2023 Sustainability Report
1CONTENTS
01 Message from the Chairman 09 Efficient Governance: 47 Environmentally Friendly: 81 Key Performance Table
Marching Towards a New Era Accelerating Green and Low-
03 About Yuwell Medical of High-Quality Development Carbon Transition 85 About This Report
05 Sustainable Development 11 Strengthening Corporate Governance 49 Enhancing Environmental Management 86 Index Table
Management
14 Adherence to Business Ethics 51 Green Product Design
17 Full Supply Chain Coordinated Management 52 Addressing Climate Change
21 Sustainable Supply Chain 56 Reducing Environmental Impact
26 Information Security and Privacy Protection
29 Leading Through Innovation: 59 Talent-oriented:
Energizing Life via Technology Achieving the Value of Life
31 Driving the Future through Innovation 61 Growing Together with Employees
34 Advancing in Smart Healthcare 75 Safeguarding Life and Health
38 Commitment to Uphold QualityJiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Message from the Chairman
The passing of time brings constant renewal and progress. services through the "Yuwell Health Manager" platform among management we achieved holistic closed-loop management produce charitable short films to bring more warmth and care
2023 holds significant importance for Yuwell Medical. others. This initiative enabled us to further our cooperation from energy planning to statistics analysis and assessment. to diabetics. For five consecutive years we have supported
The ongoing enhancements in living conditions and the with multiple partners and made significant progress in Moreover continuous upgrades in equipment technology led to the Jack Ma Rural Teachers Initiative with medical health
increasingly aging population have led to a swift rise in constructing a digital healthcare ecosystem moving a step an increasing share of green electricity. The comprehensive energy gift packs and donated nearly 20000 medical-grade oxygen
healthcare needs and quality expectations. In an era of closer to completing the smart healthcare service loop. By the consumption per unit of product value greenhouse gas emissions generators to rural healthcare institutions in central and
accelerated industry transformation clear advancements end of the reporting period our digital health services had and energy consumption per unit of output have been effectively western China. Moreover our staff have ventured into high-
in green and smart technologies are being made. We have covered 200000 Yuwell health products. Furthermore Yuwell controlled with the annual energy management goal being altitude outposts over 5000 meters above sea level multiple
deeply integrated the concept of ESG into our operational Medical took the lead in drafting and filing the Standards for 100% achieved. We also adopt green innovation principles in our times to deliver high-quality and reliable highland oxygen
development significantly enhancing our R&D innovations Data Collection and Application of Home Medical Devices product development striving for miniaturization relentlessly concentrators to residents aid workers and stationed troops
actively pushing forward digital and intelligent transformation significantly enhancing the security of data collection and pursuing compactness lightweight structures energy efficiency in Xizang all to protect life and health.and consistently improving product accessibility. This application in home medical devices. and green health-focused designs committed to delivering
year we have focused both on foundational growth and environmentally friendly superior-quality products. Staying grounded and determined we never forget our initial
breakthroughs progressing simultaneously in quality Leveraging digital intelligence for efficient operations. aspirations as we tirelessly strive forward. Yuwell Medical will
enhancement and efficiency improvement. Yuwell Medical prioritizes the critical relationship between Driven by talent moving forward with vitality. Yuwell continue to drive high-quality sustainable growth through its
medical device safety and health. The Company actively Medical focuses on a "consumer-oriented digitalized and youth- consistent focus on ESG. In partnership with key stakeholders
Yuwell Medical has upheld a strong sense of responsibility embraces technological advances and has developed a focused" talent development strategy. We have established the we maintain our ethical standards and push for innovation
and commitment throughout its development journey. For data-driven multi-platform deeply interactive intelligent Yuwell Learning and Development Center to create unique talent confidently progressing towards a new era where economic
Yuwell Medical ESG is not an optional task but an essential manufacturing ecosystem incorporating digital technologies development programs with a product-driven approach. We also social and environmental benefits are mutually realized.requirement for achieving high-quality growth on a global scale. into comprehensive business chain management. The collaborate with external professional organizations and invite
Over the years we have steadfastly held the vision of leading Yuwell Intelligent Manufacturing Factory is one of the few top industry experts to conduct exchanges and training sessions. Wu Qun
industry development through innovation and enhancing national-level intelligent manufacturing pilot companies in Through a combination of training and practical learning Chairman and General Manager of Jiangsu Yuyue
the health of millions of families. Our commitment is focused the medical device field and continually improves its lean solutions and diverse learning formats we consistently enhance Medical Equipment & Supply Co. Ltd.on health and driven by technology constantly seeking new practices business efficiency and product quality through our talent competitiveness. The Company has also developed
pathways and models in ESG development. This commitment automation informatization and intelligence. In its ongoing a compensation and benefits system that is both externally
drives our sustainable growth and fuels our efforts to contribute upgrades the factory has developed the capacity to handle competitive and internally fair ensuring employee health and
to global healthcare initiatives. This inaugural sustainability complex processes and very high-quality demands offering well-being. Events like YUWELL DAY promote cultural integration
report released by Yuwell Medical is intended to communicate more competitive health products and services. By harnessing and efficient collaboration creating a diverse equal inclusive
our profound contemplation and management practices on the power of intelligent manufacturing and digitalization and warm workplace. Employee satisfaction has consistently
sustainability with the wider community. Our aim is to express Yuwell Medical has established an efficient end-to-end quality improved earning Yuwell Medical the titles of Best Employer of
our genuine desire to work together in building innovating and management system for the entire product lifecycle along the Year Outstanding Human Resources Management Award
sharing a sustainable future. with a comprehensive multi-channel customer service system and Best Talent-Nurturing Employer in 2023.which have significantly enhanced customer satisfaction and
Empowering healthcare through innovation. Following product experience. In 2023 the first-time inspection pass rate Embracing responsibility and protecting health. With a
the new strategy of "reshaping medical devices through of these systems reached 99.73% with customer satisfaction commitment to "alleviating patient suffering and enhancing
innovation" Yuwell Medical puts innovation at the forefront of rates at the B2B and B2C fronts being 96.2% and 98.5% doctors' medical skills" Yuwell Medical persistently explores
its development. We consistently increase investment in R&D respectively. Additionally the Company has been recognized charitable models that resonate with current times and
and explore new areas and create new advantages through with the Digital Service Management Innovation Award. societal demands. In 2023 the Company invested 42.874
technological innovation delivering more valuable healthcare million yuan in public welfare supporting emergency medical
solutions to society. In 2023 the company made significant Rooted in green committed to environmental friendliness. care diabetes care and rural healthcare infrastructure. We
strides by capitalizing on its extensive global research and Yuwell Medical incorporates the principles of green ecology are actively engaged in emergency medical assistance. The
development network and numerous national-level and and sustainability into its operational activities advocating for Flying Fish Rescue Team alongside professional race security
provincial scientific platforms. We made breakthroughs in the implementation of the EHS Management System across organizations has provided free support for over a thousand
critical industry technologies and secured a series of patents all business areas. Attentive to the challenges and prospects global marathon events. The Yuwell Primedic rescue ecosystem
and standards that are at the forefront internationally and that climate change presents the Company aims to minimize extends across more than 100 countries saving hundreds
are protected by our own intellectual property. Additionally its environmental impact while enhancing its competitiveness. of lives annually. We actively collaborate with social media
we enhanced our product development lineup making it In 2023 the Company aligned with the ISO 50001 Energy hospitals and charitable organizations to engage in managing
more robust and comprehensive thereby increasing our Management System standards to conduct comprehensive energy chronic diseases. Since 2017 we have partnered with the Love
competitive edge against top-tier global products. In the realm management promoting the construction of a big data platform Save Pneumoconiosis charity organization to support farmers
of intelligent medical solutions we created an open enabling for energy management. Through creating a unified system suffering from pneumoconiosis. We also offer free clinics and
platform and significantly extended the reach of digital health that combines data collection process monitoring and energy summer camps establish the Yuwell Diabetic Community and
01 02Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
About Yuwell Medical
Company Profile Corporate Culture
Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. (referred to as "Yuwell Medical" stock code 002223) specializes in the R&D Mission and Responsibility
production sales and service of medical devices. As a leading comprehensive provider of medical devices and solutions in
Alleviating patient suffering and enhancing
China Yuwell Medical is dedicated to offering high-quality innovative medical products and services to patients and healthcare Total assets
doctors' medical skills.institutions worldwide. billion RMB
15.967
Yuwell Medical has always committed itself to the mission of "alleviating patient suffering and enhancing doctors' medical skills" 15.095
with a consumer-centric focus on life and health care. Our products primarily span various fields including respiratory treatment 11.998
10.065
solutions diabetes care solutions infection control solutions home-use electronic testing equipment as well as in vitro diagnostic 7.966 Core Vision and Objectives
devices emergency medical devices rehabilitation devices and clinical instruments. With our eyes on the vast international Leading industry development through
market the Company's key strategy is "reshaping medical devices through innovation" which is firmly backed by our strong innovation and enhancing the health of
research and development foundation along with our capacity for technological innovation. On the bedrock of steadily advancing millions of families.our foundational businesses in blood pressure monitoring thermometry traditional Chinese medical devices and surgical 2019 2020 2021 2022 2023
tools we especially emphasize expanding in the core areas of respiratory and oxygenation systems blood glucose and POCT
and sterilization and infection control. Additionally we're proactively incubating high-potential fields including emergency care
ophthalmology and intelligent rehabilitation constantly driving industry transformation and continuously contributing to the Core Values
flourishing of ever more lives.Integrity as the foundation customers as
After years of development Yuwell Medical has prioritized substantial investment in research and development for new products Revenue the core public spirit as the driving force
and projects sustaining a leading position in scientific innovation. The Company has established multiple R&D and manufacturing billion RMB team as the source of pride performance
centers in Germany Shanghai Nanjing Suzhou Danyang Xizang Shenzhen etc. It also boasts several scientific and innovative as the proof.platforms such as the national enterprise technology center national industrial design center and national postdoctoral scientific 7.972
research workstation. Through this the Company has established an extensive global network in R&D manufacturing marketing and 7.1026.894
services with its products receiving widespread recognition. The Company also actively collaborates with medical institutions both 6.726 Philosophy
domestically and internationally working together to advance the development and progress of the healthcare industry. During the 4.636
reporting period the main business activities of the company remained consistent. Details regarding the Company's operational and We are convinced that actively managing
financial performance can be found in the Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Annual Report. and foreseeing health issues is the optimal
guarantee for the ongoing enhancement
2019 2020 2021 2022 2023 of the quality of life.
The total annual revenue reached RMB Our business operations span over
7.972 100 Net profit attributable to Brand Personalityshareholders of listed companiesbillion countries and regions around the world Mission-driven eager to help full of hope
billion RMB scientific and rational.
2.396
1.759
1.4821.595
0.753
Brand Proposition
Focused on health driven by technology
20192020202120222023
03 04Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Sustainable Development Management Stakeholder Communication
Yuwell Medical places great emphasis on the expectations and demands of its stakeholders maintaining effective communication
with them through a positive and open approach. The Company consistently refines its diverse and regular internal and external
communication strategies to actively address the concerns of all stakeholders.Sustainable Development Management System
At Yuwell Medical quality and sustainability are always at the forefront. The Company is committed to refining its systems for Stakeholders Issues of concern Main communication methods
environmental social and corporate governance. It amplifies the Board's active supervision and engagement in ESG matters * Compliance operations
taking ESG as a critical driving force to enhance compliance management foster high-quality growth and boost corporate * Specialized meetings or reports
competitiveness. The Board of Directors as the governing body responsible for economic environmental and social issues * Product quality and safety
participates in and manages the potential impacts and risk assessments of ESG issues on the Company's operational framework. * Business ethics and anti-corruption * Feedback on policy consultation
It supervises and ensures the effective implementation of ESG objectives strategies and plans and guarantees the seamless * Information security and privacy protection * Official visits
integration of ESG strategies into various departments and key business processes. Please refer to the section "Strengthening Government & management * Compliance regulatory inspections
Corporate Governance / Board Diversity" in this report for information on the Board's expertise and capabilities in overseeing Regulatory Authorities * Environmental management * Active participation in government
strategies and systems related to ESG impacts risks and opportunities. * Support for local development (including rural programs
revitalization)
The Company utilizes quantitative metrics to assess the efficacy of its ESG management strategies and is gradually integrating
these ESG indicators into the evaluation criteria of its compensation system. During the reporting period the Company organized * General meeting of shareholders
specialized ESG training covering topics such as ESG trends and requirements key points for advancing ESG issues and ESG * Compliance operations * Financial reports and announcements
information disclosure. This training is designed to improve employees' comprehension and awareness of our ESG initiatives * Innovation and high-quality development * Investor hotline
thereby better facilitating the implementation of ESG practices. * Business ethics and anti-corruption * Roadshow
Shareholders & * Consistent and stable returns * Investor exchange meeting
Investors * Investor relations * Company visits
* Media interaction
The supervisory body
* Product quality and safety * Customer satisfaction survey
Take full responsibility for supervising ESG issues and ensure their efficiency * Innovation low-carbon products and services * Professional customer service team
* Customer service management * Exchange activities
Board of
Directors Customers * Business continuity * User training
* Information security and privacy protection * Media interaction
The management team * Compliance operations * Supply chain audits and training
The executive * Business ethics and anti-corruption * Communication and exchange
Recognize and manage ESG risks and opportunities management team * Responsible supply chain (high-level exchange visits supplier
Determine the significance of ESG issues and integrate them into Partners * Information security and privacy protection conferences industry conferences etc.)
business considerations Office of the Board of * Open cooperation
Directors (coordinating * Industrial cooperation and exchange
Oversee the implementation of ESG strategies ESG work) * Employee activities and communication
* Talent introduction and retention * Employee training
* Employee rights and benefits * Performance evaluation and feedback
The executive team ESG working group * Occupational health and safety mechanism
* Employee training and development * Internal information communication
Develop dedicated ESG plans and carry out Employees
* Diversity and equal opportunities platformspecific ESG initiatives Relevant functional and business departments and * Employee grievance channels
Regularly monitor and report ESG indicators subsidiary companies
* Compliance operations
* Product quality and safety
* Media interaction
* Innovation low-carbon products and services
* Inclusive products
* Green operations
Public and * Public welfare programs
* Public welfare and charity
Community * Medical assistance services
* Support for local development (including rural
revitalization)
05 06Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
ESG Issue Management
Yuwell Medical attaches great importance to deeply integrating its long-term corporate development strategy with the concept
of sustainable development. The Company strictly follows a detailed process for analyzing material issues which is grounded
in international authoritative guidelines and regulatory disclosure instructions. We have drawn upon widely recognized
international ESG benchmarks rating entities and peer company ESG concerns to establish a roadmap for "issue identification - Very important
importance assessment and ranking - issue confirmation and reporting" leading to the creation of the Yuwell Medical 2023 ESG 15 Important
Material Issue Research Questionnaire. By adhering to the "double materiality" principle we evaluate the significance of this
year's ESG issues based on their importance to both the Company's development and to our stakeholders. We identify key issues 16 Less important
of high materiality to prioritize in our report and continually improve our ESG management to better meet the expectations 6 717 13
and demands of our stakeholders. As the top decision-making body responsible for managing economic environmental and 22
social issues the Board of Directors is in charge of assessing and overseeing the impacts risks and opportunities related to 18 9 1 Environmental
sustainable development. The relative importance of these issues is disclosed in the report after they have been reviewed and 10 2 21 Social
approved by the Board. 12
19 Governance
23
25
2485
14
The ESG issues checklist was developed based on an analysis of internal and 4
external development trends with a focus on issues of common concern to 20 3
internal and external stakeholders. The report framework includes references
to sustainable development guidelines by stock exchanges IFRS Sustainability
Issue Identification Disclosure Standards by ISSB and standards set by the Global Reporting Initiative
(GRI) among others. It also considers mainstream ESG rating systems such as 11
MSCI ESG Ratings and sustainability issues of interest to peer companies.Low Significance of impact to Yuwell Medical's business High
We conduct issue research among key internal and external stakeholder groups No. Topic No. Topic
Materiality determining the priority of ESG issues based on the "double materiality" principle. 1 Compliance operations 14 Intellectual property protection
Assessment and 2 Business ethics and anti-corruption 15 Product quality and safety
Prioritization
3 Corporate governance 16 Customer relationship management
4 Board diversity 17 Access to healthcare
5 Digital operations 18 Responsible marketing
6 Information security and privacy protection 19 Employee rights and benefits (including
7 Addressing climate change occupational health and safety)
8 Water resource management 20 Diversity and equal opportunities
9 Emissions and waste management 21 Employee training and development
We review the screening and analysis outcomes to verify the significance of 22 Sustainable supply chain
Issue Recognition issues with a high degree of impact. For these critical ESG issues the report 10 Resource management and
and Report focuses on disclosing related management practices and performance. circular economy 23 Industrial cooperation and development
Generation 11 Biodiversity conservation 24 Public welfare volunteer services
12 Low carbon products 25 Serving regional development
13 Innovative smart healthcare (including rural revitalization)
0708
High Importance to stakeholdersJiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Efficient Governance:
Marching Towards a New Era of
High-Quality Development
Proportion of female directors
44.4%
Anti-corruption training coverage for key positions
100%
Information leakage incidents
0
09 10Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Strengthening Corporate Governance
Standardized Governance Investor Rights Protection
Yuwell Medical strictly adheres to the requirements of the Company Law of the People's Republic of China the Securities Law of the Yuwell Medical strictly adheres to the requirements of the Securities Law of the People's Republic of China the Measures for the
People's Republic of China the Corporate Governance Guidelines for Listed Companies and other relevant laws regulations and Administration of Information Disclosure by Listed Companies the Provisions on the System for Registration and Management of Insiders
guidelines as well as the standards set forth in the Articles of Association. The Company has established a corporate governance Who Have Access to Insider Information of Listed Companies and other relevant laws regulations and normative documents ensuring
structure composed of the General Meeting of Shareholders the Board of Directors the Supervisory Board and the senior that information disclosure is conducted in a truthful accurate comprehensive and prompt manner. During 2023 the Company released
management team. This structure ensures the powers of the authorities decision-making bodies supervisory bodies and executive 54 announcements regarding the General Meeting of Shareholders Board of Directors Supervisory Board meetings routine reports and
bodies are clearly defined coordinated and balanced thereby consistently enhancing the Company's governance level. In 2023 the and significant matters guaranteeing equal access to information for all shareholders. During the reporting period there were no false
Company successfully completed the addition and revision of 10 management regulations. The General Meeting of Shareholders records misleading statements significant omissions or other improper disclosures in the Company's information disclosure. We also
the Board of Directors the Supervisory Board and the senior management team followed stringent standardized operational rules keep a close eye on the public opinion environment and market trading conditions to effectively protect the legitimate rights and interests
and internal procedures for management decision-making and operational oversight. For detailed information on the Company's of investors through fair information disclosure.governance please refer to the Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Annual Report.Yuwell Medical highly prioritizes investor relations management. In compliance with regulations such as the Investor Relations
The General Meeting of Shareholders is the Company's authoritative body legally vested with decision-making powers on major Management System we standardize procedures for convening conducting discussing and voting in shareholders' meetings. We
issues such as corporate policy investment and profit distribution. The Board of Directors is accountable for the General Meeting of persistently enhance diverse investor communication channels and actively conduct investor relations management activities effectively
Shareholders and serves as the Company's operational decision-making core. The Board also comprises four specialized committees: promoting interaction and mutual trust between the Company and investors. The Company sincerely considers feedback and suggestions
the Strategy Committee Audit Committee Nomination Committee and Compensation and Evaluation Committee. These committees from shareholders and potential investors provides timely answers to their inquiries and fosters a positive interaction environment for
decide on specific matters within the scope authorized by the Board and provide professional advice and recommendations for investors. We treat all shareholders equally. Small and medium shareholders can attend the General Meeting of Shareholders in person
the Board's decision-making. Independent directors constitute the majority and hold the chair positions in the Audit Committee or cast their votes online. For major issues that may affect the interests of these investors the Company counts and discloses their votes
Nomination Committee and Compensation and Evaluation Committee. The chairperson of the Audit Committee is an accounting separately. The time and location of the general meetings are chosen to maximize shareholder attendance. We also utilize modern
professional. The Supervisory Board as a supervisory body is accountable to the General Meeting of Shareholders and effectively information technology to increase shareholder participation in the meetings ensuring that all investors especially small and medium
oversees the Company's finances as well as the legality and compliance of the Company's directors and senior management in shareholders are informed and involved in significant company decisions. We engage with investors through platforms like cninfo.com
performing their duties so as to protect the legitimate rights and interests of the Company and its shareholders. fully listening to the opinions and demands of small and medium shareholders and promptly responding to their concerns. We diligently
answer the investor hotline achieving a 100% response rate on cninfo.com.To adhere to regulations such as Measures for the Administration of Independent Directors of Listed Companies the Company has
established the Specialized Meeting System for Independent Directors. Additionally we meticulously convene and hold shareholders' As we concentrate on our corporate progression we steadfastly maintain an investor-centric approach. From the commencement of
meetings in strict accordance with the Rules for the Shareholders' Meetings of Listed Companies and the Company's Rules of our public listing we've adhered to a steadfast and enduring cash dividend strategy as stipulated by the Articles of Association with the
Procedure for Shareholders' Meetings and hold meetings of the Board of Directors and the Supervisory Board in accordance with goal of sharing the fruits of our development with our investors. The Board of Directors formulates a profit distribution plan based on the
the Rules of Procedure for the Board of Directors and the Rules of Procedure for the Supervisory Board. Furthermore The Company Company's annual operating performance which is then submitted to the shareholders' meeting for review ensuring that the legal rights
strictly adheres to the relevant provisions on voting matters and voting procedures protecting the legitimate rights and interests of of all shareholders particularly those of small and medium investors are fully protected. For detailed information on the protection of
the Company and its shareholders. Throughout 2023 3 shareholders' meetings were held with 15 resolutions approved; 11 board shareholders' and creditors' rights please refer to the Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Annual Report.meetings were held with 40 resolutions approved; and 8 supervisory board meetings were held with 15 resolutions approved.Furthermore 7 Audit Committee meetings 1 Strategy Committee meeting 3 Remuneration and Evaluation Committee meetings and
3 Nomination Committee meetings were held throughout the year. Board Diversity
Board diversity is a crucial element in supporting the Company in achieving its strategic
General Meeting objectives and sustainable growth. To ensure the scientific and effectiveness of Board
of Shareholders decision-making Yuwell Medical endeavors to encourage diversity within the Board in
terms of gender culture education professional capabilities and beyond. The Company
Supervisory Board Audit Committee currently has 9 members on the Board of Directors including 4 female directors.Among them 6 are non-independent directors and 3 are independent directors. Board
members possess extensive expertise and practical experience across diverse fields
Nomination Committee such as biotechnology medical devices risk management financial accounting law
Board of Directors and finance reflecting the Board's balance concerning gender experience background Proportion of female directors
Remuneration and and professional skills. The Audit Committee includes one independent director with a
Evaluation Committee professional accounting background along with several directors who have extensive
experience in risk management including the development of risk control systems
Strategy Committee and risk management regulations as well as handling and mitigating significant risk 44.4%
The Management Team incidents. Their expertise effectively helps the Company identify risks make sound risk decisions and counteract and resolve risks.
