Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.
CONTENTS
Advancing Towards High-Quality Safeguarding Lives and
Development Empowering People
Management 13 Enhancing Corporate Governance 61 Human Capital Development
Development: Empowering Friendliness: Creating a
Life Through Technology Shared Green Future
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Message from the Chairman
A strong sense of responsibility and commitment has been the driving force such as the continuous glucose monitoring systems Anytime 4 and institutions. Through initiatives such as free health screenings,
behind Yuwell Medical's journey. Guided by a deep passion for healthcare, we Anytime 5, the third-generation sleep apnea therapy device, high- diabetes-focused summer camps, and the creation of the Yuwell
have forged ahead with perseverance, leveraging technological innovation to flow oxygen generators, portable oxygen generators, and semi- Diabetes Community, it has extended meaningful support and
inject fresh momentum, and improving quality and efficiency to unlock new automated external defibrillators. Our ability to compete with world- care to people living with diabetes. Our employees have also made
avenues for growth. We strive to be a pioneer in innovation-led transformation class products has continued to improve. We also made solid strides multiple trips to high-altitude outposts over 5,000 meters above
and a steadfast protector of public health. In 2024, the demand for health in smart healthcare by integrating artificial intelligence and digital sea level to deliver high-quality and reliable high-altitude oxygen
management continues to rise, and industry transformation is moving at innovation into our operations. These technologies have enabled concentrators to local residents, aid workers, and individuals from
an accelerated pace. Amid the ever-evolving global landscape, we remain us to build an intelligent manufacturing and operations system various sectors, making every effort to safeguard life and health.
committed to our vision of "leading industry development through innovation featuring deep multi-platform and multi-system interaction. At the
and enhancing the health of millions of families". Guided by a focus on same time, we established an efficient end-to-end lifecycle quality Green operations and environmental responsibility are the
health and powered by science and technology, we proactively aligned management system and a comprehensive omnichannel customer foundation of our commitment to sustainable development.
ourselves with national strategies, embraced change and new opportunities, service framework, supporting product innovation, the upgrading Yuwell Medical integrates green ecological values and sustainability
and explored new pathways to sustainable development with a long-term of health services, and the enhancement of global competitiveness. principles across its production and operations. We have extended
perspective. Step by step, we have continued to enhance our capabilities Our products and services are benefiting users worldwide. In 2024, our EHS (Environment, Health, and Safety) management system
in governance, innovation, competitiveness, risk management, and global our first-pass yield reached 99.72%, with customer satisfaction rates to cover all business segments and closely monitor the risks and
development. In the dynamic flow of the new era, we are determined to forge of 97.2% for B2B clients and 97.7% for B2C users. The Company opportunities presented by climate change. While enhancing
ahead, making meaningful contributions to the global healthcare sector with continues to lead the industry in both customer satisfaction and our core competitiveness, we are striving to build a clean, low-
the power of Yuwell. product experience. carbon, and climate-resilient manufacturing system. In 2024, the
Company advanced comprehensive energy management in line
We are strengthening corporate governance to ensure steady progress as With a people-centered approach and a shared commitment with ISO 50001 standards by establishing an integrated energy
we embark on a new journey of high-quality development. In 2024, Yuwell to health, we strive to safeguard lives and empower the value control system encompassing data collection, process monitoring,
Medical remained committed to its roots in the real economy, focused on its of life. Guided by a consumer-oriented, digitalized, and youth- and management functions. This enabled full-cycle, closed-loop
core business, and pursued professional excellence. We concentrated our focused talent development strategy, we have established the management from planning to statistics, analysis, and evaluation. We
efforts on key areas such as respiratory therapy, blood glucose management, Yuwell Learning and Development Center and developed a sound continued to upgrade equipment and technology, steadily increased
POCT, and home health monitoring solutions, while consolidating our and adaptive talent management model aligned with our strategic the proportion of green electricity, and improved efficiency in
presence in clinical and rehabilitation equipment and actively developing goals. We have developed a well-structured training system tailored production and sales coordination. As a result, we achieved effective
high-potential businesses including emergency care and ophthalmology. Our to different levels and roles, refined a transparent and merit-based control over comprehensive energy consumption per unit of output,
diversified product portfolio was further optimized, and our dual advantages promotion pathway, and nurtured a workplace that is diverse, greenhouse gas emission intensity, water consumption intensity, and
in brand influence and market competitiveness continued to grow. With inclusive, equitable, and warm. These efforts continue to enhance hazardous waste discharge intensity. All annual energy management
operations now spanning over 100 countries and regions, our global business our talent competitiveness and bring our people together in the targets were achieved with a 100% completion rate, marking the
system has become increasingly mature. To ensure long-term stability in shared mission of safeguarding health and life. In 2024, the Company initial results of our efforts to build a clean and low-carbon production
future development, we continue to reinforce both internal and external was honored with several accolades, including the Outstanding system. Meanwhile, we have incorporated green innovation into
risk management systems, strengthen the compliance and business ethics Human Resource Management Award - Employer of Excellence, the product development, advancing modular, lightweight, low-carbon,
framework, and implement rigorous standards for information and data Employer of Choice of the Year Award, and the Excellence in Talent and health-conscious designs, and delivering high-quality solutions
security. Through the development of a highly resilient supply chain and a Acquisition and Development Award. While focusing on our core with a reduced environmental footprint.
firm commitment to integrity and innovation, we are laying a solid foundation healthcare business, Yuwell Medical continues to explore public
for the Company's high-quality and long-term growth. welfare models that align with the needs of the times and society. Though the journey may be long, determination leads to arrival;
In 2024, we contributed RMB 1.47 million in charitable donations to though the task may be tough, action leads to achievement. Yuwell
Innovation drives progress, empowers health, and brings vitality to life support emergency medical care, diabetes patient assistance, and Medical presses ahead with efforts to advance high-quality and
through technology. Guided by the strategy of "reshaping medical devices rural healthcare development, making a tangible contribution to the sustainable development through ESG management. We actively
through innovation", we have consistently increased R&D investment in high-quality development of global healthcare. Yuwell Primedic has embrace cutting-edge technological innovation and adapt to
our core businesses and strategic focus areas, and have actively explored long been dedicated to the emergency care sector. In partnership evolving industry dynamics. By combining long-term vision with
diverse innovation pathways. We have steadily enhanced our innovation with professional race support organizations, its Flying Fish Rescue agile execution, we are building sustainable momentum amid
capabilities through both independent and collaborative research, using Team has participated in medical support for over 1,000 international ongoing market transformation, embarking on a new journey to
innovation as a driving force to cultivate new growth drivers and competitive marathon events. Yuwell Primedic's emergency rescue ecosystem reshape the medical device industry through innovation.
advantages, so as to deliver higher-quality healthcare solutions to society. now spans more than 100 countries and has delivered over 860
In 2024, leveraging our global R&D network and multiple national and public training sessions on AED use and professional first aid, saving
Wu Qun,
provincial-level innovation platforms, Yuwell Medical achieved a number hundreds of lives each year. The Company has been deeply engaged
of internationally advanced breakthroughs with independent intellectual in chronic disease management by partnering with social media Chairman and General Manager of Jiangsu Yuyue
property rights. Significant technological progress was made in products platforms, hospitals, charitable groups, and other professional Medical Equipment & Supply Co., Ltd.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
About Yuwell Medical
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (hereinafter Over the years, Yuwell Medical has consistently maintained high
referred to as "Yuwell Medical", stock code: 002223) is a leading levels of investment in the R&D of new products and projects,
medical device company in China, specializing in the research sustaining its leading position in technological innovation. The
and development, production, sales, and service of medical Company has established multiple research and manufacturing
equipment. As a comprehensive provider of medical devices centers in Germany, Shanghai, Nanjing, Suzhou, Danyang, Xizang,
and solutions, Yuwell Medical is committed to delivering high- Shenzhen, and other locations. It is also home to several national- ESG Benchmark Pioneer in Corporate Social China's Top 100 Listed Companies in
quality, innovative medical products and services to patients and level innovation platforms, including a National Enterprise Enterprise Award Responsibility Award ESG Best Practices
healthcare institutions worldwide. Technology Center, a National Industrial Design Center, and
Awarded by Securities Star Presented at the 2024 Cailian Awarded by Wind
a National Postdoctoral Research Workstation. These efforts
Press Zhiyuan Award Ceremony
Driven by its mission to "alleviate patients' suffering and enhance have enabled the Company to build a comprehensive global
doctors' medical capabilities", Yuwell Medical remains focused on network encompassing R&D, manufacturing, marketing, and
the life and health sector with a consumer-centric approach. The services, earning its products broad market recognition. In close
Company concentrates on key product areas such as respiratory collaboration with medical institutions across China and around
therapy, blood glucose management and POCT, and home the world, the Company is committed to driving progress in the
health monitoring solutions. It maintains a solid foundation healthcare sector. Through a diversified business strategy and
in clinical medical devices and rehabilitation solutions, while steady global expansion, it continues to strengthen its capacity 2024 ESG Annual Case 2024 Outstanding Case of National Brand Social
actively nurturing high-potential areas such as emergency care to serve the global healthcare sector. For detailed information on Awarded by the Economic Sustainable Development Practices Responsibility Case
and ophthalmology. With a firm focus on the vast international the Company's operational and financial performance, please and Social Affairs Department among Chinese Listed Companies Awarded at the 2024 Boao
market, the Company follows the strategic path of "reshaping refer to the Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. of People's Daily Awarded by the China Association Entrepreneurs Forum – New
medical devices through innovation", powered by strong R&D 2024 Annual Report . for Public Companies Consumption Development
capabilities and technological advancement. It continues to lead Conference
industry transformation and contributes steadily to improving the
quality of life for people around the world.
Net Profit Attributable to
Total Assets Operating Revenue Shareholders of Listed Companies
billion RMB billion RMB billion RMB
Operating in
countries and regions around the world
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Sustainable Development Management Stakeholder Engagement
Yuwell Medical attaches great importance to stakeholder expectations and concerns, maintaining effective communication through
Sustainable Development Governance Framework a proactive and open approach. The Company consistently improves its diverse and routine mechanisms for both internal and
external dialogue to actively respond to stakeholder needs.
At Yuwell Medical, high-quality and sustainable development has always been a top priority. The Company continues to strengthen
its environmental, social, and corporate governance (ESG) systems and enhance the Board's oversight and involvement in ESG-
related affairs. ESG is positioned as a key driver for improving compliance management, promoting high-quality development, and Stakeholders Expectations and Demands Communication Methods and Channels
reinforcing the Company's competitiveness. As the decision-making and oversight body for ESG matters, the Board of Directors
Compliance operations Specialized meetings or reports
participates in evaluating the potential impacts, risks, and opportunities of sustainability issues on the Company's business model.
It oversees the effective implementation of ESG vision, goals, strategies, and action plans, and ensures the integration of ESG Product quality and safety Feedback on policy consultation
principles and requirements into departments and key business processes. For details on the Board's expertise and capabilities in Environmental management Official visits
overseeing the management of ESG-related impacts, risks, and opportunities, please refer to the section "Strengthening Corporate Government & Regulatory Authorities Support for local development Compliance regulatory inspections
Governance / Board Diversity and Effectiveness" in this report. During the reporting period, the Board of Directors reviewed and (including rural revitalization)
Information disclosure
approved the Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report and the Jiangsu Yuyue Medical
Equipment Co., Ltd. ESG Management Policy.
High-quality development General meeting of shareholders
The Company actively adopts quantitative indicators to assess the effectiveness of its ESG management strategies and is Consistent and stable returns Financial reports and
announcements
progressively incorporating relevant ESG metrics into its performance evaluation and compensation system. In 2024, the Company Investor relations
organized dedicated ESG training sessions covering topics such as ESG trends and requirements, key considerations for promoting Investor hotline
ESG initiatives, and ESG information disclosure. These efforts aim to enhance employees' awareness and understanding of ESG, Shareholders & Investors Roadshow
thereby ensuring more effective implementation of ESG practices across the organization.
Performance briefings and other
engagement activities
Product quality and safety Customer satisfaction survey
Innovative and low-carbon products Customer relationship management
Customer service management Customer communication activities
The Supervisory Body Customers Business continuity Social media platform
Defines the Company's ESG direction and Reliable privacy protection
strategic goals, makes decisions on material
Board of Adherence to business ethics Supply chain audits and training
ESG matters, and fully oversees ESG issues
Directors Responsible supply chain Open cooperation
and ensures their effectiveness
Industrial cooperation and Communication and interaction
Partners
exchange
Industry conferences
ESG Management The Management Body
Employee rights and benefits Employee activities and
Leadership Group Identifies, assesses, and manages communication
Lead: General Manager Occupational health and safety
ESG-related risks and opportunities
Employee training
Deputy Lead: Board Secretary Employee training and
Determines the materiality of ESG issues and development Performance evaluation and
Members include other senior
integrates them into business considerations feedback mechanism
executives and heads of Employees Diversity and equal opportunity
relevant departments Guides day-to-day ESG activities Internal information
communication platform
Employee grievance channels
ESG Working Group The Executing Body
Product quality and safety Media interaction
Formulates ESG-specific plans
Environmental management Information disclosure
Relevant functional Implements ESG initiatives
and operational Subsidiaries Public welfare and charity Public welfare programs
Regularly monitors and reports ESG Public & Community
departments Community communication and Volunteer activities
performance indicators
development
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Material Issues
Materiality analysis helps the Company identify and assess potential risks, providing support for decision-making and
Governance Category
management. In 2024, Yuwell Medical updated its materiality analysis methods in alignment with the latest disclosure standards, High 13 12
including the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and the Self-Regulatory 14 8 11 Environmental Category
Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange— Sustainability Report (Trial). The Company conducted 5
materiality assessments from two dimensions: impact materiality—the degree to which an issue affects economic, environmental,
and social sustainability; and financial materiality—the extent of its impact on the Company's financial performance. By
comprehensively evaluating stakeholder concerns and their financial implications, the Company identified high-impact ESG issues
for prioritized disclosure in this report. It also continues to enhance ESG management to better address stakeholder expectations 2
and drive ongoing improvement.
Impact Materiality
The Company developed a comprehensive list of ESG issues based on leading domestic
and international sustainability reporting standards and frameworks, mainstream ESG 17
rating systems, industry focus areas, and issues of shared concern among internal and
Identification external stakeholders. This process was informed by an analysis of internal and external 1
of ESG Issues development trends and led to the identification of both general and sector-specific
material issues.
Low Financial Materiality High
The Company conducted a materiality analysis based on the principle of double
Materiality materiality, engaging key internal and external stakeholders to assess both impact Material in terms of both Not material in terms
Analysis materiality and financial materiality. The results formed the basis for the 2024 materiality Material in terms of Material in terms of
financial and impact of financial or impact
matrix, which identified and prioritized material issues for the year. financial significance only impact significance only
significance significance
No. Topic No. Topic
ethics (including smart healthcare innovation)
Issue The Board of Directors, incorporating input from internal management and external 6 Addressing climate change health and safety)
Validation experts, reviewed the assessment results and validated the highly material ESG issues.
and For these issues, the report provides focused disclosures on governance, strategy, risk
Disclosure and opportunity management, and related metrics and targets. 8 Emissions and waste management 17 Sustainable supply chain
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Analysis of Impacts, Risks, and Opportunities Related to Material Issues
Scope of Impact Impact Timeframe Scope of Impact Impact Timeframe
Material Impact Material Impact
Short Medium Long Risk and Opportunity Analysis Risk and Opportunity Analysis
Issue Level Issue Short Medium Long Level
Upstream Operations Downstream Upstream Operations Downstream
Term Term Term Term Term Term
There are risks associated with product Insufficient employee training and
design and development, manufacturing development, ineffective performance
and processes, as well as regulatory Negative
management, and organizational
compliance. Failure to effectively manage impact: Negative
culture risks may lead to strategic and
these risks may lead to regulatory penalties, Highly impact:
Product organizational transformation risks, as
market access restrictions, and a decline in significant; Moderately
Quality and Human well as increased talent attrition.
market trust. Positive significant;
Safety Resource
impact: A well-established system for employee Positive
By adhering to high standards of safety Highly Development learning, development, and talent impact:
and quality, the Company can strengthen significant cultivation can strongly support the Highly
customer trust, expand market share, and achievement of the Company's strategic significant
gain a competitive advantage. objectives, enhance brand value and
market competitiveness, and contribute
Incidents of commercial bribery and
to long-term, steady growth.
corruption may result in significant Negative
economic costs, legal consequences, impact:
Physical and transition risks associated
Business operational risks, and reputational Highly
with climate change may result in
Ethics damage to the Company. significant
asset losses, supply chain disruptions,
and Anti- Efforts in business ethics and anti- Positive
increased operational costs, and shifts in
corruption corruption help establish sound internal impact:
market preferences that impact product Negative
management systems and processes, Moderately
strategies. impact:
optimize internal controls, and enhance significant Addressing
The green transition and evolving market Significant;
management efficiency and transparency. Climate
demand driven by climate change present Positive
Change
In the context of technological uncertainty, opportunities to explore new business impact:
regulatory volatility, market competition, directions and develop innovative Significant
Negative
and global expansion, R&D investment impact: product solutions. Enhancing energy
may require significant financial input Moderately management can help secure long-term,
R&D with no guaranteed commercial returns. significant; stable power supply and generate energy-
Innovation Positive saving benefits.
Technological innovation and forward-
looking planning help cultivate impact:
Quality, supply, compliance, and ESG-
new productive forces, supporting Highly
related risks within the supply chain may
the Company's long-term market significant
lead to raw material shortages, business
competitiveness.
interruptions, increased costs, and delivery
delays, impacting business continuity and Negative
There are multidimensional risks
market competitiveness. impact:
including technical risks, human errors,
Negative Highly
and operational and management risks. Strengthening sustainable supply chain
impact: Sustainable significant;
Improper management of critical data management can enhance resilience,
Information Highly supply chain Positive
and customer privacy may lead to data ensure business continuity, reduce
Security significant; impact:
breaches, resulting in compliance risks operating costs, and improve market
and Privacy Positive Highly
or reputational damage and a decline in competitiveness and long-term investor
Protection impact: significant
customer trust. appeal. In addition, improving supply chain
Moderately
Robust data protection builds confidence collaboration supports the adoption of
significant
among global partners and facilitates new technologies and drives corporate
entry into more high-end markets. transformation and upgrading.
Note: Impact levels are classified as negligible, moderately significant, significant, and highly significant.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Steady and Long-
Term Progress
Advancing Towards High-
Quality Development
Proportion of female directors
Coverage rate of anti-corruption training
Information leakage incidents
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Enhancing Corporate Governance
Standardized Yuwell Medical rigorously adheres to relevant laws and regulations, including the Company Law
of the People's Republic of China, the Securities Law of the People's Republic of China, the Code
General Meeting of Shareholders
Governance
General meetings of Resolutions
As the Company's highest authority, the General Meeting
of Corporate Governance for Listed Companies, the Rules Governing the Listing of Stocks on the shareholders held reviewed and
Practices
of Shareholders reviews and decides on major company
Shenzhen Stock Exchange, and the Self-Regulatory Guidelines No. 1 for Companies Listed on during the year approved
matters. It convenes and holds meetings in accordance
Shenzhen Stock Exchange—Standardized Operations of Companies Listed on the Main Board.
with relevant regulations, including the Rules for General
The Company also complies with normative documents such as its Articles of Association. It
has established a robust corporate governance structure comprising the General Meeting of Meetings of Shareholders of Listed Companies and the
Shareholders, the Board of Directors, the Supervisory Board, and the management team. This Rules of Procedure for General Meetings of Shareholders
framework ensures clear delineation of rights and responsibilities, coordinated operations, and of Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.
Board of Directors Resolutions
effective checks and balances among the power, decision-making, supervisory, and executive meetings held during reviewed and
organs, constantly enhancing corporate governance efficiency. In 2024, the Company updated
Board of Directors
the year approved
five corporate governance systems, including the Market Value Management System of Jiangsu The Board of Directors, accountable to the General Meeting of
Yuyue Medical Equipment & Supply Co., Ltd. It consistently upholds the principles of integrity, Shareholders, is responsible for formulating the Company's
standardized operations, core business focus, and prudent management, driving continuous development strategy, business plans, and major investment
improvement in operational standards and development quality. For comprehensive decisions. It also oversees the Company's operational
information on corporate governance, please refer to the Jiangsu Yuyue Medical Equipment & management and financial status. The Board has established Audit Committee Strategy Committee
Supply Co., Ltd. 2024 Annual Report. four specialized committees: the Strategy Committee, the Audit meetings held meetings held
Committee, the Nomination Committee, and the Remuneration during the year during the year
Yuwell Medical strictly adheres to prescribed procedures for selecting and appointing directors,
supervisors, and senior management, with no changes in membership occurring in 2024. In and Evaluation Committee. These committees handle specific
compliance with regulations such as the Rules for General Meetings of Shareholders of Listed matters within their authorized scope and provide professional
Companies, the Measures for the Administration of Independent Directors of Listed Companies, consultation and advice for Board decisions.
and the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange , the Company Independent director Ms. Yu Chun chairs the Audit Committee,
has formulated internal rules including the Rules of Procedure for General Meetings of Remuneration and Evaluation Nomination
independent director Ms. Zhong Mingxia leads the Nomination
Shareholders, Specialized Meeting System for Independent Directors, Rules of Procedure for the Committee meetings held Committee meetings
Committee, and independent director Mr. Wan Suiren heads
Board of Directors , and Rules of Procedure for the Supervisory Board. When convening general during the year held during the year
the Remuneration and Evaluation Committee. In all these three
meetings of shareholders, Board of Directors meetings, and Supervisory Board meetings, the committees, independent directors constitute the majority and
Company strictly adheres to stipulated voting matters and procedures, effectively safeguarding serve as chairs, ensuring professionalism and independence in
the legitimate rights and interests of both the Company and its shareholders. decision-making.
Supervisory Board Supervisory Board Resolutions
meetings held during reviewed and
The Supervisory Board, accountable to the General
the year approved
Meeting of Shareholders, oversees the Company's finances
General Meeting of
Shareholders
and monitors the legal compliance of directors and
senior management in performing their duties, thereby
safeguarding the legitimate rights and interests of both the
Company and its shareholders.
Supervisory Board
Board Diversity and Effectiveness
Specialized Meeting for Board diversity plays a critical role in strengthening scientific decision-making and risk management capabilities, serving as a cornerstone
Board of Directors
Independent Directors for Yuwell Medical's strategic implementation and long-term sustainability. The Company proactively fosters diversity within its Board
through multiple dimensions: gender, cultural and educational backgrounds, skill sets, professional expertise, and practical experience.
This initiative ensures that Board decisions are both scientifically sound and effectively implemented. Currently composed of 9 members,
the Board includes four female directors (44.4%), reflecting a strong dedication to gender equality at the decision-making level. It consists
of 6 non-independent directors and 3 independent directors, whose combined backgrounds encompass interdisciplinary knowledge and
Remuneration and extensive industry experience. Their expertise spans bioengineering, medical devices, risk management, finance & accounting, law, and
Audit Committee Nomination Committee Strategy Committee
Evaluation Committee corporate finance, creating a well-balanced mix of experience and professional competencies. The Chair of the Audit Committee brings
a professional accounting background, while several directors contribute deep practical insights into risk management and mitigation,
including expertise in establishing comprehensive risk management frameworks and addressing major risk incidents. This collective
expertise effectively supports the Company's processes for identifying, assessing, responding to, and mitigating risks.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
To advance Board diversity, Yuwell Medical has established the Independent Director System and the Working Rules of the Board's
Nomination Committee, providing a robust institutional foundation for inclusive governance. The Board member nomination
Protection of Investor Rights and Interests
process follows a rigorous selection protocol: the Nomination Committee integrates diversity criteria into its evaluation, conducting
Yuwell Medical rigorously complies with the Securities Law of the People's Republic of
comprehensive assessments of candidates' educational backgrounds, industry experience, professional competencies, and career China, the Measures for the Administration of Information Disclosure by Listed Companies,
trajectories. This ensures a balanced composition of the Board in terms of capabilities, skills, experience, gender, age, and cultural and the Provisions on the System for Registration and Management of Insiders Who Have
perspectives. The Company also attaches great importance to Board members' ethical integrity and leadership credibility. Independent Access to Insider Information of Listed Companies, among other relevant laws, regulations,
director nominations, once shortlisted, must first undergo qualification and independence reviews by the Shenzhen Stock Exchange. and normative documents. The Company has established the Information Disclosure
They are then subject to election via cumulative voting at the general meetings of shareholders, a mechanism that continually elevates Affairs Management System and the Accountability System for Major Errors in Annual
corporate governance standards and decision-making efficacy. Additionally, Yuwell Medical actively promotes professional development Report Information Disclosure. These measures ensure that information is disseminated
training and compliance education for Board members, aiming to strengthen their professional acumen and performance capabilities. Recognized by the China authentically, accurately, and in a timely manner, thereby improving the quality and
During the reporting period, multiple directors engaged in internal high-potential training programs, collectively enhancing corporate Association for Public transparency of its disclosures. During the reporting period, Yuwell Medical issued four
governance and strategic development capabilities. Companies for Outstanding periodic reports and 35 ad hoc announcements. The Company designated Securities
Board Office Practices in 2024 Times, Shanghai Securities News, and the CNINFO website as its official media outlets
During the reporting period, all directors remained fully compliant with laws, regulations, and the Company's Articles of Association ,
for information disclosure, ensuring equitable access to information for all shareholders.
discharging their duties with due diligence, prudence, and accountability. Meanwhile, independent directors actively engaged in Board
Throughout the reporting period, the Company's information disclosure practices remained
activities through multiple channels, offering independent perspectives on key matters to safeguard the scientific validity of decision-
fully compliant with regulatory requirements, and were free from any false records,
making. They effectively exercised their supervisory functions, promoting the implementation of Board resolutions and ensuring the
Honored with the misleading statements, material omissions, or other breaches of disclosure obligations.
accuracy of information disclosure, thereby safeguarding the legitimate rights and interests of both the Company and its shareholders.
