and scientific nature of product recall management develops tailored improvement plans. These plans address specific needs such as refining quality management systems enhancing regular mock recalls are conducted. During the reporting period Yuwell Medical maintained production process control and optimizing documentation and procedures. For suppliers experiencing frequent or significant

stringent control over product quality resulting in a 0% product recall rate. quality issues dedicated supplier quality engineers are assigned to develop and closely monitor specialized quality improvement

The Company complies with relevant national and local regulations including the Measures plans ensuring effective resolution within specified timeframes. During the reporting period the Company conducted on-site

for the Management of the Monitoring and Reevaluation of Medical Device Adverse Events. quality audits of 65 suppliers with no major quality issues identified.It has implemented the Medical Device Adverse Event Monitoring Management System and

Protocol for Active Reporting of Adverse Event to actively collect and report adverse events.Customer feedback is evaluated based on the principle of "report if suspicious" promptly

and effectively managing post-market risks of medical devices. Any event suspected to be a

medical device adverse event is reported as such.Company-wide Quality Culture Development

To implement its quality policy Yuwell Medical promotes company-wide participation

in quality management. Through the establishment of a diverse quality course training

system it comprehensively strengthens every employee's quality awareness and

knowledge base. The Company develops and strictly implements annual quality training

plans for all employees covering various aspects including medical device quality system

standards interpretation regulations training and specialized quality training. In 2024

key areas of the Company's quality training included medical device quality-related

regulations and standards inspection procedures product knowledge and quality UDI

(Unique Device Identification) knowledge and product labeling. This ensures that every

employee masters the latest quality management practices and product knowledge.

45 46Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Impact Risk and Opportunity Management Digital and Intelligent Transformation

Yuwell Medical fully recognizes the critical importance of implementing effective quality risk management to safeguard the safety and efficacy

of medical devices. The Company's comprehensive risk assessment process systematically identifies a wide range of potential risks including Yuwell Medical is accelerating the implementation of a comprehensive forward-looking digital strategy. With a focus on two key

design and R&D risks (e.g. design flaws technological obsolescence and new technology application challenges) raw material and supplier dimensions Digital Yuwell and Digital Healthcare the Company has effectively integrated the front and back ends of production

risks production and process risks (e.g. unstable production processes and human errors) and regulatory compliance risks. These risks are lines and established full-chain digital capabilities from product R&D and manufacturing to end-user services. By adopting a user-

integrated into a holistic risk management framework. By adhering to quality management standards such as ISO 14971 and ISO 13485 the centric perspective the Company identifies fundamental product requirements designs for the entire product lifecycle and

Company keeps up with the latest regulatory requirements and technological developments. It has developed a comprehensive quality risk delivers more competitive products and services.management system that proactively detects and mitigates potential quality risks across the entire product lifecycle. Additionally the Company

fosters a robust quality culture to ensure efficient cross-departmental collaboration. To address varying levels of quality risks a tiered system of

documentation has been established ensuring that each risk category is appropriately managed within defined timelines. Digital Yuwell Digital Healthcare

To guarantee the efficacy of its quality system Yuwell Medical conducts regular internal and external audits across all business lines. The

Company performs annual internal audits of its quality management system conducting thorough reviews of all products to ensure

compliance with applicable laws regulations and accreditation standards. Each year it actively engages third-party organizations and subjects

itself to audits by domestic and international regulatory bodies and partners. Through such initiatives the Company constantly strengthens the

integrity and effectiveness of its quality management system. In 2024 Yuwell Medical's quality management system operated at exceptionally Digital

high standards undergoing a total of 48 quality management system audits from government regulatory agencies and external auditing bodies. Digital Supply Digital Digital Digital Digital Digital Intelligent

These comprehensive audits included one unannounced inspection one audit by the drug administration department two supervisory audits Chain Production Operations Marketing R&D Products Services Functions

by the drug administration department 13 customer audits 20 on-site product registration assessments and 11 registration system certification

audits. Notably all audit results showed no serious deficiencies achieving a 100% pass rate. Furthermore the Company conducted 78 internal

quality audits covering the entire product lifecycle promptly implementing improvements to optimize production quality control processes. IT (Business Digitalization) DT (Digital Empowerment) BT (Digital Innovation)

The Company regularly reviews and refines its quality management system. In the event of production non-conformities it promptly initiates

corrective and preventive actions (CAPA) and undertakes in-depth root cause analysis (RCA) to identify and resolve underlying issues. By doing

so the Company sustains stable and reliable product manufacturing processes and procedures. Moreover it has strengthened emergency Intelligent IoT devices cover over 80% of operations AI tools resolve 70% of user inquiries

event management protocols to effectively address potential production disruptions and ensure uninterrupted business operations.Intelligent scheduling increases production efficiency by 20% Intelligent customer service improves user satisfaction by 20%

Intelligent sales forecasting reduces stockouts by 30%

Indicators and Targets

Yuwell Medical has established smart factories that integrate APS (Advanced Planning and Scheduling) ERP (Enterprise Resource Planning)

Indicator and Target 2024 Achievement Status PLM (Product Lifecycle Management) MES (Manufacturing Execution System) and WMS (Warehouse Management System). This creates

an intelligent manufacturing ecosystem centered on data with deep interaction across multiple platforms and systems. The result is smart

flexible production lines capable of automated production automatic data collection and automated fault detection and intervention. The

Target achieved Company employs cutting-edge technologies including machine vision for welding calibration dynamic inspection multi-sensor filling

First-pass yield ≥ 99.00%

First-pass yield: 99.72% inspection and intelligent logistics to complete the hardware construction and digital upgrade of flexible production lines and stereoscopic

warehouses. Leveraging sensors PLCs (Programmable Logic Controllers) SCADA (Supervisory Control and Data Acquisition) and other

technologies the Company enables seamless data interaction between physical and virtual workshops. This has led to the construction of

100% pass rate for product sampling inspections Target achieved six types of flexible production lines for products such as blood pressure monitors and oxygen concentrators as well as AGV (Automated

Guided Vehicle) logistics systems to support small-batch production of multiple product varieties. Through deep integration with MES

the Company achieves manufacturing digitalization and visualization ensuring full-chain quality traceability. This data-driven approach

Target achieved constantly enhances lean management practices resulting in more competitive product delivery and superior product quality.

100% coverage rate of quality-related personnel Quality training sessions conducted throughout the year: 89 recording

training 4013 attendances. Accumulated duration of quality training: 195

hours achieving 100% coverage of quality-related personnel. Jiangsu Likang Pharmaceutical Technology Yuwell Medical's parent

Co. Ltd. was recognized as company was selected as

a Smart Manufacturing a case study for leaders in

Zero major quality incidents Target achieved Demonstration Workshop in digital transformation in

Jiangsu Province China's light industry

47 48Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Automated Assembly Line for Automated Assembly Line for By leveraging advanced data analysis platforms the Company conducts real-time monitoring of all

Electronic Blood Pressure Monitors Blood Glucose Meters service channels including customer service hotlines and online chats. This allows us to instantly

An automated production model has been A fully automated production line for blood glucose detect and promptly address any anomalies in customer feedback.implemented led by the main assembly line with meters has been developed through flexible feeding

centralized efficient production on sub-assembly and automatic assembly of irregular materials CCD Quality The Company meticulously monitors and evaluates the implementation and effectiveness of

lines. Multiple technological innovations help achieve (Charge-Coupled Device) automatic detection and Management improvement measures comparing key data indicators to verify their efficacy and adjust existing

a breakthrough from scratch in the automation of extensive use of robotic operations. services accordingly.electronic blood pressure monitor production. An automated quality scoring system has been implemented to assess each customer service

interaction using data-driven insights to precisely identify areas for improvement and constantly

enhance service quality.Automated Assembly Intelligent Stereoscopic

Line for Nebulizers Warehouses

Various robotic technologies have been utilized These warehouses employ a digital smart storage The Company has implemented a standardized real-time risk reporting process for issues

supplemented by CCD vision-guided intelligent and logistics system achieving interconnectivity affecting service quality. These issues are immediately documented and addressed using

assembly to create a flexible automated production of data across human flow material flow vehicle project management tools to track resolution progress. Once thoroughly resolved solutions are Closed-Loop

line with multiple workstations and human-machine flow information flow engineering flow and incorporated into the knowledge base. Management

collaboration. product flow. Through regular weekly meetings monthly service quality reviews and quarterly strategic

planning sessions the Company promptly addresses issues and adjusts its service strategies based

Professional Services on market dynamics to deliver an exceptional service experience to customers.Yuwell Medical upholds a customer-centric approach The Company has developed a comprehensive training system that accurately identifies specific

prioritizing customer needs to establish a comprehensive training needs through in-depth research. This system incorporates external professional medical Professional

service ecosystem encompassing pre-sale consultations in- resources and covers various aspects including technical skills soft skills and tool proficiency. Training

sale support and after-sale guarantees. This system enables Ranked among the Won the 2024 Smart Star Training effectiveness is evaluated through participant feedback and course content and delivery

rapid response and efficient resolution of customer inquiries. Top 100 Chinese Award - Yuwell JD Self- methods are constantly refined to ensure service professionalism.By constantly refining service offerings and models the Service Brands in 2024 operated Flagship Store

Company elevates the customer experience and satisfaction

throughout the entire product lifecycle.Received the 2024 Achieved the 2024 Annual User Care

Proactive Service Annual Innovative Champion in Consultation

Service Driver Services - Yuwell JD Self- To meet the increasingly personalized service needs of different users and enhance brand satisfaction and loyalty Yuwell Medical The Company has established the Yuwell Medical Service provides a range of caring services beyond standard product support.Process and Standards creating an omni-channel customer Award operated Flagship Store

service system with multi-channel front-end access mid-

end collaboration platform and back-end support platform.A product insight and operational analysis platform has been We offer online guidance and one-on-one video instructions for proper product use (applicable to Passed the GB/T

developed to achieve close connections between brands users certain products) and advise users on correct product maintenance to extend the product lifespan. 27922-2011 Five-Star

and products. Through data analysis the Company constructs After-sales Service For special groups such as elderly individuals living alone persons with disabilities and economically

360-degree product profiles to provide intelligent rapid and high- Capability Certification disadvantaged users we provide door-to-door services waive shipping and repair fees offer

quality proactive services. Additionally it places great emphasis complimentary accessories and provide loaner devices to accommodate diverse user needs.on constantly optimizing service strategies and quality to deliver Personalized

an exceptional service experience to customers. Services We are integrating more advanced technologies (e.g. AI customer service and intelligent

recommendation systems) establishing a membership ecosystem and upgrading our membership

applet to provide more personalized and attentive services.The Company provides customers with diverse communication methods including

telephone text and video interactions through various channels such as 400 hotline WeChat

official account mobile application enterprise WeChat and e-commerce platform stores. This

Multi-Channel approach enables real-time engagement with clients. We conduct regular follow-ups to monitor users' health conditions.Approach

Through the ongoing expansion of its after-sales service network the Company has We offer online and offline user education and training including recorded courses visual

established over 400 service terminals covering provincial capitals and key cities ensuring instruction tutorials knowledge cards and short videos to address the health needs of various

localized support for customers. Proactive Care demographic groups.

49 50Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Complaint Response Customer Satisfaction Management

Yuwell Medical has developed the Yuwell Medical Complaint Management Regulation and consistently refines its user service system Yuwell Medical consistently prioritizes listening to customer feedback. Through ongoing customer satisfaction surveys it gathers

and multiple communication channels. The Company has improved its processes for responding to handling tracking and supervising authentic voices and evaluations from clients comprehensively capturing their feedback and suggestions to constantly enhance

customer feedback ensuring that all issues are addressed in a timely and efficient manner. Based on feedback insights CAPAs are product and service quality. In 2024 the Company implemented multiple improvement measures in response to shortcomings

formulated and implemented as necessary. In addition the Company has integrated AI robots across all channels to provide real-time high- identified in satisfaction surveys. These included revising five service quality control specification details and conducting seven

quality responses with human-machine collaboration swiftly addressing customer issues. professional training sessions to strengthen customer service representatives' understanding of quality control requirements and

service boundaries.Yuwell Medical has adopted granular management of its customer support ecosystem clearly defining the roles of AI-powered assistants

and human agents. This strategic division of labor enables AI to efficiently handle routine inquiries while human experts focus on complex

problem-solving personalized services and emotional support. Consequently the Company has achieved a higher first-contact resolution

rate and elevated customer satisfaction. To streamline operations the Company has deployed RPA-powered digital assistants and an

iterative automated work order platform. These technologies reduce manual response times optimize e-commerce workflows and B2B customer satisfaction rate B2C customer satisfaction rate

significantly enhance the shopping experience. By integrating online support with core business processes the Company ensures rapid

issue resolution and real-time updates on after-sales status. Collaborating closely with platform partners we address customer pain points

and propose tailored improvement solutions aiming to elevate overall platform service quality. We have also simplified after-sales scenarios

and established dedicated processes boosting the efficiency and quality of post-purchase support. Additionally we proactively interpret 97.2% 97.7%

new platform regulations organize internal training and strengthen frontline capabilities to sustain service excellence.Yuwell Medical's Complaint Handling Process

Responsible Marketing

Reception Recording Initial Assessment Yuwell Medical strictly adheres to the Advertising Law of the People's Republic of China and other relevant laws and regulations in

Complaints are received through User feedback information is Complaints undergo preliminary its marketing and promotional activities. The Company has established responsible marketing-related systems such as the Front-

customer service platforms meticulously collected and assessment and initial information is end Marketing Service Standards and Specifications. These systems translate responsibility requirements and business insights into

marketing personnel at after-sales documented. provided to users. departmental norms operational standards and management guidelines. The Company has clearly defined mechanisms for delivering

outlets government regulatory product information and promotional content ensuring that marketing teams adhere to ethical principles and operational standards in

departments and public channels. sales and promotions and promote products in an ethical evidence-based and objective manner. Moreover the Company employs AI-

driven tools like knowledge bases and chatbot language databases to address all business scenarios enhancing the comprehensiveness

Feedback Correction of Deviations Investigation and Evaluation effectiveness and timeliness of information dissemination. This ensures efficient and accurate communication across all marketing

touchpoints. The aforementioned tools are regularly updated and upgraded alongside intensive training for marketing personnel

Investigation results and Deviation investigations Relevant departments are mobilized to to guarantee that consumers receive authentic and reliable information. Additionally the Company has established internal audit

resolution strategies are are initiated and CAPAs are investigate and assess risks identifying processes and supervisory confirmation mechanisms based on files such as the Document Standardization Guidelines to ensure that all

communicated back to users. implemented. root causes and existing issues. externally published marketing materials undergo rigorous review and comply with legal regulations and internal standards.