11 12Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
In 2023 Yuwell Medical revised its Independent Director System and the Working Rules of the Nomination Committee of the Board of Risk Management Structure
Directors. The nomination of Board members goes through a rigorous selection process. The Nomination Committee takes diversity into
account and thoroughly evaluates potential candidates on a range of professional criteria including their educational qualifications The Board of Directors and its Audit Committee are collectively responsible for the overall management and supervision of a wide
industry experience specific competencies professional knowledge and work history to uphold a properly diversified and balanced range of risks. The Audit Committee is responsible for supervising and evaluating the operation and implementation of the internal
composition of the Board's capabilities skills experiences gender age and cultural and educational backgrounds. The Company also gives audit system and the internal control system to secure effective risk management and keeping abreast of the work progress of
significant importance to the personal reputation of Board members in terms of ethical behavior and leadership. After the nomination of such external audit organizations as accounting firms and national audit authorities. The Board of Directors authorizes other
the independent director candidates is approved it must be submitted to the Shenzhen Stock Exchange for review of qualifications and committees to work on specific tasks of risk management in their respective areas of expertise. As a risk supervision department
independence. Following approval the General Meeting of Shareholders will proceed with elections using a cumulative voting method independent of other business functions the Audit Department of the Company is responsible for conducting day-to-day
which aims to consistently improve the level of corporate governance and decision-making skills. supervision on an ongoing basis and securing effective risk control through the audit mechanism. Where necessary an external
third party will be engaged to perform an independent audit.The Company promotes the involvement of its Board members in various professional skill enhancement and compliance training
programs effectively boosting their awareness of compliance and ability to fulfill their duties. During the reporting period the Board Risk Identification and Response
members participated in specialized training focused on corporate governance and reforms to the Independent Director System. They
engaged in thorough learning sessions covering interpretations of reforms to the Independent Director System for Listed Companies Yuwell Medical constantly strengthens the identification of and response to risks and strictly standardizes its business management
regulatory requirements for information disclosure and relevant case studies. processes in order to enable a standardized whole-process management and control of risk assessment control confirmation
defect rectification and implementation in its global core business sectors. We are also committed to promptly identifying and
evaluating the sources of risks associated with the Company's operations while improving and supervising matters closely related
Professional Capacity to the Company's operations such as investment risks business risks operational risks and sustainability-related risks. These
Type Name Gender Industry Risk Financial closed-loop management efforts improve the Company's risk prevention and control capabilities. Meanwhile the Company
Law
Experience management accounting incorporates material ESG risks and opportunities into its risk review and business planning process and takes them into full
consideration in its operational and financial planning. This helps the Company better manage or mitigate risks and locate growth
Chairman General and restructuring opportunities.Wu Qun Male
Manager
Director Deputy Risk Training
Zhao Shuai Male
General Manager Yuwell Medical is keen to foster a culture of risk management. By offering risk-related training and advocacy we aim to enhance
employees' awareness of internal control risks and strengthen their internal control management capabilities. This will ultimately
Director Wang Lihua Female shape a risk-prevention pattern engaging the entire workforce and help constantly improve its standardized operation level.Director Deputy Zheng Moreover the Company expressly requires all its departments to keep abreast of new regulations and policies before initiating
Male
General Manager Hongzhe relevant researches in a timely manner. Where necessary external specialists will be engaged to deliver in-depth briefings and
training so as to minimize the potential risks to a tolerable level.Chen
Director Male
Jianjun Adherence to Business Ethics
Director Board
Wang Ruijie Female
Secretary
Strengthening the Committed to the core value of "integrity as the foundation" Yuwell Medical strictly complies
Independent Director Yu Chun Female with the Company Law of the People's Republic of China the Anti-unfair Competition Law of
Defense Line of the People's Republic of China the Anti-monopoly Law of the People's Republic of China the
Independent Director Wan Suiren Male
Business Ethics Anti-money Laundering Law of the People's Republic of China and other laws regulations
Zhong and industry practices. Based on this we have put in place and consistently improved our
Independent Director Female
Mingxia business ethics and anti-corruption management system and enhanced compliance and
business ethics training and cultural development while standing against any form of fraud
commercial bribery and similar misconduct. During the reporting period no major litigation
Risk Management and Internal Control cases involving corruption or unfair competition were filed against Yuwell Medical.A robust internal control and risk management system ensures sound corporate governance. During the reporting period Yuwell Signing rate of Anti-commercial Bribery Anti-corruption training Anti-corruption training
Medical strictly observed the Company Law of the People's Republic of China the Audit Law of the People's Republic of China the Statement by suppliers regular distributors coverage for key positions hours per employee
Basic Norms for the Internal Control of Enterprises and their supplementary guidelines as well as the relevant internal control and partners of the parent company of
regulatory requirements of the China Securities Regulatory Commission (CSRC) and the Shenzhen Stock Exchange (SZSE). Taking Yuwell Medical
into account the reality of the Company and the characteristics of the medical device industry we have consistently promoted
the development evaluation and supervision of our internal control system and ensured its effective operation to facilitate
the Company's sustainable and sound operation. We have also put in place a holistic internal control and necessary internal
supervision mechanism across our corporate governance structure and business operations.Working Rules of the Nomination 100% 100% 2 hours
Committee of the Board of Directors
13 14Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Business Ethics Management Case Domestic Marketing Center Division Conducts "Clean Environment Campaign"
Yuwell Medical has established an effective business ethics and compliance management framework globally. Within this
framework the Board of Directors is the supreme decision-making body for business ethics and anti-corruption management In December 2023 Yuwell Medical's Domestic Marketing Center Division launched the "Clean Environment Campaign" designed
while the Audit Committee and the Supervisory Committee under the Board of Directors serve as supervisory organizations in to enhance the integrity and anti-corruption awareness of marketing staff. The campaign reinforced the compliance requirements
charge of overseeing and regulating the implementation of the business ethics management systems and the fulfillment of duties for business interactions between marketing employees and distributors clarified the Company's guidelines on monetary-related
supporting the high-quality development of the Company. As a primary independent department of the Company the Supervisory economic activities and highlighted national legal provisions related to crimes like embezzlement and bribery by non-public officials
Committee is responsible for formulating systems related to business ethics and anti-corruption reviewing major compliance and including sharing relevant case studies. The initiative aimed to strengthen business compliance between the Company's marketing
business ethics matters of the Company and conducting supervision efforts from time to time. The Supervisory Committee is also employees and distributors as well as compliance and legality of the marketing employees' sales behaviors in an all-around way.in charge of evaluating compliance and business ethics risks investigating corporate corruption incidents and reporting directly
to the Chairman. Additionally it actively responds to the latest national and industry policies on compliance and business ethics Supply Chain Integrity Management
enhancing its oversight capabilities in these domains.Yuwell Medical constantly promotes compliance and business ethics management among its partners to collectively build a clean and
Yuwell Medical has formulated and consistently improved its business ethics management systems applicable to all its operations transparent supply chain. Before entering into an official partnership we require all suppliers to sign an Anti-commercial Bribery Statement
and functions. These include the Code of Conduct for Integrity in Business Practices Yuwell Medical Statement on Anti- and related confidentiality agreements. This policy covers 100% of our key suppliers including our headquarters suppliers regular
commercial Bribery Yuwell Medical Declaration Management System for Employee Conflicts of Interests Yuwell Medical Surrender distributors and logistics partners. We also require our suppliers to comply with national and local laws and regulations policies and
Management System for Gifts and Cash as Giving and Yuwell Medical Management Measures for Supervision. In doing so industry standards and not to commit or tolerate any form of corruption fraud extortion or embezzlement ensuring a fair transparent
requirements on anti-fraud anti-money laundering anti-corruption anti-bribery fair competition anti-monopoly and anti-conflict and clean environment for cooperation. We maintain a zero-tolerance policy for commercial bribery and will immediately dismiss and
of interest are applied to the Company's directors all its employees (including part-time employees) as well as to its headquarters' permanently bar any employee who violates the relevant regulations. For partners who violate the relevant provisions we will immediately
supply chains and distributors. These standards are also progressively extended to suppliers distributors and other customers of terminate the partnership and pay liquidated damages upon verification. These efforts have comprehensively strengthened the supervision
our subsidiaries thereby comprehensively strengthening the defense line of business ethics across all areas. and control of business ethics in the process of cooperation between the Company's relevant departments and suppliers.After giving reasonable notice the Company requests suppliers to cooperate in conducting on-site or unannounced reviews to ensure
Business Ethics Audit ongoing monitoring of supply chain compliance and business ethics risks. If any misconduct or violation is found during the review process
Under the framework of business ethics management systems the Supervisory Committee and the Audit Department occasionally we will immediately terminate the cooperation and take strict disciplinary action against the in-house employees. In 2023 the Company
conduct audits and inspections of the implementation of systems and business ethics risks in various business scenarios and conducted reviews on business ethics and anti-corruption for 52 suppliers and delivered a briefing on the Anti-commercial Bribery
regularly communicate the audit results material audit findings and matters of concern to the Audit Committee of the Board Statement and whistleblowing channels.and the Chairman directly. The Supervisory Committee and the Audit Department maintain independence at the organizational
operational and individual levels. In addition the Company conducts an annual review of the effectiveness and compliance of the Standardizing Whistleblowing Management
operation of the internal control system and actively manages potential business ethics risks in the course of operations.With a zero-tolerance attitude towards corruption and other behaviors that violate business ethics Yuwell Medical has formulated
The Supervisory Committee and the Audit Department constantly conduct relevant special audits based on the reality the the Yuwell Medical Management System for Whistleblowing set up various whistleblowing channels and encouraged the Company's
Company's control requirements and the audit plan formulated by the department so as to enhance the risk control of core employees suppliers distributors and other stakeholders to whistleblow openly or anonymously via mail hotlines and other methods.business scenarios. At the same time we have formulated a continuous improvement scheme based on the audit results to ensure We aim to engage all employees suppliers and partners in a system of supervision of integrity and honesty in the performance of our
the effective operation of the Company's business ethics and anti-corruption policy and compliance system. Additionally we have duties so as to promptly and effectively address any existing or potential violations of the Company's code of ethics policies and laws.signed anti-corruption agreements with our business partners and set up external whistleblowing channels to identify and prevent
ethical business risks in the business process. As a dedicated department for handling complaints the Supervisory Committee reports directly to the Chairman of the Board ensuring
the independence and objectivity of its work in handling and supervising complaints. In the event that the existence of corruption is
determined strict and appropriate measures will be taken in accordance with the severity of the situation. Yuwell Medical promises
Business Ethics Training to keep the personal information of the whistleblower and the provided information strictly confidential with a dedicated employee
Yuwell Medical endeavors to foster a clean culture. We have put in place a compliance and business ethics training system for all our handling the clues and documents and managing them strictly based on their classification level. The Company has explicitly stated that
employees including but not limited to compliance training for new recruits integrity and compliance training for functional employees the personal information of the whistleblower and details about the handling of the complaint must not be disclosed to the accused or
and promotion of the Code of Conduct for suppliers. These efforts are aimed at persistently enhancing the awareness of compliance and to individuals unrelated to the complaint process. While keeping the confidentiality of the whistleblower's information the Company is
anti-corruption among all our employees thereby preventing incidents of corruption fraud and other regulatory violations. serious about cracking down on any retaliation and will take serious action upon substantiation. In response to any serious threat to the
rights and interests of whistleblowers we will promptly notify the judicial authorities and seek legal action against offenders.Supervision Department Yuwell Science and Technology
During the reporting period Yuwell Medical delivered Training coverage of sensitive and Mailing address for whistleblowing Center No. 1 East Huanyuan Road Xuzhuang Software
important positions Park Xuanwu District Nanjing City Jiangsu Province
3 100% Channels for Hotline for whistleblowing 025-85582701special training sessions on compliance and Whistleblowing
business ethics. and Complaints E-mail for whistleblowing jubao@yuyue.com.cn
15 16Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Full Supply Chain Customer-centric Business Chain
Coordinated Coordinated Management System
Management Full Lifecycle Coordinated Management
Business Chain Production & Sales Synergy Platform APS Planning & Execution Platform Intelligent WMS (Warehouse
Coordinated Management IPD development process Management System) Cloud Platform & Distribution System "One Product One Code" Platform "02P&SG" PLM R&D management platform
Platform Big Data Platform ERP (Enterprise Resource Planning) Management System
Customer-centric whole-chain coordinated
management is the core strategy of Yuwell
Medical's operations. Under this strategy we Design and R&D Procurement Production Sales After-sales
employ a customer-oriented approach to integrate
customer needs into the entire business chain from
product design R&D production and sales to after-
sales service. Backed by a well-organized process
mechanism and compatible management system Full lifecycle quality management
performance indicators incentive packages and Customer complaints and feedback
team building we exercise stringent product
quality and risk management throughout the full Digital and intelligent production and marketing system
product lifecycle. In doing so we aim to deliver
high-quality products that are satisfactory to our
customers enhance our market competitiveness Design R&D Procurement Production Sales After-sales
and lay a solid foundation for the sustainable
development of the Company in the long run.Utilizing the cross-departmental integrated product development We bring in product In line with client demand We have built a We collocate sales We have established a
Empowered by automation digitalization system (IPD process) we have created a complete end-to-end lifecycle management and manufacturing production and information in real- cross-departmental and
and intelligent technologies the intelligent design process. In the early stage of product development we toolkit (PLM system) realities we have marketing synergy time to enable access fully coordinated user
manufacturing system of Yuwell Medical applies conduct user demand research and pain point analysis while to further optimize implemented centralized platform to achieve to the stream of experience optimization
to all processes from demand planning R&D the user research team conducts offline qualitative research and and localize R&D work. procurement and supply interconnectivity sales data of Yuwell mechanism. Focusing
and design raw material sourcing production online quantitative research on real users delivering the research We also strengthen chain management to among full chains products forming a on the dimensions of
execution warehousing management logistics findings back to the design team. During the functional prototype the effectiveness of ensure the quality and including sales data channel from user experience like
and shipping as well as after-sales service. Driven stage usability testing is conducted to verify whether the demand cooperation between stability of raw material planning production production to users. product experience
by a system enhancement system and digitization points and pain points identified earlier have been resolved in R&D and other functional supplies providing a and supply chains. We logistics experience and
we have efficiently connected the front and back the new design. We then propose improvements for the existing departments to improve strong guarantee for the also follow up on the marketing experience we
ends of our production lines and integrated and problems forming a closed loop of product design optimization. the reliability and production process. customer's demand in regularly collect various
optimized the resource allocation of each link. This predictability of R&D real-time and build an types of user feedback
enables us to put ourselves in the shoes of users We implement a market-centered design strategy that incorporates projects. The market- and We have upgraded intelligent production and routinely generate
to address their fundamental needs for products all factors of the sales chain into the design process. By fully customer-oriented business inventory management workshop. product experience
and conduct R&D and design geared to a full considering the cost constraints of different product tiers we planning product planning technology and set up feedback reports for each
lifecycle. Based on these we constantly improve ensure an optimal balance in the selection of materials processes and other activities enable an intelligent warehouse category. We also facilitate
the level of chain-wide synergistic management and components. This approach guarantees a superior user R&D to be conducted in management system collaboration among
and lean management to make it possible for experience while continuously enhancing product competitiveness a manner that aligns as (WMS) to enable real-time the R&D product and
interconnectivity and flexible adjustment so across the entire value chain. closely as possible with the inventory tracking and marketing departments to
that the Company can deliver more competitive needs of users. For more predictive analysis. Such improve user experience.products and services. information please refer a dynamic management
to the section "Innovation mechanism ensures that
and R&D System" in the the inventory level meets
chapter "Leading with the demand without
Innovation: Energizing Life causing excessive
via Technology." inventories.
