Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.

CONTENTS

Message from the ChairmanAbout Yuwell MedicalSustainable DevelopmentManagement

Key Performance TableAbout This ReportIndex Table11Steady and Long-Term Progress:

Advancing Towards High-QualityDevelopmentEnhancing Corporate GovernanceAdherence to Business EthicsInformation Security and Privacy ProtectionSustainable Supply Chain

33Innovation-Driven

Development: EmpoweringLife Through Technology

Empowering Health Through InnovationCommitment to Uphold QualityAccess to Quality Healthcare

59People-Centered Approach:

Safeguarding Lives andEmpowering People

Human Capital DevelopmentProtection of Employee RightsSafeguarding Life and Health

81Environmental

Friendliness: Creating aShared Green Future

Strengthening Environmental ManagementAddressing Climate ChangeReducing Environmental Impact

2024 Sustainability Report

Message from the Chairman

Wu Qun,Chairman and General Manager of Jiangsu Yuyue

Medical Equipment & Supply Co., Ltd.

A strong sense of responsibility and commitment has been the driving forcebehind Yuwell Medical's journey. Guided by a deep passion for healthcare, wehave forged ahead with perseverance, leveraging technological innovation toinject fresh momentum, and improving quality and e?ciency to unlock newavenues for growth. We strive to be a pioneer in innovation-led transformationand a steadfast protector of public health. In 2024, the demand for healthmanagement continues to rise, and industry transformation is moving atan accelerated pace. Amid the ever-evolving global landscape, we remaincommitted to our vision of "leading industry development through innovationand enhancing the health of millions of families". Guided by a focus onhealth and powered by science and technology, we proactively alignedourselves with national strategies, embraced change and new opportunities,and explored new pathways to sustainable development with a long-termperspective. Step by step, we have continued to enhance our capabilitiesin governance, innovation, competitiveness, risk management, and globaldevelopment. In the dynamic ?ow of the new era, we are determined to forgeahead, making meaningful contributions to the global healthcare sector withthe power of Yuwell.We are strengthening corporate governance to ensure steady progress aswe embark on a new journey of high-quality development. In 2024, Yuwell

Medical remained committed to its roots in the real economy, focused on itscore business, and pursued professional excellence. We concentrated oure?orts on key areas such as respiratory therapy, blood glucose management,POCT, and home health monitoring solutions, while consolidating ourpresence in clinical and rehabilitation equipment and actively developinghigh-potential businesses including emergency care and ophthalmology. Ourdiversi?ed product portfolio was further optimized, and our dual advantagesin brand influence and market competitiveness continued to grow. Withoperations now spanning over 100 countries and regions, our global businesssystem has become increasingly mature. To ensure long-term stability infuture development, we continue to reinforce both internal and externalrisk management systems, strengthen the compliance and business ethicsframework, and implement rigorous standards for information and datasecurity. Through the development of a highly resilient supply chain and a?rm commitment to integrity and innovation, we are laying a solid foundationfor the Company's high-quality and long-term growth.Innovation drives progress, empowers health, and brings vitality to lifethrough technology. Guided by the strategy of "reshaping medical devices

through innovation", we have consistently increased R&D investment inour core businesses and strategic focus areas, and have actively exploreddiverse innovation pathways. We have steadily enhanced our innovationcapabilities through both independent and collaborative research, usinginnovation as a driving force to cultivate new growth drivers and competitiveadvantages, so as to deliver higher-quality healthcare solutions to society.In 2024, leveraging our global R&D network and multiple national andprovincial-level innovation platforms, Yuwell Medical achieved a numberof internationally advanced breakthroughs with independent intellectualproperty rights. Significant technological progress was made in products

such as the continuous glucose monitoring systems Anytime 4 andAnytime 5, the third-generation sleep apnea therapy device, high-flow oxygen generators, portable oxygen generators, and semi-automated external de?brillators. Our ability to compete with world-class products has continued to improve. We also made solid stridesin smart healthcare by integrating artificial intelligence and digitalinnovation into our operations. These technologies have enabledus to build an intelligent manufacturing and operations systemfeaturing deep multi-platform and multi-system interaction. At thesame time, we established an e?cient end-to-end lifecycle qualitymanagement system and a comprehensive omnichannel customerservice framework, supporting product innovation, the upgradingof health services, and the enhancement of global competitiveness.Our products and services are bene?ting users worldwide. In 2024,our ?rst-pass yield reached 99.72%, with customer satisfaction ratesof 97.2% for B2B clients and 97.7% for B2C users. The Companycontinues to lead the industry in both customer satisfaction andproduct experience.With a people-centered approach and a shared commitmentto health, we strive to safeguard lives and empower the valueof life. Guided by a consumer-oriented, digitalized, and youth-

focused talent development strategy, we have established theYuwell Learning and Development Center and developed a soundand adaptive talent management model aligned with our strategicgoals. We have developed a well-structured training system tailoredto di?erent levels and roles, re?ned a transparent and merit-basedpromotion pathway, and nurtured a workplace that is diverse,inclusive, equitable, and warm. These e?orts continue to enhanceour talent competitiveness and bring our people together in theshared mission of safeguarding health and life. In 2024, the Companywas honored with several accolades, including the OutstandingHuman Resource Management Award - Employer of Excellence, theEmployer of Choice of the Year Award, and the Excellence in TalentAcquisition and Development Award. While focusing on our corehealthcare business, Yuwell Medical continues to explore publicwelfare models that align with the needs of the times and society.In 2024, we contributed RMB 1.47 million in charitable donations tosupport emergency medical care, diabetes patient assistance, andrural healthcare development, making a tangible contribution to thehigh-quality development of global healthcare. Yuwell Primedic haslong been dedicated to the emergency care sector. In partnershipwith professional race support organizations, its Flying Fish RescueTeam has participated in medical support for over 1,000 internationalmarathon events. Yuwell Primedic's emergency rescue ecosystemnow spans more than 100 countries and has delivered over 860public training sessions on AED use and professional ?rst aid, savinghundreds of lives each year. The Company has been deeply engagedin chronic disease management by partnering with social mediaplatforms, hospitals, charitable groups, and other professional

institutions. Through initiatives such as free health screenings,diabetes-focused summer camps, and the creation of the YuwellDiabetes Community, it has extended meaningful support andcare to people living with diabetes. Our employees have also mademultiple trips to high-altitude outposts over 5,000 meters abovesea level to deliver high-quality and reliable high-altitude oxygenconcentrators to local residents, aid workers, and individuals fromvarious sectors, making every e?ort to safeguard life and health.Green operations and environmental responsibility are thefoundation of our commitment to sustainable development.

Yuwell Medical integrates green ecological values and sustainabilityprinciples across its production and operations. We have extendedour EHS (Environment, Health, and Safety) management systemto cover all business segments and closely monitor the risks andopportunities presented by climate change. While enhancingour core competitiveness, we are striving to build a clean, low-carbon, and climate-resilient manufacturing system. In 2024, theCompany advanced comprehensive energy management in linewith ISO 50001 standards by establishing an integrated energycontrol system encompassing data collection, process monitoring,and management functions. This enabled full-cycle, closed-loopmanagement from planning to statistics, analysis, and evaluation. Wecontinued to upgrade equipment and technology, steadily increasedthe proportion of green electricity, and improved efficiency inproduction and sales coordination. As a result, we achieved e?ectivecontrol over comprehensive energy consumption per unit of output,greenhouse gas emission intensity, water consumption intensity, andhazardous waste discharge intensity. All annual energy managementtargets were achieved with a 100% completion rate, marking theinitial results of our efforts to build a clean and low-carbon productionsystem. Meanwhile, we have incorporated green innovation intoproduct development, advancing modular, lightweight, low-carbon,and health-conscious designs, and delivering high-quality solutionswith a reduced environmental footprint.Though the journey may be long, determination leads to arrival;though the task may be tough, action leads to achievement. YuwellMedical presses ahead with efforts to advance high-quality andsustainable development through ESG management. We activelyembrace cutting-edge technological innovation and adapt toevolving industry dynamics. By combining long-term vision withagile execution, we are building sustainable momentum amidongoing market transformation, embarking on a new journey toreshape the medical device industry through innovation.

Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.

0403

2024 Sustainability ReportJiangsu Yuyue Medical Equipment & Supply Co., Ltd.

Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (hereinafterreferred to as "Yuwell Medical", stock code: 002223) is a leadingmedical device company in China, specializing in the researchand development, production, sales, and service of medicalequipment. As a comprehensive provider of medical devicesand solutions, Yuwell Medical is committed to delivering high-quality, innovative medical products and services to patients andhealthcare institutions worldwide.Driven by its mission to "alleviate patients' su?ering and enhancedoctors' medical capabilities", Yuwell Medical remains focused onthe life and health sector with a consumer-centric approach. TheCompany concentrates on key product areas such as respiratorytherapy, blood glucose management and POCT, and homehealth monitoring solutions. It maintains a solid foundationin clinical medical devices and rehabilitation solutions, whileactively nurturing high-potential areas such as emergency careand ophthalmology. With a ?rm focus on the vast internationalmarket, the Company follows the strategic path of "reshapingmedical devices through innovation", powered by strong R&Dcapabilities and technological advancement. It continues to leadindustry transformation and contributes steadily to improving thequality of life for people around the world.

About Yuwell Medical

Operating in

countries and regions around the world100+

Over the years, Yuwell Medical has consistently maintained highlevels of investment in the R&D of new products and projects,sustaining its leading position in technological innovation. TheCompany has established multiple research and manufacturingcenters in Germany, Shanghai, Nanjing, Suzhou, Danyang, Xizang,Shenzhen, and other locations. It is also home to several national-level innovation platforms, including a National EnterpriseTechnology Center, a National Industrial Design Center, anda National Postdoctoral Research Workstation. These effortshave enabled the Company to build a comprehensive globalnetwork encompassing R&D, manufacturing, marketing, andservices, earning its products broad market recognition. In closecollaboration with medical institutions across China and aroundthe world, the Company is committed to driving progress in thehealthcare sector. Through a diversified business strategy andsteady global expansion, it continues to strengthen its capacityto serve the global healthcare sector. For detailed information onthe Company's operational and financial performance, pleaserefer to theJiangsu Yuyue Medical Equipment & Supply Co., Ltd.2024 Annual Report.

Total Assets Operating Revenue

Net Pro?t Attributable toShareholders of Listed Companiesbillion RMBbillion RMBbillion RMB

202020202020

10.065

6.726

1.759

202120212021

11.998

6.894

1.482

202220222022

15.095

7.102

1.595

202320232023

15.967

7.972

2.396

202420242024

15.646

7.566

1.806

ESG BenchmarkEnterprise AwardAwarded by Securities Star

2024 ESG Annual CaseAwarded by the Economicand Social A?airs Departmentof People's Daily

2024 Outstanding Case ofSustainable Development Practicesamong Chinese Listed Companies

Awarded by the China Associationfor Public Companies

National Brand SocialResponsibility CaseAwarded at the 2024 BoaoEntrepreneurs Forum – NewConsumption Development

Conference

Pioneer in Corporate SocialResponsibility Award

Presented at the 2024 CailianPress Zhiyuan Award Ceremony

China's Top 100 Listed Companies in

ESG Best Practices

Awarded by Wind

0605

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

Compliance operationsProduct quality and safetyEnvironmental managementSupport for local development(including rural revitalization)

Specialized meetings or reportsFeedback on policy consultationO?cial visitsCompliance regulatory inspectionsInformation disclosureHigh-quality developmentConsistent and stable returnsInvestor relations

General meeting of shareholdersFinancial reports andannouncementsInvestor hotlineRoadshowPerformance brie?ngs and otherengagement activitiesProduct quality and safetyInnovative and low-carbon productsCustomer service managementBusiness continuityReliable privacy protection

Customer satisfaction surveyCustomer relationship managementCustomer communication activitiesSocial media platformAdherence to business ethicsResponsible supply chainIndustrial cooperation andexchange

Supply chain audits and trainingOpen cooperationCommunication and interactionIndustry conferencesEmployee rights and bene?tsOccupational health and safetyEmployee training anddevelopmentDiversity and equal opportunity

Employee activities andcommunicationEmployee trainingPerformance evaluation andfeedback mechanismInternal informationcommunication platformEmployee grievance channelsProduct quality and safetyEnvironmental managementPublic welfare and charityCommunity communication anddevelopment

Media interactionInformation disclosurePublic welfare programsVolunteer activities

Sustainable Development Management

At Yuwell Medical, high-quality and sustainable development has always been a top priority. The Company continues to strengthenits environmental, social, and corporate governance (ESG) systems and enhance the Board's oversight and involvement in ESG-related a?airs. ESG is positioned as a key driver for improving compliance management, promoting high-quality development, andreinforcing the Company's competitiveness. As the decision-making and oversight body for ESG matters, the Board of Directorsparticipates in evaluating the potential impacts, risks, and opportunities of sustainability issues on the Company's business model.It oversees the effective implementation of ESG vision, goals, strategies, and action plans, and ensures the integration of ESGprinciples and requirements into departments and key business processes. For details on the Board's expertise and capabilities inoverseeing the management of ESG-related impacts, risks, and opportunities, please refer to the section "Strengthening CorporateGovernance / Board Diversity and E?ectiveness" in this report. During the reporting period, the Board of Directors reviewed andapproved theJiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Reportand theJiangsu Yuyue MedicalEquipment Co., Ltd. ESG Management Policy.The Company actively adopts quantitative indicators to assess the effectiveness of its ESG management strategies and isprogressively incorporating relevant ESG metrics into its performance evaluation and compensation system. In 2024, the Companyorganized dedicated ESG training sessions covering topics such as ESG trends and requirements, key considerations for promotingESG initiatives, and ESG information disclosure. These e?orts aim to enhance employees' awareness and understanding of ESG,thereby ensuring more e?ective implementation of ESG practices across the organization.

Yuwell Medical attaches great importance to stakeholder expectations and concerns, maintaining e?ective communication througha proactive and open approach. The Company consistently improves its diverse and routine mechanisms for both internal andexternal dialogue to actively respond to stakeholder needs.Sustainable Development Governance Framework

Stakeholder Engagement

StakeholdersExpectations and DemandsCommunication Methods and Channels

Government & Regulatory Authorities

Shareholders & Investors

Partners

Customers

Employees

Public & Community

De?nes the Company's ESG direction andstrategic goals, makes decisions on materialESG matters, and fully oversees ESG issuesand ensures their e?ectiveness

The Supervisory Body

Identi?es, assesses, and managesESG-related risks and opportunitiesDetermines the materiality of ESG issues andintegrates them into business considerationsGuides day-to-day ESG activities

The Management Body

Board ofDirectors

ESG Working Group

ESG ManagementLeadership GroupLead: General ManagerDeputy Lead: Board SecretaryMembers include other seniorexecutives and heads ofrelevant departments

Relevant functional

and operationaldepartments

Subsidiaries

Formulates ESG-speci?c plansImplements ESG initiativesRegularly monitors and reports ESGperformance indicators

The Executing Body

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2024 Sustainability ReportJiangsu Yuyue Medical Equipment & Supply Co., Ltd.

Materiality analysis helps the Company identify and assess potential risks, providing support for decision-making andmanagement. In 2024, Yuwell Medical updated its materiality analysis methods in alignment with the latest disclosure standards,including theIFRS S1 General Requirements for Disclosure of Sustainability-related Financial Informationand theSelf-RegulatoryGuidelines No. 17 for Companies Listed on Shenzhen Stock Exchange— Sustainability Report (Trial).The Company conductedmateriality assessments from two dimensions: impact materiality—the degree to which an issue a?ects economic, environmental,and social sustainability; and financial materiality—the extent of its impact on the Company's financial performance. Bycomprehensively evaluating stakeholder concerns and their ?nancial implications, the Company identi?ed high-impact ESG issuesfor prioritized disclosure in this report. It also continues to enhance ESG management to better address stakeholder expectationsand drive ongoing improvement.

Material Issues

The Company developed a comprehensive list of ESG issues based on leading domesticand international sustainability reporting standards and frameworks, mainstream ESGrating systems, industry focus areas, and issues of shared concern among internal andexternal stakeholders. This process was informed by an analysis of internal and externaldevelopment trends and led to the identification of both general and sector-specificmaterial issues.

The Company conducted a materiality analysis based on the principle of doublemateriality, engaging key internal and external stakeholders to assess both impactmateriality and ?nancial materiality. The results formed the basis for the 2024 materialitymatrix, which identi?ed and prioritized material issues for the year.

The Board of Directors, incorporating input from internal management and externalexperts, reviewed the assessment results and validated the highly material ESG issues.For these issues, the report provides focused disclosures on governance, strategy, riskand opportunity management, and related metrics and targets.

Identi?cationof ESG Issues

Materiality

Analysis

IssueValidationandDisclosure

Environmental Category

No.No.TopicTopic

Social CategoryGovernance Category

1Corporate governance2Business ethics and anti-corruption3Risk management4Digital operations5Information security and privacy protection6Addressing climate change7Water resources management8Emissions and waste management9Resource utilization and circular economy10Biodiversity conservation

11Innovation-driven development and technology

ethics (including smart healthcare innovation)12Product quality and safety13Customer relationship management14Health accessibility15Protection of employee rights (including occupational

health and safety)16Human capital development17Sustainable supply chain18Industrial cooperation and development19Rural revitalization and social contributions

Impact Materiality

High

LowHighFinancial Materiality

Material in terms of both

?nancial and impactsigni?cance

Material in terms of?nancial signi?cance only

Material in terms ofimpact signi?cance only

Not material in termsof ?nancial or impactsigni?cance

Material

Issue

Scope of ImpactImpact Timeframe

Risk and Opportunity Analysis

ImpactLevelUpstreamOperationsDownstream

ShortTerm

MediumTerm

LongTerm

ProductQuality and

Safety

There are risks associated with productdesign and development, manufacturingand processes, as well as regulatorycompliance. Failure to e?ectively managethese risks may lead to regulatory penalties,market access restrictions, and a decline inmarket trust.By adhering to high standards of safetyand quality, the Company can strengthencustomer trust, expand market share, andgain a competitive advantage.

Negativeimpact:

Highlysigni?cant;Positiveimpact:

Highlysigni?cant

BusinessEthics

and Anti-corruption

Incidents of commercial bribery andcorruption may result in signi?canteconomic costs, legal consequences,operational risks, and reputationaldamage to the Company.E?orts in business ethics and anti-corruption help establish sound internalmanagement systems and processes,optimize internal controls, and enhancemanagement e?ciency and transparency.

Negativeimpact:

Highlysigni?cantPositiveimpact:

Moderatelysigni?cant

R&DInnovation

In the context of technological uncertainty,regulatory volatility, market competition,and global expansion, R&D investmentmay require signi?cant ?nancial inputwith no guaranteed commercial returns.Technological innovation and forward-looking planning help cultivatenew productive forces, supportingthe Company's long-term marketcompetitiveness.

Negativeimpact:

Moderatelysigni?cant;Positiveimpact:

Highlysigni?cant

InformationSecurityand PrivacyProtection

There are multidimensional risksincluding technical risks, human errors,and operational and management risks.Improper management of critical dataand customer privacy may lead to databreaches, resulting in compliance risksor reputational damage and a decline incustomer trust.Robust data protection builds con?denceamong global partners and facilitatesentry into more high-end markets.

Negativeimpact:

Highlysigni?cant;Positiveimpact:

Moderatelysigni?cant

Material

Issue

Scope of ImpactImpact Timeframe

Risk and Opportunity Analysis

ImpactLevelUpstreamOperationsDownstream

ShortTermMediumTerm

LongTerm

HumanResourceDevelopment

Insu?cient employee training anddevelopment, ine?ective performancemanagement, and organizationalculture risks may lead to strategic andorganizational transformation risks, aswell as increased talent attrition.A well-established system for employeelearning, development, and talentcultivation can strongly support theachievement of the Company's strategicobjectives, enhance brand value andmarket competitiveness, and contributeto long-term, steady growth.

Negativeimpact:

Moderatelysigni?cant;Positiveimpact:

Highlysigni?cant

Addressing

Climate

Change

Physical and transition risks associatedwith climate change may result inasset losses, supply chain disruptions,increased operational costs, and shifts inmarket preferences that impact productstrategies.The green transition and evolving marketdemand driven by climate change presentopportunities to explore new businessdirections and develop innovativeproduct solutions. Enhancing energymanagement can help secure long-term,stable power supply and generate energy-saving bene?ts.

Negativeimpact:

Signi?cant;Positiveimpact:

Signi?cant

Sustainablesupply chain

Quality, supply, compliance, and ESG-related risks within the supply chain maylead to raw material shortages, businessinterruptions, increased costs, and deliverydelays, impacting business continuity andmarket competitiveness.Strengthening sustainable supply chainmanagement can enhance resilience,ensure business continuity, reduceoperating costs, and improve marketcompetitiveness and long-term investorappeal. In addition, improving supply chaincollaboration supports the adoption ofnew technologies and drives corporatetransformation and upgrading.

Negativeimpact:

Highlysigni?cant;Positiveimpact:

Highlysigni?cant

Analysis of Impacts, Risks, and Opportunities Related to Material Issues

Note: Impact levels are classi?ed as negligible, moderately signi?cant, signi?cant, and highly signi?cant.

2024 Sustainability ReportJiangsu Yuyue Medical Equipment & Supply Co., Ltd.

1009

Advancing Towards High-Quality Development

Steady and Long-Term Progress

Proportion of female directors

44.4%

Coverage rate of anti-corruption training

100%

Information leakage incidents

1211

2024 Sustainability ReportJiangsu Yuyue Medical Equipment & Supply Co., Ltd.

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

Enhancing Corporate Governance

Yuwell Medical rigorously adheres to relevant laws and regulations, including theCompany Lawof the People's Republic of China,the Securities Law of the People's Republic of China, theCodeof Corporate Governance for Listed Companies,theRules Governing the Listing of Stocks on theShenzhen Stock Exchange,and theSelf-Regulatory Guidelines No. 1 for Companies Listed onShenzhen Stock Exchange—Standardized Operations of Companies Listed on the Main Board.The Company also complies with normative documents such as its Articles of Association.Ithas established a robust corporate governance structure comprising the General Meeting ofShareholders, the Board of Directors, the Supervisory Board, and the management team. Thisframework ensures clear delineation of rights and responsibilities, coordinated operations, ande?ective checks and balances among the power, decision-making, supervisory, and executiveorgans, constantly enhancing corporate governance e?ciency. In 2024, the Company updated?ve corporate governance systems, including theMarket Value Management System of JiangsuYuyue Medical Equipment & Supply Co., Ltd.It consistently upholds the principles of integrity,standardized operations, core business focus, and prudent management, driving continuousimprovement in operational standards and development quality. For comprehensiveinformation on corporate governance, please refer to theJiangsu Yuyue Medical Equipment &Supply Co., Ltd. 2024 Annual Report.Yuwell Medical strictly adheres to prescribed procedures for selecting and appointing directors,supervisors, and senior management, with no changes in membership occurring in 2024. Incompliance with regulations such as theRules for General Meetings of Shareholders of ListedCompanies,theMeasures for the Administration of Independent Directors of Listed Companies,and theRules Governing the Listing of Stocks on the Shenzhen Stock Exchange, the Companyhas formulated internal rules including theRules of Procedure for General Meetings ofShareholders, Specialized Meeting System for Independent Directors, Rules of Procedure for theBoard of Directors, and Rules of Procedure for the Supervisory Board. When convening generalmeetings of shareholders, Board of Directors meetings, and Supervisory Board meetings, theCompany strictly adheres to stipulated voting matters and procedures, e?ectively safeguardingthe legitimate rights and interests of both the Company and its shareholders.

StandardizedGovernancePractices

Board diversity plays a critical role in strengthening scienti?c decision-making and risk management capabilities, serving as a cornerstonefor Yuwell Medical's strategic implementation and long-term sustainability. The Company proactively fosters diversity within its Boardthrough multiple dimensions: gender, cultural and educational backgrounds, skill sets, professional expertise, and practical experience.This initiative ensures that Board decisions are both scienti?cally sound and e?ectively implemented. Currently composed of 9 members,the Board includes four female directors (44.4%), re?ecting a strong dedication to gender equality at the decision-making level. It consistsof 6 non-independent directors and 3 independent directors, whose combined backgrounds encompass interdisciplinary knowledge andextensive industry experience. Their expertise spans bioengineering, medical devices, risk management, ?nance & accounting, law, andcorporate ?nance, creating a well-balanced mix of experience and professional competencies. The Chair of the Audit Committee bringsa professional accounting background, while several directors contribute deep practical insights into risk management and mitigation,including expertise in establishing comprehensive risk management frameworks and addressing major risk incidents. This collectiveexpertise e?ectively supports the Company's processes for identifying, assessing, responding to, and mitigating risks.

Board Diversity and E?ectiveness

General meetings ofshareholders heldduring the year

Resolutionsreviewed andapproved

Supervisory Boardmeetings held duringthe year

Resolutionsreviewed andapproved

Board of Directorsmeetings held duringthe year

Audit Committeemeetings heldduring the year

Resolutionsreviewed andapproved

Strategy Committeemeetings heldduring the year

Remuneration and EvaluationCommittee meetings heldduring the year

NominationCommittee meetingsheld during the year

As the Company's highest authority, the General Meetingof Shareholders reviews and decides on major companymatters. It convenes and holds meetings in accordancewith relevant regulations, including theRules for GeneralMeetings of Shareholders of Listed Companiesand theRules of Procedure for General Meetings of Shareholdersof Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.

General Meeting of Shareholders

The Board of Directors, accountable to the General Meeting ofShareholders, is responsible for formulating the Company'sdevelopment strategy, business plans, and major investmentdecisions. It also oversees the Company's operationalmanagement and financial status. The Board has establishedfour specialized committees: the Strategy Committee, the AuditCommittee, the Nomination Committee, and the Remunerationand Evaluation Committee. These committees handle speci?cmatters within their authorized scope and provide professionalconsultation and advice for Board decisions.Independent director Ms. Yu Chun chairs the Audit Committee,independent director Ms. Zhong Mingxia leads the NominationCommittee, and independent director Mr. Wan Suiren headsthe Remuneration and Evaluation Committee. In all these threecommittees, independent directors constitute the majority andserve as chairs, ensuring professionalism and independence indecision-making.

Board of Directors

The Supervisory Board, accountable to the GeneralMeeting of Shareholders, oversees the Company's ?nancesand monitors the legal compliance of directors andsenior management in performing their duties, therebysafeguarding the legitimate rights and interests of both theCompany and its shareholders.

