CONTENTS
Marching Towards a New Era Accelerating Green and Low-
Management
Energizing Life via Technology Achieving the Value of Life
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Message from the Chairman
The passing of time brings constant renewal and progress. services through the "Yuwell Health Manager" platform among management, we achieved holistic closed-loop management produce charitable short films to bring more warmth and care
The ongoing enhancements in living conditions and the with multiple partners and made significant progress in Moreover, continuous upgrades in equipment technology led to the Jack Ma Rural Teachers Initiative with medical health
increasingly aging population have led to a swift rise in constructing a digital healthcare ecosystem, moving a step an increasing share of green electricity. The comprehensive energy gift packs, and donated nearly 20,000 medical-grade oxygen
healthcare needs and quality expectations. In an era of closer to completing the smart healthcare service loop. By the consumption per unit of product value, greenhouse gas emissions, generators to rural healthcare institutions in central and
accelerated industry transformation, clear advancements end of the reporting period, our digital health services had and energy consumption per unit of output have been effectively western China. Moreover, our staff have ventured into high-
in green and smart technologies are being made. We have covered 200,000 Yuwell health products. Furthermore, Yuwell controlled, with the annual energy management goal being altitude outposts over 5,000 meters above sea level multiple
deeply integrated the concept of ESG into our operational Medical took the lead in drafting and filing the Standards for 100% achieved. We also adopt green innovation principles in our times to deliver high-quality and reliable highland oxygen
development, significantly enhancing our R&D innovations, Data Collection and Application of Home Medical Devices , product development, striving for miniaturization, relentlessly concentrators to residents, aid workers, and stationed troops
actively pushing forward digital and intelligent transformation, significantly enhancing the security of data collection and pursuing compactness, lightweight structures, energy efficiency, in Xizang, all to protect life and health.
and consistently improving product accessibility. This application in home medical devices. and green health-focused designs, committed to delivering
year, we have focused both on foundational growth and environmentally friendly, superior-quality products. Staying grounded and determined, we never forget our initial
breakthroughs, progressing simultaneously in quality Leveraging digital intelligence for efficient operations. aspirations as we tirelessly strive forward. Yuwell Medical will
enhancement and efficiency improvement. Yuwell Medical prioritizes the critical relationship between Driven by talent, moving forward with vitality. Yuwell continue to drive high-quality sustainable growth through its
medical device safety and health. The Company actively Medical focuses on a "consumer-oriented, digitalized, and youth- consistent focus on ESG. In partnership with key stakeholders,
Yuwell Medical has upheld a strong sense of responsibility embraces technological advances and has developed a focused" talent development strategy. We have established the we maintain our ethical standards and push for innovation,
and commitment throughout its development journey. For data-driven, multi-platform, deeply interactive intelligent Yuwell Learning and Development Center to create unique talent confidently progressing towards a new era where economic,
Yuwell Medical, ESG is not an optional task but an essential manufacturing ecosystem, incorporating digital technologies development programs with a product-driven approach. We also social, and environmental benefits are mutually realized.
requirement for achieving high-quality growth on a global scale. into comprehensive business chain management. The collaborate with external professional organizations, and invite
Over the years, we have steadfastly held the vision of leading Yuwell Intelligent Manufacturing Factory is one of the few top industry experts to conduct exchanges and training sessions. Wu Qun,
industry development through innovation and enhancing national-level intelligent manufacturing pilot companies in Through a combination of training and practical learning Chairman and General Manager of Jiangsu Yuyue
the health of millions of families. Our commitment is focused the medical device field, and continually improves its lean solutions and diverse learning formats, we consistently enhance
Medical Equipment & Supply Co., Ltd.
on health and driven by technology, constantly seeking new practices, business efficiency, and product quality through our talent competitiveness. The Company has also developed
pathways and models in ESG development. This commitment automation, informatization, and intelligence. In its ongoing a compensation and benefits system that is both externally
drives our sustainable growth and fuels our efforts to contribute upgrades, the factory has developed the capacity to handle competitive and internally fair, ensuring employee health and
to global healthcare initiatives. This inaugural sustainability complex processes and very high-quality demands, offering well-being. Events like YUWELL DAY promote cultural integration
report released by Yuwell Medical is intended to communicate more competitive health products and services. By harnessing and efficient collaboration, creating a diverse, equal, inclusive,
our profound contemplation and management practices on the power of intelligent manufacturing and digitalization, and warm workplace. Employee satisfaction has consistently
sustainability with the wider community. Our aim is to express Yuwell Medical has established an efficient end-to-end quality improved, earning Yuwell Medical the titles of Best Employer of
our genuine desire to work together in building, innovating, and management system for the entire product lifecycle, along the Year, Outstanding Human Resources Management Award,
sharing a sustainable future. with a comprehensive multi-channel customer service system, and Best Talent-Nurturing Employer in 2023.
which have significantly enhanced customer satisfaction and
Empowering healthcare through innovation. Following product experience. In 2023, the first-time inspection pass rate Embracing responsibility and protecting health. With a
the new strategy of "reshaping medical devices through of these systems reached 99.73%, with customer satisfaction commitment to "alleviating patient suffering and enhancing
innovation," Yuwell Medical puts innovation at the forefront of rates at the B2B and B2C fronts being 96.2% and 98.5% doctors' medical skills," Yuwell Medical persistently explores
its development. We consistently increase investment in R&D respectively. Additionally, the Company has been recognized charitable models that resonate with current times and
and explore new areas and create new advantages through with the Digital Service Management Innovation Award. societal demands. In 2023, the Company invested 42.874
technological innovation, delivering more valuable healthcare million yuan in public welfare, supporting emergency medical
solutions to society. In 2023, the company made significant Rooted in green, committed to environmental friendliness. care, diabetes care, and rural healthcare infrastructure. We
strides by capitalizing on its extensive global research and Yuwell Medical incorporates the principles of green ecology are actively engaged in emergency medical assistance. The
development network and numerous national-level and and sustainability into its operational activities, advocating for Flying Fish Rescue Team, alongside professional race security
provincial scientific platforms. We made breakthroughs in the implementation of the EHS Management System across organizations, has provided free support for over a thousand
critical industry technologies and secured a series of patents all business areas. Attentive to the challenges and prospects global marathon events. The Yuwell Primedic rescue ecosystem
and standards that are at the forefront internationally and that climate change presents, the Company aims to minimize extends across more than 100 countries, saving hundreds
are protected by our own intellectual property. Additionally, its environmental impact while enhancing its competitiveness. of lives annually. We actively collaborate with social media,
we enhanced our product development lineup, making it In 2023, the Company aligned with the ISO 50001 Energy hospitals, and charitable organizations to engage in managing
more robust and comprehensive, thereby increasing our Management System standards to conduct comprehensive energy chronic diseases. Since 2017, we have partnered with the Love
competitive edge against top-tier global products. In the realm management, promoting the construction of a big data platform Save Pneumoconiosis charity organization to support farmers
of intelligent medical solutions, we created an open, enabling for energy management. Through creating a unified system suffering from pneumoconiosis. We also offer free clinics and
platform and significantly extended the reach of digital health that combines data collection, process monitoring, and energy summer camps, establish the Yuwell Diabetic Community, and
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
About Yuwell Medical
Company Profile Corporate Culture
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (referred to as "Yuwell Medical," stock code 002223) specializes in the R&D, Mission and Responsibility
production, sales, and service of medical devices. As a leading comprehensive provider of medical devices and solutions in
Total assets Alleviating patient suffering and enhancing
China, Yuwell Medical is dedicated to offering high-quality, innovative medical products and services to patients and healthcare
doctors' medical skills.
institutions worldwide. billion RMB
Yuwell Medical has always committed itself to the mission of "alleviating patient suffering and enhancing doctors' medical skills," 15.095
with a consumer-centric focus on life and health care. Our products primarily span various fields, including respiratory treatment 11.998
solutions, diabetes care solutions, infection control solutions, home-use electronic testing equipment, as well as in vitro diagnostic 7.966 Core Vision and Objectives
devices, emergency medical devices, rehabilitation devices, and clinical instruments. With our eyes on the vast international Leading industry development through
market, the Company's key strategy is "reshaping medical devices through innovation," which is firmly backed by our strong innovation and enhancing the health of
research and development foundation along with our capacity for technological innovation. On the bedrock of steadily advancing millions of families.
our foundational businesses in blood pressure monitoring, thermometry, traditional Chinese medical devices, and surgical 2019 2020 2021 2022 2023
tools, we especially emphasize expanding in the core areas of respiratory and oxygenation systems, blood glucose and POCT,
and sterilization and infection control. Additionally, we're proactively incubating high-potential fields including emergency care,
ophthalmology, and intelligent rehabilitation, constantly driving industry transformation and continuously contributing to the
Core Values
flourishing of ever more lives.
Integrity as the foundation, customers as
After years of development, Yuwell Medical has prioritized substantial investment in research and development for new products Revenue the core, public spirit as the driving force,
and projects, sustaining a leading position in scientific innovation. The Company has established multiple R&D and manufacturing team as the source of pride, performance
billion RMB
centers in Germany, Shanghai, Nanjing, Suzhou, Danyang, Xizang, Shenzhen, etc. It also boasts several scientific and innovative as the proof.
platforms such as the national enterprise technology center, national industrial design center, and national postdoctoral scientific
research workstation. Through this, the Company has established an extensive global network in R&D, manufacturing, marketing, and
services, with its products receiving widespread recognition. The Company also actively collaborates with medical institutions both 6.726
Philosophy
domestically and internationally, working together to advance the development and progress of the healthcare industry. During the 4.636
reporting period, the main business activities of the company remained consistent. Details regarding the Company's operational and We are convinced that actively managing
financial performance can be found in the Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Annual Report. and foreseeing health issues is the optimal
guarantee for the ongoing enhancement
The total annual revenue reached RMB Our business operations span over
Net profit attributable to Brand Personality
shareholders of listed companies
Mission-driven, eager to help, full of hope,
billion countries and regions around the world
billion RMB scientific and rational.
Brand Proposition
Focused on health, driven by technology
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Sustainable Development Management Stakeholder Communication
Yuwell Medical places great emphasis on the expectations and demands of its stakeholders, maintaining effective communication
with them through a positive and open approach. The Company consistently refines its diverse and regular internal and external
communication strategies to actively address the concerns of all stakeholders.
Sustainable Development Management System
At Yuwell Medical, quality and sustainability are always at the forefront. The Company is committed to refining its systems for Stakeholders Issues of concern Main communication methods
environmental, social, and corporate governance. It amplifies the Board's active supervision and engagement in ESG matters,
• Compliance operations
taking ESG as a critical driving force to enhance compliance management, foster high-quality growth, and boost corporate
• Product quality and safety • Specialized meetings or reports
competitiveness. The Board of Directors, as the governing body responsible for economic, environmental, and social issues,
• Business ethics and anti-corruption • Feedback on policy consultation
participates in and manages the potential impacts and risk assessments of ESG issues on the Company's operational framework.
It supervises and ensures the effective implementation of ESG objectives, strategies, and plans, and guarantees the seamless • Information security and privacy protection • Official visits
integration of ESG strategies into various departments and key business processes. Please refer to the section "Strengthening Government & management • Compliance regulatory inspections
Corporate Governance / Board Diversity" in this report for information on the Board's expertise and capabilities in overseeing Regulatory Authorities • Environmental management • Active participation in government
strategies and systems related to ESG impacts, risks, and opportunities. • Support for local development (including rural programs
revitalization)
The Company utilizes quantitative metrics to assess the efficacy of its ESG management strategies and is gradually integrating
• General meeting of shareholders
these ESG indicators into the evaluation criteria of its compensation system. During the reporting period, the Company organized
specialized ESG training, covering topics such as ESG trends and requirements, key points for advancing ESG issues, and ESG • Compliance operations • Financial reports and announcements
information disclosure. This training is designed to improve employees' comprehension and awareness of our ESG initiatives, • Innovation and high-quality development • Investor hotline
thereby better facilitating the implementation of ESG practices. • Business ethics and anti-corruption • Roadshow
Shareholders & • Consistent and stable returns • Investor exchange meeting
Investors • Investor relations • Company visits
• Media interaction
The supervisory body
• Product quality and safety • Customer satisfaction survey
Take full responsibility for supervising ESG issues and ensure their efficiency • Innovation, low-carbon products and services • Professional customer service team
• Customer service management • Exchange activities
Board of
• Business continuity • User training
Directors Customers
• Information security and privacy protection • Media interaction
The management team • Compliance operations • Supply chain audits and training
The executive • Business ethics and anti-corruption • Communication and exchange
Recognize and manage ESG risks and opportunities management team
• Responsible supply chain (high-level exchange visits, supplier
Determine the significance of ESG issues and integrate them into Partners • Information security and privacy protection conferences, industry conferences, etc.)
Office of the Board of
business considerations • Industrial cooperation and exchange • Open cooperation
Directors (coordinating
Oversee the implementation of ESG strategies ESG work) • Employee activities and communication
• Talent introduction and retention • Employee training
• Employee rights and benefits • Performance evaluation and feedback
The executive team ESG working group • Occupational health and safety mechanism
Employees • Employee training and development • Internal information communication
Develop dedicated ESG plans and carry out
• Diversity and equal opportunities platform
specific ESG initiatives Relevant functional and business departments and
• Employee grievance channels
subsidiary companies
Regularly monitor and report ESG indicators
• Compliance operations
• Product quality and safety
• Media interaction
• Innovation, low-carbon products and services
• Inclusive products
• Green operations
Public and • Public welfare programs
• Public welfare and charity
Community • Medical assistance services
• Support for local development (including rural
revitalization)
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
ESG Issue Management
Yuwell Medical attaches great importance to deeply integrating its long-term corporate development strategy with the concept
of sustainable development. The Company strictly follows a detailed process for analyzing material issues, which is grounded
in international authoritative guidelines and regulatory disclosure instructions. We have drawn upon widely recognized
Very important
international ESG benchmarks, rating entities, and peer company ESG concerns to establish a roadmap for "issue identification -
High
importance assessment and ranking - issue confirmation and reporting," leading to the creation of the Yuwell Medical 2023 ESG 15 Important
Material Issue Research Questionnaire. By adhering to the "double materiality" principle, we evaluate the significance of this
Less important
year's ESG issues based on their importance to both the Company's development and to our stakeholders. We identify key issues 16
of high materiality to prioritize in our report, and continually improve our ESG management to better meet the expectations 17
and demands of our stakeholders. As the top decision-making body responsible for managing economic, environmental, and 22
social issues, the Board of Directors is in charge of assessing and overseeing the impacts, risks, and opportunities related to 18 9 Environmental
sustainable development. The relative importance of these issues is disclosed in the report after they have been reviewed and 10 2 21 Social
approved by the Board. 12
Importance to stakeholders
The ESG issues checklist was developed based on an analysis of internal and 4
external development trends, with a focus on issues of common concern to 20 3
internal and external stakeholders. The report framework includes references
to sustainable development guidelines by stock exchanges, IFRS Sustainability
Issue Identification Disclosure Standards by ISSB, and standards set by the Global Reporting Initiative
(GRI), among others. It also considers mainstream ESG rating systems, such as 11
MSCI ESG Ratings, and sustainability issues of interest to peer companies.
Low Significance of impact to Yuwell Medical's business High
We conduct issue research among key internal and external stakeholder groups, No. Topic No. Topic
Materiality determining the priority of ESG issues based on the "double materiality" principle. 1 Compliance operations 14 Intellectual property protection
Assessment and
Prioritization
We review the screening and analysis outcomes to verify the significance of
Issue Recognition issues with a high degree of impact. For these critical ESG issues, the report
circular economy 23 Industrial cooperation and development
and Report focuses on disclosing related management, practices, and performance.
Generation
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Efficient Governance:
Marching Towards a New Era of
High-Quality Development
Proportion of female directors
Anti-corruption training coverage for key positions
Information leakage incidents
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Strengthening Corporate Governance
Standardized Governance Investor Rights Protection
Yuwell Medical strictly adheres to the requirements of the Company Law of the People's Republic of China , the Securities Law of the Yuwell Medical strictly adheres to the requirements of the Securities Law of the People's Republic of China , the Measures for the
People's Republic of China, the Corporate Governance Guidelines for Listed Companies , and other relevant laws, regulations, and Administration of Information Disclosure by Listed Companies , the Provisions on the System for Registration and Management of Insiders
guidelines, as well as the standards set forth in the Articles of Association. The Company has established a corporate governance Who Have Access to Insider Information of Listed Companies, and other relevant laws, regulations, and normative documents, ensuring
structure composed of the General Meeting of Shareholders, the Board of Directors, the Supervisory Board, and the senior that information disclosure is conducted in a truthful, accurate, comprehensive, and prompt manner. During 2023, the Company released
management team. This structure ensures the powers of the authorities, decision-making bodies, supervisory bodies, and executive 54 announcements regarding the General Meeting of Shareholders, Board of Directors, Supervisory Board meetings, routine reports, and
bodies are clearly defined, coordinated, and balanced, thereby consistently enhancing the Company's governance level. In 2023, the and significant matters, guaranteeing equal access to information for all shareholders. During the reporting period, there were no false
Company successfully completed the addition and revision of 10 management regulations. The General Meeting of Shareholders, records, misleading statements, significant omissions or other improper disclosures in the Company's information disclosure. We also
the Board of Directors, the Supervisory Board, and the senior management team followed stringent standardized operational rules keep a close eye on the public opinion environment and market trading conditions to effectively protect the legitimate rights and interests
and internal procedures for management decision-making and operational oversight. For detailed information on the Company's of investors through fair information disclosure.
governance, please refer to the Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Annual Report.
Yuwell Medical highly prioritizes investor relations management. In compliance with regulations such as the Investor Relations
The General Meeting of Shareholders is the Company's authoritative body, legally vested with decision-making powers on major Management System , we standardize procedures for convening, conducting, discussing, and voting in shareholders' meetings. We
issues such as corporate policy, investment, and profit distribution. The Board of Directors is accountable for the General Meeting of persistently enhance diverse investor communication channels and actively conduct investor relations management activities, effectively
Shareholders and serves as the Company's operational decision-making core. The Board also comprises four specialized committees: promoting interaction and mutual trust between the Company and investors. The Company sincerely considers feedback and suggestions
the Strategy Committee, Audit Committee, Nomination Committee, and Compensation and Evaluation Committee. These committees from shareholders and potential investors, provides timely answers to their inquiries and fosters a positive interaction environment for
decide on specific matters within the scope authorized by the Board, and provide professional advice and recommendations for investors. We treat all shareholders equally. Small and medium shareholders can attend the General Meeting of Shareholders in person
the Board's decision-making. Independent directors constitute the majority and hold the chair positions in the Audit Committee, or cast their votes online. For major issues that may affect the interests of these investors, the Company counts and discloses their votes
Nomination Committee, and Compensation and Evaluation Committee. The chairperson of the Audit Committee is an accounting separately. The time and location of the general meetings are chosen to maximize shareholder attendance. We also utilize modern
professional. The Supervisory Board, as a supervisory body, is accountable to the General Meeting of Shareholders, and effectively information technology to increase shareholder participation in the meetings, ensuring that all investors, especially small and medium
oversees the Company's finances as well as the legality and compliance of the Company's directors and senior management in shareholders, are informed and involved in significant company decisions. We engage with investors through platforms like cninfo.com,
performing their duties, so as to protect the legitimate rights and interests of the Company and its shareholders. fully listening to the opinions and demands of small and medium shareholders and promptly responding to their concerns. We diligently
answer the investor hotline, achieving a 100% response rate on cninfo.com.