Yuwell Medical continues to refine its internal policies, including the Investor Relations
for Investor Relations
Management System , aiming to build a transparent and efficient communication
Management of Chinese
Professional Capabilities platform for investors. The Company actively carries out investor relations initiatives to
Listed Companies
strengthen investor confidence and understanding. A dedicated investor relations section
Type Name Gender Industry Risk
Accounting Law on the Company's official website is maintained by a professional team and regularly
Experience Management updated to provide timely access to the latest company developments. The Company
Chairman, General also operates an investor hotline (+86 511-86900876), offering prompt and detailed
Wu Qun Male Received the 14th
Manager responses to inquiries while welcoming feedback from both shareholders and potential
Outstanding Board
investors. In 2024, the Company convened two general meetings of shareholders, held
Director, Deputy Zhao Secretary Award for
Male two performance briefings, and hosted three online investor exchange sessions. These
General Manager Shuai Investor Relations
events allowed for in-depth communication on the Company's financial results and
Wang Management of Chinese
Director Female business strategy. In addition, through the cninfo.com platform, the Company responded
Lihua Listed Companies
to hundreds of questions from investors regarding its operations, strategic direction, and
Director, Deputy Zheng product offerings—achieving a response rate of 98.40%.
Male
General Manager Hongzhe
Yuwell Medical is dedicated to ensuring equal treatment for all shareholders and has
Chen taken proactive measures to safeguard investor rights and interests, with a particular
Director Male Awarded the 18th China
Jianjun emphasis on minority shareholders. As part of these efforts, shareholders, including
Listed Company Value
Wang minority investors, can attend shareholder general meetings in person or cast their
Director, Board Secretary Female Selection - Sunshine
Ruijie votes online. For significant matters potentially affecting the interests of minority
Board Secretary Award
investors, the Company separately tallies and discloses their votes. General meetings
Independent Director Yu Chun Female
of shareholders are scheduled and located to maximize participation, and modern
Wan information technology is leveraged to increase shareholder engagement, ensuring
Independent Director Male
Suiren all investors, especially minority shareholders, are informed and can participate in
Zhong major company decisions to effectively safeguard their legal rights and interests.
Independent Director Female
Mingxia
Yuwell Medical has established a strong shareholder return ethos, implementing a
consistent and stable cash dividend strategy to ensure investors share in its growth. The
Board of Directors formulates profit distribution plans based on comprehensive annual
Gender Distribution of the Board of Directors Educational Background of the Board of Directors performance evaluations, which are then approved through general meetings of
shareholders to safeguard the legal rights and interests of all shareholders, particularly
minority investors. To further strengthen market value management, the Company
Doctoral degree
Female unveiled the Quality Improvement and Return Enhancement Program. This initiative
Master's degree includes the distribution of interim dividends to enhance shareholder returns and
Male market confidence, thereby fostering the Company's long-term, sustainable growth. For
Bachelor's degree
detailed dividend plans and shareholder equity protection measures, please consult
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Risk Management and Internal Control
Yuwell Medical rigorously adheres to the Company Law of the People's Republic of China , the Audit Law of the People's Republic of Risk Training
China, the Basic Standards for Enterprise Internal Control and its supporting guidelines, as well as regulatory requirements on internal
Yuwell Medical actively nurtures a risk management culture, enhancing employees' awareness of internal control risks and
control set forth by the China Securities Regulatory Commission and stock exchanges. Considering the unique characteristics of the
governance capabilities through comprehensive training programs and advocacy initiatives. By integrating these efforts with
medical device industry, the Company constantly enhances the construction, evaluation, and supervision of its internal control and risk
company-wide participation, the Company fosters a proactive risk prevention mindset, constantly refining its standardized
management systems to ensure their effective operation, thus supporting sustained and stable development.
operational practices. It closely monitors emerging regulatory changes and policy trends, undertaking timely analysis, and
engaging external experts to provide in-depth interpretations and training when necessary, ensuring potential risks are managed
Risk Management Structure
within acceptable thresholds.
The Board of Directors and its Audit Committee are responsible for comprehensive management and oversight of a wide range of risks. The
Audit Committee supervises the implementation of internal audit and control systems, assesses risk management effectiveness, and closely
monitors the progress of external audit institutions, including accounting firms and national audit agencies. The Board authorizes other
specialized committees to conduct risk management within their respective domains. The Audit Department, operating independently from
other business segments, is responsible for daily supervision and ensures the effective execution of risk control measures through audit Tax Management
procedures, engaging external institutions for independent audits when necessary.
Yuwell Medical consistently adheres to the principle of tax compliance in its business
operations, strictly following domestic laws and regulations such as the Enterprise Income
Risk Identification and Response
Tax Law of the People's Republic of China and international tax regulations. The Company
Yuwell Medical consistently strengthens its risk identification and response capabilities, standardizes business management processes, is progressively building a comprehensive tax management system, actively promoting the
and achieves risk assessment, control confirmation, and deficiency rectification across core business segments. The Company undertakes implementation of a robust tax management framework, and has established a dedicated
end-to-end process control, systematically identifying and evaluating operational risk sources while refining and monitoring risks relevant tax team to ensure accuracy and compliance in tax management. During the reporting period, the
to its core operations. This includes addressing investment risks, business uncertainties, operational challenges, and sustainability risks, Company maintained an
thereby strengthening its risk prevention and control capability through systematic management. Additionally, the Company incorporates In 2024, Yuwell Medical further fortified its tax compliance management by progressively
significant ESG risks and opportunities into its risk review and business planning processes, fully integrating them into operational and
financial planning to better manage or mitigate risks and seek growth and transformation opportunities.
In 2024, Yuwell Medical actively promoted the application of digital system platforms in risk identification and supervision, achieving timely
implementing a closed-loop system for tax risk identification, assessment, and response,
thereby enhancing its tax risk management capability. In the realm of international
operations, the Company optimized its tax management strategies—including the
management of transfer pricing policies and the utilization of tax treaties—to mitigate
A -grade tax credit rating,
incurring no major tax violations.
identification and effective monitoring of potential risk sources. The Company constantly optimized and improved internal systems such cross-border tax exposures. By conducting internal self-audits and engaging external
as the Information Asset System and Market Activity Expense Regulations, comprehensively raising employees' awareness of compliance reviews, the Company ensured that its tax management practices were aligned with
and risk control. Moreover, the Company strengthened risk management and control of business segments in branches and subsidiaries, relevant governance and control frameworks. In response to the OECD's "Two-Pillar"
issuing documents such as the General Principles for Key Issues Approval of Branches and Subsidiaries , and establishing robust internal global minimum tax reform, the Company assessed its potential impact and established a
control systems for overseas operations to safeguard the Company's global strategy. compliance reporting mechanism to ensure tax fairness and sustainability.
Risk Identification
Risk Assessment
Risk Control
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Adherence to Business Ethics
Governance
Yuwell Medical is firmly committed to the core corporate value of "integrity as the foundation". It strictly adheres to the Company Supply Chain Management
Law of the People's Republic of China , the Anti-unfair Competition Law of the People's Republic of China , the Anti-Monopoly Law
of the People's Republic of China , the Anti-Money Laundering Law of the People's Republic of China , as well as other relevant laws, To establish an honest and transparent supply chain and maintain a fair market environment, Yuwell Medical consistently promotes
regulations, and industry standards. The Company has established and constantly refined its business ethics and anti-corruption compliance and business ethics management among its partners. The Company mandates that all suppliers sign an Anti-commercial
management system, building a comprehensive defense line for ethical business practices.
Bribery Statement and relevant confidentiality agreements before entering into cooperation. This requirement extends to suppliers,
regular distributors, logistics partners, and others. External reporting channels have been established to specifically identify and prevent
Across its global operations, Yuwell Medical has established a comprehensive business ethics and compliance management business ethics risks in commercial processes. In 2024, the Company incorporated business ethics and anti-corruption content into
framework that covers both the Company and its supply chain. The Board's Audit Committee acts as the supervisory authority, supplier conferences, conducting integrity promotion throughout the supply chain to ensure effective implementation of business ethics
overseeing the implementation of ethical management systems and requirements to drive the Company's stable, high-quality policies. A total of five offline training sessions were conducted throughout the year, reaching 522 suppliers.
growth. Meanwhile, the Supervisory Committee—an independent internal oversight unit—assumes the role of monitoring evolving
Yuwell Medical requires suppliers to comply with national and local laws, regulations, policies, and industry standards in their operating
national and industry policies on compliance and business ethics. It evaluates ethical and anti-corruption risks, formulates
jurisdictions. It maintains a zero-tolerance policy towards any form of corruption, fraud, extortion, or embezzlement. Employees found
policies, and closely collaborates with the Audit Department to conduct daily audit supervision, ensuring strict adherence to the
violating these regulations face immediate dismissal and permanent disqualification from re-employment. For partners violating
highest compliance and ethical standards. All functional departments are required to rigorously enforce and implement business
regulations, cooperation is terminated immediately upon verification, and supervision and control of relevant departments during
ethics regulations. Additionally, the Company maintains employee integrity records, which serve as crucial references for employee
collaboration are intensified. The Company reserves the right to conduct on-site or surprise audits of suppliers with appropriate notice
promotion, recognition, and performance evaluations.
to ensure continuous monitoring of supply chain compliance and business ethics risks. If improper or non-compliant behaviors are
Yuwell Medical has developed and constantly refined its business ethics management system, which covers 100% of its business discovered during audits, cooperation is immediately terminated, and responsible parties face serious consequences. In 2024, the
areas and functional departments. This comprehensive system includes the Code of Conduct for Integrity in Business Practices, Company conducted factory audits of 30 suppliers, covering business ethics and anti-corruption related content.
Statement on Anti-Commercial Bribery, Declaration Management System for Employee Conflicts of Interests, Surrender
Management System for Gifts and Cash as Giving, Management Measures for Supervision , and Employee Professional Ethics
and Code of Conduct. These policies ensure that all directors, employees (including part-time staff), headquarters supply chain
partners, and distributors adhere to core principles such as anti-fraud, anti-money laundering, anti-corruption, anti-bribery, fair
competition, anti-monopoly, and conflict of interest prevention. The Company is progressively expanding the application of these
principles to cover suppliers, distributors, and other customer groups of all branches and subsidiaries, thereby reinforcing a robust Throughout the year, a total of encompassing
business ethics defense line across the entire enterprise.
Strategy and Management Mechanisms
were conducted for the supply chain
Yuwell Medical considers business ethics as the cornerstone of its corporate culture, integrating it into the Company's long-term
development strategy and extending this requirement throughout its supply chain to safeguard high-quality development. During
the reporting period, the Company did not face any major litigation cases involving corruption or unfair competition.
Anti-Unfair Competition
Business Ethics Training
Yuwell Medical steadfastly upholds the Anti-Unfair Competition Law of the People's
To cultivate a culture of integrity, Yuwell Medical has developed a comprehensive compliance and business ethics training Republic of China and relevant anti-monopoly and fair competition regulations
program for all employees. This program covers, but is not limited to, onboarding compliance training for new hires, integrity and in all its operational jurisdictions. By strictly prohibiting practices such as price
compliance workshops for functional staff, anti-corruption seminars for directors, and the promotion of supplier codes of conduct. manipulation, false advertising, and trade secret infringement, the Company
During the reporting period, the
The Company integrates employee integrity and compliance performance into promotion, recognition, and performance appraisal actively fosters a fairer and more transparent market ecosystem. Its comprehensive
Company reported no violations
criteria, thereby strengthening employees' awareness of compliance and anti-corruption measures to deter unethical practices and compliance and ethics training program integrates dedicated modules on anti-unfair
of anti-unfair competition laws
fraudulent conduct. In 2024, the Company conducted online compliance and business ethics training and examinations, achieving competition, with eight specialized sessions delivered annually for all staff. These
and regulations.
and learning sessions exceeded 1 hour in duration. Offline specialized training primarily targeted departments such as finance, with, the Company's anti-unfair competition policies. The Compliance Supervision
procurement, storage and transportation, and human resources. Five sessions of compliance and business ethics training for new Department regularly conducts anti-unfair competition reviews, addressing any
employees were conducted, recording 489 attendances. violations with stringent measures.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Whistleblowing Management Impact, Risk, and Opportunity Management
Yuwell Medical upholds a zero-tolerance policy towards corruption and unethical business practices. The Company has implemented the
Yuwell Medical integrates business ethics and anti-corruption risks into its overall risk management framework. To proactively mitigate
Yuwell Medical Management System for Whistleblowing and established diverse reporting channels. Employees, suppliers, distributors,
ethics-related risks, the Company undertakes regular risk identification and assessment, conducting thorough analyses of potential
and other stakeholders are encouraged to report concerns openly or anonymously through mail, telephone hotlines, and other means.
ethical risk factors. This includes evaluating various conflicts of interest, improper benefit transfers, and unfair competition risks in areas
This approach promotes active participation of all employees, suppliers, and partners in the integrity supervision system, ensuring
such as academic exchanges, clinical research, and retail terminal sales. The Company develops compliance policies and procedures
prompt and effective addressing of potential or existing violations of the Company's ethical standards, policies, and applicable laws.
to ensure that all business conduct across operations adheres to ethical standards and legal requirements. Through continuous
The Company has established a core Supervisory Committee tasked with centrally managing whistleblowing complaints. This enhancements to its monitoring system—including internal audits, compliance reviews, and confidential whistleblowing mechanisms—
committee reports directly to the Chairman, thereby ensuring independence and impartiality in complaint resolution and supervisory the Company enables timely detection and disclosure of potential risks.
operations. The whistleblowing process—from investigation to feedback—is typically concluded within 30 days of complaint receipt.
Within the business ethics management framework, the Supervisory Committee and Audit Department conduct ad hoc audits
Confirmed cases of corruption are subject to strict measures based on the severity of the offense.
and oversee the implementation of policies and the management of business ethics risks across various business scenarios. They
Yuwell Medical is dedicated to strictly protecting the confidentiality of whistleblowers' personal information and reported materials. regularly report audit results, significant findings, and matters requiring attention directly to the Board's Audit Committee and the
A confidential whistleblowing receipt ledger is maintained with a unified numbering system for receipts. Designated personnel Chairman, maintaining independence at organizational, business, and individual levels. Additionally, the Company annually reviews
exclusively handle whistleblowing cases and materials, managing them in strict accordance with confidentiality protocols. The Company the effectiveness and compliance of its internal control system, proactively managing potential business ethics risks in operations.
explicitly prohibits disclosing whistleblowers' identities or case details to parties under investigation or unauthorized individuals. While The Supervisory Committee and Audit Department, considering situational factors and based on corporate control requirements and
safeguarding whistleblowers' anonymity, the Company takes stringent measures against any form of retaliation. Verified retaliatory departmental audit plans, constantly conduct targeted audits to enhance risk control in core business areas. The Company develops
actions are dealt with seriously, and behaviors that significantly endanger whistleblowers' rights are promptly reported to judicial continuous improvement plans based on audit outcomes to ensure the effective operation of its business ethics, anti-corruption policies,
authorities for potential criminal prosecution. and compliance systems. Furthermore, it establishes anti-corruption agreements with business partners and implements external
reporting channels to specifically identify and mitigate business ethics risks in commercial processes.
Mailing Address Supervisory Committee, Yuwell Science and Technology Center, No. 1 East Huanyuan
Road, Xuzhuang Software Park, Xuanwu District, Nanjing City, Jiangsu Province
Telephone 025-85582701
Whistleblowing
Channels Email jubao@yuyue.com.cn
Indicators and Targets
Indicator and Target 2024 Achievement Status
Zero major litigation cases
involving corruption or unfair Target achieved
competition
Target achieved
Average anti-corruption training
duration per director: 5.7 hours, with
corruption training
Average anti-corruption training
duration per employee: 6.7 hours, with
commercial Bribery
Statement and Supplier Social
Responsibility Commitment Target achieved
by suppliers, distributors, and
partners of Yuwell Medical's
parent company
Target achieved
whistleblowing reports
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Information Security and Privacy Protection
Governance Overseas Data Security Management
Yuwell Medical's information security and privacy protection governance structure is deeply integrated into its overall governance framework. To strengthen data protection in its global operations and ensure the confidentiality, integrity, and availability (CIA) of data, Yuwell
The IT Leadership Group is responsible for formulating macro strategies and key decisions regarding information security, as well as overseeing Medical strictly complies with relevant international laws and regulations—particularly local data protection requirements in the
the implementation of information security measures. The Information Management Department executes specific information security jurisdictions where it operates. The Company has established a comprehensive Overseas Data Security System that clearly defines
measures, ensuring the continuous and effective running of the information security operation and maintenance system, and reports directly requirements across various dimensions, including overseas data collection and storage, transmission and utilization, sharing and
to the IT Leadership Group. Additionally, the Company has established quantitative information security indicators and a reward/punishment disclosure, emergency response protocols, and supervision and auditing procedures. This robust system rigorously safeguards
mechanism, incorporating information security performance into the employee evaluation system to reinforce information security against security risks associated with overseas data management and cross-border data transfers.
management practices.
Yuwell Medical adheres to the Cybersecurity Law of the People's Republic of China , the Data Security Law of the People's Republic of China,
the Personal Information Protection Law of the People's Republic of China , as well as other applicable laws and regulations in its operational Supply Chain Information Security Management
regions. Benchmarking against standards such as ISO 27001 Information Security Management System and ISO 27701 Privacy Information
Management System, the Company has developed a comprehensive Information Security, Privacy, and Personal Identifiable Information During supplier admission assessments, Yuwell Medical incorporates the protection of customer information security into
Management Manual . This is complemented by a series of management procedures, regulatory systems, and related forms including the its evaluation criteria. Stringent confidentiality clauses are stipulated in the Sourcing Framework Agreement to ensure that
Information Security Management System, Data Security Management System, Information Security Risk Assessment Management Measures, confidential information and related data remain secure. The Company has implemented the Information Security Outsourcing
Information Security Outsourcing O&M Management Regulation , and Overseas Data Security System. Taken together, these measures O&M Management Regulation to conduct thorough security reviews and ongoing monitoring of service providers. This proactive
constitute a robust information security protection system that spans all business areas. The system ensures the security of the Company's approach allows for the timely detection and correction of various anomalies in the service process, mitigating risks such as
information infrastructure, application systems, products, and customer information, thereby safeguarding operational continuity. information leakage, tampering, unavailability, unauthorized access, and physical environment or facilities damage.
Strategy and Management Mechanisms
Personal Information and Privacy Protection
Yuwell Medical adheres to the management principle that "Information assets are the foundation of survival; privacy security is
everyone's responsibility". The Company has established clear procedural standards across various aspects, including information Yuwell Medical adheres to the privacy protection principles of "legality, authorization, and confidentiality", integrating data privacy
security and privacy protection policy regulations, risk and impact assessments, lifecycle management, network and information security protection into its overall compliance management framework. The Company is working to improve its privacy data management
emergency management, monitoring, and auditing. These standards strictly govern employee behavior in areas such as network system, which covers various types of product data. This effort aims to ensure transparency in how data is collected and used.
security, operation and maintenance management, data center management, system changes, personal information and privacy This system ensures compliance at every stage of the personal information lifecycle—from collection and usage to transmission,
protection, and overseas data security. The Company emphasizes information security and privacy protection training and conducts storage, and deletion. Furthermore, the Company actively engages in formulating industry standards for medical data security,
regular audits to constantly enhance its capabilities in these critical areas and personal identifiable information management. thereby promoting the standardized, secure, and efficient use of medical data.
Information System and Data Security
Data Backup Tiered Control of Enhanced Technical Information Security Information Security
and Recovery Data Assets Protection Emergency Management Culture Building
The Company has implemented The Company has classified and The Company constantly upgrades The Company regularly improves its The Company includes information security as
comprehensive data recovery plans, graded its data assets, including its information security protection Cybersecurity Emergency Response part of its onboarding programs to ensure new
which specify the requirements marketing, production, financial, capabilities, implementing Plan. An early warning and emergency hires understand role-specific security risks and
and protocols for data backup, and R&D data, according to a three- encryption/decryption management response technology platform baseline requirements. Regular company-wide
extraction, and usage to ensure tier system (i.e., core, important, and for servers and terminal data. has been established to enhance training sessions and awareness campaigns are
rapid recovery in case of loss or general data). Targeted protection Internal and external firewalls, capabilities for swift detection and held to highlight the importance of information
damage. Cloud services and NAS measures have been applied based situation awareness systems, and analysis of security incidents. Protocols security in daily tasks, helping employees better
(Network Attached Storage) have on this classification, with enhanced other intrusion detection and for managing and handling emergency identify and prevent potential data security
been utilized for scheduled full/ tiered control and permission prevention mechanisms have events have been strengthened issues. During the reporting period, the Company
incremental backups to mitigate management to ensure optimal been deployed. Network isolation to ensure prompt and effective delivered 15 specialized information security
data loss risks. Quarterly recovery protection for the most sensitive protocols have been strengthened, information security responses. Thirty- training sessions, covering topics such as
drills of backup data in simulated and critical data. These actions help complemented by regular security five information security emergency overseas data classification, information security
environments are conducted to reduce the risks of data breaches, loss, assessments and vulnerability scans drills were successfully conducted management, and endpoint protection security.
verify recoverability. and misuse while improving data to maintain a robust data security throughout the year. Yuwell Medical's Information
management efficiency and security. protection framework. Security Promotion Poster
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
mechanisms. At the management level, the Company has implemented comprehensive information security and privacy
The Company conducts all operations involving personal data collection, storage, processing, protection policies and procedures. Ongoing training and preventive management are also emphasized to avoid, transfer, and
transportation, and use in strict accordance with applicable laws, regulations, and codes of mitigate information security risks.
conduct, conscientiously safeguarding the legitimate rights and interests of data subjects.
Principle The Company requires users to verify the legality and compliance of external data sources before Yuwell Medical regularly audits its information security management system in alignment with its business characteristics,
of Legality introducing them into Yuwell systems or storage infrastructure. constantly monitors information security technology trends, and evaluates and enhances risk control measures to maintain
robust information security protection capabilities, thereby ensuring business continuity and data asset security. The Company
conducts specialized audits across five key areas: user access management, system development, system changes, logical
Prior to obtaining personal information, the Company mandates the signing of a Yuwell Software access, and other general controls. Independent third-party organizations are also engaged to audit the Company's information
Service Agreement with individual consent, fully respecting and upholding the rights of individuals security system and provide Information System Audit Reports , validating the effectiveness and compliance of information
to be informed, access, correct, and delete their information. security management practices. For managing data overseas, the Company has set up dedicated teams or roles focused on data
security supervision. These teams are responsible for the daily monitoring and inspection of data processing activities outside the
The Company meticulously assesses the necessity of obtaining personal data, refraining from country. They regularly review the implementation of data security protocols, data access logs, security incident reports, and other
accepting or collecting data unrelated to its business functions. relevant information, aiming to swiftly identify and rectify any data security discrepancies or violations. The Company periodically
Principle of
Authorization The Company guarantees relevant parties' rights to knowledge, choice, and control over their engages internationally accredited third-party security audit firms to conduct comprehensive assessments of its overseas data
personal information. Only authorized data is obtained and used, with a series of measures taken security management system. Any identified issues are promptly addressed in accordance with audit recommendations, ensuring
to minimize the use of personal information. continuous improvement in data security management standards.
The Company maintains strict confidentiality of privacy data, refraining from sharing, transferring,
or disclosing users' personal information to any third-party company, organization, or individual
without explicit permission. It establishes robust data security capabilities, implements necessary
Principle of management and technical measures, and conducts regular inspections and evaluations of the
Confidentiality effectiveness of privacy data management and technical safeguards to prevent data breaches,
damage, loss, or tampering.