Supervisory Board

Audit CommitteeNomination Committee

Remuneration andEvaluation Committee

Strategy Committee

Specialized Meeting forIndependent Directors

Board of Directors

Supervisory Board

General Meeting ofShareholders

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

To advance Board diversity, Yuwell Medical has established theIndependent Director Systemand theWorking Rules of the Board'sNomination Committee,providing a robust institutional foundation for inclusive governance. The Board member nominationprocess follows a rigorous selection protocol: the Nomination Committee integrates diversity criteria into its evaluation, conductingcomprehensive assessments of candidates' educational backgrounds, industry experience, professional competencies, and careertrajectories. This ensures a balanced composition of the Board in terms of capabilities, skills, experience, gender, age, and culturalperspectives. The Company also attaches great importance to Board members' ethical integrity and leadership credibility. Independentdirector nominations, once shortlisted, must ?rst undergo quali?cation and independence reviews by the Shenzhen Stock Exchange.They are then subject to election via cumulative voting at the general meetings of shareholders, a mechanism that continually elevatescorporate governance standards and decision-making e?cacy. Additionally, Yuwell Medical actively promotes professional developmenttraining and compliance education for Board members, aiming to strengthen their professional acumen and performance capabilities.During the reporting period, multiple directors engaged in internal high-potential training programs, collectively enhancing corporategovernance and strategic development capabilities.During the reporting period, all directors remained fully compliant with laws, regulations, and the Company'sArticles of Association,discharging their duties with due diligence, prudence, and accountability. Meanwhile, independent directors actively engaged in Boardactivities through multiple channels, o?ering independent perspectives on key matters to safeguard the scienti?c validity of decision-making. They e?ectively exercised their supervisory functions, promoting the implementation of Board resolutions and ensuring theaccuracy of information disclosure, thereby safeguarding the legitimate rights and interests of both the Company and its shareholders.

Yuwell Medical rigorously complies with theSecurities Law of the People's Republic ofChina, the Measures for the Administration of Information Disclosure by Listed Companies,and theProvisions on the System for Registration and Management of Insiders Who HaveAccess to Insider Information of Listed Companies, among other relevant laws, regulations,and normative documents. The Company has established theInformation DisclosureAffairs Management Systemand theAccountability System for Major Errors in AnnualReport Information Disclosure. These measures ensure that information is disseminatedauthentically, accurately, and in a timely manner, thereby improving the quality andtransparency of its disclosures. During the reporting period, Yuwell Medical issued fourperiodic reports and 35 ad hoc announcements. The Company designatedSecuritiesTimes, Shanghai Securities News, and the CNINFO website as its official media outletsfor information disclosure, ensuring equitable access to information for all shareholders.Throughout the reporting period, the Company's information disclosure practices remainedfully compliant with regulatory requirements, and were free from any false records,misleading statements, material omissions, or other breaches of disclosure obligations.Yuwell Medical continues to re?ne its internal policies, including theInvestor RelationsManagement System, aiming to build a transparent and efficient communicationplatform for investors. The Company actively carries out investor relations initiatives tostrengthen investor con?dence and understanding. A dedicated investor relations sectionon the Company's official website is maintained by a professional team and regularlyupdated to provide timely access to the latest company developments. The Companyalso operates an investor hotline (+86 511-86900876), offering prompt and detailedresponses to inquiries while welcoming feedback from both shareholders and potentialinvestors. In 2024, the Company convened two general meetings of shareholders, heldtwo performance brie?ngs, and hosted three online investor exchange sessions. Theseevents allowed for in-depth communication on the Company's financial results andbusiness strategy. In addition, through the cninfo.com platform, the Company respondedto hundreds of questions from investors regarding its operations, strategic direction, andproduct o?erings—achieving a response rate of 98.40%.Yuwell Medical is dedicated to ensuring equal treatment for all shareholders and hastaken proactive measures to safeguard investor rights and interests, with a particularemphasis on minority shareholders. As part of these e?orts, shareholders, includingminority investors, can attend shareholder general meetings in person or cast theirvotes online. For significant matters potentially affecting the interests of minorityinvestors, the Company separately tallies and discloses their votes. General meetingsof shareholders are scheduled and located to maximize participation, and moderninformation technology is leveraged to increase shareholder engagement, ensuringall investors, especially minority shareholders, are informed and can participate inmajor company decisions to e?ectively safeguard their legal rights and interests.Yuwell Medical has established a strong shareholder return ethos, implementing aconsistent and stable cash dividend strategy to ensure investors share in its growth. TheBoard of Directors formulates pro?t distribution plans based on comprehensive annualperformance evaluations, which are then approved through general meetings ofshareholders to safeguard the legal rights and interests of all shareholders, particularlyminority investors. To further strengthen market value management, the Companyimplemented the Yuwell Medical Market Value Management Systemin 2024 andunveiled the Quality Improvement and Return Enhancement Program. This initiativeincludes the distribution of interim dividends to enhance shareholder returns andmarket con?dence, thereby fostering the Company's long-term, sustainable growth. Fordetailed dividend plans and shareholder equity protection measures, please consultthe Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Annual Report.

Protection of Investor Rights and Interests

TypeNameGender

Professional CapabilitiesIndustryExperience

RiskManagement

AccountingLaw

Chairman, GeneralManager

Wu QunMaleDirector, DeputyGeneral Manager

ZhaoShuai

MaleDirector

WangLihua

FemaleDirector, DeputyGeneral Manager

ZhengHongzhe

MaleDirector

ChenJianjun

MaleDirector, Board Secretary

WangRuijie

FemaleIndependent DirectorYu ChunFemaleIndependent Director

WanSuiren

MaleIndependent Director

ZhongMingxia

Female

Recognized by the China

Association for PublicCompanies for OutstandingBoard O?ce Practices in 2024Honored with the15th Pegasus Awardfor Investor RelationsManagement of ChineseListed CompaniesReceived the 14thOutstanding BoardSecretary Award forInvestor RelationsManagement of ChineseListed CompaniesAwarded the 18th ChinaListed Company ValueSelection - SunshineBoard Secretary Award

Gender Distribution of the Board of Directors

44.4%

55.6%

MaleFemale

Educational Background of the Board of Directors

45%

33%22%

Doctoral degreeMaster's degreeBachelor's degree

1817

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

Yuwell Medical rigorously adheres to theCompany Law of the People's Republic of China, theAudit Law of the People's Republic ofChina,the Basic Standards for Enterprise Internal Controland its supporting guidelines, as well as regulatory requirements on internalcontrol set forth by the China Securities Regulatory Commission and stock exchanges. Considering the unique characteristics of themedical device industry, the Company constantly enhances the construction, evaluation, and supervision of its internal control and riskmanagement systems to ensure their e?ective operation, thus supporting sustained and stable development.

Risk Management and Internal Control

The Board of Directors and its Audit Committee are responsible for comprehensive management and oversight of a wide range of risks. TheAudit Committee supervises the implementation of internal audit and control systems, assesses risk management e?ectiveness, and closelymonitors the progress of external audit institutions, including accounting ?rms and national audit agencies. The Board authorizes otherspecialized committees to conduct risk management within their respective domains. The Audit Department, operating independently fromother business segments, is responsible for daily supervision and ensures the e?ective execution of risk control measures through auditprocedures, engaging external institutions for independent audits when necessary.

Risk Management Structure

Yuwell Medical consistently strengthens its risk identi?cation and response capabilities, standardizes business management processes,and achieves risk assessment, control con?rmation, and de?ciency recti?cation across core business segments. The Company undertakesend-to-end process control, systematically identifying and evaluating operational risk sources while re?ning and monitoring risks relevantto its core operations. This includes addressing investment risks, business uncertainties, operational challenges, and sustainability risks,thereby strengthening its risk prevention and control capability through systematic management. Additionally, the Company incorporatessigni?cant ESG risks and opportunities into its risk review and business planning processes, fully integrating them into operational and?nancial planning to better manage or mitigate risks and seek growth and transformation opportunities.In 2024, Yuwell Medical actively promoted the application of digital system platforms in risk identi?cation and supervision, achieving timelyidenti?cation and e?ective monitoring of potential risk sources. The Company constantly optimized and improved internal systems suchas theInformation Asset Systemand Market Activity Expense Regulations, comprehensively raising employees' awareness of complianceand risk control. Moreover, the Company strengthened risk management and control of business segments in branches and subsidiaries,issuing documents such as theGeneral Principles for Key Issues Approval of Branches and Subsidiaries, and establishing robust internalcontrol systems for overseas operations to safeguard the Company's global strategy.

Risk Identi?cation and Response

Yuwell Medical actively nurtures a risk management culture, enhancing employees' awareness of internal control risks andgovernance capabilities through comprehensive training programs and advocacy initiatives. By integrating these efforts withcompany-wide participation, the Company fosters a proactive risk prevention mindset, constantly refining its standardizedoperational practices. It closely monitors emerging regulatory changes and policy trends, undertaking timely analysis, andengaging external experts to provide in-depth interpretations and training when necessary, ensuring potential risks are managedwithin acceptable thresholds.

Risk Training

Yuwell Medical consistently adheres to the principle of tax compliance in its businessoperations, strictly following domestic laws and regulations such as theEnterprise IncomeTax Law of the People's Republic of Chinaand international tax regulations. The Companyis progressively building a comprehensive tax management system, actively promoting theimplementation of a robust tax management framework, and has established a dedicatedtax team to ensure accuracy and compliance in tax management.In 2024, Yuwell Medical further forti?ed its tax compliance management by progressivelyimplementing a closed-loop system for tax risk identi?cation, assessment, and response,thereby enhancing its tax risk management capability. In the realm of internationaloperations, the Company optimized its tax management strategies—including themanagement of transfer pricing policies and the utilization of tax treaties—to mitigatecross-border tax exposures. By conducting internal self-audits and engaging externalreviews, the Company ensured that its tax management practices were aligned withrelevant governance and control frameworks. In response to the OECD's "Two-Pillar"global minimum tax reform, the Company assessed its potential impact and established acompliance reporting mechanism to ensure tax fairness and sustainability.

Tax Management

incurring no major tax violations.

During the reporting period, theCompany maintained an

-grade tax credit rating,A

Risk Assessment

Risk Control

Risk Identi?cation

2019

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

Adherence to Business Ethics

Yuwell Medical is ?rmly committed to the core corporate value of "integrity as the foundation". It strictly adheres to theCompanyLaw of the People's Republic of China, theAnti-unfair Competition Law of the People's Republic of China, theAnti-Monopoly Lawof the People's Republic of China, theAnti-Money Laundering Law of the People's Republic of China, as well as other relevant laws,regulations, and industry standards. The Company has established and constantly re?ned its business ethics and anti-corruptionmanagement system, building a comprehensive defense line for ethical business practices.Across its global operations, Yuwell Medical has established a comprehensive business ethics and compliance managementframework that covers both the Company and its supply chain. The Board's Audit Committee acts as the supervisory authority,overseeing the implementation of ethical management systems and requirements to drive the Company's stable, high-qualitygrowth. Meanwhile, the Supervisory Committee—an independent internal oversight unit—assumes the role of monitoring evolvingnational and industry policies on compliance and business ethics. It evaluates ethical and anti-corruption risks, formulatespolicies, and closely collaborates with the Audit Department to conduct daily audit supervision, ensuring strict adherence to thehighest compliance and ethical standards. All functional departments are required to rigorously enforce and implement businessethics regulations. Additionally, the Company maintains employee integrity records, which serve as crucial references for employeepromotion, recognition, and performance evaluations.Yuwell Medical has developed and constantly re?ned its business ethics management system, which covers 100% of its businessareas and functional departments. This comprehensive system includes theCode of Conduct for Integrity in Business Practices,Statement on Anti-Commercial Bribery, Declaration Management System for Employee Conflicts of Interests, SurrenderManagement System for Gifts and Cash as Giving, Management Measures for Supervision, andEmployee Professional Ethicsand Code of Conduct.These policies ensure that all directors, employees (including part-time sta?), headquarters supply chainpartners, and distributors adhere to core principles such as anti-fraud, anti-money laundering, anti-corruption, anti-bribery, faircompetition, anti-monopoly, and con?ict of interest prevention. The Company is progressively expanding the application of theseprinciples to cover suppliers, distributors, and other customer groups of all branches and subsidiaries, thereby reinforcing a robustbusiness ethics defense line across the entire enterprise.

Governance

Yuwell Medical considers business ethics as the cornerstone of its corporate culture, integrating it into the Company's long-termdevelopment strategy and extending this requirement throughout its supply chain to safeguard high-quality development. Duringthe reporting period, the Company did not face any major litigation cases involving corruption or unfair competition.

Strategy and Management Mechanisms

To cultivate a culture of integrity, Yuwell Medical has developed a comprehensive compliance and business ethics trainingprogram for all employees. This program covers, but is not limited to, onboarding compliance training for new hires, integrity andcompliance workshops for functional sta?, anti-corruption seminars for directors, and the promotion of supplier codes of conduct.The Company integrates employee integrity and compliance performance into promotion, recognition, and performance appraisalcriteria, thereby strengthening employees' awareness of compliance and anti-corruption measures to deter unethical practices andfraudulent conduct. In 2024, the Company conducted online compliance and business ethics training and examinations, achieving100% coverage of Board members, as well as Group, branch, and subsidiary employees (including part-time sta?). Online trainingand learning sessions exceeded 1 hour in duration. O?ine specialized training primarily targeted departments such as ?nance,procurement, storage and transportation, and human resources. Five sessions of compliance and business ethics training for newemployees were conducted, recording 489 attendances.

To establish an honest and transparent supply chain and maintain a fair market environment, Yuwell Medical consistently promotescompliance and business ethics management among its partners. The Company mandates that all suppliers sign anAnti-commercialBribery Statementand relevant con?dentiality agreements before entering into cooperation. This requirement extends to suppliers,regular distributors, logistics partners, and others. External reporting channels have been established to speci?cally identify and preventbusiness ethics risks in commercial processes. In 2024, the Company incorporated business ethics and anti-corruption content intosupplier conferences, conducting integrity promotion throughout the supply chain to ensure e?ective implementation of business ethicspolicies. A total of ?ve o?ine training sessions were conducted throughout the year, reaching 522 suppliers.Yuwell Medical requires suppliers to comply with national and local laws, regulations, policies, and industry standards in their operatingjurisdictions. It maintains a zero-tolerance policy towards any form of corruption, fraud, extortion, or embezzlement. Employees foundviolating these regulations face immediate dismissal and permanent disqualification from re-employment. For partners violatingregulations, cooperation is terminated immediately upon verification, and supervision and control of relevant departments duringcollaboration are intensi?ed. The Company reserves the right to conduct on-site or surprise audits of suppliers with appropriate noticeto ensure continuous monitoring of supply chain compliance and business ethics risks. If improper or non-compliant behaviors arediscovered during audits, cooperation is immediately terminated, and responsible parties face serious consequences. In 2024, theCompany conducted factory audits of 30 suppliers, covering business ethics and anti-corruption related content.

Supply Chain Management

Business Ethics Training

Yuwell Medical steadfastly upholds theAnti-Unfair Competition Law of the People'sRepublic of Chinaand relevant anti-monopoly and fair competition regulationsin all its operational jurisdictions. By strictly prohibiting practices such as pricemanipulation, false advertising, and trade secret infringement, the Companyactively fosters a fairer and more transparent market ecosystem. Its comprehensivecompliance and ethics training program integrates dedicated modules on anti-unfaircompetition, with eight specialized sessions delivered annually for all sta?. Theseinitiatives ensure employees gain thorough understanding of, and strictly complywith, the Company's anti-unfair competition policies. The Compliance SupervisionDepartment regularly conducts anti-unfair competition reviews, addressing anyviolations with stringent measures.

During the reporting period, theCompany reported no violationsof anti-unfair competition lawsand regulations.

Anti-Unfair Competition

encompassing

suppliers

Throughout the year, a total ofoffline business ethics training sessions

were conducted for the supply chain

2221

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

Yuwell Medical upholds a zero-tolerance policy towards corruption and unethical business practices. The Company has implemented theYuwell Medical Management System for Whistleblowingand established diverse reporting channels. Employees, suppliers, distributors,and other stakeholders are encouraged to report concerns openly or anonymously through mail, telephone hotlines, and other means.This approach promotes active participation of all employees, suppliers, and partners in the integrity supervision system, ensuringprompt and e?ective addressing of potential or existing violations of the Company's ethical standards, policies, and applicable laws.The Company has established a core Supervisory Committee tasked with centrally managing whistleblowing complaints. Thiscommittee reports directly to the Chairman, thereby ensuring independence and impartiality in complaint resolution and supervisoryoperations. The whistleblowing process—from investigation to feedback—is typically concluded within 30 days of complaint receipt.Con?rmed cases of corruption are subject to strict measures based on the severity of the o?ense.Yuwell Medical is dedicated to strictly protecting the con?dentiality of whistleblowers' personal information and reported materials.A confidential whistleblowing receipt ledger is maintained with a unified numbering system for receipts. Designated personnelexclusively handle whistleblowing cases and materials, managing them in strict accordance with con?dentiality protocols. The Companyexplicitly prohibits disclosing whistleblowers' identities or case details to parties under investigation or unauthorized individuals. Whilesafeguarding whistleblowers' anonymity, the Company takes stringent measures against any form of retaliation. Verified retaliatoryactions are dealt with seriously, and behaviors that significantly endanger whistleblowers' rights are promptly reported to judicialauthorities for potential criminal prosecution.

Yuwell Medical integrates business ethics and anti-corruption risks into its overall risk management framework. To proactively mitigateethics-related risks, the Company undertakes regular risk identification and assessment, conducting thorough analyses of potentialethical risk factors. This includes evaluating various con?icts of interest, improper bene?t transfers, and unfair competition risks in areassuch as academic exchanges, clinical research, and retail terminal sales. The Company develops compliance policies and proceduresto ensure that all business conduct across operations adheres to ethical standards and legal requirements. Through continuousenhancements to its monitoring system—including internal audits, compliance reviews, and con?dential whistleblowing mechanisms—the Company enables timely detection and disclosure of potential risks.Within the business ethics management framework, the Supervisory Committee and Audit Department conduct ad hoc auditsand oversee the implementation of policies and the management of business ethics risks across various business scenarios. Theyregularly report audit results, significant findings, and matters requiring attention directly to the Board's Audit Committee and theChairman, maintaining independence at organizational, business, and individual levels. Additionally, the Company annually reviewsthe effectiveness and compliance of its internal control system, proactively managing potential business ethics risks in operations.The Supervisory Committee and Audit Department, considering situational factors and based on corporate control requirements anddepartmental audit plans, constantly conduct targeted audits to enhance risk control in core business areas. The Company developscontinuous improvement plans based on audit outcomes to ensure the e?ective operation of its business ethics, anti-corruption policies,and compliance systems. Furthermore, it establishes anti-corruption agreements with business partners and implements externalreporting channels to speci?cally identify and mitigate business ethics risks in commercial processes.

Impact, Risk, and Opportunity Management

Indicators and Targets

Zero major litigation casesinvolving corruption or unfaircompetition

Target achieved

100% coverage rate of anti-corruption training

Target achievedAverage anti-corruption trainingduration per director: 5.7 hours, with100% coverage rate.Average anti-corruption trainingduration per employee: 6.7 hours, with100% coverage rate.100% signing rate ofAnti-commercial BriberyStatementandSupplier SocialResponsibility Commitment

by suppliers, distributors, andpartners of Yuwell Medical'sparent company

Target achieved

100% handling rate of validwhistleblowing reports

Target achieved

Whistleblowing

Channels

Indicator and Target2024 Achievement Status

Whistleblowing Management

jubao@yuyue.com.cn

Mailing AddressTelephoneEmail

Supervisory Committee, Yuwell Science and Technology Center, No. 1 East HuanyuanRoad, Xuzhuang Software Park, Xuanwu District, Nanjing City, Jiangsu Province025-85582701

Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.2024 Sustainability ReportInformation Security and Privacy Protection

Yuwell Medical's information security and privacy protection governance structure is deeply integrated into its overall governance framework.The IT Leadership Group is responsible for formulating macro strategies and key decisions regarding information security, as well as overseeingthe implementation of information security measures. The Information Management Department executes specific information securitymeasures, ensuring the continuous and e?ective running of the information security operation and maintenance system, and reports directlyto the IT Leadership Group. Additionally, the Company has established quantitative information security indicators and a reward/punishmentmechanism, incorporating information security performance into the employee evaluation system to reinforce information securitymanagement practices.Yuwell Medical adheres to theCybersecurity Law of the People's Republic of China, theData Security Law of the People's Republic of China,

thePersonal Information Protection Law of the People's Republic of China, as well as other applicable laws and regulations in its operationalregions. Benchmarking against standards such as ISO 27001 Information Security Management System and ISO 27701 Privacy InformationManagement System, the Company has developed a comprehensiveInformation Security, Privacy, and Personal Identifiable InformationManagement Manual. This is complemented by a series of management procedures, regulatory systems, and related forms including theInformation Security Management System, Data Security Management System, Information Security Risk Assessment Management Measures,Information Security Outsourcing O&M Management Regulation, andOverseas Data Security System.Taken together, these measuresconstitute a robust information security protection system that spans all business areas. The system ensures the security of the Company'sinformation infrastructure, application systems, products, and customer information, thereby safeguarding operational continuity.

Yuwell Medical adheres to the management principle that "Information assets are the foundation of survival; privacy security iseveryone's responsibility". The Company has established clear procedural standards across various aspects, including informationsecurity and privacy protection policy regulations, risk and impact assessments, lifecycle management, network and information securityemergency management, monitoring, and auditing. These standards strictly govern employee behavior in areas such as networksecurity, operation and maintenance management, data center management, system changes, personal information and privacyprotection, and overseas data security. The Company emphasizes information security and privacy protection training and conductsregular audits to constantly enhance its capabilities in these critical areas and personal identi?able information management.

Governance

Strategy and Management Mechanisms

The Company regularly improves itsCybersecurity Emergency ResponsePlan. An early warning and emergencyresponse technology platformhas been established to enhancecapabilities for swift detection andanalysis of security incidents. Protocolsfor managing and handling emergencyevents have been strengthenedto ensure prompt and effectiveinformation security responses. Thirty-five information security emergencydrills were successfully conductedthroughout the year.

Information SecurityEmergency Management

The Company has implementedcomprehensive data recovery plans,which specify the requirementsand protocols for data backup,extraction, and usage to ensurerapid recovery in case of loss ordamage. Cloud services and NAS(Network Attached Storage) havebeen utilized for scheduled full/incremental backups to mitigatedata loss risks. Quarterly recoverydrills of backup data in simulatedenvironments are conducted toverify recoverability.

The Company has classified andgraded its data assets, includingmarketing, production, financial,and R&D data, according to a three-tier system (i.e., core, important, andgeneral data). Targeted protectionmeasures have been applied basedon this classification, with enhancedtiered control and permissionmanagement to ensure optimalprotection for the most sensitiveand critical data. These actions helpreduce the risks of data breaches, loss,and misuse while improving datamanagement e?ciency and security.

The Company constantly upgradesits information security protectioncapabilities, implementingencryption/decryption managementfor servers and terminal data.Internal and external firewalls,situation awareness systems, andother intrusion detection andprevention mechanisms havebeen deployed. Network isolationprotocols have been strengthened,complemented by regular securityassessments and vulnerability scansto maintain a robust data securityprotection framework.

Data Backupand Recovery

Tiered Control ofData Assets

Enhanced TechnicalProtection

Information SecurityCulture BuildingThe Company includes information security aspart of its onboarding programs to ensure newhires understand role-specific security risks andbaseline requirements. Regular company-widetraining sessions and awareness campaigns areheld to highlight the importance of informationsecurity in daily tasks, helping employees betteridentify and prevent potential data securityissues. During the reporting period, the Companydelivered 15 specialized information securitytraining sessions, covering topics such asoverseas data classi?cation, information securitymanagement, and endpoint protection security.

Yuwell Medical's Information

Security Promotion Poster

To strengthen data protection in its global operations and ensure the con?dentiality, integrity, and availability (CIA) of data, YuwellMedical strictly complies with relevant international laws and regulations—particularly local data protection requirements in thejurisdictions where it operates. The Company has established a comprehensiveOverseas Data Security Systemthat clearly de?nesrequirements across various dimensions, including overseas data collection and storage, transmission and utilization, sharing anddisclosure, emergency response protocols, and supervision and auditing procedures. This robust system rigorously safeguardsagainst security risks associated with overseas data management and cross-border data transfers.

Overseas Data Security Management

During supplier admission assessments, Yuwell Medical incorporates the protection of customer information security intoits evaluation criteria. Stringent confidentiality clauses are stipulated in theSourcing Framework Agreementto ensure thatcon?dential information and related data remain secure. The Company has implemented theInformation Security OutsourcingO&M Management Regulationto conduct thorough security reviews and ongoing monitoring of service providers. This proactiveapproach allows for the timely detection and correction of various anomalies in the service process, mitigating risks such asinformation leakage, tampering, unavailability, unauthorized access, and physical environment or facilities damage.

Supply Chain Information Security Management

Yuwell Medical adheres to the privacy protection principles of "legality, authorization, and con?dentiality", integrating data privacyprotection into its overall compliance management framework. The Company is working to improve its privacy data managementsystem, which covers various types of product data. This e?ort aims to ensure transparency in how data is collected and used.This system ensures compliance at every stage of the personal information lifecycle—from collection and usage to transmission,storage, and deletion. Furthermore, the Company actively engages in formulating industry standards for medical data security,thereby promoting the standardized, secure, and e?cient use of medical data.