51 52Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Access to Yuwell Medical adheres to the principle of "leading industry development through Human-Centric and Inclusive Designinnovation and enhancing the health of millions of families". Through a series

Quality of initiatives such as intensifying public health education and regional market Yuwell Medical emphasizes product usability and comfort implementing human-centric and inclusive design with a focus on users promotion accelerating the design of high-quality inclusive products and the particularly addressing the needs of elderly users special needs groups and family health management convenience to ensure products

Healthcare development of intelligent and user-friendly products and enhancing product are simple to use and accessible. Moreover the Company invests dedicated funds to strengthen core capabilities and accelerate the R&D

affordability the Company aims to make quality healthcare more accessible. of digital and intelligent products launching smart and user-friendly products that lower usage barriers. The aim is to realize its vision of

enhancing the health of millions of families with higher quality more cost-effective and sustainable products.Product Accessibility Expanding Product Reach

In terms of global business layout Yuwell Medical has established multiple R&D Family-Oriented Design Serving Users with Special Needs

centers and production bases in Germany Italy Shanghai Shenzhen Nanjing Suzhou

Danyang Xizang and other locations. It has also set up branches subsidiaries and

offices in Thailand Germany the United States and other countries. Through diversified Multi-group usage: The Yuwell Nebulizer 405M The Yuwell All-in-One Smart Fetal Monitor employs

business deployment and continuous international expansion the Company effectively supports three-level flow adjustment catering to digital filtering and noise reduction technology with

serves global healthcare needs. As of the end of the reporting period Yuwell products users of different age groups. its ultrasound output power strictly controlled at

cover more than 100 countries and regions worldwide. extremely low levels according to industry standards

Lightweight design and comfort: The Yuwell Arm- reducing potential impact on the fetus.Case type Blood Pressure Monitor YE630CR features Yuwell Medical Signs Strategic Cooperation Memorandum a minimalist all-in-one design supporting one- Yuwell Medical incorporates voice broadcast and

with Vietnam's FPT Group handed operation and mobile application backlight design in some products to meet the

recording making it suitable for family use. needs of visually impaired users.In December 2024 Yuwell Medical signed a strategic cooperation memorandum

with Vietnam's FPT Group in Ho Chi Minh City to jointly promote the development of The Yuwell Primedic AED (Automated External

continuous glucose monitoring (CGM) technology in the ASEAN market. FPT Group is Defibrillator) features voice and animation-guided

a leading technology enterprise in Vietnam. In the future both parties will collaborate first aid functions as well as an integrated CPR

comprehensively on CGM technology including technological upgrades brand (Cardiopulmonary Resuscitation) and electrode pad

promotion business model innovation and international market expansion to provide design which significantly improves the success rate

quality medical services to the ASEAN market and bring more advanced medical of emergency response and enables quick action

technology to patients in the ASEAN region. within the "Golden 4 Minutes".Supporting Older Adults

Large screen and voice assistance: The Yuwell Arm- The Home Multiple Vital Signs Monitor and

type Blood Pressure Monitor YE630AR features a 405M Nebulizer have been awarded the IF

backlit large screen for clear display of blood pressure Design Award.and pulse data under any lighting conditions along Several Yuwell products have received the

with full voice broadcast functionality allowing Red Dot Design Award including the Home

elderly users to easily complete measurements. Multiple Vital Signs Monitor YE990 Tunnel-

Portable design: The Yuwell Oxygen Concentrator Type Blood Pressure Monitor Anytime CT3

9F-5ZW adopts a suitcase-like design with wheels CGM System Primedic M600 AED 630CR Arm-

at the bottom making it easy for elderly users to Type Blood Pressure Monitor and Hospital

move around at home. Multiple Vital Signs Monitor.Remote monitoring: The Yuwell Anytime CT3

Blood Glucose Meter supports data sharing with

family members allowing relatives to monitor the In total7 products have garnered8

elderly's blood glucose levels in real time through international design awards

a mobile application enhancing the convenience

of health management.

53 54Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Enhancing Product Affordability Smart Healthcare

Yuwell Medical adheres to the World Health Organization's guidelines for fair pricing by implementing a value-based transparent

product pricing strategy. The Company is actively exploring more sustainable pricing models that maintain product quality while Yuwell Medical consistently pushes the boundaries of smart healthcare seamlessly integrating traditional medical products

prioritizing affordability especially in underdeveloped regions. Through diverse market research it aims to develop pricing models and services with cutting-edge information technology. The Company is developing an open empowerment platform to create

that ensure proper policy implementation price transparency and product accessibility. The goal is to make innovative products comprehensive health data records for individuals and families. This platform enables partners to cultivate a digital medical

available to a broader population in less-developed areas. service ecosystem striving to provide innovative high-quality and accessible medical services to an ever-growing population.Caring for Major and Rare Diseases Digital Health Subscription to General Health Products and Services (Exercise Diet Mental Health Content)

Innovation

Yuwell Medical is dedicated to addressing

the treatment needs of both major Medical Service Specialized Rehabilitation

Hospitals Medical Health Service and Elderly Care OTC diseases and rare disorders. The Company Institutions Institutions Institutions Institutions Pharmacies

constantly deepens its expertise in chronic

conditions such as diabetes respiratory Personal (Family)

care and emergency medicine. Its Yuwell's groundbreaking atrial Digital Health Empowering Medical Care Medical AI Health Big Data

ongoing efforts result in the introduction fibrillation blood pressure monitor Records Auxiliary Automation Service-oriented

of products and wearable devices that the S67XR seamlessly integrates

offer broader applicability enhanced Government Regulation and Data Authorizationblood pressure measurement Data Collection

intelligence and improved precision. with atrial fibrillation monitoring. and Management Personal (Family) Health Records: Personal Physiological Indicators;

These innovations provide comprehensive Utilizing cutting-edge algorithms Personal (Non-medical) Health Indicators

health management solutions for and sensor technology it accurately

healthcare professionals and patients detects abnormal heartbeat signals

alike. Furthermore the Company regularly enabling users to promptly identify

conducts professional training on medical and address the potential health risk

equipment usage and has established of atrial fibrillation.reward funds to support academic Home Testing and

research by primary care physicians Treatment

thereby enhancing primary healthcare

service capabilities."Thanks to Yuwell Medical's Spirit-3 I'm

thrilled to be back at my newsstand

chatting with people once again."

An 80-year-old retired nurse in Bulgaria

has long operated a local newsstand

extending her passion for serving others

from her healthcare career to daily

life. As age-related health challenges

made it difficult for her to maintain her

routine work she consulted her doctor

and following medical advice chose

Yuwell Medical's Spirit-3 portable oxygen

concentrator. The product's lightweight

portable and user-friendly features

perfectly aligned with her needs. With

six hours of continuous oxygen supply

daily she has been able to return to her

beloved newsstand once again greeting

each familiar customer with her warm

welcoming smile.

5556

Upward Openness Downward EmpowermentJiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Digital Health Services

Yuwell Medical has established an IoMT (Internet of Medical Things) Blood Glucose Segment Respirator Segment

management platform for medical devices constantly refining multi-product

digital solutions to provide comprehensive convenient and efficient health Yuwell health products covered by

management solutions. The Company has created an innovative integrated A new version of the Anytime mobile application has User-end applets and an intelligent respiratory digital health services

health management platform for medical devices advancing digital health been launched attracting over 60000 new registered cockpit have been introduced to enhance user

services comprehensively in three stages: front-end mid-end and back-end. By users. A smart management system has been established experience and management decision-making

persistently expanding the range of digital medical device products broadening 500000 and implemented in 54 hospitals supporting integrated efficiency achieving software compatibility across the scope of digital health services and forming a complete digital closed loop units cross-product in-hospital operations. all product categories in hospital scenarios.the Company creates smarter more convenient and highly efficient health

management solutions.Smart Healthcare Ecosystem

The Company actively engages with mainstream e-commerce platforms online and interacts directly with users

through social media applets and other digital tools. Offline it collaborates with pharmacies medical institutions Yuwell Medical is committed to building a massive health ecosystem by integrating home healthcare clinical medical care and

and other channels to provide easily accessible products and services. Through this multi-channel approach both Internet healthcare resources. This approach aims to create a digital medical service ecosystem that empowers partners across

Front-end online and offline we precisely target users and deliver personalized health management solutions. multiple scenarios providing users with comprehensive health management services from prevention to rehabilitation.To construct a robust smart healthcare ecosystem Yuwell Medical constantly prioritizes the security regulatory compliance

stability and consistency of digital medical product data. The Company strictly adheres to relevant laws and regulations including

The Company has developed an integrated health management platform for medical devices based on IoT big data the Personal Information Protection Law of the People's Republic of China. It actively participates in the formulation of industry

and cloud computing technologies. Through the deployment of smart hardware we achieve data collection analysis standards for medical data security and promotes the standardization securitization and efficient utilization of medical data. For

and the formulation and implementation of personalized solutions. In 2024 the platform was expanded to include new detailed information please refer to the "Information Security and Privacy Protection" section of this report.products such as 4G blood glucose meters nebulizers AEDs and third-generation respirators.Mid-end The Company promotes synergy across multiple channels including the family health cloud platform the Yuwell Health

Manager mobile application and the WeChat official account. Users can monitor and track their health indicators in real

time via mobile devices access personalized health intervention plans and visualized medical reports and interact with Extending Out-of-Hospital Medical Ecosystem to Form a Service Loop

medical professionals through telemedicine consultation features facilitating personalized health management. By aggregating data from home medical devices we establish personal health records for users

connecting with large public hospitals community hospitals and Internet hospitals. This enables remote

Empowering diagnosis health monitoring and remote intervention for chronic disease patients. The combination of

The Company has established intelligent manufacturing bases that integrate R&D design production Hospitals data and internet healthcare allows hospitals to treat diseases more efficiently and at lower costs while

management and sales processes. This approach achieves full-process intelligent management ensuring enabling patients to achieve long-term home health intervention and chronic disease management.Back-end superior product quality and rapid service response times.Case Remote Chronic Disease Management

Serving the New "Medical-Pharmaceutical-Service" Loop

Remote chronic disease management services represent a key strategic initiative for Yuwell Medical in the "Internet + healthcare" domain. This Through an open data platform we collaborate with OTC pharmacies to build personal/family health

approach aims to deliver comprehensive home health management solutions for patients with chronic conditions through digital technology records integrating patients' medication and device usage to provide periodic targeted customized

intelligent hardware and big data analysis. The ultimate goal is to enhance users' ability to manage their own and their family members' health Empowering

Pharmacies services. This forms a "medication + health service + wellness service" combination model enhancing status while improving the efficiency of medical services. pharmacy service capabilities.The Company has developed a remote chronic disease management platform centered on Smart Yuwell. This platform synchronizes chronic

disease data between devices and the cloud through multiple channels including a family health cloud platform mobile applications and the

WeChat official account. Users can monitor and manage their health data in real-time via smartphones and interact remotely with physicians.The service also incorporates intelligent hardware devices such as smart glucose meters electronic blood pressure monitors and respirators

facilitating immediate access and analysis for both doctors and patients. This enables prompt identification of potential issues and the Serving Health Intervention and Management

provision of customized health management plans. Yuwell Medical's remote chronic disease management service not only enhances patient

experience but also improves the efficiency and accuracy of medical services through intelligent and digital technologies contributing to the Empowering Through an open data platform we assist community hospitals in establishing personal/family health

implementation of the Healthy China strategy. In 2024 the Yuwell Health Manager platform adopted advanced AI algorithms and big data records for users and achieve data interconnectivity with relevant tiered diagnosis and treatment General

analysis techniques to further enhance health data processing capabilities construct precise personal health profiles and provide personalized hospitals. This promotes a closed loop for community hospitals to intervene and manage chronic disease Healthcare

health management strategies for users. The platform also optimized service processes offering remote medical follow-up functions to achieve residents in their covered areas.Institutions

early intervention and continuous management of chronic diseases effectively improving disease prevention and control outcomes.