1718
Customer satisfaction
Customer needsJiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Digital and Intelligent Transformation
Yuwell Medical is rapidly advancing a comprehensive digital strategy that is structured forward-thinking and interconnected. We
have developed an omni-process digital application platform and an efficient and flexible digital technology support system so
that digital technologies can be applied to the full business chain synergistic management. We also make use of digitally intelligent IT (Information Technology) DT (Digital Transformation) BT (Business Transformation)
aids to constantly improve the service and management of health products fully stimulate the integration of the digital economy
and industry and vigorously push forward the change of digital operation.Our IT strategy enables online Through the DT strategy we Supported by our self-dependent
business operations basic consistently collect real data R&D platforms across the board
Yuwell Intelligent Manufacturing Factory was recognized as the national Yuwell Medical won 1 Masterpiece Award and statistics and aggregation
and enhance the process we are able to bridge the data
error-free data transmission display and analyze business "Intelligent Manufacturing Pilot and Demonstration Factory" 1 Bronze Award at the Design Intelligence flow between systems forecast issues and make preliminary
in 2021. It is one of the few national intelligent manufacturing pilot partially online management and analyze algorithmic models
and after-action tracking and warnings helping increase the enterprises within the medical device industry. and perform operations and
feedback. proportion of self-dependent iterations on a regular basis.research platforms.Case Yuwell Intelligent Manufacturing Factory
Formed based on the intelligent processing units production lines and intelligent testing equipment in the physical workshop Intelligent WMS Human-robot Collaboration-driven Flexible Intelligent
Yuwell Intelligent Manufacturing Factory exchanges data with the virtual workshop through sensors industrial buses industrial Production Line at Product Assembly Workshop
Ethernet and other means of linkage. Each type of production line and system in the virtual workshop is equipped with appropriate The intelligent WMS employs advanced PLC-integrated
control and monitoring equipment enabling end-to-end intelligent closed-loop quality management and traceability. This allows modular auto control technology and is closely integrated It mainly consists of multi-model sensors human-robot collaborative
product manufacturing to be driven by comprehensive three-dimensional digital design and manufacturing information flow. with the flexible processing and assembly production lines robots flexible chain conveyor lines and an auto control system.Yuwell Intelligent Manufacturing Factory consists of six types of flexible production lines machining and SMT lines and workshop which enables the fully automated handling of raw material As a flexible and intelligent operation mode this system allows all
intelligent three-dimensional warehouses enabling mixed-line production of multiple varieties self-diagnosis of faults alarms for reception storage transportation processing operations equipment to communicate with the control system of the upper
production anomalies and online data acquisition. In this way the factory has created a new intelligent and flexible production and the storage delivery production and shipment of production line thereby significantly improving the production
model that meets the flexible production needs of various models and specifications across different scenarios. finished products. efficiency and product quality.Robot-driven Flexible Intelligent Manufacturing Integration System at Machine Processing Workshop
The advanced computer control system new sensor technology and intelligent component integration technology have enabled
automated loading processing and molding of raw materials as well as unloading and warehousing of finished products.Interfaced with the Company's production management software it allows for real-time coordination and feedback on production
scheduling and planning which greatly improves production efficiency and equipment utilization rate.
19 20Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Sustainable Supply Chain
Supplier Full Lifecycle Management
A high-quality resilient and sustainable supply chain is crucial to the sound development of the Company. Yuwell Medical strictly
abides by the Bidding Law of the People's Republic of China Regulation on the Implementation of the Bidding Law of the People's Supplier Evaluation & Audit
Republic of China and other relevant Chinese laws and regulations. Based on these laws and legislations we have developed Yuwell Medical applies categorized and tiered management of suppliers. Depending on the products and services provided by
internal management systems and processes such as Supplier Management Control Procedures so as to constantly improve our suppliers we categorize them into material suppliers storage and transportation suppliers IT service providers etc. Based
the management of the full lifecycle of suppliers and thoroughly regulate the whole process involving supplier selection and on this we have formulated separate management requirements and standards and defined standard working procedures for
admission evaluation and audit and exit. This enables a fair just and transparent procurement environment within the supply supplier selection auditing and signing of the Procurement Framework Agreement. Following these categorization and tiering
chain. Moreover we have sustained efforts to optimize our supplier resources with a view to building a high-quality and resilient principles we have established a strict annual audit plan for all admitted suppliers according to which we perform qualification
supply chain. reviews and on-site audits every year and issue and distribute the Supplier Evaluation Form. We undertake regular monitoring
and all-round review and appraisal for suppliers in terms of their qualification fulfillment product quality management social
and environmental impacts and so on. According to the audit results we give feedback on the problems to suppliers in a
timely manner guide and supervise the suppliers to make corrections in response to the problem lists and assist them to make
Number of suppliers with Number of suppliers with Number of suppliers with improvements. To do so we aim to ensure that suppliers operate their business in a safe and compliant manner.quality management system environmental management occupational health and safety
certification system certification management system certification
481 166 72 During the reporting period Yuwell Medical conducted a total of130on-site audits (including new supplier evaluations).
Supplier Selection and Admission Material Supplier Audit Requirements
Yuwell Medical constantly develops and introduces high-quality suppliers. We have established multi-dimensional standards for
supplier admission investigating and screening suppliers based on their supply delivery abilities financial risk capacity quality Suppliers are categorized into Conduct quarterly supplier performance evaluations and audits to examine the
assurance and R&D technical skills. We have also established a cross-departmental collaboration mechanism to conduct a A B and C tiers based on the quality of goods they provide. Suppliers that underperform must undertake root
comprehensive evaluation of supplier admissions effectively incorporating core elements such as financial health quality systems role of their materials in the cause analysis and corrective and preventive measures.and environmental safety into the supplier evaluation system which ensures that sustainability requirements are integrated into final product the complexity
the daily management of our supply chain. of their integration into the Develop a supplier audit plan each year to perform system evaluations on raw
production process their material suppliers from the Qualified Supplier Directory assigning them to A B
Survey Elements for Supplier Selection and Admission impact on product quality or C grades based on the assessment.and safety and the test
Suppliers of category A are subject to a system audit every five years. According
Occupational health & safety information security protection environmental protection results of audit samples..Supply Delivery Abilities to the annual audit plan suppliers of categories B and C will receive a Supplier
procurement & suppliers delivery management warehouse & transportation management Review Form for self-review and written evaluation with on-site audits
conducted when necessary.Financial Risk Capability Asset quality indicators profitability indicators internal control management
Supplier Exit Mechanism
Quality Assurance Quality management system manpower training equipment management quality
Capability management supplier management warehouse management Yuwell Medical has set up a supplier exit mechanism at each stage of the supplier management process to strictly regulate the
performance of suppliers. After the selection and admission process we conduct trial-production evaluations of the materials
provided by the new suppliers and eliminate those suppliers who fail in trial-production three times. At the annual audit stage
suppliers of category B are required to make improvements within a specified time frame. Those suppliers who remain unqualified
R&D Technical Skills Technological reserve R&D design new product introduction engineering management
after the re-audit will be disqualified. For suppliers of category C immediate disqualification will be imposed on them. During the
quarterly performance evaluations suppliers who receive a C rating three consecutive times are stripped of their supplier status.
21 22Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Supply Chain Risk Control
Yuwell Medical has incorporated sustainability requirements into its supply chain management system. The Company not only In addition we have implemented a supplier audit procedure. Each year we formulate a supplier audit plan and conduct thorough
focuses on the quality of products and services but also on the performance of suppliers in labor management occupational audits covering aspects such as quality management systems product design and development material and supplier management
health and safety integrity and compliance environmental protection etc. and issues the Supplier Social Responsibility Audit manufacturing process management change management non-conformity control improvement and after-sales as well as
Report upon audit. Every year we comprehensively identify carefully assess closely monitor and effectively control the risks that hazardous substance management. We ensure product quality and safety through closed-loop management that includes supplier
may arise in the supply chain including ESG risks. With quality risk as the focal point of management we constantly improve audits incoming inspections performance evaluations and continuous improvement. The Quality Department and other relevant
the ESG management system and strictly control the procurement process and the full lifecycle of suppliers so as to build a departments review and analyze the supplier quality audits and evaluations implement corrective actions and secondary acceptance
competitive resilient and sustainable supply chain. for issues identified during audits and provide quality training targeted guidance technical cooperation and support to suppliers
as necessary. We work together to promote quality improvement and ensure suppliers take measures to resolve issues within a
reasonable timeframe to meet company standards. In 2023 no suppliers were found to have any significant quality issues.Risk Type Countermeasures
We clarify quality-related requirements in the Sourcing Framework Agreement and the Freight
Transportation Services Contract and establish a quality information-sharing mechanism with
suppliers. To do so we aim to ensure that both parties can access and share timely information Product Quality Control
Quality Risk
on product quality delivery progress and other aspects. We conduct regular relevant audits
and reviews of our suppliers and initiate quality training technical cooperation and exchanges
when necessary in order to strictly control the quality risks at each stage of the process.We require all suppliers to sign the Supplier Anti-commercial Bribery Statement intensify
publicity and training and carry out due diligence and audits on partners depending on
Compliance & Incoming Material Finished Product First- Handling of Process Quality
the cooperation projects if necessary. For details on supply chain business ethics and anti-
Ethics Risk Inspection Data Time Pass Rate Issue Management
corruption management please refer to the section "Adherence to Business Ethics" in the
chapter "Efficient Governance: Marching Towards a New Era of High-Quality Development." According to the requirements In accordance with the product The SQE tracks and addresses the
of drawings and technical inspection documents and the quality problems of suppliers found
Environmental Risk In accordance with the requirements of BSCI and local government departments we conduct
Environmental Risk specifications the Quality technical specifications of the in the production process and social responsibility audits on suppliers and issue the Supplier Social Responsibility Audit Department of the Company carries product we carry out finished issues CAPA reports to monitor the
Health & Safety Risk Report which includes various audit areas such as child labor forced labor occupational out inspections on the appearance product testing and safety testing progress of quality improvements.health and safety freedom of association and collective bargaining anti-discrimination
Health & Safety Risk size and performance of new to ensure that the released For suppliers with frequent or and environmental protection issues. Suppliers who have obtained relevant environmental materials. For the new materials products comply with the technical major quality problems the SQE
management and occupational health and safety certifications are given weighted
Risk the Quality Department of the specifications market regulatory engages in and follows up on the consideration during admission and evaluation processes which motivates them to strengthen
Labor Rights Risk Company requires the suppliers requirements and legal and development of special quality their social responsibility management. to furnish quality assurance regulatory provisions. We also improvement programs.certificates shipment inspection formulate a product review plan
reports type test reports etc. and carry out sampling and testing
warehouse them in the SAP system of the finished products from the
Supply Chain Quality Risk Control after they are qualified. perspectives of the customer's
use end and market regulation
Yuwell Medical has established the Supplier Management Control Procedure and other internal management systems specifying We collect and analyze the data on and conduct special tracking and
quality management requirements for each phase of the entire supply chain lifecycle thus comprehensively enhancing process the suppliers' incoming material correction for the problems found
quality control. Suppliers must possess professional qualifications for the services or products they provide maintain a robust quality inspections and tests every month by sampling and testing.management system in compliance with current laws and regulations and are required to sign a Quality Agreement. which includes the number
of received batches returned
During the supplier admission process the Company conducts quality management system audits of suppliers that match the raw batches the QC pass rate and the
material development needs and only those who meet the scoring criteria are included in the Qualified Supplier Directory. We causes of defects. This process
perform quarterly performance evaluations and annual audits on suppliers to verify if they meet the product quality requirements aims to facilitate the traceability
removing those who do not. During the introduction of new raw materials we track the trial production process to fully control the of material information and the
quality of new materials. When supplier product quality issues are identified during incoming QC and production we issue a CAPA smooth progress of the suppliers'
Report to the suppliers according to the CAPA Procedure Document. For suppliers willing to improve we visit their sites and based on continuous improvement efforts.their actual situation and improvement needs assist them in developing targeted improvement plans. Through establishing quality
management systems enhancing production process control and optimizing documents and processes we ultimately achieve
mutual progress and growth.
23 24Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Enhancing Supply Chain Resilience Information Security and Privacy Protection
Amid an increasingly complex global market environment and evolving business demands the stability and continuity of the supply
chain are crucial to a company's operations production and customer satisfaction. Yuwell Medical consistently refines its supply chain Data Acquisition and Application Security
structure achieving supplier diversification and multi-channel sourcing. In response to potential supply chain disruptions price increases
and unexpected events we have further enhanced our preventive controls to strengthen supply chain resilience. Throughout the reporting Yuwell Medical strictly complies with the Personal Information Protection Law of the People's Republic of China and other applicable
period Yuwell Medical maintained a stable supply ensuring that no shortages of raw materials disrupted the normal production schedule. privacy protection laws and regulations in its operational regions. Adhering to the principles of "legality authorization and
confidentiality" in privacy protection we have incorporated data privacy into our compliance management rapidly improved our
privacy data management system covering various product data types and ensured transparency in the collection and use of product
Diversified Supply Strategy and service data. Additionally the Company actively participated in developing industry standards related to data security in the medical
sector to promote the standardization safety and efficient use of medical data. During the reporting period Yuwell Medical completed
To ensure the security of the supply system Yuwell Medical has broadened its supplier network established secondary supply and submitted the Home Medical Device Data Collection and Application Standard for review.resources and implemented a supplier rotation mechanism. This strategy reduces reliance on any single supplier or region thereby
mitigating the risks associated with exclusive supply arrangements. For key bulk materials in categories A and B there are no Yuwell Medical's Privacy Protection Principles
fewer than two backup suppliers and for other material categories at least one backup supplier is available. We prioritize strategic
collaboration and maintenance with suppliers of monopoly and bottleneck materials and are dedicated to developing alternatives for
secondary resources. Should the main supplier be unable to supply materials due to special circumstances a standby supplier can When collecting storing processing transporting and using personal data we comply with laws and regulations
immediately step in reducing the risk of single-source supply and ensuring the stability of raw material availability. and codes of conduct and consciously safeguard the legitimate rights and interests of data subjects.Principle of Users are required to ensure that the source of external data is legal and compliant when introducing
Legality external data into the Yuwell system or storage space.Digital Supply Chain Management
Utilizing advanced supply chain management systems and digitalization we achieve real-time tracking and oversight of the supply Before accessing personal information the Company must obtain the Yuwell Software Service Agreement
chain ensuring transparency across all segments especially for high and medium-risk materials that require targeted tracking. signed with the individual's consent to fully respect their rights to be informed about access correct and
Through data analysis and forecasting we promptly identify and address potential issues reducing the risk of supply chain delete their personal information.disruptions. Additionally the Company has upgraded its inventory management technologies such as real-time inventory tracking We carefully evaluate the need to acquire personal data and avoid receiving or collecting data that is
and predictive analysis to maintain inventory levels that meet demand without causing excessive stockpiling thereby minimizing Principle of irrelevant to our business functions.unnecessary inventory costs and ensuring the ample supply of key materials. Authorization We protect stakeholders' rights to be informed choose and control their personal information access and
use only authorized data and implement a range of measures to minimize the use of personal information.Strengthening Emergency Response Management
We maintain strict confidentiality of privacy data and do not share transfer or disclose users' personal
We have established a comprehensive risk assessment mechanism that formulates contingency plans and backup strategies
information to any other companies organizations or individuals without authorization. We establish
tailored to the severity levels in production activities and the likelihood of supply delays. This includes arrangements for alternative
appropriate data security capabilities implement necessary management and technical measures and
suppliers transportation routes and inventory strategies to ensure rapid response and recovery in emergency situations. Principle of regularly check and evaluate the effectiveness of privacy data management and technical measures to
Confidentiality prevent data leakage damage loss or tampering.Supply Chain Collaboration and Joint Development
Case
Yuwell Medical strengthens strategic cooperation with reputable key material suppliers Yuwell Medical Leads the Drafting and Submission of the Home Medical Device Data Collection and
to establish long-term stable relationships jointly responding to market changes Application Standard
and risk challenges. By optimizing transportation routes selecting appropriate
transportation methods and forming lasting partnerships with logistics suppliers Yuwell During the reporting period Yuwell The safety of medical devices is closely related to life and health and is an important part of the Healthy China Initiative. As the
Medical effectively ensures the safety and stability of its supply chain. We actively engage Medical conducted a total of medical sector becomes more intelligent it is imperative to ensure the safety of data collection and application of household
with suppliers offering training and focusing on developing small and medium-sized medical devices. In 2023 Yuwell Medical led a series of expert discussions and research initiatives involving several universities
suppliers. We support suppliers facing temporary challenges without compromising the 15 research institutions and industry leaders. Based on the research findings the scope and main technical parameters of the Company's interests helping to enhance their production capabilities and the quality supplier training sessions. Home Medical Device Data Collection and Application Standard were defined. The standard's framework and core content were of their supplies thereby boosting the overall competitiveness of the supply chain. We shaped based on relevant national industry documents and data which establishes comprehensive technical and management
maintain multi-dimensional dialogue and exchanges with suppliers keeping abreast of guidelines for home medical device data. This standard was successfully submitted for approval. It sets regulations for collecting
production demands product quality and policy interpretations and fostering mutual transmitting storing applying and securing users' health data significantly aiding medical institutions platforms and medical
growth with an open and collaborative mindset. device businesses in providing robust data support for managing chronic diseases in residents.