Personal Information and Privacy Protection

Information System and Data Security

2423

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

Yuwell Medical has implemented theInformation Security Risk Assessment Management Measures, establishing a clear process forassessing information security risks. This thorough procedure encompasses risk assessment preparation, threat and vulnerabilityidenti?cation, risk evaluation and analysis, risk treatment, residual risk management, and risk control. By quantitatively assessingrisk levels, the Company enhances its capability to accurately identify and evaluate potential cybersecurity threats, facilitatingthe development of targeted mitigation strategies. The information security risk assessment team comprises cross-departmentalcybersecurity personnel and external experts, ensuring a comprehensive and professional evaluation through collaborativeexpertise. Assessment methodologies incorporate a mix of questionnaires, interviews, automated scans, manual inspections,document reviews, and ethical penetration testing. Risk levels are determined by integrating both the value of the assets involvedand the likelihood of potential threats occurring. The Company conducts risk assessments at least annually and updates them inresponse to changes in information systems, business operations, and information security incidents, thereby maintaining timelyand e?ective risk management.During the information security risk assessment process, Yuwell Medical systematically identifies a wide range of potentialrisks, including technical risks (e.g., hardware and software failures, physical environmental impacts, malicious code, andviruses), human risks (e.g., negligence, operational errors, mismanagement, unauthorized access or abuse, and hacker attacks),management risks (e.g., inadequate security policies, organizational security management deficiencies, and low personnelsecurity awareness), and legal and regulatory risks (e.g., potential legal liabilities or reputational damage resulting from non-compliance with relevant laws and regulations). These risks are incorporated into the enterprise-wide risk management frameworkto safeguard the Company's information assets, thus ensuring privacy protection. Yuwell Medical deploys multidimensional riskprevention and control measures to mitigate information security risks. At the technical level, the Company has established arobust protection system incorporating network isolation, data encryption, firewalls, vulnerability scanning, and early warning

Impact, Risk, and Opportunity Management

The Company conducts all operations involving personal data collection, storage, processing,transportation, and use in strict accordance with applicable laws, regulations, and codes ofconduct, conscientiously safeguarding the legitimate rights and interests of data subjects.The Company requires users to verify the legality and compliance of external data sources beforeintroducing them into Yuwell systems or storage infrastructure.Principleof Legality

Prior to obtaining personal information, the Company mandates the signing of aYuwell SoftwareService Agreementwith individual consent, fully respecting and upholding the rights of individualsto be informed, access, correct, and delete their information.The Company meticulously assesses the necessity of obtaining personal data, refraining fromaccepting or collecting data unrelated to its business functions.The Company guarantees relevant parties' rights to knowledge, choice, and control over theirpersonal information. Only authorized data is obtained and used, with a series of measures takento minimize the use of personal information.Principle ofAuthorization

The Company maintains strict con?dentiality of privacy data, refraining from sharing, transferring,or disclosing users' personal information to any third-party company, organization, or individualwithout explicit permission. It establishes robust data security capabilities, implements necessarymanagement and technical measures, and conducts regular inspections and evaluations of theeffectiveness of privacy data management and technical safeguards to prevent data breaches,damage, loss, or tampering.Principle ofCon?dentiality

Indicators and Targets

100% coverage rate of information security trainingTarget achieved100% completion rate of annual IT-specific review forcritical business system permissions

Target achievedZero major information security incidentsTarget achievedZero information leakage incidentsTarget achieved

Indicator and Target2024 Achievement Status

Yuwell Medical has successfullyobtained ISO 27001 and ISO

27701 certi?cations

The Yuwell Anytime system has

achieved Level 3 Information SystemSecurity Protection certi?cation

mechanisms. At the management level, the Company has implemented comprehensive information security and privacyprotection policies and procedures. Ongoing training and preventive management are also emphasized to avoid, transfer, andmitigate information security risks.Yuwell Medical regularly audits its information security management system in alignment with its business characteristics,constantly monitors information security technology trends, and evaluates and enhances risk control measures to maintainrobust information security protection capabilities, thereby ensuring business continuity and data asset security. The Companyconducts specialized audits across five key areas: user access management, system development, system changes, logicalaccess, and other general controls. Independent third-party organizations are also engaged to audit the Company's informationsecurity system and provideInformation System Audit Reports, validating the effectiveness and compliance of informationsecurity management practices. For managing data overseas, the Company has set up dedicated teams or roles focused on datasecurity supervision. These teams are responsible for the daily monitoring and inspection of data processing activities outside thecountry. They regularly review the implementation of data security protocols, data access logs, security incident reports, and otherrelevant information, aiming to swiftly identify and rectify any data security discrepancies or violations. The Company periodicallyengages internationally accredited third-party security audit ?rms to conduct comprehensive assessments of its overseas datasecurity management system. Any identi?ed issues are promptly addressed in accordance with audit recommendations, ensuringcontinuous improvement in data security management standards.

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

Sustainable Supply Chain

The quality, resilience, and sustainability of the supply chain are paramount to Yuwell Medical's stable development. The Company hasestablished an e?cient supply chain management system through a clear delineation of responsibilities and robust cross-departmentalcollaboration mechanisms. The Supply Chain Management Department comprises four specialized teams: the planning andprocurement team, the resource development team, the advance procurement team, and the indirect procurement team. These teamsare responsible for managing the entire lifecycle of suppliers. They lead and participate in supplier evaluations in line with the Company'sprocurement policies and requirements, and coordinate all activities related to suppliers. The Quality Department works closely with theSupply Chain Management Department to carry out thorough supplier audits, assessments, and controls. Together, they aim to build ahigh-quality and resilient supply chain.Yuwell Medical strictly adheres to theLaw of the People's Republic of China on Invitation and Submission of Bidsand its associatedimplementation regulations, alongside other pertinent laws and regulations. The Company has formulated internal managementstandards, including theSupplier Management Control Procedureand Procurement Control Procedure.These standards governthe entire supplier lifecycle—from screening and onboarding to collaboration, evaluation, and exit. By strictly enforcing supply chaincompliance requirements, the Company establishes a fair and equitable procurement environment while constantly optimizing supplierportfolios, thereby enhancing overall supply chain e?ciency and risk resilience.

Guided by its overarching business strategy, Yuwell Medical consistently re?nes its supplier lifecycle management, formulates andimplements sustainable procurement policies, reinforces data-driven decision-making processes, and enhances collaborativeefficiency. The Company is committed to building a competitive, resilient, and sustainable supply chain, providing a solidfoundation for achieving its strategic objectives.

Governance

Strategy and Management Mechanisms

Supplier Lifecycle ManagementYuwell Medical has deployed a robust mechanism for screening and admitting suppliers. By developing multi-dimensionalevaluation standards, the Company carries out thorough quali?cation reviews of potential suppliers. These assessments evaluatesupply and delivery capability, ?nancial risk capability, quality assurance capability, R&D and technical capability, and adherenceto sustainability requirements. Suppliers who meet these criteria are included in theQuali?ed Supplier Directoryand are subject toclassi?ed and tiered management, contributing to the development of a high-quality supply chain ecosystem.

Ensuring a high-quality and stable material supply is critical to guaranteeing product safety and reliability from the source. YuwellMedical prioritizes material supplier management by implementing a category-based and tiered approach. This system classi?essuppliers according to four key criteria: the criticality of the component's role in the ?nal product, the complexity of its productionprocess, its risk level to product quality and safety, and audit sample test results. The Company develops annual supplier auditplans to evaluate the systems of material suppliers listed in theQuali?ed Supplier Directory. Quarterly performance assessmentsare conducted to inspect the quality of supplied goods, with underperforming suppliers required to analyze root causes andimplement corrective and preventive actions (CAPA). The Company establishes strategic partnerships with reputable key materialsuppliers to achieve long-term supply chain stability.The Company has implemented robust exit mechanisms at various stages of supplier management to maintain stringentquality control. For material suppliers, after passing the initial screening and admission process, new suppliers' materialsundergo production trial evaluations. Suppliers failing three production trials are eliminated. During annual audits, suppliersreceiving a C-grade are required to improve within a specified timeframe and face elimination if they fail a re-evaluation.Suppliers receiving a D-grade are immediately disquali?ed. Those receiving three consecutive C-grades are downgraded to Dand have their supply quali?cations suspended.

Material Supplier Management

Assessment GradeAssessment ResultScoreTreatment Method

A Excellent supplier≥90Priority procurementBStandard supplier70-89Normal procurementC

Provisionally acceptable

supplier

60-69

Time-limitedimprovement, reducedprocurementDUnquali?ed supplier<60

Supply quali?cationcancelled

Yuwell Medical employs a classi?ed and tiered management approach for its suppliers. Based on the type of products and servicesprovided, suppliers are categorized into material suppliers, storage and transportation suppliers, and IT service suppliers, with tailoredmanagement requirements and standards established for each category. TheSupplier Management Control Procedureclearlydelineates protocols for supplier audits, performance evaluations, and potential restrictions or eliminations. Following classi?cationand tiering principles, the Company develops rigorous annual audit plans for all admitted suppliers. This process includes issuing anddistributingSupplier Evaluation Formsand conducting regular monitoring and thorough assessments of suppliers' quali?cations,contract performance, quality management practices, and social and environmental impacts through both remote and on-site audits.Based on the audit ?ndings, the Company issuesSupplier Corrective and Preventive Action Reports, providing prompt feedback tosuppliers and guiding them through targeted improvement e?orts in response to identi?ed issues. During the reporting period, YuwellMedical's parent company conducted 65 on-site audits, including evaluations of newly admitted suppliers.

Supplier Evaluation and Improvement

Supplier Screening and Admission

Occupational health and safety, information security protection, environmentalstewardship, procurement and supplier management, delivery efficiency, andwarehousing and transportation management.Asset quality indicators, pro?tability metrics, and internal control management systems.Quality management systems, personnel training programs, equipment managementprotocols, quality control practices, supplier management procedures, and warehousemanagement e?ciency.Technical reserves, R&D and design capabilities, new product introduction processes,and engineering management competencies.

Supply andDelivery Capability

R&D and Technical

Capability

Quality Assurance

Capability

Financial Risk

Capability

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

Yuwell Medical actively fosters cooperation and exchange with suppliers, delivering professional training and placing a strategicfocus on the development of small and medium-sized vendors. The Company provides tailored support to suppliers facingtemporary challenges, constantly optimizing the supplier ecosystem to enhance overall supply chain competitiveness. Throughmultilateral dialogue and communication, the Company proactively shares updates on production requirements, product qualitystandards, and company policy interpretations. With an open and cooperative approach, the Company grows alongside itssuppliers, achieving collaborative optimization and sustainable development of the supply chain.

Sustainable ProcurementYuwell Medical integrates sustainability requirements into itssupply chain management system, explicitly mandating theconsideration of environmental, social, and governance factors inthe procurement process. Suppliers are required to sign documentssuch as theSupplier Anti-Commercial Bribery Commitmentand

Supplier Social Responsibility Commitment, ensuring compliancewith BSCI (Business Social Compliance Initiative) regulations andlegal requirements. These commitments encompass principlesincluding anti-bribery, anti-corruption, anti-monopoly, anti-moneylaundering, and con?ict of interest avoidance in business conduct.They also prohibit the use of child labor and forced labor, mandatethe provision of safe and healthy work environments, respect foremployee rights, elimination of discrimination, and establishmentof social responsibility management systems. The Companyimplements and monitors supplier sustainable procurementrequirements through rigorous supplier assessments, contractualterms, training and education, and regular audits to ensure supplychain sustainability and stability. Additionally, the Company treatssuppliers with integrity, adhering strictly to legal requirementsfor timely payment to small and medium-sized enterprises, thusprotecting their legitimate rights and interests.In 2024, 231 suppliers of Yuwell Medical's parent company werecertified for quality management systems, 30 for environmentalmanagement systems, and 66 for occupational health and safetymanagement systems.

The Company clearly articulates its quality requirements intheQuality AgreementandFreight Transportation ServicesContract. A robust quality information sharing mechanismis established with suppliers, alongside regular audits andassessments. When necessary, quality training, technicalcooperation, and exchanges are provided to strictly controlquality risks at all stages. For detailed information, please referto the "Product Quality and Safety" section of this report.

The Company mandates all suppliers to sign theSupplierAnti-commercial Bribery Statement. It reinforces advocacyand training, and when necessary, conducts thoroughdue diligence investigations and audits of partners basedon cooperation projects. The aim is to foster long-termpartnerships with suppliers who adhere to high standards ofbusiness ethics. For detailed information, please refer to the"Adherence to Business Ethics" section of this report.

The Company conducts comprehensive social responsibilityaudits on suppliers in accordance with BSCI and local governmentrequirements, resulting in detailedSupplier Social ResponsibilityAudit Reports.These audits cover multiple critical areas includingchild labor, forced labor, occupational health and safety, freedomof association and collective bargaining, anti-discrimination, andenvironmental issues. Suppliers who have obtained relevantenvironmental management system and occupational healthand safety certi?cations are given favorable consideration duringadmission and audits, encouraging suppliers to strengthen theirsustainability management practices.

Product and Service QualityBusiness Ethics and Anti-CorruptionEnvironmental Protection and Labor Rights

In October 2024, Yuwell Medical hosted its 2024 Annual Supplier Conference themed "Quality, Wisdom, Supply, and Win". Theconference comprised four sessions, engaging 309 suppliers of the Company and 213 suppliers of its branches and subsidiaries.Supplier partners from around the globe actively attended the event, collectively exploring product innovation-driven industrialupgrading and the future development of globalized supply chains.

Annual Supplier ConferenceCase

Collaborative Win-Win with Suppliers

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

Total numberof suppliers

Proportion of suppliers subjectedto quality and safety assessments100%

Proportion of suppliers subjectedto environmental assessments

100%

On-time paymentrate to SMEs100%

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

Resilient Supply ChainEstablishing a resilient supply chain and ensuring business continuity are pivotal aspects of building a sustainable supply chain.Yuwell Medical proactively enhances its supply chain safeguarding measures to ensure stability and reliability. In 2024, theCompany maintained stable raw material supplies, with no production disruptions attributed to material shortages.

Yuwell Medical navigates a diverse landscape of supply chain risks, encompassing qualityrisks (e.g., raw materials, products, and services), supply risks (e.g., supplier disruptions,raw material shortages, transportation delays), financial risks (e.g., price fluctuations,market volatility), compliance risks (e.g., violations of laws, regulations, and companypolicies), and ESG risks (e.g., labor rights, occupational health and safety, businessethics, and anti-corruption). The Company's internal management standards, includingtheSupplier Management Control ProcedureandProcurement Control Procedure,comprehensively address supply chain risks and implement meticulous risk controlmeasures across all supply chain stages.The Company conducts annual, in-depth identification and assessment of potentialsupply chain risks, including ESG risks. It performs thorough analyses of speci?c mitigationmeasures for different supplier categories and develops comprehensive annual auditplans. Regular monitoring and holistic evaluations of suppliers are conducted to ensuree?ective control of supply chain risks. In cases where a supplier's assessment performanceis subpar, the Company generates aSupplier Corrective and Preventive Action Report,formulating and implementing targeted risk management measures to contain ormitigate the risk. For suppliers presenting extreme risks, it swiftly terminates cooperation.The Company constantly monitors and tracks the implementation of supplier riskmanagement measures, periodically evaluating their effectiveness. To address supplychain issues promptly, a robust emergency response mechanism has been established tomitigate the potential impact of supply chain risks on business operations.

Impact,Risk, andOpportunityManagement

Indicators andTargets

2024 Achievement Status

The Company expands its supplier network and builds secondary sourcing capabilities alongwith a supplier rotation mechanism. Through a diversi?ed supply network and primary/backupstrategies for critical materials, the continuity of key material deliveries is assured. The Companymaintains a robust supplier pool for priority categories and constantly optimizes suppliers tomitigate supply risks.DualSourcing

The Company bolsters its supply chain digital management through real-time tracking andmonitoring, with particular emphasis on high- and medium-risk materials. Advanced data analysisand forecasting techniques are employed to promptly identify and resolve potential issues,maintaining the stability of raw material supply.The Company has established an intelligent WMS (Warehouse Management System) to enhancereal-time inventory tracking and predictive analysis, optimizing inventory strategies and ensuringdynamic management to maintain optimal inventory levels and su?cient supply of critical materials.The Company has optimized its logistics network, including streamlining transportation routes,rationalizing transportation methods, and fostering robust partnerships with logistics providers toensure supply chain e?ciency.

DigitalManagement

The Company has developed di?erentiated emergency response and backup plans based on theseverity levels of production activities and the likelihood of supply delays, ensuring rapid responseand recovery in emergencies.The Company has established and constantly refined a multi-site layout to provide mutualbackup facilities, ensuring uninterrupted product supply in the event of natural disasters, unusualaccidents, or signi?cant changes in the external environment.Contingency

Planning

3231

Zero business interruptions

Target achievedNo instances of un?nishedmanufacturing tasks due to supplychain disruptions.Incoming materialacceptance rate ≥ 98.50%

Target achievedIncoming material acceptance rate:

99.03%

100% of suppliers underwentenvironmental, quality, andsafety assessments.

Target achieved

Indicator and Target

Yuwell health products covered by digital health services

units

500,000First-pass yield

99.72%

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Empowering Life ThroughTechnology

Innovation-DrivenDevelopment

2024 Sustainability ReportJiangsu Yuyue Medical Equipment & Supply Co., Ltd.

R&D investment throughout the year

million

546.68

RMB

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

Empowering Health Through Innovation

New quality productive forces, with innovation at their core, drive enterprises to explore noveldevelopment paths and create fresh competitive advantages. Yuwell Medical has establisheda scientific and efficient innovation and R&D project decision-making and managementsystem, focusing on cultivating and applying new quality productive forces. The Board ofDirectors oversees decisions related to innovation strategy, ensuring that innovation alignswith the Company's overall strategy. The management team delivers robust support for R&Dprojects through a review mechanism for innovation management, optimizing resourceallocation strategically. Meanwhile, the R&D Department, in collaboration with the IndustrialDesign Center, drives innovation implementation to ensure the Company's productdevelopment and technical research remain advanced and forward-looking. Additionally,the Company has broken down functional barriers by establishing mechanisms for cross-functional collaboration and resource sharing. This ensures close cooperation and e?cientsynergy among R&D, marketing, production, and quality departments throughout the entireprocess from R&D and production to market promotion, actively responding to the industrytrend towards more intelligent, precise, cutting-edge, and internationalized medical andhealth industry chains.To ensure high-quality and efficient advancement of R&D innovation, Yuwell Medical hasformulated comprehensive R&D innovation management systems. These include theYuwellMedical R&D

Management System, Yuwell Medical R&D Cost Collection and AccountingManagement Methods, Yuwell Medical Technology Achievements and Innovation Rewardsand Discipline Methods,andYuwell Medical Industry-Academia-Research CollaborationManagement Measures.These systems are developed in accordance with relevant domesticand international laws, regulations, technical guidelines, industry norms, and standards.They clearly define requirements and standards for R&D project initiation management,project management, production transfer management, takeover management,achievement management, and reward mechanisms. Leveraging cross-departmental IPD(Integrated Product Development) process and PLM (Product Lifecycle Management) tools,the Company accelerates the cultivation and development of new quality productive forces,enhancing its core industrial competitiveness.

Leveraging its profound R&D technological foundation, Yuwell Medical focuses on multiple key areas such as respiratory therapy andblood glucose management. The Company has achieved numerous important technological breakthroughs and obtained a series ofinternationally advanced, proprietary achievements and patents. It possesses multiple national, provincial, and ministerial-level scienti?cresearch innovation platforms, including the National Enterprise Technology Center, National Industrial Design Center, and NationalPostdoctoral Scienti?c Research Workstation. The Company has repeatedly undertaken national and provincial key projects such asNational Key R&D Programs, National Major Technical Equipment Research Projects, and Jiangsu Provincial Scienti?c and TechnologicalAchievement Transformation Projects, accelerating the transformation and industrialization of technological achievements.

Governance

Adhering to the vision of "leading industry development through innovation andenhancing the health of millions of families", Yuwell Medical follows the developmentstrategy of "reshaping medical devices through innovation". The Company consistentlyincreases R&D investment in line with national strategic needs and development trendsin the medical and health ?eld. It deepens global strategic layout and strengthens theintegration of industry, academia, and research. With R&D innovation as the core engineof enterprise development, the Company promotes product and service innovation tobring high-value medical solutions to society.

Strategy andManagementMechanisms

Yuwell Medical focuses on building a global R&D network, establishing multiple R&D centersand production bases in Germany, Italy, Shanghai, Shenzhen, Nanjing, Suzhou, Danyang,Xizang, and other locations. The Company actively integrates R&D innovation resourcesfrom domestic and international research institutions and universities, constructing high-level, open scienti?c and technological innovation platforms and comprehensive innovationsystems. It has established multiple internationally leading R&D technology platforms andconducts technological innovation research and key technology breakthroughs throughdiverse R&D strategies, such as independent research and cooperative development, toachieve rapid iteration and optimization of product lines.

R&D Innovation System

Micro-nano LaboratoryMEMS Process PlatformNew MaterialTechnology Platform

Advanced Anti-HCT Interference

Technology Platform

Fluid SimulationTechnology Platform

Compressor R&DApplication PlatformMotor DriveTechnology Platform

Shanghai Likang DisinfectantHi-Tech Co., Ltd. was recognized as

an SRDI SME

Receive

national scienti?c

and technological innovationawards cumulativelyNanjing Yuyue SoftwareTechnology Co., Ltd. was recognized as

a High-Tech Enterprise

Shanghai Medical Instruments(Group) Co., Ltd. was recognized as

a High-Tech Enterprise anda SRDI SME

Received

provincial scienti?c and

technological innovation awardsduring the reporting periodJiangsu Yuwell-POCT BiologicalTechnology Co., Ltd. was recognized as

a Specialized, Re?ned, Di?erentiatedand Innovative (SRDI) SME and aJiangsu Provincial Private Scienceand Technology Enterprise

Received

national scienti?c and

technological innovation awardsduring the reporting periodReceive

provincial

scienti?c and technologicalinnovation awards cumulatively

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

In September 2024, the National Key R&D Program titled "Development of a Wearable Continuous Glucose Monitoring System and ItsApplication in Personalized Diabetes Health Management" successfully passed ?nal acceptance. This project was led by Yuwell Medical andjointly undertaken by more than ten institutions, including the Institute of Microelectronics of the Chinese Academy of Sciences, the Instituteof Electronics of the Chinese Academy of Sciences, the Suzhou Institute of Biomedical Engineering and Technology of the Chinese Academy ofSciences, and Peking Union Medical College Hospital. This represents a signi?cant technological breakthrough for Yuwell Medical in diabetesmanagement, particularly in real-time CGM systems. Through a combination of sensor optimization and algorithm re?nement, the projectimproved data accuracy and stability while facilitating personalized health management via big data and AI integration.The project focused on the R&D of cutting-edge technologies for various forms of CGM, including minimally invasive and implantable systems, aswell as the establishment of personalized diabetes health management platforms. It o?ers diabetic patients a more convenient and accurate way tomonitor their blood glucose levels, allowing both doctors and patients to adjust management strategies in real time. By minimizing user discomfortand reducing infection rates, the project demonstrates notable advantages—particularly in clinical e?cacy, comfort, portability, and safety.

National Key R&D Program Successfully Completed, Marking a Major Breakthrough inContinuous Glucose MonitoringCase

Yuwell Medical firmly believes that talent is the driving force behind technological innovation. The Company has established acomprehensive talent lifecycle management system covering attraction, nurturing, retention, and utilization. By integrating full-timerecruitment with ?exible work arrangements, it has built an innovative professional team of over 2,200 members, including more than 100doctoral-level professionals and senior experts. Among the team members are over 30 high-level talents who have been recognized undermajor national talent programs, including recipients of the National Major Talent Project, members of the Chinese Academy of Sciences'Hundred Talents Program, talents selected for Jiangsu Province's Entrepreneurship and Innovation Program, and top-tier experts honoredunder Zhenjiang's Jinshan Talent Program and the Danfeng Chaoyang Initiative.To constantly enhance the team's technical proficiency and innovative capabilities, the Company prioritizes the cultivation of strategic R&Dmanagement talent. It regularly organizes cross-functional R&D training and exchange sessions for employees. Through a mix of internal/externaltraining programs, technical seminars, and workshops, the Company facilitates knowledge sharing and technical collaboration, helping sta? keeppace with cutting-edge technologies and industry trends. Additionally, the Company hires industry experts as R&D consultants to foster resourcesharing and complementary advantages, driving upgrades in corporate technology and self-reliant innovation in core R&D areas.Yuwell Medical has introduced innovative incentive mechanisms, such as the R&D Quarterly Star Selection, and implemented the

Performance Commitment Management MeasuresandTechnology Achievements and Innovation Rewards and Discipline Methods.Theseinitiatives are designed to stimulate employees' enthusiasm for innovation and provide preferential resources for outstanding innovativeprojects. In addition, the Company drives cross-disciplinary technological innovation initiatives to nurture an innovation culture thatsupports experimentation and embraces failure. This approach not only unlocks employees' innovative potential but also sustains adynamic environment of continuous innovation and exploration, providing long-term momentum for the Company's development.

Talent Development and Innovation Culture

Yuwell Medical embraces the concept of open collaboration and has formulated theIndustry-Academia-Research CollaborationManagement Measures. It partners with high-level third-party institutions to establish comprehensive innovation centers integratingR&D, talent cultivation, and business exploration, accelerating technological innovation processes and nurturing professional talent forthe industry. The Company has engaged in in-depth and e?ective industry-academia-research cooperation with numerous universities,research institutes, and clinical hospitals, including the Chinese Academy of Sciences, Beijing Institute of Technology, Nanjing University,Southeast University, Sichuan University, Peking Union Medical College Hospital, and Jiangsu Provincial Hospital. These collaborations aimto jointly address clinical challenges, improve medical device diagnostic and treatment technologies, and contribute to the high-qualitydevelopment of the healthcare industry.

Industry-Academia-Research Cooperation

In 2024, Yuwell Medical's Innovation Institute implemented the Consumer Health R&D System Qualification Assessment project,establishing professional talent qualification standards covering multiple technical domains including software, hardware, structure,and registration. Through a rigorous standard development and certification process, five core technical personnel were successfullyidenti?ed and certi?ed, bringing the total number of certi?ed individuals to 28. The quali?cation assessment scienti?cally promoted talentdevelopment and strengthened the R&D expert pipeline, providing solid talent support for product R&D and innovation, thus driving theCompany's continuous technological innovation.

Establishing a Quali?cation System to Accelerate R&D Talent Pipeline DevelopmentCase

Yuwell Medical has diversi?ed its portfolio from traditional ?ngertip blood glucose meters (BGM) to continuous glucose monitoring(CGM) systems. Traditional BGM products have undergone continuous optimization in test strip design, signi?cantly enhancingmeasurement accuracy and user experience, suitable for daily monitoring and rapid testing in emergency situations. CGMsystems provide accurate blood glucose monitoring data and more convenient, precise solutions for diabetic patients throughhigh-performance chips, micro-sensors, and advanced algorithms. The Company is accelerating its presence in the CGM ?eld. InJanuary 2025, the Anytime 4 series CGM product obtained the medical device registration certi?cate, featuring disposable sensorsthat can be used constantly for 15 days, signi?cantly improving accuracy and ease of use. In April 2025, the Anytime 5 series CGMproduct received the medical device registration certi?cate, adopting an integrated structural design paired with the Company'slatest sensor and algorithm development platform, further enhancing product accuracy and usability.Yuwell Medical's blood glucose management strategy focuses on seamless integration between in-hospital and out-of-hospitalcare, achieving a comprehensive solution. In-hospital management delivers real-time blood glucose data through the CGMsystem, enabling clinicians to develop personalized treatment plans and reduce the risk of abnormal blood glucose levels. Out-of-hospital management harnesses the integration of portable home monitoring devices and mobile applications, thereby enablingpatients to access real-time data, conduct trend analyses, and receive health recommendations. Collectively, these solutionsempower diabetic patients to adjust their lifestyles based on data-driven insights while o?ering data-sharing capabilities andreminder functions for family and friends, further enhancing patient engagement in their care.