Yuwell Medical has successfully The Yuwell Anytime system has
obtained ISO 27001 and ISO achieved Level 3 Information System
Impact, Risk, and Opportunity Management
Yuwell Medical has implemented the Information Security Risk Assessment Management Measures , establishing a clear process for
Indicators and Targets
assessing information security risks. This thorough procedure encompasses risk assessment preparation, threat and vulnerability
identification, risk evaluation and analysis, risk treatment, residual risk management, and risk control. By quantitatively assessing
risk levels, the Company enhances its capability to accurately identify and evaluate potential cybersecurity threats, facilitating
the development of targeted mitigation strategies. The information security risk assessment team comprises cross-departmental Indicator and Target 2024 Achievement Status
cybersecurity personnel and external experts, ensuring a comprehensive and professional evaluation through collaborative
expertise. Assessment methodologies incorporate a mix of questionnaires, interviews, automated scans, manual inspections,
document reviews, and ethical penetration testing. Risk levels are determined by integrating both the value of the assets involved 100% coverage rate of information security training Target achieved
and the likelihood of potential threats occurring. The Company conducts risk assessments at least annually and updates them in
response to changes in information systems, business operations, and information security incidents, thereby maintaining timely
and effective risk management.
Target achieved
critical business system permissions
During the information security risk assessment process, Yuwell Medical systematically identifies a wide range of potential
risks, including technical risks (e.g., hardware and software failures, physical environmental impacts, malicious code, and
viruses), human risks (e.g., negligence, operational errors, mismanagement, unauthorized access or abuse, and hacker attacks),
management risks (e.g., inadequate security policies, organizational security management deficiencies, and low personnel Zero major information security incidents Target achieved
security awareness), and legal and regulatory risks (e.g., potential legal liabilities or reputational damage resulting from non-
compliance with relevant laws and regulations). These risks are incorporated into the enterprise-wide risk management framework
to safeguard the Company's information assets, thus ensuring privacy protection. Yuwell Medical deploys multidimensional risk Zero information leakage incidents Target achieved
prevention and control measures to mitigate information security risks. At the technical level, the Company has established a
robust protection system incorporating network isolation, data encryption, firewalls, vulnerability scanning, and early warning
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Sustainable Supply Chain
Governance Supplier Evaluation and Improvement
The quality, resilience, and sustainability of the supply chain are paramount to Yuwell Medical's stable development. The Company has Yuwell Medical employs a classified and tiered management approach for its suppliers. Based on the type of products and services
established an efficient supply chain management system through a clear delineation of responsibilities and robust cross-departmental provided, suppliers are categorized into material suppliers, storage and transportation suppliers, and IT service suppliers, with tailored
collaboration mechanisms. The Supply Chain Management Department comprises four specialized teams: the planning and management requirements and standards established for each category. The Supplier Management Control Procedure clearly
procurement team, the resource development team, the advance procurement team, and the indirect procurement team. These teams delineates protocols for supplier audits, performance evaluations, and potential restrictions or eliminations. Following classification
are responsible for managing the entire lifecycle of suppliers. They lead and participate in supplier evaluations in line with the Company's and tiering principles, the Company develops rigorous annual audit plans for all admitted suppliers. This process includes issuing and
procurement policies and requirements, and coordinate all activities related to suppliers. The Quality Department works closely with the distributing Supplier Evaluation Forms and conducting regular monitoring and thorough assessments of suppliers' qualifications,
Supply Chain Management Department to carry out thorough supplier audits, assessments, and controls. Together, they aim to build a contract performance, quality management practices, and social and environmental impacts through both remote and on-site audits.
high-quality and resilient supply chain. Based on the audit findings, the Company issues Supplier Corrective and Preventive Action Reports , providing prompt feedback to
suppliers and guiding them through targeted improvement efforts in response to identified issues. During the reporting period, Yuwell
Yuwell Medical strictly adheres to the Law of the People's Republic of China on Invitation and Submission of Bids and its associated Medical's parent company conducted 65 on-site audits, including evaluations of newly admitted suppliers.
implementation regulations, alongside other pertinent laws and regulations. The Company has formulated internal management
standards, including the Supplier Management Control Procedure and Procurement Control Procedure. These standards govern
the entire supplier lifecycle—from screening and onboarding to collaboration, evaluation, and exit. By strictly enforcing supply chain
compliance requirements, the Company establishes a fair and equitable procurement environment while constantly optimizing supplier Material Supplier Management
portfolios, thereby enhancing overall supply chain efficiency and risk resilience.
Ensuring a high-quality and stable material supply is critical to guaranteeing product safety and reliability from the source. Yuwell
Strategy and Management Mechanisms
Medical prioritizes material supplier management by implementing a category-based and tiered approach. This system classifies
suppliers according to four key criteria: the criticality of the component's role in the final product, the complexity of its production
process, its risk level to product quality and safety, and audit sample test results. The Company develops annual supplier audit
Guided by its overarching business strategy, Yuwell Medical consistently refines its supplier lifecycle management, formulates and
plans to evaluate the systems of material suppliers listed in the Qualified Supplier Directory . Quarterly performance assessments
implements sustainable procurement policies, reinforces data-driven decision-making processes, and enhances collaborative
are conducted to inspect the quality of supplied goods, with underperforming suppliers required to analyze root causes and
efficiency. The Company is committed to building a competitive, resilient, and sustainable supply chain, providing a solid
implement corrective and preventive actions (CAPA). The Company establishes strategic partnerships with reputable key material
foundation for achieving its strategic objectives.
suppliers to achieve long-term supply chain stability.
The Company has implemented robust exit mechanisms at various stages of supplier management to maintain stringent
Supplier Lifecycle Management
quality control. For material suppliers, after passing the initial screening and admission process, new suppliers' materials
undergo production trial evaluations. Suppliers failing three production trials are eliminated. During annual audits, suppliers
Supplier Screening and Admission receiving a C-grade are required to improve within a specified timeframe and face elimination if they fail a re-evaluation.
Suppliers receiving a D-grade are immediately disqualified. Those receiving three consecutive C-grades are downgraded to D
Yuwell Medical has deployed a robust mechanism for screening and admitting suppliers. By developing multi-dimensional
and have their supply qualifications suspended.
evaluation standards, the Company carries out thorough qualification reviews of potential suppliers. These assessments evaluate
supply and delivery capability, financial risk capability, quality assurance capability, R&D and technical capability, and adherence
to sustainability requirements. Suppliers who meet these criteria are included in the Qualified Supplier Directory and are subject to
Assessment Grade Assessment Result Score Treatment Method
classified and tiered management, contributing to the development of a high-quality supply chain ecosystem.
Occupational health and safety, information security protection, environmental A Excellent supplier ≥ 90 Priority procurement
Supply and
stewardship, procurement and supplier management, delivery efficiency, and
Delivery Capability
warehousing and transportation management.
B Standard supplier 70-89 Normal procurement
Financial Risk
Asset quality indicators, profitability metrics, and internal control management systems.
Capability Time-limited
Provisionally acceptable
C 60-69 improvement, reduced
Quality management systems, personnel training programs, equipment management supplier
Quality Assurance procurement
protocols, quality control practices, supplier management procedures, and warehouse
Capability
management efficiency.
Supply qualification
D Unqualified supplier <60
cancelled
R&D and Technical Technical reserves, R&D and design capabilities, new product introduction processes,
Capability and engineering management competencies.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Collaborative Win-Win with Suppliers
Yuwell Medical actively fosters cooperation and exchange with suppliers, delivering professional training and placing a strategic
focus on the development of small and medium-sized vendors. The Company provides tailored support to suppliers facing
temporary challenges, constantly optimizing the supplier ecosystem to enhance overall supply chain competitiveness. Through
multilateral dialogue and communication, the Company proactively shares updates on production requirements, product quality Total number Proportion of suppliers subjected
standards, and company policy interpretations. With an open and cooperative approach, the Company grows alongside its of suppliers to environmental assessments
suppliers, achieving collaborative optimization and sustainable development of the supply chain.
Case
Annual Supplier Conference
In October 2024, Yuwell Medical hosted its 2024 Annual Supplier Conference themed "Quality, Wisdom, Supply, and Win". The
conference comprised four sessions, engaging 309 suppliers of the Company and 213 suppliers of its branches and subsidiaries.
Proportion of suppliers subjected On-time payment
Supplier partners from around the globe actively attended the event, collectively exploring product innovation-driven industrial
to quality and safety assessments rate to SMEs
upgrading and the future development of globalized supply chains.
Note: Statistics pertain to Yuwell Medical's parent company.
Sustainable Procurement
Yuwell Medical integrates sustainability requirements into its
supply chain management system, explicitly mandating the
consideration of environmental, social, and governance factors in
the procurement process. Suppliers are required to sign documents
such as the Supplier Anti-Commercial Bribery Commitment and Product and Service Quality Business Ethics and Anti-Corruption Environmental Protection and Labor Rights
Supplier Social Responsibility Commitment , ensuring compliance
with BSCI (Business Social Compliance Initiative) regulations and
The Company clearly articulates its quality requirements in The Company mandates all suppliers to sign the Supplier The Company conducts comprehensive social responsibility
legal requirements. These commitments encompass principles
the Quality Agreement and Freight Transportation Services Anti-commercial Bribery Statement . It reinforces advocacy audits on suppliers in accordance with BSCI and local government
including anti-bribery, anti-corruption, anti-monopoly, anti-money
Contract . A robust quality information sharing mechanism and training, and when necessary, conducts thorough requirements, resulting in detailed Supplier Social Responsibility
laundering, and conflict of interest avoidance in business conduct.
is established with suppliers, alongside regular audits and due diligence investigations and audits of partners based Audit Reports. These audits cover multiple critical areas including
They also prohibit the use of child labor and forced labor, mandate
assessments. When necessary, quality training, technical on cooperation projects. The aim is to foster long-term child labor, forced labor, occupational health and safety, freedom
the provision of safe and healthy work environments, respect for
cooperation, and exchanges are provided to strictly control partnerships with suppliers who adhere to high standards of of association and collective bargaining, anti-discrimination, and
employee rights, elimination of discrimination, and establishment
quality risks at all stages. For detailed information, please refer business ethics. For detailed information, please refer to the environmental issues. Suppliers who have obtained relevant
of social responsibility management systems. The Company
to the "Product Quality and Safety" section of this report. "Adherence to Business Ethics" section of this report. environmental management system and occupational health
implements and monitors supplier sustainable procurement
and safety certifications are given favorable consideration during
requirements through rigorous supplier assessments, contractual
admission and audits, encouraging suppliers to strengthen their
terms, training and education, and regular audits to ensure supply
sustainability management practices.
chain sustainability and stability. Additionally, the Company treats
suppliers with integrity, adhering strictly to legal requirements
for timely payment to small and medium-sized enterprises, thus
protecting their legitimate rights and interests.
In 2024, 231 suppliers of Yuwell Medical's parent company were
certified for quality management systems, 30 for environmental
management systems, and 66 for occupational health and safety
management systems.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Resilient Supply Chain Impact, Yuwell Medical navigates a diverse landscape of supply chain risks, encompassing quality
risks (e.g., raw materials, products, and services), supply risks (e.g., supplier disruptions,
Establishing a resilient supply chain and ensuring business continuity are pivotal aspects of building a sustainable supply chain. Risk, and raw material shortages, transportation delays), financial risks (e.g., price fluctuations,
Opportunity
Yuwell Medical proactively enhances its supply chain safeguarding measures to ensure stability and reliability. In 2024, the market volatility), compliance risks (e.g., violations of laws, regulations, and company
Company maintained stable raw material supplies, with no production disruptions attributed to material shortages. policies), and ESG risks (e.g., labor rights, occupational health and safety, business
Management ethics, and anti-corruption). The Company's internal management standards, including
the Supplier Management Control Procedure and Procurement Control Procedure ,
comprehensively address supply chain risks and implement meticulous risk control
measures across all supply chain stages.
The Company expands its supplier network and builds secondary sourcing capabilities along
The Company conducts annual, in-depth identification and assessment of potential
with a supplier rotation mechanism. Through a diversified supply network and primary/backup
supply chain risks, including ESG risks. It performs thorough analyses of specific mitigation
strategies for critical materials, the continuity of key material deliveries is assured. The Company
Dual measures for different supplier categories and develops comprehensive annual audit
maintains a robust supplier pool for priority categories and constantly optimizes suppliers to
Sourcing plans. Regular monitoring and holistic evaluations of suppliers are conducted to ensure
mitigate supply risks.
effective control of supply chain risks. In cases where a supplier's assessment performance
is subpar, the Company generates a Supplier Corrective and Preventive Action Report ,
formulating and implementing targeted risk management measures to contain or
The Company bolsters its supply chain digital management through real-time tracking and mitigate the risk. For suppliers presenting extreme risks, it swiftly terminates cooperation.
monitoring, with particular emphasis on high- and medium-risk materials. Advanced data analysis The Company constantly monitors and tracks the implementation of supplier risk
and forecasting techniques are employed to promptly identify and resolve potential issues, management measures, periodically evaluating their effectiveness. To address supply
maintaining the stability of raw material supply. chain issues promptly, a robust emergency response mechanism has been established to
mitigate the potential impact of supply chain risks on business operations.
The Company has established an intelligent WMS (Warehouse Management System) to enhance
Digital real-time inventory tracking and predictive analysis, optimizing inventory strategies and ensuring
dynamic management to maintain optimal inventory levels and sufficient supply of critical materials.
Indicators and
Management
The Company has optimized its logistics network, including streamlining transportation routes, Indicator and Target 2024 Achievement Status
rationalizing transportation methods, and fostering robust partnerships with logistics providers to Targets
ensure supply chain efficiency. Target achieved
No instances of unfinished
Zero business interruptions
manufacturing tasks due to supply
chain disruptions.
The Company has developed differentiated emergency response and backup plans based on the
severity levels of production activities and the likelihood of supply delays, ensuring rapid response
Target achieved
and recovery in emergencies. Incoming material
Incoming material acceptance rate:
acceptance rate ≥ 98.50%
Contingency The Company has established and constantly refined a multi-site layout to provide mutual 99.03%
Planning backup facilities, ensuring uninterrupted product supply in the event of natural disasters, unusual
accidents, or significant changes in the external environment. 100% of suppliers underwent
environmental, quality, and Target achieved
safety assessments.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Innovation-Driven
Development
Empowering Life Through
Technology
R&D investment throughout the year
RMB 546.68 million
Yuwell health products covered by digital health services
First-pass yield
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Empowering Health Through Innovation
Governance New quality productive forces, with innovation at their core, drive enterprises to explore novel
development paths and create fresh competitive advantages. Yuwell Medical has established
a scientific and efficient innovation and R&D project decision-making and management
system, focusing on cultivating and applying new quality productive forces. The Board of
Directors oversees decisions related to innovation strategy, ensuring that innovation aligns
Fluid Simulation Motor Drive Compressor R&D
with the Company's overall strategy. The management team delivers robust support for R&D
Technology Platform Technology Platform Application Platform
projects through a review mechanism for innovation management, optimizing resource
allocation strategically. Meanwhile, the R&D Department, in collaboration with the Industrial
Design Center, drives innovation implementation to ensure the Company's product
development and technical research remain advanced and forward-looking. Additionally,
the Company has broken down functional barriers by establishing mechanisms for cross- New Material Advanced Anti-HCT Interference Micro-nano Laboratory
functional collaboration and resource sharing. This ensures close cooperation and efficient Technology Platform Technology Platform MEMS Process Platform
synergy among R&D, marketing, production, and quality departments throughout the entire
process from R&D and production to market promotion, actively responding to the industry
trend towards more intelligent, precise, cutting-edge, and internationalized medical and
health industry chains.
Leveraging its profound R&D technological foundation, Yuwell Medical focuses on multiple key areas such as respiratory therapy and
To ensure high-quality and efficient advancement of R&D innovation, Yuwell Medical has
blood glucose management. The Company has achieved numerous important technological breakthroughs and obtained a series of
formulated comprehensive R&D innovation management systems. These include the Yuwell
internationally advanced, proprietary achievements and patents. It possesses multiple national, provincial, and ministerial-level scientific
Medical R&D Management System, Yuwell Medical R&D Cost Collection and Accounting
research innovation platforms, including the National Enterprise Technology Center, National Industrial Design Center, and National
Management Methods, Yuwell Medical Technology Achievements and Innovation Rewards
Postdoctoral Scientific Research Workstation. The Company has repeatedly undertaken national and provincial key projects such as
and Discipline Methods, and Yuwell Medical Industry-Academia-Research Collaboration
National Key R&D Programs, National Major Technical Equipment Research Projects, and Jiangsu Provincial Scientific and Technological
Management Measures. These systems are developed in accordance with relevant domestic
Achievement Transformation Projects, accelerating the transformation and industrialization of technological achievements.
and international laws, regulations, technical guidelines, industry norms, and standards.
They clearly define requirements and standards for R&D project initiation management,
project management, production transfer management, takeover management,
achievement management, and reward mechanisms. Leveraging cross-departmental IPD
(Integrated Product Development) process and PLM (Product Lifecycle Management) tools,
Received Receive Received
the Company accelerates the cultivation and development of new quality productive forces,
enhancing its core industrial competitiveness.
Strategy and Adhering to the vision of "leading industry development through innovation and
enhancing the health of millions of families", Yuwell Medical follows the development
national scientific and national scientific provincial scientific and
Management
technological innovation awards and technological innovation technological innovation awards
strategy of "reshaping medical devices through innovation". The Company consistently during the reporting period awards cumulatively during the reporting period
Mechanisms increases R&D investment in line with national strategic needs and development trends
in the medical and health field. It deepens global strategic layout and strengthens the
integration of industry, academia, and research. With R&D innovation as the core engine Receive Nanjing Yuyue Software Jiangsu Yuwell-POCT Biological
of enterprise development, the Company promotes product and service innovation to
Technology Co., Ltd. was recognized as Technology Co., Ltd. was recognized as
bring high-value medical solutions to society. a High-Tech Enterprise a Specialized, Refined, Differentiated
provincial and Innovative (SRDI) SME and a
R&D Innovation System Jiangsu Provincial Private Science
scientific and technological
and Technology Enterprise
Yuwell Medical focuses on building a global R&D network, establishing multiple R&D centers innovation awards cumulatively
and production bases in Germany, Italy, Shanghai, Shenzhen, Nanjing, Suzhou, Danyang,
Xizang, and other locations. The Company actively integrates R&D innovation resources
Shanghai Likang Disinfectant Shanghai Medical Instruments
from domestic and international research institutions and universities, constructing high-
Hi-Tech Co., Ltd. was recognized as (Group) Co., Ltd. was recognized as
level, open scientific and technological innovation platforms and comprehensive innovation
an SRDI SME a High-Tech Enterprise and
systems. It has established multiple internationally leading R&D technology platforms and
conducts technological innovation research and key technology breakthroughs through a SRDI SME
diverse R&D strategies, such as independent research and cooperative development, to
achieve rapid iteration and optimization of product lines.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Industry-Academia-Research Cooperation
Respiratory Therapy Yuwell Medical embraces the concept of open collaboration and has formulated the Industry-Academia-Research Collaboration
Management Measures . It partners with high-level third-party institutions to establish comprehensive innovation centers integrating
Yuwell Medical's oxygen concentrator technology has undergone three generations of technological upgrades, amassing nearly R&D, talent cultivation, and business exploration, accelerating technological innovation processes and nurturing professional talent for
class levels, enabling customized treatment solutions. In 2024, the Company advanced the innovative development of variable research institutes, and clinical hospitals, including the Chinese Academy of Sciences, Beijing Institute of Technology, Nanjing University,
frequency scroll oxygen concentrators, achieving noise control between 29-34dB(A) and increasing compressor lifespan by 30%- Southeast University, Sichuan University, Peking Union Medical College Hospital, and Jiangsu Provincial Hospital. These collaborations aim
of an integrated respiratory oxygen machine, offering new solutions for mobile medical scenarios such as chronic obstructive development of the healthcare industry.
pulmonary disease and sleep apnea.
Case National Key R&D Program Successfully Completed, Marking a Major Breakthrough in
Continuous Glucose Monitoring
In 2024, Yuwell Medical's oxygen In September 2024, the National Key R&D Program titled "Development of a Wearable Continuous Glucose Monitoring System and Its
concentrator assembly workshop Application in Personalized Diabetes Health Management" successfully passed final acceptance. This project was led by Yuwell Medical and
was awarded the National Workers' jointly undertaken by more than ten institutions, including the Institute of Microelectronics of the Chinese Academy of Sciences, the Institute
Pioneer title. Yuwell's proprietary of Electronics of the Chinese Academy of Sciences, the Suzhou Institute of Biomedical Engineering and Technology of the Chinese Academy of
a d s o r pt i o n te c h n o l o g y, n o i s e Sciences, and Peking Union Medical College Hospital. This represents a significant technological breakthrough for Yuwell Medical in diabetes
reduction technology, and intelligent management, particularly in real-time CGM systems. Through a combination of sensor optimization and algorithm refinement, the project
oxygen control software are all at the improved data accuracy and stability while facilitating personalized health management via big data and AI integration.
forefront of international standards. The project focused on the R&D of cutting-edge technologies for various forms of CGM, including minimally invasive and implantable systems, as
well as the establishment of personalized diabetes health management platforms. It offers diabetic patients a more convenient and accurate way to
monitor their blood glucose levels, allowing both doctors and patients to adjust management strategies in real time. By minimizing user discomfort
and reducing infection rates, the project demonstrates notable advantages—particularly in clinical efficacy, comfort, portability, and safety.
Talent Development and Innovation Culture
Yuwell Medical firmly believes that talent is the driving force behind technological innovation. The Company has established a
comprehensive talent lifecycle management system covering attraction, nurturing, retention, and utilization. By integrating full-time
recruitment with flexible work arrangements, it has built an innovative professional team of over 2,200 members, including more than 100
doctoral-level professionals and senior experts. Among the team members are over 30 high-level talents who have been recognized under
major national talent programs, including recipients of the National Major Talent Project, members of the Chinese Academy of Sciences'
Hundred Talents Program, talents selected for Jiangsu Province's Entrepreneurship and Innovation Program, and top-tier experts honored
under Zhenjiang's Jinshan Talent Program and the Danfeng Chaoyang Initiative.
To constantly enhance the team's technical proficiency and innovative capabilities, the Company prioritizes the cultivation of strategic R&D
management talent. It regularly organizes cross-functional R&D training and exchange sessions for employees. Through a mix of internal/external
Blood Glucose Monitoring training programs, technical seminars, and workshops, the Company facilitates knowledge sharing and technical collaboration, helping staff keep
pace with cutting-edge technologies and industry trends. Additionally, the Company hires industry experts as R&D consultants to foster resource
Yuwell Medical has diversified its portfolio from traditional fingertip blood glucose meters (BGM) to continuous glucose monitoring sharing and complementary advantages, driving upgrades in corporate technology and self-reliant innovation in core R&D areas.
(CGM) systems. Traditional BGM products have undergone continuous optimization in test strip design, significantly enhancing
Yuwell Medical has introduced innovative incentive mechanisms, such as the R&D Quarterly Star Selection, and implemented the
measurement accuracy and user experience, suitable for daily monitoring and rapid testing in emergency situations. CGM
Performance Commitment Management Measures and Technology Achievements and Innovation Rewards and Discipline Methods. These
systems provide accurate blood glucose monitoring data and more convenient, precise solutions for diabetic patients through
initiatives are designed to stimulate employees' enthusiasm for innovation and provide preferential resources for outstanding innovative
high-performance chips, micro-sensors, and advanced algorithms. The Company is accelerating its presence in the CGM field. In
projects. In addition, the Company drives cross-disciplinary technological innovation initiatives to nurture an innovation culture that
January 2025, the Anytime 4 series CGM product obtained the medical device registration certificate, featuring disposable sensors
supports experimentation and embraces failure. This approach not only unlocks employees' innovative potential but also sustains a
that can be used constantly for 15 days, significantly improving accuracy and ease of use. In April 2025, the Anytime 5 series CGM
dynamic environment of continuous innovation and exploration, providing long-term momentum for the Company's development.
product received the medical device registration certificate, adopting an integrated structural design paired with the Company's
latest sensor and algorithm development platform, further enhancing product accuracy and usability.
Case
Yuwell Medical's blood glucose management strategy focuses on seamless integration between in-hospital and out-of-hospital Establishing a Qualification System to Accelerate R&D Talent Pipeline Development
care, achieving a comprehensive solution. In-hospital management delivers real-time blood glucose data through the CGM
system, enabling clinicians to develop personalized treatment plans and reduce the risk of abnormal blood glucose levels. Out-of- In 2024, Yuwell Medical's Innovation Institute implemented the Consumer Health R&D System Qualification Assessment project,
hospital management harnesses the integration of portable home monitoring devices and mobile applications, thereby enabling establishing professional talent qualification standards covering multiple technical domains including software, hardware, structure,
patients to access real-time data, conduct trend analyses, and receive health recommendations. Collectively, these solutions and registration. Through a rigorous standard development and certification process, five core technical personnel were successfully
empower diabetic patients to adjust their lifestyles based on data-driven insights while offering data-sharing capabilities and identified and certified, bringing the total number of certified individuals to 28. The qualification assessment scientifically promoted talent
reminder functions for family and friends, further enhancing patient engagement in their care. development and strengthened the R&D expert pipeline, providing solid talent support for product R&D and innovation, thus driving the
Company's continuous technological innovation.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Technology Ethics
Yuwell Medical adheres to the principle of "doing the right thing in the right way", complying with scientific and technological ethical norms
and advocating the cultivation of social responsibility values. Based on market and customer-oriented independent innovation, with core
Impact, Risk, Identifying and managing risks associated with innovation activities is crucial for
maintaining a company's sustained competitiveness. To address various risks, including
technologies as the focus and excellent quality as the guarantee, the Company commits to not developing or using scientific technologies and Opportunity rapid technological advancements, the impact of emerging technologies such as AI
that harm the natural environment, life and health, public safety, and ethical morals. Through the development of innovative and applicable
new products, technologies, and processes, the Company aims to bring positive impacts to social progress.