25 26Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Information Systems and Data Security
Yuwell Medical strictly follows laws and regulations such as the Cybersecurity Law of the People's Yuwell Medical guided by the ISO 27001 Information
Republic of China the Data Security Law of the People's Republic of China and the Personal Security Management System and other relevant
Information Protection Law of the People's Republic of China. Based on these we have developed standards laws and regulations continuously
policies systems and operational procedures such as the Information Security Management Yuwell Medical has obtained Annual information security Information security advances the development of its cybersecurity
System Data Security Management System Information Security Risk Assessment Management ISO 27001 Information training sessions training coverage and information security systems. The Company
Measures and Information Security Outsourcing O&M Management Regulation. We aim to Security Management System has established clear policies and procedures for
structure a robust information security system to ensure the information security of the Company's certification. information security management data control risk
information infrastructures information application systems products and customers. 3 100% assessment emergency response plans for network
and information security incidents and information
We have established a three-tier information security management framework. The Chief Operating security training. We strictly regulate employee
Officer is responsible for the overall management of information security endorsing the information Completion rate of annual IT- behavior in areas such as cybersecurity operations
security policy determining information security requirements and handling major information specific review of business- Information leakage management server room management system
security incidents. The IT Leadership Group is responsible for the overall orientation and major critical system privileges incidents changes and data backup. Technically we employ
decisions of the Company's information security and supervision of the Company's information various measures including network isolation
security work. The Information Management Department is responsible for implementing the encryption protection audit tracking early warning
relevant requirements and work of information security guaranteeing the effective operation mechanisms and antivirus software to establish an
of the Company's information security operation and maintenance system and briefing the IT 100% 0 information security protection network. Additionally
Leadership Group. We have also put in place quantitative information security indexes and reward we have intensified our information and data security
and punishment mechanisms and incorporated information security protection into employee training and regular audits to comprehensively
performance appraisal to strengthen information security management. enhance our information security level.Data Backup and Recovery Information Security Awareness Training Strengthening Controls Information Security Audit Supplier Information Security Management
We have defined clear requirements and We persistently promote the establishment of an information security culture We regulate data security from We have established an The protection of customer
measures for data backup extraction by including information security in the induction training courses for new three key aspects: database information security control and information security is
usage and disposal to ensure rapid employees to ensure that new employees understand the risks and basic management data encryption review mechanism in line with included in the scope of
recovery in case of data loss or damage. requirements of information security related to their work. At the same time we and data backup and recovery. our business characteristics. investigation during the supplier
Additionally we utilize cloud services and carry out information security announcements and spot checks from time to Based on the value of the We monitor the risks in the admission and evaluation and
NAS for scheduled full and incremental time and call on employees to pay attention to the safeguarding of information information content sensitivity construction and operation of the confidentiality-related clauses
backups effectively preventing data loss. security in their daily work process. For example employees are required to lock and access scope all company Company's information security are stipulated in the Sourcing
the screen of their PCs when they leave their posts and identify information information is classified into system and propose mitigation Framework Agreement. This
security documents and differentiate their confidentiality levels. During the four levels including top secret and resolution measures to enhances suppliers' awareness of
reporting period Yuwell Medical organized a total of three information security and secret. This tiered security ensure business continuity and information security and ensures
training sessions with an impressive 100% employee coverage. protection system ensures the asset security. We engage third- that the Company's confidential
Emergency Response proper flow and transfer of party organizations to audit the information and associated data
Management information within the company Company's information security remain undisclosed.preventing unauthorized access system and issue the Information
We keep improving the Cybersecurity to sensitive data. We enhance System Audit Report. During
Emergency Response Plan and set up a graded control and access the reporting period the
technical platform for early warning and management by employing Company conducted special
emergency response so as to improve intelligent encryption and audits on five major areas: user
our ability to detect and analyze tiered protection measures access management system
security incidents. We also strengthen through an encrypted development system changes
the management and handling of document management system logical access and other general
information security emergencies to comprehensively establishing controls.ensure that the Company's information a data security protection
security is safeguarded in a timely and framework.effective manner.On-site information security training
27 28Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Leading Through
Innovation:
Energizing Life via Technology
Annual R&D investment: RMB
504.3712million
Yuwell health products covered by digital health services
200000units
Product recalls in 2023
0
29 30Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Driving the Future through Innovation research institutions and universities. Through independent and collaborative R&D we engage in technological innovation research and tackle key technological challenges. The Company possesses multiple internationally leading R&D technology platforms which enhance the
development of new products and the technological upgrading of existing products facilitate product enhancements and rapid iterations
Yuwell Medical is committed to leading industry development through innovation and enhancing the health of millions of families. and further improve manufacturing processes and quality control. With innovation as our driving force we are accelerating leadership in
Adopting a new strategy of "reshaping medical devices through innovation" the Company considers R&D as its central driving force for industry development. Yuwell Medical has established R&D centers in locations including Germany Shanghai Nanjing Suzhou Danyang
growth. It continuously explores innovative pathways and substantially increases investments in new product development proactively Xizang and Shenzhen creating an extensive global R&D network. Leveraging our advanced R&D capabilities and precise technical skills
responding to the trend in the medical and health industry towards more smart precise advanced and international solutions. With its we actively seek collaboration with high-level third parties to jointly develop innovation centers and R&D bases for new businesses and
focus on technological innovation Yuwell Medical aims to advance the industry and deliver high-value medical solutions to society. products as well as platforms for talent development thereby laying a solid foundation for the Company's ongoing innovation.Innovation and R&D System With a deep foundation in R&D technology Yuwell Medical undertakes research on critical and challenging industry technologies achieving a series of internationally advanced innovations patents and standards with independent intellectual property rights. We host multiple
national ministerial and provincial-level scientific research and innovation platforms such as the national enterprise technology center
In line with domestic and international laws technical guidelines national industrial design center and national postdoctoral scientific research workstation. We have consistently participated in national key
professional industry standards and international norms Yuwell Annual R&D investment: RMB R&D projects major national technological equipment research projects and Jiangsu provincial scientific and technological achievements
Medical has established comprehensive management systems transformation projects among other significant national and provincial initiatives.for innovation and R&D. These include the R&D Management
System Yuwell Medical R&D Cost Collection and Accounting
Management Methods and Technology Achievements and 504.3712million
Innovation Rewards and Discipline Methods. These frameworks
specify requirements and standards for project initiation project
management transition management succession management R&D investment as a percentage of revenue Fluid Simulation Technology Platform Motor Drive Technology Platform Compressor R&D Application Platform
outcome management and reward mechanisms. Utilizing cross-
departmental integrated product development (IPD process)
and product lifecycle management tools (PLM system) Yuwell
Medical accelerates the cultivation and development of new 6.33% New Material Technology Platform Advanced Anti-HCT Interference Micro-nano Laboratory MEMS
productive forces and bolsters its core industrial competitiveness. Technology Platform Process Platform
Upholding the principle of "doing the right thing in the right way"
the Company adheres to ethical standards in science and technology fosters a culture of social responsibility and centers its innovations
on market and customer needs. By focusing on key technologies and maintaining superior quality Yuwell Medical commits to not
developing or employing any scientific and technological advancements that could harm the natural environment human health public Received
safety or ethical standards. Through its development of innovative applicable new products technologies and processes the Company
makes a positive impact on driving social progress. Recognized as a
National High-tech Enterprise
Innovation and R&D Team 4 national-level awards for
scientific and technological innovation
Yuwell Medical firmly believes that talent is the cornerstone of technological innovation. We focus on cultivating a team of innovative practical
highly qualified and team-oriented R&D engineers and managers. To support this we have implemented several institutional norms including
the R&D Center Tutoring Management System Yuwell Medical High-Potential Talent Development Management Measures Research Personnel Participated in the development of Received
Continuing Education Management System and Technology Achievements and Innovation Reward and Discipline Methods. We recruit
exceptional talents globally and continually refine management mechanisms that foster the growth of scientific research talents. We intensify
the development of high-end scientific and technological talents place emphasis on training strategic R&D management talents and promote 4 national and industry 4 provincial-level awards for
long-term incentive plans for core talents to unlock the potential of our scientific and technological workforce. standards in 2023 scientific and technological innovation
The Company routinely organizes internal training sessions and exchanges for various R&D team modules. By facilitating both internal Note: The statistics are based on Yuwell Medical's parent company.and external training seminars and other forms of technical exchanges and lectures we enable our employees to master cutting-edge
technologies and stay abreast of industry trends. We also engage external industry experts as R&D consultants facilitating resource
sharing and synergy which enhances our technical prowess and supports the independent R&D of innovative core technologies.Moreover the Company actively engages in various technological innovation activities cultivating a culture of innovation that encourages Case Advanced Anti-HCT Interference Technology Platform
experimentation and accepts failure thereby helping employees remain in a state of continuous innovation and development.Yuwell Medical's POCTech BGM R&D team has leveraged electrochemical multipulse signals and multiparameter big data
Technological Innovation Platform regression analysis to develop a universal algorithm for electrochemical monitoring systems—the Anti-HCT Interference Correction
Algorithm. This algorithm significantly enhances the accuracy of our product system and offers versatility and scalability. It is
Yuwell Medical has established R&D centers and innovation institutes creating high-level open-ended technological innovation platforms applicable to all types of people including special groups such as newborns and pregnant women. It enables chronic disease
and comprehensive innovation systems. We proactively integrate the scientific and technological resources of domestic and foreign patients to monitor their conditions more effectively enhancing our competitiveness against top-tier global products.
31 32Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Yuwell Medical maintains a continuous focus on and deepens its research in innovative medical products major diseases and To manage intellectual property affairs the Company has established both a Legal Affairs Department and an Intellectual
chronic illnesses. Relying on its R&D centers and innovation institutes the Company has developed multiple products thus Property Department staffed with specialists dedicated to intellectual property management. This framework ensures a
creating a more rational and enriched product R&D pipeline. professional comprehensive and mature intellectual property management system. Yuwell Medical prioritizes raising awareness
of intellectual property rights among its employees through regular training sessions. These sessions aim to help employees
Case Comprehensive Upgrade of High-Flow Humidified Respiratory Therapy Device grasp the significance of intellectual property and to implement effective strategies for its application and protection within their
for Use Across All Departments work. Furthermore the Company actively manages and promotes patent applications to preserve its operational autonomy and competitive edge in the marketplace. Yuwell Medical not only protects its own intellectual property rights but also respects
those of others committing to avoid any infringement. The Company enhances patent risk management and strictly adheres to
In 2023 dedicated to alleviating patient suffering Yuwell Medical explored more scientific and confidentiality obligations during technical collaborations thus supporting fair competition and the healthy growth of the market.comfortable respiratory treatment solutions for acute and chronic respiratory diseases such as As of the end of the reporting period Yuwell Medical had filed 132 trademark applications with trademark offices both domestically
tuberculosis asthma and chronic obstructive pulmonary disease. The high-flow humidified and internationally and conducted 4 intellectual property training sessions extensively covering its R&D personnel.respiratory therapy device underwent upgrades in six key areas: mode flow functionality monitoring
user experience and accessories. These enhancements enabled full departmental coverage and
raised clinical treatment standards. Breakthroughs in high-precision steady-stream flow sensor
technology were achieved addressing current issues with respiratory parameter monitoring Total patents granted Invention patents granted Patents granted in 2023
errors in gas flow and pressure in high-flow humidified respiratory therapy devices. By optimizing
intelligent algorithms the device's capability to process minute respiratory parameters was further
enhanced. Self-regulating technology for oxygen concentration and flow was developed facilitating 1495 1066 198
easy adjustments to mixed oxygen gas levels and flow. Advancements were made in heating and
humidifying technology based on convective circulation structures significantly improving the
temperature and humidity treatment efficiency and control precision of high-flow humidifiers.Advancing in Yuwell Medical is deeply invested in the realm of smart healthcare with a focus on digitally developing key products and engaging in R&D activities involving "professional
Industry-Academia-Research Collaboration Smart Healthcare medical software products + algorithms + IoT." The Company seamlessly integrates
Engaging in multi-disciplinary industry-academia-research collaboration is a crucial driver of technological innovation at traditional medical product services with information technology establishes data
Yuwell Medical. The Company has established Industry-Academia-Research Collaboration Management Measures and actively standards for medical devices and constructs open empowering platforms to generate
collaborates with universities and research institutions to complement each other's strengths jointly address clinical pain points health data records for individuals and families. It empowers partners by offering
and enhance the diagnostic and treatment technology level of medical devices. This effort supports high-quality development in comprehensive business services to various enterprises organizations and partners that
healthcare. By the end of the reporting period Yuwell Medical had engaged in industry-academia-research collaborations with meet entry requirements thereby cultivating a digital medical service ecosystem.multiple institutions including Nanjing University of Posts and Telecommunications Beijing Institute of Technology Shanghai Jiao
Tong University the University of Shanghai for Science and Technology Sichuan University and Nanjing University. Digital Health Subscriptions to general health products and services (exercise diet psychology content)
Innovation
Case Thousand Experts Yuwell Initiative Healthcare Hospitals Professional medical Health service Rehabilitation and OTC
Service Providers institutions organizations elderly care institutions pharmacies
As a novel respiratory support technology high-flow nasal oxygen therapy is increasingly gaining attention from clinical Personal Empowering medicine Introducing medical AI Leveraging big data in health
experts and is widely used in intensive care units (ICU) emergency departments cardiothoracic surgery pediatrics and other for assistance for automation for service delivery
departments. In October 2023 Yuwell Medical hosted the 11th session of the "Thousand Experts Yuwell Initiative" at the Yuwell (Family) Digital
global industrialization base focusing on the clinical application of high-flow nasal oxygen therapy in emergency and critical Health Records Government regulation and data authorization
care anesthesia. By the end of the reporting period the "Thousand Experts Yuwell Initiative" series of conferences had covered 9 Data Collection
provinces and regions nationwide involving over 110 hospitals. Personal (family) health records; Personal physiological indicators; Personal (non-medical) and Management health indicators
Intellectual Property Protection
Yuwell Medical rigorously adheres to the Patent Law of the People's Republic of China Trademark Law of the People's Republic of Home Testing
China Copyright Law of the People's Republic of China and other relevant laws and regulations. The Company has instituted a and Treatment
robust set of management practices including the Intellectual Property Management System of Jiangsu Yuyue Medical Equipment
& Supply Co. Ltd. These measures are designed to fortify the management of intellectual property and R&D achievements thus
preventing the loss of intangible assets and fostering employee innovation and creative endeavors.
3334
Facilitating institutional access Empowering end-usersJiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Digital Health Services Yuwell Medical actively upholds the service philosophy that "proactively Case
managing health is the best guarantee for enhancing the quality of life" Yuwell Health Manager Platform
dedicating itself to providing users with efficient convenient and personalized
health management services. The Company establishes digital service The "Yuwell Health Manager Platform" is an innovative health management platform developed by Yuwell Medical for household
development goals constructs a comprehensive digital service architecture and medical devices. It supports a range of medical devices developed by the Company including blood pressure monitors glucose
Yuwell health products covered continually enhances its digital service system and end-to-end customer service meters pulse oximeters respirators thermometers and more. By utilizing technologies such as Bluetooth and 4G to connect with
by digital health services: solutions. Leveraging data-driven management structured accumulation mobile phones it enables real-time monitoring and recording of device data health data management and sharing. Users can
200000 and intelligent risk control the Company consistently expands its portfolio of gain a comprehensive understanding of their own or their family members' health data while the platform can promptly identify digital medical device products and pushes the boundaries of digital health potential issues provide personalized health advice offer accurate health management plans and remote health follow-ups. This services to improve service quality enabling more people to lead healthier more helps prevent and delay the occurrence and development of chronic diseases and their complications assisting users in achieving
units meaningful lives. During the reporting period Yuwell Medical achieved its digital self-health management and control. In the future Yuwell Medical will expand the application of digital therapy to a broader
service construction goals for foundational systems developed IVR voice robots market including extending to the management of other chronic diseases and elderly health management.and established a unified work order platform a smart knowledge base and a
user operations management platform thus creating a "smarter" health service
system that better analyzes user needs matches solutions to those needs and Case
provides feedback for design and production. Launch of New CGM Product Anytime
Establishing Digital Platforms Integrating Medical Resources Traditional diabetes monitoring tools require daily finger pricks and are inconvenient to carry. Addressing this pain point Yuwell
Medical has adopted cutting-edge global practices to develop Anytime a new continuous glucose monitoring (CGM) system
We have established a digital management platform that We have collaborated with medical institutions insurance product which was launched in 2023. Anytime constantly monitors glucose levels subcutaneously for 24 hours through sensors
integrates data collection analysis and the creation and companies and pharmacies to offer users comprehensive enabling real-time blood sugar dynamic monitoring without calibration. This can significantly reduce users' discomfort and the risk
implementation of personalized plans. Through the Yuwell health management and services. of infection. Anytime also provides comprehensive report interpretation and sharing helping doctors and patients adjust blood
Health Manager App Yuwell Member Center Applet and sugar management strategies in a timely manner thus offering a new solution for diabetes management.Yuwell Respiratory Manager Applet users can clearly
understand their blood sugar levels blood pressure
oxygen intake duration and sleep respiratory quality
facilitating easy health management with personalized
health management and consultation plans.Strengthening User Education Enhancing Personalized Services
Through smart platforms we have provided users with Based on user outcomes and feedback we have continually
health-related education and management knowledge optimized management plans to enhance personalization.enhancing their self-management capabilities and By analyzing and predicting trends in physiological
their understanding of and compliance with disease indicators we make timely adjustments to treatment plans
management. and lifestyle recommendations.
35 36Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Smart Healthcare Ecosystem Commitment to Uphold Quality
Guided by customer needs Yuwell Medical empowers partners across multiple scenarios to provide smart healthcare closed-
loop services to various enterprises organizations and partners that meet entry requirements creating a digital medical service
ecosystem that enables more people to enjoy innovative and high-quality medical services. Accessible High- Yuwell Medical remains committed to the principle of leading industry development through
innovation and enhancing the health of millions of families. Innovation serves as the cornerstone
To jointly create a favorable smart healthcare ecosystem it is essential to ensure the security supervisability stability and Quality Healthcare of its development and superior products as the benchmark. The Company expands its presence
consistency of digital medical product data collection. Yuwell Medical strictly complies with the requirements of relevant domestic in underdeveloped countries and regions accelerates the development of high-quality inclusive
laws and regulations regarding privacy protection including the Personal Information Protection Law of the People's Republic products and enhances the design of intelligent and user-friendly products. By ensuring quality
of China as well as other applicable privacy protection laws and regulations in the regions where it operates. By proactively through lean management enhancing product affordability and implementing fair pricing
participating in the formulation of industry standards related to medical data security the Company promotes standardized policies these efforts are aimed at making high-quality healthcare more accessible.secure and efficient utilization of medical data. For detailed information refer to the section "Data Acquisition and Application
Security" in the chapter "Efficient Governance: Marching Towards a New Era of High-Quality Development" in this report.Human-Centered and Inclusive Design The font size on product screens is adjustable to
accommodate the needs of elderly users.By adopting a user-centric and inclusive design philosophy the
Company addresses the specific challenges and requirements of Blood glucose monitors are designed to be modular and rechargeable shifting from disposable to reusable.its users particularly patients the elderly and other vulnerable
Empowering Hospitals: Extending Out-of-Hospital Medical Ecosystem to Form a Closed- groups. This approach simplifies the product interface making For the visually impaired products feature voice
loop Service devices more user-friendly and accessible. broadcasting and backlight designs.By aggregating data from household medical devices and creating personal health records for users we
establish connections with large public hospitals community hospitals and internet hospitals to achieve Intelligent User-Friendly Products Improving Public Healthcare Standards
remote diagnosis health monitoring and remote intervention for chronic disease patients. Combining
data with internet medical services can make hospitals more efficient and lower costs enabling patients to Yuwell Medical keeps investing in its core capabilities developing Yuwell Medical regularly conducts training for the professional
achieve long-term home health intervention and chronic disease management. and producing a range of digital and smart flagship products. use of medical devices and sets up incentive funds to support
These innovations result in smarter more convenient and grassroots doctors in their research efforts thus enhancing
Empowering Pharmacies: Creating a New Closed-loop of "Medical-Pharmaceutical-Services" elegantly designed products across various lines. Active efforts primary healthcare services.are made to improve usability and lower the barriers to entry
Through an open data platform we jointly build personal/family health records with OTC pharmacies aiming to "enhance the health of millions of families" with The Company maintains a focus on the healthcare development of
combining patients' medication and device usage to provide periodic targeted customized services. This higher-quality cost-effective and sustainable products. grassroots and underserved areas by participating in health-related
forms a combination mode of "pharmaceutical + health service + health care service" enhancing the public welfare activities promoting health education donating
service capabilities of pharmacies. Advancing in the smart healthcare sector and focusing on medical equipment and fulfilling its social responsibilities. These
the digital construction of key products Yuwell Medical sets efforts expand the reach of high-quality medical resources and
Empowering General Healthcare Institutions: Providing Health Intervention and standards for medical device data and develops an open benefit an increasing number of patients. More details on these
empowering platform for personal and family health record health initiatives can be found in the section "Safeguarding Life and
Management Services management. By supporting partners in creating a digital Health" in the Chapter "Talent-oriented: Achieving the Value of Life."
Through an open data platform we aid community hospitals in establishing personal/family health records healthcare service ecosystem the Company is dedicated to
for users achieve data interoperability with relevant tiered diagnosis and treatment hospitals and thus offering innovative high-quality and accessible medical services
promote the closed-loop intervention and management of chronic disease residents in the covered area. to a broader audience. For further information refer to the
section "Advancing in Smart Healthcare" in this report.Enhancing Product Affordability Training for pharmacy staff
Case Adhering to the World Health Organization's guidelines Yuwell Medical Platform Certified to EU MDR Standard for "fair pricing" Yuwell Medical employs a value-based
transparent and fair pricing strategy. This approach ensures
In 2023 the Positive Airway Pressure Units Webpage Information System developed by Yuwell Medical was certified under the EU product quality while reflecting affordability. The Company
Medical Device Regulation (MDR) standard. This groundbreaking platform the first worldwide to receive such certification for home explores more sustainable pricing models in different markets Guiding the use of medical equipment
medical devices enables the effective management of users' personal and treatment data by distributors and doctors. At the end to ensure the effective implementation of pricing policies in community activities
of each respirator usage cycle essential data including usage duration device leakage pressure Apnea-Hypopnea Index (AHI) transparency in pricing and accessibility of products. This
blood oxygen levels and pulse rate is uploaded to the management system via communication modules. This feature facilitates endeavor enables our innovative products to reach a wider
sophisticated data analysis enhancing health management for users. population in underprivileged regions.