To adhere to regulations such as Measures for the Administration of Independent Directors of Listed Companies , the Company has
established the Specialized Meeting System for Independent Directors . Additionally, we meticulously convene and hold shareholders' As we concentrate on our corporate progression, we steadfastly maintain an investor-centric approach. From the commencement of
meetings in strict accordance with the Rules for the Shareholders' Meetings of Listed Companies and the Company's Rules of our public listing, we've adhered to a steadfast and enduring cash dividend strategy, as stipulated by the Articles of Association , with the
Procedure for Shareholders' Meetings , and hold meetings of the Board of Directors and the Supervisory Board in accordance with goal of sharing the fruits of our development with our investors. The Board of Directors formulates a profit distribution plan based on the
the Rules of Procedure for the Board of Directors and the Rules of Procedure for the Supervisory Board. Furthermore, The Company Company's annual operating performance, which is then submitted to the shareholders' meeting for review, ensuring that the legal rights
strictly adheres to the relevant provisions on voting matters and voting procedures, protecting the legitimate rights and interests of of all shareholders, particularly those of small and medium investors, are fully protected. For detailed information on the protection of
the Company and its shareholders. Throughout 2023, 3 shareholders' meetings were held, with 15 resolutions approved; 11 board shareholders' and creditors' rights, please refer to the Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Annual Report.
meetings were held, with 40 resolutions approved; and 8 supervisory board meetings were held, with 15 resolutions approved.
Furthermore, 7 Audit Committee meetings, 1 Strategy Committee meeting, 3 Remuneration and Evaluation Committee meetings, and
Board Diversity
Board diversity is a crucial element in supporting the Company in achieving its strategic
General Meeting objectives and sustainable growth. To ensure the scientific and effectiveness of Board
of Shareholders decision-making, Yuwell Medical endeavors to encourage diversity within the Board in
terms of gender, culture, education, professional capabilities, and beyond. The Company
currently has 9 members on the Board of Directors, including 4 female directors.
Supervisory Board Audit Committee
Among them, 6 are non-independent directors, and 3 are independent directors. Board
members possess extensive expertise and practical experience across diverse fields
Nomination Committee such as biotechnology, medical devices, risk management, financial accounting, law,
Board of Directors and finance, reflecting the Board's balance concerning gender, experience, background, Proportion of female directors
and professional skills. The Audit Committee includes one independent director with a
Remuneration and
Evaluation Committee professional accounting background, along with several directors who have extensive
experience in risk management, including the development of risk control systems
Strategy Committee and risk management regulations, as well as handling and mitigating significant risk
incidents. Their expertise effectively helps the Company identify risks, make sound risk
The Management Team
decisions, and counteract and resolve risks.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
In 2023, Yuwell Medical revised its Independent Director System and the Working Rules of the Nomination Committee of the Board of Risk Management Structure
Directors. The nomination of Board members goes through a rigorous selection process. The Nomination Committee takes diversity into
account and thoroughly evaluates potential candidates on a range of professional criteria, including their educational qualifications, The Board of Directors and its Audit Committee are collectively responsible for the overall management and supervision of a wide
industry experience, specific competencies, professional knowledge, and work history, to uphold a properly diversified and balanced range of risks. The Audit Committee is responsible for supervising and evaluating the operation and implementation of the internal
composition of the Board's capabilities, skills, experiences, gender, age, and cultural and educational backgrounds. The Company also gives audit system and the internal control system to secure effective risk management, and keeping abreast of the work progress of
significant importance to the personal reputation of Board members in terms of ethical behavior and leadership. After the nomination of such external audit organizations as accounting firms and national audit authorities. The Board of Directors authorizes other
the independent director candidates is approved, it must be submitted to the Shenzhen Stock Exchange for review of qualifications and committees to work on specific tasks of risk management in their respective areas of expertise. As a risk supervision department
independence. Following approval, the General Meeting of Shareholders will proceed with elections using a cumulative voting method, independent of other business functions, the Audit Department of the Company is responsible for conducting day-to-day
which aims to consistently improve the level of corporate governance and decision-making skills. supervision on an ongoing basis and securing effective risk control through the audit mechanism. Where necessary, an external
third party will be engaged to perform an independent audit.
The Company promotes the involvement of its Board members in various professional skill enhancement and compliance training
programs, effectively boosting their awareness of compliance and ability to fulfill their duties. During the reporting period, the Board Risk Identification and Response
members participated in specialized training focused on corporate governance and reforms to the Independent Director System. They
engaged in thorough learning sessions covering interpretations of reforms to the Independent Director System for Listed Companies, Yuwell Medical constantly strengthens the identification of and response to risks and strictly standardizes its business management
regulatory requirements for information disclosure, and relevant case studies. processes, in order to enable a standardized whole-process management and control of risk assessment, control confirmation,
defect rectification and implementation in its global core business sectors. We are also committed to promptly identifying and
evaluating the sources of risks associated with the Company's operations, while improving and supervising matters closely related
Professional Capacity to the Company's operations, such as investment risks, business risks, operational risks, and sustainability-related risks. These
Type Name Gender closed-loop management efforts improve the Company's risk prevention and control capabilities. Meanwhile, the Company
Industry Risk Financial
Law incorporates material ESG risks and opportunities into its risk review and business planning process, and takes them into full
Experience management accounting
consideration in its operational and financial planning. This helps the Company better manage or mitigate risks and locate growth
Chairman, General and restructuring opportunities.
Wu Qun Male
Manager
Risk Training
Director, Deputy
Zhao Shuai Male
General Manager Yuwell Medical is keen to foster a culture of risk management. By offering risk-related training and advocacy, we aim to enhance
employees' awareness of internal control risks and strengthen their internal control management capabilities. This will ultimately
Director Wang Lihua Female
shape a risk-prevention pattern engaging the entire workforce and help constantly improve its standardized operation level.
Director, Deputy Zheng Moreover, the Company expressly requires all its departments to keep abreast of new regulations and policies, before initiating
Male
General Manager Hongzhe relevant researches in a timely manner. Where necessary, external specialists will be engaged to deliver in-depth briefings and
training, so as to minimize the potential risks to a tolerable level.
Chen
Adherence to Business Ethics
Director Male
Jianjun
Director, Board
Wang Ruijie Female
Secretary
Independent Director Yu Chun Female
Strengthening the Committed to the core value of "integrity as the foundation," Yuwell Medical strictly complies
with the Company Law of the People's Republic of China , the Anti-unfair Competition Law of
Defense Line of the People's Republic of China , the Anti-monopoly Law of the People's Republic of China, the
Business Ethics
Independent Director Wan Suiren Male
Anti-money Laundering Law of the People's Republic of China , and other laws, regulations
Zhong and industry practices. Based on this, we have put in place and consistently improved our
Independent Director Female business ethics and anti-corruption management system, and enhanced compliance and
Mingxia
business ethics training and cultural development, while standing against any form of fraud,
commercial bribery, and similar misconduct. During the reporting period, no major litigation
Risk Management and Internal Control cases involving corruption or unfair competition were filed against Yuwell Medical.
A robust internal control and risk management system ensures sound corporate governance. During the reporting period, Yuwell Signing rate of Anti-commercial Bribery Anti-corruption training Anti-corruption training
Medical strictly observed the Company Law of the People's Republic of China, the Audit Law of the People's Republic of China, the Statement by suppliers, regular distributors coverage for key positions hours per employee
Basic Norms for the Internal Control of Enterprises , and their supplementary guidelines, as well as the relevant internal control and partners of the parent company of
regulatory requirements of the China Securities Regulatory Commission (CSRC) and the Shenzhen Stock Exchange (SZSE). Taking Yuwell Medical
into account the reality of the Company and the characteristics of the medical device industry, we have consistently promoted
the development, evaluation and supervision of our internal control system, and ensured its effective operation to facilitate
the Company's sustainable and sound operation. We have also put in place a holistic internal control and necessary internal
supervision mechanism across our corporate governance structure and business operations.Working Rules of the Nomination
Committee of the Board of Directors
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Business Ethics Management Case
Domestic Marketing Center Division Conducts "Clean Environment Campaign"
Yuwell Medical has established an effective business ethics and compliance management framework globally. Within this
framework, the Board of Directors is the supreme decision-making body for business ethics and anti-corruption management,
In December 2023, Yuwell Medical's Domestic Marketing Center Division launched the "Clean Environment Campaign," designed
while the Audit Committee and the Supervisory Committee under the Board of Directors serve as supervisory organizations in
to enhance the integrity and anti-corruption awareness of marketing staff. The campaign reinforced the compliance requirements
charge of overseeing and regulating the implementation of the business ethics management systems and the fulfillment of duties,
for business interactions between marketing employees and distributors, clarified the Company's guidelines on monetary-related
supporting the high-quality development of the Company. As a primary independent department of the Company, the Supervisory
economic activities, and highlighted national legal provisions related to crimes like embezzlement and bribery by non-public officials,
Committee is responsible for formulating systems related to business ethics and anti-corruption, reviewing major compliance and
including sharing relevant case studies. The initiative aimed to strengthen business compliance between the Company's marketing
business ethics matters of the Company, and conducting supervision efforts from time to time. The Supervisory Committee is also
employees and distributors, as well as compliance and legality of the marketing employees' sales behaviors in an all-around way.
in charge of evaluating compliance and business ethics risks, investigating corporate corruption incidents, and reporting directly
to the Chairman. Additionally, it actively responds to the latest national and industry policies on compliance and business ethics, Supply Chain Integrity Management
enhancing its oversight capabilities in these domains.
Yuwell Medical constantly promotes compliance and business ethics management among its partners to collectively build a clean and
Yuwell Medical has formulated and consistently improved its business ethics management systems applicable to all its operations transparent supply chain. Before entering into an official partnership, we require all suppliers to sign an Anti-commercial Bribery Statement
and functions. These include the Code of Conduct for Integrity in Business Practices, Yuwell Medical Statement on Anti- and related confidentiality agreements. This policy covers 100% of our key suppliers, including our headquarters suppliers, regular
commercial Bribery, Yuwell Medical Declaration Management System for Employee Conflicts of Interests, Yuwell Medical Surrender distributors, and logistics partners. We also require our suppliers to comply with national and local laws and regulations, policies and
Management System for Gifts and Cash as Giving , and Yuwell Medical Management Measures for Supervision . In doing so, industry standards, and not to commit or tolerate any form of corruption, fraud, extortion or embezzlement, ensuring a fair, transparent
requirements on anti-fraud, anti-money laundering, anti-corruption, anti-bribery, fair competition, anti-monopoly, and anti-conflict and clean environment for cooperation. We maintain a zero-tolerance policy for commercial bribery and will immediately dismiss and
of interest are applied to the Company's directors, all its employees (including part-time employees), as well as to its headquarters' permanently bar any employee who violates the relevant regulations. For partners who violate the relevant provisions, we will immediately
supply chains and distributors. These standards are also progressively extended to suppliers, distributors, and other customers of terminate the partnership and pay liquidated damages upon verification. These efforts have comprehensively strengthened the supervision
our subsidiaries, thereby comprehensively strengthening the defense line of business ethics across all areas. and control of business ethics in the process of cooperation between the Company's relevant departments and suppliers.
After giving reasonable notice, the Company requests suppliers to cooperate in conducting on-site or unannounced reviews to ensure
Business Ethics Audit ongoing monitoring of supply chain compliance and business ethics risks. If any misconduct or violation is found during the review process,
we will immediately terminate the cooperation and take strict disciplinary action against the in-house employees. In 2023, the Company
Under the framework of business ethics management systems, the Supervisory Committee and the Audit Department occasionally
conducted reviews on business ethics and anti-corruption for 52 suppliers, and delivered a briefing on the Anti-commercial Bribery
conduct audits and inspections of the implementation of systems and business ethics risks in various business scenarios, and
Statement and whistleblowing channels.
regularly communicate the audit results, material audit findings, and matters of concern to the Audit Committee of the Board
and the Chairman directly. The Supervisory Committee and the Audit Department maintain independence at the organizational,
operational, and individual levels. In addition, the Company conducts an annual review of the effectiveness and compliance of the Standardizing Whistleblowing Management
operation of the internal control system and actively manages potential business ethics risks in the course of operations.
With a zero-tolerance attitude towards corruption and other behaviors that violate business ethics, Yuwell Medical has formulated
The Supervisory Committee and the Audit Department constantly conduct relevant special audits based on the reality, the the Yuwell Medical Management System for Whistleblowing , set up various whistleblowing channels, and encouraged the Company's
Company's control requirements and the audit plan formulated by the department, so as to enhance the risk control of core employees, suppliers, distributors, and other stakeholders to whistleblow openly or anonymously via mail, hotlines, and other methods.
business scenarios. At the same time, we have formulated a continuous improvement scheme based on the audit results to ensure We aim to engage all employees, suppliers and partners in a system of supervision of integrity and honesty in the performance of our
the effective operation of the Company's business ethics and anti-corruption policy and compliance system. Additionally, we have duties, so as to promptly and effectively address any existing or potential violations of the Company's code of ethics, policies, and laws.
signed anti-corruption agreements with our business partners and set up external whistleblowing channels to identify and prevent
ethical business risks in the business process. As a dedicated department for handling complaints, the Supervisory Committee reports directly to the Chairman of the Board, ensuring
the independence and objectivity of its work in handling and supervising complaints. In the event that the existence of corruption is
determined, strict and appropriate measures will be taken in accordance with the severity of the situation. Yuwell Medical promises
Business Ethics Training to keep the personal information of the whistleblower and the provided information strictly confidential, with a dedicated employee
handling the clues and documents and managing them strictly based on their classification level. The Company has explicitly stated that
Yuwell Medical endeavors to foster a clean culture. We have put in place a compliance and business ethics training system for all our
the personal information of the whistleblower and details about the handling of the complaint must not be disclosed to the accused or
employees, including but not limited to compliance training for new recruits, integrity and compliance training for functional employees,
to individuals unrelated to the complaint process. While keeping the confidentiality of the whistleblower's information, the Company is
and promotion of the Code of Conduct for suppliers. These efforts are aimed at persistently enhancing the awareness of compliance and
serious about cracking down on any retaliation and will take serious action upon substantiation. In response to any serious threat to the
anti-corruption among all our employees, thereby preventing incidents of corruption, fraud, and other regulatory violations.
rights and interests of whistleblowers, we will promptly notify the judicial authorities and seek legal action against offenders.
Supervision Department, Yuwell Science and Technology
During the reporting period, Yuwell Medical delivered Training coverage of sensitive and Mailing address for whistleblowing Center, No. 1 East Huanyuan Road, Xuzhuang Software
important positions Park, Xuanwu District, Nanjing City, Jiangsu Province
business ethics.
Whistleblowing
and Complaints
Hotline for whistleblowing
E-mail for whistleblowing
jubao@yuyue.com.cn
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Full Supply Chain Customer-centric Business Chain
Coordinated Coordinated Management System
Management Full Lifecycle Coordinated Management
Business Chain Production & Sales Synergy Platform, APS Planning & Execution Platform, Intelligent WMS (Warehouse
Customer satisfaction
Coordinated Management
IPD development process
Management System), Cloud Platform & Distribution System "One Product, One Code" Platform, "02P&SG"
Customer needs
PLM R&D management platform
Platform, Big Data Platform, ERP (Enterprise Resource Planning) Management System
Customer-centric whole-chain coordinated
management is the core strategy of Yuwell
Medical's operations. Under this strategy, we Design and R&D Procurement Production Sales After-sales
employ a customer-oriented approach to integrate
customer needs into the entire business chain from
product design, R&D, production, and sales to after-
sales service. Backed by a well-organized process
Full lifecycle quality management
mechanism and compatible management system,
Customer complaints and feedback
performance indicators, incentive packages, and
team building, we exercise stringent product
quality and risk management throughout the full Digital and intelligent production and marketing system
product lifecycle. In doing so, we aim to deliver
high-quality products that are satisfactory to our
customers, enhance our market competitiveness, Design R&D Procurement Production Sales After-sales
and lay a solid foundation for the sustainable
development of the Company in the long run.
Utilizing the cross-departmental integrated product development We bring in product In line with client demand We have built a We collocate sales We have established a
system (IPD process), we have created a complete end-to-end lifecycle management and manufacturing production and information in real- cross-departmental and
Empowered by automation, digitalization
design process. In the early stage of product development, we toolkit (PLM system) realities, we have marketing synergy time to enable access fully coordinated user
and intelligent technologies, the intelligent
conduct user demand research and pain point analysis, while to further optimize implemented centralized platform to achieve to the stream of experience optimization
manufacturing system of Yuwell Medical applies
the user research team conducts offline qualitative research and and localize R&D work. procurement and supply interconnectivity sales data of Yuwell mechanism. Focusing
to all processes from demand planning, R&D
online quantitative research on real users, delivering the research We also strengthen chain management to among full chains products, forming a on the dimensions of
and design, raw material sourcing, production
findings back to the design team. During the functional prototype the effectiveness of ensure the quality and including sales, data channel from user experience like
execution, warehousing management, logistics
stage, usability testing is conducted to verify whether the demand cooperation between stability of raw material planning, production, production to users. product experience,
and shipping, as well as after-sales service. Driven
points and pain points identified earlier have been resolved in R&D and other functional supplies, providing a and supply chains. We logistics experience, and
by a system enhancement system and digitization,
the new design. We then propose improvements for the existing departments to improve strong guarantee for the also follow up on the marketing experience, we
we have efficiently connected the front and back
problems, forming a closed loop of product design optimization. the reliability and production process. customer's demand in regularly collect various
ends of our production lines and integrated and
predictability of R&D real-time and build an types of user feedback
optimized the resource allocation of each link. This
We implement a market-centered design strategy that incorporates projects. The market- and We have upgraded intelligent production and routinely generate
enables us to put ourselves in the shoes of users
all factors of the sales chain into the design process. By fully customer-oriented business inventory management workshop. product experience
to address their fundamental needs for products,
considering the cost constraints of different product tiers, we planning, product planning technology and set up feedback reports for each
and conduct R&D and design geared to a full
ensure an optimal balance in the selection of materials, processes, and other activities enable an intelligent warehouse category. We also facilitate
lifecycle. Based on these, we constantly improve
and components. This approach guarantees a superior user R&D to be conducted in management system collaboration among
the level of chain-wide synergistic management
experience while continuously enhancing product competitiveness a manner that aligns as (WMS) to enable real-time the R&D, product, and
and lean management to make it possible for
across the entire value chain. closely as possible with the inventory tracking and marketing departments to
interconnectivity and flexible adjustment, so
needs of users. For more predictive analysis. Such improve user experience.
that the Company can deliver more competitive
information, please refer a dynamic management
products and services.
to the section "Innovation mechanism ensures that
and R&D System" in the the inventory level meets
chapter "Leading with the demand without
Innovation: Energizing Life causing excessive
via Technology." inventories.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Digital and Intelligent Transformation
Yuwell Medical is rapidly advancing a comprehensive digital strategy that is structured, forward-thinking, and interconnected. We
have developed an omni-process digital application platform and an efficient and flexible digital technology support system, so
that digital technologies can be applied to the full business chain synergistic management. We also make use of digitally intelligent IT (Information Technology) DT (Digital Transformation) BT (Business Transformation)
aids to constantly improve the service and management of health products, fully stimulate the integration of the digital economy
and industry, and vigorously push forward the change of digital operation.
Our IT strategy enables online Through the DT strategy, we Supported by our self-dependent
business operations, basic consistently collect real data R&D platforms across the board,
statistics and aggregation, and enhance the process, we are able to bridge the data
Yuwell Intelligent Manufacturing Factory was recognized as the national Yuwell Medical won 1 Masterpiece Award and display and analyze business
error-free data transmission, flow between systems, forecast
"Intelligent Manufacturing Pilot and Demonstration Factory" 1 Bronze Award at the Design Intelligence issues and make preliminary
partially online management, and analyze algorithmic models,
in 2021. It is one of the few national intelligent manufacturing pilot warnings, helping increase the
and after-action tracking and and perform operations and
enterprises within the medical device industry. proportion of self-dependent
feedback. iterations on a regular basis.
research platforms.
Case Yuwell Intelligent Manufacturing Factory
Formed based on the intelligent processing units, production lines, and intelligent testing equipment in the physical workshop, Intelligent WMS Human-robot Collaboration-driven Flexible Intelligent
Yuwell Intelligent Manufacturing Factory exchanges data with the virtual workshop through sensors, industrial buses, industrial Production Line at Product Assembly Workshop
The intelligent WMS employs advanced PLC-integrated
Ethernet, and other means of linkage. Each type of production line and system in the virtual workshop is equipped with appropriate
modular auto control technology and is closely integrated It mainly consists of multi-model sensors, human-robot collaborative
control and monitoring equipment, enabling end-to-end, intelligent, closed-loop quality management and traceability. This allows
with the flexible processing and assembly production lines, robots, flexible chain conveyor lines and an auto control system.
product manufacturing to be driven by comprehensive three-dimensional digital design and manufacturing information flow.
which enables the fully automated handling of raw material As a flexible and intelligent operation mode, this system allows all
Yuwell Intelligent Manufacturing Factory consists of six types of flexible production lines, machining and SMT lines, and workshop
reception, storage, transportation, processing, operations, equipment to communicate with the control system of the upper
intelligent three-dimensional warehouses, enabling mixed-line production of multiple varieties, self-diagnosis of faults, alarms for
and the storage, delivery, production and shipment of production line, thereby significantly improving the production
production anomalies, and online data acquisition. In this way, the factory has created a new intelligent and flexible production
finished products. efficiency and product quality.
model that meets the flexible production needs of various models and specifications across different scenarios.