Blood Glucose Monitoring

Yuwell Medical's oxygen concentrator technology has undergone three generations of technological upgrades, amassing nearly100 patents. Signi?cant breakthroughs have been achieved in low-noise technology, with pressure stability improved to world-class levels, enabling customized treatment solutions. In 2024, the Company advanced the innovative development of variablefrequency scroll oxygen concentrators, achieving noise control between 29-34dB(A) and increasing compressor lifespan by 30%-50%. It successfully achieved mass production of 5L/10L scroll compressors and completed the construction of the ?rst prototypeof an integrated respiratory oxygen machine, o?ering new solutions for mobile medical scenarios such as chronic obstructivepulmonary disease and sleep apnea.

Respiratory Therapy

In 2024, Yuwell Medical's oxygenconcentrator assembly workshopwas awarded the National Workers'Pioneer title. Yuwell's proprietaryadsorption technology, noisereduction technology, and intelligentoxygen control software are all at theforefront of international standards.

4039

Identifying and managing risks associated with innovation activities is crucial formaintaining a company's sustained competitiveness. To address various risks, includingrapid technological advancements, the impact of emerging technologies such as AIand big data, new product development challenges, potential loss of scienti?c talent,and policy and regulatory uncertainties, Yuwell Medical has implemented a cross-departmental IPD management process. This comprehensive approach ensures thatrisk management activities are seamlessly integrated throughout the entire productdevelopment cycle.The IPD process facilitates swift information exchange between departments andenables multi-perspective project reviews through collaboration among cross-functional teams in R&D, marketing, production, procurement, and after-sales service. Byintegrating market trend analysis, technology forecasting, and structured developmentwork?ows, the Company systematically identi?es risks across technical, market, supplychain, and ?nancial domains. This iterative process constantly enriches the Company'srisk database, enabling real-time monitoring and proactive mitigation of potential R&Dchallenges. To address the inherent uncertainties in technological development, theIPD process emphasizes a market-demand-driven approach, ensuring that productdevelopment closely aligns with customer needs. This strategy allows for continuousrefinement and optimization throughout the product development process, reducingthe risk of R&D innovation deviation through iterative improvements and rapid responsesto market changes. The IPD framework emphasizes continuous risk governance throughregular reviews of risk registers and evaluations of mitigation strategy effectiveness.Risk management plans are dynamically adjusted based on project milestones andexternal environmental shifts. To ensure real-time project visibility, the Company hasinstituted risk early warning mechanisms and escalation protocols. In collaborativeinitiatives, Yuwell Medical rigorously assesses partners' reputations and R&D capabilities,safeguarding corporate interests through robust confidentiality agreements and well-de?ned contractual clauses that minimize collaboration risks.

Impact, Risk,and OpportunityManagementYuwell Medical adheres to the principle of "doing the right thing in the right way", complying with scienti?c and technological ethical normsand advocating the cultivation of social responsibility values. Based on market and customer-oriented independent innovation, with coretechnologies as the focus and excellent quality as the guarantee, the Company commits to not developing or using scienti?c technologiesthat harm the natural environment, life and health, public safety, and ethical morals. Through the development of innovative and applicablenew products, technologies, and processes, the Company aims to bring positive impacts to social progress.Regarding data processing, the Company follows the principles of legality, con?dentiality, and authorization, ensuring that the collection,storage, and use of personal data are compliant while fully protecting the legitimate rights and interests of data subjects (for detailedinformation, please refer to the "Information Security and Privacy Protection" section of this report).In clinical research processes, Yuwell Medical strictly adheres to standards such as theDeclaration of Helsinki,theGood Clinical Practicefor Medical Devices, and the ISO 14155 management system. All clinical research projects must undergo review by independent ethicscommittees and are subject to regular supervision and evaluation. Research subjects receive detailed information about the purpose ofthe study, the procedures involved, and any potential risks. Their written consent is obtained to ensure informed consent and voluntaryparticipation. Data collection and utilization adhere strictly to legal requirements, ensuring the privacy and security of subjects' data.Throughout the research process, a specialized mechanism monitors subjects' health and safety, providing timely medical support tomaintain the study's scienti?c and ethical integrity while safeguarding subject rights.Yuwell Medical strictly complies with thePatent Law of the People's Republic of China, theTrademark Law of the People's Republic ofChina,the Copyright Law of the People's Republic of China, theAnti-Unfair Competition Law of the People's Republic of China,andregulatory requirements in the medical device industry. The Company has developed a series of management measures, including theIntellectual Property Management System of Jiangsu Yuyue Medical Equipment & Supply Co., Ltd,and set up a dedicated IntellectualProperty Management Department. By refining its IP management system, conducting regular internal audits and external reviews,and strengthening the management of R&D outputs, the Company effectively prevents the loss of intangible assets while fosteringemployees' enthusiasm for invention and creative innovation. In day-to-day operations, the Company prioritizes cultivating employees'IP awareness through regular training sessions, helping them understand the signi?cance of intellectual property and how to apply andprotect it e?ectively in their work. To safeguard R&D achievements, the Company has also developed anR&D Intellectual Property RiskAssessment Form and implements rigorous IP protection strategies to mitigate risks of technology leakage and infringement.While upholding its own intellectual property rights, the Company fully respects the IP rights of others. It is committed to avoiding infringement,strengthening comprehensive patent risk management, and strictly honoring con?dentiality obligations in technical collaborations. Throughsuch practices, the Company aims to maintain a fair competition environment and foster healthy market development.

Technology Ethics

Intellectual Property Protection

Indicators and Targets

Ensure R&D investmentto drive product upgradesand business developmentthrough technologicalinnovation.

Target achievedR&D investment throughout the year:

RMB 546.68 million, representing 7.23%of operating revenue.R&D personnel:1,219, constituting

19.21% of the total workforce.

Increase the number ofpatent applications andgrants.

Target achievedMaintain 1,195 valid granted patents,with 295 new patent applications ?ledduring the year and 200 new patentsgranted within the year.

Indicator and Target2024 Achievement Status

2024 Sustainability ReportJiangsu Yuyue Medical Equipment & Supply Co., Ltd.

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

Commitment to Uphold Quality

Product Quality and Safety

Yuwell Medical adheres rigorously to high-standard governance principles, ensuring thatevery facet of product design, manufacturing, and distribution meets stringent safety andquality benchmarks. The Company instills and deepens a culture of quality excellence across allemployees. Through a comprehensive framework of policies, objectives, systems, concepts, andstandards, it guides quality-driven behaviors and elevates organizational quality competence.Top management meticulously formulates and regularly updates the Company's qualitypolicy and objectives. The Quality Department, staffed with dedicated professionals includingquality officers, engineers, and system specialists, serves as the central hub for implementing,monitoring, and constantly improving the quality management system. This departmentensures compliance with quality standards at every production stage. Complementing this, theCompany has established an integrated cross-departmental collaboration mechanism thatunites R&D, procurement, production, sales, and after-sales services. This creates a closed-loopquality management system spanning the entire product lifecycle.Yuwell Medical remains unwavering in its commitment to producing high-quality, highlyreliable products. It complies with key regulations, including theProduct Quality Law ofthe People's Republic of China, theRegulations for the Supervision and Administration ofMedical Devices, and theGood Manufacturing Practice for Medical Devices. Drawing frominternationally recognized quality management standards?, the Company has developedtheYuwell Medical Quality Manual, which establishes critical control elements for the qualitymanagement system, aimed at constantly enhancing product quality and safety. TheCompany has implemented a series of quality management procedures, including theDesignand Development Control Procedure, Risk Management Control Procedure, Medical DeviceUDI Control Procedure, Non-conforming Product Control Procedure, andProduction andService Provision Control Procedure.These procedures form the foundation of high-standardquality management and risk management systems that encompass the entire productlifecycle. In 2024, Yuwell Medical revised six key procedural documents, including theDesignand Development Control Procedure, and updated 375 inspection protocols. This extensiveupdate ensures that all product manufacturing processes adhere to the latest operationalstandards, further elevating the overall quality of the Company's product offerings.Yuwell Medical's core operational strategy revolves around a user-centric, full-chaincollaborative management approach. This strategy takes customer needs as itsfoundation, integrating these requirements and high-quality standards throughout theentire business chain, from product design and R&D to procurement, production, sales,and after-sales service. The Company utilizes a comprehensive process mechanismsupported by management systems, key performance indicators (KPIs), incentivepolicies, and team structures. Through this integrated framework, it drives rigorousquality and risk management across the entire product lifecycle, ensuring superiorproduct quality while enabling prompt and flexible responses to customer needs.Customer feedback is effectively disseminated and actioned across all value chainlinks, thereby ensuring the delivery of high-quality products that meet customerexpectations. This strategy not only enhances market competitiveness but also lays asolid foundation for the Company's long-term sustainable growth. Furthermore, YuwellMedical has achieved e?cient and precise control of the production process throughintelligent manufacturing, whole-process data management, and automated testing,ensuring consistently high product quality standards.

Governance

Strategy and Management Mechanisms

EU Medical Device CE (Conformité Européene) Certi?cationYuwell Medical has obtained certifications for

quality management systems including ISO 9001Quality Management System, ISO 13485 MedicalDevices Quality Management System, and theMedical Device Single Audit Program (MDSAP).

Full Lifecycle Collaborative Management

Digital and Intelligent Production and Sales System

Customer Needs

Customer Satisfaction

IPD Development ProcessPLM R&D Management Platform

Design and R&DProcurementProductionSalesAfter-SalesProduct-Sales Synergy Platform, APS Planning and Execution Platform, Intelligent WMS,Cloud Platform & Distribution System, "One Item One Code" Platform, "O2P&SG" Platform,Big Data Platform, ERP Management System

Full Lifecycle Quality ManagementCustomer Complaints and Feedback

Major Product Certi?cations?

Chinese Class II and III Medical

Chinese Class I Medical Device

Notes: 1. The Company adheres to a comprehensive set of national and international standards and regulations, including the GB/T 42061-2022, whichis equivalent to ISO 13485:2016 Medical devices - Quality management systems - Requirements for regulatory purposes, the GB/T 19001-2016, which isequivalent to ISO 9001:2015 Quality management systems - Requirements,the GB/T 42062-2022, which is equivalent to ISO 14971:2019Medical devices -Application of risk management to medical devices,the Good Manufacturing Practice for Medical Devices,the EU Medical Devices Directive (MDD), the EUIn Vitro Diagnostic Medical Devices Directive (IVDD), the EU Medical Devices Regulation (MDR), the EU In Vitro Diagnostic Medical Devices Regulation (IVDR),the Brazilian Health Regulatory Agency Resolution No. 665 (RDC ANVISA 665/2022), the U.S. Code of Federal Regulations Title 21, Part 820 - Quality SystemRegulation, the Japanese Ministerial Ordinance No. 169Ordinance on Standards for Manufacturing Control and Quality Control of Medical Devices and InVitro Diagnostic Reagents(MHLW Ministerial Ordinance No. 169), the Australian Therapeutic Goods (Medical Devices) Regulations 2002, the Korea GoodManufacturing Practice (KGMP) Audit for Medical Devices, the Canadian Medical Devices Regulations (SOR/98-282), and the Medical Device Single AuditProgram (MDSAP) Audit Approach (MDSAP AU P0002.008).

2. The medical device product registration and ?ling certi?cate data encompass Yuwell Medical's parent company, Suzhou Medical Appliance Factory,

Suzhou Yuwell Medical Technology Co., Ltd., Primedic (Jiangsu) Medical Science and Technology Co., Ltd., Jiangsu Yuwell-POCT Biological Technology Co.,Ltd., 66 Vision Tech Co., Ltd., Xizang Yuwell Medical Investment Co., Ltd., Shanghai Medical Instruments Group, and Chalice Solution PTE Ltd.

valid

valid

Device Registration Certi?cates

Filing Certi?cates

Quality Management System Certi?cations

U.S. FDA (Food and Drug Administration) Certi?cationEU MDR (Medical Device Regulation) Certi?cationKGMP (Korea Good Manufacturing Practice) Certi?cation

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R&D and DesignProcurementEnd-to-End Lifecycle Quality Management

SalesThe Company has achieved dataintegration from production tousers, establishing a comprehensivecross-departmental collaborativemechanism for optimizing userexperience. This includes multi-departmental user experienceimprovement meetings and service-side collaborative external meetings.Feedback is extensively collected onvarious dimensions of user experience,comprehensively integrating anddeeply analyzing service-side productissue data. Detailed product feedbackanalysis reports are generatedmonthly and quarterly, with multipledepartments collaborativelydeveloping practical improvementmeasures to enhance product qualityand user experience from the source.Real-time monitoring of marketcustomer complaints and regulatorysampling information is conducted.A post-warehouse re-inspectionprocedure for medical devices isimplemented, involving samplinginspections and comprehensiveperformance tests on products todetect quality issues that may occurduring transportation or handling. Thiseffectively monitors product qualityconsistency and prevents substandardproducts from entering medical use,ensuring product safety.

The Company implements centralizedprocurement and supply chain managementbased on customer needs and actualproduction requirements. A rigorous supplierselection mechanism and comprehensivequality control system have beenestablished to ensure the quality andstability of raw material supply.Regular audits and quality reviews ofmaterial suppliers are conducted, andadvanced quality inspection equipmentand technologies are introduced to ensureraw materials meet international quality andsafety standards.A mid-warehouse inspection system hasbeen established and improved to proactivelymanage supplier quality, reducing reworkrisks caused by substandard processesand effectively improving supplier deliverytimeliness while ensuring quality.

The Company has implemented a comprehensive end-to-end design work?ow based on a cross-departmentalIPD management process. This approach maximizesalignment with user needs, creating a closed loop fromrequirements to design usability. A team of user expertshas been assembled to conduct in-depth researchon user needs and pain point analysis. A closed-loop experience research and usability verificationmechanism is employed to monitor design quality.In the later stages of product development, real usersare invited to conduct usability tests on functional andengineering prototypes in near-realistic scenarios. Thesetest results signi?cantly impact product certi?cation andmarket launch, even holding veto power. Improvementrequirements are proposed for identified issues,forming a closed loop for product design optimizationand ensuring high design standards.PLM tools have been introduced to enhance collaboratione?ciency between R&D and other functional departments,improving the reliability and predictability of R&Dprojects. Strict quality audits are executed at each keyR&D milestone to ensure research quality at all projectstages. The R&D Center regularly conducts internaltraining and exchanges covering medical device qualitysystem standards, regulations, and testing requirements,integrating quality management concepts into everyaspect of the R&D process.

2024 Sustainability ReportJiangsu Yuyue Medical Equipment & Supply Co., Ltd.

Post-Market Quality Management

The Company has established long-term monitoring plans to constantlytrack product performance andsafety after market launch. Adverseevents are proactively collectedand reported, e?ectively controllingpost-market risks of medical devices.The Quality Department evaluatescustomer feedback based on theprinciple of "report if suspicious",immediately reporting according tospeci?ed procedures once an eventis suspected to be a medical deviceadverse event.Regular, in-depth reviews of high-risk and frequently occurringadverse events are conducted withthe quality, R&D, production, andtechnical departments. Followingeffective analysis and evaluation,CAPAs are put in place to reduce theoccurrence of adverse events eachyear, ensuring continuous safetyand e?ectiveness of products.

In 2024, Yuwell Medicalcollaborated with the ZhenjiangAdverse Drug ReactionMonitoring Center in JiangsuProvince to conduct adverseevent monitoring for keymedical device products,specifically compressed airnebulizers. The Companywas successfully selected as amedical device vigilance pilotunit and was awarded the titleof Drug Regulatory TrainingBase by the Jiangsu MedicalProducts Administration.

ProductionThe Company implements strictquality control throughout theproduction process, with standardoperating procedures (SOPs)formulated and executed. Multiplecontrol points are established atdifferent production stages, andregular equipment maintenance andcalibration are performed to ensureall aspects of the production processmeet predetermined quality standards.A batch management system isadopted to ensure transparency andtraceability in the production process.The Company is advancing theconstruction of intelligent productionworkshops by continuously introducingadvanced technologies and smartequipment to enable fully automatedproduction of key products. Thisincludes intelligent inspectionequipment and real-time productiondata analysis, which constantlyimproves lean management levels,effectively reduces operationalerrors, and quickly identifies areas forimprovement and optimization ofquality control strategies, ensuringstability, efficiency, and high qualityin the production process.The Yuwell Wuliubao mobileapplication enables full-processvisualization and tracking oftransportation, precisely controllingdelivery quality and monitoringtransportation progress in real timeto ensure goods are delivered tocustomers in optimal condition andquantity.

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

Yuwell Medical has established a comprehensive and highly e?cient laboratory system. TheProduct Safety Laboratory has been accredited by the China National Accreditation Servicefor Conformity Assessment (CNAS) and has obtained several prestigious internationalcerti?cations, including ISO 17025 Laboratory Certi?cation, CTF Laboratory Certi?cation, andUL Witness Laboratory Certi?cation. To keep its testing capabilities at an industry-leadinglevel, the laboratory actively engages in training sessions, seminars, and interlaboratorycomparisons hosted by domestic and international third-party organizations. By investing inthese rigorous activities, the Company ensures strong assurance for the quality and safety ofits products. In addition to daily checks, the Company's measuring instruments are routinelysent to authorized metrology institutions for veri?cation and calibration.The Company has implemented standardized procedures for incoming material inspection,in-process inspection, and ?nished product inspection. Each batch of products undergoesthorough internal testing in strict compliance with medical device product quality standards.This ensures rigorous quality control at every stage, from raw material reception to productdispatch, e?ectively preventing potential product safety and quality issues. Complementinginternal testing, the Product Safety Laboratory conducts safety, electromagneticcompatibility, environmental, and noise tests as per standard requirements. For productswith standard changes or new models, samples are submitted to third-party testinginstitutions. Mass production only begins after product safety and reliability have beenthoroughly veri?ed. In 2024, the Company achieved a 100% product inspection pass rate.

Quality Inspection

Yuwell Medical strictly adheres to regulatory requirements, including theGood ManufacturingPractice for Medical Devicesand theRegulation of Medical Devices Recall Administration,and has established a comprehensive product recall system and mechanism. TheCompany has developed internal management procedures such as theDomestic RecallControl ProcedureandForeign Medical Device Adverse Event Reporting and Recall ControlProcedure.To ensure the efficiency and scientific nature of product recall management,regular mock recalls are conducted. During the reporting period, Yuwell Medical maintainedstringent control over product quality, resulting in a 0% product recall rate.The Company complies with relevant national and local regulations, including theMeasuresfor the Management of the Monitoring and Reevaluation of Medical Device Adverse Events.It has implemented theMedical Device Adverse Event Monitoring Management SystemandProtocol for Active Reporting of Adverse Eventto actively collect and report adverse events.Customer feedback is evaluated based on the principle of "report if suspicious", promptlyand e?ectively managing post-market risks of medical devices. Any event suspected to be amedical device adverse event is reported as such.

Product Safety Management

Yuwell Medical has established integrated management regulations, such as theSupplier Management Control Procedure,

to ensure product quality and safety through closed-loop oversight. This system covers supplier audits, incoming materialinspections, performance evaluations, and continuous improvement measures. The Company performs rigorous audits ofpotential suppliers' quality management systems prior to approval and obtains signedQuality Agreementsfrom all suppliers.During new material introduction, it closely supervises the trial production phase to ensure materials meet strict qualitybenchmarks. Additionally, the Company collects and analyzes monthly incoming material and inspection data from suppliers,enhancing traceability and driving ongoing supplier performance improvements.The Company has established a robust supplier audit procedure, developing and rigorously executing annual audit plans. Theseaudits cover multiple critical areas, including quality management systems, product design and development, material sourcing,manufacturing process control, design change management, non-conformance management, improvement processes, after-salesservice, and hazardous substance control. Led by the Quality Department, relevant teams conduct in-depth reviews and analyses ofaudit ?ndings to drive issue resolution and re-veri?cation. When signi?cant gaps are identi?ed, the Company provides targeted qualitytraining, professional guidance, and technical support to help suppliers gradually build up their quality management capabilities.In cases where quality issues are identi?ed in a supplier's products, the Company issues a formal CAPA report in accordance withtheCAPA Procedure Document. For suppliers demonstrating a willingness to improve, the Company conducts on-site visits anddevelops tailored improvement plans. These plans address speci?c needs, such as re?ning quality management systems, enhancingproduction process control, and optimizing documentation and procedures. For suppliers experiencing frequent or significantquality issues, dedicated supplier quality engineers are assigned to develop and closely monitor specialized quality improvementplans, ensuring effective resolution within specified timeframes. During the reporting period, the Company conducted on-sitequality audits of 65 suppliers, with no major quality issues identi?ed.

Supplier Quality Management

To implement its quality policy, Yuwell Medical promotes company-wide participationin quality management. Through the establishment of a diverse quality course trainingsystem, it comprehensively strengthens every employee's quality awareness andknowledge base. The Company develops and strictly implements annual quality trainingplans for all employees, covering various aspects including medical device quality systemstandards interpretation, regulations training, and specialized quality training. In 2024,key areas of the Company's quality training included medical device quality-relatedregulations and standards, inspection procedures, product knowledge and quality, UDI(Unique Device Identi?cation) knowledge, and product labeling. This ensures that everyemployee masters the latest quality management practices and product knowledge.

Company-wide Quality Culture Development

In 2024, Yuwell Medical conducted comprehensive FDA regulations training across the entire organization. The training, whichutilized various learning methods such as theoretical explanations and case analyses, focused on key topics including theQSR820Quality System Regulationand the21 CFR Part 11 Electronic Records.It involved key departments such as R&D, production, andwarehouse, as well as relevant personnel from branches and subsidiaries, with over 1,300 participants. This FDA regulationstraining is crucial for enhancing the Company's product quality and safety, fostering a compliance culture, and establishing a solidregulatory foundation for product exports to the U.S. market in 2025.

FDA Regulations TrainingCaseProduct inspection pass rate

100%

Product recall ratethroughout the year0%

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

Yuwell Medical fully recognizes the critical importance of implementing e?ective quality risk management to safeguard the safety and e?cacyof medical devices. The Company's comprehensive risk assessment process systematically identi?es a wide range of potential risks, includingdesign and R&D risks (e.g., design ?aws, technological obsolescence, and new technology application challenges), raw material and supplierrisks, production and process risks (e.g., unstable production processes and human errors), and regulatory compliance risks. These risks areintegrated into a holistic risk management framework. By adhering to quality management standards such as ISO 14971 and ISO 13485, theCompany keeps up with the latest regulatory requirements and technological developments. It has developed a comprehensive quality riskmanagement system that proactively detects and mitigates potential quality risks across the entire product lifecycle. Additionally, the Companyfosters a robust quality culture to ensure e?cient cross-departmental collaboration. To address varying levels of quality risks, a tiered system ofdocumentation has been established, ensuring that each risk category is appropriately managed within de?ned timelines.To guarantee the efficacy of its quality system, Yuwell Medical conducts regular internal and external audits across all business lines. TheCompany performs annual internal audits of its quality management system, conducting thorough reviews of all products to ensurecompliance with applicable laws, regulations, and accreditation standards. Each year, it actively engages third-party organizations and subjectsitself to audits by domestic and international regulatory bodies and partners. Through such initiatives, the Company constantly strengthens theintegrity and e?ectiveness of its quality management system. In 2024, Yuwell Medical's quality management system operated at exceptionallyhigh standards, undergoing a total of 48 quality management system audits from government regulatory agencies and external auditing bodies.These comprehensive audits included one unannounced inspection, one audit by the drug administration department, two supervisory auditsby the drug administration department, 13 customer audits, 20 on-site product registration assessments, and 11 registration system certi?cationaudits. Notably, all audit results showed no serious de?ciencies, achieving a 100% pass rate. Furthermore, the Company conducted 78 internalquality audits covering the entire product lifecycle, promptly implementing improvements to optimize production quality control processes.The Company regularly reviews and re?nes its quality management system. In the event of production non-conformities, it promptly initiatescorrective and preventive actions (CAPA) and undertakes in-depth root cause analysis (RCA) to identify and resolve underlying issues. By doingso, the Company sustains stable and reliable product manufacturing processes and procedures. Moreover, it has strengthened emergencyevent management protocols to e?ectively address potential production disruptions and ensure uninterrupted business operations.

Impact, Risk, and Opportunity Management

Indicators and Targets

Indicator and Target2024 Achievement StatusFirst-pass yield ≥ 99.00%

Target achievedFirst-pass yield: 99.72%100% pass rate for product sampling inspectionsTarget achieved100% coverage rate of quality-related personneltraining

Target achievedQuality training sessions conducted throughout the year: 89, recording4,013 attendances. Accumulated duration of quality training: 195hours, achieving 100% coverage of quality-related personnel.Zero major quality incidentsTarget achieved

Yuwell Medical is accelerating the implementation of a comprehensive, forward-looking digital strategy. With a focus on two keydimensions, Digital Yuwell and Digital Healthcare, the Company has e?ectively integrated the front and back ends of productionlines and established full-chain digital capabilities from product R&D and manufacturing to end-user services. By adopting a user-centric perspective, the Company identifies fundamental product requirements, designs for the entire product lifecycle, anddelivers more competitive products and services.

Yuwell Medical has established smart factories that integrate APS (Advanced Planning and Scheduling), ERP (Enterprise Resource Planning),PLM (Product Lifecycle Management), MES (Manufacturing Execution System), and WMS (Warehouse Management System). This createsan intelligent manufacturing ecosystem centered on data with deep interaction across multiple platforms and systems. The result is smart,?exible production lines capable of automated production, automatic data collection, and automated fault detection and intervention. TheCompany employs cutting-edge technologies, including machine vision for welding calibration, dynamic inspection, multi-sensor ?llinginspection, and intelligent logistics, to complete the hardware construction and digital upgrade of ?exible production lines and stereoscopicwarehouses. Leveraging sensors, PLCs (Programmable Logic Controllers), SCADA (Supervisory Control and Data Acquisition), and othertechnologies, the Company enables seamless data interaction between physical and virtual workshops. This has led to the construction ofsix types of ?exible production lines for products such as blood pressure monitors and oxygen concentrators, as well as AGV (AutomatedGuided Vehicle) logistics systems to support small-batch production of multiple product varieties. Through deep integration with MES,the Company achieves manufacturing digitalization and visualization, ensuring full-chain quality traceability. This data-driven approachconstantly enhances lean management practices, resulting in more competitive product delivery and superior product quality.