Management and big data, new product development challenges, potential loss of scientific talent,
and policy and regulatory uncertainties, Yuwell Medical has implemented a cross-
departmental IPD management process. This comprehensive approach ensures that
Regarding data processing, the Company follows the principles of legality, confidentiality, and authorization, ensuring that the collection, risk management activities are seamlessly integrated throughout the entire product
storage, and use of personal data are compliant while fully protecting the legitimate rights and interests of data subjects (for detailed development cycle.
information, please refer to the "Information Security and Privacy Protection" section of this report).
The IPD process facilitates swift information exchange between departments and
In clinical research processes, Yuwell Medical strictly adheres to standards such as the Declaration of Helsinki, the Good Clinical Practice enables multi-perspective project reviews through collaboration among cross-
for Medical Devices , and the ISO 14155 management system. All clinical research projects must undergo review by independent ethics functional teams in R&D, marketing, production, procurement, and after-sales service. By
committees and are subject to regular supervision and evaluation. Research subjects receive detailed information about the purpose of integrating market trend analysis, technology forecasting, and structured development
the study, the procedures involved, and any potential risks. Their written consent is obtained to ensure informed consent and voluntary workflows, the Company systematically identifies risks across technical, market, supply
participation. Data collection and utilization adhere strictly to legal requirements, ensuring the privacy and security of subjects' data. chain, and financial domains. This iterative process constantly enriches the Company's
Throughout the research process, a specialized mechanism monitors subjects' health and safety, providing timely medical support to risk database, enabling real-time monitoring and proactive mitigation of potential R&D
maintain the study's scientific and ethical integrity while safeguarding subject rights. challenges. To address the inherent uncertainties in technological development, the
IPD process emphasizes a market-demand-driven approach, ensuring that product
Intellectual Property Protection development closely aligns with customer needs. This strategy allows for continuous
refinement and optimization throughout the product development process, reducing
Yuwell Medical strictly complies with the Patent Law of the People's Republic of China , the Trademark Law of the People's Republic of the risk of R&D innovation deviation through iterative improvements and rapid responses
China, the Copyright Law of the People's Republic of China, the Anti-Unfair Competition Law of the People's Republic of China, and to market changes. The IPD framework emphasizes continuous risk governance through
regulatory requirements in the medical device industry. The Company has developed a series of management measures, including the regular reviews of risk registers and evaluations of mitigation strategy effectiveness.
Intellectual Property Management System of Jiangsu Yuyue Medical Equipment & Supply Co., Ltd, and set up a dedicated Intellectual Risk management plans are dynamically adjusted based on project milestones and
Property Management Department. By refining its IP management system, conducting regular internal audits and external reviews, external environmental shifts. To ensure real-time project visibility, the Company has
and strengthening the management of R&D outputs, the Company effectively prevents the loss of intangible assets while fostering instituted risk early warning mechanisms and escalation protocols. In collaborative
employees' enthusiasm for invention and creative innovation. In day-to-day operations, the Company prioritizes cultivating employees' initiatives, Yuwell Medical rigorously assesses partners' reputations and R&D capabilities,
IP awareness through regular training sessions, helping them understand the significance of intellectual property and how to apply and safeguarding corporate interests through robust confidentiality agreements and well-
protect it effectively in their work. To safeguard R&D achievements, the Company has also developed an R&D Intellectual Property Risk defined contractual clauses that minimize collaboration risks.
Assessment Form and implements rigorous IP protection strategies to mitigate risks of technology leakage and infringement.
Indicators and Targets
While upholding its own intellectual property rights, the Company fully respects the IP rights of others. It is committed to avoiding infringement,
strengthening comprehensive patent risk management, and strictly honoring confidentiality obligations in technical collaborations. Through
such practices, the Company aims to maintain a fair competition environment and foster healthy market development. Indicator and Target 2024 Achievement Status
Target achieved
Ensure R&D investment R&D investment throughout the year:
to drive product upgrades RMB 546.68 million, representing 7.23%
and business development of operating revenue.
through technological
innovation. R&D personnel:1,219, constituting
Target achieved
Increase the number of Maintain 1,195 valid granted patents,
patent applications and with 295 new patent applications filed
grants. during the year and 200 new patents
granted within the year.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Commitment to Uphold Quality
Product Quality and Safety
Governance
Yuwell Medical adheres rigorously to high-standard governance principles, ensuring that
every facet of product design, manufacturing, and distribution meets stringent safety and
quality benchmarks. The Company instills and deepens a culture of quality excellence across all
employees. Through a comprehensive framework of policies, objectives, systems, concepts, and
Full Lifecycle Collaborative Management
standards, it guides quality-driven behaviors and elevates organizational quality competence.
Top management meticulously formulates and regularly updates the Company's quality Product-Sales Synergy Platform, APS Planning and Execution Platform, Intelligent WMS,
IPD Development Process
policy and objectives. The Quality Department, staffed with dedicated professionals including Cloud Platform & Distribution System, "One Item One Code" Platform, "O2P&SG" Platform,
Customer Satisfaction
PLM R&D Management Platform
quality officers, engineers, and system specialists, serves as the central hub for implementing, Big Data Platform, ERP Management System
Customer Needs
monitoring, and constantly improving the quality management system. This department
ensures compliance with quality standards at every production stage. Complementing this, the Design and R&D Procurement Production Sales After-Sales
Company has established an integrated cross-departmental collaboration mechanism that
unites R&D, procurement, production, sales, and after-sales services. This creates a closed-loop
quality management system spanning the entire product lifecycle.
Yuwell Medical remains unwavering in its commitment to producing high-quality, highly Full Lifecycle Quality Management
reliable products. It complies with key regulations, including the Product Quality Law of Customer Complaints and Feedback
the People's Republic of China , the Regulations for the Supervision and Administration of
Medical Devices , and the Good Manufacturing Practice for Medical Devices . Drawing from Digital and Intelligent Production and Sales System
internationally recognized quality management standards?, the Company has developed
the Yuwell Medical Quality Manual, which establishes critical control elements for the quality
management system, aimed at constantly enhancing product quality and safety. The Major Product Certifications? Quality Management System Certifications
Company has implemented a series of quality management procedures, including the Design
and Development Control Procedure, Risk Management Control Procedure, Medical Device
EU Medical Device CE (Conformité Européene) Certification Yuwell Medical has obtained certifications for
UDI Control Procedure, Non-conforming Product Control Procedure, and Production and
quality management systems including ISO 9001
Service Provision Control Procedure. These procedures form the foundation of high-standard
U.S. FDA (Food and Drug Administration) Certification Quality Management System, ISO 13485 Medical
quality management and risk management systems that encompass the entire product valid Devices Quality Management System, and the
lifecycle. In 2024, Yuwell Medical revised six key procedural documents, including the Design
Chinese Class II and III Medical Medical Device Single Audit Program (MDSAP).
and Development Control Procedure, and updated 375 inspection protocols. This extensive EU MDR (Medical Device Regulation) Certification
update ensures that all product manufacturing processes adhere to the latest operational Device Registration Certificates
standards, further elevating the overall quality of the Company's product offerings. KGMP (Korea Good Manufacturing Practice) Certification
Strategy and Management Mechanisms
Notes: 1. The Company adheres to a comprehensive set of national and international standards and regulations, including the GB/T 42061-2022, which
Yuwell Medical's core operational strategy revolves around a user-centric, full-chain is equivalent to ISO 13485:2016 Medical devices - Quality management systems - Requirements for regulatory purposes, the GB/T 19001-2016, which is
valid
collaborative management approach. This strategy takes customer needs as its
equivalent to ISO 9001:2015 Quality management systems - Requirements, the GB/T 42062-2022, which is equivalent to ISO 14971:2019 Medical devices -
foundation, integrating these requirements and high-quality standards throughout the Chinese Class I Medical Device
Application of risk management to medical devices, the Good Manufacturing Practice for Medical Devices, the EU Medical Devices Directive (MDD), the EU
entire business chain, from product design and R&D to procurement, production, sales, Filing Certificates
and after-sales service. The Company utilizes a comprehensive process mechanism In Vitro Diagnostic Medical Devices Directive (IVDD), the EU Medical Devices Regulation (MDR), the EU In Vitro Diagnostic Medical Devices Regulation (IVDR),
supported by management systems, key performance indicators (KPIs), incentive the Brazilian Health Regulatory Agency Resolution No. 665 (RDC ANVISA 665/2022), the U.S. Code of Federal Regulations Title 21, Part 820 - Quality System
policies, and team structures. Through this integrated framework, it drives rigorous Regulation, the Japanese Ministerial Ordinance No. 169 Ordinance on Standards for Manufacturing Control and Quality Control of Medical Devices and In
quality and risk management across the entire product lifecycle, ensuring superior Vitro Diagnostic Reagents (MHLW Ministerial Ordinance No. 169), the Australian Therapeutic Goods (Medical Devices) Regulations 2002, the Korea Good
product quality while enabling prompt and flexible responses to customer needs.
Manufacturing Practice (KGMP) Audit for Medical Devices, the Canadian Medical Devices Regulations (SOR/98-282), and the Medical Device Single Audit
Customer feedback is effectively disseminated and actioned across all value chain
Program (MDSAP) Audit Approach (MDSAP AU P0002.008).
links, thereby ensuring the delivery of high-quality products that meet customer
expectations. This strategy not only enhances market competitiveness but also lays a 2. The medical device product registration and filing certificate data encompass Yuwell Medical's parent company, Suzhou Medical Appliance Factory,
solid foundation for the Company's long-term sustainable growth. Furthermore, Yuwell Suzhou Yuwell Medical Technology Co., Ltd., Primedic (Jiangsu) Medical Science and Technology Co., Ltd., Jiangsu Yuwell-POCT Biological Technology Co.,
Medical has achieved efficient and precise control of the production process through Ltd., 66 Vision Tech Co., Ltd., Xizang Yuwell Medical Investment Co., Ltd., Shanghai Medical Instruments Group, and Chalice Solution PTE Ltd.
intelligent manufacturing, whole-process data management, and automated testing,
ensuring consistently high product quality standards.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
End-to-End Lifecycle Quality Management
R&D and Design Procurement Production Sales Post-Market Quality Management
The Company has implemented a comprehensive end- The Company implements centralized The Company implements strict The Company has achieved data The Company has established long-
to-end design workflow based on a cross-departmental procurement and supply chain management quality control throughout the integration from production to term monitoring plans to constantly
IPD management process. This approach maximizes based on customer needs and actual production process, with standard users, establishing a comprehensive track product performance and
alignment with user needs, creating a closed loop from production requirements. A rigorous supplier operating procedures (SOPs) cross-departmental collaborative safety after market launch. Adverse
requirements to design usability. A team of user experts selection mechanism and comprehensive formulated and executed. Multiple mechanism for optimizing user events are proactively collected
has been assembled to conduct in-depth research quality control system have been control points are established at experience. This includes multi- and reported, effectively controlling
on user needs and pain point analysis. A closed- established to ensure the quality and different production stages, and departmental user experience post-market risks of medical devices.
loop experience research and usability verification stability of raw material supply. regular equipment maintenance and improvement meetings and service- The Quality Department evaluates
mechanism is employed to monitor design quality. calibration are performed to ensure side collaborative external meetings. customer feedback based on the
Regular audits and quality reviews of
In the later stages of product development, real users all aspects of the production process Feedback is extensively collected on principle of "report if suspicious",
material suppliers are conducted, and
are invited to conduct usability tests on functional and meet predetermined quality standards. various dimensions of user experience, immediately reporting according to
advanced quality inspection equipment
engineering prototypes in near-realistic scenarios. These A batch management system is comprehensively integrating and specified procedures once an event
and technologies are introduced to ensure
test results significantly impact product certification and adopted to ensure transparency and deeply analyzing service-side product is suspected to be a medical device
raw materials meet international quality and
market launch, even holding veto power. Improvement traceability in the production process. issue data. Detailed product feedback adverse event.
safety standards.
requirements are proposed for identified issues, analysis reports are generated
The Company is advancing the Regular, in-depth reviews of high-
forming a closed loop for product design optimization A mid-warehouse inspection system has monthly and quarterly, with multiple
construction of intelligent production risk and frequently occurring
and ensuring high design standards. been established and improved to proactively departments collaboratively
workshops by continuously introducing adverse events are conducted with
manage supplier quality, reducing rework developing practical improvement
PLM tools have been introduced to enhance collaboration advanced technologies and smart the quality, R&D, production, and
risks caused by substandard processes measures to enhance product quality
efficiency between R&D and other functional departments, equipment to enable fully automated technical departments. Following
and effectively improving supplier delivery and user experience from the source.
improving the reliability and predictability of R&D production of key products. This effective analysis and evaluation,
timeliness while ensuring quality.
projects. Strict quality audits are executed at each key includes intelligent inspection Real-time monitoring of market CAPAs are put in place to reduce the
R&D milestone to ensure research quality at all project equipment and real-time production customer complaints and regulatory occurrence of adverse events each
stages. The R&D Center regularly conducts internal data analysis, which constantly sampling information is conducted. year, ensuring continuous safety
training and exchanges covering medical device quality improves lean management levels, A post-warehouse re-inspection and effectiveness of products.
system standards, regulations, and testing requirements, effectively reduces operational procedure for medical devices is
integrating quality management concepts into every errors, and quickly identifies areas for implemented, involving sampling
aspect of the R&D process. improvement and optimization of inspections and comprehensive
quality control strategies, ensuring performance tests on products to In 2024, Yuwell Medical
stability, efficiency, and high quality detect quality issues that may occur collaborated with the Zhenjiang
in the production process. during transportation or handling. This Adverse Dr u g Rea ct i o n
effectively monitors product quality Monitoring Center in Jiangsu
The Yuwell Wuliubao mobile
consistency and prevents substandard Province to conduct adverse
application enables full-process
products from entering medical use, event monitoring for key
visualization and tracking of
ensuring product safety. medical device products,
transportation, precisely controlling
delivery quality and monitoring specifically compressed air
transportation progress in real time nebulizers. The Company
to ensure goods are delivered to was successfully selected as a
customers in optimal condition and medical device vigilance pilot
quantity. unit and was awarded the title
of Drug Regulatory Training
Base by the Jiangsu Medical
Products Administration.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Quality Inspection
Yuwell Medical has established a comprehensive and highly efficient laboratory system. The
Case
Product Safety Laboratory has been accredited by the China National Accreditation Service FDA Regulations Training
Product inspection pass rate
for Conformity Assessment (CNAS) and has obtained several prestigious international
certifications, including ISO 17025 Laboratory Certification, CTF Laboratory Certification, and
UL Witness Laboratory Certification. To keep its testing capabilities at an industry-leading
level, the laboratory actively engages in training sessions, seminars, and interlaboratory
comparisons hosted by domestic and international third-party organizations. By investing in
utilized various learning methods such as theoretical explanations and case analyses, focused on key topics including the QSR820
Quality System Regulation and the 21 CFR Part 11 Electronic Records. It involved key departments such as R&D, production, and
warehouse, as well as relevant personnel from branches and subsidiaries, with over 1,300 participants. This FDA regulations
these rigorous activities, the Company ensures strong assurance for the quality and safety of training is crucial for enhancing the Company's product quality and safety, fostering a compliance culture, and establishing a solid
its products. In addition to daily checks, the Company's measuring instruments are routinely regulatory foundation for product exports to the U.S. market in 2025.
sent to authorized metrology institutions for verification and calibration.
The Company has implemented standardized procedures for incoming material inspection, Supplier Quality Management
in-process inspection, and finished product inspection. Each batch of products undergoes
thorough internal testing in strict compliance with medical device product quality standards. Yuwell Medical has established integrated management regulations, such as the Supplier Management Control Procedure,
This ensures rigorous quality control at every stage, from raw material reception to product to ensure product quality and safety through closed-loop oversight. This system covers supplier audits, incoming material
dispatch, effectively preventing potential product safety and quality issues. Complementing inspections, performance evaluations, and continuous improvement measures. The Company performs rigorous audits of
internal testing, the Product Safety Laboratory conducts safety, electromagnetic potential suppliers' quality management systems prior to approval and obtains signed Quality Agreements from all suppliers.
compatibility, environmental, and noise tests as per standard requirements. For products During new material introduction, it closely supervises the trial production phase to ensure materials meet strict quality
with standard changes or new models, samples are submitted to third-party testing benchmarks. Additionally, the Company collects and analyzes monthly incoming material and inspection data from suppliers,
institutions. Mass production only begins after product safety and reliability have been enhancing traceability and driving ongoing supplier performance improvements.
thoroughly verified. In 2024, the Company achieved a 100% product inspection pass rate.
The Company has established a robust supplier audit procedure, developing and rigorously executing annual audit plans. These
audits cover multiple critical areas, including quality management systems, product design and development, material sourcing,
Product Safety Management manufacturing process control, design change management, non-conformance management, improvement processes, after-sales
service, and hazardous substance control. Led by the Quality Department, relevant teams conduct in-depth reviews and analyses of
Yuwell Medical strictly adheres to regulatory requirements, including the Good Manufacturing
audit findings to drive issue resolution and re-verification. When significant gaps are identified, the Company provides targeted quality
Practice for Medical Devices and the Regulation of Medical Devices Recall Administration ,
Product recall rate training, professional guidance, and technical support to help suppliers gradually build up their quality management capabilities.
and has established a comprehensive product recall system and mechanism. The
throughout the year
Company has developed internal management procedures such as the Domestic Recall
In cases where quality issues are identified in a supplier's products, the Company issues a formal CAPA report in accordance with
Control Procedure and Foreign Medical Device Adverse Event Reporting and Recall Control
the CAPA Procedure Document . For suppliers demonstrating a willingness to improve, the Company conducts on-site visits and
Procedure. To ensure the efficiency and scientific nature of product recall management,
develops tailored improvement plans. These plans address specific needs, such as refining quality management systems, enhancing
regular mock recalls are conducted. During the reporting period, Yuwell Medical maintained
production process control, and optimizing documentation and procedures. For suppliers experiencing frequent or significant
stringent control over product quality, resulting in a 0% product recall rate.
quality issues, dedicated supplier quality engineers are assigned to develop and closely monitor specialized quality improvement
plans, ensuring effective resolution within specified timeframes. During the reporting period, the Company conducted on-site
The Company complies with relevant national and local regulations, including the Measures
quality audits of 65 suppliers, with no major quality issues identified.
for the Management of the Monitoring and Reevaluation of Medical Device Adverse Events .
It has implemented the Medical Device Adverse Event Monitoring Management System and
Protocol for Active Reporting of Adverse Event to actively collect and report adverse events.
Customer feedback is evaluated based on the principle of "report if suspicious", promptly
and effectively managing post-market risks of medical devices. Any event suspected to be a
medical device adverse event is reported as such.
Company-wide Quality Culture Development
To implement its quality policy, Yuwell Medical promotes company-wide participation
in quality management. Through the establishment of a diverse quality course training
system, it comprehensively strengthens every employee's quality awareness and
knowledge base. The Company develops and strictly implements annual quality training
plans for all employees, covering various aspects including medical device quality system
standards interpretation, regulations training, and specialized quality training. In 2024,
key areas of the Company's quality training included medical device quality-related
regulations and standards, inspection procedures, product knowledge and quality, UDI
(Unique Device Identification) knowledge, and product labeling. This ensures that every
employee masters the latest quality management practices and product knowledge.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Impact, Risk, and Opportunity Management Digital and Intelligent Transformation
Yuwell Medical fully recognizes the critical importance of implementing effective quality risk management to safeguard the safety and efficacy
Yuwell Medical is accelerating the implementation of a comprehensive, forward-looking digital strategy. With a focus on two key
of medical devices. The Company's comprehensive risk assessment process systematically identifies a wide range of potential risks, including
dimensions, Digital Yuwell and Digital Healthcare, the Company has effectively integrated the front and back ends of production
design and R&D risks (e.g., design flaws, technological obsolescence, and new technology application challenges), raw material and supplier
lines and established full-chain digital capabilities from product R&D and manufacturing to end-user services. By adopting a user-
risks, production and process risks (e.g., unstable production processes and human errors), and regulatory compliance risks. These risks are
centric perspective, the Company identifies fundamental product requirements, designs for the entire product lifecycle, and
integrated into a holistic risk management framework. By adhering to quality management standards such as ISO 14971 and ISO 13485, the
delivers more competitive products and services.
Company keeps up with the latest regulatory requirements and technological developments. It has developed a comprehensive quality risk
management system that proactively detects and mitigates potential quality risks across the entire product lifecycle. Additionally, the Company
fosters a robust quality culture to ensure efficient cross-departmental collaboration. To address varying levels of quality risks, a tiered system of
documentation has been established, ensuring that each risk category is appropriately managed within defined timelines. Digital Yuwell Digital Healthcare
To guarantee the efficacy of its quality system, Yuwell Medical conducts regular internal and external audits across all business lines. The
Company performs annual internal audits of its quality management system, conducting thorough reviews of all products to ensure
compliance with applicable laws, regulations, and accreditation standards. Each year, it actively engages third-party organizations and subjects
itself to audits by domestic and international regulatory bodies and partners. Through such initiatives, the Company constantly strengthens the
integrity and effectiveness of its quality management system. In 2024, Yuwell Medical's quality management system operated at exceptionally
Digital Supply Digital Digital Digital Digital Digital Digital Intelligent
high standards, undergoing a total of 48 quality management system audits from government regulatory agencies and external auditing bodies.
Chain Production Operations Marketing R&D Products Services Functions
These comprehensive audits included one unannounced inspection, one audit by the drug administration department, two supervisory audits
by the drug administration department, 13 customer audits, 20 on-site product registration assessments, and 11 registration system certification
audits. Notably, all audit results showed no serious deficiencies, achieving a 100% pass rate. Furthermore, the Company conducted 78 internal
quality audits covering the entire product lifecycle, promptly implementing improvements to optimize production quality control processes. IT (Business Digitalization) DT (Digital Empowerment) BT (Digital Innovation)
The Company regularly reviews and refines its quality management system. In the event of production non-conformities, it promptly initiates
corrective and preventive actions (CAPA) and undertakes in-depth root cause analysis (RCA) to identify and resolve underlying issues. By doing
so, the Company sustains stable and reliable product manufacturing processes and procedures. Moreover, it has strengthened emergency Intelligent IoT devices cover over 80% of operations AI tools resolve 70% of user inquiries
event management protocols to effectively address potential production disruptions and ensure uninterrupted business operations.
Intelligent scheduling increases production efficiency by 20% Intelligent customer service improves user satisfaction by 20%
Intelligent sales forecasting reduces stockouts by 30%
Indicators and Targets
Yuwell Medical has established smart factories that integrate APS (Advanced Planning and Scheduling), ERP (Enterprise Resource Planning),
Indicator and Target 2024 Achievement Status PLM (Product Lifecycle Management), MES (Manufacturing Execution System), and WMS (Warehouse Management System). This creates
an intelligent manufacturing ecosystem centered on data with deep interaction across multiple platforms and systems. The result is smart,
flexible production lines capable of automated production, automatic data collection, and automated fault detection and intervention. The
Target achieved Company employs cutting-edge technologies, including machine vision for welding calibration, dynamic inspection, multi-sensor filling
First-pass yield ≥ 99.00%
First-pass yield: 99.72% inspection, and intelligent logistics, to complete the hardware construction and digital upgrade of flexible production lines and stereoscopic
warehouses. Leveraging sensors, PLCs (Programmable Logic Controllers), SCADA (Supervisory Control and Data Acquisition), and other
technologies, the Company enables seamless data interaction between physical and virtual workshops. This has led to the construction of
Guided Vehicle) logistics systems to support small-batch production of multiple product varieties. Through deep integration with MES,
the Company achieves manufacturing digitalization and visualization, ensuring full-chain quality traceability. This data-driven approach
Target achieved constantly enhances lean management practices, resulting in more competitive product delivery and superior product quality.
training 4,013 attendances. Accumulated duration of quality training: 195
hours, achieving 100% coverage of quality-related personnel. Jiangsu Likang Pharmaceutical Technology Yuwell Medical's parent
Co., Ltd. was recognized as company was selected as
a Smart Manufacturing a case study for leaders in
Zero major quality incidents Target achieved Demonstration Workshop in digital transformation in
Jiangsu Province China's light industry
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Automated Assembly Line for Automated Assembly Line for
By leveraging advanced data analysis platforms, the Company conducts real-time monitoring of all
Electronic Blood Pressure Monitors Blood Glucose Meters
service channels, including customer service hotlines and online chats. This allows us to instantly
An automated production model has been A fully automated production line for blood glucose detect and promptly address any anomalies in customer feedback.
implemented, led by the main assembly line with meters has been developed through flexible feeding
centralized, efficient production on sub-assembly and automatic assembly of irregular materials, CCD Quality The Company meticulously monitors and evaluates the implementation and effectiveness of
lines. Multiple technological innovations help achieve (Charge-Coupled Device) automatic detection, and Management improvement measures, comparing key data indicators to verify their efficacy and adjust existing
a breakthrough from scratch in the automation of extensive use of robotic operations. services accordingly.
electronic blood pressure monitor production. An automated quality scoring system has been implemented to assess each customer service
interaction, using data-driven insights to precisely identify areas for improvement and constantly
enhance service quality.