Robot-driven Flexible Intelligent Manufacturing Integration System at Machine Processing Workshop
The advanced computer control system, new sensor technology, and intelligent component integration technology have enabled
automated loading, processing, and molding of raw materials as well as unloading and warehousing of finished products.
Interfaced with the Company's production management software, it allows for real-time coordination and feedback on production
scheduling and planning, which greatly improves production efficiency and equipment utilization rate.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Sustainable Supply Chain
Supplier Full Lifecycle Management
A high-quality, resilient and sustainable supply chain is crucial to the sound development of the Company. Yuwell Medical strictly
Supplier Evaluation & Audit
abides by the Bidding Law of the People's Republic of China, Regulation on the Implementation of the Bidding Law of the People's
Republic of China, and other relevant Chinese laws and regulations. Based on these laws and legislations, we have developed Yuwell Medical applies categorized and tiered management of suppliers. Depending on the products and services provided by
internal management systems and processes such as Supplier Management Control Procedures , so as to constantly improve our suppliers, we categorize them into material suppliers, storage and transportation suppliers, IT service providers, etc. Based
the management of the full lifecycle of suppliers and thoroughly regulate the whole process involving supplier selection and on this, we have formulated separate management requirements and standards, and defined standard working procedures for
admission, evaluation and audit, and exit. This enables a fair, just, and transparent procurement environment within the supply supplier selection, auditing, and signing of the Procurement Framework Agreement . Following these categorization and tiering
chain. Moreover, we have sustained efforts to optimize our supplier resources, with a view to building a high-quality and resilient principles, we have established a strict annual audit plan for all admitted suppliers, according to which we perform qualification
supply chain. reviews and on-site audits every year, and issue and distribute the Supplier Evaluation Form . We undertake regular monitoring
and all-round review and appraisal for suppliers in terms of their qualification, fulfillment, product quality management, social
and environmental impacts, and so on. According to the audit results, we give feedback on the problems to suppliers in a
timely manner, guide and supervise the suppliers to make corrections in response to the problem lists, and assist them to make
Number of suppliers with Number of suppliers with Number of suppliers with improvements. To do so, we aim to ensure that suppliers operate their business in a safe and compliant manner.
quality management system environmental management occupational health and safety
certification system certification management system certification
Supplier Selection and Admission Material Supplier Audit Requirements
Yuwell Medical constantly develops and introduces high-quality suppliers. We have established multi-dimensional standards for
supplier admission, investigating and screening suppliers based on their supply delivery abilities, financial risk capacity, quality Suppliers are categorized into Conduct quarterly supplier performance evaluations and audits to examine the
assurance, and R&D technical skills. We have also established a cross-departmental collaboration mechanism to conduct a A, B and C tiers based on the quality of goods they provide. Suppliers that underperform must undertake root
comprehensive evaluation of supplier admissions, effectively incorporating core elements such as financial health, quality systems, role of their materials in the cause analysis and corrective and preventive measures.
and environmental safety into the supplier evaluation system, which ensures that sustainability requirements are integrated into final product, the complexity
the daily management of our supply chain. of their integration into the Develop a supplier audit plan each year to perform system evaluations on raw
production process, their material suppliers from the Qualified Supplier Directory, assigning them to A, B,
Survey Elements for Supplier Selection and Admission impact on product quality or C grades based on the assessment.
and safety, and the test
results of audit samples.. Suppliers of category A are subject to a system audit every five years. According
Occupational health & safety, information security protection, environmental protection,
Supply Delivery Abilities to the annual audit plan, suppliers of categories B and C will receive a Supplier
procurement & suppliers, delivery management, warehouse & transportation management
Review Form for self-review and written evaluation, with on-site audits
conducted when necessary.
Financial Risk Capability Asset quality indicators, profitability indicators, internal control management
Supplier Exit Mechanism
Quality Assurance Quality management system, manpower training, equipment management, quality
Yuwell Medical has set up a supplier exit mechanism at each stage of the supplier management process to strictly regulate the
Capability management, supplier management, warehouse management
performance of suppliers. After the selection and admission process, we conduct trial-production evaluations of the materials
provided by the new suppliers, and eliminate those suppliers who fail in trial-production three times. At the annual audit stage,
suppliers of category B are required to make improvements within a specified time frame. Those suppliers who remain unqualified
R&D Technical Skills Technological reserve, R&D design, new product introduction, engineering management
after the re-audit will be disqualified. For suppliers of category C, immediate disqualification will be imposed on them. During the
quarterly performance evaluations, suppliers who receive a C rating three consecutive times are stripped of their supplier status.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Supply Chain Risk Control
Yuwell Medical has incorporated sustainability requirements into its supply chain management system. The Company not only In addition, we have implemented a supplier audit procedure. Each year, we formulate a supplier audit plan and conduct thorough
focuses on the quality of products and services, but also on the performance of suppliers in labor management, occupational audits covering aspects such as quality management systems, product design and development, material and supplier management,
health and safety, integrity and compliance, environmental protection, etc. and issues the Supplier Social Responsibility Audit manufacturing process management, change management, non-conformity control, improvement and after-sales, as well as
Report upon audit. Every year, we comprehensively identify, carefully assess, closely monitor and effectively control the risks that hazardous substance management. We ensure product quality and safety through closed-loop management that includes supplier
may arise in the supply chain, including ESG risks. With quality risk as the focal point of management, we constantly improve audits, incoming inspections, performance evaluations, and continuous improvement. The Quality Department and other relevant
the ESG management system and strictly control the procurement process and the full lifecycle of suppliers, so as to build a departments review and analyze the supplier quality audits and evaluations, implement corrective actions and secondary acceptance
competitive, resilient, and sustainable supply chain. for issues identified during audits, and provide quality training, targeted guidance, technical cooperation, and support to suppliers
as necessary. We work together to promote quality improvement and ensure suppliers take measures to resolve issues within a
reasonable timeframe to meet company standards. In 2023, no suppliers were found to have any significant quality issues.
Risk Type Countermeasures
We clarify quality-related requirements in the Sourcing Framework Agreement and the Freight
Transportation Services Contract, and establish a quality information-sharing mechanism with
Product Quality Control
suppliers. To do so, we aim to ensure that both parties can access and share timely information
Quality Risk
on product quality, delivery progress and other aspects. We conduct regular, relevant audits
and reviews of our suppliers and initiate quality training, technical cooperation and exchanges
when necessary, in order to strictly control the quality risks at each stage of the process.
We require all suppliers to sign the Supplier Anti-commercial Bribery Statement , intensify
publicity and training, and carry out due diligence and audits on partners depending on Incoming Material Finished Product First- Handling of Process Quality
Compliance &
the cooperation projects if necessary. For details on supply chain business ethics and anti- Inspection Data Time Pass Rate Issue Management
Ethics Risk
corruption management, please refer to the section "Adherence to Business Ethics" in the
chapter "Efficient Governance: Marching Towards a New Era of High-Quality Development." According to the requirements In accordance with the product The SQE tracks and addresses the
of drawings and technical inspection documents and the quality problems of suppliers found
Environmental Risk In accordance with the requirements of BSCI and local government departments, we conduct specifications, the Quality technical specifications of the in the production process and
Environmental Risk
social responsibility audits on suppliers and issue the Supplier Social Responsibility Audit Department of the Company carries product, we carry out finished issues CAPA reports to monitor the
Health & Safety Risk Repor t, which includes various audit areas such as child labor, forced labor, occupational out inspections on the appearance, product testing and safety testing progress of quality improvements.
health and safety, freedom of association and collective bargaining, anti-discrimination, size and performance of new to ensure that the released For suppliers with frequent or
Health & Safety Risk
and environmental protection issues. Suppliers who have obtained relevant environmental materials. For the new materials, products comply with the technical major quality problems, the SQE
management and occupational health and safety certifications are given weighted the Quality Department of the specifications, market regulatory engages in and follows up on the
Risk
consideration during admission and evaluation processes, which motivates them to strengthen Company requires the suppliers requirements and legal and development of special quality
Labor Rights Risk
their social responsibility management. to furnish quality assurance regulatory provisions. We also improvement programs.
certificates, shipment inspection formulate a product review plan,
reports, type test reports, etc., and carry out sampling and testing
warehouse them in the SAP system of the finished products from the
Supply Chain Quality Risk Control after they are qualified. perspectives of the customer's
use end and market regulation,
Yuwell Medical has established the Supplier Management Control Procedure and other internal management systems, specifying We collect and analyze the data on and conduct special tracking and
quality management requirements for each phase of the entire supply chain lifecycle, thus comprehensively enhancing process the suppliers' incoming material correction for the problems found
quality control. Suppliers must possess professional qualifications for the services or products they provide, maintain a robust quality inspections and tests every month, by sampling and testing.
management system in compliance with current laws and regulations, and are required to sign a Quality Agreement. which includes the number
of received batches, returned
During the supplier admission process, the Company conducts quality management system audits of suppliers that match the raw batches, the QC pass rate, and the
material development needs, and only those who meet the scoring criteria are included in the Qualified Supplier Directory . We causes of defects. This process
perform quarterly performance evaluations and annual audits on suppliers to verify if they meet the product quality requirements, aims to facilitate the traceability
removing those who do not. During the introduction of new raw materials, we track the trial production process to fully control the of material information and the
quality of new materials. When supplier product quality issues are identified during incoming QC and production, we issue a CAPA smooth progress of the suppliers'
Report to the suppliers according to the CAPA Procedure Document . For suppliers willing to improve, we visit their sites and, based on continuous improvement efforts.
their actual situation and improvement needs, assist them in developing targeted improvement plans. Through establishing quality
management systems, enhancing production process control, and optimizing documents and processes, we ultimately achieve
mutual progress and growth.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Enhancing Supply Chain Resilience Information Security and Privacy Protection
Amid an increasingly complex global market environment and evolving business demands, the stability and continuity of the supply
chain are crucial to a company's operations, production, and customer satisfaction. Yuwell Medical consistently refines its supply chain
Data Acquisition and Application Security
structure, achieving supplier diversification and multi-channel sourcing. In response to potential supply chain disruptions, price increases,
and unexpected events, we have further enhanced our preventive controls to strengthen supply chain resilience. Throughout the reporting Yuwell Medical strictly complies with the Personal Information Protection Law of the People's Republic of China and other applicable
period, Yuwell Medical maintained a stable supply, ensuring that no shortages of raw materials disrupted the normal production schedule. privacy protection laws and regulations in its operational regions. Adhering to the principles of "legality, authorization, and
confidentiality" in privacy protection, we have incorporated data privacy into our compliance management, rapidly improved our
privacy data management system covering various product data types, and ensured transparency in the collection and use of product
Diversified Supply Strategy and service data. Additionally, the Company actively participated in developing industry standards related to data security in the medical
sector to promote the standardization, safety, and efficient use of medical data. During the reporting period, Yuwell Medical completed
To ensure the security of the supply system, Yuwell Medical has broadened its supplier network, established secondary supply and submitted the Home Medical Device Data Collection and Application Standard for review.
resources, and implemented a supplier rotation mechanism. This strategy reduces reliance on any single supplier or region, thereby
mitigating the risks associated with exclusive supply arrangements. For key bulk materials in categories A and B, there are no Yuwell Medical's Privacy Protection Principles
fewer than two backup suppliers, and for other material categories, at least one backup supplier is available. We prioritize strategic
collaboration and maintenance with suppliers of monopoly and bottleneck materials and are dedicated to developing alternatives for
secondary resources. Should the main supplier be unable to supply materials due to special circumstances, a standby supplier can When collecting, storing, processing, transporting and using personal data, we comply with laws and regulations
immediately step in, reducing the risk of single-source supply and ensuring the stability of raw material availability. and codes of conduct, and consciously safeguard the legitimate rights and interests of data subjects.
Principle of Users are required to ensure that the source of external data is legal and compliant when introducing
Legality external data into the Yuwell system or storage space.
Digital Supply Chain Management
Utilizing advanced supply chain management systems and digitalization, we achieve real-time tracking and oversight of the supply Before accessing personal information, the Company must obtain the Yuwell Software Service Agreement
chain, ensuring transparency across all segments, especially for high and medium-risk materials that require targeted tracking. signed with the individual's consent, to fully respect their rights to be informed about, access, correct, and
Through data analysis and forecasting, we promptly identify and address potential issues, reducing the risk of supply chain delete their personal information.
disruptions. Additionally, the Company has upgraded its inventory management technologies, such as real-time inventory tracking We carefully evaluate the need to acquire personal data and avoid receiving or collecting data that is
and predictive analysis, to maintain inventory levels that meet demand without causing excessive stockpiling, thereby minimizing Principle of irrelevant to our business functions.
unnecessary inventory costs and ensuring the ample supply of key materials. Authorization
We protect stakeholders' rights to be informed, choose, and control their personal information, access and
use only authorized data, and implement a range of measures to minimize the use of personal information.
Strengthening Emergency Response Management
We maintain strict confidentiality of privacy data and do not share, transfer, or disclose users' personal
We have established a comprehensive risk assessment mechanism that formulates contingency plans and backup strategies
information to any other companies, organizations, or individuals without authorization. We establish
tailored to the severity levels in production activities and the likelihood of supply delays. This includes arrangements for alternative
appropriate data security capabilities, implement necessary management and technical measures, and
suppliers, transportation routes, and inventory strategies to ensure rapid response and recovery in emergency situations. Principle of regularly check and evaluate the effectiveness of privacy data management and technical measures to
Confidentiality prevent data leakage, damage, loss, or tampering.
Supply Chain Collaboration and Joint Development
Case
Yuwell Medical strengthens strategic cooperation with reputable key material suppliers Yuwell Medical Leads the Drafting and Submission of the Home Medical Device Data Collection and
to establish long-term, stable relationships, jointly responding to market changes Application Standard
and risk challenges. By optimizing transportation routes, selecting appropriate
transportation methods, and forming lasting partnerships with logistics suppliers, Yuwell During the reporting period, Yuwell The safety of medical devices is closely related to life and health, and is an important part of the Healthy China Initiative. As the
Medical effectively ensures the safety and stability of its supply chain. We actively engage Medical conducted a total of medical sector becomes more intelligent, it is imperative to ensure the safety of data collection and application of household
with suppliers, offering training and focusing on developing small and medium-sized
medical devices. In 2023, Yuwell Medical led a series of expert discussions and research initiatives involving several universities,
suppliers. We support suppliers facing temporary challenges without compromising the research institutions, and industry leaders. Based on the research findings, the scope and main technical parameters of the
Company's interests, helping to enhance their production capabilities and the quality Home Medical Device Data Collection and Application Standard were defined. The standard's framework and core content were
supplier training sessions.
of their supplies, thereby boosting the overall competitiveness of the supply chain. We shaped based on relevant national industry documents and data, which establishes comprehensive technical and management
maintain multi-dimensional dialogue and exchanges with suppliers, keeping abreast of guidelines for home medical device data. This standard was successfully submitted for approval. It sets regulations for collecting,
production demands, product quality, and policy interpretations, and fostering mutual transmitting, storing, applying, and securing users' health data, significantly aiding medical institutions, platforms, and medical
growth with an open and collaborative mindset. device businesses in providing robust data support for managing chronic diseases in residents.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Information Systems and Data Security
Yuwell Medical strictly follows laws and regulations such as the Cybersecurity Law of the People's Yuwell Medical, guided by the ISO 27001 Information
Republic of China , the Data Security Law of the People's Republic of China, and the Personal Security Management System and other relevant
Information Protection Law of the People's Republic of China. Based on these, we have developed standards, laws, and regulations, continuously
Yuwell Medical has obtained Annual information security Information security
policies, systems and operational procedures, such as the Information Security Management advances the development of its cybersecurity
ISO 27001 Information training sessions training coverage
System, Data Security Management System, Information Security Risk Assessment Management and information security systems. The Company
Security Management System
Measures , and Information Security Outsourcing O&M Management Regulation . We aim to has established clear policies and procedures for
certification.
structure a robust information security system to ensure the information security of the Company's information security management, data control, risk
information infrastructures, information application systems, products and customers. assessment, emergency response plans for network
and information security incidents, and information
We have established a three-tier information security management framework. The Chief Operating security training. We strictly regulate employee
Officer is responsible for the overall management of information security, endorsing the information Completion rate of annual IT- behavior in areas such as cybersecurity, operations
security policy, determining information security requirements, and handling major information specific review of business- Information leakage management, server room management, system
security incidents. The IT Leadership Group is responsible for the overall orientation and major critical system privileges incidents changes, and data backup. Technically, we employ
decisions of the Company's information security and supervision of the Company's information various measures including network isolation,
security work. The Information Management Department is responsible for implementing the encryption protection, audit tracking, early warning
relevant requirements and work of information security, guaranteeing the effective operation mechanisms, and antivirus software to establish an
of the Company's information security operation and maintenance system, and briefing the IT information security protection network. Additionally,
Leadership Group. We have also put in place quantitative information security indexes and reward we have intensified our information and data security
and punishment mechanisms and incorporated information security protection into employee training and regular audits to comprehensively
performance appraisal to strengthen information security management. enhance our information security level.
Supplier Information
Data Backup and Recovery Information Security Awareness Training Strengthening Controls Information Security Audit
Security Management
We have defined clear requirements and We persistently promote the establishment of an information security culture We regulate data security from We have established an The protection of customer
measures for data backup, extraction, by including information security in the induction training courses for new three key aspects: database information security control and information security is
usage, and disposal to ensure rapid employees to ensure that new employees understand the risks and basic management, data encryption, review mechanism in line with included in the scope of
recovery in case of data loss or damage. requirements of information security related to their work. At the same time, we and data backup and recovery. our business characteristics. investigation during the supplier
Additionally, we utilize cloud services and carry out information security announcements and spot checks from time to Based on the value of the We monitor the risks in the admission and evaluation, and
NAS for scheduled full and incremental time, and call on employees to pay attention to the safeguarding of information information, content sensitivity, construction and operation of the confidentiality-related clauses
backups, effectively preventing data loss. security in their daily work process. For example, employees are required to lock and access scope, all company Company's information security are stipulated in the Sourcing
the screen of their PCs when they leave their posts, and identify information information is classified into system and propose mitigation Framework Agreement . This
security documents and differentiate their confidentiality levels. During the four levels, including top secret and resolution measures to enhances suppliers' awareness of
reporting period, Yuwell Medical organized a total of three information security and secret. This tiered security ensure business continuity and information security and ensures
training sessions, with an impressive 100% employee coverage. protection system ensures the asset security. We engage third- that the Company's confidential
Emergency Response proper flow and transfer of party organizations to audit the information and associated data
Management information within the company, Company's information security remain undisclosed.
preventing unauthorized access system and issue the Information
We keep improving the Cybersecurity to sensitive data. We enhance System Audit Report. During
Emergency Response Plan and set up a graded control and access the reporting period, the
technical platform for early warning and management by employing Company conducted special
emergency response, so as to improve intelligent encryption and audits on five major areas: user
our ability to detect and analyze tiered protection measures access management, system
security incidents. We also strengthen through an encrypted development, system changes,
the management and handling of document management system, logical access, and other general
information security emergencies to comprehensively establishing controls.
ensure that the Company's information a data security protection
security is safeguarded in a timely and framework.
effective manner.