Digital and Intelligent Transformation

Jiangsu Likang Pharmaceutical Technology

Co., Ltd. was recognized as

a Smart ManufacturingDemonstration Workshop in

Jiangsu Province

Yuwell Medical's parentcompany was selected as

a case study for leaders indigital transformation in

China's light industry

Digital YuwellDigital Healthcare

Digital SupplyChain

DigitalProduction

DigitalOperations

DigitalMarketing

Digital

R&D

DigitalProducts

DigitalServices

IntelligentFunctionsIT (Business Digitalization)DT (Digital Empowerment)BT (Digital Innovation)

AI tools resolve 70% of user inquiriesIntelligent customer service improves user satisfaction by 20%Intelligent IoT devices cover over 80% of operationsIntelligent scheduling increases production e?ciency by 20%Intelligent sales forecasting reduces stockouts by 30%

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

Yuwell Medical upholds a customer-centric approach,prioritizing customer needs to establish a comprehensiveservice ecosystem encompassing pre-sale consultations, in-sale support, and after-sale guarantees. This system enablesrapid response and e?cient resolution of customer inquiries.By constantly refining service offerings and models, theCompany elevates the customer experience and satisfactionthroughout the entire product lifecycle.

Professional Services

The Company has established theYuwell Medical ServiceProcess and Standards, creating an omni-channel customerservice system with multi-channel front-end access, mid-end collaboration platform, and back-end support platform.A product insight and operational analysis platform has beendeveloped to achieve close connections between brands, users,and products. Through data analysis, the Company constructs360-degree product pro?les to provide intelligent, rapid, and high-quality proactive services. Additionally, it places great emphasison constantly optimizing service strategies and quality to deliveran exceptional service experience to customers.

A fully automated production line for blood glucosemeters has been developed through ?exible feedingand automatic assembly of irregular materials, CCD(Charge-Coupled Device) automatic detection, andextensive use of robotic operations.An automated production model has beenimplemented, led by the main assembly line withcentralized, efficient production on sub-assemblylines. Multiple technological innovations help achievea breakthrough from scratch in the automation ofelectronic blood pressure monitor production.

Automated Assembly Line forElectronic Blood Pressure Monitors

Automated Assembly Line forBlood Glucose Meters

Various robotic technologies have been utilized,supplemented by CCD vision-guided intelligentassembly, to create a ?exible, automated productionline with multiple workstations and human-machinecollaboration.

These warehouses employ a digital, smart storageand logistics system, achieving interconnectivityof data across human ?ow, material ?ow, vehicleflow, information flow, engineering flow, andproduct ?ow.

Automated AssemblyLine for Nebulizers

Intelligent StereoscopicWarehouses

To meet the increasingly personalized service needs of di?erent users and enhance brand satisfaction and loyalty, Yuwell Medicalprovides a range of caring services beyond standard product support.

User Care

We o?er online guidance and one-on-one video instructions for proper product use (applicable tocertain products) and advise users on correct product maintenance to extend the product lifespan.For special groups such as elderly individuals living alone, persons with disabilities, and economicallydisadvantaged users, we provide door-to-door services, waive shipping and repair fees, offercomplimentary accessories, and provide loaner devices to accommodate diverse user needs.We are integrating more advanced technologies (e.g., AI customer service and intelligentrecommendation systems), establishing a membership ecosystem, and upgrading our membershipapplet to provide more personalized and attentive services.PersonalizedServices

We conduct regular follow-ups to monitor users' health conditions.We offer online and offline user education and training, including recorded courses, visualinstruction tutorials, knowledge cards, and short videos to address the health needs of variousdemographic groups.Proactive Care

Proactive Service

Ranked among the

Top 100 ChineseService Brands in 2024Received the 2024Annual InnovativeService DriverAward

Achieved the 2024 AnnualChampion in ConsultationServices - Yuwell JD Self-operated Flagship Store

Won the 2024 Smart StarAward - Yuwell JD Self-operated Flagship Store

Passed the GB/T27922-2011 Five-StarAfter-sales ServiceCapability Certi?cation

The Company provides customers with diverse communication methods, includingtelephone, text, and video interactions, through various channels such as 400 hotline, WeChato?cial account, mobile application, enterprise WeChat, and e-commerce platform stores. Thisapproach enables real-time engagement with clients.Through the ongoing expansion of its after-sales service network, the Company hasestablished over 400 service terminals covering provincial capitals and key cities, ensuringlocalized support for customers.Multi-ChannelApproach

QualityManagement

By leveraging advanced data analysis platforms, the Company conducts real-time monitoring of allservice channels, including customer service hotlines and online chats. This allows us to instantlydetect and promptly address any anomalies in customer feedback.The Company meticulously monitors and evaluates the implementation and effectiveness ofimprovement measures, comparing key data indicators to verify their e?cacy and adjust existingservices accordingly.An automated quality scoring system has been implemented to assess each customer serviceinteraction, using data-driven insights to precisely identify areas for improvement and constantlyenhance service quality.

The Company has developed a comprehensive training system that accurately identi?es speci?ctraining needs through in-depth research. This system incorporates external professional medicalresources and covers various aspects, including technical skills, soft skills, and tool pro?ciency.Training e?ectiveness is evaluated through participant feedback, and course content and deliverymethods are constantly re?ned to ensure service professionalism.

The Company has implemented a standardized real-time risk reporting process for issuesaffecting service quality. These issues are immediately documented and addressed usingproject management tools to track resolution progress. Once thoroughly resolved, solutions areincorporated into the knowledge base.Through regular weekly meetings, monthly service quality reviews, and quarterly strategicplanning sessions, the Company promptly addresses issues and adjusts its service strategies basedon market dynamics to deliver an exceptional service experience to customers.Professional

Training

Closed-LoopManagement

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Yuwell Medical's Complaint Handling Process

B2B customer satisfaction rate

97.2%

B2C customer satisfaction rate

97.7%

Investigation results andresolution strategies arecommunicated back to users.

Deviation investigationsare initiated, and CAPAs areimplemented.

Relevant departments are mobilized toinvestigate and assess risks, identifyingroot causes and existing issues.

Complaints are received throughcustomer service platforms,marketing personnel at after-salesoutlets, government regulatorydepartments, and public channels.

Reception

Feedback

User feedback information ismeticulously collected anddocumented.

Recording

Correction of Deviations

Complaints undergo preliminaryassessment, and initial information isprovided to users.

Initial Assessment

Investigation and Evaluation

Yuwell Medical has developed theYuwell Medical Complaint Management Regulationand consistently refines its user service systemand multiple communication channels. The Company has improved its processes for responding to, handling, tracking, and supervisingcustomer feedback, ensuring that all issues are addressed in a timely and efficient manner. Based on feedback insights, CAPAs areformulated and implemented as necessary. In addition, the Company has integrated AI robots across all channels to provide real-time, high-quality responses, with human-machine collaboration swiftly addressing customer issues.Yuwell Medical has adopted granular management of its customer support ecosystem, clearly de?ning the roles of AI-powered assistantsand human agents. This strategic division of labor enables AI to e?ciently handle routine inquiries, while human experts focus on complexproblem-solving, personalized services, and emotional support. Consequently, the Company has achieved a higher ?rst-contact resolutionrate and elevated customer satisfaction. To streamline operations, the Company has deployed RPA-powered digital assistants and aniterative automated work order platform. These technologies reduce manual response times, optimize e-commerce workflows, andsigni?cantly enhance the shopping experience. By integrating online support with core business processes, the Company ensures rapidissue resolution and real-time updates on after-sales status. Collaborating closely with platform partners, we address customer pain pointsand propose tailored improvement solutions, aiming to elevate overall platform service quality. We have also simpli?ed after-sales scenariosand established dedicated processes, boosting the e?ciency and quality of post-purchase support. Additionally, we proactively interpretnew platform regulations, organize internal training, and strengthen frontline capabilities to sustain service excellence.

Yuwell Medical consistently prioritizes listening to customer feedback. Through ongoing customer satisfaction surveys, it gathersauthentic voices and evaluations from clients, comprehensively capturing their feedback and suggestions to constantly enhanceproduct and service quality. In 2024, the Company implemented multiple improvement measures in response to shortcomingsidentified in satisfaction surveys. These included revising five service quality control specification details and conducting sevenprofessional training sessions to strengthen customer service representatives' understanding of quality control requirements andservice boundaries.

Complaint ResponseCustomer Satisfaction Management

Yuwell Medical strictly adheres to theAdvertising Law of the People's Republic of Chinaand other relevant laws and regulations inits marketing and promotional activities. The Company has established responsible marketing-related systems, such as the Front-end Marketing Service Standards and Speci?cations. These systems translate responsibility requirements and business insights intodepartmental norms, operational standards, and management guidelines. The Company has clearly de?ned mechanisms for deliveringproduct information and promotional content, ensuring that marketing teams adhere to ethical principles and operational standards insales and promotions, and promote products in an ethical, evidence-based, and objective manner. Moreover, the Company employs AI-driven tools like knowledge bases and chatbot language databases to address all business scenarios, enhancing the comprehensiveness,e?ectiveness, and timeliness of information dissemination. This ensures e?cient and accurate communication across all marketingtouchpoints. The aforementioned tools are regularly updated and upgraded, alongside intensive training for marketing personnelto guarantee that consumers receive authentic and reliable information. Additionally, the Company has established internal auditprocesses and supervisory con?rmation mechanisms based on ?les such as theDocument Standardization Guidelinesto ensure that allexternally published marketing materials undergo rigorous review and comply with legal regulations and internal standards.

Responsible Marketing

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Access toQualityHealthcareProduct Accessibility

Yuwell Medical adheres to the principle of "leading industry development throughinnovation and enhancing the health of millions of families". Through a seriesof initiatives such as intensifying public health education and regional marketpromotion, accelerating the design of high-quality inclusive products and thedevelopment of intelligent and user-friendly products, and enhancing producta?ordability, the Company aims to make quality healthcare more accessible.

In December 2024, Yuwell Medical signed a strategic cooperation memorandumwith Vietnam's FPT Group in Ho Chi Minh City to jointly promote the development ofcontinuous glucose monitoring (CGM) technology in the ASEAN market. FPT Group isa leading technology enterprise in Vietnam. In the future, both parties will collaboratecomprehensively on CGM technology, including technological upgrades, brandpromotion, business model innovation, and international market expansion, to providequality medical services to the ASEAN market and bring more advanced medicaltechnology to patients in the ASEAN region.

Yuwell Medical Signs Strategic Cooperation Memorandumwith Vietnam's FPT GroupCase

Yuwell Medical emphasizes product usability and comfort, implementing human-centric and inclusive design with a focus on users,particularly addressing the needs of elderly users, special needs groups, and family health management convenience to ensure productsare simple to use and accessible. Moreover, the Company invests dedicated funds to strengthen core capabilities and accelerate the R&Dof digital and intelligent products, launching smart and user-friendly products that lower usage barriers. The aim is to realize its vision ofenhancing the health of millions of families with higher quality, more cost-e?ective, and sustainable products.In terms of global business layout, Yuwell Medical has established multiple R&Dcenters and production bases in Germany, Italy, Shanghai, Shenzhen, Nanjing, Suzhou,Danyang, Xizang, and other locations. It has also set up branches, subsidiaries, ando?ces in Thailand, Germany, the United States, and other countries. Through diversi?edbusiness deployment and continuous international expansion, the Company e?ectivelyserves global healthcare needs. As of the end of the reporting period, Yuwell productscover more than 100 countries and regions worldwide.

Human-Centric and Inclusive Design

Expanding Product Reach

The Home Multiple Vital Signs Monitor and405M Nebulizer have been awarded the IFDesign Award.

Several Yuwell products have received theRed Dot Design Award, including the HomeMultiple Vital Signs Monitor, YE990 Tunnel-Type Blood Pressure Monitor, Anytime CT3CGM System, Primedic M600 AED, 630CR Arm-Type Blood Pressure Monitor, and HospitalMultiple Vital Signs Monitor.

Large screen and voice assistance: The Yuwell Arm-type Blood Pressure Monitor YE630AR features abacklit large screen for clear display of blood pressureand pulse data under any lighting conditions, alongwith full voice broadcast functionality, allowingelderly users to easily complete measurements.Portable design: The Yuwell Oxygen Concentrator9F-5ZW adopts a suitcase-like design with wheelsat the bottom, making it easy for elderly users tomove around at home.Remote monitoring: The Yuwell Anytime CT3Blood Glucose Meter supports data sharing withfamily members, allowing relatives to monitor theelderly's blood glucose levels in real time througha mobile application, enhancing the convenienceof health management.

Supporting Older Adults

The Yuwell All-in-One Smart Fetal Monitor employsdigital ?ltering and noise reduction technology, withits ultrasound output power strictly controlled atextremely low levels according to industry standards,reducing potential impact on the fetus.Yuwell Medical incorporates voice broadcast andbacklight design in some products to meet theneeds of visually impaired users.The Yuwell Primedic AED (Automated ExternalDefibrillator) features voice and animation-guidedfirst aid functions, as well as an integrated CPR(Cardiopulmonary Resuscitation) and electrode paddesign, which signi?cantly improves the success rateof emergency response and enables quick actionwithin the "Golden 4 Minutes".

Serving Users with Special Needs

Multi-group usage: The Yuwell Nebulizer 405Msupports three-level flow adjustment, catering tousers of di?erent age groups.Lightweight design and comfort: The Yuwell Arm-type Blood Pressure Monitor YE630CR featuresa minimalist all-in-one design, supporting one-handed operation and mobile applicationrecording, making it suitable for family use.

Family-Oriented Design

international design awardsIn total,products have garnered

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

Yuwell Medical adheres to the World Health Organization's guidelines for fair pricing by implementing a value-based, transparentproduct pricing strategy. The Company is actively exploring more sustainable pricing models that maintain product quality whileprioritizing a?ordability, especially in underdeveloped regions. Through diverse market research, it aims to develop pricing modelsthat ensure proper policy implementation, price transparency, and product accessibility. The goal is to make innovative productsavailable to a broader population in less-developed areas.Yuwell Medical is dedicated to addressingthe treatment needs of both majordiseases and rare disorders. The Companyconstantly deepens its expertise in chronicconditions such as diabetes, respiratorycare, and emergency medicine. Itsongoing efforts result in the introductionof products and wearable devices thatoffer broader applicability, enhancedintelligence, and improved precision.These innovations provide comprehensivehealth management solutions forhealthcare professionals and patientsalike. Furthermore, the Company regularlyconducts professional training on medicalequipment usage and has establishedreward funds to support academicresearch by primary care physicians,thereby enhancing primary healthcareservice capabilities.

Enhancing Product A?ordability

Caring for Major and Rare Diseases

Smart HealthcareYuwell Medical consistently pushes the boundaries of smart healthcare, seamlessly integrating traditional medical productsand services with cutting-edge information technology. The Company is developing an open empowerment platform to createcomprehensive health data records for individuals and families. This platform enables partners to cultivate a digital medicalservice ecosystem, striving to provide innovative, high-quality, and accessible medical services to an ever-growing population.Digital HealthInnovationMedical ServiceInstitutionsPersonal (Family)Digital HealthRecordsData Collectionand Management

Home Testing andTreatment

Subscription to General Health Products and Services (Exercise, Diet, Mental Health, Content)Hospitals

Specialized

MedicalInstitutions

Health ServiceInstitutions

Rehabilitationand Elderly CareInstitutions

OTCPharmacies

Upward OpennessDownward Empowerment

Empowering Medical Care,

Auxiliary

Medical AI,Automation

Health Big Data,Service-orientedPersonal (Family) Health Records: Personal Physiological Indicators;

Personal (Non-medical) Health Indicators

Government Regulation and Data AuthorizationYuwell's groundbreaking atrialfibrillation blood pressure monitor,the S67XR, seamlessly integratesblood pressure measurementwith atrial fibrillation monitoring.Utilizing cutting-edge algorithmsand sensor technology, it accuratelydetects abnormal heartbeat signals,enabling users to promptly identifyand address the potential health riskof atrial ?brillation.

An 80-year-old retired nurse in Bulgariahas long operated a local newsstand,extending her passion for serving othersfrom her healthcare career to dailylife. As age-related health challengesmade it difficult for her to maintain herroutine work, she consulted her doctorand, following medical advice, choseYuwell Medical's Spirit-3 portable oxygenconcentrator. The product's lightweight,portable, and user-friendly featuresperfectly aligned with her needs. Withsix hours of continuous oxygen supplydaily, she has been able to return to herbeloved newsstand, once again greetingeach familiar customer with her warm,welcoming smile.

"Thanks to Yuwell Medical's Spirit-3, I'mthrilled to be back at my newsstand,chatting with people once again."

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Remote chronic disease management services represent a key strategic initiative for Yuwell Medical in the "Internet + healthcare" domain. Thisapproach aims to deliver comprehensive home health management solutions for patients with chronic conditions through digital technology,intelligent hardware, and big data analysis. The ultimate goal is to enhance users' ability to manage their own and their family members' healthstatus while improving the e?ciency of medical services.The Company has developed a remote chronic disease management platform centered on Smart Yuwell. This platform synchronizes chronicdisease data between devices and the cloud through multiple channels, including a family health cloud platform, mobile applications, and theWeChat o?cial account. Users can monitor and manage their health data in real-time via smartphones and interact remotely with physicians.The service also incorporates intelligent hardware devices such as smart glucose meters, electronic blood pressure monitors, and respirators,facilitating immediate access and analysis for both doctors and patients. This enables prompt identification of potential issues and theprovision of customized health management plans. Yuwell Medical's remote chronic disease management service not only enhances patientexperience but also improves the e?ciency and accuracy of medical services through intelligent and digital technologies, contributing to theimplementation of the Healthy China strategy. In 2024, the Yuwell Health Manager platform adopted advanced AI algorithms and big dataanalysis techniques to further enhance health data processing capabilities, construct precise personal health pro?les, and provide personalizedhealth management strategies for users. The platform also optimized service processes, o?ering remote medical follow-up functions to achieveearly intervention and continuous management of chronic diseases, e?ectively improving disease prevention and control outcomes.

Remote Chronic Disease ManagementCase

Yuwell Medical has established an IoMT (Internet of Medical Things)management platform for medical devices, constantly refining multi-productdigital solutions to provide comprehensive, convenient, and efficient healthmanagement solutions. The Company has created an innovative integratedhealth management platform for medical devices, advancing digital healthservices comprehensively in three stages: front-end, mid-end, and back-end. Bypersistently expanding the range of digital medical device products, broadeningthe scope of digital health services, and forming a complete digital closed loop,the Company creates smarter, more convenient, and highly efficient healthmanagement solutions.

Yuwell health products covered bydigital health services

units500,000

A new version of the Anytime mobile application hasbeen launched, attracting over 60,000 new registeredusers. A smart management system has been establishedand implemented in 54 hospitals, supporting integratedcross-product in-hospital operations.

User-end applets and an intelligent respiratorycockpit have been introduced to enhance userexperience and management decision-makinge?ciency, achieving software compatibility acrossall product categories in hospital scenarios.

Blood Glucose SegmentRespirator Segment

The Company actively engages with mainstream e-commerce platforms online and interacts directly with usersthrough social media, applets, and other digital tools. O?ine, it collaborates with pharmacies, medical institutions,and other channels to provide easily accessible products and services. Through this multi-channel approach, bothonline and o?ine, we precisely target users and deliver personalized health management solutions.Front-end

The Company has developed an integrated health management platform for medical devices based on IoT, big data,and cloud computing technologies. Through the deployment of smart hardware, we achieve data collection, analysis,and the formulation and implementation of personalized solutions. In 2024, the platform was expanded to include newproducts such as 4G blood glucose meters, nebulizers, AEDs, and third-generation respirators.The Company promotes synergy across multiple channels, including the family health cloud platform, the Yuwell HealthManager mobile application, and the WeChat o?cial account. Users can monitor and track their health indicators in realtime via mobile devices, access personalized health intervention plans and visualized medical reports, and interact withmedical professionals through telemedicine consultation features, facilitating personalized health management.Mid-end

The Company has established intelligent manufacturing bases that integrate R&D, design, production,management, and sales processes. This approach achieves full-process intelligent management, ensuringsuperior product quality and rapid service response times.Back-end

Digital Health Services

Yuwell Medical is committed to building a massive health ecosystem by integrating home healthcare, clinical medical care, andInternet healthcare resources. This approach aims to create a digital medical service ecosystem that empowers partners acrossmultiple scenarios, providing users with comprehensive health management services from prevention to rehabilitation.To construct a robust smart healthcare ecosystem, Yuwell Medical constantly prioritizes the security, regulatory compliance,stability, and consistency of digital medical product data. The Company strictly adheres to relevant laws and regulations, includingthePersonal Information Protection Law of the People's Republic of China.It actively participates in the formulation of industrystandards for medical data security and promotes the standardization, securitization, and e?cient utilization of medical data. Fordetailed information, please refer to the "Information Security and Privacy Protection" section of this report.

Smart Healthcare Ecosystem

Empowering

Hospitals

By aggregating data from home medical devices, we establish personal health records for users,connecting with large public hospitals, community hospitals, and Internet hospitals. This enables remotediagnosis, health monitoring, and remote intervention for chronic disease patients. The combination ofdata and internet healthcare allows hospitals to treat diseases more e?ciently and at lower costs, whileenabling patients to achieve long-term home health intervention and chronic disease management.

Extending Out-of-Hospital Medical Ecosystem to Form a Service Loop

EmpoweringPharmacies

Through an open data platform, we collaborate with OTC pharmacies to build personal/family healthrecords, integrating patients' medication and device usage to provide periodic, targeted, customizedservices. This forms a "medication + health service + wellness service" combination model, enhancingpharmacy service capabilities.

Serving the New "Medical-Pharmaceutical-Service" Loop

Through an open data platform, we assist community hospitals in establishing personal/family healthrecords for users and achieve data interconnectivity with relevant tiered diagnosis and treatmenthospitals. This promotes a closed loop for community hospitals to intervene and manage chronic diseaseresidents in their covered areas.

Serving Health Intervention and ManagementEmpoweringGeneralHealthcareInstitutions

Average training hours per employee during the year

35.28

Proportion of female employees in middle and senior management

31.25%

Total charitable contributions

million

1.47

6059

Safeguarding Lives andEmpowering People

People-Centered Approach

2024 Sustainability ReportJiangsu Yuyue Medical Equipment & Supply Co., Ltd.

RMB

6261

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

Human Capital Development

Yuwell Medical prioritizes human capital as the primary driver of sustainable corporatedevelopment. The Company consistently enhances its human resource managementsystem to ensure alignment with overall strategic objectives and efficient execution. TheBoard of Directors has established a Remuneration and Evaluation Committee, chaired byan independent director. This committee is tasked with formulating assessment standardsand compensation policies for directors and managers to motivate and retain key talent.The Company has established a Human Resources Center responsible for developingand implementing HR strategies, organizational structure, key talent management,and compensation and benefits. This center collaborates closely with various businessdepartments to ensure company-wide implementation of HR policies. Branches andsubsidiaries have established their own HR departments to align organizational talent withbusiness plans and constantly enhance organizational capabilities and human capital value.Yuwell Medical has developed and constantly refined a comprehensive series of HRmanagement systems. These include basic HR management policies and specializedpolicies for organizational management, talent management, professional training andpromotion, performance management, and compensation and benefits. These systemshelp align workforce planning with strategic and business objectives, build strategic talentpools, and proactively develop employees' professional capabilities. By doing so, eachemployee can leverage their strengths to deliver value, fostering mutual growth betweenemployees and the Company.Yuwell Medical implements a consumer-oriented, digitalized, and youth-focused talentdevelopment strategy. The Company adheres to an open and fair process for identifyingand selecting talent, promoting a development approach that combines internalcultivation and external recruitment. It formulates scientific and reasonable talentmanagement models aligned with strategic goals, offering competitive compensationand bene?ts, professional training, and promotion opportunities to achieve high-qualitydevelopment through a high-caliber talent pool.Since 2020, the Company has conducted annual organizational climate surveys,comprehensively gauging employees' genuine feedback and concerns acrosssix dimensions: basic needs, supervisory support, authority and processes, teamcollaboration, cultural identity, and learning and development. In 2024, the satisfactionsurvey questionnaire achieved a response rate of 88.5%, with an employee satisfactionrate of 81.9%. Through years of internal feedback and improvement of managementpractices at various levels, the Company has gradually enhanced employee experience,promoting mutual growth of the organization and its workforce.

Governance

Strategy andManagementMechanisms

The Company conducts regular organizational and talent assessments aligned with its strategic and business planning, and formulates mid-to long-term human resources plans to proactively plan for talent deployment. It utilizes diverse channels to attract a wide range of talent.External talent acquisition channels include internship programs, campus recruitment, and social recruitment, collaborating with renownedjob websites, regional platforms, and overseas recruitment agencies to enhance recruitment e?ciency and meet the Company's strategicand talent needs for rapid development. Internally, the Company advances strategic talent reserve initiatives through mechanisms such asemployee referrals, internal job postings, and the rehiring of former employees. It adheres to the principles of comprehensive evaluation,fairness and impartiality, and excellence in both moral integrity and professional competence throughout its recruitment practices. Withthese e?orts, the Company is committed to building a professional, international, and high-performing talent team.