Automated Assembly Intelligent Stereoscopic
Line for Nebulizers Warehouses
The Company has implemented a standardized real-time risk reporting process for issues
Various robotic technologies have been utilized, These warehouses employ a digital, smart storage
affecting service quality. These issues are immediately documented and addressed using
supplemented by CCD vision-guided intelligent and logistics system, achieving interconnectivity
project management tools to track resolution progress. Once thoroughly resolved, solutions are
assembly, to create a flexible, automated production of data across human flow, material flow, vehicle
Closed-Loop incorporated into the knowledge base.
line with multiple workstations and human-machine flow, information flow, engineering flow, and
Management
collaboration. product flow. Through regular weekly meetings, monthly service quality reviews, and quarterly strategic
planning sessions, the Company promptly addresses issues and adjusts its service strategies based
Professional Services
on market dynamics to deliver an exceptional service experience to customers.
Yuwell Medical upholds a customer-centric approach, The Company has developed a comprehensive training system that accurately identifies specific
prioritizing customer needs to establish a comprehensive training needs through in-depth research. This system incorporates external professional medical
Professional
service ecosystem encompassing pre-sale consultations, in- resources and covers various aspects, including technical skills, soft skills, and tool proficiency.
Training
sale support, and after-sale guarantees. This system enables Ranked among the Won the 2024 Smart Star Training effectiveness is evaluated through participant feedback, and course content and delivery
rapid response and efficient resolution of customer inquiries. Top 100 Chinese Award - Yuwell JD Self- methods are constantly refined to ensure service professionalism.
By constantly refining service offerings and models, the Service Brands in 2024 operated Flagship Store
Company elevates the customer experience and satisfaction
throughout the entire product lifecycle.
Received the 2024 Achieved the 2024 Annual User Care
Proactive Service Annual Innovative Champion in Consultation
To meet the increasingly personalized service needs of different users and enhance brand satisfaction and loyalty, Yuwell Medical
The Company has established the Yuwell Medical Service Service Driver Services - Yuwell JD Self-
provides a range of caring services beyond standard product support.
Process and Standards , creating an omni-channel customer Award operated Flagship Store
service system with multi-channel front-end access, mid-
end collaboration platform, and back-end support platform.
A product insight and operational analysis platform has been We offer online guidance and one-on-one video instructions for proper product use (applicable to
Passed the GB/T
developed to achieve close connections between brands, users, certain products) and advise users on correct product maintenance to extend the product lifespan.
and products. Through data analysis, the Company constructs After-sales Service For special groups such as elderly individuals living alone, persons with disabilities, and economically
quality proactive services. Additionally, it places great emphasis complimentary accessories, and provide loaner devices to accommodate diverse user needs.
on constantly optimizing service strategies and quality to deliver Personalized
an exceptional service experience to customers. We are integrating more advanced technologies (e.g., AI customer service and intelligent
Services
recommendation systems), establishing a membership ecosystem, and upgrading our membership
applet to provide more personalized and attentive services.
The Company provides customers with diverse communication methods, including
telephone, text, and video interactions, through various channels such as 400 hotline, WeChat
official account, mobile application, enterprise WeChat, and e-commerce platform stores. This
Multi-Channel approach enables real-time engagement with clients. We conduct regular follow-ups to monitor users' health conditions.
Approach
Through the ongoing expansion of its after-sales service network, the Company has We offer online and offline user education and training, including recorded courses, visual
established over 400 service terminals covering provincial capitals and key cities, ensuring instruction tutorials, knowledge cards, and short videos to address the health needs of various
localized support for customers. Proactive Care demographic groups.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Complaint Response Customer Satisfaction Management
Yuwell Medical has developed the Yuwell Medical Complaint Management Regulation and consistently refines its user service system Yuwell Medical consistently prioritizes listening to customer feedback. Through ongoing customer satisfaction surveys, it gathers
and multiple communication channels. The Company has improved its processes for responding to, handling, tracking, and supervising authentic voices and evaluations from clients, comprehensively capturing their feedback and suggestions to constantly enhance
customer feedback, ensuring that all issues are addressed in a timely and efficient manner. Based on feedback insights, CAPAs are product and service quality. In 2024, the Company implemented multiple improvement measures in response to shortcomings
formulated and implemented as necessary. In addition, the Company has integrated AI robots across all channels to provide real-time, high- identified in satisfaction surveys. These included revising five service quality control specification details and conducting seven
quality responses, with human-machine collaboration swiftly addressing customer issues. professional training sessions to strengthen customer service representatives' understanding of quality control requirements and
service boundaries.
Yuwell Medical has adopted granular management of its customer support ecosystem, clearly defining the roles of AI-powered assistants
and human agents. This strategic division of labor enables AI to efficiently handle routine inquiries, while human experts focus on complex
problem-solving, personalized services, and emotional support. Consequently, the Company has achieved a higher first-contact resolution
rate and elevated customer satisfaction. To streamline operations, the Company has deployed RPA-powered digital assistants and an
iterative automated work order platform. These technologies reduce manual response times, optimize e-commerce workflows, and B2B customer satisfaction rate B2C customer satisfaction rate
significantly enhance the shopping experience. By integrating online support with core business processes, the Company ensures rapid
issue resolution and real-time updates on after-sales status. Collaborating closely with platform partners, we address customer pain points
and propose tailored improvement solutions, aiming to elevate overall platform service quality. We have also simplified after-sales scenarios
and established dedicated processes, boosting the efficiency and quality of post-purchase support. Additionally, we proactively interpret
new platform regulations, organize internal training, and strengthen frontline capabilities to sustain service excellence.
Yuwell Medical's Complaint Handling Process
Responsible Marketing
Reception Recording Initial Assessment Yuwell Medical strictly adheres to the Advertising Law of the People's Republic of China and other relevant laws and regulations in
its marketing and promotional activities. The Company has established responsible marketing-related systems, such as the Front-
Complaints are received through User feedback information is Complaints undergo preliminary
end Marketing Service Standards and Specifications . These systems translate responsibility requirements and business insights into
customer service platforms, meticulously collected and assessment, and initial information is
departmental norms, operational standards, and management guidelines. The Company has clearly defined mechanisms for delivering
marketing personnel at after-sales documented. provided to users.
product information and promotional content, ensuring that marketing teams adhere to ethical principles and operational standards in
outlets, government regulatory
sales and promotions, and promote products in an ethical, evidence-based, and objective manner. Moreover, the Company employs AI-
departments, and public channels.
driven tools like knowledge bases and chatbot language databases to address all business scenarios, enhancing the comprehensiveness,
effectiveness, and timeliness of information dissemination. This ensures efficient and accurate communication across all marketing
Feedback Correction of Deviations Investigation and Evaluation
touchpoints. The aforementioned tools are regularly updated and upgraded, alongside intensive training for marketing personnel
Investigation results and Deviation investigations Relevant departments are mobilized to to guarantee that consumers receive authentic and reliable information. Additionally, the Company has established internal audit
resolution strategies are are initiated, and CAPAs are investigate and assess risks, identifying processes and supervisory confirmation mechanisms based on files such as the Document Standardization Guidelines to ensure that all
communicated back to users. implemented. root causes and existing issues. externally published marketing materials undergo rigorous review and comply with legal regulations and internal standards.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Access to Yuwell Medical adheres to the principle of "leading industry development through
innovation and enhancing the health of millions of families". Through a series
Human-Centric and Inclusive Design
Quality
Yuwell Medical emphasizes product usability and comfort, implementing human-centric and inclusive design with a focus on users,
of initiatives such as intensifying public health education and regional market
particularly addressing the needs of elderly users, special needs groups, and family health management convenience to ensure products
Healthcare
promotion, accelerating the design of high-quality inclusive products and the
are simple to use and accessible. Moreover, the Company invests dedicated funds to strengthen core capabilities and accelerate the R&D
development of intelligent and user-friendly products, and enhancing product
of digital and intelligent products, launching smart and user-friendly products that lower usage barriers. The aim is to realize its vision of
affordability, the Company aims to make quality healthcare more accessible.
enhancing the health of millions of families with higher quality, more cost-effective, and sustainable products.
Product Accessibility Expanding Product Reach
In terms of global business layout, Yuwell Medical has established multiple R&D Family-Oriented Design Serving Users with Special Needs
centers and production bases in Germany, Italy, Shanghai, Shenzhen, Nanjing, Suzhou,
Danyang, Xizang, and other locations. It has also set up branches, subsidiaries, and
offices in Thailand, Germany, the United States, and other countries. Through diversified Multi-group usage: The Yuwell Nebulizer 405M The Yuwell All-in-One Smart Fetal Monitor employs
business deployment and continuous international expansion, the Company effectively supports three-level flow adjustment, catering to digital filtering and noise reduction technology, with
serves global healthcare needs. As of the end of the reporting period, Yuwell products users of different age groups. its ultrasound output power strictly controlled at
cover more than 100 countries and regions worldwide. extremely low levels according to industry standards,
Lightweight design and comfort: The Yuwell Arm- reducing potential impact on the fetus.
type Blood Pressure Monitor YE630CR features
Case Yuwell Medical Signs Strategic Cooperation Memorandum a minimalist all-in-one design, supporting one- Yuwell Medical incorporates voice broadcast and
with Vietnam's FPT Group handed operation and mobile application backlight design in some products to meet the
recording, making it suitable for family use. needs of visually impaired users.
In December 2024, Yuwell Medical signed a strategic cooperation memorandum
with Vietnam's FPT Group in Ho Chi Minh City to jointly promote the development of The Yuwell Primedic AED (Automated External
continuous glucose monitoring (CGM) technology in the ASEAN market. FPT Group is Defibrillator) features voice and animation-guided
a leading technology enterprise in Vietnam. In the future, both parties will collaborate first aid functions, as well as an integrated CPR
comprehensively on CGM technology, including technological upgrades, brand (Cardiopulmonary Resuscitation) and electrode pad
promotion, business model innovation, and international market expansion, to provide design, which significantly improves the success rate
quality medical services to the ASEAN market and bring more advanced medical of emergency response and enables quick action
technology to patients in the ASEAN region. within the "Golden 4 Minutes".
Supporting Older Adults
Large screen and voice assistance: The Yuwell Arm- The Home Multiple Vital Signs Monitor and
type Blood Pressure Monitor YE630AR features a 405M Nebulizer have been awarded the IF
backlit large screen for clear display of blood pressure Design Award.
and pulse data under any lighting conditions, along
Several Yuwell products have received the
with full voice broadcast functionality, allowing
Red Dot Design Award, including the Home
elderly users to easily complete measurements.
Multiple Vital Signs Monitor, YE990 Tunnel-
Type Blood Pressure Monitor, Anytime CT3
Portable design: The Yuwell Oxygen Concentrator
CGM System, Primedic M600 AED, 630CR Arm-
Type Blood Pressure Monitor, and Hospital
at the bottom, making it easy for elderly users to
Multiple Vital Signs Monitor.
move around at home.
Remote monitoring: The Yuwell Anytime CT3
Blood Glucose Meter supports data sharing with
family members, allowing relatives to monitor the In total, products have garnered
elderly's blood glucose levels in real time through international design awards
a mobile application, enhancing the convenience
of health management.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Enhancing Product Affordability Smart Healthcare
Yuwell Medical adheres to the World Health Organization's guidelines for fair pricing by implementing a value-based, transparent
Yuwell Medical consistently pushes the boundaries of smart healthcare, seamlessly integrating traditional medical products
product pricing strategy. The Company is actively exploring more sustainable pricing models that maintain product quality while
and services with cutting-edge information technology. The Company is developing an open empowerment platform to create
prioritizing affordability, especially in underdeveloped regions. Through diverse market research, it aims to develop pricing models
comprehensive health data records for individuals and families. This platform enables partners to cultivate a digital medical
that ensure proper policy implementation, price transparency, and product accessibility. The goal is to make innovative products
service ecosystem, striving to provide innovative, high-quality, and accessible medical services to an ever-growing population.
available to a broader population in less-developed areas.
Caring for Major and Rare Diseases Digital Health
Subscription to General Health Products and Services (Exercise, Diet, Mental Health, Content)
Innovation
Yuwell Medical is dedicated to addressing
the treatment needs of both major Specialized Rehabilitation
Medical Service Health Service OTC
Hospitals Medical and Elderly Care
diseases and rare disorders. The Company Institutions Institutions Pharmacies
Institutions Institutions
constantly deepens its expertise in chronic
Upward Openness
conditions such as diabetes, respiratory Personal (Family)
care, and emergency medicine. Its Empowering Medical Care, Medical AI, Health Big Data,
Yuwell's groundbreaking atrial Digital Health
ongoing efforts result in the introduction Auxiliary Automation Service-oriented
fibrillation blood pressure monitor, Records
of products and wearable devices that the S67XR, seamlessly integrates
Government Regulation and Data Authorization
offer broader applicability, enhanced blood pressure measurement Data Collection
intelligence, and improved precision. with atrial fibrillation monitoring. and Management
Personal (Family) Health Records: Personal Physiological Indicators;
These innovations provide comprehensive Utilizing cutting-edge algorithms Personal (Non-medical) Health Indicators
health management solutions for and sensor technology, it accurately
healthcare professionals and patients detects abnormal heartbeat signals,
alike. Furthermore, the Company regularly enabling users to promptly identify
Downward Empowerment
conducts professional training on medical and address the potential health risk
equipment usage and has established of atrial fibrillation.
reward funds to support academic Home Testing and
research by primary care physicians, Treatment
thereby enhancing primary healthcare
service capabilities.
"Thanks to Yuwell Medical's Spirit-3, I'm
thrilled to be back at my newsstand,
chatting with people once again."
An 80-year-old retired nurse in Bulgaria
has long operated a local newsstand,
extending her passion for serving others
from her healthcare career to daily
life. As age-related health challenges
made it difficult for her to maintain her
routine work, she consulted her doctor
and, following medical advice, chose
Yuwell Medical's Spirit-3 portable oxygen
concentrator. The product's lightweight,
portable, and user-friendly features
perfectly aligned with her needs. With
six hours of continuous oxygen supply
daily, she has been able to return to her
beloved newsstand, once again greeting
each familiar customer with her warm,
welcoming smile.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Digital Health Services
Yuwell Medical has established an IoMT (Internet of Medical Things) Blood Glucose Segment Respirator Segment
management platform for medical devices, constantly refining multi-product
digital solutions to provide comprehensive, convenient, and efficient health Yuwell health products covered by
management solutions. The Company has created an innovative integrated A new version of the Anytime mobile application has User-end applets and an intelligent respiratory
digital health services
health management platform for medical devices, advancing digital health been launched, attracting over 60,000 new registered cockpit have been introduced to enhance user
services comprehensively in three stages: front-end, mid-end, and back-end. By users. A smart management system has been established experience and management decision-making
persistently expanding the range of digital medical device products, broadening and implemented in 54 hospitals, supporting integrated efficiency, achieving software compatibility across
units cross-product in-hospital operations. all product categories in hospital scenarios.
the scope of digital health services, and forming a complete digital closed loop,
the Company creates smarter, more convenient, and highly efficient health
management solutions.
Smart Healthcare Ecosystem
The Company actively engages with mainstream e-commerce platforms online and interacts directly with users
through social media, applets, and other digital tools. Offline, it collaborates with pharmacies, medical institutions, Yuwell Medical is committed to building a massive health ecosystem by integrating home healthcare, clinical medical care, and
and other channels to provide easily accessible products and services. Through this multi-channel approach, both Internet healthcare resources. This approach aims to create a digital medical service ecosystem that empowers partners across
Front-end online and offline, we precisely target users and deliver personalized health management solutions. multiple scenarios, providing users with comprehensive health management services from prevention to rehabilitation.
To construct a robust smart healthcare ecosystem, Yuwell Medical constantly prioritizes the security, regulatory compliance,
stability, and consistency of digital medical product data. The Company strictly adheres to relevant laws and regulations, including
The Company has developed an integrated health management platform for medical devices based on IoT, big data,
the Personal Information Protection Law of the People's Republic of China. It actively participates in the formulation of industry
and cloud computing technologies. Through the deployment of smart hardware, we achieve data collection, analysis,
standards for medical data security and promotes the standardization, securitization, and efficient utilization of medical data. For
and the formulation and implementation of personalized solutions. In 2024, the platform was expanded to include new
detailed information, please refer to the "Information Security and Privacy Protection" section of this report.
products such as 4G blood glucose meters, nebulizers, AEDs, and third-generation respirators.
Mid-end The Company promotes synergy across multiple channels, including the family health cloud platform, the Yuwell Health
Manager mobile application, and the WeChat official account. Users can monitor and track their health indicators in real
Extending Out-of-Hospital Medical Ecosystem to Form a Service Loop
time via mobile devices, access personalized health intervention plans and visualized medical reports, and interact with
medical professionals through telemedicine consultation features, facilitating personalized health management. By aggregating data from home medical devices, we establish personal health records for users,
connecting with large public hospitals, community hospitals, and Internet hospitals. This enables remote
Empowering diagnosis, health monitoring, and remote intervention for chronic disease patients. The combination of
The Company has established intelligent manufacturing bases that integrate R&D, design, production, Hospitals data and internet healthcare allows hospitals to treat diseases more efficiently and at lower costs, while
management, and sales processes. This approach achieves full-process intelligent management, ensuring enabling patients to achieve long-term home health intervention and chronic disease management.
Back-end superior product quality and rapid service response times.
Case
Remote Chronic Disease Management
Serving the New "Medical-Pharmaceutical-Service" Loop
Remote chronic disease management services represent a key strategic initiative for Yuwell Medical in the "Internet + healthcare" domain. This Through an open data platform, we collaborate with OTC pharmacies to build personal/family health
approach aims to deliver comprehensive home health management solutions for patients with chronic conditions through digital technology, records, integrating patients' medication and device usage to provide periodic, targeted, customized
Empowering
intelligent hardware, and big data analysis. The ultimate goal is to enhance users' ability to manage their own and their family members' health services. This forms a "medication + health service + wellness service" combination model, enhancing
status while improving the efficiency of medical services.
Pharmacies
pharmacy service capabilities.
The Company has developed a remote chronic disease management platform centered on Smart Yuwell. This platform synchronizes chronic
disease data between devices and the cloud through multiple channels, including a family health cloud platform, mobile applications, and the
WeChat official account. Users can monitor and manage their health data in real-time via smartphones and interact remotely with physicians.
The service also incorporates intelligent hardware devices such as smart glucose meters, electronic blood pressure monitors, and respirators,
facilitating immediate access and analysis for both doctors and patients. This enables prompt identification of potential issues and the Serving Health Intervention and Management
provision of customized health management plans. Yuwell Medical's remote chronic disease management service not only enhances patient
Through an open data platform, we assist community hospitals in establishing personal/family health
experience but also improves the efficiency and accuracy of medical services through intelligent and digital technologies, contributing to the Empowering
records for users and achieve data interconnectivity with relevant tiered diagnosis and treatment
implementation of the Healthy China strategy. In 2024, the Yuwell Health Manager platform adopted advanced AI algorithms and big data General
hospitals. This promotes a closed loop for community hospitals to intervene and manage chronic disease
analysis techniques to further enhance health data processing capabilities, construct precise personal health profiles, and provide personalized Healthcare residents in their covered areas.
health management strategies for users. The platform also optimized service processes, offering remote medical follow-up functions to achieve Institutions
early intervention and continuous management of chronic diseases, effectively improving disease prevention and control outcomes.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
People-Centered Approach
Safeguarding Lives and
Empowering People
Average training hours per employee during the year
Proportion of female employees in middle and senior management
Total charitable contributions
RMB 1.47 million
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Human Capital Development
Governance Yuwell Medical prioritizes human capital as the primary driver of sustainable corporate
development. The Company consistently enhances its human resource management
Talent Recruitment and Retention
The Company conducts regular organizational and talent assessments aligned with its strategic and business planning, and formulates mid-
system to ensure alignment with overall strategic objectives and efficient execution. The
to long-term human resources plans to proactively plan for talent deployment. It utilizes diverse channels to attract a wide range of talent.
Board of Directors has established a Remuneration and Evaluation Committee, chaired by
External talent acquisition channels include internship programs, campus recruitment, and social recruitment, collaborating with renowned
an independent director. This committee is tasked with formulating assessment standards
job websites, regional platforms, and overseas recruitment agencies to enhance recruitment efficiency and meet the Company's strategic
and compensation policies for directors and managers to motivate and retain key talent.
and talent needs for rapid development. Internally, the Company advances strategic talent reserve initiatives through mechanisms such as
The Company has established a Human Resources Center responsible for developing
employee referrals, internal job postings, and the rehiring of former employees. It adheres to the principles of comprehensive evaluation,
and implementing HR strategies, organizational structure, key talent management,
fairness and impartiality, and excellence in both moral integrity and professional competence throughout its recruitment practices. With
and compensation and benefits. This center collaborates closely with various business
these efforts, the Company is committed to building a professional, international, and high-performing talent team.
departments to ensure company-wide implementation of HR policies. Branches and
subsidiaries have established their own HR departments to align organizational talent with
business plans and constantly enhance organizational capabilities and human capital value.
Yuwell Medical has developed and constantly refined a comprehensive series of HR As a strategic talent pool for the Company's future management trainees, campus recruitment was
management systems. These include basic HR management policies and specialized steadily advanced in 2024 through well-organized programs targeting fresh graduates and interns.
policies for organizational management, talent management, professional training and The Company proactively engaged with over 40 universities, including Nanjing University, Southeast
promotion, performance management, and compensation and benefits. These systems University, and China Pharmaceutical University, conducting both online and offline campus recruitment
Campus to lay the foundation for its talent pipeline. In 2024, the Company recruited over 130 fresh graduates and
help align workforce planning with strategic and business objectives, build strategic talent
Recruitment 200 interns, with 52 individuals entering the 2024 management trainee development program.
pools, and proactively develop employees' professional capabilities. By doing so, each
employee can leverage their strengths to deliver value, fostering mutual growth between
employees and the Company.
The Company actively engages in industry-academia-research collaborations with universities and research
Strategy and Yuwell Medical implements a consumer-oriented, digitalized, and youth-focused talent institutes, establishing student internship bases and technology research institutes with Shanghai Jiao
development strategy. The Company adheres to an open and fair process for identifying Tong University, Beijing Institute of Technology, Southeast University, Nanjing University of Posts and
Management and selecting talent, promoting a development approach that combines internal Joint Telecommunications, and Jiangsu University. These collaborations focus on talent cultivation, technological
Mechanisms cultivation and external recruitment. It formulates scientific and reasonable talent Cultivation innovation, and industrial upgrading, embracing cutting-edge advancements through talent exchange.
management models aligned with strategic goals, offering competitive compensation
and benefits, professional training, and promotion opportunities to achieve high-quality
development through a high-caliber talent pool.
In line with business expansion, the Company actively cultivates a positive employer brand, focusing
Since 2020, the Company has conducted annual organizational climate surveys, on attracting R&D and overseas sales professionals with extensive medical backgrounds in specialized
comprehensively gauging employees' genuine feedback and concerns across sectors. It strengthens partnerships with external professional recruitment agencies to attract top
six dimensions: basic needs, supervisory support, authority and processes, team Talent industry talent, leveraging talent suppliers, internet recruitment platforms (Liepin, 51job, LinkedIn,
collaboration, cultural identity, and learning and development. In 2024, the satisfaction Recruitment etc.), and social media (Maimai, Xiaohongshu, etc.) to enhance its employer brand influence.
survey questionnaire achieved a response rate of 88.5%, with an employee satisfaction
rate of 81.9%. Through years of internal feedback and improvement of management
practices at various levels, the Company has gradually enhanced employee experience,
promoting mutual growth of the organization and its workforce. Yuwell Medical's global manufacturing base is located in the Danyang region. The Company actively
strengthens local employer brand building, swiftly and accurately meeting its recruitment needs
for general workers through regional talent networks and grassroots outreach programs, ensuring
Regional
localized and efficient human resource allocation and supplementation.
Channels
The parent company of Yuwell Medical has received the following awards:
Outstanding Human Resource Management Award - Employer of Excellence The Company implements employee referral, internal job competition, and employee rehiring mechanisms,
encouraging internal staff to recommend talented individuals and providing opportunities for employees to
Employer of Choice of the Year Award showcase their abilities. This approach allows more morally and professionally excellent employees to stand
Internal out, constantly fostering outstanding talent within the organization capable of fulfilling diverse roles.