57 58Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

People-Centered Approach

Safeguarding Lives and

Empowering People

Average training hours per employee during the year

35.28

Proportion of female employees in middle and senior management

31.25%

Total charitable contributions

RMB1.47million

59 60Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Human Capital Development

Governance Yuwell Medical prioritizes human capital as the primary driver of sustainable corporate Talent Recruitment and Retention

development. The Company consistently enhances its human resource management

system to ensure alignment with overall strategic objectives and efficient execution. The The Company conducts regular organizational and talent assessments aligned with its strategic and business planning and formulates mid-

Board of Directors has established a Remuneration and Evaluation Committee chaired by to long-term human resources plans to proactively plan for talent deployment. It utilizes diverse channels to attract a wide range of talent.an independent director. This committee is tasked with formulating assessment standards External talent acquisition channels include internship programs campus recruitment and social recruitment collaborating with renowned

and compensation policies for directors and managers to motivate and retain key talent. job websites regional platforms and overseas recruitment agencies to enhance recruitment efficiency and meet the Company's strategic

The Company has established a Human Resources Center responsible for developing and talent needs for rapid development. Internally the Company advances strategic talent reserve initiatives through mechanisms such as

and implementing HR strategies organizational structure key talent management employee referrals internal job postings and the rehiring of former employees. It adheres to the principles of comprehensive evaluation

and compensation and benefits. This center collaborates closely with various business fairness and impartiality and excellence in both moral integrity and professional competence throughout its recruitment practices. With

departments to ensure company-wide implementation of HR policies. Branches and these efforts the Company is committed to building a professional international and high-performing talent team.subsidiaries have established their own HR departments to align organizational talent with

business plans and constantly enhance organizational capabilities and human capital value.Yuwell Medical has developed and constantly refined a comprehensive series of HR As a strategic talent pool for the Company's future management trainees campus recruitment was

management systems. These include basic HR management policies and specialized steadily advanced in 2024 through well-organized programs targeting fresh graduates and interns.policies for organizational management talent management professional training and The Company proactively engaged with over 40 universities including Nanjing University Southeast

promotion performance management and compensation and benefits. These systems University and China Pharmaceutical University conducting both online and offline campus recruitment

help align workforce planning with strategic and business objectives build strategic talent Campus to lay the foundation for its talent pipeline. In 2024 the Company recruited over 130 fresh graduates and

pools and proactively develop employees' professional capabilities. By doing so each Recruitment 200 interns with 52 individuals entering the 2024 management trainee development program.employee can leverage their strengths to deliver value fostering mutual growth between

employees and the Company.The Company actively engages in industry-academia-research collaborations with universities and research

Strategy and Yuwell Medical implements a consumer-oriented digitalized and youth-focused talent institutes establishing student internship bases and technology research institutes with Shanghai Jiao

development strategy. The Company adheres to an open and fair process for identifying Tong University Beijing Institute of Technology Southeast University Nanjing University of Posts and

Management and selecting talent promoting a development approach that combines internal Joint Telecommunications and Jiangsu University. These collaborations focus on talent cultivation technological

Mechanisms cultivation and external recruitment. It formulates scientific and reasonable talent Cultivation innovation and industrial upgrading embracing cutting-edge advancements through talent exchange.management models aligned with strategic goals offering competitive compensation

and benefits professional training and promotion opportunities to achieve high-quality

development through a high-caliber talent pool.In line with business expansion the Company actively cultivates a positive employer brand focusing

Since 2020 the Company has conducted annual organizational climate surveys on attracting R&D and overseas sales professionals with extensive medical backgrounds in specialized

comprehensively gauging employees' genuine feedback and concerns across sectors. It strengthens partnerships with external professional recruitment agencies to attract top

six dimensions: basic needs supervisory support authority and processes team Talent industry talent leveraging talent suppliers internet recruitment platforms (Liepin 51job LinkedIn

collaboration cultural identity and learning and development. In 2024 the satisfaction Recruitment etc.) and social media (Maimai Xiaohongshu etc.) to enhance its employer brand influence.survey questionnaire achieved a response rate of 88.5% with an employee satisfaction

rate of 81.9%. Through years of internal feedback and improvement of management

practices at various levels the Company has gradually enhanced employee experience

promoting mutual growth of the organization and its workforce. Yuwell Medical's global manufacturing base is located in the Danyang region. The Company actively

strengthens local employer brand building swiftly and accurately meeting its recruitment needs

for general workers through regional talent networks and grassroots outreach programs ensuring

Regional localized and efficient human resource allocation and supplementation.Channels

The parent company of Yuwell Medical has received the following awards:

Outstanding Human Resource Management Award - Employer of Excellence The Company implements employee referral internal job competition and employee rehiring mechanisms

encouraging internal staff to recommend talented individuals and providing opportunities for employees to

Employer of Choice of the Year Award showcase their abilities. This approach allows more morally and professionally excellent employees to stand

Internal

Excellence in Talent Acquisition and Development Award out constantly fostering outstanding talent within the organization capable of fulfilling diverse roles.Channels

61 62Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Employee Training

Employee Training System

Total number of employees New hires during the reporting period

Yuwell Medical has established the Yuwell Learning and

6346 2368 Development Center based on its consumer-oriented digitalized and youth-focused talent development strategy. The Company has implemented learning maps and formulated a series of policies

including the High-Potential Talent Development Management

Measures to constantly enhance its talent pool's competitiveness.Proportion of female employees among new Through close collaboration with various business units and

Newly recruited fresh graduates hires during the reporting period leveraging online learning platforms it has developed comprehensive

systems for professional managerial and new employee (both

146 34.71% social recruits and management trainees) development that align with future strategic needs. These systems leverage comprehensive training and hands-on learning approaches combined with diverse

learning modalities to build employees' professional and leadership

capabilities. To drive business growth and build a competitive talent

pool the Company annually launches targeted talent development

programs for critical functions like management R&D and sales.These initiatives focus on skills essential for the next 3-5 years with

a specific emphasis on cultivating and promoting young talent.Gender distribution (persons) Age distribution (persons) The Company regularly collaborates with HR and business units

to evaluate program effectiveness for participating leaders and

2612 401 1810 Total courses launched on the Yuwell employees while recognizing high performers to boost visibility and Employees aged

Academy Learning and Development engagement. Through regular interviews partnerships with leading

Female employees 30 and under Management Platform industry consultants cross-industry benchmarking visits and other

Male employees Employees aged 31-50 diverse methods it effectively identifies and nurtures talent while

4135 Employees aged 51 1499 constantly refining the training system based on feedback from and above training programs and practices. Additionally the Company conducts 3734 ongoing evaluations of middle to senior managers young leaders

and key professionals in development programs. It also supports

Organizational hierarchy (persons) Educational background (persons) newly hired middle to senior staff from other industries in adjusting to

Yuwell's work environment thereby fostering a learning organization.

135 313 2233 2501 Employees with bachelor's

Cumulative learning hours Yuwell Medical identifies critical organizational competencies based

Senior management degrees or above on business planning and develops talent to meet future business

Employees with

Middle management 116752.4 needs. Over the past three years the Company has developed associate degreesFrontline employees a comprehensive internal curriculum framework and instructor

5898 1612 Employees with degrees resource pool focusing on critical areas like management R&D

below associate level sales competency and lean manufacturing. Complementing this

core system is a structured practical training program that blends

external courses and expert instructors. Through its internal instructor

Geographical distribution (persons) team the Company translates valuable business and management

112 Total course views experiences into replicable organizational practices helping to solidify

and scale core competencies. Additionally the Company invites

Employees from China (including 159318 external industry experts for specialized seminars and organizes Hong Kong Macao and Taiwan) benchmarking visits to peer enterprises enabling the acquisition of

Overseas employees cutting-edge insights and management methodologies. Furthermore

6234 the Company has forged partnerships with universities and research

institutions to attract and nurture high-caliber talent thus enhancing

its employer brand strength and research capabilities.

63 64Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Talent Development Projects Leadership Development

Yuwell Medical designs distinctive talent cultivation projects with a product-oriented approach adhering to the principle of Yuwell Medical consistently invests in the planning and development of management talent with a strong emphasis on internal

integrating training with practical work. The Company has established four major development plans based on management promotion and leadership cultivation. In alignment with its latest global expansion strategy the Company has partnered with a world-

levels: Embarking Setting Sail Sustaining Progress and Leadership Pioneering. These plans comprehensively cover new renowned leadership consulting firm to introduce the Yuwell Leadership Standards for the first time. Comprehensive management

employees/management trainees junior leaders high-potential talent and middle to senior managers. Through tailored training training programs are implemented through talent assessments practical leadership development initiatives and integration

activities the Company aims to enhance and constantly upgrade employees' job competencies. programs for externally recruited executives. These programs include management course development hands-on training

and international study tours. The Company also partners with educational institutions to craft bespoke executive development

programs offering specialized courses from renowned schools like CEIBS Nanjing University Business School Shanghai Jiao Tong

University and the Wharton School at the University of Pennsylvania. These initiatives provide leadership development opportunities

Total investment in employee training Total training attendances for managers at all levels and high-potential talent pools enhancing their holistic perspective leadership skills and strategic vision.

3.20 35762 Leadership Training SeriesRMB million

Management Trainees Junior Leaders Middle Managers Senior Managers

Total training hours Employee training coverage rate

223874 100% Yuwell Medical's Junior Manager Training Camp is designed to facilitate

the transition of core personnel into

junior management roles. To date

two sessions have been conducted

Average training hours per employee during the year benefiting over 100 outstanding junior

leaders across the Group.

35.28

The 2024 Yuwell High-Potential Talent

Gender-based distribution (hours) Hierarchy-based distribution (hours) Training Camp focuses on supporting

the Company's internationalization

34.83 36.00 47.72 17.39 strategy. It addresses critical areas such as Average training hours cross-cultural leadership and advanced

Average training hours per senior manager management skills aiming to enhance the

per male employee Average training hours global perspective and comprehensive

Average training hours per middle manager leadership capabilities of core managers

per female employee Average training hours and high-potential employees.

31.99 per frontline employee

Case Yuwell Star Program

New Employee Training The Yuwell Star Program is Yuwell's flagship management trainee initiative serving as a cornerstone for attracting innovative talent

and building a strong pipeline of future leaders. The program features a multifaceted approach to development including pre-

Yuwell Medical prioritizes the integration and development of new employees. Through the online New Employee Learning employment online courses an immersive induction bootcamp a dual mentorship system (pairing business and BP mentors) and

Program and in-person centralized training the Company ensures that new hires quickly acquire essential corporate knowledge an accelerated career development camp. Leveraging an OMO (Online-Merge-Offline) training model the program facilitates rapid

understand business processes and products assimilate the corporate culture and adapt swiftly to their work environment. In growth and smooth career transitions for management trainees. By the end of 2024 Yuwell Medical had successfully nurtured 426

2024 the Company conducted over 60 new employee training sessions reaching 2129 new hires. management trainees with over 20 advancing to middle and senior management positions.

65 66Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Professional Capability Enhancement Employee Development

For key roles in R&D production and marketing Yuwell Medical has developed comprehensive job learning maps and specialized Dual-Track Talent Development System

training programs to bolster core competencies and foster team collaboration. The Company has established well-defined competency

standards and learning trajectories for R&D roles enabling researchers to hone their technical expertise and sharpen their professional Yuwell Medical adheres to a talent strategy that prioritizes internal cultivation while supplementing it with external recruitment. The

capabilities. Production employees in critical roles undergo a series of specialized training courses engaging in cutting-edge topics such Company has established a dual-track talent development system to help employees align their personal characteristics with both

as medical equipment intelligence big data analysis overseas registration regulations FDA and CE certification and interdisciplinary professional and managerial growth paths better matching individual career goals with organizational needs.collaboration projects. Employees are required to pass rigorous assessments before assuming their roles.For professional roles the Company has introduced a professional certification system and customized talent development initiatives.These frameworks help employees clarify their career positioning and identify skill gaps empowering them to design personalized

To support the implementation of its global development roadmaps. For management roles the Company has established a leadership management system and structured

expansion strategy and reinforce quality and tiered development programs. It has also created leadership competency models and defined leader competency profiles for key

compliance awareness the Company invited management positions standardizing the procedures for leader selection appointment evaluation and promotion. This approach

leading Chinese medical device quality and unleashes the potential of managers at all levels and strengthens the organization's core competitiveness.regulatory experts to conduct a comprehensive

FDA regulation training series in 2024. Over 20

internal courses were developed and adapted. Leadership Professional Competence

These tailored programs based on U.S. FDA

regulations and guidelines were delivered in four

distinct modules covering general principles

registration protocols product R&D and post- Leadership Management Talent Professional Talent

market surveillance. The training encompassed R&DPioneering Development System Development System

employees from regulatory affairs registration

R&D and platform departments. Senior Manager Wharton Study Tour Departmental Team Pipeline Building

Sustaining Marketing

Progress High-Potential Talent Development Professional Skills Training

External Collaborative Training On-The-Job Leader Training and Practice Position Certification Training

Production

Yuwell Medical actively leverages high-quality external training resources. The Company organizes academic exchanges with external Setting Sail

research institutions and universities collaborates with professional organizations and invites industry-leading experts to conduct New Manager Transition Professional Learning Maps

exchange and training sessions for various departments branches and subsidiaries. These initiatives are critical to fostering innovation

enhancing the expertise of technical and managerial teams and driving knowledge exchange. In 2024 the Company established Embarking Functional

collaborations with leading consulting firms including CEIBS Korn Ferry Beisen YunXueTang Xingtu Consulting and 51job to advance New Employee Development System (Social Recruits & Management Trainees)

its talent development strategies. These included the "Chinese Enterprises' Global Expansion Strategies and Implementation Roadmaps"

course for the Yuwell High-Potential Talent Training Camp the interviewer empowerment training the CFMOTO study tour the

INOVANCE study tour the cross-cultural leadership training and the FDA registration regulations training.Course Resource Management Instructor Team Management Training Project Management

Online Learning Platform: Yuwell Academy

Yuwell Learning and Development

Center in collaboration with

the School of Medicine Jiangsu

University has launched the Academic and Qualification Support

Excellence in Service - Yuwell

Medical Advanced Studies Program. Yuwell Medical promotes a culture of lifelong learning and has established policies such as the Research Personnel Continuing

This initiative offers specialized Education Management System and the On-the-Job Postgraduate Training Management System. The Company encourages and

courses tailored to Yuwell's diverse supports all employees (including regular and part-time staff) to pursue job-related degrees and qualifications outside of work hours

business segments. and apply for growth programs that meet their personal development needs constantly enhancing their professional competence.For employees choosing to pursue further education the Company fully subsidizes their tuition and related expenses. As of the end of

the reporting period 24 employees have undertaken further academic studies gaining greater opportunities for career development

and advancement.