Talent Recruitment and Retention

As a strategic talent pool for the Company's future management trainees, campus recruitment wassteadily advanced in 2024 through well-organized programs targeting fresh graduates and interns.The Company proactively engaged with over 40 universities, including Nanjing University, SoutheastUniversity, and China Pharmaceutical University, conducting both online and o?ine campus recruitmentto lay the foundation for its talent pipeline. In 2024, the Company recruited over 130 fresh graduates and200 interns, with 52 individuals entering the 2024 management trainee development program.CampusRecruitment

The Company actively engages in industry-academia-research collaborations with universities and researchinstitutes, establishing student internship bases and technology research institutes with Shanghai JiaoTong University, Beijing Institute of Technology, Southeast University, Nanjing University of Posts andTelecommunications, and Jiangsu University. These collaborations focus on talent cultivation, technologicalinnovation, and industrial upgrading, embracing cutting-edge advancements through talent exchange.JointCultivation

In line with business expansion, the Company actively cultivates a positive employer brand, focusingon attracting R&D and overseas sales professionals with extensive medical backgrounds in specializedsectors. It strengthens partnerships with external professional recruitment agencies to attract topindustry talent, leveraging talent suppliers, internet recruitment platforms (Liepin, 51job, LinkedIn,etc.), and social media (Maimai, Xiaohongshu, etc.) to enhance its employer brand in?uence.TalentRecruitment

Yuwell Medical's global manufacturing base is located in the Danyang region. The Company activelystrengthens local employer brand building, swiftly and accurately meeting its recruitment needsfor general workers through regional talent networks and grassroots outreach programs, ensuringlocalized and e?cient human resource allocation and supplementation.RegionalChannels

The Company implements employee referral, internal job competition, and employee rehiring mechanisms,encouraging internal sta? to recommend talented individuals and providing opportunities for employees toshowcase their abilities. This approach allows more morally and professionally excellent employees to standout, constantly fostering outstanding talent within the organization capable of ful?lling diverse roles.InternalChannels

The parent company of Yuwell Medical has received the following awards:

Outstanding Human Resource Management Award - Employer of Excellence

Employer of Choice of the Year AwardExcellence in Talent Acquisition and Development Award

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

Total courses launched on the YuwellAcademy Learning and DevelopmentManagement Platform1,499

Cumulative learning hours

116,752.4

Total course views

159,318

Total number of employees

6,346

New hires during the reporting period

2,368

Newly recruited fresh graduates

Proportion of female employees among newhires during the reporting period

34.71%

Yuwell Medical has established the Yuwell Learning andDevelopment Center based on its consumer-oriented, digitalized,and youth-focused talent development strategy. The Company hasimplemented learning maps and formulated a series of policies,including theHigh-Potential Talent Development ManagementMeasures, to constantly enhance its talent pool's competitiveness.Through close collaboration with various business units andleveraging online learning platforms, it has developed comprehensivesystems for professional, managerial, and new employee (bothsocial recruits and management trainees) development that alignwith future strategic needs. These systems leverage comprehensivetraining and hands-on learning approaches, combined with diverselearning modalities, to build employees' professional and leadershipcapabilities. To drive business growth and build a competitive talentpool, the Company annually launches targeted talent developmentprograms for critical functions like management, R&D, and sales.These initiatives focus on skills essential for the next 3-5 years, witha specific emphasis on cultivating and promoting young talent.The Company regularly collaborates with HR and business unitsto evaluate program effectiveness for participating leaders andemployees, while recognizing high performers to boost visibility andengagement. Through regular interviews, partnerships with leadingindustry consultants, cross-industry benchmarking visits, and otherdiverse methods, it effectively identifies and nurtures talent whileconstantly refining the training system based on feedback fromtraining programs and practices. Additionally, the Company conductsongoing evaluations of middle to senior managers, young leaders,and key professionals in development programs. It also supportsnewly hired middle to senior sta? from other industries in adjusting toYuwell's work environment, thereby fostering a learning organization.Yuwell Medical identi?es critical organizational competencies basedon business planning and develops talent to meet future businessneeds. Over the past three years, the Company has developeda comprehensive internal curriculum framework and instructorresource pool, focusing on critical areas like management, R&D,sales competency, and lean manufacturing. Complementing thiscore system is a structured practical training program that blendsexternal courses and expert instructors. Through its internal instructorteam, the Company translates valuable business and managementexperiences into replicable organizational practices, helping to solidifyand scale core competencies. Additionally, the Company invitesexternal industry experts for specialized seminars and organizesbenchmarking visits to peer enterprises, enabling the acquisition ofcutting-edge insights and management methodologies. Furthermore,the Company has forged partnerships with universities and researchinstitutions to attract and nurture high-caliber talent, thus enhancingits employer brand strength and research capabilities.

Employee Training SystemEmployee Training

Organizational hierarchy (persons)

5,898

Senior managementMiddle managementFrontline employees

Educational background (persons)2,233

1,612

2,501

Employees with bachelor'sdegrees or aboveEmployees withassociate degreesEmployees with degreesbelow associate level

Gender distribution (persons)

3,734

2,612

Male employeesFemale employees

Age distribution (persons)

4,135

4011,810

Employees aged30 and underEmployees aged 31-50Employees aged 51and above

Geographical distribution (persons)

6,234

Employees from China (includingHong Kong, Macao, and Taiwan)Overseas employees

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

Yuwell Medical consistently invests in the planning and development of management talent, with a strong emphasis on internalpromotion and leadership cultivation. In alignment with its latest global expansion strategy, the Company has partnered with a world-renowned leadership consulting ?rm to introduce the Yuwell Leadership Standards for the ?rst time. Comprehensive managementtraining programs are implemented through talent assessments, practical leadership development initiatives, and integrationprograms for externally recruited executives. These programs include management course development, hands-on training,and international study tours. The Company also partners with educational institutions to craft bespoke executive developmentprograms, o?ering specialized courses from renowned schools like CEIBS, Nanjing University Business School, Shanghai Jiao TongUniversity, and the Wharton School at the University of Pennsylvania. These initiatives provide leadership development opportunitiesfor managers at all levels and high-potential talent pools, enhancing their holistic perspective, leadership skills, and strategic vision.

Management TraineesJunior LeadersMiddle ManagersSenior Managers

Yuwell Medical prioritizes the integration and development of new employees. Through the online New Employee LearningProgram and in-person centralized training, the Company ensures that new hires quickly acquire essential corporate knowledge,understand business processes and products, assimilate the corporate culture, and adapt swiftly to their work environment. In2024, the Company conducted over 60 new employee training sessions, reaching 2,129 new hires.

New Employee Training

Leadership Development

The Yuwell Star Program is Yuwell's ?agship management trainee initiative, serving as a cornerstone for attracting innovative talentand building a strong pipeline of future leaders. The program features a multifaceted approach to development, including pre-employment online courses, an immersive induction bootcamp, a dual mentorship system (pairing business and BP mentors), andan accelerated career development camp. Leveraging an OMO (Online-Merge-O?ine) training model, the program facilitates rapidgrowth and smooth career transitions for management trainees. By the end of 2024, Yuwell Medical had successfully nurtured 426management trainees, with over 20 advancing to middle and senior management positions.

Yuwell Star ProgramCase

Total investment in employee training

million

3.20

Total training hours223,874

Average training hours per employee during the year

35.28

Total training attendances

35,762Employee training coverage rate

100%

Yuwell Medical's Junior ManagerTraining Camp is designed to facilitatethe transition of core personnel intojunior management roles. To date,two sessions have been conducted,bene?ting over 100 outstanding juniorleaders across the Group.

The 2024 Yuwell High-Potential TalentTraining Camp focuses on supportingthe Company's internationalizationstrategy. It addresses critical areas such ascross-cultural leadership and advancedmanagement skills, aiming to enhance theglobal perspective and comprehensiveleadership capabilities of core managersand high-potential employees.

Yuwell Medical designs distinctive talent cultivation projects with a product-oriented approach, adhering to the principle ofintegrating training with practical work. The Company has established four major development plans based on managementlevels: Embarking, Setting Sail, Sustaining Progress, and Leadership Pioneering. These plans comprehensively cover newemployees/management trainees, junior leaders, high-potential talent, and middle to senior managers. Through tailored trainingactivities, the Company aims to enhance and constantly upgrade employees' job competencies.

Talent Development Projects

Gender-based distribution (hours)

34.8336.00

Average training hoursper male employeeAverage training hoursper female employee

Hierarchy-based distribution (hours)

47.72

31.99

17.39

Average training hoursper senior managerAverage training hoursper middle managerAverage training hoursper frontline employee

Leadership Training Series

RMB

6867

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

For key roles in R&D, production, and marketing, Yuwell Medical has developed comprehensive job learning maps and specializedtraining programs to bolster core competencies and foster team collaboration. The Company has established well-de?ned competencystandards and learning trajectories for R&D roles, enabling researchers to hone their technical expertise and sharpen their professionalcapabilities. Production employees in critical roles undergo a series of specialized training courses, engaging in cutting-edge topics suchas medical equipment intelligence, big data analysis, overseas registration regulations, FDA and CE certi?cation, and interdisciplinarycollaboration projects. Employees are required to pass rigorous assessments before assuming their roles.

Professional Capability Enhancement

To support the implementation of its globalexpansion strategy and reinforce quality andcompliance awareness, the Company invitedleading Chinese medical device quality andregulatory experts to conduct a comprehensiveFDA regulation training series in 2024. Over 20internal courses were developed and adapted.These tailored programs, based on U.S. FDAregulations and guidelines, were delivered in fourdistinct modules covering general principles,registration protocols, product R&D, and post-market surveillance. The training encompassedemployees from regulatory affairs, registration,R&D, and platform departments.

Yuwell Medical adheres to a talent strategy that prioritizes internal cultivation while supplementing it with external recruitment. TheCompany has established a dual-track talent development system to help employees align their personal characteristics with bothprofessional and managerial growth paths, better matching individual career goals with organizational needs.For professional roles, the Company has introduced a professional certi?cation system and customized talent development initiatives.These frameworks help employees clarify their career positioning and identify skill gaps, empowering them to design personalizeddevelopment roadmaps. For management roles, the Company has established a leadership management system and structuredtiered development programs. It has also created leadership competency models and defined leader competency profiles for keymanagement positions, standardizing the procedures for leader selection, appointment, evaluation, and promotion. This approachunleashes the potential of managers at all levels and strengthens the organization's core competitiveness.

Dual-Track Talent Development System

Yuwell Medical promotes a culture of lifelong learning and has established policies such as theResearch Personnel ContinuingEducation Management Systemand theOn-the-Job Postgraduate Training Management System. The Company encourages andsupports all employees (including regular and part-time sta?) to pursue job-related degrees and quali?cations outside of work hoursand apply for growth programs that meet their personal development needs, constantly enhancing their professional competence.For employees choosing to pursue further education, the Company fully subsidizes their tuition and related expenses. As of the end ofthe reporting period, 24 employees have undertaken further academic studies, gaining greater opportunities for career developmentand advancement.

Academic and Quali?cation Support

Employee Development

Online Learning Platform: Yuwell Academy

Professional Competence

Course Resource Management Instructor Team ManagementTraining Project Management

Leadership

Yuwell Medical actively leverages high-quality external training resources. The Company organizes academic exchanges with externalresearch institutions and universities, collaborates with professional organizations, and invites industry-leading experts to conductexchange and training sessions for various departments, branches, and subsidiaries. These initiatives are critical to fostering innovation,enhancing the expertise of technical and managerial teams, and driving knowledge exchange. In 2024, the Company establishedcollaborations with leading consulting ?rms, including CEIBS, Korn Ferry, Beisen, YunXueTang, Xingtu Consulting, and 51job, to advanceits talent development strategies. These included the "Chinese Enterprises' Global Expansion Strategies and Implementation Roadmaps"course for the Yuwell High-Potential Talent Training Camp, the interviewer empowerment training, the CFMOTO study tour, theINOVANCE study tour, the cross-cultural leadership training, and the FDA registration regulations training.

External Collaborative Training

Yuwell Learning and DevelopmentCenter, in collaboration withthe School of Medicine JiangsuUniversity, has launched theExcellence in Service - YuwellMedical Advanced Studies Program.This initiative o?ers specializedcourses tailored to Yuwell's diversebusiness segments.

New Employee Development System (Social Recruits & Management Trainees)

LeadershipPioneeringSustainingProgress

R&DManagement TalentDevelopment SystemSenior Manager Wharton Study TourHigh-Potential Talent DevelopmentOn-The-Job Leader Training and Practice

New Manager Transition

Professional TalentDevelopment System

Departmental Team Pipeline BuildingProfessional Skills TrainingPosition Certi?cation TrainingProfessional Learning Maps

FunctionalProductionMarketing

EmbarkingSetting Sail

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

Diversity and Equal Opportunity

Female employee ratio

41.16%

Mid to senior-level female employee ratio

31.25%

Female employee ratio in STEM positions (R&D and technical roles)

29.37%

Ethnic minority employee ratio

2.68%

Senior management female employee ratio

25.19%

Employees with disabilities ratio

0.25%

Return-to-work rate after parental leave100%

Yuwell Medical strictly adheres to international human rights norms such as theInternational Bill of Human Rights, theILOConventions, and theUN Guiding Principles on Business and Human Rights. It also complies with theLabor Law of the People'sRepublic of China, theLabor Contract Law of the People's Republic of China, and local laws and regulations in its areas ofoperation. Multiple management policies have been formulated, including theYuwell Medical Recruitment Management System

and theYuwell Medical Employee Handbook, to standardize employee recruitment and onboarding processes. The Company doesnot discriminate based on gender, education, age, race, family status, religious beliefs, or cultural background, providing equalemployment and development opportunities for all employees. It prohibits the employment of child labor, forced labor, and otherillegal or policy-violating employment practices. The Company eliminates all forms of discrimination and prejudice, ensuringthe legality, fairness, and equity of the recruitment process. During the reporting period, Yuwell Medical did not experience anyincidents of child labor, forced labor, or employee discrimination.

Recruitment and Hiring

Yuwell Medical is committed to diversity, equity, and inclusion (DEI), fostering a dynamic and supportive workplace culture that valuesevery employee. The Company has also established barrier-free work environments for employees with disabilities, enabling theiremployment and ensuring meaningful work opportunities.For female employees, Yuwell Medical provides equal career opportunities, offering sound professional development prospectsand a comprehensive compensation and benefits system. The Company ensures equal pay for equal work regardless of genderand fully respects women's rights to statutory prenatal check-up leave, maternity leave, and breastfeeding leave. It also encouragesmale employees to take paternity leave during their spouse's childbirth period, promoting a balance between family and careerresponsibilities. For female employees returning to work after childbirth, the Company humanely provides a necessary adaptationperiod and gradually guides employees back into their roles based on individual physical recovery, supporting their career continuityafter returning from parental leave. Female employees are o?ered equal access to education, training, and promotion to support theirprofessional growth and skill diversi?cation. The Company empowers women to overcome career barriers, assume key roles, andtake on leadership responsibilities, thereby expanding their career development horizons.

Work and Welfare Support

Yuwell Medical advocates the philosophy of"diversity and inclusion, hard work, and happyliving". The Company integrates diversity andinclusion requirements into its recruitment andhiring processes, daily operations, and trainingactivities. Performance evaluations and promotiondecisions are conducted fairly and impartially foremployees from diverse backgrounds, providingequal opportunities and broad developmentplatforms for all staff members. Annual diversitytraining and activities are organized for allemployees, and regular face-to-face communicationand team-building events are held betweenmanagement, employees, and human resourcebusiness partners (HRBPs). These initiativespromote the integration of different culturalbackgrounds and aim to create a diverse, equal,inclusive, and dynamic workplace atmosphere.

7271

The Company has formulated theYuwell Medical Interim Measures for Compensation Management System, establishing anevaluation and incentive mechanism that aligns with business characteristics, focuses on performance, and is based on valuecontribution. A comprehensive compensation system has been developed for all employees, including those in non-managementand non-sales positions. The system includes both fixed and variable income components, with market dynamics and industrycompensation trends fully considered. By constantly refining compensation plans based on performance metrics, the Companyenhances the market competitiveness of its compensation packages.The compensation structure comprises a fixed salary, variable performance bonuses, and long-term incentives, designed to bedirectly linked to the Company's operating results, organizational performance, and individual achievements. Variable bonusesand long-term incentives are allocated differently across job categories, reflecting individual contributions and the achievementof company and departmental performance targets. This approach ensures a strong alignment between bonus distributions andperformance outcomes at both organizational and individual levels, e?ectively motivating employees to pursue performance goals,improve productivity, and retain key talent. Regular performance evaluations are conducted for all employees and departments toensure compensation accurately re?ects work results. The Company has also introduced an employee stock ownership plan (ESOP),using equity incentives to align core employees' personal interests with the Company's long-term goals. This strategy encourages sta?to focus on sustained corporate growth, supporting ongoing and e?ective business expansion. For detailed information on employeeequity incentives, please consult theJiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Annual Report.

Yuwell Medical actively promotes an e?cient, fair, and merit-based performance culture, complemented by a tiered and categorizedperformance appraisal system. The Company undertakes annual comprehensive evaluations of all regular employees, coveringkey dimensions such as performance, competence, work attitude, and behavior. The Company prioritizes employee capabilityenhancement and performance improvement while ensuring fair assessments and equitable rewards. Each year, the Companycommunicate its strategic and operational objectives to every department, team, and individual. This cascading process involvescommitment and support at all organizational levels, ensuring alignment between individual performance, departmental results, andstrategic objectives. Consequently, this approach translates corporate strategy into tangible daily activities, guaranteeing e?ectivestrategy implementation and the achievement of desired results.Throughout this process, the Company has developed robust communication mechanisms for performance management,with the goal of ensuring all employees understand performance management principles and actively engage in the process.High-performing staff are recognized through both material and non-material incentives to sustain motivation. In contrast, forunderperforming employees, the Company promptly deploys e?ective performance improvement plans (PIPs) to facilitate rapidimprovement. Comprehensive supervisory mechanisms have been established at every stage, including processes for performanceappeals, disciplinary complaints, and investigative interviews. These measures safeguard employee rights while ensuring theperformance management process remains objective, fair, and impartial.For middle and senior-level personnel, Yuwell Medical employs a 360-degree feedback assessment system. This approach gathersmulti-source input from supervisors, peers, subordinates, and cross-functional collaborators. The evaluation process consistsof three stages, covering the entire performance cycle and enhancing assessment fairness. In the preparation phase, tailoredsurvey questionnaires are designed for di?erent employee groups based on evaluation objectives. Both assessors and assesseesreceive thorough training on 360-degree feedback tools. During the assessment phase, the process is conducted anonymously,with strict con?dentiality measures for both assessors and results, fostering an environment for honest and unbiased feedback.In the feedback phase, assessees receive detailed feedback and coaching based on multi-source input, enabling them to identifystrengths, development areas, and performance gaps aligned with Company and supervisor expectations. This process empowersemployees to de?ne clear paths for professional growth and future improvement.

Compensation Incentives

Yuwell Medical upholds the philosophy of"hard work and happy living", providingall employees with comprehensivenon-monetary benefits. Through theimplementation of diverse welfare plansand employee assistance programs, theCompany aims to create a harmoniousand healthy work environment, nurturinga workplace characterized by warmth andwell-being.To provide employees with a pleasant,safe, and healthy workplace, the Companycompleted a new office building projectin 2024. The project incorporated open-concept and ?exible workspaces, creatinga modern and collaborative environmentthat fosters communication and teamworkwhile enhancing comfort.

Fostering a HappyYuwell Workplace

Provide endowment insurance, medical insurance, work-related injuryinsurance, unemployment insurance, maternity insurance, housingfund, and paid leave (e.g., sick leave, work injury leave, marriage leave,bereavement leave, prenatal check-up leave, maternity leave, paternityleave, breastfeeding leave, childcare leave, and annual leave).Set Yuwell summer vacation, a special summer vacation bene?t tailoredto the Company's industry business cycle, to encourage employees tomaintain a healthy work-life balance during peak and o?-peak seasons.BasicBene?ts

O?er annual health check-ups, accident insurance, illness compassionatepayments, and high-temperature allowances.Organize health activities including traditional Chinese medicine (TCM)consultations, shoulder and neck therapy, and eye examinations.Partner with external psychological assessment institutions to providepsychological evaluations and counseling services for employees in need.EmployeeHealth

Conduct regular team-building activities such as outdoor developmentprograms, the Yuwell Chairman's Cup basketball tournament, the Yuwellsupercar team, fitness challenges, and cultural performances. Deliverdiverse recreational activities including mobile game competitions, vlogcontests, and lucky draw events to help employees relax and unwind.Hold family open day annually to engage employees' families andchildren, jointly fostering a harmonious and healthy work atmosphere.StressRelief

Establish a compassion fund to provide timely assistance to employeesor their family members facing illness or hardships, supporting over540 individuals to date, with 33 employees receiving aid in 2024.Arrange additional home leave for expatriate employees, supplementingstatutory holidays and paid annual leave, to facilitate more familyreunions.Issue retirement commemoration certi?cates, social pension insurance,and mementos for retired employees.Assist employees in applying for various government subsidies whenappropriate.

CaringSupport

Parent-child activity

Sports check-in

Pet-friendly activity

Compensation Incentive Mechanism

Performance Evaluation and Feedback

2024 Sustainability ReportJiangsu Yuyue Medical Equipment & Supply Co., Ltd.

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

Yuwell Medical places strategic priority on continuous human capital enhancement, throughproactive identi?cation of potential workforce risks and systematic analysis of internal andexternal factors impacting talent development. In alignment with its strategic objectives,the Company engages in ongoing identification, assessment, mitigation, and monitoringof workforce risks to ensure they are maintained within acceptable thresholds. This risk-centric approach not only enhances organizational performance but also fuels long-termsustainable growth in a competitive market landscape.To address critical human capital risks such as talent attrition, shortage of key personnel,ine?ective performance management, insu?cient training and development, uncompetitiveor unfair compensation and bene?ts, legal compliance issues, and organizational culturerisks, the Company has established a scientific human resource management system.Based on strategic planning and business development directions, it formulates talentdevelopment strategies, creates a support system for employees' continuous growththroughout their career lifecycle, and optimizes human resource management strategiesfor the entire process of attracting, nurturing, utilizing, and retaining talent. The Companyalso strengthens talent review and succession planning to mitigate, reduce, or transfer risks,shaping a resilient and adaptable organization capable of thriving across business cycles.

Impact, Risk,and OpportunityManagement

Indicatorsand Targets

Protection of Employee Rights

Yuwell Medical has implemented a comprehensive setof internal policies and guidelines, including theAnti-Discrimination Management Procedure, Labor EmploymentProcedure, Special Working Environment Assessment forFemale Workers, Management of Child

andMinor Workers,Yuwell Work Injury Management Measures,andEmployeeHandbook. These policies comply with human rights protectionregulations, clearly de?ning employee conduct guidelines andexpectations. By outlining these standards, the Company aimsto mitigate potential human rights risks and provide robustsafeguards for employee rights.The Company has established human rights protection policiesand procedures to ensure fair opportunities and treatmentfor all employees in recruitment, employment, promotion,and workplace environment. It strictly prohibits all forms ofdiscrimination and harassment while guaranteeing reasonableworking hours, paid leave, and fair compensation. Employeesare entitled to join labor unions and engage in collectivebargaining. The Company has also implemented anonymousreporting channels to protect employees' freedom of speechand their right to report concerns. Supply chain risk assessmentsare conducted regularly, with suppliers required to adhere torelevant social responsibility standards, ensuring the absence ofhuman rights violations throughout the supply chain.

Labor Rights

Labor contract signing rate?

99.13%

Social insurance coverage rate?

98.12%

Employee discrimination or harassment incidents

Notes 1 and 2: Rehired employees do not enter into laborcontracts with the Company, and neither rehired employees norlocally hired foreign nationals are covered by the Company'ssocial insurance contributions. For all other regular employees,the labor contract signing rate and social insurance coverage rateboth stand at 100%.

100% coverage rate of employee trainingTarget achievedContinuous improvement in employeesatisfaction

Target not achieved?Employee satisfaction rate: 81.9%Key talent turnover rate ≤12.5%

Target achievedKey talent turnover rate: 12%

Indicator and Target2024 Achievement Status

Note 1: The Company's employee satisfaction survey response rate increased by 7.7% year-on-year in 2024, with a net increase of 880 in valid questionnaire respondents.

Yuwell Chairman's Cup basketball tournament

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

Yuwell Medical respects employees' rights to participate, express opinions, and exercise oversight. The Company constantly supportsemployees' freedom of speech by establishing open and transparent channels and platforms for expression. Through employee representativemeetings, face-to-face communication sessions with the Chairman, 360-degree evaluation of management, company internal publications, andemployee forums, the Company actively encourages employees to share their ideas and opinions on company operations and management.The Company has developed theYuwell Medical Employee Complaint Management Procedure and theYuwell Medical Reporting ManagementSystem, implementing a comprehensive grievance reporting mechanism with clear escalation protocols. This framework establishes de?nedresponsibilities and agile response mechanisms across all management levels, ensuring seamless communication from frontline to seniormanagement. Employees are encouraged to promptly report any unfair treatment to their supervisors or the Human Resources Department.The Company has appointed dedicated personnel to receive and address employee grievances and whistleblowing, providing timely updateson handling measures and outcomes to safeguard employee rights. Furthermore, the Company enforces strict con?dentiality for all complaintsand whistleblowing. Any retaliation is strictly prohibited and will result in severe disciplinary action, ensuring employees can voice concernsfreely without fear of reprisal. By analyzing grievance cases, the Company consistently improves its policies to prevent similar issues from arisingin the future.

In compliance with Occupational Health and Safety Management System standards, Yuwell Medical rigorously implements the "ThreeSimultaneities" principle (i.e., safety facilities must be designed, constructed, and put into operation simultaneously with the main project)during process design and product manufacturing. The Company arranges occupational health check-ups for employees and engagescerti?ed institutions to conduct periodic assessments of workplace noise, air quality, and other potential occupational hazards. It systematicallyidenti?es risks and implements occupational disease prevention measures. A tiered safety approach is employed, with high-risk work areas andlocations clearly marked using safety warnings and protective barriers to ensure a safe and healthy working environment for all employees.

Note 1: The Company does not contribute to work-related injury insurance for rehired and local foreign employees. For all other regular employees,the work-related injury insurance coverage rate is 100%.

The Company places great emphasis on cultivating a robust health and safety culture. It has developed an integrated online and o?ine learningplatform to provide comprehensive safety education, including three-tier safety training and ?re safety courses, to all employees. Regular initiativessuch as the Production Safety Month are organized to reinforce safety management practices as a routine aspect of work. These e?orts encourageemployees to prioritize safety precautions in their daily tasks, fostering a culture where safety is everyone's responsibility and priority.

Occupational Hazard Prevention and Control

Health and Safety Training

Yuwell Medical strictly adheres to relevant laws and regulations, including theWork Safety Law of the People's Republic of China, theLawof the People's Republic of China on the Prevention and Control of Occupational Diseases, theFire Control Law of the People's Republicof China, theSafety Administration of Hazardous Chemicals, and theProvisions on the Supervision and Administration of OccupationalHealth at Work Sites. The Company also complies with the requirements of the ISO 45001 management system. It has formulated aseries of regulatory systems, including theEHS Management Manualand the Measures for Management of Work-related Injury Accidents,establishing a comprehensive safety management system. The General Manager is responsible for the Company's production safety,incorporating annual health and safety targets into management performance evaluations to ensure workplace health and safety.

Occupational Health and Safety

Regular employee representative meetings enable employees to participate in company governance,particularly in matters related to employee bene?ts and career development.Employee Representative Meetings

The Chairman and General Manager engages in direct communication with key employees fromvarious departments, conducting open discussions on organizational, business, and cultural topics tolisten to employees' perspectives.

Face-to-Face Communication Sessions with the Chairman

This publication disseminates the Company's development updates, product information, andmanagement insights, while also featuring employee achievements and work re?ections.