Excellence in Talent Acquisition and Development Award
Channels
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Employee Training
Employee Training System
Total number of employees New hires during the reporting period
Yuwell Medical has established the Yuwell Learning and
Development Center based on its consumer-oriented, digitalized,
and youth-focused talent development strategy. The Company has
implemented learning maps and formulated a series of policies,
including the High-Potential Talent Development Management
Measures , to constantly enhance its talent pool's competitiveness.
Proportion of female employees among new Through close collaboration with various business units and
Newly recruited fresh graduates hires during the reporting period leveraging online learning platforms, it has developed comprehensive
systems for professional, managerial, and new employee (both
with future strategic needs. These systems leverage comprehensive
training and hands-on learning approaches, combined with diverse
learning modalities, to build employees' professional and leadership
capabilities. To drive business growth and build a competitive talent
pool, the Company annually launches targeted talent development
programs for critical functions like management, R&D, and sales.
These initiatives focus on skills essential for the next 3-5 years, with
a specific emphasis on cultivating and promoting young talent.
The Company regularly collaborates with HR and business units
Gender distribution (persons) Age distribution (persons)
to evaluate program effectiveness for participating leaders and
Total courses launched on the Yuwell
Employees aged engagement. Through regular interviews, partnerships with leading
Academy Learning and Development
Female employees 30 and under industry consultants, cross-industry benchmarking visits, and other
Management Platform
Employees aged 31-50 diverse methods, it effectively identifies and nurtures talent while
Male employees
constantly refining the training system based on feedback from
Employees aged 51
ongoing evaluations of middle to senior managers, young leaders,
and key professionals in development programs. It also supports
newly hired middle to senior staff from other industries in adjusting to
Organizational hierarchy (persons) Educational background (persons)
Yuwell's work environment, thereby fostering a learning organization.
Cumulative learning hours Yuwell Medical identifies critical organizational competencies based
degrees or above
Senior management on business planning and develops talent to meet future business
Employees with
Middle management needs. Over the past three years, the Company has developed
associate degrees
a comprehensive internal curriculum framework and instructor
Frontline employees
Employees with degrees resource pool, focusing on critical areas like management, R&D,
below associate level sales competency, and lean manufacturing. Complementing this
core system is a structured practical training program that blends
external courses and expert instructors. Through its internal instructor
Geographical distribution (persons) team, the Company translates valuable business and management
and scale core competencies. Additionally, the Company invites
Employees from China (including external industry experts for specialized seminars and organizes
Hong Kong, Macao, and Taiwan) benchmarking visits to peer enterprises, enabling the acquisition of
Overseas employees cutting-edge insights and management methodologies. Furthermore,
the Company has forged partnerships with universities and research
institutions to attract and nurture high-caliber talent, thus enhancing
its employer brand strength and research capabilities.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Talent Development Projects Leadership Development
Yuwell Medical designs distinctive talent cultivation projects with a product-oriented approach, adhering to the principle of Yuwell Medical consistently invests in the planning and development of management talent, with a strong emphasis on internal
integrating training with practical work. The Company has established four major development plans based on management promotion and leadership cultivation. In alignment with its latest global expansion strategy, the Company has partnered with a world-
levels: Embarking, Setting Sail, Sustaining Progress, and Leadership Pioneering. These plans comprehensively cover new renowned leadership consulting firm to introduce the Yuwell Leadership Standards for the first time. Comprehensive management
employees/management trainees, junior leaders, high-potential talent, and middle to senior managers. Through tailored training training programs are implemented through talent assessments, practical leadership development initiatives, and integration
activities, the Company aims to enhance and constantly upgrade employees' job competencies. programs for externally recruited executives. These programs include management course development, hands-on training,
and international study tours. The Company also partners with educational institutions to craft bespoke executive development
programs, offering specialized courses from renowned schools like CEIBS, Nanjing University Business School, Shanghai Jiao Tong
University, and the Wharton School at the University of Pennsylvania. These initiatives provide leadership development opportunities
Total investment in employee training Total training attendances for managers at all levels and high-potential talent pools, enhancing their holistic perspective, leadership skills, and strategic vision.
RMB 3.20 million 35,762 Management Trainees
Leadership Training Series
Junior Leaders Middle Managers Senior Managers
Total training hours Employee training coverage rate
Training Camp is designed to facilitate
the transition of core personnel into
junior management roles. To date,
two sessions have been conducted,
benefiting over 100 outstanding junior
Average training hours per employee during the year
leaders across the Group.
The 2024 Yuwell High-Potential Talent
Training Camp focuses on supporting
Gender-based distribution (hours) Hierarchy-based distribution (hours)
the Company's internationalization
strategy. It addresses critical areas such as
Average training hours per senior manager management skills, aiming to enhance the
per male employee Average training hours global perspective and comprehensive
Average training hours per middle manager leadership capabilities of core managers
per female employee Average training hours and high-potential employees.
Case
Yuwell Star Program
New Employee Training The Yuwell Star Program is Yuwell's flagship management trainee initiative, serving as a cornerstone for attracting innovative talent
and building a strong pipeline of future leaders. The program features a multifaceted approach to development, including pre-
Yuwell Medical prioritizes the integration and development of new employees. Through the online New Employee Learning employment online courses, an immersive induction bootcamp, a dual mentorship system (pairing business and BP mentors), and
Program and in-person centralized training, the Company ensures that new hires quickly acquire essential corporate knowledge, an accelerated career development camp. Leveraging an OMO (Online-Merge-Offline) training model, the program facilitates rapid
understand business processes and products, assimilate the corporate culture, and adapt swiftly to their work environment. In growth and smooth career transitions for management trainees. By the end of 2024, Yuwell Medical had successfully nurtured 426
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Professional Capability Enhancement Employee Development
For key roles in R&D, production, and marketing, Yuwell Medical has developed comprehensive job learning maps and specialized Dual-Track Talent Development System
training programs to bolster core competencies and foster team collaboration. The Company has established well-defined competency
Yuwell Medical adheres to a talent strategy that prioritizes internal cultivation while supplementing it with external recruitment. The
standards and learning trajectories for R&D roles, enabling researchers to hone their technical expertise and sharpen their professional
Company has established a dual-track talent development system to help employees align their personal characteristics with both
capabilities. Production employees in critical roles undergo a series of specialized training courses, engaging in cutting-edge topics such
professional and managerial growth paths, better matching individual career goals with organizational needs.
as medical equipment intelligence, big data analysis, overseas registration regulations, FDA and CE certification, and interdisciplinary
collaboration projects. Employees are required to pass rigorous assessments before assuming their roles.
For professional roles, the Company has introduced a professional certification system and customized talent development initiatives.
These frameworks help employees clarify their career positioning and identify skill gaps, empowering them to design personalized
To support the implementation of its global development roadmaps. For management roles, the Company has established a leadership management system and structured
expansion strategy and reinforce quality and tiered development programs. It has also created leadership competency models and defined leader competency profiles for key
compliance awareness, the Company invited management positions, standardizing the procedures for leader selection, appointment, evaluation, and promotion. This approach
leading Chinese medical device quality and unleashes the potential of managers at all levels and strengthens the organization's core competitiveness.
regulatory experts to conduct a comprehensive
FDA regulation training series in 2024. Over 20
internal courses were developed and adapted. Leadership Professional Competence
These tailored programs, based on U.S. FDA
regulations and guidelines, were delivered in four
distinct modules covering general principles,
registration protocols, product R&D, and post- Management Talent Professional Talent
Leadership
market surveillance. The training encompassed Development System Development System R&D
Pioneering
employees from regulatory affairs, registration,
R&D, and platform departments. Senior Manager Wharton Study Tour Departmental Team Pipeline Building
Sustaining Marketing
Progress High-Potential Talent Development Professional Skills Training
External Collaborative Training On-The-Job Leader Training and Practice Position Certification Training
Production
Yuwell Medical actively leverages high-quality external training resources. The Company organizes academic exchanges with external Setting Sail
research institutions and universities, collaborates with professional organizations, and invites industry-leading experts to conduct New Manager Transition Professional Learning Maps
exchange and training sessions for various departments, branches, and subsidiaries. These initiatives are critical to fostering innovation,
enhancing the expertise of technical and managerial teams, and driving knowledge exchange. In 2024, the Company established Embarking Functional
collaborations with leading consulting firms, including CEIBS, Korn Ferry, Beisen, YunXueTang, Xingtu Consulting, and 51job, to advance New Employee Development System (Social Recruits & Management Trainees)
its talent development strategies. These included the "Chinese Enterprises' Global Expansion Strategies and Implementation Roadmaps"
course for the Yuwell High-Potential Talent Training Camp, the interviewer empowerment training, the CFMOTO study tour, the
INOVANCE study tour, the cross-cultural leadership training, and the FDA registration regulations training.
Course Resource Management Instructor Team Management Training Project Management
Online Learning Platform: Yuwell Academy
Yuwell Learning and Development
Center, in collaboration with
the School of Medicine Jiangsu
University, has launched the Academic and Qualification Support
Excellence in Service - Yuwell
Yuwell Medical promotes a culture of lifelong learning and has established policies such as the Research Personnel Continuing
Medical Advanced Studies Program.
Education Management System and the On-the-Job Postgraduate Training Management System . The Company encourages and
This initiative offers specialized
supports all employees (including regular and part-time staff) to pursue job-related degrees and qualifications outside of work hours
courses tailored to Yuwell's diverse
and apply for growth programs that meet their personal development needs, constantly enhancing their professional competence.
business segments.
For employees choosing to pursue further education, the Company fully subsidizes their tuition and related expenses. As of the end of
the reporting period, 24 employees have undertaken further academic studies, gaining greater opportunities for career development
and advancement.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Diversity and Equal Opportunity
Female employee ratio Ethnic minority employee ratio Employees with disabilities ratio
Yuwell Medical advocates the philosophy of
"diversity and inclusion, hard work, and happy
living". The Company integrates diversity and
inclusion requirements into its recruitment and
hiring processes, daily operations, and training
activities. Performance evaluations and promotion
decisions are conducted fairly and impartially for Mid to senior-level female employee ratio Senior management female employee ratio Return-to-work rate after parental leave
employees from diverse backgrounds, providing
equal opportunities and broad development
platforms for all staff members. Annual diversity
training and activities are organized for all
employees, and regular face-to-face communication
and team-building events are held between Female employee ratio in STEM positions (R&D and technical roles)
management, employees, and human resource
business partners (HRBPs). These initiatives
promote the integration of different cultural
backgrounds and aim to create a diverse, equal,
inclusive, and dynamic workplace atmosphere.
Recruitment and Hiring Work and Welfare Support
Yuwell Medical strictly adheres to international human rights norms such as the International Bill of Human Rights , the ILO Yuwell Medical is committed to diversity, equity, and inclusion (DEI), fostering a dynamic and supportive workplace culture that values
Conventions , and the UN Guiding Principles on Business and Human Rights . It also complies with the Labor Law of the People's every employee. The Company has also established barrier-free work environments for employees with disabilities, enabling their
Republic of China , the Labor Contract Law of the People's Republic of China , and local laws and regulations in its areas of employment and ensuring meaningful work opportunities.
operation. Multiple management policies have been formulated, including the Yuwell Medical Recruitment Management System
and the Yuwell Medical Employee Handbook , to standardize employee recruitment and onboarding processes. The Company does For female employees, Yuwell Medical provides equal career opportunities, offering sound professional development prospects
not discriminate based on gender, education, age, race, family status, religious beliefs, or cultural background, providing equal and a comprehensive compensation and benefits system. The Company ensures equal pay for equal work regardless of gender
employment and development opportunities for all employees. It prohibits the employment of child labor, forced labor, and other and fully respects women's rights to statutory prenatal check-up leave, maternity leave, and breastfeeding leave. It also encourages
illegal or policy-violating employment practices. The Company eliminates all forms of discrimination and prejudice, ensuring male employees to take paternity leave during their spouse's childbirth period, promoting a balance between family and career
the legality, fairness, and equity of the recruitment process. During the reporting period, Yuwell Medical did not experience any responsibilities. For female employees returning to work after childbirth, the Company humanely provides a necessary adaptation
incidents of child labor, forced labor, or employee discrimination. period and gradually guides employees back into their roles based on individual physical recovery, supporting their career continuity
after returning from parental leave. Female employees are offered equal access to education, training, and promotion to support their
professional growth and skill diversification. The Company empowers women to overcome career barriers, assume key roles, and
take on leadership responsibilities, thereby expanding their career development horizons.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Compensation Incentives Fostering a Happy
Provide endowment insurance, medical insurance, work-related injury
Yuwell Workplace insurance, unemployment insurance, maternity insurance, housing
Compensation Incentive Mechanism fund, and paid leave (e.g., sick leave, work injury leave, marriage leave,
Yuwell Medical upholds the philosophy of
bereavement leave, prenatal check-up leave, maternity leave, paternity
The Company has formulated the Yuwell Medical Interim Measures for Compensation Management System , establishing an "hard work and happy living", providing
leave, breastfeeding leave, childcare leave, and annual leave).
evaluation and incentive mechanism that aligns with business characteristics, focuses on performance, and is based on value all employees with comprehensive Basic
contribution. A comprehensive compensation system has been developed for all employees, including those in non-management non-monetary benefits. Through the Benefits Set Yuwell summer vacation, a special summer vacation benefit tailored
and non-sales positions. The system includes both fixed and variable income components, with market dynamics and industry implementation of diverse welfare plans to the Company's industry business cycle, to encourage employees to
compensation trends fully considered. By constantly refining compensation plans based on performance metrics, the Company and employee assistance programs, the maintain a healthy work-life balance during peak and off-peak seasons.
enhances the market competitiveness of its compensation packages. Company aims to create a harmonious
and healthy work environment, nurturing
The compensation structure comprises a fixed salary, variable performance bonuses, and long-term incentives, designed to be Offer annual health check-ups, accident insurance, illness compassionate
a workplace characterized by warmth and
directly linked to the Company's operating results, organizational performance, and individual achievements. Variable bonuses payments, and high-temperature allowances.
well-being.
and long-term incentives are allocated differently across job categories, reflecting individual contributions and the achievement Organize health activities including traditional Chinese medicine (TCM)
of company and departmental performance targets. This approach ensures a strong alignment between bonus distributions and To provide employees with a pleasant, consultations, shoulder and neck therapy, and eye examinations.
Employee
performance outcomes at both organizational and individual levels, effectively motivating employees to pursue performance goals, safe, and healthy workplace, the Company Health Partner with external psychological assessment institutions to provide
improve productivity, and retain key talent. Regular performance evaluations are conducted for all employees and departments to completed a new office building project
ensure compensation accurately reflects work results. The Company has also introduced an employee stock ownership plan (ESOP), psychological evaluations and counseling services for employees in need.
in 2024. The project incorporated open-
using equity incentives to align core employees' personal interests with the Company's long-term goals. This strategy encourages staff concept and flexible workspaces, creating
to focus on sustained corporate growth, supporting ongoing and effective business expansion. For detailed information on employee a modern and collaborative environment Establish a compassion fund to provide timely assistance to employees
equity incentives, please consult the Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Annual Report. that fosters communication and teamwork or their family members facing illness or hardships, supporting over
while enhancing comfort. 540 individuals to date, with 33 employees receiving aid in 2024.
Arrange additional home leave for expatriate employees, supplementing
Performance Evaluation and Feedback
statutory holidays and paid annual leave, to facilitate more family
Yuwell Medical actively promotes an efficient, fair, and merit-based performance culture, complemented by a tiered and categorized reunions.
Caring
performance appraisal system. The Company undertakes annual comprehensive evaluations of all regular employees, covering
Support Issue retirement commemoration certificates, social pension insurance,
key dimensions such as performance, competence, work attitude, and behavior. The Company prioritizes employee capability
and mementos for retired employees.
enhancement and performance improvement while ensuring fair assessments and equitable rewards. Each year, the Company
communicate its strategic and operational objectives to every department, team, and individual. This cascading process involves Assist employees in applying for various government subsidies when
commitment and support at all organizational levels, ensuring alignment between individual performance, departmental results, and appropriate.
strategic objectives. Consequently, this approach translates corporate strategy into tangible daily activities, guaranteeing effective
strategy implementation and the achievement of desired results.
Conduct regular team-building activities such as outdoor development
programs, the Yuwell Chairman's Cup basketball tournament, the Yuwell
Throughout this process, the Company has developed robust communication mechanisms for performance management,
supercar team, fitness challenges, and cultural performances. Deliver
with the goal of ensuring all employees understand performance management principles and actively engage in the process.
diverse recreational activities including mobile game competitions, vlog
High-performing staff are recognized through both material and non-material incentives to sustain motivation. In contrast, for
Stress contests, and lucky draw events to help employees relax and unwind.
underperforming employees, the Company promptly deploys effective performance improvement plans (PIPs) to facilitate rapid
Relief
improvement. Comprehensive supervisory mechanisms have been established at every stage, including processes for performance Hold family open day annually to engage employees' families and
appeals, disciplinary complaints, and investigative interviews. These measures safeguard employee rights while ensuring the children, jointly fostering a harmonious and healthy work atmosphere.
performance management process remains objective, fair, and impartial. Sports check-in
For middle and senior-level personnel, Yuwell Medical employs a 360-degree feedback assessment system. This approach gathers
multi-source input from supervisors, peers, subordinates, and cross-functional collaborators. The evaluation process consists
of three stages, covering the entire performance cycle and enhancing assessment fairness. In the preparation phase, tailored
survey questionnaires are designed for different employee groups based on evaluation objectives. Both assessors and assessees
receive thorough training on 360-degree feedback tools. During the assessment phase, the process is conducted anonymously,
with strict confidentiality measures for both assessors and results, fostering an environment for honest and unbiased feedback.
In the feedback phase, assessees receive detailed feedback and coaching based on multi-source input, enabling them to identify
strengths, development areas, and performance gaps aligned with Company and supervisor expectations. This process empowers
employees to define clear paths for professional growth and future improvement.
Pet-friendly activity Parent-child activity
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Impact, Risk, Yuwell Medical places strategic priority on continuous human capital enhancement, through
proactive identification of potential workforce risks and systematic analysis of internal and Protection of Employee Rights
and Opportunity external factors impacting talent development. In alignment with its strategic objectives,
Management the Company engages in ongoing identification, assessment, mitigation, and monitoring
of workforce risks to ensure they are maintained within acceptable thresholds. This risk-
Labor Rights
centric approach not only enhances organizational performance but also fuels long-term Yuwell Medical has implemented a comprehensive set
sustainable growth in a competitive market landscape. of internal policies and guidelines, including the Anti- Labor contract signing rate?
Discrimination Management Procedure, Labor Employment
To address critical human capital risks such as talent attrition, shortage of key personnel,
Procedure, Special Working Environment Assessment for
ineffective performance management, insufficient training and development, uncompetitive
Female Workers, Management of Child and Minor Workers,
or unfair compensation and benefits, legal compliance issues, and organizational culture
Yuwell Work Injury Management Measures, and Employee
risks, the Company has established a scientific human resource management system.
Handbook . These policies comply with human rights protection
Based on strategic planning and business development directions, it formulates talent
regulations, clearly defining employee conduct guidelines and Social insurance coverage rate?
development strategies, creates a support system for employees' continuous growth
expectations. By outlining these standards, the Company aims
throughout their career lifecycle, and optimizes human resource management strategies
to mitigate potential human rights risks and provide robust
for the entire process of attracting, nurturing, utilizing, and retaining talent. The Company
safeguards for employee rights.
also strengthens talent review and succession planning to mitigate, reduce, or transfer risks,
shaping a resilient and adaptable organization capable of thriving across business cycles. The Company has established human rights protection policies
and procedures to ensure fair opportunities and treatment
Employee discrimination or harassment incidents
Indicators
for all employees in recruitment, employment, promotion,
Indicator and Target 2024 Achievement Status and workplace environment. It strictly prohibits all forms of
and Targets 100% coverage rate of employee training Target achieved
discrimination and harassment while guaranteeing reasonable
working hours, paid leave, and fair compensation. Employees
Continuous improvement in employee Target not achieved? are entitled to join labor unions and engage in collective
satisfaction Employee satisfaction rate: 81.9% bargaining. The Company has also implemented anonymous Notes 1 and 2: Rehired employees do not enter into labor
reporting channels to protect employees' freedom of speech contracts with the Company, and neither rehired employees nor
locally hired foreign nationals are covered by the Company's
Target achieved and their right to report concerns. Supply chain risk assessments
Key talent turnover rate ≤ 12.5% social insurance contributions. For all other regular employees,
Key talent turnover rate: 12% are conducted regularly, with suppliers required to adhere to the labor contract signing rate and social insurance coverage rate
relevant social responsibility standards, ensuring the absence of both stand at 100%.
Note 1: The Company's employee satisfaction survey response rate increased by 7.7% year- human rights violations throughout the supply chain.
on-year in 2024, with a net increase of 880 in valid questionnaire respondents.
Yuwell Chairman's Cup basketball tournament
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Employee Communication and Grievance
Yuwell Medical respects employees' rights to participate, express opinions, and exercise oversight. The Company constantly supports
employees' freedom of speech by establishing open and transparent channels and platforms for expression. Through employee representative
meetings, face-to-face communication sessions with the Chairman, 360-degree evaluation of management, company internal publications, and Work-related injury insurance coverage rate? Attendances in health and safety training
employee forums, the Company actively encourages employees to share their ideas and opinions on company operations and management.
The Company has developed the Yuwell Medical Employee Complaint Management Procedure and the Yuwell Medical Reporting Management
, with a coverage rate
System , implementing a comprehensive grievance reporting mechanism with clear escalation protocols. This framework establishes defined
responsibilities and agile response mechanisms across all management levels, ensuring seamless communication from frontline to senior
management. Employees are encouraged to promptly report any unfair treatment to their supervisors or the Human Resources Department.
The Company has appointed dedicated personnel to receive and address employee grievances and whistleblowing, providing timely updates Workdays lost due to work injuries Employee occupational disease incidence rate
on handling measures and outcomes to safeguard employee rights. Furthermore, the Company enforces strict confidentiality for all complaints
and whistleblowing. Any retaliation is strictly prohibited and will result in severe disciplinary action, ensuring employees can voice concerns
freely without fear of reprisal. By analyzing grievance cases, the Company consistently improves its policies to prevent similar issues from arising
in the future.
Yuwell Medical's parent company and four of its subsidiaries Yuwell Medical's parent company has been certified as
Employee Representative Meetings have obtained ISO 45001 Occupational Health and Safety a Level 3 Enterprise for Work Safety Standardization.
Regular employee representative meetings enable employees to participate in company governance, Management System certification.
particularly in matters related to employee benefits and career development.
Note 1: The Company does not contribute to work-related injury insurance for rehired and local foreign employees. For all other regular employees,
Face-to-Face Communication Sessions with the Chairman the work-related injury insurance coverage rate is 100%.
The Chairman and General Manager engages in direct communication with key employees from
various departments, conducting open discussions on organizational, business, and cultural topics to
listen to employees' perspectives. Occupational Hazard Prevention and Control
In compliance with Occupational Health and Safety Management System standards, Yuwell Medical rigorously implements the "Three
during process design and product manufacturing. The Company arranges occupational health check-ups for employees and engages
Comprehensive assessments of managers are performed by their superiors, peers, subordinates, and
certified institutions to conduct periodic assessments of workplace noise, air quality, and other potential occupational hazards. It systematically
collaborating personnel to fully consider employee feedback.
identifies risks and implements occupational disease prevention measures. A tiered safety approach is employed, with high-risk work areas and
locations clearly marked using safety warnings and protective barriers to ensure a safe and healthy working environment for all employees.
Internal Publication Yuwell New Horizon
This publication disseminates the Company's development updates, product information, and Health and Safety Training
management insights, while also featuring employee achievements and work reflections.
The Company places great emphasis on cultivating a robust health and safety culture. It has developed an integrated online and offline learning
platform to provide comprehensive safety education, including three-tier safety training and fire safety courses, to all employees. Regular initiatives
Employee Forum "Fish Pond" such as the Production Safety Month are organized to reinforce safety management practices as a routine aspect of work. These efforts encourage
This forum enables all employees to freely express themselves, with official accounts providing unified employees to prioritize safety precautions in their daily tasks, fostering a culture where safety is everyone's responsibility and priority.
and timely responses to topics of employee interest.