On-site information security training
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Leading Through
Innovation:
Energizing Life via Technology
Annual R&D investment: RMB
Yuwell health products covered by digital health services
Product recalls in 2023
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Driving the Future through Innovation research institutions and universities. Through independent and collaborative R&D, we engage in technological innovation research and
tackle key technological challenges. The Company possesses multiple internationally leading R&D technology platforms, which enhance the
development of new products and the technological upgrading of existing products, facilitate product enhancements and rapid iterations,
Yuwell Medical is committed to leading industry development through innovation and enhancing the health of millions of families. and further improve manufacturing processes and quality control. With innovation as our driving force, we are accelerating leadership in
Adopting a new strategy of "reshaping medical devices through innovation," the Company considers R&D as its central driving force for industry development. Yuwell Medical has established R&D centers in locations including Germany, Shanghai, Nanjing, Suzhou, Danyang,
growth. It continuously explores innovative pathways and substantially increases investments in new product development, proactively Xizang, and Shenzhen, creating an extensive global R&D network. Leveraging our advanced R&D capabilities and precise technical skills,
responding to the trend in the medical and health industry towards more smart, precise, advanced, and international solutions. With its we actively seek collaboration with high-level third parties to jointly develop innovation centers and R&D bases for new businesses and
focus on technological innovation, Yuwell Medical aims to advance the industry and deliver high-value medical solutions to society. products, as well as platforms for talent development, thereby laying a solid foundation for the Company's ongoing innovation.
Innovation and R&D System
With a deep foundation in R&D technology, Yuwell Medical undertakes research on critical and challenging industry technologies, achieving
a series of internationally advanced innovations, patents, and standards with independent intellectual property rights. We host multiple
national, ministerial, and provincial-level scientific research and innovation platforms, such as the national enterprise technology center,
In line with domestic and international laws, technical guidelines, national industrial design center, and national postdoctoral scientific research workstation. We have consistently participated in national key
professional industry standards, and international norms, Yuwell R&D projects, major national technological equipment research projects, and Jiangsu provincial scientific and technological achievements
Annual R&D investment: RMB
Medical has established comprehensive management systems transformation projects, among other significant national and provincial initiatives.
for innovation and R&D. These include the R&D Management
System, Yuwell Medical R&D Cost Collection and Accounting
Management Methods , and Technology Achievements and million
Innovation Rewards and Discipline Methods . These frameworks
specify requirements and standards for project initiation, project
management, transition management, succession management, R&D investment as a percentage of revenue Fluid Simulation Technology Platform Motor Drive Technology Platform Compressor R&D Application Platform
outcome management, and reward mechanisms. Utilizing cross-
departmental integrated product development (IPD process)
and product lifecycle management tools (PLM system), Yuwell
Medical accelerates the cultivation and development of new
productive forces and bolsters its core industrial competitiveness.
Technology Platform
Micro-nano Laboratory MEMS
Process Platform
Upholding the principle of "doing the right thing in the right way,"
the Company adheres to ethical standards in science and technology, fosters a culture of social responsibility, and centers its innovations
on market and customer needs. By focusing on key technologies and maintaining superior quality, Yuwell Medical commits to not
developing or employing any scientific and technological advancements that could harm the natural environment, human health, public
Received
safety, or ethical standards. Through its development of innovative, applicable new products, technologies, and processes, the Company
Recognized as a
makes a positive impact on driving social progress.
National High-tech Enterprise
Innovation and R&D Team national-level awards for
scientific and technological innovation
Yuwell Medical firmly believes that talent is the cornerstone of technological innovation. We focus on cultivating a team of innovative, practical,
highly qualified, and team-oriented R&D engineers and managers. To support this, we have implemented several institutional norms including
the R&D Center Tutoring Management System, Yuwell Medical High-Potential Talent Development Management Measures, Research Personnel Participated in the development of Received
Continuing Education Management System , and Technology Achievements and Innovation Reward and Discipline Methods . We recruit
exceptional talents globally and continually refine management mechanisms that foster the growth of scientific research talents. We intensify
the development of high-end scientific and technological talents, place emphasis on training strategic R&D management talents, and promote national and industry provincial-level awards for
long-term incentive plans for core talents to unlock the potential of our scientific and technological workforce. standards in 2023 scientific and technological innovation
Note: The statistics are based on Yuwell Medical's parent company.
The Company routinely organizes internal training sessions and exchanges for various R&D team modules. By facilitating both internal
and external training, seminars, and other forms of technical exchanges and lectures, we enable our employees to master cutting-edge
technologies and stay abreast of industry trends. We also engage external industry experts as R&D consultants, facilitating resource
sharing and synergy, which enhances our technical prowess and supports the independent R&D of innovative core technologies.
Case
Moreover, the Company actively engages in various technological innovation activities, cultivating a culture of innovation that encourages Advanced Anti-HCT Interference Technology Platform
experimentation and accepts failure, thereby helping employees remain in a state of continuous innovation and development.
Yuwell Medical's POCTech BGM R&D team has leveraged electrochemical multipulse signals and multiparameter big data
Technological Innovation Platform regression analysis to develop a universal algorithm for electrochemical monitoring systems—the Anti-HCT Interference Correction
Algorithm. This algorithm significantly enhances the accuracy of our product system and offers versatility and scalability. It is
Yuwell Medical has established R&D centers and innovation institutes, creating high-level, open-ended technological innovation platforms
applicable to all types of people, including special groups such as newborns and pregnant women. It enables chronic disease
and comprehensive innovation systems. We proactively integrate the scientific and technological resources of domestic and foreign
patients to monitor their conditions more effectively, enhancing our competitiveness against top-tier global products.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Yuwell Medical maintains a continuous focus on and deepens its research in innovative medical products, major diseases, and To manage intellectual property affairs, the Company has established both a Legal Affairs Department and an Intellectual
chronic illnesses. Relying on its R&D centers and innovation institutes, the Company has developed multiple products, thus Property Department, staffed with specialists dedicated to intellectual property management. This framework ensures a
creating a more rational and enriched product R&D pipeline. professional, comprehensive, and mature intellectual property management system. Yuwell Medical prioritizes raising awareness
of intellectual property rights among its employees through regular training sessions. These sessions aim to help employees
Case grasp the significance of intellectual property and to implement effective strategies for its application and protection within their
Comprehensive Upgrade of High-Flow Humidified Respiratory Therapy Device
work. Furthermore, the Company actively manages and promotes patent applications to preserve its operational autonomy
for Use Across All Departments
and competitive edge in the marketplace. Yuwell Medical not only protects its own intellectual property rights but also respects
those of others, committing to avoid any infringement. The Company enhances patent risk management and strictly adheres to
In 2023, dedicated to alleviating patient suffering, Yuwell Medical explored more scientific and confidentiality obligations during technical collaborations, thus supporting fair competition and the healthy growth of the market.
comfortable respiratory treatment solutions for acute and chronic respiratory diseases such as As of the end of the reporting period, Yuwell Medical had filed 132 trademark applications with trademark offices both domestically
tuberculosis, asthma, and chronic obstructive pulmonary disease. The high-flow humidified and internationally and conducted 4 intellectual property training sessions, extensively covering its R&D personnel.
respiratory therapy device underwent upgrades in six key areas: mode, flow, functionality, monitoring,
user experience, and accessories. These enhancements enabled full departmental coverage and
raised clinical treatment standards. Breakthroughs in high-precision steady-stream flow sensor
Total patents granted Invention patents granted Patents granted in 2023
technology were achieved, addressing current issues with respiratory parameter monitoring
errors in gas flow and pressure in high-flow humidified respiratory therapy devices. By optimizing
intelligent algorithms, the device's capability to process minute respiratory parameters was further
enhanced. Self-regulating technology for oxygen concentration and flow was developed, facilitating
easy adjustments to mixed oxygen gas levels and flow. Advancements were made in heating and
humidifying technology based on convective circulation structures, significantly improving the
temperature and humidity treatment efficiency and control precision of high-flow humidifiers.
Advancing in Yuwell Medical is deeply invested in the realm of smart healthcare, with a focus on
digitally developing key products and engaging in R&D activities involving "professional
Industry-Academia-Research Collaboration
Smart Healthcare medical software products + algorithms + IoT." The Company seamlessly integrates
traditional medical product services with information technology, establishes data
Engaging in multi-disciplinary industry-academia-research collaboration is a crucial driver of technological innovation at
standards for medical devices, and constructs open, empowering platforms to generate
Yuwell Medical. The Company has established Industry-Academia-Research Collaboration Management Measures and actively
health data records for individuals and families. It empowers partners by offering
collaborates with universities and research institutions to complement each other's strengths, jointly address clinical pain points,
comprehensive business services to various enterprises, organizations, and partners that
and enhance the diagnostic and treatment technology level of medical devices. This effort supports high-quality development in
meet entry requirements, thereby cultivating a digital medical service ecosystem.
healthcare. By the end of the reporting period, Yuwell Medical had engaged in industry-academia-research collaborations with
multiple institutions, including Nanjing University of Posts and Telecommunications, Beijing Institute of Technology, Shanghai Jiao
Tong University, the University of Shanghai for Science and Technology, Sichuan University, and Nanjing University. Digital Health
Subscriptions to general health products and services (exercise, diet, psychology, content)
Innovation
Facilitating institutional access
Case Healthcare Professional medical Health service Rehabilitation and OTC
Thousand Experts Yuwell Initiative Hospitals
institutions organizations elderly care institutions pharmacies
Service Providers
As a novel respiratory support technology, high-flow nasal oxygen therapy is increasingly gaining attention from clinical Empowering medicine Introducing medical AI Leveraging big data in health
Personal for assistance for automation for service delivery
experts and is widely used in intensive care units (ICU), emergency departments, cardiothoracic surgery, pediatrics, and other
(Family) Digital
departments. In October 2023, Yuwell Medical hosted the 11th session of the "Thousand Experts Yuwell Initiative" at the Yuwell
global industrialization base, focusing on the clinical application of high-flow nasal oxygen therapy in emergency and critical
Health Records Government regulation and data authorization
care anesthesia. By the end of the reporting period, the "Thousand Experts Yuwell Initiative" series of conferences had covered 9
Data Collection Personal (family) health records; Personal physiological indicators; Personal (non-medical)
provinces and regions nationwide, involving over 110 hospitals. health indicators
and Management
Intellectual Property Protection
Empowering end-users
Yuwell Medical rigorously adheres to the Patent Law of the People's Republic of China, Trademark Law of the People's Republic of Home Testing
China, Copyright Law of the People's Republic of China , and other relevant laws and regulations. The Company has instituted a and Treatment
robust set of management practices, including the Intellectual Property Management System of Jiangsu Yuyue Medical Equipment
& Supply Co., Ltd. These measures are designed to fortify the management of intellectual property and R&D achievements, thus
preventing the loss of intangible assets and fostering employee innovation and creative endeavors.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Digital Health Services Yuwell Medical actively upholds the service philosophy that "proactively
managing health is the best guarantee for enhancing the quality of life,"
Case Yuwell Health Manager Platform
dedicating itself to providing users with efficient, convenient, and personalized
health management services. The Company establishes digital service The "Yuwell Health Manager Platform" is an innovative health management platform developed by Yuwell Medical for household
development goals, constructs a comprehensive digital service architecture, and medical devices. It supports a range of medical devices developed by the Company, including blood pressure monitors, glucose
Yuwell health products covered continually enhances its digital service system and end-to-end customer service meters, pulse oximeters, respirators, thermometers, and more. By utilizing technologies such as Bluetooth and 4G to connect with
by digital health services: solutions. Leveraging data-driven management, structured accumulation, mobile phones, it enables real-time monitoring and recording of device data, health data management, and sharing. Users can
and intelligent risk control, the Company consistently expands its portfolio of gain a comprehensive understanding of their own or their family members' health data, while the platform can promptly identify
digital medical device products and pushes the boundaries of digital health potential issues, provide personalized health advice, offer accurate health management plans, and remote health follow-ups. This
services to improve service quality, enabling more people to lead healthier, more helps prevent and delay the occurrence and development of chronic diseases and their complications, assisting users in achieving
units meaningful lives. During the reporting period, Yuwell Medical achieved its digital self-health management and control. In the future, Yuwell Medical will expand the application of digital therapy to a broader
service construction goals for foundational systems, developed IVR voice robots, market, including extending to the management of other chronic diseases and elderly health management.
and established a unified work order platform, a smart knowledge base, and a
user operations management platform, thus creating a "smarter" health service
system that better analyzes user needs, matches solutions to those needs, and Case
provides feedback for design and production. Launch of New CGM Product Anytime
Establishing Digital Platforms Integrating Medical Resources Traditional diabetes monitoring tools require daily finger pricks and are inconvenient to carry. Addressing this pain point, Yuwell
Medical has adopted cutting-edge global practices to develop Anytime, a new continuous glucose monitoring (CGM) system
We have established a digital management platform that We have collaborated with medical institutions, insurance product, which was launched in 2023. Anytime constantly monitors glucose levels subcutaneously for 24 hours through sensors,
integrates data collection, analysis, and the creation and companies, and pharmacies to offer users comprehensive enabling real-time blood sugar dynamic monitoring without calibration. This can significantly reduce users' discomfort and the risk
implementation of personalized plans. Through the Yuwell health management and services. of infection. Anytime also provides comprehensive report interpretation and sharing, helping doctors and patients adjust blood
Health Manager App, Yuwell Member Center Applet, and sugar management strategies in a timely manner, thus offering a new solution for diabetes management.
Yuwell Respiratory Manager Applet, users can clearly
understand their blood sugar levels, blood pressure,
oxygen intake duration, and sleep respiratory quality,
facilitating easy health management with personalized
health management and consultation plans.
Strengthening User Education Enhancing Personalized Services
Through smart platforms, we have provided users with Based on user outcomes and feedback, we have continually
health-related education and management knowledge, optimized management plans to enhance personalization.
enhancing their self-management capabilities and By analyzing and predicting trends in physiological
their understanding of and compliance with disease indicators, we make timely adjustments to treatment plans
management. and lifestyle recommendations.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Smart Healthcare Ecosystem Commitment to Uphold Quality
Guided by customer needs, Yuwell Medical empowers partners across multiple scenarios to provide smart healthcare closed-
loop services to various enterprises, organizations, and partners that meet entry requirements, creating a digital medical service
Accessible High-
ecosystem that enables more people to enjoy innovative and high-quality medical services.
Yuwell Medical remains committed to the principle of leading industry development through
innovation and enhancing the health of millions of families. Innovation serves as the cornerstone
To jointly create a favorable smart healthcare ecosystem, it is essential to ensure the security, supervisability, stability, and
Quality Healthcare of its development and superior products as the benchmark. The Company expands its presence
consistency of digital medical product data collection. Yuwell Medical strictly complies with the requirements of relevant domestic
in underdeveloped countries and regions, accelerates the development of high-quality inclusive
laws and regulations regarding privacy protection, including the Personal Information Protection Law of the People's Republic
products, and enhances the design of intelligent and user-friendly products. By ensuring quality
of China , as well as other applicable privacy protection laws and regulations in the regions where it operates. By proactively
through lean management, enhancing product affordability, and implementing fair pricing
participating in the formulation of industry standards related to medical data security, the Company promotes standardized,
policies, these efforts are aimed at making high-quality healthcare more accessible.
secure, and efficient utilization of medical data. For detailed information, refer to the section "Data Acquisition and Application
Security" in the chapter "Efficient Governance: Marching Towards a New Era of High-Quality Development" in this report.
Human-Centered and Inclusive Design The font size on product screens is adjustable to
accommodate the needs of elderly users.
By adopting a user-centric and inclusive design philosophy, the
Blood glucose monitors are designed to be modular and
Company addresses the specific challenges and requirements of
rechargeable, shifting from disposable to reusable.
its users, particularly patients, the elderly, and other vulnerable
Empowering Hospitals: Extending Out-of-Hospital Medical Ecosystem to Form a Closed- groups. This approach simplifies the product interface, making For the visually impaired, products feature voice
loop Service devices more user-friendly and accessible. broadcasting and backlight designs.
By aggregating data from household medical devices and creating personal health records for users, we
establish connections with large public hospitals, community hospitals, and internet hospitals to achieve
Intelligent User-Friendly Products Improving Public Healthcare Standards
remote diagnosis, health monitoring, and remote intervention for chronic disease patients. Combining
data with internet medical services can make hospitals more efficient and lower costs, enabling patients to Yuwell Medical keeps investing in its core capabilities, developing Yuwell Medical regularly conducts training for the professional
achieve long-term home health intervention and chronic disease management. and producing a range of digital and smart flagship products. use of medical devices and sets up incentive funds to support
These innovations result in smarter, more convenient, and grassroots doctors in their research efforts, thus enhancing
Empowering Pharmacies: Creating a New Closed-loop of "Medical-Pharmaceutical-Services" elegantly designed products across various lines. Active efforts primary healthcare services.
are made to improve usability and lower the barriers to entry,
Through an open data platform, we jointly build personal/family health records with OTC pharmacies,
aiming to "enhance the health of millions of families" with The Company maintains a focus on the healthcare development of
combining patients' medication and device usage to provide periodic, targeted customized services. This
higher-quality, cost-effective, and sustainable products. grassroots and underserved areas by participating in health-related
forms a combination mode of "pharmaceutical + health service + health care service," enhancing the
public welfare activities, promoting health education, donating
service capabilities of pharmacies.
Advancing in the smart healthcare sector and focusing on medical equipment, and fulfilling its social responsibilities. These
the digital construction of key products, Yuwell Medical sets efforts expand the reach of high-quality medical resources and
standards for medical device data and develops an open, benefit an increasing number of patients. More details on these
Empowering General Healthcare Institutions: Providing Health Intervention and
empowering platform for personal and family health record health initiatives can be found in the section "Safeguarding Life and
Management Services
management. By supporting partners in creating a digital Health" in the Chapter "Talent-oriented: Achieving the Value of Life."
Through an open data platform, we aid community hospitals in establishing personal/family health records healthcare service ecosystem, the Company is dedicated to
for users, achieve data interoperability with relevant tiered diagnosis and treatment hospitals, and thus offering innovative, high-quality, and accessible medical services
promote the closed-loop intervention and management of chronic disease residents in the covered area. to a broader audience. For further information, refer to the
section "Advancing in Smart Healthcare" in this report.
Enhancing Product Affordability Training for pharmacy staff
Adhering to the World Health Organization's guidelines
Case Yuwell Medical Platform Certified to EU MDR Standard for "fair pricing," Yuwell Medical employs a value-based,
transparent, and fair pricing strategy. This approach ensures
In 2023, the Positive Airway Pressure Units Webpage Information System developed by Yuwell Medical was certified under the EU product quality while reflecting affordability. The Company
Medical Device Regulation (MDR) standard. This groundbreaking platform, the first worldwide to receive such certification for home explores more sustainable pricing models in different markets Guiding the use of medical equipment
medical devices, enables the effective management of users' personal and treatment data by distributors and doctors. At the end to ensure the effective implementation of pricing policies, in community activities
of each respirator usage cycle, essential data including usage duration, device leakage, pressure, Apnea-Hypopnea Index (AHI), transparency in pricing, and accessibility of products. This
blood oxygen levels, and pulse rate, is uploaded to the management system via communication modules. This feature facilitates endeavor enables our innovative products to reach a wider
sophisticated data analysis, enhancing health management for users. population in underprivileged regions.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Case Innovative Technology Boosts Sleep Health Product Quality and Safety
Superior product quality is fundamental to a company's continued success. Yuwell Medical consistently prioritizes the production
As obesity rates and aging populations increase worldwide, Obstructive Sleep Apnea (OSA) has emerged as a major global public health of high-quality, reliable products, adhering to both domestic and international regulatory standards. This includes compliance
challenge. In China alone, the number of OSA patients has reached 176 million. However, the diagnosis rate remains at merely about 1%, with the Product Quality Law of the People's Republic of China, Regulations for the Supervision and Administration of Medical
with very few patients continuing treatment after their initial diagnosis. In response to this critical issue, Yuwell Medical has leveraged Devices , and Medical Equipment Production Quality Management Specification . We have implemented comprehensive quality
its advanced respiratory technology to develop the third-generation sleep respirator, marking significant advancements in technology, management procedures, such as Quality Manual and Document Control Procedures , to establish high-standard lifecycle-spanning
comfort, and intelligence. This innovation offers new possibilities for restoring normal sleep patterns in OSA patients. quality and risk management systems. Yuwell Medical has obtained ISO 9001 and ISO 13485 certifications, and its key products
are approved by the US FDA, EU CE, and South Korean KGMP. We meticulously oversee every facet of our quality management
The third-generation sleep respirator features an innovative integrated airway and a low-noise, high-efficiency fan, ensuring stable flow and
system, fostering a culture of quality awareness among all staff members. Through annual internal and external audits, as well as
pressure while minimizing noise for a smoother breathing experience. It incorporates a novel algorithm that automatically detects a broader
management reviews, we ensure the continuous improvement of our quality management system.
range of sleep events, tailoring personalized treatment plans accordingly. The machine also includes a 15mm narrow-diameter intelligent
heated tube, employing advanced temperature control technology to minimize condensation and enhance the warmth and comfort of the
breathing experience. Equipped with a built-in 4G IoT module, the device allows for automatic uploading of sleep reports to the WeChat
applet, enabling patients to easily access daily treatment outcomes and share their sleep reports instantly, facilitating remote monitoring Quality Management Goals for Yuwell Medical in 2023:
and guidance. This system allows doctors to quickly assess treatment progress and sleep quality without the need for frequent hospital
visits, thereby providing patients with timely and effective treatment.