Internal PublicationYuwell New Horizon

This forum enables all employees to freely express themselves, with o?cial accounts providing uni?edand timely responses to topics of employee interest.Employee Forum "Fish Pond"

Comprehensive assessments of managers are performed by their superiors, peers, subordinates, andcollaborating personnel to fully consider employee feedback.

360-Degree Evaluation of Management

Mastery of CPR and AED techniques is a mandatoryrequirement for all employees. This training has beenincorporated into the standard curriculum for newhires. Throughout the year, ?ve training sessions wereconducted, recording 489 attendances. An online ?rst-aid safety course was launched, with 499 employeessuccessfully completing the training and assessment.

Work-related injury insurance coverage rate?

98.12%

Workdays lost due to work injuries

Employee occupational disease incidence rate

0%Yuwell Medical's parent company and four of its subsidiarieshave obtained ISO 45001 Occupational Health and SafetyManagement System certi?cation.

Yuwell Medical's parent company has been certi?ed as

a Level 3 Enterprise for Work Safety Standardization.

Attendances in health and safety training

, with a coverage rate6,589100%

Employee Communication and Grievance

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

Safeguarding Life and HealthUpholding its mission of "alleviating patients' suffering andenhancing doctors' medical capabilities", Yuwell Medicalconsistently explores innovative philanthropic modelsthat align with contemporary developments and societalneeds. The Company is dedicated to initiatives in medicalemergency response, diabetic care, and rural medical support,contributing to the high-quality development of globalhealthcare industry.

Since its inception, Yuwell Primedic has been at the forefront of emergency rescue services, safeguarding lives globally. In Chinaalone, over 10,000 volunteers have undergone professional training provided by Yuwell Primedic. On a global scale, Yuwell Primedic'srescue network spans more than 100 countries, saving over a hundred lives annually. Furthermore, the Company has established theelite Flying Fish Rescue Team, which has collaborated with event security organizations to provide medical support at thousands ofinternational marathon events, successfully resuscitating dozens of runners who experienced cardiac arrest.On the 25th World Heart Day, Yuwell Primedic joined forces with various partners to establish a Public First Aid Network. This initiativeencompasses the promotion of AED ?rst aid knowledge through public welfare activities and includes a partnership with Tencent tointegrate AED devices into public transportation systems, thereby providing mobile emergency assistance to citizens. By harnessingadvanced 5G and AIoT technology, Yuwell Primedic partnered with Tencent and China Unicom to create comprehensive emergencyresponse solutions that greatly improve rescue efficiency. The company has also expanded its reach to schools, businesses,communities, and government agencies across the country. This program includes the One Hundred Emergency First Aid TrainingSessions and the Last Mile Emergency Aid Public Training, addressing common concerns about using emergency equipment andimproving pre-hospital emergency response e?ciency and patient survival rates. Looking ahead, Yuwell Primedic plans to establish?rst aid training cooperation sites in 100 cities. These sites will be equipped with AEDs, CPR manikins, and other interactive teachingtools, o?ering public ?rst aid training courses that cover health education, volunteer services, and rescue training to bolster primarymedical treatment capabilities.

Suzhou Hwato Medical Appliance Co., Ltd., a subsidiary of Yuwell Medical, is a steward and advocate of Traditional Chinese Medicine(TCM) and acupuncture culture. It consistently invests in education and talent development, breathing new life into the TCM sector.

Focusing on Medical Emergency Response

Promoting the Development of Traditional Chinese Medicineand Acupuncture

From September 22 to 26, 2024, the 7th Medical League Competition·Gobi HeroesGathering took place in Guazhou, Gansu Province. The event attracted 3,000representatives from the medical and pharmaceutical industries, who undertook thechallenge of trekking 81 kilometers across the Gobi Desert. Throughout the event,Yuwell Medical provided arm-type electronic blood pressure monitors and low-frequency electrotherapy devices to help participants monitor their health and aid inphysical recovery. The Company also equipped the venue with Yuwell Primedic AEDsfeaturing a drop-resistant design, ensuring timely emergency response capabilitiesand securing critical minutes in life-saving situations.

Yuwell Medical Continues to Provide Full Safety Support for the 7th Medical League Competition·GobiHeroes Gathering, Marking Six Consecutive Years of ParticipationCase

In 2024, Yuwell Medical served as the official medical security partner for the "Power ofWalking" public welfare project, delivering comprehensive medical support throughout theevent. To tackle the challenge of high-altitude oxygen de?ciency, the Company leveragedits medical expertise to design emergency response kits customized for specific walkingroutes and terrain. These kits were equipped with oxygen generators, AEDs, blood pressuremonitors, thermometers, blood glucose meters, and other essential medical devices.This proactive initiative not only ensured participants' safety and helped them maintainoptimal physical condition while navigating challenging terrain but also empowered moreindividuals to overcome obstacles and regain the courage to face life's challenges. Thejourney begins with the heart and unfolds naturally - embodying both the spirit of the walkand Yuwell Medical's core philosophy of "energizing life via technology".

Comprehensive Support for the "Power of Walking" Public Welfare ProjectCase

Established in 1991, the HwatoScholarship stands as the ?rst privatelyendowed scholarship at NanjingUniversity of Chinese Medicine. Ithas provided ?nancial support tothousands of exceptional students,playing a crucial role in revitalizing the?eld of TCM.

In collaboration with provincial andmunicipal acupuncture societies, theCompany instituted the Hwato GoldNeedle Award to recognize healthcareprofessionals who have made signi?cantcontributions to TCM and acupuncture.To date, nearly a hundred acupuncturistsacross the nation have been honoredwith this prestigious award.

The Company has forged a strategicalliance with the China Association ofAcupuncture-Moxibustion, sponsoringthe National College Acupuncture andTuina Clinical Skills Competition forthree consecutive years to foster thedevelopment of skilled practitioners inacupuncture and tuina.

Yuwell Primedic has conducted

Cumulative certi?ed ?rst aid volunteers nationwide

public welfare training

+

5,000

+

First aid instructors trained

+

reaching

cities withattendances

+

50,000

+sessions on AED and professional ?rst aid

Total charitable contributions

million

1.47

RMB

8079

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

Diabetes, one of the most prevalent chronic diseases worldwide, is increasinglyaffecting younger populations. Yuwell Medical is at the forefront of chronic diseasemanagement, driving product innovation and technological advancements based ona deep understanding of diabetic patients' needs and emerging health managementtrends. The Company offers more accurate and user-friendly blood glucosemanagement services for individuals living with diabetes. Furthermore, it partnerswith hospitals and other healthcare institutions to enhance diabetes prevention andtreatment e?orts, conducts free community clinics, and organizes various charitableinitiatives to provide comprehensive support for those a?ected by diabetes.

Yuwell Medical is actively involved in the Rural Healthcare Program, aiming to enhance primaryhealthcare services and improve the allocation of medical resources in rural areas. Over theyears, the Company has made significant donations of medical equipment to rural primaryhealthcare institutions, addressing the acute shortage of medical supplies at the grassrootslevel. Through partnerships with reputable charitable organizations such as the China CharityFederation, Red Cross Society of China Xianyang Branch, Jiangsu Social Donation Service Center,and Shanghai Charity Foundation, the Company has contributed funds and medical devices torural revitalization projects and various elderly care institutions. These e?orts have signi?cantlyenhanced health management standards and disease prevention capabilities in rural regions.To tackle the oxygen supply challenges in high-altitude regions, Yuwell Medical initiated theXizang Oxygen Production Project in 2016. This effort led to the establishment of the YuwellMedical Highland Oxygen Production Industry Park in Lhasa, Xizang, in 2018. The facilityproduces a full spectrum of high-altitude oxygen products, including centralized and splitdi?usion systems, micro-pressure oxygen chambers, modular units, portable devices, vehicle-mounted systems, and individual nasal inhalation devices. This diverse product range e?ectivelymeets the oxygen needs of highland residents. The Company's 1+1 Service Model, coupled withgrid-based, standardized service and an intelligent remote monitoring platform, ensures rapidproduct delivery—within 1 hour in urban areas of Xizang and within 1 day in remote regions.Yuwell employees have made multiple trips to high-altitude outposts over 5,000 meters abovesea level to deliver high-quality and reliable high-altitude oxygen concentrators to local residents,aid workers, and individuals from various sectors. The Company remains dedicated to its long-term engagement in Xizang, focusing on developing high-altitude medical infrastructure andexploring diverse public welfare models to improve the health of highland residents.

The Company regularly hostsYuwell Health Camp events,featuring renowned expertsfrom top-tier hospitals whoengage directly with diabeticpatients. These experts sharescienti?cally-backed methodsfor blood glucose control,creating a platform thatcombines professional healthguidance with interactivediscussions.

The Company has establisheda diabetic community, whichserves as an interactive onlineplatform catering to patientswith various types of diabetes,including Type 1, Type 2, andgestational diabetes.Registered users on the platform:

310,000+

Cumulative views in the diabeticcommunity: 1,690,000+Total number of posts: 80,000+

The Company activelypromotes public awarenessof diabetes preventionand control, disseminatingscienti?c knowledge aboutblood glucose management.

Dedication toDiabetic Care

Supporting RuralRevitalization

From October 17 to 22, 2024, the China Ageing Development Foundation, incollaboration with several in?uential organizations, launched the Hearing Care Programfor Veteran Soldiers, an initiative speci?cally targeted at retired soldiers in high-altituderegions. As a key partner, Xizang Yuwell Medical provided comprehensive services acrossvarious areas of Xizang, including Shannan, Shigatse, Nagqu, Lhasa, and Chamdo, atan average altitude of approximately 4,000 meters. The company conducted multiplehealth screenings, including tests for blood pressure, blood glucose, uric acid, andcholesterol, while also offering high-altitude oxygen supply services. Personalizedmedical advice was also provided, demonstrating Yuwell's commitment to the healthand well-being of retired soldiers in these challenging environments.

Committed to High-Altitude Healthcare, Serving the People of XizangCase

To promote the building and development of China's national grassroots infection control (IC) system, Zhongyou Likang Pharmaceutical High-Tech (Chengdu) Co., Ltd. has exclusively supported the National Health Commission in implementing the Inspiring China grassroots IC trainingprogram since 2017. The company has established the Inspiring China Hospital Infection Prevention and Control Research Fund, aimed ataccelerating research and exploration of innovative methods, technologies, and applications in China's IC ?eld. In 2024, Zhongyou Likangcollaborated with the National Health Commission to launch the second session of the Inspiring China grassroots IC training program.

Advancing National Grassroots Infection ControlCase

July 2024Yuwell Medical co-organized the18th Nanyi Summer Camp inHuai'an City, Jiangsu Province.The event attracted nearly 100families a?ected by Type 1diabetes, providing them withvaluable knowledge and practicalmanagement skills related to thecondition.August 2024The Company successfully held theYuwell Health Camp event, invitingmedical experts to deliver accessibleand informative sessions ondiabetes knowledge, and o?eringone-on-one free consultations. Inaddition, the Company providedcontinuous glucose monitoringsystems free of charge to help moreindividuals with diabetes achievescienti?c and convenient bloodglucose management.

A 6.8-magnitude earthquake struck Tingri County in Shigatse City, Xizang, causing casualties in surrounding areas including Lhatse County andresulting in over 100 injuries. Xizang Yuwell Medical immediately activated its high-altitude emergency oxygen supply and emergency ?rst-aid plan,deploying critical medical rescue equipment such as high-altitude outdoor oxygen production cabins, portable wearable oxygen concentrators,and AEDs to provide urgent oxygen support and emergency medical aid for earthquake relief. Partnering with the China Ageing DevelopmentFoundation, the company organized overnight transportation to ensure essential medical gear, including oxygen generators and wheelchairs,along with other relief supplies, reached the disaster zone promptly. This rapid response provided critical medical support to a?ected residents andfrontline rescue teams, signi?cantly enhancing the e?ciency of rescue operations.

CGM blood glucose exhibition

Yuwell Health Camp event

Delivery within

hour in urban areas

of Xizang

day in remote areasDelivery within

of Xizang

8281

Greenhouse gas emission intensity

tons of CO

equivalent/RMB 10,000 revenue

0.0315

Waste emission compliance rate100%

8281

Creating a Shared Green FutureEnvironmental Friendliness

2024 Sustainability ReportJiangsu Yuyue Medical Equipment & Supply Co., Ltd.

Total investment in environmental protection

million

4.82

RMB

8483

2024 Sustainability ReportJiangsu Yuyue Medical Equipment & Supply Co., Ltd.

Strengthening Environmental ManagementYuwell Medical is committed to implementing and upholding the principles of green development. The Company strictly adheres torelevant environmental protection laws and regulations, including theEnvironmental Protection Law of the People's Republic of China,theLaw of the People's Republic of China on Water Pollution Prevention and Control, theLaw of the People's Republic of China onthe Prevention and Control of Atmospheric Pollution, and theLaw of the People's Republic of China on the Prevention and Control ofEnvironmental Pollution by Solid Waste. In accordance with ISO 14001 Environmental Management System standards, it has developedthe Yuwell Medical EHS Management Manualand other policy guidelines. The Company constantly optimizes its internal environmentalmanagement system, embedding sustainable development practices into daily operations. Through developing a comprehensive EHSgovernance framework, it rigorously enforces EHS management responsibilities at all organizational levels. The Company also enhancesits monitoring and improvement mechanisms, with the dual goal of boosting corporate competitiveness while reducing environmentalfootprint. During the reporting period, Yuwell Medical reported no environmental pollution incidents, incurred no environmentaladministrative penalties, and experienced no major environmental incidents.

The Company has established a three-tier EHS management structure with clearly defined responsibilities at each level. TheGeneral Manager is primarily responsible for environmental protection, leading and coordinating the Company's EHS managementstrategies. A Management Representative is appointed to develop plans and ensure that environmental initiatives are established,implemented, and maintained within the EHS management system, with direct reporting to the General Manager. The functionaldepartments execute various regulations and requirements of the Company's EHS management system, ensuring the achievementof EHS management policies and objectives. The EHS management system encompasses 100% of the Company's relevant businesssegments. During the reporting period, the Company revised theYuwell Medical EHS Responsibility Systemand implemented tieredsafety and environmental protection responsibility agreements to ensure e?ective implementation of safety responsibilities.

The Company has implemented a suite of policies, including theIdenti?cation, Evaluation, and Control Procedure for Environmental Factors,theGeneral Rules for Monitoring, Measurement, Analysis, and Evaluation, andtheEmergency Preparedness and Response Procedure. It annually identi?esand reviews environmental risk factors, undertaking proactive environmentalassessments and hazard investigations to constantly refine risk controlmeasures. Regular environmental monitoring is carried out to e?ectively trackpollutant emissions, with results promptly disclosed for regulatory review andpublic oversight. An emergency command center and response teams havebeen established, supported by a dedicatedEmergency Plan for SuddenEnvironmental Incidents. Regular professional training and emergency drillsare conducted to strengthen the Company's emergency response capabilitiesand readiness for environmental incidents. During the reporting period, theCompany revised itsList of Signi?cant Environmental Factors, identi?ed 55environmental factors, and carried out two environmental emergency drillsfocusing on chemical spills and sudden environmental incidents.

EHS Management Structure

The Company regularly assesses the environmental impact of its business operations, cascading environmental objectives andtasks to various departments. It reinforces the tracking, feedback, and evaluation of goal achievement progress, implementingclosed-loop management to constantly improve environmental performance. EHS management objectives are incorporatedinto management performance evaluations, with a veto system for major negative incidents in environmental management.Once the EHS management objectives are further detailed and allocated to speci?c departments, they are directly tied to theperformance evaluations of department heads and relevant personnel.

Environmental Management Objectives

Environmental Risk Management

Indicator and Target2024 Achievement Status

Waste classi?cation rate ≥ 90%100% control of hazardous waste90% control of recyclable waste

Target achieved

Factory boundary noise emissions comply with Class 3 standard in GB 12348-2008Emission Standard for Industrial Enterprises Noise at Boundary, i.e., ≤ 65 decibels duringthe day and ≤ 55 decibels at night, with no complaints from relevant parties.

Target achieved

Unorganized exhaust gas emissions at factory boundaries meet standards, with noexternal complaints.

Target achievedImplement rainwater and sewage diversion systems in the factory area, withcompliant sewage discharge.

Target achieved

Increase factory area greening to 15% of the factory area.Target achieved

The Company has developed theInternal Audit ControlProcedureand the Management Review Procedure. Annually,it undertakes multi-dimensional internal environmentalaudits, cross-departmental reviews, and rigorous self-inspections according to a prede?ned schedule. The systemmaintains its e?ectiveness through the PDCA (Plan-Do-Check-Act) model, ensuring continuous improvement. Quarterly,the Company partners with third-party professionalinstitutions to audit its environmental management system,comprehensively assessing operational efficiency andenvironmental performance. Furthermore, the Companyactively promotes the development and certification ofits environmental system, undergoing annual supervisoryaudits by third-party certi?cation bodies and recerti?cationaudits every three years.

Environmental Audits and Certi?cation

The Company regularly conducts diverse, multi-tiered environmentalprotection education and training programs, followed by post-trainingassessments. Extensive environmental awareness campaigns are organizedto enhance employees' environmental consciousness and competencies.During the reporting period, environmental protection training covered100% of the Company's main operational bases, with 2,000 manualsdistributed and ?ve environmental education warning ?lms screened.

Environmental Protection Training

Oversee the Company's EHS management initiatives, including formulating corporate EHS managementpolicies and objectives, ensuring adequate resources for e?ective operation of the EHS management system,and preventing and managing overall environmental risks.Assist the General Manager in establishing, implementing, and maintaining the EHS management system,ensuring the realization of EHS management policies and objectives. Organize the assessment of risk andopportunity response measures, and oversee the investigation, analysis, and handling of major environmentaland safety incidents.

Execute various regulations and requirements of the Company's EHS management system, carry out work relatedto the EHS management system, and ensure the achievement of EHS management policies and objectives.FunctionalDepartments

ManagementRepresentative

GeneralManager

Yuwell Medical's parent company andthree of its subsidiaries have obtainedISO 14001 Environmental Management

System certi?cation.Yuwell Medical's parent company has

been certi?ed asthe national Green Factory andthe Jiangsu Provincial Green Factory.

Environmental protectiontraining coverage rate

100%

Total investment inenvironmental protection

million

4.82

RMB

8685

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

Addressing Climate Change

Yuwell Medical has established a comprehensive governance structure to constantlyenhance its capacity to identify, assess, manage, and disclose climate-related risksand opportunities. The Board of Directors assumes a leadership role in managingand deciding on climate change issues, reviewing ESG-related risk and opportunityassessments (including climate change topics), approving climate-related planningobjectives and their progress, and overseeing implementation. The EHS Working Groupis responsible for evaluating and analyzing climate change risks and opportunities,formulating strategic objectives and implementation plans to address climate change,promoting the implementation of climate-related actions across various business units,and regularly collecting and tracking climate change-related data and target progress.

Governance

Yuwell Medical thoroughly analyzes the risks and opportunities presented by climatechange, incorporating climate change considerations into strategic decision-making.While accelerating green transformation, the Company integrates climate riskresponse into its operations to enhance overall climate resilience.

Strategy andManagementMechanisms

Acute Risks

Extreme weather events (e.g., ?oods, typhoons, and high temperatures)caused by climate change may directly damage company assets andproduction facilities, impacting business continuity.

Short-term,Medium-term

Revenue ?Operating costs?Fixed asset value?

Enhance the identi?cation and management of climate change risks. Re?neemergency response plans to boost the capacity to respond to extremeweather events, optimize supply chain layout, and ensure business continuity.Consistently advance energy efficiency management and intelligentmanufacturing, gradually introducing production line robots, and automatedguided vehicles (AGVs) to improve production efficiency and reduce long-term operating costs.Chronic Risks

Rising temperatures and water resource risks may a?ect supply chainstability and operational costs.

Long-termOperating costs ?Policy andRegulations

Increasingly stringent policies and requirements in operationallocations may increase costs and strengthen operational constraints.

Medium-term,

Long-term

Operating costs ?

Promptly monitor environmental and carbon-related legal and policychanges in operational locations. Enhance compliance managementand proactively consider policy adaptability.

Market andTechnology

Customer demands for low-carbon products and green supply chains aregrowing. While green product and technology deployment will enhance theCompany's product competitiveness, low-carbon transition costs will increase.Extreme weather induced by long-term climate change may directly orindirectly a?ect human health. Changes in public health environments maynecessitate potential adjustments to the Company's product R&D directionand market strategy, posing certain challenges.

Medium-term,

Long-term

Revenue ?Operating costs?

Constantly monitor and assess potential impacts of climate change andnatural disasters on human health. Stay abreast of cutting-edge scienti?cresearch on disease spectrum changes caused by climate change. Intensifyproduct and technology R&D e?orts.Develop comprehensive decarbonization strategies. Actively implementnew materials, equipment, processes, and technologies. Thoroughlyevaluate investment returns and feasibility before implementing low-carbon transition projects. Adopt optimal solutions based on specificcircumstances.

Products andServices

Potential new business directions may emerge in disease areas causedby climate change, leading to new home medical device solutions.Health issues brought about by climate change may drive increaseddemand for home medical devices.Enhancing product competitiveness and expanding new growth areasthrough low-carbon technology R&D and green product development.

Medium-term,

Long-term

Revenue ?

Increase R&D investment and optimize R&D layout to enhanceproduct chain competitiveness while addressing health needs.

ResourceE?ciency

Adopting energy-saving technologies and equipment to reduce energyconsumption in production processes, achieving both cost savings andenvironmental protection.

Short-term,

Medium-term

Operating costs?

Further promote intelligent manufacturing initiatives. Widely implementenergy-saving technologies and equipment in production processes tocreate a green and e?cient energy utilization system and reduce long-term operating costs.

CategoryImpact Period

Potential Financial

Impact

Response MeasuresRisk/Opportunity Description

Physical Risks

ClimateOpportunities

Transition Risks

8887

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

Yuwell Medical integrates green innovation principles into product development. Throughout packaging design, production, distribution,transportation, and sales, the Company actively employs new materials, equipment, processes, and technologies to promote modular,lightweight, low-energy consumption, and environmentally friendly design, delivering more sustainable high-quality products.The Company rigorously implements comprehensive hazardous substance control, requiring suppliers to provide raw and auxiliarymaterials that comply with the EURestriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) Directive. Self-assessments are conducted in accordance with theGreen Supply Chain Management Evaluation Requirements, achieving a greensupply chain management index of 82.5 (exceeding the 80-point threshold), meeting the criteria for an excellent green supply chainmanagement enterprise. This ensures that risks associated with chemical substances a?ecting human health and the environment in theCompany's production and operations are minimized.

Yuwell Medical ensures compliance with ISO 50001 Energy Management System requirements. TheCompany has developed comprehensive energy management policies, including theEnergy ManagementSystem Manual. To support the development of energy management objectives and plans, a robust energymanagement framework has been implemented. Regular energy conservation audits are conducted,with energy-saving and emission-reduction initiatives pushed forward through three key dimensions ofmanagement-driven conservation, technological conservation, and energy structure optimization—all withthe goal of achieving low-carbon operations. Energy management objectives are annually updated andincorporated into performance evaluations to ensure alignment with sustainability goals.

In packaging design, production, distribution, transportation, and sales, the Company prioritizes packaging simpli?cationwhile maintaining product safety. It emphasizes the use of recyclable materials and promotes packaging material reductionthroughout the product lifecycle through internal circulation, resource recycling, and reuse, thereby minimizing naturalresource consumption and environmental impact.

The Company advocates for recyclable,biodegradable, or reusable packaging materialssuch as cardboard and biodegradable plasticsto reduce environmental impact. For instance,biodegradable materials like 400g white cardboardare used for packaging temperature, fetal heart,and blood oxygen products. Foam liners havebeen replaced with recyclable air column bagsmade of LLDPE/NYLON co-extruded ?lm, reducingplasticization volume.

Green Products

Low-Carbon Operations

Yuwell Medical'sparent companyand two of itssubsidiaries haveobtained ISO 50001Energy ManagementSystem certi?cation.Yuwell Medical is actively developing a big data platform for energy management. This platform establishes an integrated energycontrol system encompassing data collection, process monitoring, and energy management. Through multi-level metering devices,the Company achieves centralized monitoring of various energy media and key energy-consuming equipment. This enablescomprehensive closed-loop management from energy planning to statistics, analysis, and assessment, ensuring the safe, reliable,economical, and efficient operation of energy systems. This approach facilitates the transition of energy management from anexperience-based model to an analysis-driven one, and from manual processes to digital operations.

Energy Management Strategy

Green Packaging

Green Health Materials

Electric Wheelchairs: A lightweight product series has been developed, with an average weight reduction of approximately 5kg acrossthe new product line and a 10% decrease in folded size, reducing packaging volume and material usage. All models incorporate a low-power consumption design for the control unit, reducing standby power consumption from 3mA to 0.8mA, extending standby timewhile reducing energy consumption.Electronic Blood Pressure Monitors: Platform-based design concepts are adopted for air circuit modules and circuit modules to reducematerial redundancy. Intelligent standby design and smart control modes are employed to further minimize power consumption.Oxygen Concentrators: Modular and easy-maintenance designs are implemented for convenient disassembly and repair, extendingproduct lifespan and reducing waste materials. A built-in intelligent pulse oxygen supply system provides oxygen only when the userinhales, preventing unnecessary oxygen and energy waste. Design focus is on miniaturization of spatial dimensions and equipmentweight reduction, improving portability and transportation e?ciency.Temperature Products: Modular and lightweight design principles are applied, with a shared temperature measurement modulefor the preheating platform (YHT108, YHT201, YHT202, YHT208, YHT207 share the temperature measurement module), enhancingresource e?ciency.

Modular, Lightweight, and Low Energy Consumption Design

The Company selects renewable and recyclable materials for its oxygen concentrators. High-efficiency compressors areutilized to enhance oxygen production e?ciency. Advanced molecular sieve adsorption materials are employed to optimizethe oxygen production process, improving nitrogen-oxygen separation e?ciency and reducing energy consumption.The Company has introduced electronic blood pressure monitors that use rechargeable lithium batteries. These can berecharged and used multiple times, o?ering a more sustainable alternative to conventional disposable alkaline batteries.The Company chooses materials compliant with the RoHS directive. Strict controls are implemented over harmful substancessuch as mercury, lead, cadmium, and hexavalent chromium, signi?cantly minimizing their impact on human health.The Company selects packaging suppliers and products that meet environmental certi?cation standards, such as ISO 14001Environmental Management System certi?cation. This ensures that all procured packaging materials adhere to environmentalprotection requirements.