Occupational Health and Safety Mastery of CPR and AED techniques is a mandatory
requirement for all employees. This training has been
Yuwell Medical strictly adheres to relevant laws and regulations, including the Work Safety Law of the People's Republic of China , the Law incorporated into the standard curriculum for new
of the People's Republic of China on the Prevention and Control of Occupational Diseases , the Fire Control Law of the People's Republic hires. Throughout the year, five training sessions were
of China , the Safety Administration of Hazardous Chemicals , and the Provisions on the Supervision and Administration of Occupational conducted, recording 489 attendances. An online first-
Health at Work Sites . The Company also complies with the requirements of the ISO 45001 management system. It has formulated a aid safety course was launched, with 499 employees
series of regulatory systems, including the EHS Management Manual and the Measures for Management of Work-related Injury Accidents, successfully completing the training and assessment.
establishing a comprehensive safety management system. The General Manager is responsible for the Company's production safety,
incorporating annual health and safety targets into management performance evaluations to ensure workplace health and safety.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Safeguarding Life and Health
Upholding its mission of "alleviating patients' suffering and
Case
enhancing doctors' medical capabilities", Yuwell Medical Comprehensive Support for the "Power of Walking" Public Welfare Project
Total charitable contributions
consistently explores innovative philanthropic models
that align with contemporary developments and societal In 2024, Yuwell Medical served as the official medical security partner for the "Power of
needs. The Company is dedicated to initiatives in medical Walking" public welfare project, delivering comprehensive medical support throughout the
emergency response, diabetic care, and rural medical support, RMB million event. To tackle the challenge of high-altitude oxygen deficiency, the Company leveraged
contributing to the high-quality development of global its medical expertise to design emergency response kits customized for specific walking
healthcare industry. routes and terrain. These kits were equipped with oxygen generators, AEDs, blood pressure
monitors, thermometers, blood glucose meters, and other essential medical devices.
This proactive initiative not only ensured participants' safety and helped them maintain
Focusing on Medical Emergency Response optimal physical condition while navigating challenging terrain but also empowered more
individuals to overcome obstacles and regain the courage to face life's challenges. The
Since its inception, Yuwell Primedic has been at the forefront of emergency rescue services, safeguarding lives globally. In China journey begins with the heart and unfolds naturally - embodying both the spirit of the walk
alone, over 10,000 volunteers have undergone professional training provided by Yuwell Primedic. On a global scale, Yuwell Primedic's and Yuwell Medical's core philosophy of "energizing life via technology".
rescue network spans more than 100 countries, saving over a hundred lives annually. Furthermore, the Company has established the
elite Flying Fish Rescue Team, which has collaborated with event security organizations to provide medical support at thousands of
Case
international marathon events, successfully resuscitating dozens of runners who experienced cardiac arrest. Yuwell Medical Continues to Provide Full Safety Support for the 7th Medical League Competition·Gobi
Heroes Gathering, Marking Six Consecutive Years of Participation
On the 25th World Heart Day, Yuwell Primedic joined forces with various partners to establish a Public First Aid Network. This initiative
encompasses the promotion of AED first aid knowledge through public welfare activities and includes a partnership with Tencent to From September 22 to 26, 2024, the 7th Medical League Competition·Gobi Heroes
integrate AED devices into public transportation systems, thereby providing mobile emergency assistance to citizens. By harnessing Gathering took place in Guazhou, Gansu Province. The event attracted 3,000
advanced 5G and AIoT technology, Yuwell Primedic partnered with Tencent and China Unicom to create comprehensive emergency representatives from the medical and pharmaceutical industries, who undertook the
response solutions that greatly improve rescue efficiency. The company has also expanded its reach to schools, businesses, challenge of trekking 81 kilometers across the Gobi Desert. Throughout the event,
communities, and government agencies across the country. This program includes the One Hundred Emergency First Aid Training Yuwell Medical provided arm-type electronic blood pressure monitors and low-
Sessions and the Last Mile Emergency Aid Public Training, addressing common concerns about using emergency equipment and frequency electrotherapy devices to help participants monitor their health and aid in
improving pre-hospital emergency response efficiency and patient survival rates. Looking ahead, Yuwell Primedic plans to establish physical recovery. The Company also equipped the venue with Yuwell Primedic AEDs
first aid training cooperation sites in 100 cities. These sites will be equipped with AEDs, CPR manikins, and other interactive teaching featuring a drop-resistant design, ensuring timely emergency response capabilities
tools, offering public first aid training courses that cover health education, volunteer services, and rescue training to bolster primary and securing critical minutes in life-saving situations.
medical treatment capabilities.
Promoting the Development of Traditional Chinese Medicine
and Acupuncture
Yuwell Primedic has conducted reaching Suzhou Hwato Medical Appliance Co., Ltd., a subsidiary of Yuwell Medical, is a steward and advocate of Traditional Chinese Medicine
(TCM) and acupuncture culture. It consistently invests in education and talent development, breathing new life into the TCM sector.
public welfare training
sessions on AED and professional first aid cities with attendances
Established in 1991, the Hwato In collaboration with provincial and The Company has forged a strategic
Scholarship stands as the first privately municipal acupuncture societies, the alliance with the China Association of
Cumulative certified first aid volunteers nationwide First aid instructors trained endowed scholarship at Nanjing Company instituted the Hwato Gold Acupuncture-Moxibustion, sponsoring
University of Chinese Medicine. It Needle Award to recognize healthcare the National College Acupuncture and
thousands of exceptional students,
playing a crucial role in revitalizing the
field of TCM.
professionals who have made significant
contributions to TCM and acupuncture.
To date, nearly a hundred acupuncturists
across the nation have been honored
Tuina Clinical Skills Competition for
three consecutive years to foster the
development of skilled practitioners in
acupuncture and tuina.
with this prestigious award.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Dedication to Diabetes, one of the most prevalent chronic diseases worldwide, is increasingly
affecting younger populations. Yuwell Medical is at the forefront of chronic disease
Supporting Rural Yuwell Medical is actively involved in the Rural Healthcare Program, aiming to enhance primary
healthcare services and improve the allocation of medical resources in rural areas. Over the
Diabetic Care management, driving product innovation and technological advancements based on Revitalization years, the Company has made significant donations of medical equipment to rural primary
a deep understanding of diabetic patients' needs and emerging health management healthcare institutions, addressing the acute shortage of medical supplies at the grassroots
trends. The Company offers more accurate and user-friendly blood glucose level. Through partnerships with reputable charitable organizations such as the China Charity
management services for individuals living with diabetes. Furthermore, it partners Federation, Red Cross Society of China Xianyang Branch, Jiangsu Social Donation Service Center,
with hospitals and other healthcare institutions to enhance diabetes prevention and and Shanghai Charity Foundation, the Company has contributed funds and medical devices to
treatment efforts, conducts free community clinics, and organizes various charitable rural revitalization projects and various elderly care institutions. These efforts have significantly
initiatives to provide comprehensive support for those affected by diabetes. enhanced health management standards and disease prevention capabilities in rural regions.
Delivery within
To tackle the oxygen supply challenges in high-altitude regions, Yuwell Medical initiated the
Xizang Oxygen Production Project in 2016. This effort led to the establishment of the Yuwell
Medical Highland Oxygen Production Industry Park in Lhasa, Xizang, in 2018. The facility
The Company regularly hosts The Company has established The Company actively hour in urban areas produces a full spectrum of high-altitude oxygen products, including centralized and split
Yuwell Health Camp events, a diabetic community, which promotes public awareness
of Xizang diffusion systems, micro-pressure oxygen chambers, modular units, portable devices, vehicle-
featuring renowned experts serves as an interactive online of diabetes prevention
mounted systems, and individual nasal inhalation devices. This diverse product range effectively
from top-tier hospitals who platform catering to patients and control, disseminating
meets the oxygen needs of highland residents. The Company's 1+1 Service Model, coupled with
engage directly with diabetic with various types of diabetes, scientific knowledge about Delivery within grid-based, standardized service and an intelligent remote monitoring platform, ensures rapid
patients. These experts share including Type 1, Type 2, and blood glucose management.
product delivery—within 1 hour in urban areas of Xizang and within 1 day in remote regions.
scientifically-backed methods gestational diabetes.
Yuwell employees have made multiple trips to high-altitude outposts over 5,000 meters above
for blood glucose control, sea level to deliver high-quality and reliable high-altitude oxygen concentrators to local residents,
Registered users on the platform: day in remote areas
creating a platform that aid workers, and individuals from various sectors. The Company remains dedicated to its long-
combines professional health term engagement in Xizang, focusing on developing high-altitude medical infrastructure and
guidance with interactive Cumulative views in the diabetic
exploring diverse public welfare models to improve the health of highland residents.
discussions. community: 1,690,000+
Total number of posts: 80,000+ Case
Committed to High-Altitude Healthcare, Serving the People of Xizang
From October 17 to 22, 2024, the China Ageing Development Foundation, in
collaboration with several influential organizations, launched the Hearing Care Program
July 2024
for Veteran Soldiers, an initiative specifically targeted at retired soldiers in high-altitude
Yuwell Medical co-organized the regions. As a key partner, Xizang Yuwell Medical provided comprehensive services across
Huai'an City, Jiangsu Province. an average altitude of approximately 4,000 meters. The company conducted multiple
The event attracted nearly 100 health screenings, including tests for blood pressure, blood glucose, uric acid, and
families affected by Type 1 cholesterol, while also offering high-altitude oxygen supply services. Personalized
diabetes, providing them with medical advice was also provided, demonstrating Yuwell's commitment to the health
valuable knowledge and practical and well-being of retired soldiers in these challenging environments.
management skills related to the
condition. A 6.8-magnitude earthquake struck Tingri County in Shigatse City, Xizang, causing casualties in surrounding areas including Lhatse County and
CGM blood glucose exhibition resulting in over 100 injuries. Xizang Yuwell Medical immediately activated its high-altitude emergency oxygen supply and emergency first-aid plan,
August 2024
deploying critical medical rescue equipment such as high-altitude outdoor oxygen production cabins, portable wearable oxygen concentrators,
The Company successfully held the and AEDs to provide urgent oxygen support and emergency medical aid for earthquake relief. Partnering with the China Ageing Development
Yuwell Health Camp event, inviting Foundation, the company organized overnight transportation to ensure essential medical gear, including oxygen generators and wheelchairs,
medical experts to deliver accessible along with other relief supplies, reached the disaster zone promptly. This rapid response provided critical medical support to affected residents and
and informative sessions on frontline rescue teams, significantly enhancing the efficiency of rescue operations.
diabetes knowledge, and offering
one-on-one free consultations. In Case
Advancing National Grassroots Infection Control
addition, the Company provided
continuous glucose monitoring
systems free of charge to help more To promote the building and development of China's national grassroots infection control (IC) system, Zhongyou Likang Pharmaceutical High-
individuals with diabetes achieve Tech (Chengdu) Co., Ltd. has exclusively supported the National Health Commission in implementing the Inspiring China grassroots IC training
scientific and convenient blood program since 2017. The company has established the Inspiring China Hospital Infection Prevention and Control Research Fund, aimed at
glucose management. accelerating research and exploration of innovative methods, technologies, and applications in China's IC field. In 2024, Zhongyou Likang
Yuwell Health Camp event collaborated with the National Health Commission to launch the second session of the Inspiring China grassroots IC training program.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Environmental Friendliness
Creating a Shared Green Future
Total investment in environmental protection
RMB 4.82 million
Greenhouse gas emission intensity
Waste emission compliance rate
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Strengthening Environmental Management Environmental Management Objectives
Yuwell Medical is committed to implementing and upholding the principles of green development. The Company strictly adheres to The Company regularly assesses the environmental impact of its business operations, cascading environmental objectives and
relevant environmental protection laws and regulations, including the Environmental Protection Law of the People's Republic of China , tasks to various departments. It reinforces the tracking, feedback, and evaluation of goal achievement progress, implementing
the Law of the People's Republic of China on Water Pollution Prevention and Control , the Law of the People's Republic of China on closed-loop management to constantly improve environmental performance. EHS management objectives are incorporated
the Prevention and Control of Atmospheric Pollution , and the Law of the People's Republic of China on the Prevention and Control of into management performance evaluations, with a veto system for major negative incidents in environmental management.
Environmental Pollution by Solid Waste . In accordance with ISO 14001 Environmental Management System standards, it has developed Once the EHS management objectives are further detailed and allocated to specific departments, they are directly tied to the
the Yuwell Medical EHS Management Manual and other policy guidelines. The Company constantly optimizes its internal environmental performance evaluations of department heads and relevant personnel.
management system, embedding sustainable development practices into daily operations. Through developing a comprehensive EHS
governance framework, it rigorously enforces EHS management responsibilities at all organizational levels. The Company also enhances Indicator and Target 2024 Achievement Status
its monitoring and improvement mechanisms, with the dual goal of boosting corporate competitiveness while reducing environmental
Waste classification rate ≥ 90%
footprint. During the reporting period, Yuwell Medical reported no environmental pollution incidents, incurred no environmental
administrative penalties, and experienced no major environmental incidents. 100% control of hazardous waste Target achieved
Factory boundary noise emissions comply with Class 3 standard in GB 12348-2008
Total investment in Environmental protection Emission Standard for Industrial Enterprises Noise at Boundary , i.e., ≤ 65 decibels during Target achieved
environmental protection training coverage rate the day and ≤ 55 decibels at night, with no complaints from relevant parties.
RMB 4.82 million 100% Unorganized exhaust gas emissions at factory boundaries meet standards, with no
external complaints.
Implement rainwater and sewage diversion systems in the factory area, with
compliant sewage discharge.
Target achieved
Target achieved
Increase factory area greening to 15% of the factory area. Target achieved
EHS Management Structure
The Company has established a three-tier EHS management structure with clearly defined responsibilities at each level. The
General Manager is primarily responsible for environmental protection, leading and coordinating the Company's EHS management Environmental Risk Management Environmental Audits and Certification
strategies. A Management Representative is appointed to develop plans and ensure that environmental initiatives are established, The Company has implemented a suite of policies, including the The Company has developed the Internal Audit Control
implemented, and maintained within the EHS management system, with direct reporting to the General Manager. The functional Identification, Evaluation, and Control Procedure for Environmental Factors, Procedure and the Management Review Procedure. Annually,
departments execute various regulations and requirements of the Company's EHS management system, ensuring the achievement the General Rules for Monitoring, Measurement, Analysis, and Evaluation , and it undertakes multi-dimensional internal environmental
of EHS management policies and objectives. The EHS management system encompasses 100% of the Company's relevant business the Emergency Preparedness and Response Procedure . It annually identifies audits, cross-departmental reviews, and rigorous self-
segments. During the reporting period, the Company revised the Yuwell Medical EHS Responsibility System and implemented tiered and reviews environmental risk factors, undertaking proactive environmental inspections according to a predefined schedule. The system
safety and environmental protection responsibility agreements to ensure effective implementation of safety responsibilities. assessments and hazard investigations to constantly refine risk control maintains its effectiveness through the PDCA (Plan-Do-Check-
measures. Regular environmental monitoring is carried out to effectively track Act) model, ensuring continuous improvement. Quarterly,
pollutant emissions, with results promptly disclosed for regulatory review and the Company partners with third-party professional
public oversight. An emergency command center and response teams have institutions to audit its environmental management system,
Oversee the Company's EHS management initiatives, including formulating corporate EHS management been established, supported by a dedicated Emergency Plan for Sudden comprehensively assessing operational efficiency and
policies and objectives, ensuring adequate resources for effective operation of the EHS management system, Environmental Incidents . Regular professional training and emergency drills environmental performance. Furthermore, the Company
General
and preventing and managing overall environmental risks. are conducted to strengthen the Company's emergency response capabilities actively promotes the development and certification of
Manager
and readiness for environmental incidents. During the reporting period, the its environmental system, undergoing annual supervisory
Company revised its List of Significant Environmental Factors , identified 55 audits by third-party certification bodies and recertification
environmental factors, and carried out two environmental emergency drills audits every three years.
Assist the General Manager in establishing, implementing, and maintaining the EHS management system, focusing on chemical spills and sudden environmental incidents.
ensuring the realization of EHS management policies and objectives. Organize the assessment of risk and
Yuwell Medical's parent company and
Management opportunity response measures, and oversee the investigation, analysis, and handling of major environmental
Representative and safety incidents. Environmental Protection Training three of its subsidiaries have obtained
ISO 14001 Environmental Management
The Company regularly conducts diverse, multi-tiered environmental System certification.
protection education and training programs, followed by post-training
assessments. Extensive environmental awareness campaigns are organized Yuwell Medical's parent company has
Execute various regulations and requirements of the Company's EHS management system, carry out work related to enhance employees' environmental consciousness and competencies. been certified as
Functional to the EHS management system, and ensure the achievement of EHS management policies and objectives. During the reporting period, environmental protection training covered the national Green Factory and
Departments 100% of the Company's main operational bases, with 2,000 manuals the Jiangsu Provincial Green Factory.
distributed and five environmental education warning films screened.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Addressing Climate Change
Governance Yuwell Medical has established a comprehensive governance structure to constantly
enhance its capacity to identify, assess, manage, and disclose climate-related risks
Strategy and Yuwell Medical thoroughly analyzes the risks and opportunities presented by climate
change, incorporating climate change considerations into strategic decision-making.
and opportunities. The Board of Directors assumes a leadership role in managing Management While accelerating green transformation, the Company integrates climate risk
and deciding on climate change issues, reviewing ESG-related risk and opportunity
assessments (including climate change topics), approving climate-related planning
Mechanisms response into its operations to enhance overall climate resilience.
objectives and their progress, and overseeing implementation. The EHS Working Group
is responsible for evaluating and analyzing climate change risks and opportunities,
formulating strategic objectives and implementation plans to address climate change,
promoting the implementation of climate-related actions across various business units,
and regularly collecting and tracking climate change-related data and target progress.
Potential Financial
Category Risk/Opportunity Description Impact Period Response Measures
Impact
Extreme weather events (e.g., floods, typhoons, and high temperatures) Revenue ? Enhance the identification and management of climate change risks. Refine
Short-term, emergency response plans to boost the capacity to respond to extreme
Acute Risks caused by climate change may directly damage company assets and Operating costs ?
Medium-term weather events, optimize supply chain layout, and ensure business continuity.
production facilities, impacting business continuity. Fixed asset value ?
Consistently advance energy efficiency management and intelligent
manufacturing, gradually introducing production line robots, and automated
Physical Risks Rising temperatures and water resource risks may affect supply chain
Chronic Risks Long-term Operating costs ? guided vehicles (AGVs) to improve production efficiency and reduce long-
stability and operational costs. term operating costs.
Promptly monitor environmental and carbon-related legal and policy
Policy and Increasingly stringent policies and requirements in operational Medium-term,
Operating costs ? changes in operational locations. Enhance compliance management
Regulations locations may increase costs and strengthen operational constraints. Long-term
and proactively consider policy adaptability.
Constantly monitor and assess potential impacts of climate change and
Customer demands for low-carbon products and green supply chains are natural disasters on human health. Stay abreast of cutting-edge scientific
growing. While green product and technology deployment will enhance the research on disease spectrum changes caused by climate change. Intensify
Transition Risks
Company's product competitiveness, low-carbon transition costs will increase. product and technology R&D efforts.
Market and Medium-term, Revenue ?
Extreme weather induced by long-term climate change may directly or Develop comprehensive decarbonization strategies. Actively implement
Technology Long-term Operating costs ?
indirectly affect human health. Changes in public health environments may new materials, equipment, processes, and technologies. Thoroughly
necessitate potential adjustments to the Company's product R&D direction evaluate investment returns and feasibility before implementing low-
and market strategy, posing certain challenges. carbon transition projects. Adopt optimal solutions based on specific
circumstances.
Potential new business directions may emerge in disease areas caused
by climate change, leading to new home medical device solutions.
Products and Health issues brought about by climate change may drive increased Medium-term, Increase R&D investment and optimize R&D layout to enhance
Revenue ?
Services demand for home medical devices. Long-term product chain competitiveness while addressing health needs.
Enhancing product competitiveness and expanding new growth areas
Climate through low-carbon technology R&D and green product development.
Opportunities
Further promote intelligent manufacturing initiatives. Widely implement
Adopting energy-saving technologies and equipment to reduce energy
Resource Short-term, energy-saving technologies and equipment in production processes to
consumption in production processes, achieving both cost savings and Operating costs ?
Efficiency Medium-term create a green and efficient energy utilization system and reduce long-
environmental protection.
term operating costs.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Green Products Green Health Materials
Yuwell Medical integrates green innovation principles into product development. Throughout packaging design, production, distribution,
transportation, and sales, the Company actively employs new materials, equipment, processes, and technologies to promote modular,
The Company selects renewable and recyclable materials for its oxygen concentrators. High-efficiency compressors are
lightweight, low-energy consumption, and environmentally friendly design, delivering more sustainable high-quality products.
utilized to enhance oxygen production efficiency. Advanced molecular sieve adsorption materials are employed to optimize
the oxygen production process, improving nitrogen-oxygen separation efficiency and reducing energy consumption.
The Company rigorously implements comprehensive hazardous substance control, requiring suppliers to provide raw and auxiliary
materials that comply with the EU Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) Directive . Self- The Company has introduced electronic blood pressure monitors that use rechargeable lithium batteries. These can be
assessments are conducted in accordance with the Green Supply Chain Management Evaluation Requirements , achieving a green recharged and used multiple times, offering a more sustainable alternative to conventional disposable alkaline batteries.
supply chain management index of 82.5 (exceeding the 80-point threshold), meeting the criteria for an excellent green supply chain
The Company chooses materials compliant with the RoHS directive. Strict controls are implemented over harmful substances
management enterprise. This ensures that risks associated with chemical substances affecting human health and the environment in the
such as mercury, lead, cadmium, and hexavalent chromium, significantly minimizing their impact on human health.
Company's production and operations are minimized.
The Company selects packaging suppliers and products that meet environmental certification standards, such as ISO 14001
Green Packaging Environmental Management System certification. This ensures that all procured packaging materials adhere to environmental
protection requirements.
In packaging design, production, distribution, transportation, and sales, the Company prioritizes packaging simplification
while maintaining product safety. It emphasizes the use of recyclable materials and promotes packaging material reduction Low-Carbon Operations
throughout the product lifecycle through internal circulation, resource recycling, and reuse, thereby minimizing natural
Yuwell Medical ensures compliance with ISO 50001 Energy Management System requirements. The
resource consumption and environmental impact. Yuwell Medical's
Company has developed comprehensive energy management policies, including the Energy Management
parent company
System Manual . To support the development of energy management objectives and plans, a robust energy
and two of its
management framework has been implemented. Regular energy conservation audits are conducted,
subsidiaries have
with energy-saving and emission-reduction initiatives pushed forward through three key dimensions of
obtained ISO 50001
The Company advocates for recyclable, The Company has launched the innovative management-driven conservation, technological conservation, and energy structure optimization—all with
Energy Management
biodegradable, or reusable packaging materials Reusable Box project to decrease packaging the goal of achieving low-carbon operations. Energy management objectives are annually updated and
System certification.
such as cardboard and biodegradable plastics material usage for consumer-end shipments. incorporated into performance evaluations to ensure alignment with sustainability goals.
to reduce environmental impact. For instance, This recycling model achieves efficient resource
biodegradable materials like 400g white cardboard utilization, significantly reducing waste disposal Energy Management Strategy
are used for packaging temperature, fetal heart, costs and environmental burden.
Yuwell Medical is actively developing a big data platform for energy management. This platform establishes an integrated energy
and blood oxygen products. Foam liners have
control system encompassing data collection, process monitoring, and energy management. Through multi-level metering devices,
been replaced with recyclable air column bags
the Company achieves centralized monitoring of various energy media and key energy-consuming equipment. This enables
made of LLDPE/NYLON co-extruded film, reducing
comprehensive closed-loop management from energy planning to statistics, analysis, and assessment, ensuring the safe, reliable,
plasticization volume.
economical, and efficient operation of energy systems. This approach facilitates the transition of energy management from an
experience-based model to an analysis-driven one, and from manual processes to digital operations.
Modular, Lightweight, and Low Energy Consumption Design
Integrated Monitoring Energy Indicators
Electric Wheelchairs: A lightweight product series has been developed, with an average weight reduction of approximately 5kg across
Energy Decision-making
Control and Adjustment
Performance Evaluation
the new product line and a 10% decrease in folded size, reducing packaging volume and material usage. All models incorporate a low-
Energy Forecasting
Thematic Analysis
power consumption design for the control unit, reducing standby power consumption from 3mA to 0.8mA, extending standby time Statistical Accounting
while reducing energy consumption.
Electronic Blood Pressure Monitors: Platform-based design concepts are adopted for air circuit modules and circuit modules to reduce Energy Plan
material redundancy. Intelligent standby design and smart control modes are employed to further minimize power consumption.
Oxygen Concentrators: Modular and easy-maintenance designs are implemented for convenient disassembly and repair, extending
product lifespan and reducing waste materials. A built-in intelligent pulse oxygen supply system provides oxygen only when the user
inhales, preventing unnecessary oxygen and energy waste. Design focus is on miniaturization of spatial dimensions and equipment
This system is founded on statistical accounting and enhanced by integrated monitoring. It oversees energy plan
weight reduction, improving portability and transportation efficiency.
execution, supplemented by control and adjustment measures. The system focuses on energy indicators, reinforces
thematic analysis, and supports energy forecasting, decision-making, and performance evaluation.