67 68Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Diversity and Equal Opportunity

Female employee ratio Ethnic minority employee ratio Employees with disabilities ratio

Yuwell Medical advocates the philosophy of

"diversity and inclusion hard work and happy

living". The Company integrates diversity and

inclusion requirements into its recruitment and 41.16% 2.68% 0.25%

hiring processes daily operations and training

activities. Performance evaluations and promotion

decisions are conducted fairly and impartially for Mid to senior-level female employee ratio Senior management female employee ratio Return-to-work rate after parental leave

employees from diverse backgrounds providing

equal opportunities and broad development

platforms for all staff members. Annual diversity 31.25% 25.19% 100%

training and activities are organized for all

employees and regular face-to-face communication

and team-building events are held between Female employee ratio in STEM positions (R&D and technical roles)

management employees and human resource

business partners (HRBPs). These initiatives

promote the integration of different cultural

backgrounds and aim to create a diverse equal 29.37%

inclusive and dynamic workplace atmosphere.Recruitment and Hiring Work and Welfare Support

Yuwell Medical strictly adheres to international human rights norms such as the International Bill of Human Rights the ILO Yuwell Medical is committed to diversity equity and inclusion (DEI) fostering a dynamic and supportive workplace culture that values

Conventions and the UN Guiding Principles on Business and Human Rights. It also complies with the Labor Law of the People's every employee. The Company has also established barrier-free work environments for employees with disabilities enabling their

Republic of China the Labor Contract Law of the People's Republic of China and local laws and regulations in its areas of employment and ensuring meaningful work opportunities.operation. Multiple management policies have been formulated including the Yuwell Medical Recruitment Management System

and the Yuwell Medical Employee Handbook to standardize employee recruitment and onboarding processes. The Company does For female employees Yuwell Medical provides equal career opportunities offering sound professional development prospects

not discriminate based on gender education age race family status religious beliefs or cultural background providing equal and a comprehensive compensation and benefits system. The Company ensures equal pay for equal work regardless of gender

employment and development opportunities for all employees. It prohibits the employment of child labor forced labor and other and fully respects women's rights to statutory prenatal check-up leave maternity leave and breastfeeding leave. It also encourages

illegal or policy-violating employment practices. The Company eliminates all forms of discrimination and prejudice ensuring male employees to take paternity leave during their spouse's childbirth period promoting a balance between family and career

the legality fairness and equity of the recruitment process. During the reporting period Yuwell Medical did not experience any responsibilities. For female employees returning to work after childbirth the Company humanely provides a necessary adaptation

incidents of child labor forced labor or employee discrimination. period and gradually guides employees back into their roles based on individual physical recovery supporting their career continuity

after returning from parental leave. Female employees are offered equal access to education training and promotion to support their

professional growth and skill diversification. The Company empowers women to overcome career barriers assume key roles and

take on leadership responsibilities thereby expanding their career development horizons.

69 70Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Compensation Incentives Fostering a Happy Provide endowment insurance medical insurance work-related injury

Yuwell Workplace insurance unemployment insurance maternity insurance housing

Compensation Incentive Mechanism fund and paid leave (e.g. sick leave work injury leave marriage leave

Yuwell Medical upholds the philosophy of

The Company has formulated the Yuwell Medical Interim Measures for Compensation Management System establishing an bereavement leave prenatal check-up leave maternity leave paternity "hard work and happy living" providing

evaluation and incentive mechanism that aligns with business characteristics focuses on performance and is based on value leave breastfeeding leave childcare leave and annual leave).all employees with comprehensive Basic

contribution. A comprehensive compensation system has been developed for all employees including those in non-management non-monetary benefits. Through the Benefits Set Yuwell summer vacation a special summer vacation benefit tailored

and non-sales positions. The system includes both fixed and variable income components with market dynamics and industry implementation of diverse welfare plans to the Company's industry business cycle to encourage employees to

compensation trends fully considered. By constantly refining compensation plans based on performance metrics the Company and employee assistance programs the maintain a healthy work-life balance during peak and off-peak seasons.enhances the market competitiveness of its compensation packages. Company aims to create a harmonious

and healthy work environment nurturing

The compensation structure comprises a fixed salary variable performance bonuses and long-term incentives designed to be a workplace characterized by warmth and Offer annual health check-ups accident insurance illness compassionate

directly linked to the Company's operating results organizational performance and individual achievements. Variable bonuses well-being. payments and high-temperature allowances.and long-term incentives are allocated differently across job categories reflecting individual contributions and the achievement Organize health activities including traditional Chinese medicine (TCM)

of company and departmental performance targets. This approach ensures a strong alignment between bonus distributions and To provide employees with a pleasant Employee consultations shoulder and neck therapy and eye examinations.performance outcomes at both organizational and individual levels effectively motivating employees to pursue performance goals safe and healthy workplace the Company Health

improve productivity and retain key talent. Regular performance evaluations are conducted for all employees and departments to completed a new office building project Partner with external psychological assessment institutions to provide

ensure compensation accurately reflects work results. The Company has also introduced an employee stock ownership plan (ESOP) in 2024. The project incorporated open- psychological evaluations and counseling services for employees in need.using equity incentives to align core employees' personal interests with the Company's long-term goals. This strategy encourages staff concept and flexible workspaces creating

to focus on sustained corporate growth supporting ongoing and effective business expansion. For detailed information on employee a modern and collaborative environment Establish a compassion fund to provide timely assistance to employees

equity incentives please consult the Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Annual Report. that fosters communication and teamwork or their family members facing illness or hardships supporting over

while enhancing comfort. 540 individuals to date with 33 employees receiving aid in 2024.Arrange additional home leave for expatriate employees supplementing

Performance Evaluation and Feedback statutory holidays and paid annual leave to facilitate more family

Yuwell Medical actively promotes an efficient fair and merit-based performance culture complemented by a tiered and categorized reunions.performance appraisal system. The Company undertakes annual comprehensive evaluations of all regular employees covering Caring Issue retirement commemoration certificates social pension insurance

key dimensions such as performance competence work attitude and behavior. The Company prioritizes employee capability Support and mementos for retired employees.enhancement and performance improvement while ensuring fair assessments and equitable rewards. Each year the Company

communicate its strategic and operational objectives to every department team and individual. This cascading process involves Assist employees in applying for various government subsidies when

commitment and support at all organizational levels ensuring alignment between individual performance departmental results and appropriate.strategic objectives. Consequently this approach translates corporate strategy into tangible daily activities guaranteeing effective

strategy implementation and the achievement of desired results.Conduct regular team-building activities such as outdoor development

Throughout this process the Company has developed robust communication mechanisms for performance management programs the Yuwell Chairman's Cup basketball tournament the Yuwell

with the goal of ensuring all employees understand performance management principles and actively engage in the process. supercar team fitness challenges and cultural performances. Deliver

High-performing staff are recognized through both material and non-material incentives to sustain motivation. In contrast for diverse recreational activities including mobile game competitions vlog

Stress

underperforming employees the Company promptly deploys effective performance improvement plans (PIPs) to facilitate rapid contests and lucky draw events to help employees relax and unwind.Relief

improvement. Comprehensive supervisory mechanisms have been established at every stage including processes for performance Hold family open day annually to engage employees' families and

appeals disciplinary complaints and investigative interviews. These measures safeguard employee rights while ensuring the children jointly fostering a harmonious and healthy work atmosphere.performance management process remains objective fair and impartial. Sports check-in

For middle and senior-level personnel Yuwell Medical employs a 360-degree feedback assessment system. This approach gathers

multi-source input from supervisors peers subordinates and cross-functional collaborators. The evaluation process consists

of three stages covering the entire performance cycle and enhancing assessment fairness. In the preparation phase tailored

survey questionnaires are designed for different employee groups based on evaluation objectives. Both assessors and assessees

receive thorough training on 360-degree feedback tools. During the assessment phase the process is conducted anonymously

with strict confidentiality measures for both assessors and results fostering an environment for honest and unbiased feedback.In the feedback phase assessees receive detailed feedback and coaching based on multi-source input enabling them to identify

strengths development areas and performance gaps aligned with Company and supervisor expectations. This process empowers

employees to define clear paths for professional growth and future improvement.Pet-friendly activity Parent-child activity

71 72Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Impact Risk Yuwell Medical places strategic priority on continuous human capital enhancement through

proactive identification of potential workforce risks and systematic analysis of internal and Protection of Employee Rights

and Opportunity external factors impacting talent development. In alignment with its strategic objectives

Management the Company engages in ongoing identification assessment mitigation and monitoring Labor Rights

of workforce risks to ensure they are maintained within acceptable thresholds. This risk-

centric approach not only enhances organizational performance but also fuels long-term Yuwell Medical has implemented a comprehensive set

sustainable growth in a competitive market landscape. of internal policies and guidelines including the Anti- Labor contract signing rate1

Discrimination Management Procedure Labor Employment

To address critical human capital risks such as talent attrition shortage of key personnel Procedure Special Working Environment Assessment for

ineffective performance management insufficient training and development uncompetitive Female Workers Management of Child and Minor Workers

or unfair compensation and benefits legal compliance issues and organizational culture Yuwell Work Injury Management Measures and Employee 99.13%

risks the Company has established a scientific human resource management system. Handbook. These policies comply with human rights protection

Based on strategic planning and business development directions it formulates talent regulations clearly defining employee conduct guidelines and

development strategies creates a support system for employees' continuous growth Social insurance coverage rate2expectations. By outlining these standards the Company aims

throughout their career lifecycle and optimizes human resource management strategies to mitigate potential human rights risks and provide robust

for the entire process of attracting nurturing utilizing and retaining talent. The Company safeguards for employee rights.also strengthens talent review and succession planning to mitigate reduce or transfer risks 98.12%

shaping a resilient and adaptable organization capable of thriving across business cycles. The Company has established human rights protection policies

and procedures to ensure fair opportunities and treatment Employee discrimination or harassment incidents

for all employees in recruitment employment promotion

Indicators Indicator and Target 2024 Achievement Status and workplace environment. It strictly prohibits all forms of

and Targets discrimination and harassment while guaranteeing reasonable 100% coverage rate of employee training Target achieved working hours paid leave and fair compensation. Employees 0

Continuous improvement in employee Target not achieved1 are entitled to join labor unions and engage in collective

satisfaction Employee satisfaction rate: 81.9% bargaining. The Company has also implemented anonymous Notes 1 and 2: Rehired employees do not enter into labor

reporting channels to protect employees' freedom of speech contracts with the Company and neither rehired employees nor

Target achieved and their right to report concerns. Supply chain risk assessments locally hired foreign nationals are covered by the Company's Key talent turnover rate ≤ 12.5%

Key talent turnover rate: 12% social insurance contributions. For all other regular employees are conducted regularly with suppliers required to adhere to the labor contract signing rate and social insurance coverage rate

relevant social responsibility standards ensuring the absence of both stand at 100%.Note 1: The Company's employee satisfaction survey response rate increased by 7.7% year- human rights violations throughout the supply chain.on-year in 2024 with a net increase of 880 in valid questionnaire respondents.Yuwell Chairman's Cup basketball tournament

73 74Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Employee Communication and Grievance

Yuwell Medical respects employees' rights to participate express opinions and exercise oversight. The Company constantly supports

employees' freedom of speech by establishing open and transparent channels and platforms for expression. Through employee representative

meetings face-to-face communication sessions with the Chairman 360-degree evaluation of management company internal publications and Work-related injury insurance coverage rate1 Attendances in health and safety training

employee forums the Company actively encourages employees to share their ideas and opinions on company operations and management.The Company has developed the Yuwell Medical Employee Complaint Management Procedure and the Yuwell Medical Reporting Management 98.12% 6589 with 1a 00%coverage rate