The Company has launched the innovativeReusable Box project to decrease packagingmaterial usage for consumer-end shipments.This recycling model achieves e?cient resourceutilization, signi?cantly reducing waste disposalcosts and environmental burden.

This system is founded on statistical accounting and enhanced by integrated monitoring. It oversees energy planexecution, supplemented by control and adjustment measures. The system focuses on energy indicators, reinforcesthematic analysis, and supports energy forecasting, decision-making, and performance evaluation.

Integrated Monitoring

Statistical AccountingEnergy Plan

Energy Forecasting

Energy Indicators

Pre-planning

In-processControlEnergyDecision-making

In-processAccountingEnergyForecasting

Post-analysisPost-evaluation

Energy Decision-makingControl and AdjustmentPerformance EvaluationThematic Analysis

9089

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

An energy management center has been established, equippedwith a smart online monitoring system. This system allows forreal-time tracking of energy consumption, unit energy usage,energy trends, and operational parameters, making it easy tospot unusual consumption patterns. Thorough analyses of theenergy data help identify opportunities for savings and developmore effective conservation strategies. This informs timelyadjustments to production, management, and processes,facilitating ?ne-grained energy management.Off-peak electricity consumption is utilized, with high-powerequipment usage scheduled during nighttime hours whilemaintaining production efficiency and equipment safety toboost energy e?ciency.Natural lighting is maximized, and green office practices areactively promoted to reduce energy consumption and wasteemissions.

Heyang Photovoltaic Power Generation Project Phase II (newly built)

High-energy-consuming, low-efficiency outdated equipmentis systematically replaced. All operational sites have adoptedintelligent centralized energy systems, with common equipmentsuch as air compressors, transformers, water pumps, chillers,and cooling towers upgraded to energy-saving models. Energy-e?cient lighting has been implemented across 100% of facilities,resulting in signi?cant operational emission reductions. In 2024, achiller frequency conversion renovation project was implemented,reducing electricity consumption by 633,600 kWh. New energy-efficient permanent magnet variable frequency air compressorswere introduced, further reducing electricity consumption by450,000 kWh.Water-circulation air conditioning systems have been introduced,o?ering superior energy e?ciency, low noise levels, and enhancedenvironmental performance. Compared to traditional airconditioning, these systems can reduce energy consumption byover 30% while providing higher cooling e?ciency. The eliminationof refrigerants in these systems further reduces pollution.Intelligent manufacturing practices are constantly advanced,including the introduction of automated production lines androbotic technologies. More efficient production techniques andprocesses are applied, with real-time monitoring and adjustmentof equipment status to reduce energy consumption per unit ofoutput value.

Energy Conservation and Emission Reduction Actions

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

Indicator and TargetManagement-Driven ConservationTechnological Conservation

2024 Achievement StatusComprehensive energy consumption per unit ofoutput value ≤ 6.08 kg standard coal equivalent/RMB 10,000

Comprehensive energy consumption per unit of outputvalue: 5.64 kg standard coal equivalent/RMB 10,000

TargetachievedAir compressor e?ciency≥ 85%, pressure ≥ 0.75,exhaust temperature < 100°C

Air compressor e?ciency≥ 85%, pressure≥ 0.75, exhausttemperature 80°CPower distribution power factor ≥ 96%, line lossrate < 5%

Power distribution power 97%, line loss rate ≤ 3%Ground source heat pump e?ciency COP ≥ 5.4Ground source heat pump e?ciency COP ≥ 5.4Screw chiller e?ciency COP ≥ 5Screw chiller e?ciency COP ≥ 5

IndicatorUnit2024

EnergyConsumption

Gasolinetons52.86Dieseltons37.93Natural gasmillion m?1.01Purchased electricitymillion kWh39.84Total energy consumptiontons of standard coal equivalent6,368.69Energy consumption intensity

tons of standard coalequivalent/RMB 10,000 revenue

0.0084

Greenhouse GasEmissions

Direct greenhouse gas emissions (Scope 1)tons of CO

equivalent2,456.42Indirect greenhouse gas emissions (Scope 2)tons of CO

equivalent21,380.41Total greenhouse gas emissions (Scope 1and Scope 2)

tons of CO

equivalent23,836.83Greenhouse gas emission intensity

tons of CO

equivalent/RMB10,000 revenue

0.0315

Yuwell Medical has implemented a comprehensive process and framework for managing climate-related risks and opportunities.This system is designed to identify, assess, and manage signi?cant climate change risks and opportunities, enabling the Company todevelop evidence-based climate change response strategies and enhance its overall climate resilience.Impact, Risk, and Opportunity Management

Material risks and opportunities are fully integrated into the Company's risk managementsystem. Comprehensive climate risk response action plans are developed, and targeted riskmanagement and response measures are implemented. The execution of these plans isregularly monitored to ensure active response to climate change challenges.Management of ClimateRisks and Opportunities

The Company identi?es climate risks and opportunities in alignment with recommendations fromframeworks such as theIFRS S2 Climate-related Disclosuresand theSelf-Regulatory GuidelinesNo. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (Trial).Identi?cation ofClimate Risks andOpportunities

Through thorough internal and external environmental analysis and the use of risk managementtools, the Company evaluates the probability of risks occurring, the potential impact of these risks,and their ?nancial implications. This process helps to pinpoint signi?cant climate change risks andopportunities and their potential e?ects on the Company's operations.Assessment of ClimateRisk and Opportunity

Materiality

The proportion of clean and renewable energy use is beingincreased, raising the share of green electricity in the Company'senergy mix through ongoing investment in photovoltaic systemsand green electricity purchases.

Energy Structure Optimization

Indicators and Targets

Photovoltaic powergeneration during the year

million kWh

8.70

Total renewable energyconsumption

million kWh

9.20

Green electricitypurchased

million kWh

0.50

9291

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

ReducingEnvironmental Impact

Water Resource Management

Develop comprehensive water resource usage plans, rationally allocate water resources, implement stringent quotamanagement, and regularly assess and supervise water usage, with a system of rewards for conservation andpenalties for excess use.Annually allocate dedicated funds for water-saving projects, technological upgrades, and procurement of e?cientwater-saving equipment such as advanced cooling towers to improve water resource utilization efficiency. Forexample, Shanghai Medical Instruments Group upgraded open cooling towers to closed-circuit types, signi?cantlyreducing water evaporation and cutting annual water consumption from over 30,000 tons to approximately 4,000 tons.Conduct regular inspections and maintenance to prevent water leakage and waste.Enhance employee training on water conservation practices and actively encourage sta? to propose innovative water-saving technical improvements, fostering a culture of research and innovation.

WaterConservation

Actively promote water recycling initiatives in production and operations, including the reuse of cooling andprocess water, as well as wastewater treatment and reuse. These e?orts aim to improve water e?ciencywhile reducing the environmental impact of wastewater discharge on surrounding water bodies.Implement rainwater harvesting systems, collecting rainwater in on-site reservoirs for landscape irrigation,which resulted in saving 1,440 tons of water from natural precipitation in 2024.

WaterRecycling

Construct robust pipeline networks to prevent production and operation disruptions due to potentialwater supply interruptions. Carefully consider water resource risks in new project site selection processes,constantly monitor water scarcity risks, and regularly evaluate water-related strategies to ensure a stableand su?cient water supply for essential production operations.Water RiskReduction

tonsTotal water discharge

244,600tonsTotal water consumption449,400

tonsWater recycling volume39,600

Water recycling rate

5.40%

Total water withdrawal

tons694,000

Municipal water withdrawal

tons694,000

Surface waterwithdrawaltons

Groundwaterwithdrawaltons

Yuwell Medical primarily sources its production and o?ce water frommunicipal supplies. All major production and operational sites thatconsume significant water are strategically situated in areas withrelatively low water stress risk. The Company has developed theYuwellMedical Water Conservation Management System, implementing acomprehensive water planning and management approach. Thisinvolves developing detailed water-saving plans and setting annualwater usage targets, which are assigned to key departments thatconsume the most water and monitored by designated personnel.The Company also actively promotes production process optimizationand equipment upgrades to promote sustainable water use.During the reporting period, Yuwell Medical underwent a rigorouswater-saving enterprise evaluation in accordance with theEvaluatingGuide for Water Saving Enterprises. The Company successfully metall basic requirements, management assessment indicators, andtechnical benchmarks, thereby qualifying as a water-saving enterprise.

9493

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

Yuwell Medical upholds a clean and green production and operational model. It strictly adheres to relevant laws and regulations, includingtheRegulation on the Administration of Permitting of Pollutant Discharges, and has implemented theYuwell Medical EHS ManagementManualto meticulously manage exhaust gas emissions, wastewater discharge, and solid waste disposal. The Company mandates thatpollution prevention facilities be designed, constructed, and commissioned concurrently with the main project. Regular self-monitoring isconducted by accredited third-party testing institutions, with environmental monitoring data promptly disclosed to ensure 100% compliantdischarge of all waste types, thereby minimizing the environmental impact of emissions. Throughout the reporting period, the Companyrecorded no major environmental incidents, facing no administrative penalties or criminal charges from environmental protectionauthorities for such incidents. There were no instances of excessive or illegal discharge of air or water pollutants.

Emissions and Waste Management

The Company's wastewater primarily stems from domestic sewage, R&D activities, and manufacturing processes. Yuwell Medicalrigorously complies with pertinent laws, regulations, and local standards, including theLaw of the People's Republic of China onWater Pollution Prevention and Control, theIntegrated Wastewater Discharge Standard,and theReuse of Urban Recycling Water- Water Quality Standard for Industrial Uses. The Company has established a comprehensiveWastewater Management Systemtoenhance online monitoring and regular inspections, ensuring compliant treatment, discharge, and recycling of production andoperational wastewater. A rainwater and sewage diversion system is implemented. Rainwater is channeled into the municipalrainwater network, while production wastewater undergoes on-site treatment, with a portion reused in production and the remainderdischarged externally. High-concentration organic wastewater is subjected to pretreatment before being combined with various typesof washing water and alkaline scrubber wastewater in a mixing pool for detoxi?cation. Subsequently, 60% of the treated wastewater isdischarged into the municipal sewage network, while 40% enters the water reuse treatment system. After meeting quality standards,this reclaimed water is utilized for rinsing in production lines, resulting in an annual water savings of approximately 4,380 tons.

Yuwell Medical's production processes primarily generate emissions including volatile organic compounds (VOCs), nitrogen oxides(NOx), sulfur oxides (SOx), and particulate matter (PM). The Company rigorously adheres to theLaw of the People's Republic of Chinaon the Prevention and Control of Atmospheric Pollutionand local air pollutant emission standards. In compliance with the internalExhaust Gas Management System, it implements comprehensive emission controls across all facilities, ensuring exhaust gas emissionsmeet standards after treatment through proper devices. Monitoring and sampling ports have been installed at key outlets, and regularassessments of critical parameters such as exhaust gas composition, concentration, and ?ow rate are conducted to e?ectively mitigateair pollution risks. In 2024, Zhongyou Likang upgraded its exhaust gas treatment facilities in workshops, transitioning from photocatalyticunits to activated carbon adsorption systems, achieving an organized exhaust gas treatment e?ciency of over 90%.

Yuwell Medical's industrial wastewater treatment project emphasizes technological advancement and operational efficiency.Utilizing mature and proven wastewater treatment technologies, combined with an automated control system, it preciselyoptimizes operational parameters and ensures consistent compliance with effluent standards. The project opts for high-quality, energy-efficient local equipment and streamlines operational procedures via integrated design, substantially reducingmanagement complexity and minimizing the risk of human error. After treatment, 40% of the industrial wastewater is reintroducedinto the production process for recycling, achieving exemplary resource recovery while preventing secondary pollution risksthrough whole-process pollution control measures, thus establishing a sustainable wastewater management model.

DegreasingWastewaterSprayWastewater

Industrial Wastewater Treatment ProjectCase

Indicator 2024

Indicator 2024Chemical oxygen demand (COD) (tons)1.21Ammonia nitrogen emissions (tons) 0.09

Nitrogen Oxides (NOx) emissions (tons)0.18Sulfur Oxides (SO

x

) emissions (tons)0.02Volatile Organic Compounds (VOCs) emissions (tons)1.12Particulate Matter (PM) emissions (tons)0.08RegulationTank

StandardizedOutlet

Regulation Tank

Air Flotation Tank

Fenton Oxidation Tank

Mixing TankMER ReactorA/O Tank

Fenton Oxidation Tank

Discharge Tank

Reclaimed Water System

Production Reuse

Wastewater Management

Exhaust Gas Management

废气管理

SludgeDewatering

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

Yuwell Medical strictly complies with theLaw of the People'sRepublic of China on the Prevention and Control of EnvironmentalPollution by Solid Wasteand other relevant laws and regulations.The Company has implemented theGeneral Solid WasteManagement Systemand theHazardous Solid Waste ManagementSystem, establishing rigorous waste handling procedures andsafety protocols. Adhering to the principles of reduction, resourceutilization, and harmlessness, it maintains strict control overwaste throughout the entire lifecycle of production, storage,transportation, and disposal. During the reporting period, theCompany recorded no violations related to waste disposal.

Yuwell Medical maintains strict adherence to national and local biodiversity protection laws and regulations, actively fulfilling itscommitments under the UNConvention on Biological Diversity. Biodiversity protection measures are integrated into all stagesof project planning, design, construction, and operation. Prior to project construction, the Company conducts comprehensiveenvironmental risk factor identi?cation and hazard investigations, meticulously observing ecological red line requirements. Duringproject operations, the Company implements continuous environmental monitoring protocols to promptly identify and addresspotential issues, actively engaging in ecological restoration and protection initiatives. Throughout the reporting period, Yuwell Medicalmaintained no production facilities or operational sites within ecological protection areas or regions of high biodiversity value. Noneof its production activities, products, or services had a signi?cant impact on biodiversity.

Biodiversity Protection

Indicator2024

Waste emissions

Non-hazardous waste generated (tons)250.75Non-hazardous waste recycled (tons)206.00Hazardous waste generated (tons)66.45

The Company's hazardous solid waste includes waste ?lter bags, sludge, spent activated carbon from exhaust gas treatment processes, waste?lter cotton, chemical packaging containers, waste mechanical oil, waste emulsions, and oil sludge. A hazardous waste storage facility has beenestablished, equipped with waterproo?ng and anti-leakage measures. All hazardous waste is meticulously classi?ed, temporarily stored, andmanaged by specialized personnel in strict accordance with theStandard for Pollution Control on Hazardous Waste Storage(GB18597-2023).The Company regularly engages quali?ed professional entities to ensure the safe and e?ective disposal of hazardous waste.

The Company's non-hazardous solid waste encompasseswaste metal scraps, metal dust, general packaging containers,and office supply waste. General production solid wasteundergoes thorough collection for recycling, while domesticwaste is systematically collected and regularly removedby local sanitation departments. The Company employsinnovative wireless e-ink screens to display real-time inventorydata, prioritizes emails and electronic ?les to achieve paperlessoperations, and has implemented a consumables requisitionregistration system to minimize waste generation.

Hazardous Waste

Non-hazardous Waste

The Precision Integrated Workshop utilizes cutting-edge production equipment capable of filteringand reusing spent emulsions, potentially reducingwaste emulsion treatment by approximately 30%annually.

The Company collaborates with third-partycomprehensive utilization and disposal units torecycle hazardous waste such as waste cutting?uids, waste emulsions, and waste machine oils,reducing hazardous waste by 10 tons annually.

Waste Management Goal: Reduce pollutantemissions per unit of product by

in 2024 compared to 2023 levels.

2.5%

Comprehensive utilizationrate for general solid waste100%

Waste Management

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

Key Performance TableCorporate GovernanceBusiness Ethics and Anti-corruptionIndicatorUnit20232024

Coverage rate of anti-corruption training%100%100%Average anti-corruption training duration per employeehours26.7Environmental PerformanceEnvironmental ManagementIndicatorUnit20232024

Total investment in environmental protection

million RMB7.024.82Environmental protection training coverage rate%100%100%Environmental incidents throughout the yearcases00

Note 1: In 2023, the Company made signi?cant investments in environmental protection facilities. In 2024, the focus shifted to maintenance, resultingin lower expenditure.Energy Use and Greenhouse Gas Emissions

IndicatorUnit20232024Gasolinetons76.4052.86Dieseltons33.2737.93Natural gasmillion m?0.861.01Purchased electricitymillion kWh34.9239.84Total energy consumption

tons of standard

coal equivalent

5,600.276,368.69Energy consumption intensity

tons of standard coalequivalent/RMB 10,000 revenue

0.00700.0084

Direct greenhouse gas emissions (Scope 1)tons of CO

equivalent2,201.362,456.42Indirect greenhouse gas emissions (Scope 2)tons of CO

equivalent19,916.6921,380.41Total greenhouse gas emissions (Scope 1 and 2)tons of CO

equivalent22,118.0523,836.83Greenhouse gas emission intensity

tons of CO

equivalent/RMB10,000 revenue

0.02770.0315

Note 1: The data is based on guidelines including the Greenhouse Gas Protocol published by the World Resources Institute (WRI) and the World BusinessCouncil for Sustainable Development (WBCSD),ISO 14064-1:2018 – Speci?cation with guidance at the organization level for quanti?cation and reportingof greenhouse gas emissions and removals, andGB/T 2589-2020 – General Rules for Calculation of the Comprehensive Energy Consumptionissued by theState Administration for Market Regulation and the Standardization Administration of China. For Scope 2 greenhouse gas emissions, the emission factor forpurchased electricity is based on theAnnouncement on the Release of the 2022 Carbon Dioxide Emission Factors for Electricity Generation(AnnouncementNo. 33 [2024]) jointly issued by the Ministry of Ecology and Environment and the National Bureau of Statistics. The greenhouse gas emission data presentedin the table is calculated using the location-based method. Under the market-based method, Scope 2 emissions would amount to 18,238.06 metric tons,with an emission intensity of 0.0274 metric tons of CO

equivalent per RMB 10,000 of revenue.

Social PerformanceR&D InnovationIndicatorUnit20232024

Annual R&D investmentmillion RMB504.37546.68R&D investment as a percentage of revenue%6.33%7.23%

Water UtilizationIndicatorUnit20232024

Total water withdrawaltons561,377.9694,019.38Water recycling rate%/5.40%

Customer RightsIndicatorUnit20232024

Customer complaint handling rate%100%100%B2B customer satisfaction rate%96.2%97.2%B2C customer satisfaction rate%97.25%97.7%

Emissions and Waste

IndicatorUnit20232024

Waste emission compliance rate%100%100%Total wastewater discharge

?

tons3,566 2,852Hazardous waste generationtons48.3866.45Non-hazardous waste generationtons245.58250.75Nitrogen oxides (NO

x) tons/0.18Sulfur oxides (SOx) tons/0.02Volatile organic compounds (VOCs) tons/1.12Particulate matter (PM) tons/0.08Note 1: Statistics pertain to Yuwell Medical's parent company.

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

Social PerformanceEmployment

Occupational Health and Safety

IndicatorUnit20232024Employee occupational disease incidence rate%0%0%Health and safety training coverage rate%100%100%

Public WelfareIndicatorUnit20232024Total charitable contributionsmillion RMB42.871.47

Equality and Diversity

IndicatorUnit20232024

Incidents of employee discrimination/harassmentcases00Proportion of female employees in middle andsenior management

%29%31.25%

IndicatorUnit20232024

Total number of employeespersons6,1146,346Number of new hires during the reporting periodpersons1,247 2,368Number of newly recruited fresh graduatespersons68146

Number of employees by genderMale employeespersons3,4823,734Female employeespersons2,6322,612

Number of employees by ageEmployees aged 30 and underpersons1,5861,810Employees aged 31-50persons3,9024,135Employees aged 51 and abovepersons626401Number of employees by hierarchical levelSenior managementpersons135135Middle managementpersons306313Frontline employeespersons5,6735,898Number of employees by educational levelEmployees with bachelor's degree or abovepersons2,0812,501Employees with associate degreepersons1,5591,612Employees with degrees below associate levelpersons2,4742,233Number of employees by regionEmployees from China (including Hong Kong,Macao, and Taiwan)

persons6,0206,234Number of overseas employeespersons94112Employee satisfaction rate%83.6%81.9%

Employee Training and DevelopmentIndicatorUnit20232024

Total investment in employee training

million RMB10.083.20Total training attendancesattendances34,35635,762Total training hourshours171,780223,874Average training hours per employee during the yearhours24.735.28Note 1: Total employee training expenditure in 2023 includes expenses for overseas study programs.

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

Index TableAbout This ReportThis report is the second sustainability report of Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (hereinafter referredto as "Yuwell Medical"). It is prepared in accordance with the principles of objectivity, standardization, transparency, andcomprehensiveness, and presents the Company's philosophy, management practices, and performance in the ?eld of sustainabledevelopment, while fully addressing key issues of concern to stakeholders.

Reporting ScopeThe report highlights the information and key performanceof Yuwell Medical and its subsidiaries in ful?lling governance,social, and environmental responsibilities in 2024.

Source of InformationAll the information and data used in the report are sourcedfrom the Company's o?cial documents statistical reports, andfinancial statements, as well as information on sustainabledevelopment practices of each unit that have been gatheredand reviewed by the responsibility management departmentof the Company. Unless otherwise specified, all monetaryamounts mentioned in this report are measured in RMB.Assurance of Accuracy

The Company assures that this report contains no falserecords, misleading statements, or signi?cant omissions, andis accountable for the authenticity and accuracy of its content.

Access to the Report

This report is published in both print and PDF formats. Theelectronic version is available on the o?cial website of YuwellMedical (www.yuwell.com) and on CNINFO (www.cninfo.com.cn). In our ongoing e?orts to improve our reporting process,we value your feedback and suggestions. Should you haveany questions or suggestions regarding this report, pleasecontact us via email at yuwellzqb@yuyue.com.cn or by phoneat 0511-86900876.

De?nition of TermsFor ease of expression and reading, Jiangsu Yuyue MedicalEquipment & Supply Co., Ltd. is referred to as "Yuwell Medical","the Company" or "we" in this report.

TimeframeThis report covers the period from January 1, 2024, to December31, 2024, with certain content moderately extended to previousand subsequent years. This report is an annual report.Basis of PreparationThis report has been prepared with reference to the GRIStandards issued by the Global Sustainability StandardsBoard (GSSB); theSelf-Regulatory Guidelines No. 17for Companies Listed on Shenzhen Stock Exchange —Sustainability Report (Trial);

theSelf-Regulatory GuidelinesNo. 3 for Listed Companies on Shenzhen Stock Exchange —Preparation of Sustainability Reports (Trial); theEuropeanSustainability Reporting Standards(ESRS); the nationalstandardGuidance on Social Responsibility Reporting

(GB/T 36001-2015); and the United Nations SustainableDevelopment Goals (SDGs).

Reporting PrinciplesThis report adheres to the principles of materiality, quanti?cation,balance, and consistency.

The Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen

Stock Exchange — Sustainability Report (Trial)Disclosure RequirementsCorresponding Section in This Report

Addressing Climate ChangeAddressing Climate ChangePollutant EmissionsStrengthening Environmental Management, Reducing Environmental ImpactWaste DisposalStrengthening Environmental Management, Reducing Environmental ImpactEcosystem and Biodiversity ProtectionReducing Environmental ImpactEnvironmental Compliance ManagementStrengthening Environmental Management, Reducing Environmental ImpactEnergy UtilizationAddressing Climate ChangeWater Resources UtilizationReducing Environmental ImpactCircular EconomyReducing Environmental ImpactRural RevitalizationSafeguarding Life and Health — Supporting Rural RevitalizationSocial ContributionSafeguarding Life and HealthInnovation-Driven DevelopmentEmpowering Health Through InnovationTechnology EthicsEmpowering Health Through Innovation — Technology EthicsSupply Chain SecuritySustainable Supply ChainEqual Treatment of Small and Medium-sizedEnterprises

Sustainable Supply ChainProduct and Service Safety and QualityCommitment to Uphold QualityData Security and Customer Privacy ProtectionInformation Security and Privacy ProtectionEmployeesHuman Capital Development, Protection of Employee RightsDue DiligenceSustainable Development ManagementStakeholder CommunicationSustainable Development ManagementAnti-commercial Bribery and Anti-corruptionAdherence to Business EthicsAnti-unfair CompetitionAdherence to Business Ethics — Anti-Unfair Competition

Voluntary Disclosure IssuesCorresponding Section in This Report

Corporate governanceEnhancing Corporate GovernanceRisk managementEnhancing Corporate GovernanceDigital operationsCommitment to Uphold QualityHealth accessibilityAccess to Quality HealthcareIndustrial cooperation and developmentEmpowering Health Through Innovation, Access to Quality Healthcare

104103

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

GRI Content Index

Reporting FrameworkGRI 1: Foundation 2021

Message from the Chair2-22/2-23About Yuyue Medical2-1/2-2/2-4/2-6/2-16/201-1Sustainable Development Management2-12/2-13/2-14/2-16/2-19/2-22/2-29/3-1/3-2/3-3Steady and Long-Term Progress: Advancing Towards High-Quality DevelopmentEnhancing Corporate Governance2-9/2-10/2-12/2-15/2-27/405-1Adherence to Business Ethics2-27/3-2/205-1/205-2/205-3/206-1Information Security and Privacy Protection418-1Sustainable Supply Chain2-6/3-2/204/308-1/308-2/414-1/414-2

Innovation-Driven Development: Empowering Life Through TechnologyEmpowering Health Through Innovation2-6/2-27/416-1Commitment to Uphold Quality2-6/2-25/2-27/3-2/416-1/416-2/417-1/417-2/417-3/418-1/419-1Access to Quality Healthcare2-23/2-27/203-1/203-2People-Centered Approach: Safeguarding Lives and Empowering PeopleHuman Capital Development401-2/404-1/404-2/404-3Protection of employee rights

2-7/401-1/403-1/403-2/403-3/403-4/403-5/403-6/403-7/403-8/403-9/403-10/405-1/406-1Safeguarding Life and Health3-2/203-1/203-2/413-1Environmental Friendliness: Creating a Shared Green FutureStrengthening Environmental Management3-2/2-27/307-1Addressing Climate Change201-2/302-1/302-3/302-4/302-5/305-1/305-2/305-4/305-5Reducing 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

Statement of Use

This report has been prepared with reference to the GRI Standards by Yuwell Medical. Thereporting period covers January 1, 2024, to December 31, 2024.GRI UsedGRI 1: Foundation 2021

Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.Yuwell Medical stock code: 002223Address: No.1 Baisheng Road, Development Zone, Danyang City, Jiangsu Province, ChinaTel: 86-0511-8690 0876E-mail: yuwellzqb@yuyue.com.cn