37 38Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Case Innovative Technology Boosts Sleep Health Product Quality and Safety
Superior product quality is fundamental to a company's continued success. Yuwell Medical consistently prioritizes the production
As obesity rates and aging populations increase worldwide Obstructive Sleep Apnea (OSA) has emerged as a major global public health of high-quality reliable products adhering to both domestic and international regulatory standards. This includes compliance
challenge. In China alone the number of OSA patients has reached 176 million. However the diagnosis rate remains at merely about 1% with the Product Quality Law of the People's Republic of China Regulations for the Supervision and Administration of Medical
with very few patients continuing treatment after their initial diagnosis. In response to this critical issue Yuwell Medical has leveraged Devices and Medical Equipment Production Quality Management Specification. We have implemented comprehensive quality
its advanced respiratory technology to develop the third-generation sleep respirator marking significant advancements in technology management procedures such as Quality Manual and Document Control Procedures to establish high-standard lifecycle-spanning
comfort and intelligence. This innovation offers new possibilities for restoring normal sleep patterns in OSA patients. quality and risk management systems. Yuwell Medical has obtained ISO 9001 and ISO 13485 certifications and its key products
are approved by the US FDA EU CE and South Korean KGMP. We meticulously oversee every facet of our quality management
The third-generation sleep respirator features an innovative integrated airway and a low-noise high-efficiency fan ensuring stable flow and system fostering a culture of quality awareness among all staff members. Through annual internal and external audits as well as
pressure while minimizing noise for a smoother breathing experience. It incorporates a novel algorithm that automatically detects a broader management reviews we ensure the continuous improvement of our quality management system.range of sleep events tailoring personalized treatment plans accordingly. The machine also includes a 15mm narrow-diameter intelligent
heated tube employing advanced temperature control technology to minimize condensation and enhance the warmth and comfort of the
breathing experience. Equipped with a built-in 4G IoT module the device allows for automatic uploading of sleep reports to the WeChat
applet enabling patients to easily access daily treatment outcomes and share their sleep reports instantly facilitating remote monitoring Quality Management Goals for Yuwell Medical in 2023:
and guidance. This system allows doctors to quickly assess treatment progress and sleep quality without the need for frequent hospital
visits thereby providing patients with timely and effective treatment.One-time inspection pass rate ≥
Since 2012 Yuwell Medical has dedicated itself to the independent development of domestically produced sleep respirators. Recognizing 99.00%
the challenges in developing respirators particularly the absence
of a central monitoring system and an IoT framework at the
clinical and medical consortium levels the Company initiated a
"hospital-enterprise model." This approach fosters collaboration Pass rate for random inspections in 2023 One-time inspection pass rate
with numerous domestic hospitals and experts to devise effective
solutions. Additionally we have established eight sleep IoT
centers to deliver personalized sleep therapy. Through extensive
clinical trials these centers gather ample training samples for 100% 99.73%
user sleep breathing tests ultimately delivering comprehensive
diagnostic and treatment solutions for OSA patients.Product Certifications Quality Management System Certifications
EU Medical Device Conformité Européenne (CE) Certification1
45 100% of main products have passed ISO 9001 Quality Management System certificationvalid registrations for Class II and III medical
devices in China Yuwell Medical has obtained ISO 13485 Medical Device
Quality Management System certification
23 Passed the audit under the Medical Device Single Audit Program (MDSAP)valid records for Class I medical device filings Certified by the China Certification Committee for Medical
in China Devices (CMD)
Note 1: EU Medical Device CE certification encompasses the Medical Device Regulation (MDR) certification In Vitro Diagnostic Devices Regulation (IVDR)
certification Medical Device Directive (MDD) product certification and In Vitro Diagnostic Medical Devices Directive (IVDD) product certification.
39 40Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
End-to-End Lifecycle Quality Management
Design R&D Procurement Production Post-Market Quality Supervision
Customer Customer
Requirements Satisfaction
Quality Control - R&D and Design Quality Control - Procurement Quality Control - Production Post-Market Quality Supervision
The design process is standardized to be more specific and Quality risks throughout the supply Rigorous quality control is implemented in the Adverse events are proactively collected and reported
aligned closely with user needs creating a closed loop from chain lifecycle are strictly controlled production process with detailed standardized with risks timely and effectively controlled after the
requirements to design usability. Closed-loop experience through regular audits and quality production processes and operating procedures medical device is marketed. The quality department
research and usability verification mechanisms are employed reviews of material suppliers. ensuring compliance with quality standards evaluates customer feedback according to the
to test design quality. Real users are recruited in the later stages Detailed content can be found in the at every step. Requirements for equipment principle of reporting at suspicion reporting suspected
of product development to conduct usability tests in scenarios section "Sustainable Supply Chain" accuracy and reliability are incorporated into adverse events of medical devices as such. Regular
close to reality evaluating whether the design meets customer in the chapter "Efficient Governance: equipment management standards with regular comprehensive reviews of high-risk and frequently
quality requirements. Usability test results can significantly Marching Towards a New Era of maintenance and calibration ensuring quality occurring adverse events are conducted by quality R&D
impact product certification and market launch potentially High-Quality Development." assurance throughout the product manufacturing production and technical departments establishing
having veto power to ensure design quality. process. Under the Company's digital strategy effective analysis evaluation and correction systems to
advanced technology and intelligent equipment ensure a year-on-year reduction in adverse events.Quality management system procedures such as the Quality are continuously introduced to promote full
Manual and Design and Development Control Procedures automation of key products improve lean
are developed based on ISO 9001 and other standards. R&D management identify areas for improvement
quality policies and objectives are clarified and quality audits and optimize quality control strategies to ensure
are conducted at each key milestone to ensure quality at stability efficiency and quality in the product
every stage of the project. The R&D center regularly organizes manufacturing process.internal training or exchanges covering medical device quality
system standards regulations test requirements etc. to instill
quality management awareness throughout the R&D process.
41 42Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Advanced Quality Inspection System Comprehensive Quality Culture
Building
Yuwell Medical has established a well-structured and efficiently operated laboratory system. The Product Safety Laboratory has Training coverage rate for quality-
obtained accreditation from the China National Accreditation Service for Conformity Assessment (CNAS) along with certifications Yuwell Medical is committed to fostering related personnel
such as ISO 17025 Laboratory Accreditation CTF Laboratory Accreditation and UL Witness Laboratory Accreditation. Furthermore the involvement of all employees in
it regularly engages in training activities and audits conducted by various domestic and international third-party organizations quality management by establishing a
ensuring that its laboratory testing capabilities match those of the industry's leading laboratories thereby constantly safeguarding diverse and comprehensive quality course
the quality safety of the Company's products. training system significantly enhancing 100%
each employee's quality awareness and
The Company has developed rigorous specifications including the Incoming Inspection Control Procedure Process Inspection knowledge. The Company creates an annual
and Finished Product Inspection Control Procedure and Non-conforming Product Control Procedure. It performs comprehensive quality training plan for all employees
internal testing on every batch of products following the medical device product quality standards ensuring meticulous quality and rigorously implements a range of Attendees of training in 2023
control from the entry of raw materials to product shipment effectively mitigating potential safety and quality issues. Beyond quality-related training sessions based on
internal testing the laboratory facilitates product compliance with safety electromagnetic compatibility environmental and this plan. This includes but not limited to
noise tests according to standards. For portable oxygen concentrators when product standards are modified or new models are medical device quality system standards 3517
introduced samples are sent to third-party testing institutions. Mass production proceeds only after the safety and reliability of the and regulations training specialized quality
products are verified maintaining a 100% pass rate for product inspections. training and more. In the reported period
Yuwell Medical conducted 65 quality
Stringent Quality Audits training sessions as per the annual plan Total duration of quality training
reaching 100% of its employees. Training
To ensure the effective operation of the quality system Yuwell Medical routinely conducts internal and external audits across all topics included medical device quality-
business lines. The Company performs annual internal audits of the quality management system assessing various products against related regulations quality management
applicable laws regulations and standards. It also hosts annual audits by external third parties and accepts audits from domestic and system education quality inspection 166 hours
international regulatory bodies and partners continuously improving the quality management system's integrity and effectiveness. processes quality risk management and
medical device registration.In 2023 Yuwell Medical underwent 37 quality management system audits conducted by government regulatory agencies and external
audit organizations achieving a 100% pass rate. This included 11 audits by third-party certification bodies 7 audits pertaining to
medical device production quality management standards 1 drug regulatory review 1 audit of epidemic prevention materials
supervision and 17 second-party audits (customer factory audits). Additionally 23 of Yuwell Medical's products were randomly
inspected by government regulatory agencies all passing inspection. Product Safety Management
Yuwell Medical has developed a comprehensive product recall system and mechanisms
in compliance with the Medical Equipment Production Quality Management
Specification and The Regulation of Medical Devices Recall Administration. It has
also instituted internal management systems like the Medical Device Adverse Event
Monitoring Management System. Regular simulated recalls are conducted to validate
the effectiveness and scientific validity of the product recall management system.Yuwell Medical adheres to relevant national and local regulations such as the Measures
for the Management of the Monitoring and Reevaluation of Medical Device Adverse
Events and has implemented the Protocol for Active Reporting of Adverse Events.Adverse events are actively collected and reported with customer feedback being
assessed according to the principle of reporting at suspicion thereby timely and
effectively managing risks post-market release of medical devices. Any incident
suspected of being an adverse event related to the medical device should be reported
under this protocol.Product recalls in 2023
0
43 44Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Customer Relations At Yuwell Medical "customers as the core" stands as one of our core values. We have Response to Requests
developed a comprehensive omnichannel customer service ecosystem grounded in
Management the principle of beginning with customer needs to create a synergistic system across At Yuwell Medical we place immense importance on customer
our entire business chain. By thoroughly understanding and integrating customer feedback. We have established a robust customer complaint
needs into all business processes we guarantee efficient responses to customer and consultation system accompanied by a diverse array of
inquiries thus significantly improving overall customer satisfaction. communication channels. We have also developed the Yuwell
Medical Complaint Management Regulations to enhance the
investigation handling tracking and oversight of customer Achieved a customer complaint
Proactive Services complaints. Thorough analyses of customer feedback are handling rate of
Yuwell Medical has formulated protocols and standards including the 400 Service Process conducted to drive continuous improvement ensuring that
and Standards to create a distinctive customer service system. This system features multi- complaints are addressed promptly and effectively. Moreover
channel front-end outreach an integrated mid-stage collaborative platform and a robust the Company has implemented a unified work order service 100%
Recognized among the Top back-end support framework ensuring a smooth customer service experience from platform integrating AI robots to provide real-time high-
pre-sales to post-sales across all channels. The system facilitates customer interaction quality responses thereby facilitating rapid human-machine
100 through various channels including a 400 hotline online public accounts apps enterprise collaboration in resolving customer issues. During the WeChat and third-party stores. Moreover it supports communication through diverse reporting period Yuwell Medical successfully managed 1731 Chinese mediums such as phone text and video. Centralized around our global customer service customer complaints achieving a resolution rate of 100%.
Service Brands in 2023 headquarters we have established regional service centers in key cities like Shanghai
Beijing Guangzhou Chongqing Chengdu Wuhan and Shenyang complemented by over
100 after-sales service outlets. This strategic network guarantees a seamless connection Customer Satisfaction Management
Awarded the Digital Service between the Company and our customers.Management Innovation Yuwell Medical consistently conducts customer satisfaction surveys
Award to gain comprehensive insights into customer opinions and The Company is committed to providing proactive services. By leveraging digital tools suggestions with the aim of continually enhancing our products
such as a unified platform on WeChat and unique product codes for individual items
Received three major awards and services. Throughout the reporting period the Company we integrate data across the brand users and products. We have also developed our Attained a B2B customer satisfaction
at the China Customer Service carried out customer satisfaction surveys for both its B2B and B2C proprietary O2P (Product Insight and Operation) platform that performs a detailed analysis rate of
Festival sectors. Satisfaction questionnaires were issued to B2B customers of user data throughout the customer lifecycle generating a complete 360-degree user
"Best Service Case" achieving a response rate of 100%. For B2C customers satisfaction profile. This enables our customer service team to provide prompt support before during
"Team Expert"and was gauged through proactive evaluations received during customer and after the sale ensuring immediate awareness of customers' current product usage 96.2%
"Most Beautiful Customer calls enabling timely identification and constant improvement thereby delivering intelligent fast and self-directed premium services.Service Staff." of any issues. In 2023 Yuwell Medical implemented multiple
To cater to the increasingly personalized service needs of our diverse user base and foster improvement measures in response to survey findings. For instance
stronger brand loyalty and satisfaction Yuwell Medical offers a range of heartfelt services to address dissatisfaction with services we enhanced customer Reported a B2C customer satisfaction
beyond mere product support with a strong emphasis on meticulous customer care. service capabilities by organizing service scripts refining typical rate of
case handling approaches and providing staff training to improve
their communication skills. Additionally for users with urgent
We provide online guidance and one-on-one video guidance services catering to needs we established an internal emergency response mechanism Professional Guidance 97.25%
users who require additional support (*for wearing certain products). and improved satisfaction by offering backup machines among
other measures. To address customer demands regarding delivery
schedules we routinely compiled problem orders for timely follow-
Health Education We offer a variety of health education materials including recorded courses knowledge
up and coordination by dedicated personnel.cards and short videos designed to meet the diverse health needs of different populations.Responsible Marketing
We regularly organize the 7-Day Family Blood Sugar Control Camp offering online
solutions to the challenges of managing diabetes; we also facilitate community and social During our marketing and promotional activities Yuwell Medical strictly adheres to the Advertising Law of the People's Republic of Diabetic Care
group platforms that provide mutual assistance and communication to help alleviate the China among other relevant laws and regulations. We have implemented responsible marketing systems including the Front Desk
complexities and anxieties associated with blood sugar management. Marketing Service Standards and Norms to ensure clear mechanisms for disseminating information about products and activities.These standards clarify the principles and guidelines for our marketing personnel during sales and promotional activities
ensuring that our product promotions are conducted ethically scientifically and objectively. We utilize intelligent tools such as
For vulnerable groups such as the elderly living alone disabled individuals and knowledge bases and robotic corpora which we regularly update and enhance alongside targeted training programs. This ensures
Heartwarming Service those facing economic hardships we provide doorstep services waivers for freight that information is communicated accurately and reliably minimizing errors in manual transmission. Under protocols like the
and repair costs complimentary accessories and spare machines. Document Specification Combing Guide we have also established robust internal audit processes and verification mechanisms
strictly overseeing the production and external distribution of promotional materials.
45 46Jiangsu Yuyue Medical Equipment & Supply Co. Ltd.
Environmentally Friendly:
Accelerating Green and Low-Carbon
Transition
Total investment in environmental protection: RMB
7.0168 million
Greenhouse gas emission intensity
0.0277tons of CO2 equivalent/RMB 10000 revenue
Waste discharge compliance rate
100%
47 48Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Enhancing Environmental Management Environmental Management Objectives
Yuwell Medical routinely assesses the environmental impact of its business operations allocates specific environmental objectives
Yuwell Medical actively responds to national requirements for green and low-carbon development by strictly adhering to and tasks across various departments actively encourages these departments to take appropriate actions and enhances the
environmental protection laws and regulations such as the Law of the People's Republic of China on Environmental Protection monitoring and feedback mechanisms to track progress toward these goals. This approach of closed-loop management facilitates
Law of the People's Republic of China on Water Pollution Prevention and Control Law of the People's Republic of China on the ongoing enhancement of the Company's environmental protection performance.the Prevention and Control of Atmospheric Pollution Law of the People's Republic of China on the Prevention and Control of
Environmental Pollution by Solid Waste and Energy Conservation Law of the People's Republic of China among others. Following Management Policy
the standards of the ISO 14001 Environmental Management System and ISO 50001 Energy Management System we have established Compliance with environmental laws pollution prevention and management assurance of continuous improvement and
an environmental management system and developed guidelines such as the EHS Management Manual. We integrate the concept enhancement of management performance
of green development into our operations enhance monitoring and continually improve to maximize competitive strength while
minimizing environmental impact. During the reporting period Yuwell Medical did not experience any environmental pollution Objectives Indicators Achievement Status
incidents face any administrative environmental penalties or encounter any major environmental accidents.Manage solid waste through categorized Waste classification rate ≥ 90% hazardous waste control at
Achieved
collection and unified treatment 100% recyclable waste management at 90%
Total investment in environmental Annual environmental Coverage rate of environmental Implement noise reduction measures to minimize Compliance with Class 3 standards of GB12348-2008 Emission
protection: RMB incidents protection training the impact on the external environment ensuring Standard for Industrial Enterprises Noise at Boundary; Achieved
no stakeholder complaints Daytime ≤ 65 decibels Nighttime ≤ 55 decibels
7.0168 0 100% Control fugitive emissions of exhaust gases at a Compliance of fugitive emissions of particulate matter at million boundary within acceptable standards without the boundary with the Integrated Emission Standard of Air Achieved
external complaints Pollutants
Implementation of separate systems for rainwater and
Ensure the discharge of domestic sewage sewage in the facility area with domestic wastewater
Achieved
EHS Management System meets regulatory standards meeting discharge standards after undergoing
treatment in septic tanks
Yuwell Medical has established a three-tier EHS management structure systematically assigning responsibilities. The General
Manager serves as the primary responsible officer for environmental protection and is tasked with overall planning and Enhance the greenery coverage of the factory Achievement of a 15% greening rate within the factory Achieved
coordination of the Company's EHS management efforts. A designated manager's representative is responsible for developing area to improve the environment premises
plans to ensure the establishment implementation and maintenance of the EHS management system and reports to the General
Manager. Each functional department is responsible for implementing the provisions and requirements of the Company's EHS Environmental Risk and Emergency Management
management system to ensure the realization of EHS management policies and objectives. EHS management objectives are
incorporated into the performance evaluation of management with a veto policy in place for significant adverse environmental Yuwell Medical has developed systems such as Identification Evaluation and Control Procedures for Environmental Factors
events. These objectives once broken down and allocated to relevant departments are linked to the performance evaluations of and Management Review and Control Procedures . The Company proactively manages environmental risks and conducts
department heads and relevant employees. hazard assessments constantly identifying and updating risk points and maintaining detailed risk registers. Through robust risk
control measures it ensures that critical environmental risks are managed effectively according to set standards. The Company
adheres strictly to protocols such as the Classification Method for Environmental Accident Risk of Enterprise (HJ941-2018) and
has developed Emergency Preparedness and Response Procedures and Emergency Plans for Sudden Environmental Incidents.Comprehensively lead the Company's EHS management organizing the development of EHS Extensive emergency response drills are performed to ensure rapid and effective control of unexpected environmental incidents.policies and objectives ensuring resources for the effective operation of the EHS management
General Manager system and preventing and managing overall environmental risks. Environmental Management System Certification and Audit
Yuwell Medical consistently advances the development and certification of its
environmental system promoting a standardized and systematic approach to EHS
Assist the General Manager in establishing implementing and maintaining the EHS management management. The Company has obtained ISO14001 Environmental Management Yuwell Medical has obtained
system ensuring the realization of EHS policies and objectives; organize risk opportunities and System certification and has been certified as a Green Factory in Jiangsu Province. It ISO14001 Environmental
Manager's assessments planning response measures; lead the investigations and handling of significant undergoes annual ISO system supervisory audits and triennial recertification audits Management System
Representative environmental and safety incidents. conducted by third-party certification bodies. certification
The Company conducts comprehensive internal environmental audits cross-
departmental reviews and strict self-assessments regularly. Every quarter third-party Yuwell Medical has been
Execute the stipulations and requirements of the Company's EHS management system ensuring professional organizations are engaged to audit the environmental management certified as a Green Factory
Functional related tasks are carried out and achieving the EHS management policies and objectives. system ensuring thorough monitoring of its operational status and environmental in Jiangsu Province
Departments performance. During the reporting period Yuwell Medical completed 4 environmental reviews across all its facilities and conducted 4 third-party environmental audits.