System implementing a comprehensive grievance reporting mechanism with clear escalation protocols. This framework establishes defined

responsibilities and agile response mechanisms across all management levels ensuring seamless communication from frontline to senior

management. Employees are encouraged to promptly report any unfair treatment to their supervisors or the Human Resources Department.The Company has appointed dedicated personnel to receive and address employee grievances and whistleblowing providing timely updates Workdays lost due to work injuries Employee occupational disease incidence rate

on handling measures and outcomes to safeguard employee rights. Furthermore the Company enforces strict confidentiality for all complaints

and whistleblowing. Any retaliation is strictly prohibited and will result in severe disciplinary action ensuring employees can voice concerns

freely without fear of reprisal. By analyzing grievance cases the Company consistently improves its policies to prevent similar issues from arising 872 0%

in the future.Yuwell Medical's parent company and four of its subsidiaries Yuwell Medical's parent company has been certified as

Employee Representative Meetings have obtained ISO 45001 Occupational Health and Safety a Level 3 Enterprise for Work Safety Standardization.Regular employee representative meetings enable employees to participate in company governance Management System certification.particularly in matters related to employee benefits and career development.Note 1: The Company does not contribute to work-related injury insurance for rehired and local foreign employees. For all other regular employees

Face-to-Face Communication Sessions with the Chairman the work-related injury insurance coverage rate is 100%.The Chairman and General Manager engages in direct communication with key employees from

various departments conducting open discussions on organizational business and cultural topics to

listen to employees' perspectives. Occupational Hazard Prevention and Control

In compliance with Occupational Health and Safety Management System standards Yuwell Medical rigorously implements the "Three

360-Degree Evaluation of Management Simultaneities" principle (i.e. safety facilities must be designed constructed and put into operation simultaneously with the main project)

during process design and product manufacturing. The Company arranges occupational health check-ups for employees and engages

Comprehensive assessments of managers are performed by their superiors peers subordinates and certified institutions to conduct periodic assessments of workplace noise air quality and other potential occupational hazards. It systematically

collaborating personnel to fully consider employee feedback. identifies risks and implements occupational disease prevention measures. A tiered safety approach is employed with high-risk work areas and

locations clearly marked using safety warnings and protective barriers to ensure a safe and healthy working environment for all employees.Internal Publication Yuwell New Horizon

This publication disseminates the Company's development updates product information and Health and Safety Training

management insights while also featuring employee achievements and work reflections.The Company places great emphasis on cultivating a robust health and safety culture. It has developed an integrated online and offline learning

platform to provide comprehensive safety education including three-tier safety training and fire safety courses to all employees. Regular initiatives

Employee Forum "Fish Pond" such as the Production Safety Month are organized to reinforce safety management practices as a routine aspect of work. These efforts encourage

This forum enables all employees to freely express themselves with official accounts providing unified employees to prioritize safety precautions in their daily tasks fostering a culture where safety is everyone's responsibility and priority.and timely responses to topics of employee interest.Occupational Health and Safety Mastery of CPR and AED techniques is a mandatory

requirement for all employees. This training has been

Yuwell Medical strictly adheres to relevant laws and regulations including the Work Safety Law of the People's Republic of China the Law incorporated into the standard curriculum for new

of the People's Republic of China on the Prevention and Control of Occupational Diseases the Fire Control Law of the People's Republic hires. Throughout the year five training sessions were

of China the Safety Administration of Hazardous Chemicals and the Provisions on the Supervision and Administration of Occupational conducted recording 489 attendances. An online first-

Health at Work Sites. The Company also complies with the requirements of the ISO 45001 management system. It has formulated a aid safety course was launched with 499 employees

series of regulatory systems including the EHS Management Manual and the Measures for Management of Work-related Injury Accidents successfully completing the training and assessment.establishing a comprehensive safety management system. The General Manager is responsible for the Company's production safety

incorporating annual health and safety targets into management performance evaluations to ensure workplace health and safety.

75 76Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Safeguarding Life and Health

Upholding its mission of "alleviating patients' suffering and Case

enhancing doctors' medical capabilities" Yuwell Medical Comprehensive Support for the "Power of Walking" Public Welfare Project

Total charitable contributions

consistently explores innovative philanthropic models

that align with contemporary developments and societal 1.47 In 2024 Yuwell Medical served as the official medical security partner for the "Power of needs. The Company is dedicated to initiatives in medical Walking" public welfare project delivering comprehensive medical support throughout the emergency response diabetic care and rural medical support RMB million event. To tackle the challenge of high-altitude oxygen deficiency the Company leveraged

contributing to the high-quality development of global its medical expertise to design emergency response kits customized for specific walking

healthcare industry. routes and terrain. These kits were equipped with oxygen generators AEDs blood pressure

monitors thermometers blood glucose meters and other essential medical devices.This proactive initiative not only ensured participants' safety and helped them maintain

Focusing on Medical Emergency Response optimal physical condition while navigating challenging terrain but also empowered more

individuals to overcome obstacles and regain the courage to face life's challenges. The

Since its inception Yuwell Primedic has been at the forefront of emergency rescue services safeguarding lives globally. In China journey begins with the heart and unfolds naturally - embodying both the spirit of the walk

alone over 10000 volunteers have undergone professional training provided by Yuwell Primedic. On a global scale Yuwell Primedic's and Yuwell Medical's core philosophy of "energizing life via technology".rescue network spans more than 100 countries saving over a hundred lives annually. Furthermore the Company has established the

elite Flying Fish Rescue Team which has collaborated with event security organizations to provide medical support at thousands of Case

international marathon events successfully resuscitating dozens of runners who experienced cardiac arrest. Yuwell Medical Continues to Provide Full Safety Support for the 7th Medical League Competition·Gobi

Heroes Gathering Marking Six Consecutive Years of Participation

On the 25th World Heart Day Yuwell Primedic joined forces with various partners to establish a Public First Aid Network. This initiative

encompasses the promotion of AED first aid knowledge through public welfare activities and includes a partnership with Tencent to From September 22 to 26 2024 the 7th Medical League Competition·Gobi Heroes

integrate AED devices into public transportation systems thereby providing mobile emergency assistance to citizens. By harnessing Gathering took place in Guazhou Gansu Province. The event attracted 3000

advanced 5G and AIoT technology Yuwell Primedic partnered with Tencent and China Unicom to create comprehensive emergency representatives from the medical and pharmaceutical industries who undertook the

response solutions that greatly improve rescue efficiency. The company has also expanded its reach to schools businesses challenge of trekking 81 kilometers across the Gobi Desert. Throughout the event

communities and government agencies across the country. This program includes the One Hundred Emergency First Aid Training Yuwell Medical provided arm-type electronic blood pressure monitors and low-

Sessions and the Last Mile Emergency Aid Public Training addressing common concerns about using emergency equipment and frequency electrotherapy devices to help participants monitor their health and aid in

improving pre-hospital emergency response efficiency and patient survival rates. Looking ahead Yuwell Primedic plans to establish physical recovery. The Company also equipped the venue with Yuwell Primedic AEDs

first aid training cooperation sites in 100 cities. These sites will be equipped with AEDs CPR manikins and other interactive teaching featuring a drop-resistant design ensuring timely emergency response capabilities

tools offering public first aid training courses that cover health education volunteer services and rescue training to bolster primary and securing critical minutes in life-saving situations.medical treatment capabilities.Promoting the Development of Traditional Chinese Medicine

and Acupuncture

Yuwell Primedic has conducted reaching Suzhou Hwato Medical Appliance Co. Ltd. a subsidiary of Yuwell Medical is a steward and advocate of Traditional Chinese Medicine

860 300 50000 (TCM) and acupuncture culture. It consistently invests in education and talent development breathing new life into the TCM sector.+public welfare training + +

sessions on AED and professional first aid cities with attendances

Established in 1991 the Hwato In collaboration with provincial and The Company has forged a strategic

Scholarship stands as the first privately municipal acupuncture societies the alliance with the China Association of

Cumulative certified first aid volunteers nationwide First aid instructors trained endowed scholarship at Nanjing Company instituted the Hwato Gold Acupuncture-Moxibustion sponsoring

University of Chinese Medicine. It Needle Award to recognize healthcare the National College Acupuncture and

5000+ 100+ has provided financial support to professionals who have made significant Tuina Clinical Skills Competition for thousands of exceptional students contributions to TCM and acupuncture. three consecutive years to foster the playing a crucial role in revitalizing the To date nearly a hundred acupuncturists development of skilled practitioners in

field of TCM. across the nation have been honored acupuncture and tuina.with this prestigious award.

77 78Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Dedication to Diabetes one of the most prevalent chronic diseases worldwide is increasingly Supporting Rural Yuwell Medical is actively involved in the Rural Healthcare Program aiming to enhance primary

affecting younger populations. Yuwell Medical is at the forefront of chronic disease healthcare services and improve the allocation of medical resources in rural areas. Over the

Diabetic Care management driving product innovation and technological advancements based on Revitalization years the Company has made significant donations of medical equipment to rural primary

a deep understanding of diabetic patients' needs and emerging health management healthcare institutions addressing the acute shortage of medical supplies at the grassroots

trends. The Company offers more accurate and user-friendly blood glucose level. Through partnerships with reputable charitable organizations such as the China Charity

management services for individuals living with diabetes. Furthermore it partners Federation Red Cross Society of China Xianyang Branch Jiangsu Social Donation Service Center

with hospitals and other healthcare institutions to enhance diabetes prevention and and Shanghai Charity Foundation the Company has contributed funds and medical devices to

treatment efforts conducts free community clinics and organizes various charitable rural revitalization projects and various elderly care institutions. These efforts have significantly

initiatives to provide comprehensive support for those affected by diabetes. enhanced health management standards and disease prevention capabilities in rural regions.Delivery within

To tackle the oxygen supply challenges in high-altitude regions Yuwell Medical initiated the

1 Xizang Oxygen Production Project in 2016. This effort led to the establishment of the Yuwell Medical Highland Oxygen Production Industry Park in Lhasa Xizang in 2018. The facility The Company regularly hosts The Company has established The Company actively hour in urban areas produces a full spectrum of high-altitude oxygen products including centralized and split

Yuwell Health Camp events a diabetic community which promotes public awareness of Xizang diffusion systems micro-pressure oxygen chambers modular units portable devices vehicle-

featuring renowned experts serves as an interactive online of diabetes prevention mounted systems and individual nasal inhalation devices. This diverse product range effectively

from top-tier hospitals who platform catering to patients and control disseminating meets the oxygen needs of highland residents. The Company's 1+1 Service Model coupled with

engage directly with diabetic with various types of diabetes scientific knowledge about Delivery within grid-based standardized service and an intelligent remote monitoring platform ensures rapid

patients. These experts share including Type 1 Type 2 and blood glucose management. product delivery—within 1 hour in urban areas of Xizang and within 1 day in remote regions.scientifically-backed methods gestational diabetes. Yuwell employees have made multiple trips to high-altitude outposts over 5000 meters above

for blood glucose control Registered users on the platform: 1day in remote areas sea level to deliver high-quality and reliable high-altitude oxygen concentrators to local residents creating a platform that 310000+ aid workers and individuals from various sectors. The Company remains dedicated to its long-

combines professional health of Xizang term engagement in Xizang focusing on developing high-altitude medical infrastructure and

guidance with interactive Cumulative views in the diabetic exploring diverse public welfare models to improve the health of highland residents.discussions. community: 1690000+

Total number of posts: 80000+ Case Committed to High-Altitude Healthcare Serving the People of Xizang

From October 17 to 22 2024 the China Ageing Development Foundation in

July 2024 collaboration with several influential organizations launched the Hearing Care Program

for Veteran Soldiers an initiative specifically targeted at retired soldiers in high-altitude

Yuwell Medical co-organized the regions. As a key partner Xizang Yuwell Medical provided comprehensive services across

18th Nanyi Summer Camp in various areas of Xizang including Shannan Shigatse Nagqu Lhasa and Chamdo at

Huai'an City Jiangsu Province. an average altitude of approximately 4000 meters. The company conducted multiple

The event attracted nearly 100 health screenings including tests for blood pressure blood glucose uric acid and

families affected by Type 1 cholesterol while also offering high-altitude oxygen supply services. Personalized

diabetes providing them with medical advice was also provided demonstrating Yuwell's commitment to the health

valuable knowledge and practical and well-being of retired soldiers in these challenging environments.management skills related to the

condition. A 6.8-magnitude earthquake struck Tingri County in Shigatse City Xizang causing casualties in surrounding areas including Lhatse County and

August 2024 CGM blood glucose exhibition resulting in over 100 injuries. Xizang Yuwell Medical immediately activated its high-altitude emergency oxygen supply and emergency first-aid plan

deploying critical medical rescue equipment such as high-altitude outdoor oxygen production cabins portable wearable oxygen concentrators

The Company successfully held the and AEDs to provide urgent oxygen support and emergency medical aid for earthquake relief. Partnering with the China Ageing Development

Yuwell Health Camp event inviting Foundation the company organized overnight transportation to ensure essential medical gear including oxygen generators and wheelchairs

medical experts to deliver accessible along with other relief supplies reached the disaster zone promptly. This rapid response provided critical medical support to affected residents and

and informative sessions on frontline rescue teams significantly enhancing the efficiency of rescue operations.diabetes knowledge and offering

one-on-one free consultations. In Case

addition the Company provided Advancing National Grassroots Infection Control

continuous glucose monitoring

systems free of charge to help more To promote the building and development of China's national grassroots infection control (IC) system Zhongyou Likang Pharmaceutical High-

individuals with diabetes achieve Tech (Chengdu) Co. Ltd. has exclusively supported the National Health Commission in implementing the Inspiring China grassroots IC training

scientific and convenient blood program since 2017. The company has established the Inspiring China Hospital Infection Prevention and Control Research Fund aimed at

glucose management. accelerating research and exploration of innovative methods technologies and applications in China's IC field. In 2024 Zhongyou Likang

Yuwell Health Camp event collaborated with the National Health Commission to launch the second session of the Inspiring China grassroots IC training program.