One-time inspection pass rate ≥
Since 2012, Yuwell Medical has dedicated itself to the independent development of domestically produced sleep respirators. Recognizing
the challenges in developing respirators, particularly the absence
of a central monitoring system and an IoT framework at the
clinical and medical consortium levels, the Company initiated a
"hospital-enterprise model." This approach fosters collaboration Pass rate for random inspections in 2023 One-time inspection pass rate
with numerous domestic hospitals and experts to devise effective
solutions. Additionally, we have established eight sleep IoT
centers to deliver personalized sleep therapy. Through extensive
clinical trials, these centers gather ample training samples for
user sleep breathing tests, ultimately delivering comprehensive
diagnostic and treatment solutions for OSA patients.
Product Certifications Quality Management System Certifications
EU Medical Device Conformité Européenne (CE) Certification1
of main products have passed
ISO 9001 Quality Management System certification
valid registrations for Class II and III medical
devices in China Yuwell Medical has obtained ISO 13485 Medical Device
Quality Management System certification
Passed the audit under the Medical Device Single Audit
Program (MDSAP)
valid records for Class I medical device filings Certified by the China Certification Committee for Medical
in China Devices (CMD)
Note 1: EU Medical Device CE certification encompasses the Medical Device Regulation (MDR) certification, In Vitro Diagnostic Devices Regulation (IVDR)
certification, Medical Device Directive (MDD) product certification, and In Vitro Diagnostic Medical Devices Directive (IVDD) product certification.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
End-to-End Lifecycle Quality Management
Design R&D Procurement Production Post-Market Quality Supervision
Customer
Customer
Satisfaction
Requirements
Quality Control - R&D and Design Quality Control - Procurement Quality Control - Production Post-Market Quality Supervision
The design process is standardized to be more specific and Quality risks throughout the supply Rigorous quality control is implemented in the Adverse events are proactively collected and reported,
aligned closely with user needs, creating a closed loop from chain lifecycle are strictly controlled production process, with detailed standardized with risks timely and effectively controlled after the
requirements to design usability. Closed-loop experience through regular audits and quality production processes and operating procedures medical device is marketed. The quality department
research and usability verification mechanisms are employed reviews of material suppliers. ensuring compliance with quality standards evaluates customer feedback according to the
to test design quality. Real users are recruited in the later stages Detailed content can be found in the at ever y step. Requirements for equipment principle of reporting at suspicion, reporting suspected
of product development to conduct usability tests in scenarios section "Sustainable Supply Chain" accuracy and reliability are incorporated into adverse events of medical devices as such. Regular
close to reality, evaluating whether the design meets customer in the chapter "Efficient Governance: equipment management standards, with regular comprehensive reviews of high-risk and frequently
quality requirements. Usability test results can significantly Marching Towards a New Era of maintenance and calibration ensuring quality occurring adverse events are conducted by quality, R&D,
impact product certification and market launch, potentially High-Quality Development." assurance throughout the product manufacturing production, and technical departments, establishing
having veto power to ensure design quality. process. Under the Company's digital strategy, effective analysis, evaluation, and correction systems to
advanced technology and intelligent equipment ensure a year-on-year reduction in adverse events.
Quality management system procedures such as the Quality are continuously introduced to promote full
Manual and Design and Development Control Procedures automation of key products, improve lean
are developed based on ISO 9001 and other standards. R&D management, identify areas for improvement,
quality policies and objectives are clarified, and quality audits and optimize quality control strategies to ensure
are conducted at each key milestone to ensure quality at stability, efficiency, and quality in the product
every stage of the project. The R&D center regularly organizes manufacturing process.
internal training or exchanges covering medical device quality
system standards, regulations, test requirements, etc., to instill
quality management awareness throughout the R&D process.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Advanced Quality Inspection System Comprehensive Quality Culture
Building
Yuwell Medical has established a well-structured and efficiently operated laboratory system. The Product Safety Laboratory has Training coverage rate for quality-
obtained accreditation from the China National Accreditation Service for Conformity Assessment (CNAS), along with certifications Yuwell Medical is committed to fostering related personnel
such as ISO 17025 Laboratory Accreditation, CTF Laboratory Accreditation, and UL Witness Laboratory Accreditation. Furthermore, the involvement of all employees in
it regularly engages in training, activities, and audits conducted by various domestic and international third-party organizations,
ensuring that its laboratory testing capabilities match those of the industry's leading laboratories, thereby constantly safeguarding
the quality safety of the Company's products.
quality management by establishing a
diverse and comprehensive quality course
training system, significantly enhancing
each employee's quality awareness and
The Company has developed rigorous specifications, including the Incoming Inspection Control Procedure, Process Inspection knowledge. The Company creates an annual
and Finished Product Inspection Control Procedure , and Non-conforming Product Control Procedure . It performs comprehensive quality training plan for all employees
internal testing on every batch of products following the medical device product quality standards, ensuring meticulous quality Attendees of training in 2023
and rigorously implements a range of
control from the entry of raw materials to product shipment, effectively mitigating potential safety and quality issues. Beyond quality-related training sessions based on
internal testing, the laboratory facilitates product compliance with safety, electromagnetic compatibility, environmental, and this plan. This includes but not limited to
noise tests according to standards. For portable oxygen concentrators, when product standards are modified or new models are medical device quality system standards
introduced, samples are sent to third-party testing institutions. Mass production proceeds only after the safety and reliability of the and regulations training, specialized quality
products are verified, maintaining a 100% pass rate for product inspections. training, and more. In the reported period,
Yuwell Medical conducted 65 quality
Stringent Quality Audits training sessions as per the annual plan, Total duration of quality training
reaching 100% of its employees. Training
To ensure the effective operation of the quality system, Yuwell Medical routinely conducts internal and external audits across all topics included medical device quality-
business lines. The Company performs annual internal audits of the quality management system, assessing various products against related regulations, quality management
applicable laws, regulations, and standards. It also hosts annual audits by external third parties and accepts audits from domestic and hours
system education, quality inspection
international regulatory bodies and partners, continuously improving the quality management system's integrity and effectiveness. processes, quality risk management, and
medical device registration.
In 2023, Yuwell Medical underwent 37 quality management system audits conducted by government regulatory agencies and external
audit organizations, achieving a 100% pass rate. This included 11 audits by third-party certification bodies, 7 audits pertaining to
medical device production quality management standards, 1 drug regulatory review, 1 audit of epidemic prevention materials
supervision, and 17 second-party audits (customer factory audits). Additionally, 23 of Yuwell Medical's products were randomly
inspected by government regulatory agencies, all passing inspection.
Product Safety Management
Yuwell Medical has developed a comprehensive product recall system and mechanisms
in compliance with the Medical Equipment Production Quality Management
Specification and The Regulation of Medical Devices Recall Administration . It has
also instituted internal management systems like the Medical Device Adverse Event
Monitoring Management System . Regular simulated recalls are conducted to validate
the effectiveness and scientific validity of the product recall management system.
Yuwell Medical adheres to relevant national and local regulations such as the Measures
for the Management of the Monitoring and Reevaluation of Medical Device Adverse
Events , and has implemented the Protocol for Active Reporting of Adverse Events .
Adverse events are actively collected and reported, with customer feedback being
assessed according to the principle of reporting at suspicion, thereby timely and
effectively managing risks post-market release of medical devices. Any incident
suspected of being an adverse event related to the medical device should be reported
under this protocol.
Product recalls in 2023
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Customer Relations At Yuwell Medical, "customers as the core" stands as one of our core values. We have
developed a comprehensive, omnichannel customer service ecosystem, grounded in
Response to Requests
Management the principle of beginning with customer needs to create a synergistic system across At Yuwell Medical, we place immense importance on customer
our entire business chain. By thoroughly understanding and integrating customer feedback. We have established a robust customer complaint
needs into all business processes, we guarantee efficient responses to customer and consultation system, accompanied by a diverse array of
inquiries, thus significantly improving overall customer satisfaction. communication channels. We have also developed the Yuwell
Medical Complaint Management Regulations to enhance the
Achieved a customer complaint
investigation, handling, tracking, and oversight of customer
Proactive Services complaints. Thorough analyses of customer feedback are
handling rate of
conducted to drive continuous improvement, ensuring that
Yuwell Medical has formulated protocols and standards, including the 400 Service Process
complaints are addressed promptly and effectively. Moreover,
and Standards , to create a distinctive customer service system. This system features multi-
the Company has implemented a unified work order service
channel front-end outreach, an integrated mid-stage collaborative platform, and a robust
platform integrating AI robots to provide real-time, high-
Recognized among the Top back-end support framework, ensuring a smooth customer service experience from
quality responses, thereby facilitating rapid human-machine
pre-sales to post-sales across all channels. The system facilitates customer interaction
collaboration in resolving customer issues. During the
through various channels, including a 400 hotline, online public accounts, apps, enterprise
reporting period, Yuwell Medical successfully managed 1,731
WeChat, and third-party stores. Moreover, it supports communication through diverse
Chinese customer complaints, achieving a resolution rate of 100%.
mediums such as phone, text, and video. Centralized around our global customer service
Service Brands in 2023 headquarters, we have established regional service centers in key cities like Shanghai,
Beijing, Guangzhou, Chongqing, Chengdu, Wuhan, and Shenyang, complemented by over
Awarded the Digital Service between the Company and our customers.
Yuwell Medical consistently conducts customer satisfaction surveys
Management Innovation
to gain comprehensive insights into customer opinions and
Award The Company is committed to providing proactive services. By leveraging digital tools,
suggestions, with the aim of continually enhancing our products
such as a unified platform on WeChat and unique product codes for individual items,
and services. Throughout the reporting period, the Company Attained a B2B customer satisfaction
Received three major awards we integrate data across the brand, users, and products. We have also developed our
carried out customer satisfaction surveys for both its B2B and B2C rate of
at the China Customer Service proprietary O2P (Product Insight and Operation) platform that performs a detailed analysis
sectors. Satisfaction questionnaires were issued to B2B customers,
Festival of user data throughout the customer lifecycle, generating a complete 360-degree user
achieving a response rate of 100%. For B2C customers, satisfaction
"Best Service Case," profile. This enables our customer service team to provide prompt support before, during,
was gauged through proactive evaluations received during customer
"Team Expert,"and and after the sale, ensuring immediate awareness of customers' current product usage,
calls, enabling timely identification and constant improvement
"Most Beautiful Customer thereby delivering intelligent, fast, and self-directed premium services.
of any issues. In 2023, Yuwell Medical implemented multiple
Service Staff."
improvement measures in response to survey findings. For instance,
To cater to the increasingly personalized service needs of our diverse user base and foster
to address dissatisfaction with services, we enhanced customer Reported a B2C customer satisfaction
stronger brand loyalty and satisfaction, Yuwell Medical offers a range of heartfelt services
service capabilities by organizing service scripts, refining typical rate of
beyond mere product support, with a strong emphasis on meticulous customer care.
case handling approaches, and providing staff training to improve
their communication skills. Additionally, for users with urgent
We provide online guidance and one-on-one video guidance services, catering to needs, we established an internal emergency response mechanism
Professional Guidance
users who require additional support (*for wearing certain products). and improved satisfaction by offering backup machines, among
other measures. To address customer demands regarding delivery
schedules, we routinely compiled problem orders for timely follow-
We offer a variety of health education materials, including recorded courses, knowledge up and coordination by dedicated personnel.
Health Education
cards, and short videos, designed to meet the diverse health needs of different populations.
Responsible Marketing
We regularly organize the 7-Day Family Blood Sugar Control Camp , offering online
solutions to the challenges of managing diabetes; we also facilitate community and social During our marketing and promotional activities, Yuwell Medical strictly adheres to the Advertising Law of the People's Republic of
Diabetic Care China among other relevant laws and regulations. We have implemented responsible marketing systems, including the Front Desk
group platforms that provide mutual assistance and communication to help alleviate the
complexities and anxieties associated with blood sugar management. Marketing Service Standards and Norms , to ensure clear mechanisms for disseminating information about products and activities.
These standards clarify the principles and guidelines for our marketing personnel during sales and promotional activities,
ensuring that our product promotions are conducted ethically, scientifically, and objectively. We utilize intelligent tools such as
For vulnerable groups such as the elderly living alone, disabled individuals, and knowledge bases and robotic corpora, which we regularly update and enhance alongside targeted training programs. This ensures
Heartwarming Service those facing economic hardships, we provide doorstep services, waivers for freight that information is communicated accurately and reliably, minimizing errors in manual transmission. Under protocols like the
and repair costs, complimentary accessories, and spare machines. Document Specification Combing Guide, we have also established robust internal audit processes and verification mechanisms,
strictly overseeing the production and external distribution of promotional materials.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.
Environmentally Friendly:
Accelerating Green and Low-Carbon
Transition
Total investment in environmental protection: RMB
Greenhouse gas emission intensity
Waste discharge compliance rate
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Enhancing Environmental Management Environmental Management Objectives
Yuwell Medical routinely assesses the environmental impact of its business operations, allocates specific environmental objectives
and tasks across various departments, actively encourages these departments to take appropriate actions, and enhances the
Yuwell Medical actively responds to national requirements for green and low-carbon development by strictly adhering to
monitoring and feedback mechanisms to track progress toward these goals. This approach of closed-loop management facilitates
environmental protection laws and regulations such as the Law of the People's Republic of China on Environmental Protection,
the ongoing enhancement of the Company's environmental protection performance.
Law of the People's Republic of China on Water Pollution Prevention and Control, Law of the People's Republic of China on
the Prevention and Control of Atmospheric Pollution, Law of the People's Republic of China on the Prevention and Control of
Environmental Pollution by Solid Waste, and Energy Conservation Law of the People's Republic of China , among others. Following Management Policy
the standards of the ISO 14001 Environmental Management System and ISO 50001 Energy Management System, we have established Compliance with environmental laws, pollution prevention and management, assurance of continuous improvement, and
an environmental management system and developed guidelines such as the EHS Management Manual . We integrate the concept enhancement of management performance
of green development into our operations, enhance monitoring, and continually improve to maximize competitive strength while
minimizing environmental impact. During the reporting period, Yuwell Medical did not experience any environmental pollution Objectives Indicators Achievement Status
incidents, face any administrative environmental penalties, or encounter any major environmental accidents.
Manage solid waste through categorized Waste classification rate ≥ 90%, hazardous waste control at
Achieved
collection and unified treatment 100%, recyclable waste management at 90%
Total investment in environmental Annual environmental Coverage rate of environmental Implement noise reduction measures to minimize Compliance with Class 3 standards of GB12348-2008 Emission
protection: RMB incidents protection training the impact on the external environment, ensuring Standard for Industrial Enterprises Noise at Boundary ; Achieved
no stakeholder complaints Daytime ≤ 65 decibels, Nighttime ≤ 55 decibels
boundary within acceptable standards without
external complaints
Compliance of fugitive emissions of particulate matter at
the boundary with the Integrated Emission Standard of Air
Pollutants
Achieved
Implementation of separate systems for rainwater and
Ensure the discharge of domestic sewage sewage in the facility area, with domestic wastewater
Achieved
meets regulatory standards meeting discharge standards after undergoing
EHS Management System
treatment in septic tanks
Yuwell Medical has established a three-tier EHS management structure, systematically assigning responsibilities. The General
Enhance the greenery coverage of the factory Achievement of a 15% greening rate within the factory
Manager serves as the primary responsible officer for environmental protection, and is tasked with overall planning and Achieved
area to improve the environment premises
coordination of the Company's EHS management efforts. A designated manager's representative is responsible for developing
plans to ensure the establishment, implementation, and maintenance of the EHS management system and reports to the General
Manager. Each functional department is responsible for implementing the provisions and requirements of the Company's EHS Environmental Risk and Emergency Management
management system to ensure the realization of EHS management policies and objectives. EHS management objectives are
Yuwell Medical has developed systems such as Identification, Evaluation, and Control Procedures for Environmental Factors
incorporated into the performance evaluation of management, with a veto policy in place for significant adverse environmental
and Management, Review, and Control Procedures . The Company proactively manages environmental risks and conducts
events. These objectives, once broken down and allocated to relevant departments, are linked to the performance evaluations of
hazard assessments, constantly identifying and updating risk points and maintaining detailed risk registers. Through robust risk
department heads and relevant employees.
control measures, it ensures that critical environmental risks are managed effectively according to set standards. The Company
adheres strictly to protocols such as the Classification Method for Environmental Accident Risk of Enterprise (HJ941-2018) and
has developed Emergency Preparedness and Response Procedures and Emergency Plans for Sudden Environmental Incidents .
Comprehensively lead the Company's EHS management, organizing the development of EHS Extensive emergency response drills are performed to ensure rapid and effective control of unexpected environmental incidents.
policies and objectives, ensuring resources for the effective operation of the EHS management
General Manager system, and preventing and managing overall environmental risks. Environmental Management System Certification and Audit
Yuwell Medical consistently advances the development and certification of its
environmental system, promoting a standardized and systematic approach to EHS
Assist the General Manager in establishing, implementing, and maintaining the EHS management management. The Company has obtained ISO14001 Environmental Management Yuwell Medical has obtained
system, ensuring the realization of EHS policies and objectives; organize risk opportunities and System certification and has been certified as a Green Factory in Jiangsu Province. It ISO14001 Environmental
Manager's assessments, planning response measures; lead the investigations and handling of significant undergoes annual ISO system supervisory audits and triennial recertification audits Management System
Representative environmental and safety incidents. conducted by third-party certification bodies. certification
The Company conducts comprehensive internal environmental audits, cross-
departmental reviews, and strict self-assessments regularly. Every quarter, third-party Yuwell Medical has been
professional organizations are engaged to audit the environmental management certified as a Green Factory
Execute the stipulations and requirements of the Company's EHS management system, ensuring
system, ensuring thorough monitoring of its operational status and environmental in Jiangsu Province
Functional related tasks are carried out, and achieving the EHS management policies and objectives.
performance. During the reporting period, Yuwell Medical completed 4 environmental
Departments
reviews across all its facilities and conducted 4 third-party environmental audits.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Green Product Design Addressing Climate Change
Yuwell Medical integrates the concept of green innovation into its product development, actively employing new materials,
equipment, processes, and technologies across packaging design, production, distribution, transportation, and sales. This strategy
Climate Risk In accordance with relevant policies, regulations, international initiatives, and trends,
Yuwell Medical keeps improving its ability to manage climate risks and opportunities,
fosters miniaturized, lightweight, low-energy, and environmentally friendly designs, delivering superior, eco-friendly products. Management thereby enhancing its climate resilience.
Integrated, Lightweight, Low-Energy Design
Risk Type Risks, Opportunities, and Potential Impacts Response Measures
We prioritize the recycling and reuse of materials by utilizing For integrated fetal monitors, we employ a unified design
the reuse of mesh atomizer packaging liners, implementing that eliminates connecting spring wires, reducing the overall • The increase in extreme weather
a shared design for wheelchair frame components, and size of the machine and resource consumption. We prioritize events such as extreme heat,
adopting an integrated platform design for the electronic shared material use and incorporate internal integration Extreme Weather severe cold, torrential rains, and • Strictly control EHS and supply chain risks,
sphygmomanometer product line, all aimed at enhancing and lightweight designs to enhance the efficiency of space typhoons could affect business and enhance emergency management.
the spatial efficiency of our products. utilization in our products. continuity.