49 50Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Green Product Design Addressing Climate Change
Yuwell Medical integrates the concept of green innovation into its product development actively employing new materials Climate Risk In accordance with relevant policies regulations international initiatives and trends
equipment processes and technologies across packaging design production distribution transportation and sales. This strategy Yuwell Medical keeps improving its ability to manage climate risks and opportunities
fosters miniaturized lightweight low-energy and environmentally friendly designs delivering superior eco-friendly products. Management thereby enhancing its climate resilience.Integrated Lightweight Low-Energy Design Risk Type Risks Opportunities and Potential Impacts Response Measures
We prioritize the recycling and reuse of materials by utilizing For integrated fetal monitors we employ a unified design
the reuse of mesh atomizer packaging liners implementing that eliminates connecting spring wires reducing the overall * The increase in extreme weather
a shared design for wheelchair frame components and size of the machine and resource consumption. We prioritize events such as extreme heat
adopting an integrated platform design for the electronic shared material use and incorporate internal integration Extreme Weather severe cold torrential rains and * Strictly control EHS and supply chain risks
sphygmomanometer product line all aimed at enhancing and lightweight designs to enhance the efficiency of space typhoons could affect business and enhance emergency management.the spatial efficiency of our products. utilization in our products. continuity.* Assess regional climate risks during project
selection and planning.* Increase production efficiency through
* A rise in average temperatures energy-saving technological improvements
Physical Risks could increase operational costs Temperature Rise and optimization of the energy structure.for company infrastructure and
pose health risks to employees. * Keep abreast of global scientific
We employ a lightweight motor design in our electric wheelchair products and have developed pocket battery applications. advancements related to diseases caused
by climate change and enhance research
in products and technologies.Disease * Climate change may elevate the
Green and Healthy Materials Green Packaging Epidemics risk of transmitting epidemics.We rigorously control hazardous substances such as mercury We aim to maximize the simplification of packaging while
lead cadmium and hexavalent chromium by selecting maintaining product safety continuously enhancing the
materials compliant with the ROHS directive thereby reducing utilization of packaging materials through internal recycling * Stay updated on policy changes ensure
potential harm to human health. and resource reuse. For instance we replace foam liners * Increasingly stringent national compliance with new regulations and
with recyclable air cushion bags made of LLDPE/NYLON co- Policy and policies and requirements may proactively adapt to policy shifts.We select packaging suppliers and products that adhere extruded film to reduce the use of plastics and substitute Regulatory Risks lead to higher costs and tighter
to environmental certification standards like ISO14001 traditional foam packaging. operational constraints.* Monitor developments in the carbon
market and prepare accordingly.Environmental Management System certification to ensure
that the packaging materials meet stringent environmental We choose recyclable biodegradable or reusable packaging
guidelines. materials such as paper cardboard and biodegradable
plastics to minimize environmental impact. * Intensify R&D in low-carbon technologies
* The growing demand for carbon and products and strategize for green
Case Transitional Turnover Box Project in Collaboration with SF Express reduction in the value chain and and smart transitions by capitalizing on Risks
the emergence of new low-carbon opportunities in clean technology.Yuwell Medical aligns with the national 14th Five-Year Plan for Circular Economy Development. During the R&D stages the Market and technologies and alternatives may * Design carbon reduction pathways and
Company considers packaging reduction and other factors. To address the issue of excessive packaging waste from individually Technological obsolete current technologies or implement new materials equipment
packaged small consumer items Yuwell Medical has partnered with SF Express on the Turnover Box Project. The turnover box Risks products. Adopting green industries processes and technologies. Thoroughly
design accommodates a substantial volume of items and features stackable functionality. This initiative offers several benefits. and technologies can boost product assess the investment returns and
First it reduces the use of packaging materials for consumer deliveries thus preventing over-packaging. Second it decreases competitiveness albeit at increased feasibility before launching low-carbon
the packaging weight for the same shipment volume which in turn lowers energy consumption and carbon emissions during costs of low-carbon transition. transition projects and select the optimal
transit. Third the turnover boxes are designed to be reused up to approximately 40 times and are either compressible or solutions based on reality.collapsible to save space facilitating efficient and circular resource use. This substantially lowers both waste disposal costs and the
environmental footprint.
51 52Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Energy and Carbon Advancing its energy management in alignment Energy Management Strategy
with the ISO 50001 Energy Management System
Management standards Yuwell Medical develops guidelines Yuwell Medical is spearheading the development of a comprehensive big-data platform for energy management. This platform
such as the Energy Management System Manual Yuwell Medical's parent integrates data collection process monitoring and energy management into a unified system that utilizes various levels of
strengthens its energy management framework sets company has obtained metering equipment for centralized monitoring of diverse energy media and key energy-consuming devices. This integration
energy-saving goals and conducts energy audits. ISO 50001 Energy facilitates a seamless closed-loop management system spanning energy planning statistics analysis and assessment ensuring
The Company actively adopts new energy-saving Management System the energy system operates safely reliably economically and efficiently. This transformation shifts energy management practices
technologies processes and materials constantly certification from empirical to analytical and from manual processes to digital solutions.enhancing its level of energy management. The
energy management objectives are annually updated
and integrated into performance assessments. Monitoring Integration Energy Indicators
Energy Management Goals
Statistical Accounting
Indicator Goal Requirements Achievement Status
Comprehensive Energy 5.66 kg standard coal/RMB
≤ 6.08 kg standard coal/RMB10000 Energy Planning
Consumption per Unit of Output 10000
Efficiency ≥ 85% pressure ≥ 0.75 exhaust temperature Pressure 0.75 exhaust
Air Compressor
<100° C temperature 80° C
Power Supply and Distribution Power factor ≥ 96% line loss rate < 5% Power factor 97%
Ground Source Heat Pump Efficiency COP ≥ 5.4 Efficiency COP ≥ 5.6
Grounded in statistical accounting and enhanced by monitoring integration this strategy oversees the implementation
Screw Chiller Efficiency COP ≥ 5 Efficiency COP 5.3 of energy plans incorporates control adjustments and intensifies thematic analysis centered on energy indicators thus
supporting energy forecasting decision-making and performance evaluation.Note: The statistics are based on Yuwell Medical's parent company.Energy Energy Decision- Pre- In-process In-process Post- Post-
Indicator Unit 2023 Forecasting making planning Accounting Control analysis assessment
Gasoline Tons 76.40
Diesel Tons 33.27
Energy
use and Natural gas Cubic meters (×10000) 86.23
greenhouse Outsourced electricity Kilowatt-hours (×10000) 3492.32
gas emissions
Total energy consumption Tons of standard coal 5600.27
Tons of standard coal/RMB
Energy consumption intensity 0.0070
10000 revenue
Direct greenhouse gas emissions (Scope 1) Tons of CO2 equivalent 2201.36
GHG Indirect greenhouse gas emissions (Scope 2) Tons of CO2 equivalent 19916.69
Emissions Total greenhouse gas emissions (Scope 1 and 2) Tons of CO2 equivalent 22118.05
Tons of CO equivalent/RMB
Greenhouse gas emission intensity 2 0.0277
10000 revenue
Note: The greenhouse gas emission indicators follow guidelines from the World Resources Institute (WRI) and the World Business Council for
Sustainable Development (WBCSD) including GHG Protocol and Specification with Guidance at the Organization Level for Quantification and
Reporting of GHG Emissions and Removals. The emission factor for outsourced electricity in the Scope 2 category according to the notification by
China's Ministry of Ecology and Environment (HBQHH [2023] No. 43) is 0.5730 CO2/MWh.
5354
Performance Evaluation
Thematic Analysis
Control Adjustments
Energy Decision-making
Energy ForecastingJiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Optimizing Energy Usage Structure Reducing Environmental Impact
Through initiatives such as expanding photovoltaic power Yuwell Medical primarily employs municipal water for both production
generation and acquiring green electricity the proportion of Water Resource and office purposes situating its major production and operational sites
clean and renewable energy usage is gradually increased. Management in regions with low water resource risks. The Company rigorously adheres
to the Water Law of the People's Republic of China as well as local laws
Nine rooftop areas at our factory site have been utilized regulations and standards. The Jiangsu Yuyue Medical Equipment &
for the 5.724MWp Distributed Commercial and Industrial Supply Co. Ltd. Water Conservation Management System has been
Photovoltaic Power Station Project generating 7.605 formulated alongside the management of water use planning. This
million kilowatt-hours of electricity in 2023. encompasses the development of water-saving and annual water use
plans the assignment of responsibilities to key water departments and
Yuwell Medical's cafeteria has transitioned to using clean the designation of dedicated personnel for management. Additionally
energy natural gas instead of electricity and liquefied Yuwell Medical actively promotes production process optimization
petroleum gas further supplemented by solar energy to The Heyang photovoltaic project with an installed capacity of equipment process enhancements and the sustainable utilization of
reduce electricity consumption. 5.724MWp generated 7.605 million kilowatt-hours of electricity in water resources. During the reporting period Yuwell Medical conducted an
2023 surpassing the annual target of 5.884 million kilowatt-hours.
evaluation of water-saving enterprises in accordance with the Evaluating
Guide for Water Saving Enterprises (GB/T7119-2018) successfully meeting
all basic requirements management assessment indicators and technical
Technological Energy Savings specifications thus earning classification as a water-saving enterprise.High-energy-consuming inefficient and outdated equipment Regular inspections and maintenance activities are carried
is replaced with systems that incorporate more efficient out based on detailed supply and drainage network
production technologies and processes enhancing energy diagrams and metering networks. Original records and
utilization and reducing operational emissions.Quota statistical ledgers are regularly standardized and analyzed.Management Internal quota management is enforced incorporating
All operational sites are equipped with intelligent central energy Water intake rewards for savings and penalties for exceeding.systems creating a low-consumption comfortable environment.The implementation of frequency conversion projects for
chiller units has transformed traditional fixed-frequency chillers 561377.9tons Annual funding is allocated for water-saving project
into variable-frequency units achieving an annual reduction of construction and technological upgrades encompassing
992000 kilowatt-hours in electricity consumption. the utilization of water-saving equipment. Advanced
foreign spray equipment is procured to automatically
Water-saving
Workshop lighting has been entirely upgraded to energy- detect greenery conditions and irrigate as necessary Renovation
efficient fixtures achieving a 100% usage rate. This is Water consumption intensity thereby enhancing water resource utilization while
complemented by zoning and group controls to minimize ensuring the preservation of green spaces.electrical waste further. 0.70tons/RMB 10000 revenue
Rainwater collected in rainwater collection tanks is
directed to the factory pond to irrigate factory greenery.Energy Saving Management
Rainwater Through the collection of natural rainfall 1250 tons of
Reuse water can be conserved annually.Leveraging information technology and big data analysis we perform real-time monitoring of energy consumption status unit Recycled water volume
energy data trends and operational parameters through the smart energy online monitoring system. This helps guide and fine-tune
production management and processes efficiently ensuring precise energy control.Regular water-saving education campaigns are conducted
Real-time energy consumption monitoring: We collect and Energy visualization analysis: We conduct in-depth analysis 35 tons to disseminate knowledge regarding water-saving laws
analyze the energy consumption of major equipment in of energy data to discern consumption trends and changes regulations methods provisions and standards as well Water-saving
real time through our online monitoring system promptly across various areas and time periods. This helps us as to popularize water-saving scientific knowledge and Promotion
identifying unusual consumption patterns. identify opportunities for energy-saving improvements and enhance water-saving awareness among all employees.develop more effective energy-saving strategies.
55 56Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Emissions and Waste Management Hazardous Waste
Yuwell Medical adheres to a clean and green production and operation model strictly adhering to relevant laws and regulations Hazardous solid waste includes filter bags sludge activated carbon from exhaust gas treatment filter cotton waste packaging
such as the Regulation on the Administration of Permitting of Pollutant Discharges . The Company has developed an EHS drums containing chemicals waste machine oil emulsion waste oil sludge etc. The Company sets up hazardous waste
Management Manual to rigorously manage exhaust gas emissions wastewater discharge and solid waste disposal. Pollution warehouses with waterproof and anti-leak measures. Hazardous waste is classified stored temporarily and supervised by
prevention facilities are concurrently designed constructed and put into operation with main projects. Qualified third-party dedicated personnel according to the Standard for Pollution Control on Hazardous Waste Storage (GB18597-2023). Qualified
testing agencies are regularly commissioned for self-monitoring and environmental monitoring information is promptly disclosed units with professional disposal qualifications are regularly commissioned to safely and effectively dispose of hazardous waste
to ensure a 100% compliant discharge of all types of waste and to minimize the environmental impact of emissions. During the with transfer forms synchronously submitted to the national management platform upon completion.reporting period no significant environmental incidents occurred and no administrative penalties or criminal liabilities were
imposed by relevant ecological and environmental departments due to major environmental incidents. Moreover there were no
instances of exceeding emission standards or illegal discharge of exhaust gas or wastewater pollutants.Total discharge of hazardous waste Annual reduction in hazardous waste by collaborating
with comprehensive utilization and disposal entities
Waste emission target for 2024: Reduce
100% per-unit product emissions by 48.38 tonsAchieved 100 tons
compliance in wastewater exhaust gases compared to 2023
and noise emissions in 2023 2.5%
Wastewater Management
Wastewater primarily originates from domestic sewage R&D and manufacturing. Yuwell Non-Hazardous Waste
Medical strictly complies with the Law of the People's Republic of China on Water Pollution
Prevention and Control Integrated Wastewater Discharge Standard The Reuse of Urban Non-hazardous solid waste includes scrap metal scraps metal dust welding slag filter cores resin powder activated carbon
Recycling Water-Water Quality Standard for Industrial Uses and local standards. A from wastewater treatment and general material packaging drums. The Company achieves paperless operations by displaying
Wastewater Management System has been formulated to enhance online monitoring and real-time material inventory receipts and issues via wireless electronic ink screens. General production solid waste is collected
regular inspections enforce strict discharge management of wastewater generated during Wastewater discharge volume and recycled as renewable resources by waste collection stations. For domestic solid waste and household garbage it is
production operations and ensure compliance with sewage treatment discharge and collected uniformly and regularly cleared by the sanitation department.recycling regulations. The Company implements a rainwater and sewage diversion system
directing rainwater into the municipal rainwater drainage network with part of the production
wastewater recycled for production and the remainder discharged externally. High- 3566
concentration organic wastewater from production undergoes pretreatment and is combined tons
with various cleaning waters and alkaline scrubber wash wastewater into a mixing tank. After
harmless treatment 60% of the wastewater is discharged into the municipal sewage network Total discharge of non-hazardous waste Comprehensive utilization rate of general solid waste
while the remaining 40% enters the recycled water treatment system. Once treated to meet
standards it is reused for production line rinsing saving 4380 tons of water annually. 245.58 tons 100%
Exhaust Gas Management
Exhaust gas emissions mainly comprise volatile organic compounds nitrogen oxides sulfur oxides and particulate matter generated
during the production process. Yuwell Medical strictly complies with the Law of the People's Republic of China on the Prevention and
Control of Atmospheric Pollution and local atmospheric pollutant emission standards. Following the management requirements of
the internal Exhaust Gas Management System the overall emissions of the factory area are controlled to ensure compliance after
treatment by the exhaust gas treatment device. Monitoring sampling holes are installed at emission outlets to regularly monitor key
parameters such as gas composition concentration and flow rate thereby preventing risks of exhaust gas emissions.Solid Waste Management
Yuwell Medical strictly adheres to the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution
by Solid Waste and requirements of other relevant laws and regulations formulating the General Solid Waste Management System
and Hazardous Solid Waste Management System. It establishes rigorous solid waste disposal processes and safety operation
standards follows the principles of reduction resource utilization and harmlessness and controls waste rigorously throughout the
entire process from production storage and transportation to disposal. During the reporting period the Company did not experience
any illegal events related to waste disposal.
57 58Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Talent-oriented:
Achieving the Value of Life
Average annual training duration per employee
24.7 hours
Proportion of female employees in middle and senior management
27%
Charitable donations: RMB
42.874million
59 60Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Growing Together with
Employees
Yuwell Medical views human capital as a primary driver of
sustainable development. We are dedicated to providing
high-quality cost-effective services to customers continually
enhancing our core competitiveness and achieving sustainable
positive growth. We concentrate on talent acquisition and
retention refining our compensation and performance systems
respecting employees' rights and interests and fostering a
favorable open work environment. We ensure the health and
safety of our workplace promote our strategic talent reserve
plan and clarify dual career paths for employees. We commit
to transparent and fair practices in talent identification and
selection actively develop and enhance employee skills
enabling them to leverage their strengths and add value. We aim
to create a nurturing environment offering care and support
to our employees promoting growth in a diverse and inclusive
setting and achieving mutual integration and success between
employees and the enterprise.Talent Acquisition and Retention
Talent Attraction
As a talent pool for our future management trainees we systematically advance our annual recruitment
Aligned with strategic and business planning Yuwell Medical developed multiple management systems including the Employee plans for fresh graduates and interns proactively connecting with over 30 universities nationwide.develops medium- and long-term human resources plans Handbook and Yuwell Medical Recruitment Management System
Campus Through a blend of online and offline recruitment efforts we offer competitive career development and actively explores talent management strategies. We to standardize recruitment and onboarding processes eliminate all
Recruitment opportunities to recent graduates.precisely target talent acquisition channels through campus forms of discrimination and bias and ensure the legality fairness
recruitments online platforms and internal referrals while and equity of the recruitment process. In recent years Yuwell
deepening our talent retention strategies to cultivate a Medical has achieved significant success in talent recruitment We actively partner with external professional recruitment websites to display crucial information about our
professional international workforce. and management earning accolades such as Best Employer of company culture values and work environment. By showcasing our corporate brand employee work styles
the Year Outstanding Human Resources Management Award and Online benefits training opportunities and promotion channels we keep enhancing our attractiveness as an employer.Yuwell Medical adheres strictly to the Labor Law of the Most Talent-Loving Employer. Channels
People's Republic of China and the Labor Contract Law of
the People's Republic of China among other relevant laws Yuwell Medical has attached importance to employee needs. Considering the dynamics around our global manufacturing base in Danyang we actively bolster our
and regulations. We have established systems for internal As our team has expanded and become younger in recent
Regional local employer brand through regional talent networks and community outreach efficiently meeting our referrals internal competitions and rehiring employees years the Company has grown and created open flexible office recruitment needs for general labor.adhering to principles of openness fairness comprehensive spaces fostering a modern liberating work environment. This Channels
assessment and both moral and technical excellence. These setting enhances comfort facilitates communication and boosts
systems provide employees with platforms to showcase collaboration dedicated to providing employees with a physically We have established systems for internal referrals and competitions encouraging employees to
their talents. During the recruitment process the Company and emotionally gratifying safe and healthy work experience.Internal recommend competent and ethical colleagues allowing more employees with both moral and technical
rigorously complies with local laws and regulations and has
Channels skills to emerge.
61 62Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Labor Rights and Interests
Regarding campus recruitment Yuwell Medical has recruited over 250 new graduates since 2021. In 2023 alone we employed more Yuwell Medical adheres to national laws and regulations including the Labor Law of the People's Republic of China the Company
than 166 interns and fresh graduates with 42 entering our 2023 Management Trainee Program. The Company and its subsidiaries Law of the People's Republic of China and the Labor Contract Law of the People's Republic of China as well as relevant
systematically advance recruitment plans for new graduates and interns actively engaging with prestigious domestic universities conventions of the International Labour Organization. The Company has formulated internal protocols and implementation rules
such as Nanjing University Southeast University China Pharmaceutical University Nanjing University of Science and Technology including the Anti-Discrimination Management Procedure
Nanjing Medical University and Soochow University. These efforts lay the groundwork for building our talent pipeline. Labor Employment Procedure Special Working Environment
Assessment for Female Workers Management of Child and
Furthermore to expand the scope and depth of our collaboration with universities and drive high-quality integration of industry Minor Workers Yuwell Work Injury Management Measures
and academia the Company actively collaborates with universities and research institutions on R&D projects. We have established and Employee Handbook. These measures aim to comply
employment and internship bases in partnership with institutions such as Beijing Institute of Technology Southeast University with human rights protection policies and regulations Labor contract signing rate Number of
University of Shanghai for Science and Technology Hohai University Nanjing University of Posts and Telecommunications and clarify the code of conduct and requirements for employees discrimination incidents
Jiangsu University. These collaborations include joint technical research institutes facilitating the rapid transformation and prevent potential human rights risks and provide reliable
implementation of advanced achievements and promoting innovation within the industry. protection for employees' rights and interests. 100% 0
Employee Compensation and Incentives
Number of employees recruited during the reporting period Number of newly recruited graduates Complying with the Labor Law of the People's Republic of China Yuwell Medical aligns with the Company's "performance-
1247 68 evidenced" culture and management requirements to organize and establish the Interim Measures for Yuwell Medical's Compensation Management System. This system is constructed around business characteristics and performance-driven evaluation and incentive mechanisms constantly improving compensation management and bonus distribution plans to ensure
employees are fairly compensated in relation to their work outcomes.The Company's compensation system consists of a fixed salary variable performance bonuses and long-term incentives linked
through a mechanism that correlates with company performance organizational effectiveness and individual employee results.Employee Distribution by Gender Employee Distribution by Age Variable performance bonuses and long-term incentives are aligned with company and departmental performance targets set
according to employee role categories and output contributions effectively driving employees to meet performance objectives and
43.05% 10.24% 25.94% consistently enhancing output and retention of key staff. Based on market trends and industry practices combined with company
Below 30 years old performance the compensation plan is determined to enhance the overall competitiveness of the Company's remuneration. Male Additionally Yuwell Medical has established an employee stock ownership plan for core staff offering stock incentives that align
Female 30-50 years old their personal gains with the Company's long-term goals and benefits thereby motivating employees to focus on and support our
51 years old and above long-run development fostering a positive organizational culture and promoting sustained and effective growth.