79 80Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Environmental Friendliness

Creating a Shared Green Future

Total investment in environmental protection

RMB4.82 million

Greenhouse gas emission intensity

0.0315 tons of CO2 equivalent/RMB 10000 revenue

Waste emission compliance rate

100%

81 82Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Strengthening Environmental Management

Environmental Management Objectives

Yuwell Medical is committed to implementing and upholding the principles of green development. The Company strictly adheres to The Company regularly assesses the environmental impact of its business operations cascading environmental objectives and

relevant environmental protection laws and regulations including the Environmental Protection Law of the People's Republic of China tasks to various departments. It reinforces the tracking feedback and evaluation of goal achievement progress implementing

the Law of the People's Republic of China on Water Pollution Prevention and Control the Law of the People's Republic of China on closed-loop management to constantly improve environmental performance. EHS management objectives are incorporated

the Prevention and Control of Atmospheric Pollution and the Law of the People's Republic of China on the Prevention and Control of into management performance evaluations with a veto system for major negative incidents in environmental management.Environmental Pollution by Solid Waste. In accordance with ISO 14001 Environmental Management System standards it has developed Once the EHS management objectives are further detailed and allocated to specific departments they are directly tied to the

the Yuwell Medical EHS Management Manual and other policy guidelines. The Company constantly optimizes its internal environmental performance evaluations of department heads and relevant personnel.management system embedding sustainable development practices into daily operations. Through developing a comprehensive EHS

governance framework it rigorously enforces EHS management responsibilities at all organizational levels. The Company also enhances Indicator and Target 2024 Achievement Status

its monitoring and improvement mechanisms with the dual goal of boosting corporate competitiveness while reducing environmental

footprint. During the reporting period Yuwell Medical reported no environmental pollution incidents incurred no environmental Waste classification rate ≥ 90%

administrative penalties and experienced no major environmental incidents. 100% control of hazardous waste Target achieved

90% control of recyclable waste

Factory boundary noise emissions comply with Class 3 standard in GB 12348-2008

Total investment in Environmental protection Emission Standard for Industrial Enterprises Noise at Boundary i.e. ≤ 65 decibels during Target achieved

environmental protection training coverage rate the day and ≤ 55 decibels at night with no complaints from relevant parties.

4.82 100% Unorganized exhaust gas emissions at factory boundaries meet standards with no Target achievedexternal complaints.RMB million

Implement rainwater and sewage diversion systems in the factory area with

Target achieved

compliant sewage discharge.Increase factory area greening to 15% of the factory area. Target achieved

EHS Management Structure

The Company has established a three-tier EHS management structure with clearly defined responsibilities at each level. The

General Manager is primarily responsible for environmental protection leading and coordinating the Company's EHS management Environmental Risk Management Environmental Audits and Certification

strategies. A Management Representative is appointed to develop plans and ensure that environmental initiatives are established The Company has implemented a suite of policies including the The Company has developed the Internal Audit Control

implemented and maintained within the EHS management system with direct reporting to the General Manager. The functional Identification Evaluation and Control Procedure for Environmental Factors Procedure and the Management Review Procedure. Annually

departments execute various regulations and requirements of the Company's EHS management system ensuring the achievement the General Rules for Monitoring Measurement Analysis and Evaluation and it undertakes multi-dimensional internal environmental

of EHS management policies and objectives. The EHS management system encompasses 100% of the Company's relevant business the Emergency Preparedness and Response Procedure. It annually identifies audits cross-departmental reviews and rigorous self-

segments. During the reporting period the Company revised the Yuwell Medical EHS Responsibility System and implemented tiered and reviews environmental risk factors undertaking proactive environmental inspections according to a predefined schedule. The system

safety and environmental protection responsibility agreements to ensure effective implementation of safety responsibilities. assessments and hazard investigations to constantly refine risk control maintains its effectiveness through the PDCA (Plan-Do-Check-

measures. Regular environmental monitoring is carried out to effectively track Act) model ensuring continuous improvement. Quarterly

pollutant emissions with results promptly disclosed for regulatory review and the Company partners with third-party professional

public oversight. An emergency command center and response teams have institutions to audit its environmental management system

Oversee the Company's EHS management initiatives including formulating corporate EHS management been established supported by a dedicated Emergency Plan for Sudden comprehensively assessing operational efficiency and

policies and objectives ensuring adequate resources for effective operation of the EHS management system

General Environmental Incidents. Regular professional training and emergency drills environmental performance. Furthermore the Company and preventing and managing overall environmental risks.Manager are conducted to strengthen the Company's emergency response capabilities actively promotes the development and certification of

and readiness for environmental incidents. During the reporting period the its environmental system undergoing annual supervisory

Company revised its List of Significant Environmental Factors identified 55 audits by third-party certification bodies and recertification

environmental factors and carried out two environmental emergency drills audits every three years.Assist the General Manager in establishing implementing and maintaining the EHS management system focusing on chemical spills and sudden environmental incidents.ensuring the realization of EHS management policies and objectives. Organize the assessment of risk and

Management opportunity response measures and oversee the investigation analysis and handling of major environmental

Yuwell Medical's parent company and

and safety incidents. Environmental Protection Training three of its subsidiaries have obtained Representative

ISO 14001 Environmental Management

The Company regularly conducts diverse multi-tiered environmental System certification.protection education and training programs followed by post-training

assessments. Extensive environmental awareness campaigns are organized Yuwell Medical's parent company has

Execute various regulations and requirements of the Company's EHS management system carry out work related to enhance employees' environmental consciousness and competencies. been certified as

Functional to the EHS management system and ensure the achievement of EHS management policies and objectives. During the reporting period environmental protection training covered the national Green Factory and

Departments 100% of the Company's main operational bases with 2000 manuals the Jiangsu Provincial Green Factory.distributed and five environmental education warning films screened.

83 84Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Addressing Climate Change

Governance Yuwell Medical has established a comprehensive governance structure to constantly Strategy and Yuwell Medical thoroughly analyzes the risks and opportunities presented by climate

enhance its capacity to identify assess manage and disclose climate-related risks change incorporating climate change considerations into strategic decision-making.and opportunities. The Board of Directors assumes a leadership role in managing Management While accelerating green transformation the Company integrates climate risk

and deciding on climate change issues reviewing ESG-related risk and opportunity Mechanisms response into its operations to enhance overall climate resilience.assessments (including climate change topics) approving climate-related planning

objectives and their progress and overseeing implementation. The EHS Working Group

is responsible for evaluating and analyzing climate change risks and opportunities

formulating strategic objectives and implementation plans to address climate change

promoting the implementation of climate-related actions across various business units

and regularly collecting and tracking climate change-related data and target progress.Category Risk/Opportunity Description Impact Period Potential Financial Impact Response Measures

Extreme weather events (e.g. floods typhoons and high temperatures) Revenue ? Enhance the identification and management of climate change risks. Refine

Short-term

Acute Risks caused by climate change may directly damage company assets and Operating costs ? emergency response plans to boost the capacity to respond to extreme

Medium-term

production facilities impacting business continuity. Fixed asset value ? weather events optimize supply chain layout and ensure business continuity.Consistently advance energy efficiency management and intelligent

manufacturing gradually introducing production line robots and automated

Physical Risks Rising temperatures and water resource risks may affect supply chain

Chronic Risks Long-term Operating costs ? guided vehicles (AGVs) to improve production efficiency and reduce long-

stability and operational costs. term operating costs.Promptly monitor environmental and carbon-related legal and policy

Policy and Increasingly stringent policies and requirements in operational Medium-term

Operating costs ? changes in operational locations. Enhance compliance management

Regulations locations may increase costs and strengthen operational constraints. Long-term

and proactively consider policy adaptability.Constantly monitor and assess potential impacts of climate change and

Customer demands for low-carbon products and green supply chains are natural disasters on human health. Stay abreast of cutting-edge scientific

growing. While green product and technology deployment will enhance the research on disease spectrum changes caused by climate change. Intensify

Transition Risks Company's product competitiveness low-carbon transition costs will increase. product and technology R&D efforts.Market and Medium-term Revenue ?

Technology Extreme weather induced by long-term climate change may directly or Long-term Develop comprehensive decarbonization strategies. Actively implement Operating costs ?

indirectly affect human health. Changes in public health environments may new materials equipment processes and technologies. Thoroughly

necessitate potential adjustments to the Company's product R&D direction evaluate investment returns and feasibility before implementing low-

and market strategy posing certain challenges. carbon transition projects. Adopt optimal solutions based on specific

circumstances.Potential new business directions may emerge in disease areas caused

by climate change leading to new home medical device solutions.Products and Health issues brought about by climate change may drive increased Medium-term Increase R&D investment and optimize R&D layout to enhance

Services demand for home medical devices.Revenue ?

Long-term product chain competitiveness while addressing health needs.Enhancing product competitiveness and expanding new growth areas

Climate through low-carbon technology R&D and green product development.Opportunities

Further promote intelligent manufacturing initiatives. Widely implement

Adopting energy-saving technologies and equipment to reduce energy

Resource Short-term energy-saving technologies and equipment in production processes to

consumption in production processes achieving both cost savings and Operating costs ?

Efficiency Medium-term create a green and efficient energy utilization system and reduce long-

environmental protection.term operating costs.

85 86Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Green Products Green Health Materials

Yuwell Medical integrates green innovation principles into product development. Throughout packaging design production distribution

transportation and sales the Company actively employs new materials equipment processes and technologies to promote modular The Company selects renewable and recyclable materials for its oxygen concentrators. High-efficiency compressors are

lightweight low-energy consumption and environmentally friendly design delivering more sustainable high-quality products. utilized to enhance oxygen production efficiency. Advanced molecular sieve adsorption materials are employed to optimize

the oxygen production process improving nitrogen-oxygen separation efficiency and reducing energy consumption.The Company rigorously implements comprehensive hazardous substance control requiring suppliers to provide raw and auxiliary

materials that comply with the EU Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) Directive. Self- The Company has introduced electronic blood pressure monitors that use rechargeable lithium batteries. These can be

assessments are conducted in accordance with the Green Supply Chain Management Evaluation Requirements achieving a green recharged and used multiple times offering a more sustainable alternative to conventional disposable alkaline batteries.supply chain management index of 82.5 (exceeding the 80-point threshold) meeting the criteria for an excellent green supply chain The Company chooses materials compliant with the RoHS directive. Strict controls are implemented over harmful substances

management enterprise. This ensures that risks associated with chemical substances affecting human health and the environment in the such as mercury lead cadmium and hexavalent chromium significantly minimizing their impact on human health.Company's production and operations are minimized.The Company selects packaging suppliers and products that meet environmental certification standards such as ISO 14001

Green Packaging Environmental Management System certification. This ensures that all procured packaging materials adhere to environmental

protection requirements.In packaging design production distribution transportation and sales the Company prioritizes packaging simplification

while maintaining product safety. It emphasizes the use of recyclable materials and promotes packaging material reduction Low-Carbon Operations

throughout the product lifecycle through internal circulation resource recycling and reuse thereby minimizing natural Yuwell Medical ensures compliance with ISO 50001 Energy Management System requirements. The

resource consumption and environmental impact. Yuwell Medical's Company has developed comprehensive energy management policies including the Energy Management parent company

System Manual. To support the development of energy management objectives and plans a robust energy and two of its

management framework has been implemented. Regular energy conservation audits are conducted subsidiaries have

with energy-saving and emission-reduction initiatives pushed forward through three key dimensions of obtained ISO 50001

The Company advocates for recyclable The Company has launched the innovative management-driven conservation technological conservation and energy structure optimization—all with Energy Management

biodegradable or reusable packaging materials Reusable Box project to decrease packaging the goal of achieving low-carbon operations. Energy management objectives are annually updated and System certification.such as cardboard and biodegradable plastics material usage for consumer-end shipments. incorporated into performance evaluations to ensure alignment with sustainability goals.to reduce environmental impact. For instance This recycling model achieves efficient resource

biodegradable materials like 400g white cardboard utilization significantly reducing waste disposal Energy Management Strategy

are used for packaging temperature fetal heart costs and environmental burden. Yuwell Medical is actively developing a big data platform for energy management. This platform establishes an integrated energy

and blood oxygen products. Foam liners have control system encompassing data collection process monitoring and energy management. Through multi-level metering devices

been replaced with recyclable air column bags the Company achieves centralized monitoring of various energy media and key energy-consuming equipment. This enables

made of LLDPE/NYLON co-extruded film reducing comprehensive closed-loop management from energy planning to statistics analysis and assessment ensuring the safe reliable

plasticization volume. economical and efficient operation of energy systems. This approach facilitates the transition of energy management from an

experience-based model to an analysis-driven one and from manual processes to digital operations.Modular Lightweight and Low Energy Consumption Design