• Assess regional climate risks during project
selection and planning.
• Increase production efficiency through
• A rise in average temperatures energy-saving technological improvements
could increase operational costs and optimization of the energy structure.
Physical Risks Temperature Rise
for company infrastructure and
pose health risks to employees. • Keep abreast of global scientific
advancements related to diseases caused
We employ a lightweight motor design in our electric wheelchair products and have developed pocket battery applications.
by climate change and enhance research
in products and technologies.
Disease • Climate change may elevate the
Green and Healthy Materials Green Packaging Epidemics risk of transmitting epidemics.
We rigorously control hazardous substances such as mercury, We aim to maximize the simplification of packaging while
lead, cadmium, and hexavalent chromium by selecting maintaining product safety, continuously enhancing the
materials compliant with the ROHS directive, thereby reducing utilization of packaging materials through internal recycling • Stay updated on policy changes, ensure
• Increasingly stringent national compliance with new regulations, and
potential harm to human health. and resource reuse. For instance, we replace foam liners
Policy and policies and requirements may proactively adapt to policy shifts.
with recyclable air cushion bags made of LLDPE/NYLON co-
We select packaging suppliers and products that adhere Regulatory Risks lead to higher costs and tighter
extruded film to reduce the use of plastics and substitute
operational constraints. • Monitor developments in the carbon
to environmental certification standards, like ISO14001 traditional foam packaging.
market and prepare accordingly.
Environmental Management System certification, to ensure
that the packaging materials meet stringent environmental We choose recyclable, biodegradable, or reusable packaging
guidelines. materials, such as paper, cardboard, and biodegradable
plastics, to minimize environmental impact.
• Intensify R&D in low-carbon technologies
• The growing demand for carbon and products, and strategize for green
Case Transitional and smart transitions by capitalizing on
Turnover Box Project in Collaboration with SF Express reduction in the value chain and
Risks opportunities in clean technology.
the emergence of new low-carbon
Market and technologies and alternatives may • Design carbon reduction pathways and
Yuwell Medical aligns with the national 14th Five-Year Plan for Circular Economy Development . During the R&D stages, the
Technological obsolete current technologies or implement new materials, equipment,
Company considers packaging reduction and other factors. To address the issue of excessive packaging waste from individually
Risks products. Adopting green industries processes, and technologies. Thoroughly
packaged small consumer items, Yuwell Medical has partnered with SF Express on the Turnover Box Project. The turnover box
and technologies can boost product assess the investment returns and
design accommodates a substantial volume of items and features stackable functionality. This initiative offers several benefits.
competitiveness, albeit at increased feasibility before launching low-carbon
First, it reduces the use of packaging materials for consumer deliveries, thus preventing over-packaging. Second, it decreases
costs of low-carbon transition. transition projects and select the optimal
the packaging weight for the same shipment volume, which in turn lowers energy consumption and carbon emissions during
transit. Third, the turnover boxes are designed to be reused up to approximately 40 times and are either compressible or solutions based on reality.
collapsible to save space, facilitating efficient and circular resource use. This substantially lowers both waste disposal costs and the
environmental footprint.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Energy and Carbon Advancing its energy management in alignment
with the ISO 50001 Energy Management System
Energy Management Strategy
Management standards, Yuwell Medical develops guidelines
Yuwell Medical is spearheading the development of a comprehensive big-data platform for energy management. This platform
integrates data collection, process monitoring, and energy management into a unified system that utilizes various levels of
such as the Energy Management System Manual , Yuwell Medical's parent
metering equipment for centralized monitoring of diverse energy media and key energy-consuming devices. This integration
strengthens its energy management framework, sets company has obtained
facilitates a seamless closed-loop management system spanning energy planning, statistics, analysis, and assessment, ensuring
energy-saving goals, and conducts energy audits. ISO 50001 Energy
the energy system operates safely, reliably, economically, and efficiently. This transformation shifts energy management practices
The Company actively adopts new energy-saving Management System
from empirical to analytical and from manual processes to digital solutions.
technologies, processes, and materials, constantly certification
enhancing its level of energy management. The
energy management objectives are annually updated
Monitoring Integration Energy Indicators
and integrated into performance assessments.
Energy Management Goals
Energy Forecasting
Energy Decision-making
Control Adjustments
Thematic Analysis
Performance Evaluation
Statistical Accounting
Indicator Goal Requirements Achievement Status
Comprehensive Energy 5.66 kg standard coal/RMB Energy Planning
≤ 6.08 kg standard coal/RMB10,000
Consumption per Unit of Output 10,000
Efficiency ≥ 85%, pressure ≥ 0.75, exhaust temperature Pressure 0.75, exhaust
Air Compressor
<100° C temperature 80° C
Power Supply and Distribution Power factor ≥ 96%, line loss rate < 5% Power factor 97%
Ground Source Heat Pump Efficiency COP ≥ 5.4 Efficiency COP ≥ 5.6
Grounded in statistical accounting and enhanced by monitoring integration, this strategy oversees the implementation
Screw Chiller Efficiency COP ≥ 5 Efficiency COP 5.3 of energy plans, incorporates control adjustments, and intensifies thematic analysis centered on energy indicators, thus
supporting energy forecasting, decision-making, and performance evaluation.
Note: The statistics are based on Yuwell Medical's parent company.
Energy Energy Decision- Pre- In-process In-process Post- Post-
Forecasting making planning Accounting Control analysis assessment
Indicator Unit 2023
Gasoline Tons 76.40
Diesel Tons 33.27
Energy
Natural gas Cubic meters (×10,000) 86.23
use and
greenhouse Outsourced electricity Kilowatt-hours (×10,000) 3,492.32
gas emissions
Total energy consumption Tons of standard coal 5,600.27
Tons of standard coal/RMB
Energy consumption intensity 0.0070
Direct greenhouse gas emissions (Scope 1) Tons of CO2 equivalent 2,201.36
Indirect greenhouse gas emissions (Scope 2) Tons of CO2 equivalent 19,916.69
GHG
Emissions Total greenhouse gas emissions (Scope 1 and 2) Tons of CO2 equivalent 22,118.05
Tons of CO2 equivalent/RMB
Greenhouse gas emission intensity 0.0277
Note: The greenhouse gas emission indicators follow guidelines from the World Resources Institute (WRI) and the World Business Council for
Sustainable Development (WBCSD), including GHG Protocol and Specification with Guidance at the Organization Level for Quantification and
Reporting of GHG Emissions and Removals. The emission factor for outsourced electricity in the Scope 2 category, according to the notification by
China's Ministry of Ecology and Environment (HBQHH [2023] No. 43), is 0.5730 CO2/MWh.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Optimizing Energy Usage Structure Reducing Environmental Impact
Water Resource
Through initiatives such as expanding photovoltaic power Yuwell Medical primarily employs municipal water for both production
generation and acquiring green electricity, the proportion of and office purposes, situating its major production and operational sites
clean and renewable energy usage is gradually increased. Management in regions with low water resource risks. The Company rigorously adheres
to the Water Law of the People's Republic of China , as well as local laws,
Nine rooftop areas at our factory site have been utilized regulations, and standards. The Jiangsu Yuyue Medical Equipment &
for the 5.724MWp Distributed Commercial and Industrial Supply Co., Ltd. Water Conservation Management System has been
Photovoltaic Power Station Project, generating 7.605 formulated, alongside the management of water use planning. This
million kilowatt-hours of electricity in 2023. encompasses the development of water-saving and annual water use
plans, the assignment of responsibilities to key water departments, and
Yuwell Medical's cafeteria has transitioned to using clean the designation of dedicated personnel for management. Additionally,
energy natural gas instead of electricity and liquefied Yuwell Medical actively promotes production process optimization,
petroleum gas, further supplemented by solar energy to The Heyang photovoltaic project, with an installed capacity of equipment process enhancements, and the sustainable utilization of
reduce electricity consumption. water resources. During the reporting period, Yuwell Medical conducted an
evaluation of water-saving enterprises in accordance with the Evaluating
Guide for Water Saving Enterprises (GB/T7119-2018), successfully meeting
all basic requirements, management assessment indicators, and technical
Technological Energy Savings specifications, thus earning classification as a water-saving enterprise.
High-energy-consuming, inefficient, and outdated equipment Regular inspections and maintenance activities are carried
is replaced with systems that incorporate more efficient out based on detailed supply and drainage network
production technologies and processes, enhancing energy diagrams and metering networks. Original records and
utilization and reducing operational emissions. statistical ledgers are regularly standardized and analyzed.
Quota
Internal quota management is enforced, incorporating
Management
All operational sites are equipped with intelligent central energy rewards for savings and penalties for exceeding.
Water intake
systems, creating a low-consumption, comfortable environment.
The implementation of frequency conversion projects for
chiller units has transformed traditional fixed-frequency chillers
into variable-frequency units, achieving an annual reduction of
construction and technological upgrades, encompassing
the utilization of water-saving equipment. Advanced
foreign spray equipment is procured to automatically
Water-saving detect greenery conditions and irrigate as necessary,
Workshop lighting has been entirely upgraded to energy- Renovation thereby enhancing water resource utilization while
efficient fixtures, achieving a 100% usage rate. This is Water consumption intensity
ensuring the preservation of green spaces.
complemented by zoning and group controls to minimize
electrical waste further.
tons/RMB 10,000 revenue
Rainwater collected in rainwater collection tanks is
directed to the factory pond to irrigate factory greenery.
Energy Saving Management
Rainwater Through the collection of natural rainfall, 1,250 tons of
Reuse water can be conserved annually.
Leveraging information technology and big data analysis, we perform real-time monitoring of energy consumption status, unit Recycled water volume
energy data, trends, and operational parameters through the smart energy online monitoring system. This helps guide and fine-tune
production, management, and processes efficiently, ensuring precise energy control.
Regular water-saving education campaigns are conducted
tons to disseminate knowledge regarding water-saving laws,
Real-time energy consumption monitoring: We collect and Energy visualization analysis: We conduct in-depth analysis
regulations, methods, provisions, and standards, as well
analyze the energy consumption of major equipment in of energy data to discern consumption trends and changes
Water-saving as to popularize water-saving scientific knowledge and
real time through our online monitoring system, promptly across various areas and time periods. This helps us
Promotion enhance water-saving awareness among all employees.
identifying unusual consumption patterns. identify opportunities for energy-saving improvements and
develop more effective energy-saving strategies.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Emissions and Waste Management Hazardous Waste
Yuwell Medical adheres to a clean and green production and operation model, strictly adhering to relevant laws and regulations
Hazardous solid waste includes filter bags, sludge, activated carbon from exhaust gas treatment, filter cotton waste, packaging
such as the Regulation on the Administration of Permitting of Pollutant Discharges . The Company has developed an EHS
drums containing chemicals, waste machine oil, emulsion waste, oil sludge, etc. The Company sets up hazardous waste
Management Manual to rigorously manage exhaust gas emissions, wastewater discharge, and solid waste disposal. Pollution
warehouses with waterproof and anti-leak measures. Hazardous waste is classified, stored temporarily, and supervised by
prevention facilities are concurrently designed, constructed, and put into operation with main projects. Qualified third-party
dedicated personnel according to the Standard for Pollution Control on Hazardous Waste Storage (GB18597-2023). Qualified
testing agencies are regularly commissioned for self-monitoring, and environmental monitoring information is promptly disclosed
units with professional disposal qualifications are regularly commissioned to safely and effectively dispose of hazardous waste,
to ensure a 100% compliant discharge of all types of waste and to minimize the environmental impact of emissions. During the
with transfer forms synchronously submitted to the national management platform upon completion.
reporting period, no significant environmental incidents occurred, and no administrative penalties or criminal liabilities were
imposed by relevant ecological and environmental departments due to major environmental incidents. Moreover, there were no
instances of exceeding emission standards or illegal discharge of exhaust gas or wastewater pollutants.
Total discharge of hazardous waste Annual reduction in hazardous waste by collaborating
with comprehensive utilization and disposal entities
Waste emission target for 2024: Reduce
Achieved 100% 2.5%
compliance in wastewater, exhaust gases,
per-unit product emissions by
compared to 2023
tons
and noise emissions in 2023
Wastewater Management
Wastewater primarily originates from domestic sewage, R&D, and manufacturing. Yuwell Non-Hazardous Waste
Medical strictly complies with the Law of the People's Republic of China on Water Pollution
Prevention and Control, Integrated Wastewater Discharge Standard, The Reuse of Urban
Non-hazardous solid waste includes scrap metal scraps, metal dust, welding slag, filter cores, resin powder, activated carbon
Recycling Water-Water Quality Standard for Industrial Uses, and local standards. A
from wastewater treatment, and general material packaging drums. The Company achieves paperless operations by displaying
Wastewater Management System has been formulated to enhance online monitoring and
real-time material inventory receipts and issues via wireless electronic ink screens. General production solid waste is collected
regular inspections, enforce strict discharge management of wastewater generated during Wastewater discharge volume
and recycled as renewable resources by waste collection stations. For domestic solid waste and household garbage, it is
production operations, and ensure compliance with sewage treatment, discharge, and
collected uniformly and regularly cleared by the sanitation department.
recycling regulations. The Company implements a rainwater and sewage diversion system,
directing rainwater into the municipal rainwater drainage network, with part of the production
wastewater recycled for production and the remainder discharged externally. High-
concentration organic wastewater from production undergoes pretreatment and is combined tons
with various cleaning waters and alkaline scrubber wash wastewater into a mixing tank. After
Total discharge of non-hazardous waste Comprehensive utilization rate of general solid waste
harmless treatment, 60% of the wastewater is discharged into the municipal sewage network,
while the remaining 40% enters the recycled water treatment system. Once treated to meet
standards, it is reused for production line rinsing, saving 4,380 tons of water annually.
tons
Exhaust Gas Management
Exhaust gas emissions mainly comprise volatile organic compounds, nitrogen oxides, sulfur oxides, and particulate matter generated
during the production process. Yuwell Medical strictly complies with the Law of the People's Republic of China on the Prevention and
Control of Atmospheric Pollution and local atmospheric pollutant emission standards. Following the management requirements of
the internal Exhaust Gas Management System , the overall emissions of the factory area are controlled to ensure compliance after
treatment by the exhaust gas treatment device. Monitoring sampling holes are installed at emission outlets to regularly monitor key
parameters such as gas composition, concentration, and flow rate, thereby preventing risks of exhaust gas emissions.
Solid Waste Management
Yuwell Medical strictly adheres to the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution
by Solid Waste and requirements of other relevant laws and regulations, formulating the General Solid Waste Management System
and Hazardous Solid Waste Management System . It establishes rigorous solid waste disposal processes and safety operation
standards, follows the principles of reduction, resource utilization, and harmlessness, and controls waste rigorously throughout the
entire process from production, storage, and transportation to disposal. During the reporting period, the Company did not experience
any illegal events related to waste disposal.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Talent-oriented:
Achieving the Value of Life
Average annual training duration per employee
Proportion of female employees in middle and senior management
Charitable donations: RMB
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Growing Together with
Employees
Yuwell Medical views human capital as a primary driver of
sustainable development. We are dedicated to providing
high-quality, cost-effective services to customers, continually
enhancing our core competitiveness, and achieving sustainable,
positive growth. We concentrate on talent acquisition and
retention, refining our compensation and performance systems,
respecting employees' rights and interests, and fostering a
favorable, open work environment. We ensure the health and
safety of our workplace, promote our strategic talent reserve
plan, and clarify dual career paths for employees. We commit
to transparent and fair practices in talent identification and
selection, actively develop and enhance employee skills,
enabling them to leverage their strengths and add value. We aim
to create a nurturing environment, offering care and support
to our employees, promoting growth in a diverse and inclusive
setting, and achieving mutual integration and success between
employees and the enterprise.
Talent Acquisition and Retention
Talent Attraction
As a talent pool for our future management trainees, we systematically advance our annual recruitment
Aligned with strategic and business planning, Yuwell Medical developed multiple management systems, including the Employee
plans for fresh graduates and interns, proactively connecting with over 30 universities nationwide.
develops medium- and long-term human resources plans Handbook and Yuwell Medical Recruitment Management System ,
Campus Through a blend of online and offline recruitment efforts, we offer competitive career development
and actively explores talent management strategies. We to standardize recruitment and onboarding processes, eliminate all
Recruitment opportunities to recent graduates.
precisely target talent acquisition channels through campus forms of discrimination and bias, and ensure the legality, fairness,
recruitments, online platforms, and internal referrals, while and equity of the recruitment process. In recent years, Yuwell
deepening our talent retention strategies to cultivate a Medical has achieved significant success in talent recruitment We actively partner with external professional recruitment websites to display crucial information about our
professional, international workforce. and management, earning accolades such as Best Employer of company culture, values, and work environment. By showcasing our corporate brand, employee work styles,
Online
the Year, Outstanding Human Resources Management Award, and benefits, training opportunities, and promotion channels, we keep enhancing our attractiveness as an employer.
Channels
Yuwell Medical adheres strictly to the Labor Law of the Most Talent-Loving Employer.
People's Republic of China and the Labor Contract Law of
the People's Republic of China , among other relevant laws Yuwell Medical has attached importance to employee needs. Considering the dynamics around our global manufacturing base in Danyang, we actively bolster our
and regulations. We have established systems for internal As our team has expanded and become younger in recent local employer brand through regional talent networks and community outreach, efficiently meeting our
Regional
referrals, internal competitions, and rehiring employees, years, the Company has grown and created open, flexible office recruitment needs for general labor.
Channels
adhering to principles of openness, fairness, comprehensive spaces, fostering a modern, liberating work environment. This
assessment, and both moral and technical excellence. These setting enhances comfort, facilitates communication, and boosts
systems provide employees with platforms to showcase collaboration, dedicated to providing employees with a physically We have established systems for internal referrals and competitions, encouraging employees to
their talents. During the recruitment process, the Company and emotionally gratifying, safe, and healthy work experience. recommend competent and ethical colleagues, allowing more employees with both moral and technical
Internal
rigorously complies with local laws and regulations, and has skills to emerge.
Channels
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Labor Rights and Interests
Regarding campus recruitment, Yuwell Medical has recruited over 250 new graduates since 2021. In 2023 alone, we employed more Yuwell Medical adheres to national laws and regulations, including the Labor Law of the People's Republic of China, the Company
than 166 interns and fresh graduates, with 42 entering our 2023 Management Trainee Program. The Company and its subsidiaries Law of the People's Republic of China, and the Labor Contract Law of the People's Republic of China , as well as relevant
systematically advance recruitment plans for new graduates and interns, actively engaging with prestigious domestic universities conventions of the International Labour Organization. The Company has formulated internal protocols and implementation rules,
such as Nanjing University, Southeast University, China Pharmaceutical University, Nanjing University of Science and Technology, including the Anti-Discrimination Management Procedure,
Nanjing Medical University, and Soochow University. These efforts lay the groundwork for building our talent pipeline. Labor Employment Procedure, Special Working Environment
Assessment for Female Workers, Management of Child and
Furthermore, to expand the scope and depth of our collaboration with universities and drive high-quality integration of industry Minor Workers, Yuwell Work Injury Management Measures ,
and academia, the Company actively collaborates with universities and research institutions on R&D projects. We have established and Employee Handbook . These measures aim to comply
employment and internship bases in partnership with institutions such as Beijing Institute of Technology, Southeast University, with human rights protection policies and regulations, Labor contract signing rate Number of
University of Shanghai for Science and Technology, Hohai University, Nanjing University of Posts and Telecommunications, and clarify the code of conduct and requirements for employees, discrimination incidents
Jiangsu University. These collaborations include joint technical research institutes, facilitating the rapid transformation and prevent potential human rights risks, and provide reliable
implementation of advanced achievements, and promoting innovation within the industry. protection for employees' rights and interests.
Employee Compensation and Incentives
Number of employees recruited during the reporting period Number of newly recruited graduates
Complying with the Labor Law of the People's Republic of China , Yuwell Medical aligns with the Company's "performance-
evidenced" culture and management requirements to organize and establish the Interim Measures for Yuwell Medical's
Compensation Management System . This system is constructed around business characteristics and performance-driven
evaluation and incentive mechanisms, constantly improving compensation management and bonus distribution plans to ensure
employees are fairly compensated in relation to their work outcomes.