56.95%
63.82% Employee Communication
Yuwell Medical respects the rights of its employees to participate express themselves and oversee operations. We facilitate
Employee Distribution by Hierarchical Level Employee Distribution by Education
various platforms for this including face-to-face communication with the Chairman 360-degree evaluations for management
2.21% 5.00% 40.46% 34.04% communication meetings internal complaint channels and internal forums. We have established internal protocols such as the
Employee Complaint Management Procedure Yuwell Medical Supervision Management Measures and Yuwell Medical Reporting
Senior management Bachelor's degree or above Management System to provide avenues for communication dialogue and appeal. Employees are encouraged to contribute ideas
and suggestions on company management to ensure mutual understanding and address their needs. The Company maintains
Middle management College degree strict confidentiality regarding employee complaints reports and grievances prohibiting any retaliation against legitimate
Grassroots employees Below college degree complaints. Violations of this policy will result in disciplinary action and severe cases may lead to legal consequences.
92.79%25.50%
Internal Publication This platform disseminates company developments product information management
Yuwell New Horizon strategies and shares employees' exemplary deeds and insights.Employee Distribution by Region
360-degree Evaluation Comprehensive surveys are conducted among the manager's superiors peers subordinates
1.54% for Management and collaborators to gather extensive feedback on the manager.
Chinese employees (including Face-to-face The Chairman and General Manager engage in direct communication with key employees
employees from Hong Kong Communication Meetings from various departments fostering open discussions on organizational business
Macao and Taiwan) with the Chairman cultural and other topics while attentively listening to employees' opinions.
98.46% Overseas employees
Employee Forum This platform enables all employees to express themselves freely with an official account
"Fish Pond" designated to provide unified and timely responses to topics of employee concern.
63 64Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Yuwell Medical places great importance on listening to employees' voices and has Employee Training and Development
established a robust communication and feedback mechanism. Since 2020 the
Employee satisfaction rate Company has conducted annual organizational climate surveys comprehensively At Yuwell Medical we prioritize the professional growth of our employees by establishing a fair platform for their development.
83.6% listening to employees' genuine voices and demands across six dimensions: "job We consistently enhance our talent cultivation framework devise and enact policies that support career advancement and create responsibilities supervisor support team collaboration cultural identity business opportunities for internal mobility. We encourage self-motivated and collaborative learning champion the concept of lifelong processes and learning & growth." The feedback rate for 2023 was 84.6% (a 12.6% education and thus elevate the professional competencies skill sets and overall management capabilities of our staff.
increase from the previous year) with an employee satisfaction rate of 83.6% (a 5%
increase from the previous year). Through continuous internal feedback exposure
and resolution of management issues at all levels the Company has been improving Employee Training System
its management level enhancing employee experience and fostering collaborative
development between the organization and its employees. In alignment with the Company's strategic focus on customer orientation digitization and youth engagement Yuwell Medical has
established the Yuwell Learning Development Center to continually bolster the competitiveness of our talent. By collaborating
closely with various business units and leveraging online learning platforms we have created professional and management talent
cultivation systems tailored to the Company's future strategic needs including systems for new hires (via social recruitment and
management trainee programs). Our learning solutions integrating training and practice across diverse formats and scenarios
constantly boost employee engagement and learning efficiency enhancing their professional and managerial skills.Talent Development Channels
Yuwell Medical adheres to a talent strategy primarily focused on internal development supplemented by external recruitment.Relying on three major talent cultivation systems we have constructed a dual-channel talent development framework. This assists
employees in aligning their individual characteristics with both professional and managerial growth better fitting their personal
Welfare Guarantee career goals and organizational needs. For professional roles we have established a qualification system and customized various talent development programs to help employees clarify their positioning and capability gaps planning personalized development
Building upon the national basic social security system and tailored to the Company's paths. For management roles we consistently conduct talent reviews aligned with business planning and develop layered
specific circumstances we keep enhancing our welfare offerings ensuring a robust management training programs by combining training with practices. This approach selects and trains reserve leaders while
and diverse package for our employees. We procure accidental injury insurance for our enhancing the leadership skills of current managers.workforce support those in need with government subsidy applications and promote
the integration of talent within the community. Apart from statutory holidays and annual Leadership Professional Capabilities
leave we offer additional home leave for expatriate employees and arrange for annual
physical examinations holiday gifts sick leave allowances and team-building activities
all in the pursuit of fostering a supportive and nurturing work and life environment.Management talent Professional talent
Moreover the Company encourages employees to pursue academic and professional skill Leadership cultivation system cultivation system R&D
advancement during their spare time reimbursing tuition fees for educational endeavors. Pioneering
Presently we have sponsored 25 individuals for further education empowering Senior manager Wharton study tour Departmental team building
employees with greater opportunities for career development and advancement.Sustaining MarketingHigh-potential talent development Professional skills training
Progress
Marriage Marriage Leave Educational Advancement Professional Learning On-the-job leader training Position certification training
Skill Enhancement Production
Housing Housing Provident Fund Setting SailSocial Medical Insurance Employer New manager transition Professional learning maps
Insurance
Liability Insurance
Annual Physical Examinations Sick Leave
Health Embarking Functionality
Allowance High-Temperature Allowance Holiday Events Game Competitions New Hires Training System (Social Recruitment & Management Trainees)
Activities Basketball Competitions Annual Meetings
Family Open Days Team Building
Prenatal Check Leave Maternity Leave
Childbirth
Paternity Leave Parental Leave Commemorative Gifts Retirement Course Resource Management Instructor Team Management Training Project Management
Retirement Commemorative Certificates Social
Festivals Holiday Gifts Pension Insurance
Online Learning Platform: Yuwell Academy
65 66Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Talent Cultivation Projects Leadership Training
Yuwell Medical develops distinctive talent cultivation programs with a product-oriented mindset integrating training with real- Yuwell Medical remains committed to the internal selection and development of its leaders. Through a variety of educational
world challenges. Based on management levels we have established four major training plans: Embarking Setting Sail Sustaining methods including in-house course development training and practical exercises and overseas study tours we have established
Progress and Leadership Pioneering covering new hires/management trainees grassroots leaders high-potential talents and tiered management training programs to enhance leadership skills and strategic insight.middle-to-senior managers conducting personalized training activities. We primarily utilize internal courses and instructors
supplemented by external resources. Through internal instructor development we summarize business and management Case
expertise consolidating and replicating exceptional organizational experiences and capabilities. Additionally by inviting external Yuwell Medical's Wharton Study Tour Program
industry experts to teach and visiting external companies we assimilate superior business and management knowledge.Collaborations with universities and research institutions help attract and develop high-quality talents enhancing the employer In line with the Company's internationalization strategy and aiming to enhance the global leadership capabilities of its top executives
brand and our research capabilities. Yuwell Medical has established a strategic partnership with the University of Pennsylvania's Wharton School one of the world's leading
business schools. Together we have launched the Yuwell & Wharton Global Leadership Program to provide the Company's senior
management with a platform for learning world-class business expertise. The program is conducted in the form of study tours leveraging
Investment in Employee training: RMB Total attendance of training throughout the year the expertise of the faculty team from the Wharton School of
the University of Pennsylvania. It offers training and learning
10.0767 34356 opportunities in various dimensions such as leadership development technological innovation and cutting-edge million medical knowledge. By the end of 2023 the program had
successfully completed two phases engaging more than 50
senior executives and top talents within the Group. Furthermore
Total training duration Annual average training hours per employee we support employees in pursuing part-time graduate studies
or MBA programs. Employees who successfully pass their exams
171780 24.7 and get accepted will have their training costs covered by the hours hours Company which motivates them to continually enhance their
skills and achieve personal growth.New Employee Training
Professional Training
Yuwell Medical prioritizes the development of new employees. By implementing the online New Employee Learning Program
we quickly engage with employees upon their onboarding to ensure they promptly acquire essential corporate knowledge. Yuwell Medical conducts specialized professional training across its R&D production and marketing systems. For key roles we
Additionally through offline group training sessions we help new employees systematically learn about our business processes create job-specific learning paths and specialized training projects to help employees improve their core competencies and
and product knowledge facilitating their understanding and integration into our corporate culture. In 2023 we conducted 55 new teamwork abilities thereby infusing new energy into business development.employee training sessions covering over 1300 new hires.Case Qualification and Capacity Building in the R&D System
Case Yuwell Star Program
In order to boost the Company's product R&D capabilities the Yuwell Learning and Development Center has spearheaded the
The Yuwell Star Program is the Company's management trainee initiative a key project to attract innovative talent and cultivate creation of a tailored training program. This initiative draws from the development and evolution case studies of the Company's
future core leaders. The program includes various training forms such as Pre-employment Online Classes Yuwell Star Program products and focuses on hands-on training projects to deliver targeted skill development. In our R&D system we have established
Onboarding Bootcamp Dual Mentorship in Business +BP and the Yuwell Star Program Career Advancement Camp. With an OMO a professional qualification framework and a job learning roadmap to help R&D specialists enhance their specific skills and
(Online-Merge-Offline) hybrid training model we consistently support the growth and development of management trainees expertise. Training for key operational personnel is managed by the team managers and employees can only begin their duties
aiding their professional advancement and career transition. upon passing the required evaluations. For certain specialized positions certification is required with credentials issued by third-
party organizations or obtained through pre-job training.As of the end of 2023 the Company had successfully In 2023 our R&D system conducted two sessions of the
developed more than Excellent Project Manager Training Camp for key roles of R&D
project managers. This program focused on building core
376 competencies in project management team management product line planning and system design. By employing a management trainees from variety of methods including lectures hands-on practice
campus recruitment with many of them now periodic evaluations skill discussions and case studies the
occupying key positions within the Company. training helped project managers quickly master essential
job skills and improve their job competency.
67 68Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Academic Exchange Performance Evaluation and Feedback for Employees
Yuwell Medical prioritizes research funding and vigorously engages in academic exchanges with external research bodies and Yuwell Medical is committed to building a performance-oriented to protect the rights and interests of all employees and ensure
higher education institutions. In 2023 we collaborated with external professional organizations and invited leading industry experts corporate culture that fosters a positive working atmosphere the objectivity fairness and integrity of the performance
as guest lecturers to conduct numerous external exchanges and training sessions for various departments and subsidiaries within and shared values. Performance management serves as a management system.the Group. These efforts significantly contributed to sparking team innovation expanding the vision of our technical staff acquiring crucial link in executing operational plans and aligning them
the latest advancements and enhancing knowledge exchange and sharing among our employees. with corporate strategies. Annually the Company breaks down For mid and senior-level employees Yuwell Medical implements
its strategies ensuring they are implemented at every level a 360-degree evaluation system. The assessment includes
of the organization from departments to teams and down distributing survey questionnaires to the evaluated individuals'
Case Health Management and Respiratory Oxygen Therapist Training Course to each employee. This structured approach guarantees that supervisors colleagues subordinates and collaborating
both individual and departmental performances align with departments. This system is divided into three main stages
The Yuwell Learning and Development Center in collaboration the organizational strategic goals. Ultimately this converts covering the entire process of the performance evaluation
with the Medical School of Jiangsu University has assembled corporate strategies into daily activities for each employee system to enhance the fairness of performance assessments.a distinguished team of professors from Jiangsu University ensuring the successful implementation and achievement of In the preparation phase differentiated survey questionnaires
and experts from the medical industry to conduct the Yuwell desired outcomes. are designed based on the assessment objectives for various
Medical Health Management and Respiratory Oxygen Therapist groups; all related individuals including evaluators and those
Training Course. The training course concentrated on the The Company actively promotes a correct understanding being evaluated are introduced to the 360-degree tools. During
treatment of home respiratory and oxygen therapy along with of performance management among all employees by the assessment phase the process is conducted anonymously
chronic disease management from both domestic and global establishing effective communication mechanisms and to strictly maintain privacy rights and the confidentiality of
perspectives. It presented scientific theories dissected crucial thoroughly disseminating its principles. For high-performing assessment reports fostering a relaxed and free assessment
techniques and methods tracked the latest international employees we employ a combination of material and non- environment. In the feedback phase through feedback from
research advancements and discussed pathways for the material incentives to maximize their motivation. For those all sides evaluated individuals receive insights and coaching
development of the health industry. Moreover the training with less satisfactory performance we promptly create effective helping them understand their strengths and weaknesses
course offers a specialized training platform for participants to improvement plans to facilitate rapid progress. Additionally more comprehensively recognize the Company and superiors'
enhance their clinical knowledge in home ventilator therapy mechanisms for performance appeals disciplinary complaints expectations and identify gaps encouraging them to define
oxygen therapy and chronic disease management while also and investigative interviews are implemented at every stage directions for future improvement and development.improving their technical proficiency and practical skills.Occupational Health and Safety
Improve the Management Mechanism
Case Industry-Academia-Research Collaboration Projects of Yuwell Medical's POCTech Team Yuwell Medical strictly abides by the laws and regulations including the Work Safety Law of the People's Republic of China the Law of
the People's Republic of China on Prevention and Control of Occupational Diseases the Fire Protection Law of the People's Republic of
Since 2023 Yuwell POCTech has established industry-university-research collaboration projects with the University of Shanghai China the Regulations on the Safety Management of Hazardous Chemicals and the Provisions on the Administration of Occupational
for Science and Technology and the Nanjing University of Posts and Telecommunications to build internship research bases Health in Workplaces. Additionally the Company adheres to the requirements of the ISO 45001 management system and established
together. This initiative focuses on talent development technological innovation and industrial upgrading. It aims to help rules and regulations such as the EHS Management Manual and the Measures for Management of Work-related Injury Accidents. The
university students understand industry trends and corporate dynamics while facilitating the sharing of the latest industry research general manager is in charge of the Company's safety production identifying and preventing health and safety risks.achievements between enterprises and universities. Through talent interchange the initiative champions technological progress.Investment in health and safety: RMB
4.46 The parent company of Yuwell Medical obtained the ISO 45001 Occupational Health and Safety Management million System certification
Total number of specialized training sessions conducted The coverage rate of health Number of work-related
across all production systems throughout the year and safety training deaths among employees
66100%0
Note: The statistics are based on Yuwell Medical's parent company.
69 70Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Ensuring the Health of Employees Building a Happy Yuwell
Yuwell Medical places a high emphasis on enhancing employees' awareness and understanding of safety issues. The Company
conducts three types of safety education for all employees and establishes both online and offline learning platforms to increase
production efficiency and competitiveness all while ensuring the personal safety of its employees and others. We have also Humanistic Care Yuwell Medical has always been committed to the health and happiness of its
implemented a proactive safety mechanism at production sites including graded safety measures. At high-risk work areas and employees advocating the philosophy of working hard and living happily. We
locations safety reminders and barriers are in place and optical grating sensors are installed on machines like stamping presses encourage a balance between work and life to create a harmonious and healthy
and bending equipment to prevent mechanical injuries. Additionally regular health screenings are organized for employees to work environment and offer comprehensive humanistic care to our employees in
prevent occupational diseases and sudden illnesses and safety hazards are regularly identified and mitigated to continually various ways. For their physical and mental well-being we regularly organize sports
improve the working environment for employees. competitions and cultural activities to provide relaxation and adjustment. In terms
of daily life we actively provide various convenient services. In terms of employees'
families we create a Home for Employees and build a warm and happy workplace
Training for Production Safety through a series of actions such as support visits and love funds.We have made the promotion of our production safety management mechanisms a standard practice. In line with production
schedules we regularly hold training sessions to ensure that key position employees clearly understand their safety responsibilities
and that the management team enforces critical policies thereby protecting the occupational health and safety of our employees. Visiting retired employees and
employees in need
Promotion and Training for Fire
Protection and Traffic Safety
Two fire protection drills covering all
employees are held regularly every year
to enhance employees' awareness of
fire protection. Additionally promotion
and training for fire protection and
traffic safety are conducted periodically
with a total of 13 training sessions held
throughout the year accumulating 1288
attendances. Inviting employees' families to visit
Fire protection training site the Company on Yuwell Family Day
Establishing Yuwell Charity Foundation to help
employees with family difficulties every year
Training for First Aid
Correct usage of cardiopulmonary
resuscitation and AED are compulsory
courses for all our employees. A total
of 6 training sessions were conducted
throughout the year with 308 attendances.Online first aid courses have been
launched with 337 people completing the
training and examination.Giving gifts to female employees on
International Working Women's Day
Providing first aid training to in-house staff
71 72Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Diversity and Equal Opportunities
Yuwell Medical adheres to international human rights norms such as the
International Bill of Human Rights the International Labour Convention
the ILO Declaration on Fundamental Principles and Rights at Work and
the United Nations Guiding Principles on Business and Human Rights
as well as the laws regulations and policies of the locations in which it
operates. Adhering to the principles of openness fairness and justice
Yuwell Medical rigorously standardizes the entire talent recruitment
process. The Company ensures there is no discrimination based on
gender education age race family status religious beliefs or cultural
background. It strictly forbids child labor forced labor and any other
illegal employment practices as well as those that contravene policy
regulations ensuring equal employment and development opportunities
for every employee. During the reporting period Yuwell Medical has
not encountered any incidents involving child labor forced labor or
employee discrimination.We create a healthy comfortable youthful and modern working
environment for all employees. Annually the "618 Online Shopping
Festival" and "Double 11" events become company-wide efforts
of collaboration and hard work. We also organize activities such as
International Women's Day events the Yuwell Chairman's Cup Basketball
Tournament and the Yuwell Supercar Mini Team each year promoting a
philosophy of "diversity and inclusion hard work and happy living."
Hosting YUWELL DAY to strengthen staff unity
The Company makes every effort to create a diverse equal and inclusive
working atmosphere by regularly conducting communication between
superiors and subordinates HRBP interviews and team activities. This
strengthens communication and understanding among employees Case
promoting cultural integration and more efficient team collaboration Diversified Measures Adopted by Yuwell Medical's Thai Branch
thereby creating a diverse equal and inclusive working atmosphere. On Percentage of female employees
top of that the Company promotes inclusive workplaces for individuals among reserve management talent As a company advocating fairness our Thai branch strictly adheres to the principles of equality confidentiality respect and anti-
with disabilities helping more of them achieve dignified employment. harassment in the talent recruitment process providing a fair employment environment for every qualified candidate. During the
By the end of 2023 the Company had a total of 135 ethnic minority 35% interview it is prohibited to inquire about religious beliefs family status age and other information of the interviewees to avoid employees and 14 employees with disabilities. implicit discrimination caused by stereotypes. After employees are hired the Thai branch organizes birthday parties and holiday
events to help employees better integrate into the team and adapt to the corporate culture. It endeavors to build diversity while
For female employees Yuwell Medical provides equal career working to be closer to employees and create a diverse and inclusive working environment.opportunities and guarantees equal salary and benefits. The Company
seeks a female-friendly working environment by providing material Percentage of female employees in
welfare and improving relevant systems to promote diversity and technology R&D roles
inclusiveness in workplaces. We ensure that female employees enjoy full
prenatal check-up leave maternity leave and breastfeeding leave and
encourage male employees to take parental leave during their spouses' 29%
childbirth. After returning to work female employees are given the
necessary time based on their physical condition and are encouraged
to gradually resume their duties and take time to adapt to the work The proportion of female employees
status after returning from childbirth. Yuwell Medical also provides fair in middle and senior management
training and promotion opportunities for female employees to accelerate
their progress and enhance their diversified skills. Female employees
are encouraged to break through career ceilings take on key positions
assume important roles and explore more possibilities for career 29%
development in the Company.