Temperature Products: Modular and lightweight design principles are applied, with a shared temperature measurement module
for the preheating platform (YHT108, YHT201, YHT202, YHT208, YHT207 share the temperature measurement module), enhancing
Energy Energy In-process In-process
resource efficiency. Pre-planning Post-analysis Post-evaluation
Forecasting Decision-making Accounting Control
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Energy Conservation and Emission Reduction Actions Indicators and Targets
Management-Driven Conservation Technological Conservation
Indicator and Target 2024 Achievement Status
An energy management center has been established, equipped High-energy-consuming, low-efficiency outdated equipment
with a smart online monitoring system. This system allows for is systematically replaced. All operational sites have adopted Comprehensive energy consumption per unit of
Comprehensive energy consumption per unit of output
real-time tracking of energy consumption, unit energy usage, intelligent centralized energy systems, with common equipment output value ≤ 6.08 kg standard coal equivalent/
value: 5.64 kg standard coal equivalent/RMB 10,000
energy trends, and operational parameters, making it easy to such as air compressors, transformers, water pumps, chillers, RMB 10,000
spot unusual consumption patterns. Thorough analyses of the and cooling towers upgraded to energy-saving models. Energy-
Air compressor efficiency ≥ 85%, pressure ≥ 0.75, Air compressor efficiency ≥ 85%, pressure ≥ 0.75, exhaust
energy data help identify opportunities for savings and develop efficient lighting has been implemented across 100% of facilities,
exhaust temperature < 100° C temperature 80° C Target
more effective conservation strategies. This informs timely resulting in significant operational emission reductions. In 2024, a
achieved
adjustments to production, management, and processes, chiller frequency conversion renovation project was implemented, Power distribution power factor ≥ 96%, line loss
Power distribution power 97%, line loss rate ≤ 3%
facilitating fine-grained energy management. reducing electricity consumption by 633,600 kWh. New energy- rate < 5%
efficient permanent magnet variable frequency air compressors
Off-peak electricity consumption is utilized, with high-power Ground source heat pump efficiency COP ≥ 5.4 Ground source heat pump efficiency COP ≥ 5.4
were introduced, further reducing electricity consumption by
equipment usage scheduled during nighttime hours while
maintaining production efficiency and equipment safety to
boost energy efficiency. Water-circulation air conditioning systems have been introduced,
Note: Statistics pertain to Yuwell Medical's parent company.
offering superior energy efficiency, low noise levels, and enhanced
Natural lighting is maximized, and green office practices are
environmental performance. Compared to traditional air
actively promoted to reduce energy consumption and waste
conditioning, these systems can reduce energy consumption by Indicator Unit 2024
emissions.
over 30% while providing higher cooling efficiency. The elimination
of refrigerants in these systems further reduces pollution.
Gasoline tons 52.86
Energy Structure Optimization Intelligent manufacturing practices are constantly advanced,
Diesel tons 37.93
including the introduction of automated production lines and
The proportion of clean and renewable energy use is being robotic technologies. More efficient production techniques and Natural gas million m? 1.01
Energy
increased, raising the share of green electricity in the Company's processes are applied, with real-time monitoring and adjustment Purchased electricity million kWh 39.84
Consumption
energy mix through ongoing investment in photovoltaic systems of equipment status to reduce energy consumption per unit of
and green electricity purchases. output value. Total energy consumption tons of standard coal equivalent 6,368.69
tons of standard coal
Energy consumption intensity 0.0084
equivalent/RMB 10,000 revenue
Impact, Risk, and Opportunity Management Direct greenhouse gas emissions (Scope 1) tons of CO2 equivalent 2,456.42
Yuwell Medical has implemented a comprehensive process and framework for managing climate-related risks and opportunities. Indirect greenhouse gas emissions (Scope 2) tons of CO2 equivalent 21,380.41
This system is designed to identify, assess, and manage significant climate change risks and opportunities, enabling the Company to Greenhouse Gas Total greenhouse gas emissions (Scope 1
develop evidence-based climate change response strategies and enhance its overall climate resilience. Emissions tons of CO2 equivalent 23,836.83
and Scope 2)
tons of CO2 equivalent/RMB
Identification of The Company identifies climate risks and opportunities in alignment with recommendations from Greenhouse gas emission intensity 0.0315
Climate Risks and frameworks such as the IFRS S2 Climate-related Disclosures and the Self-Regulatory Guidelines
Opportunities No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (Trial).
Photovoltaic power Green electricity
generation during the year purchased
Through thorough internal and external environmental analysis and the use of risk management
Assessment of Climate
Risk and Opportunity
Materiality
tools, the Company evaluates the probability of risks occurring, the potential impact of these risks,
and their financial implications. This process helps to pinpoint significant climate change risks and
opportunities and their potential effects on the Company's operations.
Total renewable energy
consumption
Material risks and opportunities are fully integrated into the Company's risk management
Management of Climate
Risks and Opportunities
system. Comprehensive climate risk response action plans are developed, and targeted risk
management and response measures are implemented. The execution of these plans is
regularly monitored to ensure active response to climate change challenges.
Heyang Photovoltaic Power Generation Project Phase II (newly built)
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Reducing
Environmental Impact
Water Resource Management
Yuwell Medical primarily sources its production and office water from
municipal supplies. All major production and operational sites that
consume significant water are strategically situated in areas with
relatively low water stress risk. The Company has developed the Yuwell
Medical Water Conservation Management System , implementing a
comprehensive water planning and management approach. This
involves developing detailed water-saving plans and setting annual
water usage targets, which are assigned to key departments that
consume the most water and monitored by designated personnel.
The Company also actively promotes production process optimization
and equipment upgrades to promote sustainable water use.
During the reporting period, Yuwell Medical underwent a rigorous
water-saving enterprise evaluation in accordance with the Evaluating
Guide for Water Saving Enterprises . The Company successfully met
all basic requirements, management assessment indicators, and
technical benchmarks, thereby qualifying as a water-saving enterprise.
Develop comprehensive water resource usage plans, rationally allocate water resources, implement stringent quota
management, and regularly assess and supervise water usage, with a system of rewards for conservation and
penalties for excess use.
Annually allocate dedicated funds for water-saving projects, technological upgrades, and procurement of efficient Total water withdrawal Surface water Groundwater
water-saving equipment such as advanced cooling towers to improve water resource utilization efficiency. For Municipal water withdrawal withdrawal withdrawal
example, Shanghai Medical Instruments Group upgraded open cooling towers to closed-circuit types, significantly
Water
Conservation
reducing water evaporation and cutting annual water consumption from over 30,000 tons to approximately 4,000 tons. 694,000 tons 0 tons 0 tons
Conduct regular inspections and maintenance to prevent water leakage and waste. tons
Enhance employee training on water conservation practices and actively encourage staff to propose innovative water-
saving technical improvements, fostering a culture of research and innovation.
Total water discharge Total water consumption
Actively promote water recycling initiatives in production and operations, including the reuse of cooling and
process water, as well as wastewater treatment and reuse. These efforts aim to improve water efficiency
while reducing the environmental impact of wastewater discharge on surrounding water bodies. tons tons
Water
Implement rainwater harvesting systems, collecting rainwater in on-site reservoirs for landscape irrigation,
Recycling
which resulted in saving 1,440 tons of water from natural precipitation in 2024.
Water recycling volume Water recycling rate
Construct robust pipeline networks to prevent production and operation disruptions due to potential
water supply interruptions. Carefully consider water resource risks in new project site selection processes,
Water Risk constantly monitor water scarcity risks, and regularly evaluate water-related strategies to ensure a stable tons
Reduction and sufficient water supply for essential production operations.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Emissions and Waste Management
Yuwell Medical upholds a clean and green production and operational model. It strictly adheres to relevant laws and regulations, including
Indicator 2024
the Regulation on the Administration of Permitting of Pollutant Discharges , and has implemented the Yuwell Medical EHS Management
Manual to meticulously manage exhaust gas emissions, wastewater discharge, and solid waste disposal. The Company mandates that
pollution prevention facilities be designed, constructed, and commissioned concurrently with the main project. Regular self-monitoring is Chemical oxygen demand (COD) (tons) 1.21
conducted by accredited third-party testing institutions, with environmental monitoring data promptly disclosed to ensure 100% compliant
discharge of all waste types, thereby minimizing the environmental impact of emissions. Throughout the reporting period, the Company
recorded no major environmental incidents, facing no administrative penalties or criminal charges from environmental protection Ammonia nitrogen emissions (tons) 0.09
authorities for such incidents. There were no instances of excessive or illegal discharge of air or water pollutants.
Wastewater Management
Exhaust Gas Management
The Company's wastewater primarily stems from domestic sewage, R&D activities, and manufacturing processes. Yuwell Medical
rigorously complies with pertinent laws, regulations, and local standards, including the Law of the People's Republic of China on Yuwell Medical's production processes primarily generate emissions including volatile organic compounds (VOCs), nitrogen oxides
Water Pollution Prevention and Control , the Integrated Wastewater Discharge Standard, and the Reuse of Urban Recycling Water (NOx), sulfur oxides (SOx), and particulate matter (PM). The Company rigorously adheres to the Law of the People's Republic of China
- Water Quality Standard for Industrial Uses . The Company has established a comprehensive Wastewater Management System to on the Prevention and Control of Atmospheric Pollution and local air pollutant emission standards. In compliance with the internal
enhance online monitoring and regular inspections, ensuring compliant treatment, discharge, and recycling of production and Exhaust Gas Management System , it implements comprehensive emission controls across all facilities, ensuring exhaust gas emissions
operational wastewater. A rainwater and sewage diversion system is implemented. Rainwater is channeled into the municipal meet standards after treatment through proper devices. Monitoring and sampling ports have been installed at key outlets, and regular
rainwater network, while production wastewater undergoes on-site treatment, with a portion reused in production and the remainder assessments of critical parameters such as exhaust gas composition, concentration, and flow rate are conducted to effectively mitigate
discharged externally. High-concentration organic wastewater is subjected to pretreatment before being combined with various types air pollution risks. In 2024, Zhongyou Likang upgraded its exhaust gas treatment facilities in workshops, transitioning from photocatalytic
of washing water and alkaline scrubber wastewater in a mixing pool for detoxification. Subsequently, 60% of the treated wastewater is units to activated carbon adsorption systems, achieving an organized exhaust gas treatment efficiency of over 90%.
discharged into the municipal sewage network, while 40% enters the water reuse treatment system. After meeting quality standards,
this reclaimed water is utilized for rinsing in production lines, resulting in an annual water savings of approximately 4,380 tons.
Indicator 2024
Case
Industrial Wastewater Treatment Project
Nitrogen Oxides (NOx) emissions (tons) 0.18
Yuwell Medical's industrial wastewater treatment project emphasizes technological advancement and operational efficiency. Sulfur Oxides (SOx) emissions (tons) 0.02
Utilizing mature and proven wastewater treatment technologies, combined with an automated control system, it precisely
optimizes operational parameters and ensures consistent compliance with effluent standards. The project opts for high-
quality, energy-efficient local equipment and streamlines operational procedures via integrated design, substantially reducing Volatile Organic Compounds (VOCs) emissions (tons) 1.12
management complexity and minimizing the risk of human error. After treatment, 40% of the industrial wastewater is reintroduced
into the production process for recycling, achieving exemplary resource recovery while preventing secondary pollution risks Particulate Matter (PM) emissions (tons) 0.08
through whole-process pollution control measures, thus establishing a sustainable wastewater management model.
Standardized
Regulation
Outlet
Tank
Degreasing
Wastewater
Spray
Reclaimed Water System
Fenton Oxidation Tank
Fenton Oxidation Tank
Wastewater
Production Reuse
Air Flotation Tank
Regulation Tank
Discharge Tank
MER Reactor
Mixing Tank
A/O Tank
Dewatering
Sludge
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Waste Management Indicator 2024
Yuwell Medical strictly complies with the Law of the People's
Republic of China on the Prevention and Control of Environmental
Non-hazardous waste generated (tons) 250.75
Pollution by Solid Waste and other relevant laws and regulations. Waste Management Goal: Reduce pollutant
The Company has implemented the General Solid Waste emissions per unit of product by
Management System and the Hazardous Solid Waste Management Waste emissions Non-hazardous waste recycled (tons) 206.00
System , establishing rigorous waste handling procedures and
safety protocols. Adhering to the principles of reduction, resource
utilization, and harmlessness, it maintains strict control over
waste throughout the entire lifecycle of production, storage,
in 2024 compared to 2023 levels.
Hazardous waste generated (tons) 66.45
transportation, and disposal. During the reporting period, the
Company recorded no violations related to waste disposal.
Biodiversity Protection
Hazardous Waste Yuwell Medical maintains strict adherence to national and local biodiversity protection laws and regulations, actively fulfilling its
commitments under the UN Convention on Biological Diversity . Biodiversity protection measures are integrated into all stages
The Company's hazardous solid waste includes waste filter bags, sludge, spent activated carbon from exhaust gas treatment processes, waste of project planning, design, construction, and operation. Prior to project construction, the Company conducts comprehensive
filter cotton, chemical packaging containers, waste mechanical oil, waste emulsions, and oil sludge. A hazardous waste storage facility has been environmental risk factor identification and hazard investigations, meticulously observing ecological red line requirements. During
established, equipped with waterproofing and anti-leakage measures. All hazardous waste is meticulously classified, temporarily stored, and project operations, the Company implements continuous environmental monitoring protocols to promptly identify and address
managed by specialized personnel in strict accordance with the Standard for Pollution Control on Hazardous Waste Storage (GB18597-2023). potential issues, actively engaging in ecological restoration and protection initiatives. Throughout the reporting period, Yuwell Medical
The Company regularly engages qualified professional entities to ensure the safe and effective disposal of hazardous waste. maintained no production facilities or operational sites within ecological protection areas or regions of high biodiversity value. None
of its production activities, products, or services had a significant impact on biodiversity.
The Precision Integrated Workshop utilizes cutting- The Company collaborates with third-party
edge production equipment capable of filtering comprehensive utilization and disposal units to
and reusing spent emulsions, potentially reducing recycle hazardous waste such as waste cutting
waste emulsion treatment by approximately 30% fluids, waste emulsions, and waste machine oils,
annually. reducing hazardous waste by 10 tons annually.
Non-hazardous Waste
The Company's non-hazardous solid waste encompasses
waste metal scraps, metal dust, general packaging containers,
and office supply waste. General production solid waste Comprehensive utilization
undergoes thorough collection for recycling, while domestic rate for general solid waste
waste is systematically collected and regularly removed
by local sanitation departments. The Company employs
innovative wireless e-ink screens to display real-time inventory
data, prioritizes emails and electronic files to achieve paperless
operations, and has implemented a consumables requisition
registration system to minimize waste generation.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Key Performance Table
Corporate Governance
Business Ethics and Anti-corruption Water Utilization
Indicator Unit 2023 2024 Indicator Unit 2023 2024
Coverage rate of anti-corruption training % 100% 100% Total water withdrawal tons 561,377.9 694,019.38
Average anti-corruption training duration per employee hours 2 6.7
Water recycling rate % / 5.40%
Environmental Performance
Emissions and Waste1
Environmental Management
Indicator Unit 2023 2024
Indicator Unit 2023 2024
Waste emission compliance rate % 100% 100%
Total investment in environmental protection1 million RMB 7.02 4.82
Total wastewater discharge? tons 3,566 2,852
Environmental protection training coverage rate % 100% 100%
Hazardous waste generation tons 48.38 66.45
Environmental incidents throughout the year cases 0 0
Non-hazardous waste generation tons 245.58 250.75
Note 1: In 2023, the Company made significant investments in environmental protection facilities. In 2024, the focus shifted to maintenance, resulting
in lower expenditure. Nitrogen oxides (NOx) tons / 0.18
Sulfur oxides (SOx) tons / 0.02
Energy Use and Greenhouse Gas Emissions 1
Volatile organic compounds (VOCs) tons / 1.12
Indicator Unit 2023 2024 Particulate matter (PM) tons / 0.08
Gasoline tons 76.40 52.86
Note 1: Statistics pertain to Yuwell Medical's parent company.
Diesel tons 33.27 37.93
Natural gas million m? 0.86 1.01
Purchased electricity million kWh 34.92 39.84 Social Performance
tons of standard
Total energy consumption 5,600.27 6,368.69 R&D Innovation
coal equivalent
tons of standard coal Indicator Unit 2023 2024
Energy consumption intensity 0.0070 0.0084
equivalent/RMB 10,000 revenue
Annual R&D investment million RMB 504.37 546.68
Direct greenhouse gas emissions (Scope 1) tons of CO2 equivalent 2,201.36 2,456.42
Indirect greenhouse gas emissions (Scope 2) tons of CO2 equivalent 19,916.69 21,380.41 R&D investment as a percentage of revenue % 6.33% 7.23%
Total greenhouse gas emissions (Scope 1 and 2) tons of CO2 equivalent 22,118.05 23,836.83
tons of CO2 equivalent/RMB
Greenhouse gas emission intensity 0.0277 0.0315
Note 1: The data is based on guidelines including the Greenhouse Gas Protocol published by the World Resources Institute (WRI) and the World Business
Council for Sustainable Development (WBCSD), ISO 14064-1:2018 – Specification with guidance at the organization level for quantification and reporting Indicator Unit 2023 2024
of greenhouse gas emissions and removals , and GB/T 2589-2020 – General Rules for Calculation of the Comprehensive Energy Consumption issued by the
Customer complaint handling rate % 100% 100%
State Administration for Market Regulation and the Standardization Administration of China. For Scope 2 greenhouse gas emissions, the emission factor for
purchased electricity is based on the Announcement on the Release of the 2022 Carbon Dioxide Emission Factors for Electricity Generation (Announcement
B2B customer satisfaction rate % 96.2% 97.2%
No. 33 2024) jointly issued by the Ministry of Ecology and Environment and the National Bureau of Statistics. The greenhouse gas emission data presented
in the table is calculated using the location-based method. Under the market-based method, Scope 2 emissions would amount to 18,238.06 metric tons,
B2C customer satisfaction rate % 97.25% 97.7%
with an emission intensity of 0.0274 metric tons of CO2 equivalent per RMB 10,000 of revenue.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
Social Performance
Employment Equality and Diversity
Indicator Unit 2023 2024 Indicator Unit 2023 2024
Total number of employees persons 6,114 6,346 Incidents of employee discrimination/harassment cases 0 0
Number of new hires during the reporting period persons 1,247 2,368
Proportion of female employees in middle and
% 29% 31.25%
Number of newly recruited fresh graduates persons 68 146 senior management
Number of employees by gender
Male employees persons 3,482 3,734
Employee Training and Development
Female employees persons 2,632 2,612
Indicator Unit 2023 2024
Number of employees by age
Total investment in employee training1 million RMB 10.08 3.20
Employees aged 30 and under persons 1,586 1,810
Total training attendances attendances 34,356 35,762
Employees aged 31-50 persons 3,902 4,135
Employees aged 51 and above persons 626 401 Total training hours hours 171,780 223,874
Number of employees by hierarchical level
Average training hours per employee during the year hours 24.7 35.28
Senior management persons 135 135
Note 1: Total employee training expenditure in 2023 includes expenses for overseas study programs.
Middle management persons 306 313
Frontline employees persons 5,673 5,898
Occupational Health and Safety
Number of employees by educational level
Indicator Unit 2023 2024
Employees with bachelor's degree or above persons 2,081 2,501
Employee occupational disease incidence rate % 0% 0%
Employees with associate degree persons 1,559 1,612
Employees with degrees below associate level persons 2,474 2,233 Health and safety training coverage rate % 100% 100%
Number of employees by region
Employees from China (including Hong Kong,
persons 6,020 6,234
Macao, and Taiwan) Public Welfare
Number of overseas employees persons 94 112 Indicator Unit 2023 2024
Employee satisfaction rate % 83.6% 81.9% Total charitable contributions million RMB 42.87 1.47
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
About This Report Index Table
This report is the second sustainability report of Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (hereinafter referred
to as "Yuwell Medical"). It is prepared in accordance with the principles of objectivity, standardization, transparency, and
The Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen
comprehensiveness, and presents the Company's philosophy, management practices, and performance in the field of sustainable Stock Exchange — Sustainability Report (Trial)
development, while fully addressing key issues of concern to stakeholders.
Disclosure Requirements Corresponding Section in This Report
Addressing Climate Change Addressing Climate Change
Reporting Scope Reporting Principles Pollutant Emissions Strengthening Environmental Management, Reducing Environmental Impact
The report highlights the information and key performance This report adheres to the principles of materiality, quantification, Waste Disposal Strengthening Environmental Management, Reducing Environmental Impact
of Yuwell Medical and its subsidiaries in fulfilling governance, balance, and consistency.
social, and environmental responsibilities in 2024. Ecosystem and Biodiversity Protection Reducing Environmental Impact
Environmental Compliance Management Strengthening Environmental Management, Reducing Environmental Impact
Source of Information
Energy Utilization Addressing Climate Change
All the information and data used in the report are sourced
Water Resources Utilization Reducing Environmental Impact
Definition of Terms from the Company's official documents statistical reports, and
For ease of expression and reading, Jiangsu Yuyue Medical financial statements, as well as information on sustainable Circular Economy Reducing Environmental Impact
Equipment & Supply Co., Ltd. is referred to as "Yuwell Medical", development practices of each unit that have been gathered
Rural Revitalization Safeguarding Life and Health — Supporting Rural Revitalization
"the Company" or "we" in this report. and reviewed by the responsibility management department
of the Company. Unless otherwise specified, all monetary Social Contribution Safeguarding Life and Health
amounts mentioned in this report are measured in RMB.
Innovation-Driven Development Empowering Health Through Innovation
Technology Ethics Empowering Health Through Innovation — Technology Ethics
Timeframe Assurance of Accuracy Supply Chain Security Sustainable Supply Chain
This report covers the period from January 1, 2024, to December The Company assures that this report contains no false
Equal Treatment of Small and Medium-sized
Enterprises
and subsequent years. This report is an annual report. is accountable for the authenticity and accuracy of its content.
Product and Service Safety and Quality Commitment to Uphold Quality
Data Security and Customer Privacy Protection Information Security and Privacy Protection
Basis of Preparation Access to the Report
Employees Human Capital Development, Protection of Employee Rights
This report has been prepared with reference to the GRI This report is published in both print and PDF formats. The
Due Diligence Sustainable Development Management
Standards issued by the Global Sustainability Standards electronic version is available on the official website of Yuwell
Board (GSSB); the Self-Regulator y Guidelines No. 17 Medical (www.yuwell.com) and on CNINFO (www.cninfo.com. Stakeholder Communication Sustainable Development Management
for Companies Listed on Shenzhen Stock Exchange — cn). In our ongoing efforts to improve our reporting process,
Anti-commercial Bribery and Anti-corruption Adherence to Business Ethics
Sustainability Report (Trial) ; the Self-Regulatory Guidelines we value your feedback and suggestions. Should you have
No. 3 for Listed Companies on Shenzhen Stock Exchange — any questions or suggestions regarding this report, please Anti-unfair Competition Adherence to Business Ethics — Anti-Unfair Competition
Preparation of Sustainability Reports (Trial) ; the European contact us via email at yuwellzqb@yuyue.com.cn or by phone
Sustainability Reporting Standards (ESRS); the national at 0511-86900876. Voluntary Disclosure Issues Corresponding Section in This Report
standard Guidance on Social Responsibility Reporting Corporate governance Enhancing Corporate Governance
(GB/T 36001-2015); and the United Nations Sustainable
Development Goals (SDGs). Risk management Enhancing Corporate Governance
Digital operations Commitment to Uphold Quality
Health accessibility Access to Quality Healthcare
Industrial cooperation and development Empowering Health Through Innovation, Access to Quality Healthcare
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2024 Sustainability Report
GRI Content Index
This report has been prepared with reference to the GRI Standards by Yuwell Medical. The
Statement of Use
reporting period covers January 1, 2024, to December 31, 2024.
GRI Used GRI 1: Foundation 2021
Reporting Framework GRI 1: Foundation 2021
Message from the Chair 2-22/2-23
About Yuyue Medical 2-1/2-2/2-4/2-6/2-16/201-1
Sustainable Development Management 2-12/2-13/2-14/2-16/2-19/2-22/2-29/3-1/3-2/3-3
Steady and Long-Term Progress: Advancing Towards High-Quality Development
Enhancing Corporate Governance 2-9/2-10/2-12/2-15/2-27/405-1
Adherence to Business Ethics 2-27/3-2/205-1/205-2/205-3/206-1
Information Security and Privacy Protection 418-1
Sustainable Supply Chain 2-6/3-2/204/308-1/308-2/414-1/414-2
Innovation-Driven Development: Empowering Life Through Technology
Empowering Health Through Innovation 2-6/2-27/416-1
Commitment to Uphold Quality 2-6/2-25/2-27/3-2/416-1/416-2/417-1/417-2/417-3/418-1/419-1
Access to Quality Healthcare 2-23/2-27/203-1/203-2
People-Centered Approach: Safeguarding Lives and Empowering People
Human Capital Development 401-2/404-1/404-2/404-3
Protection of employee rights
Safeguarding Life and Health 3-2/203-1/203-2/413-1
Environmental Friendliness: Creating a Shared Green Future
Strengthening Environmental Management 3-2/2-27/307-1
Addressing Climate Change 201-2/302-1/302-3/302-4/302-5/305-1/305-2/305-4/305-5
Reducing Environmental Impact
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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