The Company's compensation system consists of a fixed salary, variable performance bonuses, and long-term incentives, linked
through a mechanism that correlates with company performance, organizational effectiveness, and individual employee results.
Employee Distribution by Gender
Employee Distribution by Age Variable performance bonuses and long-term incentives are aligned with company and departmental performance targets, set
according to employee role categories and output contributions, effectively driving employees to meet performance objectives and
Below 30 years old performance, the compensation plan is determined to enhance the overall competitiveness of the Company's remuneration.
Male Additionally, Yuwell Medical has established an employee stock ownership plan for core staff, offering stock incentives that align
Female
long-run development, fostering a positive organizational culture, and promoting sustained and effective growth.
Employee Communication
Yuwell Medical respects the rights of its employees to participate, express themselves, and oversee operations. We facilitate
Employee Distribution by Hierarchical Level Employee Distribution by Education
various platforms for this, including face-to-face communication with the Chairman, 360-degree evaluations for management,
Employee Complaint Management Procedure, Yuwell Medical Supervision Management Measures , and Yuwell Medical Reporting
Senior management Bachelor's degree or above Management System , to provide avenues for communication, dialogue, and appeal. Employees are encouraged to contribute ideas
and suggestions on company management to ensure mutual understanding and address their needs. The Company maintains
Middle management College degree
strict confidentiality regarding employee complaints, reports, and grievances, prohibiting any retaliation against legitimate
Grassroots employees Below college degree complaints. Violations of this policy will result in disciplinary action, and severe cases may lead to legal consequences.
Internal Publication This platform disseminates company developments, product information, management
Yuwell New Horizon strategies, and shares employees' exemplary deeds and insights.
Employee Distribution by Region
for Management and collaborators to gather extensive feedback on the manager.
Chinese employees (including Face-to-face The Chairman and General Manager engage in direct communication with key employees
employees from Hong Kong, Communication Meetings from various departments, fostering open discussions on organizational, business,
Macao, and Taiwan) with the Chairman cultural, and other topics while attentively listening to employees' opinions.
Employee Forum This platform enables all employees to express themselves freely, with an official account
"Fish Pond" designated to provide unified and timely responses to topics of employee concern.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Yuwell Medical places great importance on listening to employees' voices and has
established a robust communication and feedback mechanism. Since 2020, the
Employee Training and Development
Employee satisfaction rate
Company has conducted annual organizational climate surveys, comprehensively At Yuwell Medical, we prioritize the professional growth of our employees by establishing a fair platform for their development.
listening to employees' genuine voices and demands across six dimensions: "job We consistently enhance our talent cultivation framework, devise and enact policies that support career advancement, and create
responsibilities, supervisor support, team collaboration, cultural identity, business opportunities for internal mobility. We encourage self-motivated and collaborative learning, champion the concept of lifelong
processes, and learning & growth." The feedback rate for 2023 was 84.6% (a 12.6% education, and thus elevate the professional competencies, skill sets, and overall management capabilities of our staff.
increase from the previous year), with an employee satisfaction rate of 83.6% (a 5%
increase from the previous year). Through continuous internal feedback, exposure,
and resolution of management issues at all levels, the Company has been improving Employee Training System
its management level, enhancing employee experience, and fostering collaborative
development between the organization and its employees. In alignment with the Company's strategic focus on customer orientation, digitization, and youth engagement, Yuwell Medical has
established the Yuwell Learning Development Center to continually bolster the competitiveness of our talent. By collaborating
closely with various business units and leveraging online learning platforms, we have created professional and management talent
cultivation systems tailored to the Company's future strategic needs, including systems for new hires (via social recruitment and
management trainee programs). Our learning solutions, integrating training and practice across diverse formats and scenarios,
constantly boost employee engagement and learning efficiency, enhancing their professional and managerial skills.
Talent Development Channels
Yuwell Medical adheres to a talent strategy primarily focused on internal development supplemented by external recruitment.
Relying on three major talent cultivation systems, we have constructed a dual-channel talent development framework. This assists
employees in aligning their individual characteristics with both professional and managerial growth, better fitting their personal
career goals and organizational needs. For professional roles, we have established a qualification system and customized various
Welfare Guarantee
talent development programs to help employees clarify their positioning and capability gaps, planning personalized development
Building upon the national basic social security system and tailored to the Company's paths. For management roles, we consistently conduct talent reviews aligned with business planning, and develop layered
specific circumstances, we keep enhancing our welfare offerings, ensuring a robust management training programs by combining training with practices. This approach selects and trains reserve leaders while
and diverse package for our employees. We procure accidental injury insurance for our enhancing the leadership skills of current managers.
workforce, support those in need with government subsidy applications, and promote
the integration of talent within the community. Apart from statutory holidays and annual
Leadership Professional Capabilities
leave, we offer additional home leave for expatriate employees and arrange for annual
physical examinations, holiday gifts, sick leave allowances, and team-building activities,
all in the pursuit of fostering a supportive and nurturing work and life environment.
Management talent Professional talent
Moreover, the Company encourages employees to pursue academic and professional skill Leadership R&D
cultivation system cultivation system
advancement during their spare time, reimbursing tuition fees for educational endeavors. Pioneering
Presently, we have sponsored 25 individuals for further education, empowering
Senior manager Wharton study tour Departmental team building
employees with greater opportunities for career development and advancement.
Marketing
Sustaining High-potential talent development Professional skills training
Progress
Marriage Marriage Leave Educational Advancement, Professional
Learning On-the-job leader training Position certification training
Skill Enhancement
Production
Setting Sail
Housing Housing Provident Fund New manager transition Professional learning maps
Social Medical Insurance, Employer
Insurance
Liability Insurance
Annual Physical Examinations, Sick Leave Embarking Functionality
Health Holiday Events, Game Competitions,
Allowance, High-Temperature Allowance New Hires Training System (Social Recruitment & Management Trainees)
Activities Basketball Competitions, Annual Meetings,
Family Open Days, Team Building
Prenatal Check Leave, Maternity Leave,
Childbirth
Paternity Leave, Parental Leave
Commemorative Gifts, Retirement Course Resource Management Instructor Team Management Training Project Management
Retirement Commemorative Certificates, Social
Festivals Holiday Gifts Pension Insurance
Online Learning Platform: Yuwell Academy
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Talent Cultivation Projects Leadership Training
Yuwell Medical develops distinctive talent cultivation programs with a product-oriented mindset, integrating training with real- Yuwell Medical remains committed to the internal selection and development of its leaders. Through a variety of educational
world challenges. Based on management levels, we have established four major training plans: Embarking, Setting Sail, Sustaining methods, including in-house course development, training and practical exercises, and overseas study tours, we have established
Progress, and Leadership Pioneering, covering new hires/management trainees, grassroots leaders, high-potential talents, and tiered management training programs to enhance leadership skills and strategic insight.
middle-to-senior managers, conducting personalized training activities. We primarily utilize internal courses and instructors,
supplemented by external resources. Through internal instructor development, we summarize business and management
Case
expertise, consolidating and replicating exceptional organizational experiences and capabilities. Additionally, by inviting external Yuwell Medical's Wharton Study Tour Program
industry experts to teach and visiting external companies, we assimilate superior business and management knowledge.
Collaborations with universities and research institutions help attract and develop high-quality talents, enhancing the employer In line with the Company's internationalization strategy and aiming to enhance the global leadership capabilities of its top executives,
brand and our research capabilities. Yuwell Medical has established a strategic partnership with the University of Pennsylvania's Wharton School, one of the world's leading
business schools. Together, we have launched the Yuwell & Wharton Global Leadership Program to provide the Company's senior
management with a platform for learning world-class business expertise. The program is conducted in the form of study tours, leveraging
Investment in Employee training: RMB Total attendance of training throughout the year the expertise of the faculty team from the Wharton School of
the University of Pennsylvania. It offers training and learning
development, technological innovation, and cutting-edge
medical knowledge. By the end of 2023, the program had
successfully completed two phases, engaging more than 50
senior executives and top talents within the Group. Furthermore,
Total training duration Annual average training hours per employee we support employees in pursuing part-time graduate studies
or MBA programs. Employees who successfully pass their exams
and get accepted will have their training costs covered by the
hours Company, which motivates them to continually enhance their
hours
skills and achieve personal growth.
New Employee Training
Professional Training
Yuwell Medical prioritizes the development of new employees. By implementing the online New Employee Learning Program,
we quickly engage with employees upon their onboarding to ensure they promptly acquire essential corporate knowledge. Yuwell Medical conducts specialized professional training across its R&D, production, and marketing systems. For key roles, we
Additionally, through offline group training sessions, we help new employees systematically learn about our business processes create job-specific learning paths and specialized training projects to help employees improve their core competencies and
and product knowledge, facilitating their understanding and integration into our corporate culture. In 2023, we conducted 55 new teamwork abilities, thereby infusing new energy into business development.
employee training sessions, covering over 1,300 new hires.
Case
Qualification and Capacity Building in the R&D System
Case Yuwell Star Program
In order to boost the Company's product R&D capabilities, the Yuwell Learning and Development Center has spearheaded the
creation of a tailored training program. This initiative draws from the development and evolution case studies of the Company's
The Yuwell Star Program is the Company's management trainee initiative, a key project to attract innovative talent and cultivate
products and focuses on hands-on training projects to deliver targeted skill development. In our R&D system, we have established
future core leaders. The program includes various training forms such as Pre-employment Online Classes, Yuwell Star Program
a professional qualification framework and a job learning roadmap to help R&D specialists enhance their specific skills and
Onboarding Bootcamp, Dual Mentorship in Business +BP, and the Yuwell Star Program Career Advancement Camp. With an OMO
expertise. Training for key operational personnel is managed by the team managers, and employees can only begin their duties
(Online-Merge-Offline) hybrid training model, we consistently support the growth and development of management trainees,
upon passing the required evaluations. For certain specialized positions, certification is required, with credentials issued by third-
aiding their professional advancement and career transition.
party organizations or obtained through pre-job training.
As of the end of 2023, the Company had successfully In 2023, our R&D system conducted two sessions of the
developed more than Excellent Project Manager Training Camp for key roles of R&D
project managers. This program focused on building core
competencies in project management, team management,
product line planning, and system design. By employing a
management trainees from variety of methods including lectures, hands-on practice,
campus recruitment, with many of them now periodic evaluations, skill discussions, and case studies, the
occupying key positions within the Company. training helped project managers quickly master essential
job skills and improve their job competency.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Academic Exchange Performance Evaluation and Feedback for Employees
Yuwell Medical prioritizes research funding and vigorously engages in academic exchanges with external research bodies and Yuwell Medical is committed to building a performance-oriented to protect the rights and interests of all employees and ensure
higher education institutions. In 2023, we collaborated with external professional organizations and invited leading industry experts corporate culture that fosters a positive working atmosphere the objectivity, fairness, and integrity of the performance
as guest lecturers to conduct numerous external exchanges and training sessions for various departments and subsidiaries within and shared values. Performance management serves as a management system.
the Group. These efforts significantly contributed to sparking team innovation, expanding the vision of our technical staff, acquiring crucial link in executing operational plans and aligning them
the latest advancements, and enhancing knowledge exchange and sharing among our employees. with corporate strategies. Annually, the Company breaks down For mid and senior-level employees, Yuwell Medical implements
its strategies, ensuring they are implemented at every level a 360-degree evaluation system. The assessment includes
of the organization, from departments to teams, and down distributing survey questionnaires to the evaluated individuals'
Case to each employee. This structured approach guarantees that supervisors, colleagues, subordinates, and collaborating
Health Management and Respiratory Oxygen Therapist Training Course
both individual and departmental performances align with departments. This system is divided into three main stages,
the organizational strategic goals. Ultimately, this converts covering the entire process of the performance evaluation
The Yuwell Learning and Development Center, in collaboration
corporate strategies into daily activities for each employee, system to enhance the fairness of performance assessments.
with the Medical School of Jiangsu University, has assembled
ensuring the successful implementation and achievement of In the preparation phase, differentiated survey questionnaires
a distinguished team of professors from Jiangsu University
desired outcomes. are designed based on the assessment objectives for various
and experts from the medical industry to conduct the Yuwell
groups; all related individuals, including evaluators and those
Medical Health Management and Respiratory Oxygen Therapist
The Company actively promotes a correct understanding being evaluated, are introduced to the 360-degree tools. During
Training Course. The training course concentrated on the
of performance management among all employees by the assessment phase, the process is conducted anonymously
treatment of home respiratory and oxygen therapy, along with
establishing effective communication mechanisms and to strictly maintain privacy rights and the confidentiality of
chronic disease management, from both domestic and global
thoroughly disseminating its principles. For high-performing assessment reports, fostering a relaxed and free assessment
perspectives. It presented scientific theories, dissected crucial
employees, we employ a combination of material and non- environment. In the feedback phase, through feedback from
techniques and methods, tracked the latest international
material incentives to maximize their motivation. For those all sides, evaluated individuals receive insights and coaching,
research advancements, and discussed pathways for the
with less satisfactory performance, we promptly create effective helping them understand their strengths and weaknesses
development of the health industry. Moreover, the training
improvement plans to facilitate rapid progress. Additionally, more comprehensively, recognize the Company and superiors'
course offers a specialized training platform for participants to
mechanisms for performance appeals, disciplinary complaints, expectations, and identify gaps, encouraging them to define
enhance their clinical knowledge in home ventilator therapy,
and investigative interviews are implemented at every stage directions for future improvement and development.
oxygen therapy, and chronic disease management, while also
improving their technical proficiency and practical skills.
Occupational Health and Safety
Improve the Management Mechanism
Case
Industry-Academia-Research Collaboration Projects of Yuwell Medical's POCTech Team Yuwell Medical strictly abides by the laws and regulations including the Work Safety Law of the People's Republic of China , the Law of
the People's Republic of China on Prevention and Control of Occupational Diseases , the Fire Protection Law of the People's Republic of
Since 2023, Yuwell POCTech has established industry-university-research collaboration projects with the University of Shanghai China , the Regulations on the Safety Management of Hazardous Chemicals , and the Provisions on the Administration of Occupational
for Science and Technology and the Nanjing University of Posts and Telecommunications to build internship research bases Health in Workplaces . Additionally, the Company adheres to the requirements of the ISO 45001 management system and established
together. This initiative focuses on talent development, technological innovation, and industrial upgrading. It aims to help rules and regulations such as the EHS Management Manual and the Measures for Management of Work-related Injury Accidents . The
university students understand industry trends and corporate dynamics while facilitating the sharing of the latest industry research general manager is in charge of the Company's safety production, identifying and preventing health and safety risks.
achievements between enterprises and universities. Through talent interchange, the initiative champions technological progress.
Investment in health and safety: RMB
The parent company of Yuwell Medical obtained the ISO
million System certification
Total number of specialized training sessions conducted The coverage rate of health Number of work-related
across all production systems throughout the year and safety training deaths among employees
Note: The statistics are based on Yuwell Medical's parent company.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Ensuring the Health of Employees Building a Happy Yuwell
Yuwell Medical places a high emphasis on enhancing employees' awareness and understanding of safety issues. The Company
conducts three types of safety education for all employees and establishes both online and offline learning platforms to increase
production efficiency and competitiveness, all while ensuring the personal safety of its employees and others. We have also Humanistic Care Yuwell Medical has always been committed to the health and happiness of its
implemented a proactive safety mechanism at production sites, including graded safety measures. At high-risk work areas and employees, advocating the philosophy of working hard and living happily. We
locations, safety reminders and barriers are in place, and optical grating sensors are installed on machines like stamping presses encourage a balance between work and life to create a harmonious and healthy
and bending equipment to prevent mechanical injuries. Additionally, regular health screenings are organized for employees to work environment, and offer comprehensive humanistic care to our employees in
prevent occupational diseases and sudden illnesses, and safety hazards are regularly identified and mitigated to continually various ways. For their physical and mental well-being, we regularly organize sports
improve the working environment for employees. competitions and cultural activities to provide relaxation and adjustment. In terms
of daily life, we actively provide various convenient services. In terms of employees'
families, we create a Home for Employees and build a warm and happy workplace
Training for Production Safety
through a series of actions such as support visits, and love funds.
We have made the promotion of our production safety management mechanisms a standard practice. In line with production
schedules, we regularly hold training sessions to ensure that key position employees clearly understand their safety responsibilities
and that the management team enforces critical policies, thereby protecting the occupational health and safety of our employees. Visiting retired employees and
employees in need
Promotion and Training for Fire
Protection and Traffic Safety
Two fire protection drills covering all
employees are held regularly every year
to enhance employees' awareness of
fire protection. Additionally, promotion
and training for fire protection and
traffic safety are conducted periodically,
with a total of 13 training sessions held
throughout the year, accumulating 1,288
attendances. Inviting employees' families to visit
the Company on Yuwell Family Day
Fire protection training site
Establishing Yuwell Charity Foundation to help
employees with family difficulties every year
Training for First Aid
Correct usage of cardiopulmonar y
resuscitation and AED are compulsory
courses for all our employees. A total
of 6 training sessions were conducted
throughout the year, with 308 attendances.
Online first aid courses have been
launched, with 337 people completing the
training and examination.
Giving gifts to female employees on
International Working Women's Day
Providing first aid training to in-house staff
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Diversity and Equal Opportunities
Yuwell Medical adheres to international human rights norms such as the
International Bill of Human Rights , the International Labour Convention ,
the ILO Declaration on Fundamental Principles and Rights at Work , and
the United Nations Guiding Principles on Business and Human Rights ,
as well as the laws, regulations, and policies of the locations in which it
operates. Adhering to the principles of openness, fairness, and justice,
Yuwell Medical rigorously standardizes the entire talent recruitment
process. The Company ensures there is no discrimination based on
gender, education, age, race, family status, religious beliefs, or cultural
background. It strictly forbids child labor, forced labor, and any other
illegal employment practices, as well as those that contravene policy
regulations, ensuring equal employment and development opportunities
for every employee. During the reporting period, Yuwell Medical has
not encountered any incidents involving child labor, forced labor, or
employee discrimination.
We create a healthy, comfortable, youthful, and modern working
environment for all employees. Annually, the "618 Online Shopping
Festival" and "Double 11" events become company-wide efforts
of collaboration and hard work. We also organize activities such as
International Women's Day events, the Yuwell Chairman's Cup Basketball
Tournament, and the Yuwell Supercar Mini Team each year, promoting a
philosophy of "diversity and inclusion, hard work, and happy living."
Hosting YUWELL DAY to strengthen staff unity
The Company makes every effort to create a diverse, equal, and inclusive
working atmosphere by regularly conducting communication between
superiors and subordinates, HRBP interviews, and team activities. This
strengthens communication and understanding among employees,
Case
promoting cultural integration and more efficient team collaboration, Diversified Measures Adopted by Yuwell Medical's Thai Branch
Percentage of female employees
thereby creating a diverse, equal, and inclusive working atmosphere. On
among reserve management talent
top of that, the Company promotes inclusive workplaces for individuals As a company advocating fairness, our Thai branch strictly adheres to the principles of equality, confidentiality, respect, and anti-
with disabilities, helping more of them achieve dignified employment. harassment in the talent recruitment process, providing a fair employment environment for every qualified candidate. During the
By the end of 2023, the Company had a total of 135 ethnic minority interview, it is prohibited to inquire about religious beliefs, family status, age, and other information of the interviewees to avoid
employees and 14 employees with disabilities. implicit discrimination caused by stereotypes. After employees are hired, the Thai branch organizes birthday parties and holiday
events to help employees better integrate into the team and adapt to the corporate culture. It endeavors to build diversity while
For female employees, Yuwell Medical provides equal career working to be closer to employees and create a diverse and inclusive working environment.
opportunities and guarantees equal salary and benefits. The Company
Percentage of female employees in
seeks a female-friendly working environment by providing material
technology R&D roles
welfare and improving relevant systems to promote diversity and
inclusiveness in workplaces. We ensure that female employees enjoy full
prenatal check-up leave, maternity leave, and breastfeeding leave, and
encourage male employees to take parental leave during their spouses'
childbirth. After returning to work, female employees are given the
necessary time based on their physical condition and are encouraged
to gradually resume their duties and take time to adapt to the work
The proportion of female employees
status after returning from childbirth. Yuwell Medical also provides fair
in middle and senior management
training and promotion opportunities for female employees to accelerate
their progress and enhance their diversified skills. Female employees
are encouraged to break through career ceilings, take on key positions,
assume important roles, and explore more possibilities for career
development in the Company.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Safeguarding Guided by the mission of Alleviating patient suffering and enhancing doctors' Case
Public Welfare Training Project "One Hundred Training Sessions Enter the Community"
medical skills, Yuwell Medical constantly explores philanthropic models that
Life and Health align with the development of the times and social demands. With our expertise
in medical devices and industry experience, we are committed to fulfilling our
Yuwell Primedic is actively engaged in nationwide public welfare training sessions, reaching into schools, enterprises, communities,
and government agencies. Through initiatives like One Hundred Emergency First Aid Training Sessions and Last Mile Emergency
corporate responsibilities.