73 74Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Safeguarding Guided by the mission of Alleviating patient suffering and enhancing doctors' Case Public Welfare Training Project "One Hundred Training Sessions Enter the Community"medical skills Yuwell Medical constantly explores philanthropic models that
Life and Health align with the development of the times and social demands. With our expertise in medical devices and industry experience we are committed to fulfilling our Yuwell Primedic is actively engaged in nationwide public welfare training sessions reaching into schools enterprises communities
corporate responsibilities. and government agencies. Through initiatives like One Hundred Emergency First Aid Training Sessions and Last Mile Emergency
Aid Yuwell Primedic aims to address the challenge of the public's lack of knowledge and confidence in using emergency medical
equipment improving pre-hospital emergency care efficiency and boosting patient survival rates. Yuwell Primedic intends to set
Total investment in charitable donations: RMB up emergency training centers in 100 cities and 1000 counties equipping them with essential emergency medical equipment such
as automated external defibrillators (AEDs) cardiopulmonary resuscitation (CPR) training manikins blood pressure monitors
42.874 thermometers and first aid kits. These devices will also serve as interactive teaching tools. Each week public emergency training courses will be conducted covering four key areas: chronic disease detection health awareness volunteer services and rescue million training aiming to enhance medical treatment capabilities at the grassroots level.
Dedicated to Over the past 50 years Yuwell Primedic has been dedicated to the emergency service In 2023
sector protecting lives worldwide. In China over 10000 individuals have obtained
Emergency Medical certification as first aid volunteers through Yuwell Primedic's first aid training program.Assistance Globally the Yuwell Primedic rescue ecosystem extends to over 100 countries saving
hundreds of lives annually. Yuwell Primedic has also founded the Flying Fish Rescue
Team collaborating with professional event safeguarding organizations to provide free
support for over a thousand global marathon events. This has led to the successful
rescue of dozens of runners experiencing sudden cardiac arrest.Case Yuwell Primedic conducted over with more than providing first aid support for overSupporting the 6th "Medical League Competition: Following Xuanzang's Footsteps"
In 2023 the 6th "Medical League Competition: Following Xuanzang's Footsteps" was grandly held in Guazhou Gansu Province.Medical professionals from all over China gathered in the Gobi Desert to take on the 81-kilometer hiking challenge. The course 200 100000 50events
of this "Medical League Competition" included various terrains such as deserts the Gobi Desert and canyons presenting first aid training sessions attendances
participants with significant physical challenges in high temperatures and intense sunlight throughout the entire journey. Yuwell
Medical extended full medical equipment support throughout the event offering participants the the new-generation dynamic
glucose meter Anytime CT3 blood pressure monitors and other products to help them effectively monitor their health status.Furthermore the rescue teams were equipped with the Yuwell Primedic Y-series automated external defibrillators (AEDs) capable
of withstanding falls from heights of up to 1.6 meters and delivering rapid 6-second rescue responses. These measures ensured the
safety and well-being of all participants contributing to the successful completion of the event.We have delivered nearly a thousand specialized training sessions to Partnering with Tencent we conducted a four-day emergency training
medical institutions public organizations enterprises and academic program in Beijing for 150 delivery riders from Meituan.institutions. We leverage Internet of Things (IoT) technology to broaden
the scope of the emergency response system encompassing AED device
locations first aid volunteers hospitals and maintenance services.
75 76Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Committed to Diabetes Care Contributing to Over the years Yuwell Medical has been supporting education by donating funds to
various charitable education organizations including the Nanjing Normal University
Diabetes characterized by elevated levels of blood sugar due to hormonal imbalances and subsequent multi-organ damage Rural Revitalization Education Development Foundation Guangdong Youth Development Foundation
ranks among the world's most prevalent chronic diseases. Yuwell Medical is deeply committed to chronic disease management and Shanghai Educational Development Foundation. The Company has established
collaborating with media hospitals and other professional organizations to promote diabetes prevention and control. Together education support funds and scholarships and donated funds for the construction
with the residents' committees we organize free clinic events extending care and support to individuals affected by diabetes. of "Yuwell Buildings" in multiple schools. We have also been supporting the "Rural
Health Initiative" by providing medical kits to the Jack Ma Rural Teachers Initiative
aimed at promoting the physical health of rural educators for five consecutive
years. Furthermore we have donated nearly 20000 5-liter medical-grade oxygen
concentrators to grassroots medical and health institutions in central and western
rural areas benefiting a total of 19131 town-level hospitals across 22 provinces
autonomous regions and municipalities as well as the Xinjiang Production and
Construction Corps (XPCC). Through charitable organizations such as the China
Charity Federation (CCF) Xianyang Red Cross Society Jiangsu Social Donation Center
and Shanghai Charity Foundation we have donated funds and essential medical
equipment to support rural revitalization projects and nursing homes across multiple
regions. These contributions have further strengthened the health management and
disease prevention capabilities in rural areas of central and western China.Case Alleviating Oxygen Supply Challenges in Xizang
In 2018 the Company established the Yuwell Medical Highland Oxygen Production Industry
In collaboration with Jiangsu Provincial People's Hospital and Affiliated Hospital of Jiangsu University Yuwell Medical organized the charity event Park in Lasa Xizang to help alleviate oxygen supply challenges in high-altitude regions. This
"Towards the Future - Health Summer Camp." More than a hundred type 1 diabetes patients from provinces and cities such as Jiangsu Anhui Henan Delivery time in urban areas of facility integrates advanced manufacturing assembly warehousing and service capabilities
and Guangdong were invited to join the camp. Xizang: within 1 hour to offer a wide range of highland oxygen concentrators such as centralized diffusion split-
type diffusion micro-pressure oxygen cabins cabin-style portable vehicle-mounted and
Yuwell Medical has founded the "Yuwell In partnership with Xinhua News Agency Yuwell Medical co-produced the diabetes individual nasal suction meeting the diverse oxygen needs of people living in high-altitude
Diabetic Community" as a hub for diabetes public welfare short film "Out-of-control Sweetness." Renowned experts from Grade regions. We have introduced an innovative "1+1 service model" combining grid-based
patients to connect and engage covering 3A hospitals were invited to underscore the importance of blood sugar monitoring Delivery time in remote regions standardized services with a smart remote monitoring platform to achieve delivery within
various types of diabetes such as Type 1 advocating for increased awareness of the 140 million diabetes patients in China. of Xizang: within 1 day one hour in urban areas of Xizang and within one day in remote regions of Xizang. Our staff
diabetes (T1D) Type 2 diabetes (T2D) and The initiative garnered widespread societal attention reaching more than 8.919 has ventured into high-altitude outposts over 5000 meters above sea level multiple times
gestational diabetes. million views. to deliver high-quality and reliable highland oxygen concentrators to residents aid workers
and stationed troops in Xizang. Additionally the Company has partnered with Alibaba to
launch the "Angel Journey - Highland Health Action" donating oxygen concentrators worth
The cumulative views of RMB 5 million to less developed areas of the Qinghai-Xizang Plateau to ensure a stable
the Diabetic Community oxygen supply in highland regions.
1.03 million
Total registered users
5900
Total posts
13000
77 78Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Special Focus Pneumoconiosis stands as the leading occupational disease in China accounting for over 80% of all occupational diseases. Individuals who are exposed to high levels
Infusing Life with of dust in their workplace for extended periods are at risk of lung damage. Frontline workers in industries such as coal mining textiles welding tunnel construction
Oxygen drilling and carving are susceptible to the disease. Since 2017 Yuwell Medical
has been collaborating with the Love Save Pneumoconiosis charity organization
adhering to the principle of alleviating patient suffering and enhancing doctors'
medical skills. Together we have been conducting a series of philanthropic initiatives
aimed at supporting farmers afflicted with pneumoconiosis offering constant aid to
affected families.In 2017 In 2019 In 2023
The Company partnered with Love Save Pneumoconiosis Yuwell Medical and Love Save Pneumoconiosis co- Yuwell Medical partnered with Love Save Pneumoconiosis
to launch the "Walk for Two Kilometers" charity event hosted the "Lung Capacity Challenge" event both Establishing a Total of to organize the "Solar Terms in Children's Paintings" drawing
encouraging the public to convert their walking steps into online and offline to raise awareness about farmers collection activity encouraging children from families
donations for the organization. Over nearly a month the suffering from pneumoconiosis and to encourage affected by pneumoconiosis to depict the beauty of the
compassionate initiative has engaged 230000 individuals broader public participation in assisting them. The 14Rehabilitation Stations twenty-four solar terms through their artwork. This initiative
raising RMB 700000 in donations. These funds have event won support from 40 celebrity artists and aimed to raise awareness about the challenges faced by
been allocated towards the construction of Love Save students from 102 universities with the Weibo Since the establishment of the rehabilitation center in children from pneumoconiosis-affected families. Through
Pneumoconiosis Chaiping Rehabilitation Center hashtag #LungCapacityChallenge# accumulating over Sanchuan Town Luanchuan County Luoyang City Mr. this educational initiative the Company raised RMB 55000
rehabilitation training for over 300 pneumoconiosis- 60 million views. Chen a stage III pneumoconiosis patient has persisted in donations which were distributed to eight provinces and
afflicted farmers and the treatment of critically ill patients. in participating in rehabilitation training at the center. cities including Sichuan Chongqing and Hunan supporting
According to long-term health monitoring his six-minute more than 50 children from pneumoconiosis-affected
walking test results have increased from a minimum of families to pursue their education.
406 meters to a maximum of 547 meters indicating a
significant improvement in his endurance. Since joining
the rehabilitation center for training he has not been
hospitalized for pneumoconiosis again.Although rehabilitation centers can alleviate basic
physical ailments for pneumoconiosis farmers they
still face a series of life challenges such as reintegrating
Yuwell Medical and Love Save Pneumoconiosis have collaborated into society easing family pressures and finding new
on the "Walk for Two Kilometers" charity project. job opportunities. Yuwell Medical in partnership with
Love Save Pneumoconiosis proactively engaged with
In 2018 From 2019 to 2020 patients and their families providing ongoing medical
treatment psychological counseling and guidance on
Yuwell Medical partnered with Love Save Pneumoconiosis Adhering to the Action Plan on the Prevention and entrepreneurship and employment paving the way
to launch the "Love Save Pneumoconiosis - Aid for Treatment of Pneumoconiosis and the Notice on the for a long-term stable and dependable life for farmers
Farmers Afflicted with Pneumoconiosis" charity project Pilot Implementation of Pneumoconiosis Rehabilitation after rehabilitation. Working alongside Love Save
in eight specialized stores under the Yuwell flagship Stations (Rehabilitation Points) in Grassroots Medical Pneumoconiosis the Company has recognized that
store. This initiative sought to increase awareness among Institutions Yuwell Medical actively collaborated with Love aiding financially disadvantaged children in completing
consumers and encourage their support for farmers Save Pneumoconiosis to establish rehabilitation stations their education is the most effective means of breaking
affected by pneumoconiosis. creating a comprehensive network of rehabilitation the cycle of poverty. By the end of 2023 we have
services extending from urban to rural areas and from continued to extend support to pneumoconiosis-affected
communities to individuals. The services were designed to families by providing educational assistance funds to
include "rehabilitation guidance health education health their children in primary middle and high schools across
monitoring and assessment psychological intervention more than ten provinces and cities nationwide including
entrepreneurship support and advocacy for occupational Shaanxi Henan Chongqing and Qinghai.disease prevention and control".
79 80Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Key Performance Table
Corporate Governance
Business Ethics and Anti-corruption Water Utilization
Indicator Unit 2023 Indicator Unit 2023
Anti-corruption training coverage for key
% 100% Water intake Tons 561377.9
positions:
Tons / RMB 10000 of
Average anti-corruption training time per Water consumption intensity 0.70
hours 2 revenue
employee:
Recycled water consumption Tons 35
Environmental Performance
Emissions and Waste
Environmental Management
Indicator Unit 2023
Indicator Unit 2023
Waste emission compliance rate % 100%
Total investment in environmental protection Million RMB 7.0168
Wastewater discharge Tons 3566
Environmental protection training coverage % 100%
Total volume of hazardous waste discharged Tons 48.38
Environmental incidents throughout the year cases 0 Total volume of non-hazardous waste discharged Tons 245.58
Alkali mist Tons/year 0.38
Energy Use and Greenhouse Gas Emissions Sulfur dioxide Tons/year 0.17
Organized waste gas
Indicator Unit 2023 emissions1 Nitrogen oxides Tons/year 1.077
Gasoline Tons 76.40 Smoke and dust Tons/year 0.9518
Diesel Tons 33.27 Volatile organic compounds Tons/year 0.0558
Cubic meters Alkali mist Tons/year 0.15
Natural gas 86.23
(×10000) Sulfur dioxide Tons/year 0.062
Unorganized waste
Kilowatt-hours gas emissions2 Nitrogen oxides Tons/year 0.007
Purchased electricity 3492.32 Smoke and dust Tons/year 0.042
(×10000)
Volatile organic compounds Tons/year 0.798
Total energy consumption Tons of standard coal 5600.27
Note 1 2: The statistical scope for organized and unorganized waste gas emissions pertains to the parent company of Yuwell Medical.Tons of standard coal/
Energy consumption intensity 0.0070
RMB 10000 of revenue
Social Performance
Direct greenhouse gas emissions (Scope 1) Tons of CO2 equivalent 2201.36
R&D Innovation
Indirect greenhouse gas emissions (Scope 2) Tons of CO2 equivalent 19916.69
Total greenhouse gas emissions (Scope 1 and 2) Tons of CO equivalent 22118.05 Indicator Unit 20232
Total R&D investment Million RMB 504.3712
Tons of CO equivalent/
Greenhouse gas emission intensity 2 0.0277
RMB 10000 of revenue R&D investment as a percentage of revenue % 6.33%
81 82Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
Customer Rights
Indicator Unit 2023 Indicator Unit 2023
Customer complaint handling rate % 100% Employees with college degree Persons 1559
B2B customer satisfaction rate % 96.2% Employees with less than a college degree Persons 2474
B2C customer satisfaction rate % 97.25% Number of employees by region
Chinese employees (including employees from Hong
Persons 6020
Kong Macao and Taiwan)
Social Performance Overseas employees Persons 94
Supply Chain Management Employee satisfaction % 83.6%
Employee turnover rate % 19.92%
Indicator Unit 2023
Number of suppliers certified to quality management
Companies 481
systems Equality and Diversity
Number of suppliers certified to occupational health
Companies 72 Indicator Unit 2023
and safety management systems
Incidents of employee discrimination/harassment Cases 0
Number of suppliers certified to environmental
Companies 166
management systems The proportion of female employees in middle and % 29%
senior management
Employment Supply Chain Management
Indicator Unit 2023 Indicator Unit 2023
Total number of employees Persons 6114 Total investment in employee training Million RMB 10.0767
Number of employees recruited during the reporting
Persons 1247 Total attendance of training throughout the year Attendances 34356
period
Total employee training hours Hours 171780
Number of newly recruited graduates Persons 68
Number of employees by gender Annual training hours per employee Hours 24.7
Male employees Persons 3482
Female employees Persons 2632 Occupational Health and Safety
Number of employees by age
Indicator Unit 2023
Employees aged 30 and under Persons 1586
Investment in health and safety Million RMB 4.46
Employees aged 30-50 Persons 3902
Health and safety training coverage % 100%
Employees aged 51 and above Persons 626
Number of employees by hierarchical level Number of employee fatalities due to work-related Persons 0
incidents
Senior management Persons 135
Middle management Persons 306
Entry-level employees Persons 5673 Public Welfare
Number of employees by educational level Indicator Unit 2023
Employees with bachelor's degree or above Persons 2081 Total investment in charitable donations Million RMB 42.874
83 84Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. 2023 Sustainability Report
About This Report Index Table
This report is the inaugural sustainability report of Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. (referred to as "Yuwell Reporting Framework GRI Standards
Medical"). It follows principles of objectivity standardization transparency and comprehensiveness to disclose the Company's
sustainability philosophy management practices and performance thoroughly responding to major concerns of stakeholders. Message from the Chairwoman 2-22/2-23
About Yuwell Medical 2-1/2-2/2-4/2-6/2-16/201-1
Reporting Scope Reporting Principles Sustainable Development 2-12/2-13/2-14/2-16/2-19/2-22/2-29/3-1/3-2/3-3
Management
The report highlights the information and key performance This report adheres to the principles of materiality quantification
of Yuwell Medical and its subsidiaries in fulfilling governance balance and consistency. Efficient Governance: Marching Towards a New Era of High-Quality Development
social and environmental responsibilities in 2023.Strengthening Corporate
2-9/2-10/2-12/2-15/2-27/405-1
Governance
Source of Information Adherence to Business Ethics 2-27/3-2/205-1/205-2/205-3/206-1
Definition of Terms All the information and data used in the report are sourced Full Supply Chain Coordinated
For ease of expression and reading Jiangsu Yuyue Medical from the Company's official documents statistical reports and 2-6Management
Equipment & Supply Co. Ltd. is referred to as "Yuwell Medical" financial statements as well as information on sustainable
"the Company" or "we" in this report. development practices of each unit that have been gathered Sustainable Supply Chain 2-6/3-2/204/308-1/308-2/414-1/414-2
and reviewed by the responsibility management department
of the Company. Unless otherwise specified all monetary Information Security and Privacy 418-1
amounts mentioned in this report are measured in RMB. Protection
Timeframe Leading Through Innovation: Energizing Life via Technology
This report covers the period from January 1 2023 to December Driving the Future through 2-6/2-27/416-1
31 2023. Some content may be extended beyond this timeframe Assurance of Accuracy Innovation
as deemed appropriate. This report is an annual report. The Company assures that this report contains no false Advancing in Smart Healthcare 2-6
records misleading statements or significant omissions and
is accountable for the authenticity and accuracy of its content. Commitment to Uphold Quality 2-25/2-27/3-2/416-1/416-2/417-1/417-2/417-3/418-1/419-1
Environmentally Friendly: Accelerating Green and Low-Carbon Transition
Reporting Principles
Enhancing Environmental
This report has been compiled according to the GRI Standards 3-2/2-27/307-1Management
by the Global Sustainability Standards Board the Shenzhen Report Access
Stock Exchange's Guideline No.17 for Listed Companies on This report is available in both print and PDF formats. You are Green Product Design 302-5/
Sustainable Development Reporting (Trial) the Environmental welcome to visit the Yuwell Medical website (www.yuwell.com) or
Social and Governance (ESG) Reporting Guide by the Hong the CNINFO website (www.cninfo.com.cn) to access the electronic Addressing Climate Change 201-2/302-1/302-3/302-4/302-5/305-1/305-2/305-4/305-5
Kong Stock Exchange the national standard Guidance on version of the report. In our ongoing efforts to improve our Reducing Environmental Impact 2-27/303-1/303-3/303-5//304-3/305-7/306-1/306-2/306-3/306-4/306-5/307-1
Social Responsibility Reporting (GB/T36001-2015) and the reporting process we value your feedback and suggestions. Should
guide for business action on the United Nations Sustainable you have any questions or suggestions about the report please Talent-oriented: Achieving the Value of Life
Development Goals (SDGs). email yuwellzqb@yuyue.com.cn or contact us at 0511-86900876.
2-7/401-1/401-2/403-2/403-3/403-4/403-5/403-6/403-7/403-8/403-9/403-10/404-1/404-
Growing Together with Employees
2/404-3/405-1/406-1
Safeguarding Life and Health 3-2/203-1/203-2/413-1
Appendix
Key Performance Table 302-1/302-2/302-3/303-3/303-5/305-1/305-2/305-3/305-4/306-3/306-3/401-1/403-9
About This Report 2-3
Index Table —
85 86Jiangsu 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
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