Integrated Monitoring Energy Indicators

Electric Wheelchairs: A lightweight product series has been developed with an average weight reduction of approximately 5kg across

the new product line and a 10% decrease in folded size reducing packaging volume and material usage. All models incorporate a low-

power consumption design for the control unit reducing standby power consumption from 3mA to 0.8mA extending standby time Statistical Accounting

while reducing energy consumption.Electronic Blood Pressure Monitors: Platform-based design concepts are adopted for air circuit modules and circuit modules to reduce Energy Plan

material redundancy. Intelligent standby design and smart control modes are employed to further minimize power consumption.Oxygen Concentrators: Modular and easy-maintenance designs are implemented for convenient disassembly and repair extending

product lifespan and reducing waste materials. A built-in intelligent pulse oxygen supply system provides oxygen only when the user

inhales preventing unnecessary oxygen and energy waste. Design focus is on miniaturization of spatial dimensions and equipment This system is founded on statistical accounting and enhanced by integrated monitoring. It oversees energy plan

weight reduction improving portability and transportation efficiency. execution supplemented by control and adjustment measures. The system focuses on energy indicators reinforces

Temperature Products: Modular and lightweight design principles are applied with a shared temperature measurement module thematic analysis and supports energy forecasting decision-making and performance evaluation.for the preheating platform (YHT108 YHT201 YHT202 YHT208 YHT207 share the temperature measurement module) enhancing Energy Energy In-process In-process

resource efficiency. Pre-planning Post-analysis Post-evaluationForecasting Decision-making Accounting Control

8788

88

Performance Evaluation

Thematic Analysis

Control and Adjustment

Energy Decision-making

Energy ForecastingJiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Energy Conservation and Emission Reduction Actions Indicators and Targets

Management-Driven Conservation Technological Conservation

Indicator and Target 2024 Achievement Status

An energy management center has been established equipped High-energy-consuming low-efficiency outdated equipment

with a smart online monitoring system. This system allows for is systematically replaced. All operational sites have adopted Comprehensive energy consumption per unit of

real-time tracking of energy consumption unit energy usage intelligent centralized energy systems with common equipment Comprehensive energy consumption per unit of output output value ≤ 6.08 kg standard coal equivalent/

energy trends and operational parameters making it easy to such as air compressors transformers water pumps chillers value: 5.64 kg standard coal equivalent/RMB 10000RMB 10000

spot unusual consumption patterns. Thorough analyses of the and cooling towers upgraded to energy-saving models. Energy-

Air compressor efficiency ≥ 85% pressure ≥ 0.75 Air compressor efficiency ≥ 85% pressure ≥ 0.75 exhaust

energy data help identify opportunities for savings and develop efficient lighting has been implemented across 100% of facilities

exhaust temperature < 100° C temperature 80° C Target

more effective conservation strategies. This informs timely resulting in significant operational emission reductions. In 2024 a achieved

adjustments to production management and processes chiller frequency conversion renovation project was implemented Power distribution power factor ≥ 96% line loss Power distribution power 97% line loss rate ≤ 3%

facilitating fine-grained energy management. reducing electricity consumption by 633600 kWh. New energy- rate < 5%

Off-peak electricity consumption is utilized with high-power efficient permanent magnet variable frequency air compressors Ground source heat pump efficiency COP ≥ 5.4 Ground source heat pump efficiency COP ≥ 5.4

equipment usage scheduled during nighttime hours while were introduced further reducing electricity consumption by

450000 kWh. Screw chiller efficiency COP ≥ 5 Screw chiller efficiency COP ≥ 5maintaining production efficiency and equipment safety to

boost energy efficiency. Water-circulation air conditioning systems have been introduced

Note: Statistics pertain to Yuwell Medical's parent company.Natural lighting is maximized and green office practices are offering superior energy efficiency low noise levels and enhanced

actively promoted to reduce energy consumption and waste environmental performance. Compared to traditional air

emissions. conditioning these systems can reduce energy consumption by Indicator Unit 2024

over 30% while providing higher cooling efficiency. The elimination

of refrigerants in these systems further reduces pollution. Gasoline tons 52.86

Energy Structure Optimization Intelligent manufacturing practices are constantly advanced Diesel tons 37.93

including the introduction of automated production lines and

The proportion of clean and renewable energy use is being robotic technologies. More efficient production techniques and Natural gas million m3 1.01

increased raising the share of green electricity in the Company's processes are applied with real-time monitoring and adjustment Energy Purchased electricity million kWh 39.84

energy mix through ongoing investment in photovoltaic systems of equipment status to reduce energy consumption per unit of Consumption

and green electricity purchases. output value. Total energy consumption tons of standard coal equivalent 6368.69

tons of standard coal

Energy consumption intensity 0.0084

equivalent/RMB 10000 revenue

Impact Risk and Opportunity Management Direct greenhouse gas emissions (Scope 1) tons of CO2 equivalent 2456.42

Yuwell Medical has implemented a comprehensive process and framework for managing climate-related risks and opportunities. Indirect greenhouse gas emissions (Scope 2) tons of CO2 equivalent 21380.41

This system is designed to identify assess and manage significant climate change risks and opportunities enabling the Company to Greenhouse Gas Total greenhouse gas emissions (Scope 1

develop evidence-based climate change response strategies and enhance its overall climate resilience. Emissions tons of CO2 equivalent 23836.83and Scope 2)

tons of CO2 equivalent/RMB

Identification of The Company identifies climate risks and opportunities in alignment with recommendations from Greenhouse gas emission intensity 0.031510000 revenue

Climate Risks and frameworks such as the IFRS S2 Climate-related Disclosures and the Self-Regulatory Guidelines

Opportunities No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (Trial).Photovoltaic power Green electricity

Through thorough internal and external environmental analysis and the use of risk management generation during the year purchased

Assessment of Climate

tools the Company evaluates the probability of risks occurring the potential impact of these risks

Risk and Opportunity

and their financial implications. This process helps to pinpoint significant climate change risks and

Materiality 8.70million kWh 0.50million kWh

opportunities and their potential effects on the Company's operations.Total renewable energy

Material risks and opportunities are fully integrated into the Company's risk management consumption

Management of Climate system. Comprehensive climate risk response action plans are developed and targeted risk

Risks and Opportunities management and response measures are implemented. The execution of these plans is 9.20million kWh

regularly monitored to ensure active response to climate change challenges.Heyang Photovoltaic Power Generation Project Phase II (newly built)

89 90Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Reducing

Environmental Impact

Water Resource Management

Yuwell Medical primarily sources its production and office water from

municipal supplies. All major production and operational sites that

consume significant water are strategically situated in areas with

relatively low water stress risk. The Company has developed the Yuwell

Medical Water Conservation Management System implementing a

comprehensive water planning and management approach. This

involves developing detailed water-saving plans and setting annual

water usage targets which are assigned to key departments that

consume the most water and monitored by designated personnel.The Company also actively promotes production process optimization

and equipment upgrades to promote sustainable water use.During the reporting period Yuwell Medical underwent a rigorous

water-saving enterprise evaluation in accordance with the Evaluating

Guide for Water Saving Enterprises. The Company successfully met

all basic requirements management assessment indicators and

technical benchmarks thereby qualifying as a water-saving enterprise.Develop comprehensive water resource usage plans rationally allocate water resources implement stringent quota

management and regularly assess and supervise water usage with a system of rewards for conservation and

penalties for excess use.Annually allocate dedicated funds for water-saving projects technological upgrades and procurement of efficient Total water withdrawal Surface water Groundwater

water-saving equipment such as advanced cooling towers to improve water resource utilization efficiency. For Municipal water withdrawal withdrawal withdrawal

example Shanghai Medical Instruments Group upgraded open cooling towers to closed-circuit types significantly

Water reducing water evaporation and cutting annual water consumption from over 30000 tons to approximately 4000 tons. 694000 tons 0tons 0 tons

Conservation 694000

Conduct regular inspections and maintenance to prevent water leakage and waste. tons

Enhance employee training on water conservation practices and actively encourage staff to propose innovative water-

saving technical improvements fostering a culture of research and innovation.Total water discharge Total water consumption

Actively promote water recycling initiatives in production and operations including the reuse of cooling and

process water as well as wastewater treatment and reuse. These efforts aim to improve water efficiency

while reducing the environmental impact of wastewater discharge on surrounding water bodies. 244600 tons 449400tons

Water Implement rainwater harvesting systems collecting rainwater in on-site reservoirs for landscape irrigation

Recycling which resulted in saving 1440 tons of water from natural precipitation in 2024.Water recycling volume Water recycling rate

Construct robust pipeline networks to prevent production and operation disruptions due to potential

water supply interruptions. Carefully consider water resource risks in new project site selection processes

Water Risk constantly monitor water scarcity risks and regularly evaluate water-related strategies to ensure a stable 39600tons 5.40%

Reduction and sufficient water supply for essential production operations.

91 92Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Emissions and Waste Management

Yuwell Medical upholds a clean and green production and operational model. It strictly adheres to relevant laws and regulations including

the Regulation on the Administration of Permitting of Pollutant Discharges and has implemented the Yuwell Medical EHS Management Indicator 2024

Manual to meticulously manage exhaust gas emissions wastewater discharge and solid waste disposal. The Company mandates that

pollution prevention facilities be designed constructed and commissioned concurrently with the main project. Regular self-monitoring is Chemical oxygen demand (COD) (tons) 1.21

conducted by accredited third-party testing institutions with environmental monitoring data promptly disclosed to ensure 100% compliant

discharge of all waste types thereby minimizing the environmental impact of emissions. Throughout the reporting period the Company

recorded no major environmental incidents facing no administrative penalties or criminal charges from environmental protection Ammonia nitrogen emissions (tons) 0.09

authorities for such incidents. There were no instances of excessive or illegal discharge of air or water pollutants.Wastewater Management

The Company's wastewater primarily stems from domestic sewage R&D activities and manufacturing processes. Yuwell Medical Exhaust Gas Management

rigorously complies with pertinent laws regulations and local standards including the Law of the People's Republic of China on Yuwell Medical's production processes primarily generate emissions including volatile organic compounds (VOCs) nitrogen oxides

Water Pollution Prevention and Control the Integrated Wastewater Discharge Standard and the Reuse of Urban Recycling Water (NOx) sulfur oxides (SOx) and particulate matter (PM). The Company rigorously adheres to the Law of the People's Republic of China

- Water Quality Standard for Industrial Uses. The Company has established a comprehensive Wastewater Management System to on the Prevention and Control of Atmospheric Pollution and local air pollutant emission standards. In compliance with the internal

enhance online monitoring and regular inspections ensuring compliant treatment discharge and recycling of production and Exhaust Gas Management System it implements comprehensive emission controls across all facilities ensuring exhaust gas emissions

operational wastewater. A rainwater and sewage diversion system is implemented. Rainwater is channeled into the municipal meet standards after treatment through proper devices. Monitoring and sampling ports have been installed at key outlets and regular

rainwater network while production wastewater undergoes on-site treatment with a portion reused in production and the remainder assessments of critical parameters such as exhaust gas composition concentration and flow rate are conducted to effectively mitigate

废气管理 discharged externally. High-concentration organic wastewater is subjected to pretreatment before being combined with various types air pollution risks. In 2024 Zhongyou Likang upgraded its exhaust gas treatment facilities in workshops transitioning from photocatalytic

of washing water and alkaline scrubber wastewater in a mixing pool for detoxification. Subsequently 60% of the treated wastewater is units to activated carbon adsorption systems achieving an organized exhaust gas treatment efficiency of over 90%.discharged into the municipal sewage network while 40% enters the water reuse treatment system. After meeting quality standards

this reclaimed water is utilized for rinsing in production lines resulting in an annual water savings of approximately 4380 tons. Indicator 2024

Case Industrial Wastewater Treatment Project

Nitrogen Oxides (NOx) emissions (tons) 0.18

Yuwell Medical's industrial wastewater treatment project emphasizes technological advancement and operational efficiency. Sulfur Oxides (SOx) emissions (tons) 0.02

Utilizing mature and proven wastewater treatment technologies combined with an automated control system it precisely

optimizes operational parameters and ensures consistent compliance with effluent standards. The project opts for high-

quality energy-efficient local equipment and streamlines operational procedures via integrated design substantially reducing Volatile Organic Compounds (VOCs) emissions (tons) 1.12

management complexity and minimizing the risk of human error. After treatment 40% of the industrial wastewater is reintroduced

into the production process for recycling achieving exemplary resource recovery while preventing secondary pollution risks Particulate Matter (PM) emissions (tons) 0.08

through whole-process pollution control measures thus establishing a sustainable wastewater management model.Degreasing

Wastewater

Spray

Wastewater

9394

Production Reuse

Reclaimed Water System

Discharge Tank Sludge

Dewatering

Standardized

Fenton Oxidation Tank

Outlet

MER Reactor

A/O Tank

Mixing Tank

Fenton Oxidation Tank

Air Flotation Tank

Regulation

Regulation Tank

TankJiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Waste Management Indicator 2024

Yuwell Medical strictly complies with the Law of the People's

Republic of China on the Prevention and Control of Environmental Non-hazardous waste generated (tons) 250.75

Pollution by Solid Waste and other relevant laws and regulations. Waste Management Goal: Reduce pollutant

The Company has implemented the General Solid Waste emissions per unit of product by

Management System and the Hazardous Solid Waste Management Waste emissions Non-hazardous waste recycled (tons) 206.00

System establishing rigorous waste handling procedures and

safety protocols. Adhering to the principles of reduction resource

utilization and harmlessness it maintains strict control over 2.5% Hazardous waste generated (tons) 66.45

waste throughout the entire lifecycle of production storage in 2024 compared to 2023 levels.transportation and disposal. During the reporting period the