Aid, Yuwell Primedic aims to address the challenge of the public's lack of knowledge and confidence in using emergency medical
equipment, improving pre-hospital emergency care efficiency and boosting patient survival rates. Yuwell Primedic intends to set
Total investment in charitable donations: RMB up emergency training centers in 100 cities and 1000 counties, equipping them with essential emergency medical equipment such
as automated external defibrillators (AEDs), cardiopulmonary resuscitation (CPR) training manikins, blood pressure monitors,
thermometers, and first aid kits. These devices will also serve as interactive teaching tools. Each week, public emergency training
courses will be conducted covering four key areas: chronic disease detection, health awareness, volunteer services, and rescue
training, aiming to enhance medical treatment capabilities at the grassroots level.
Dedicated to Over the past 50 years, Yuwell Primedic has been dedicated to the emergency service
sector, protecting lives worldwide. In China, over 10,000 individuals have obtained
In 2023,
Emergency Medical certification as first aid volunteers through Yuwell Primedic's first aid training program.
Assistance Globally, the Yuwell Primedic rescue ecosystem extends to over 100 countries, saving
hundreds of lives annually. Yuwell Primedic has also founded the Flying Fish Rescue
Team, collaborating with professional event safeguarding organizations to provide free
support for over a thousand global marathon events. This has led to the successful
rescue of dozens of runners experiencing sudden cardiac arrest.
Case Yuwell Primedic conducted over with more than providing first aid support for over
Supporting the 6th "Medical League Competition: Following Xuanzang's Footsteps"
In 2023, the 6th "Medical League Competition: Following Xuanzang's Footsteps" was grandly held in Guazhou, Gansu Province.
Medical professionals from all over China gathered in the Gobi Desert to take on the 81-kilometer hiking challenge. The course
of this "Medical League Competition" included various terrains such as deserts, the Gobi Desert and canyons, presenting
first aid training sessions
attendances
events
participants with significant physical challenges in high temperatures and intense sunlight throughout the entire journey. Yuwell
Medical extended full medical equipment support throughout the event, offering participants the the new-generation dynamic
glucose meter Anytime CT3, blood pressure monitors, and other products to help them effectively monitor their health status.
Furthermore, the rescue teams were equipped with the Yuwell Primedic Y-series automated external defibrillators (AEDs), capable
of withstanding falls from heights of up to 1.6 meters and delivering rapid 6-second rescue responses. These measures ensured the
safety and well-being of all participants, contributing to the successful completion of the event.
We have delivered nearly a thousand specialized training sessions to Partnering with Tencent, we conducted a four-day emergency training
medical institutions, public organizations, enterprises, and academic program in Beijing for 150 delivery riders from Meituan.
institutions. We leverage Internet of Things (IoT) technology to broaden
the scope of the emergency response system, encompassing AED device
locations, first aid volunteers, hospitals, and maintenance services.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Committed to Diabetes Care Contributing to Over the years, Yuwell Medical has been supporting education by donating funds to
various charitable education organizations, including the Nanjing Normal University
Diabetes, characterized by elevated levels of blood sugar due to hormonal imbalances and subsequent multi-organ damage,
Rural Revitalization Education Development Foundation, Guangdong Youth Development Foundation,
and Shanghai Educational Development Foundation. The Company has established
ranks among the world's most prevalent chronic diseases. Yuwell Medical is deeply committed to chronic disease management,
education support funds and scholarships, and donated funds for the construction
collaborating with media, hospitals, and other professional organizations to promote diabetes prevention and control. Together
of "Yuwell Buildings" in multiple schools. We have also been supporting the "Rural
with the residents' committees, we organize free clinic events, extending care and support to individuals affected by diabetes.
Health Initiative" by providing medical kits to the Jack Ma Rural Teachers Initiative,
aimed at promoting the physical health of rural educators, for five consecutive
years. Furthermore, we have donated nearly 20,000 5-liter medical-grade oxygen
concentrators to grassroots medical and health institutions in central and western
rural areas, benefiting a total of 19,131 town-level hospitals across 22 provinces,
autonomous regions and municipalities as well as the Xinjiang Production and
Construction Corps (XPCC). Through charitable organizations such as the China
Charity Federation (CCF), Xianyang Red Cross Society, Jiangsu Social Donation Center,
and Shanghai Charity Foundation, we have donated funds and essential medical
equipment to support rural revitalization projects and nursing homes across multiple
regions. These contributions have further strengthened the health management and
disease prevention capabilities in rural areas of central and western China.
Case
Alleviating Oxygen Supply Challenges in Xizang
In 2018, the Company established the Yuwell Medical Highland Oxygen Production Industry
In collaboration with Jiangsu Provincial People's Hospital and Affiliated Hospital of Jiangsu University, Yuwell Medical organized the charity event Park in Lasa, Xizang, to help alleviate oxygen supply challenges in high-altitude regions. This
"Towards the Future - Health Summer Camp." More than a hundred type 1 diabetes patients from provinces and cities such as Jiangsu, Anhui, Henan, Delivery time in urban areas of facility integrates advanced manufacturing, assembly, warehousing, and service capabilities
and Guangdong were invited to join the camp. Xizang: within 1 hour to offer a wide range of highland oxygen concentrators, such as centralized diffusion, split-
type diffusion, micro-pressure oxygen cabins, cabin-style, portable, vehicle-mounted, and
Yuwell Medical has founded the "Yuwell In partnership with Xinhua News Agency, Yuwell Medical co-produced the diabetes individual nasal suction, meeting the diverse oxygen needs of people living in high-altitude
Diabetic Community" as a hub for diabetes public welfare short film "Out-of-control Sweetness." Renowned experts from Grade regions. We have introduced an innovative "1+1 service model", combining grid-based,
patients to connect and engage, covering 3A hospitals were invited to underscore the importance of blood sugar monitoring, Delivery time in remote regions standardized services with a smart remote monitoring platform to achieve delivery within
various types of diabetes such as Type 1 advocating for increased awareness of the 140 million diabetes patients in China. of Xizang: within 1 day one hour in urban areas of Xizang and within one day in remote regions of Xizang. Our staff
diabetes (T1D), Type 2 diabetes (T2D), and The initiative garnered widespread societal attention, reaching more than 8.919 has ventured into high-altitude outposts over 5,000 meters above sea level multiple times
gestational diabetes. million views. to deliver high-quality and reliable highland oxygen concentrators to residents, aid workers,
and stationed troops in Xizang. Additionally, the Company has partnered with Alibaba to
launch the "Angel Journey - Highland Health Action," donating oxygen concentrators worth
The cumulative views of RMB 5 million to less developed areas of the Qinghai-Xizang Plateau to ensure a stable
the Diabetic Community oxygen supply in highland regions.
Total registered users
Total posts
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Special Focus Pneumoconiosis stands as the leading occupational disease in China, accounting
for over 80% of all occupational diseases. Individuals who are exposed to high levels
Infusing Life with
of dust in their workplace for extended periods are at risk of lung damage. Frontline
workers in industries such as coal mining, textiles, welding, tunnel construction,
Oxygen drilling and carving are susceptible to the disease. Since 2017, Yuwell Medical
has been collaborating with the Love Save Pneumoconiosis charity organization,
adhering to the principle of alleviating patient suffering and enhancing doctors'
medical skills. Together, we have been conducting a series of philanthropic initiatives
aimed at supporting farmers afflicted with pneumoconiosis, offering constant aid to
affected families.
In 2017 In 2019 In 2023
The Company partnered with Love Save Pneumoconiosis Yuwell Medical and Love Save Pneumoconiosis co- Yuwell Medical partnered with Love Save Pneumoconiosis
to launch the "Walk for Two Kilometers" charity event, hosted the "Lung Capacity Challenge" event, both Establishing a Total of to organize the "Solar Terms in Children's Paintings" drawing
encouraging the public to convert their walking steps into online and offline, to raise awareness about farmers collection activity, encouraging children from families
donations for the organization. Over nearly a month, the suffering from pneumoconiosis and to encourage affected by pneumoconiosis to depict the beauty of the
compassionate initiative has engaged 230,000 individuals, broader public participation in assisting them. The twenty-four solar terms through their artwork. This initiative
Rehabilitation Stations
raising RMB 700,000 in donations. These funds have event won support from 40 celebrity artists and aimed to raise awareness about the challenges faced by
been allocated towards the construction of Love Save students from 102 universities, with the Weibo Since the establishment of the rehabilitation center in children from pneumoconiosis-affected families. Through
Pneumoconiosis Chaiping Rehabilitation Center, hashtag #LungCapacityChallenge# accumulating over Sanchuan Town, Luanchuan County, Luoyang City, Mr. this educational initiative, the Company raised RMB 55,000
rehabilitation training for over 300 pneumoconiosis- 60 million views. Chen, a stage III pneumoconiosis patient, has persisted in donations, which were distributed to eight provinces and
afflicted farmers, and the treatment of critically ill patients. in participating in rehabilitation training at the center. cities including Sichuan, Chongqing, and Hunan, supporting
According to long-term health monitoring, his six-minute more than 50 children from pneumoconiosis-affected
walking test results have increased from a minimum of families to pursue their education.
significant improvement in his endurance. Since joining
the rehabilitation center for training, he has not been
hospitalized for pneumoconiosis again.
Although rehabilitation centers can alleviate basic
physical ailments for pneumoconiosis farmers, they
still face a series of life challenges such as reintegrating
Yuwell Medical and Love Save Pneumoconiosis have collaborated into society, easing family pressures, and finding new
on the "Walk for Two Kilometers" charity project. job opportunities. Yuwell Medical, in partnership with
Love Save Pneumoconiosis, proactively engaged with
In 2018 From 2019 to 2020 patients and their families, providing ongoing medical
treatment, psychological counseling, and guidance on
Yuwell Medical partnered with Love Save Pneumoconiosis Adhering to the Action Plan on the Prevention and entrepreneurship and employment, paving the way
to launch the "Love Save Pneumoconiosis - Aid for Treatment of Pneumoconiosis and the Notice on the for a long-term, stable, and dependable life for farmers
Farmers Afflicted with Pneumoconiosis" charity project Pilot Implementation of Pneumoconiosis Rehabilitation after rehabilitation. Working alongside Love Save
in eight specialized stores under the Yuwell flagship Stations (Rehabilitation Points) in Grassroots Medical Pneumoconiosis, the Company has recognized that
store. This initiative sought to increase awareness among Institutions , Yuwell Medical actively collaborated with Love aiding financially disadvantaged children in completing
consumers and encourage their support for farmers Save Pneumoconiosis to establish rehabilitation stations, their education is the most effective means of breaking
affected by pneumoconiosis. creating a comprehensive network of rehabilitation the cycle of poverty. By the end of 2023, we have
services extending from urban to rural areas and from continued to extend support to pneumoconiosis-affected
communities to individuals. The services were designed to families by providing educational assistance funds to
include "rehabilitation guidance, health education, health their children in primary, middle, and high schools across
monitoring and assessment, psychological intervention, more than ten provinces and cities nationwide, including
entrepreneurship support, and advocacy for occupational Shaanxi, Henan, Chongqing, and Qinghai.
disease prevention and control".
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Key Performance Table
Corporate Governance
Business Ethics and Anti-corruption Water Utilization
Indicator Unit 2023 Indicator Unit 2023
Anti-corruption training coverage for key Water intake Tons 561,377.9
% 100%
positions:
Tons / RMB 10,000 of
Average anti-corruption training time per Water consumption intensity 0.70
hours 2 revenue
employee:
Recycled water consumption Tons 35
Environmental Performance
Emissions and Waste
Environmental Management
Indicator Unit 2023
Indicator Unit 2023
Waste emission compliance rate % 100%
Total investment in environmental protection Million RMB 7.0168
Wastewater discharge Tons 3,566
Environmental protection training coverage % 100%
Total volume of hazardous waste discharged Tons 48.38
Environmental incidents throughout the year cases 0 Total volume of non-hazardous waste discharged Tons 245.58
Alkali mist Tons/year 0.38
Energy Use and Greenhouse Gas Emissions Sulfur dioxide Tons/year 0.17
Organized waste gas
Nitrogen oxides Tons/year 1.077
Indicator Unit 2023 emissions1
Gasoline Tons 76.40 Smoke and dust Tons/year 0.9518
Diesel Tons 33.27 Volatile organic compounds Tons/year 0.0558
Cubic meters Alkali mist Tons/year 0.15
Natural gas 86.23
Sulfur dioxide Tons/year 0.062
(×10,000)
Unorganized waste
Nitrogen oxides Tons/year 0.007
Kilowatt-hours gas emissions2
Purchased electricity 3,492.32 Smoke and dust Tons/year 0.042
(×10,000)
Volatile organic compounds Tons/year 0.798
Total energy consumption Tons of standard coal 5,600.27
Note 1, 2: The statistical scope for organized and unorganized waste gas emissions pertains to the parent company of Yuwell Medical.
Tons of standard coal/
Energy consumption intensity 0.0070
RMB 10,000 of revenue
Social Performance
Direct greenhouse gas emissions (Scope 1) Tons of CO2 equivalent 2,201.36
R&D Innovation
Indirect greenhouse gas emissions (Scope 2) Tons of CO2 equivalent 19,916.69
Indicator Unit 2023
Total greenhouse gas emissions (Scope 1 and 2) Tons of CO2 equivalent 22,118.05
Total R&D investment Million RMB 504.3712
Tons of CO2 equivalent/
Greenhouse gas emission intensity 0.0277
RMB 10,000 of revenue R&D investment as a percentage of revenue % 6.33%
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Customer Rights
Indicator Unit 2023 Indicator Unit 2023
Customer complaint handling rate % 100% Employees with college degree Persons 1,559
B2B customer satisfaction rate % 96.2% Employees with less than a college degree Persons 2,474
Number of employees by region
B2C customer satisfaction rate % 97.25%
Chinese employees (including employees from Hong
Persons 6,020
Kong, Macao and Taiwan)
Social Performance Overseas employees Persons 94
Supply Chain Management Employee satisfaction % 83.6%
Employee turnover rate % 19.92%
Indicator Unit 2023
Number of suppliers certified to quality management
Companies 481
systems Equality and Diversity
Number of suppliers certified to occupational health
Companies 72 Indicator Unit 2023
and safety management systems
Incidents of employee discrimination/harassment Cases 0
Number of suppliers certified to environmental
Companies 166
management systems The proportion of female employees in middle and
% 29%
senior management
Employment Supply Chain Management
Indicator Unit 2023 Indicator Unit 2023
Total number of employees Persons 6,114 Total investment in employee training Million RMB 10.0767
Number of employees recruited during the reporting
Persons 1,247 Total attendance of training throughout the year Attendances 34,356
period
Total employee training hours Hours 171,780
Number of newly recruited graduates Persons 68
Annual training hours per employee Hours 24.7
Number of employees by gender
Male employees Persons 3,482
Female employees Persons 2,632
Occupational Health and Safety
Number of employees by age
Indicator Unit 2023
Employees aged 30 and under Persons 1,586
Investment in health and safety Million RMB 4.46
Employees aged 30-50 Persons 3,902
Health and safety training coverage % 100%
Employees aged 51 and above Persons 626
Number of employee fatalities due to work-related
Number of employees by hierarchical level Persons 0
incidents
Senior management Persons 135
Middle management Persons 306
Public Welfare
Entry-level employees Persons 5,673
Number of employees by educational level Indicator Unit 2023
Employees with bachelor's degree or above Persons 2,081 Total investment in charitable donations Million RMB 42.874
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
About This Report Index Table
This report is the inaugural sustainability report of Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (referred to as "Yuwell
Reporting Framework GRI Standards
Medical"). It follows principles of objectivity, standardization, transparency, and comprehensiveness to disclose the Company's
sustainability philosophy, management practices, and performance, thoroughly responding to major concerns of stakeholders. Message from the Chairwoman 2-22/2-23
About Yuwell Medical 2-1/2-2/2-4/2-6/2-16/201-1
Reporting Scope Reporting Principles Sustainable Development
Management
The report highlights the information and key performance This report adheres to the principles of materiality, quantification,
of Yuwell Medical and its subsidiaries in fulfilling governance, balance, and consistency. Efficient Governance: Marching Towards a New Era of High-Quality Development
social, and environmental responsibilities in 2023.
Strengthening Corporate
Governance
Source of Information Adherence to Business Ethics 2-27/3-2/205-1/205-2/205-3/206-1
Definition of Terms All the information and data used in the report are sourced
Full Supply Chain Coordinated
from the Company's official documents statistical reports, and 2-6
For ease of expression and reading, Jiangsu Yuyue Medical Management
financial statements, as well as information on sustainable
Equipment & Supply Co., Ltd. is referred to as "Yuwell Medical",
development practices of each unit that have been gathered Sustainable Supply Chain 2-6/3-2/204/308-1/308-2/414-1/414-2
"the Company" or "we" in this report.
and reviewed by the responsibility management department
of the Company. Unless otherwise specified, all monetary Information Security and Privacy
amounts mentioned in this report are measured in RMB. Protection
Leading Through Innovation: Energizing Life via Technology
Timeframe
This report covers the period from January 1, 2023, to December Driving the Future through
as deemed appropriate. This report is an annual report. The Company assures that this report contains no false Advancing in Smart Healthcare 2-6
records, misleading statements, or significant omissions, and
is accountable for the authenticity and accuracy of its content. Commitment to Uphold Quality 2-25/2-27/3-2/416-1/416-2/417-1/417-2/417-3/418-1/419-1
Environmentally Friendly: Accelerating Green and Low-Carbon Transition
Reporting Principles
Enhancing Environmental
This report has been compiled according to the GRI Standards 3-2/2-27/307-1
Report Access Management
by the Global Sustainability Standards Board, the Shenzhen
Stock Exchange's Guideline No.17 for Listed Companies on This report is available in both print and PDF formats. You are Green Product Design 302-5/
Sustainable Development Reporting (Trial), the Environmental, welcome to visit the Yuwell Medical website (www.yuwell.com) or
Social, and Governance (ESG) Reporting Guide by the Hong the CNINFO website (www.cninfo.com.cn) to access the electronic Addressing Climate Change 201-2/302-1/302-3/302-4/302-5/305-1/305-2/305-4/305-5
Kong Stock Exchange, the national standard Guidance on version of the report. In our ongoing efforts to improve our Reducing Environmental Impact 2-27/303-1/303-3/303-5//304-3/305-7/306-1/306-2/306-3/306-4/306-5/307-1
Social Responsibility Reporting (GB/T36001-2015), and the reporting process, we value your feedback and suggestions. Should
guide for business action on the United Nations Sustainable you have any questions or suggestions about the report, please Talent-oriented: Achieving the Value of Life
Development Goals (SDGs). email yuwellzqb@yuyue.com.cn, or contact us at 0511-86900876.
Growing Together with Employees
Safeguarding Life and Health 3-2/203-1/203-2/413-1
Appendix
Key Performance Table 302-1/302-2/302-3/303-3/303-5/305-1/305-2/305-3/305-4/306-3/306-3/401-1/403-9
About This Report 2-3
Index Table —
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.
Yuwell Medical stock code: 002223
Address: No.1 Baisheng Road, Development Zone, Danyang City, Jiangsu Province, China
Tel: 86-0511-8690 0876
E-mail: yuwellzqb@yuyue.com.cn
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