Company recorded no violations related to waste disposal.Biodiversity Protection

Hazardous Waste Yuwell Medical maintains strict adherence to national and local biodiversity protection laws and regulations actively fulfilling its

commitments under the UN Convention on Biological Diversity. Biodiversity protection measures are integrated into all stages

The Company's hazardous solid waste includes waste filter bags sludge spent activated carbon from exhaust gas treatment processes waste of project planning design construction and operation. Prior to project construction the Company conducts comprehensive

filter cotton chemical packaging containers waste mechanical oil waste emulsions and oil sludge. A hazardous waste storage facility has been environmental risk factor identification and hazard investigations meticulously observing ecological red line requirements. During

established equipped with waterproofing and anti-leakage measures. All hazardous waste is meticulously classified temporarily stored and project operations the Company implements continuous environmental monitoring protocols to promptly identify and address

managed by specialized personnel in strict accordance with the Standard for Pollution Control on Hazardous Waste Storage (GB18597-2023). potential issues actively engaging in ecological restoration and protection initiatives. Throughout the reporting period Yuwell Medical

The Company regularly engages qualified professional entities to ensure the safe and effective disposal of hazardous waste. maintained no production facilities or operational sites within ecological protection areas or regions of high biodiversity value. None

of its production activities products or services had a significant impact on biodiversity.The Precision Integrated Workshop utilizes cutting- The Company collaborates with third-party

edge production equipment capable of filtering comprehensive utilization and disposal units to

and reusing spent emulsions potentially reducing recycle hazardous waste such as waste cutting

waste emulsion treatment by approximately 30% fluids waste emulsions and waste machine oils

annually. reducing hazardous waste by 10 tons annually.Non-hazardous Waste

The Company's non-hazardous solid waste encompasses

waste metal scraps metal dust general packaging containers

and office supply waste. General production solid waste Comprehensive utilization

undergoes thorough collection for recycling while domestic rate for general solid waste

waste is systematically collected and regularly removed

by local sanitation departments. The Company employs

innovative wireless e-ink screens to display real-time inventory

data prioritizes emails and electronic files to achieve paperless 100%

operations and has implemented a consumables requisition

registration system to minimize waste generation.

95 96Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Key Performance Table

Corporate Governance

Business Ethics and Anti-corruption Water Utilization

Indicator Unit 2023 2024 Indicator Unit 2023 2024

Coverage rate of anti-corruption training % 100% 100% Total water withdrawal tons 561377.9 694019.38

Average anti-corruption training duration per employee hours 2 6.7 Water recycling rate % / 5.40%

Environmental Performance

Emissions and Waste1

Environmental Management

Indicator Unit 2023 2024

Indicator Unit 2023 2024

Waste emission compliance rate % 100% 100%

Total investment in environmental protection1 million RMB 7.02 4.82

Total wastewater discharge1 tons 3566 2852

Environmental protection training coverage rate % 100% 100%

Hazardous waste generation tons 48.38 66.45

Environmental incidents throughout the year cases 0 0

Non-hazardous waste generation tons 245.58 250.75

Note 1: In 2023 the Company made significant investments in environmental protection facilities. In 2024 the focus shifted to maintenance resulting

in lower expenditure. Nitrogen oxides (NOx) tons / 0.18

Sulfur oxides (SOx) tons / 0.02

Energy Use and Greenhouse Gas Emissions1 Volatile organic compounds (VOCs) tons / 1.12

Indicator Unit 2023 2024 Particulate matter (PM) tons / 0.08

Gasoline tons 76.40 52.86

Note 1: Statistics pertain to Yuwell Medical's parent company.Diesel tons 33.27 37.93

Natural gas million m3 0.86 1.01

Purchased electricity million kWh 34.92 39.84 Social Performance

tons of standard

Total energy consumption 5600.27 6368.69

coal equivalent R&D Innovation

tons of standard coal

Energy consumption intensity 0.0070 0.0084 Indicator Unit 2023 2024

equivalent/RMB 10000 revenue

Annual R&D investment million RMB 504.37 546.68

Direct greenhouse gas emissions (Scope 1) tons of CO2 equivalent 2201.36 2456.42

Indirect greenhouse gas emissions (Scope 2) tons of CO2 equivalent 19916.69 21380.41 R&D investment as a percentage of revenue % 6.33% 7.23%

Total greenhouse gas emissions (Scope 1 and 2) tons of CO2 equivalent 22118.05 23836.83

tons of CO equivalent/RMB

Greenhouse gas emission intensity 2 0.0277 0.0315

10000 revenue Customer Rights

Note 1: The data is based on guidelines including the Greenhouse Gas Protocol published by the World Resources Institute (WRI) and the World Business

Council for Sustainable Development (WBCSD) ISO 14064-1:2018 – Specification with guidance at the organization level for quantification and reporting Indicator Unit 2023 2024

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 Market Regulation and the Standardization Administration of China. For Scope 2 greenhouse gas emissions the emission factor for Customer complaint handling rate % 100% 100%

purchased electricity is based on the Announcement on the Release of the 2022 Carbon Dioxide Emission Factors for Electricity Generation (Announcement B2B customer satisfaction rate % 96.2% 97.2%

No. 33 [2024]) jointly issued by the Ministry of Ecology and Environment and the National Bureau of Statistics. The greenhouse gas emission data presented

in the table is calculated using the location-based method. Under the market-based method Scope 2 emissions would amount to 18238.06 metric tons B2C customer satisfaction rate % 97.25% 97.7%

with an emission intensity of 0.0274 metric tons of CO2 equivalent per RMB 10000 of revenue.

97 98Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

Social Performance

Employment Equality and Diversity

Indicator Unit 2023 2024 Indicator Unit 2023 2024

Total number of employees persons 6114 6346 Incidents of employee discrimination/harassment cases 0 0

Number of new hires during the reporting period persons 1247 2368

Proportion of female employees in middle and

%29%31.25%

Number of newly recruited fresh graduates persons 68 146 senior management

Number of employees by gender

Male employees persons 3482 3734

Employee Training and Development

Female employees persons 2632 2612

Indicator Unit 2023 2024

Number of employees by age

Total investment in employee training1 million RMB 10.08 3.20

Employees aged 30 and under persons 1586 1810

Employees aged 31-50 persons 3902 4135 Total training attendances attendances 34356 35762

Employees aged 51 and above persons 626 401 Total training hours hours 171780 223874

Number of employees by hierarchical level

Average training hours per employee during the year hours 24.7 35.28

Senior management persons 135 135

Note 1: Total employee training expenditure in 2023 includes expenses for overseas study programs.Middle management persons 306 313

Frontline employees persons 5673 5898

Occupational Health and Safety

Number of employees by educational level

Indicator Unit 2023 2024

Employees with bachelor's degree or above persons 2081 2501

Employee occupational disease incidence rate % 0% 0%

Employees with associate degree persons 1559 1612

Employees with degrees below associate level persons 2474 2233 Health and safety training coverage rate % 100% 100%

Number of employees by region

Employees from China (including Hong Kong

persons 6020 6234

Macao and Taiwan) Public Welfare

Number of overseas employees persons 94 112 Indicator Unit 2023 2024

Employee satisfaction rate % 83.6% 81.9% Total charitable contributions million RMB 42.87 1.47

99 100Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

About This Report Index Table

This report is the second sustainability report of Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. (hereinafter referred The Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen

to as "Yuwell Medical"). It is prepared in accordance with the principles of objectivity standardization transparency and

comprehensiveness and presents the Company's philosophy management practices and performance in the field of sustainable Stock Exchange — Sustainability Report (Trial)

development while fully addressing key issues of concern to stakeholders.Disclosure Requirements Corresponding Section in This Report

Addressing Climate Change Addressing Climate Change

Reporting Scope Reporting Principles Pollutant Emissions Strengthening Environmental Management Reducing Environmental Impact

The report highlights the information and key performance This report adheres to the principles of materiality quantification Waste Disposal Strengthening Environmental Management Reducing Environmental Impact

of Yuwell Medical and its subsidiaries in fulfilling governance balance and consistency.social and environmental responsibilities in 2024. Ecosystem and Biodiversity Protection Reducing Environmental Impact

Environmental Compliance Management Strengthening Environmental Management Reducing Environmental Impact

Source of Information Energy Utilization Addressing Climate Change

All the information and data used in the report are sourced

Definition of Terms Water Resources Utilization Reducing Environmental Impactfrom the Company's official documents statistical reports and

For ease of expression and reading Jiangsu Yuyue Medical financial statements as well as information on sustainable Circular Economy Reducing Environmental Impact

Equipment & Supply Co. Ltd. is referred to as "Yuwell Medical" development practices of each unit that have been gathered

and reviewed by the responsibility management department Rural Revitalization Safeguarding Life and Health — Supporting Rural Revitalization"the Company" or "we" in this report.of the Company. Unless otherwise specified all monetary Social Contribution Safeguarding Life and Health

amounts mentioned in this report are measured in RMB.Innovation-Driven Development Empowering Health Through Innovation

Technology Ethics Empowering Health Through Innovation — Technology Ethics

Timeframe Assurance of Accuracy Supply Chain Security Sustainable Supply Chain

This report covers the period from January 1 2024 to December The Company assures that this report contains no false Equal Treatment of Small and Medium-sized

31 2024 with certain content moderately extended to previous records misleading statements or significant omissions and Sustainable Supply ChainEnterprises

and subsequent years. This report is an annual report. is accountable for the authenticity and accuracy of its content.Product and Service Safety and Quality Commitment to Uphold Quality

Data Security and Customer Privacy Protection Information Security and Privacy Protection

Basis of Preparation Access to the Report

Employees Human Capital Development Protection of Employee Rights

This report has been prepared with reference to the GRI This report is published in both print and PDF formats. The

Standards issued by the Global Sustainability Standards electronic version is available on the official website of Yuwell Due Diligence Sustainable Development Management

Board (GSSB); the Self-Regulator y Guidelines No. 17 Medical (www.yuwell.com) and on CNINFO (www.cninfo.com. Stakeholder Communication Sustainable Development Management

for Companies Listed on Shenzhen Stock Exchange — cn). In our ongoing efforts to improve our reporting process

Sustainability Report (Trial) ; the Self-Regulatory Guidelines we value your feedback and suggestions. Should you have Anti-commercial Bribery and Anti-corruption Adherence to Business Ethics

No. 3 for Listed Companies on Shenzhen Stock Exchange — any questions or suggestions regarding this report please Anti-unfair Competition Adherence to Business Ethics — Anti-Unfair Competition

Preparation of Sustainability Reports (Trial) ; the European contact us via email at yuwellzqb@yuyue.com.cn or by phone

Sustainability Reporting Standards (ESRS); the national at 0511-86900876. Voluntary Disclosure Issues Corresponding Section in This Report

standard Guidance on Social Responsibility Reporting Corporate governance Enhancing Corporate Governance

(GB/T 36001-2015); and the United Nations Sustainable

Development Goals (SDGs). Risk management Enhancing Corporate Governance

Digital operations Commitment to Uphold Quality

Health accessibility Access to Quality Healthcare

Industrial cooperation and development Empowering Health Through Innovation Access to Quality Healthcare

101 102Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2024 Sustainability Report

GRI Content Index

This report has been prepared with reference to the GRI Standards by Yuwell Medical. The

Statement of Use

reporting period covers January 1 2024 to December 31 2024.GRI Used GRI 1: Foundation 2021

Reporting Framework GRI 1: Foundation 2021

Message from the Chair 2-22/2-23

About Yuyue Medical 2-1/2-2/2-4/2-6/2-16/201-1

Sustainable Development Management 2-12/2-13/2-14/2-16/2-19/2-22/2-29/3-1/3-2/3-3

Steady and Long-Term Progress: Advancing Towards High-Quality Development

Enhancing Corporate Governance 2-9/2-10/2-12/2-15/2-27/405-1

Adherence to Business Ethics 2-27/3-2/205-1/205-2/205-3/206-1

Information Security and Privacy Protection 418-1

Sustainable Supply Chain 2-6/3-2/204/308-1/308-2/414-1/414-2

Innovation-Driven Development: Empowering Life Through Technology

Empowering Health Through Innovation 2-6/2-27/416-1

Commitment to Uphold Quality 2-6/2-25/2-27/3-2/416-1/416-2/417-1/417-2/417-3/418-1/419-1

Access to Quality Healthcare 2-23/2-27/203-1/203-2

People-Centered Approach: Safeguarding Lives and Empowering People

Human Capital Development 401-2/404-1/404-2/404-3

2-7/401-1/403-1/403-2/403-3/403-4/403-5/403-6/403-7/403-8/403-9/403-

Protection of employee rights

10/405-1/406-1

Safeguarding Life and Health 3-2/203-1/203-2/413-1

Environmental Friendliness: Creating a Shared Green Future

Strengthening Environmental Management 3-2/2-27/307-1

Addressing Climate Change 201-2/302-1/302-3/302-4/302-5/305-1/305-2/305-4/305-5

2-27/303-1/303-3/303-5//304-3/305-7/306-1/306-2/306-3/306-4/306-5/

Reducing Environmental Impact

103 104Jiangsu Yuyue Medical Equipment & Supply Co. Ltd.

Yuwell Medical stock code: 002223

Address: No.1 Baisheng Road Development Zone Danyang City Jiangsu Province China

Tel: 86-0511-8690 0876

E-mail: yuwellzqb@yuyue.com.cn