2023 Sustainability Report
CONTENTS
Message from the ChairmanAbout Yuwell MedicalSustainable DevelopmentManagement
Key Performance TableAbout This ReportIndex Table
09E?cient Governance:
Marching Towards a New Eraof High-Quality Development
Environmentally Friendly:
Accelerating Green and Low-Carbon Transition
Leading Through Innovation:
Energizing Life via Technology
Talent-oriented:
Achieving the Value of Life
Strengthening Corporate GovernanceAdherence to Business EthicsFull Supply Chain Coordinated ManagementSustainable Supply ChainInformation Security and Privacy Protection
Driving the Future through InnovationAdvancing in Smart HealthcareCommitment to Uphold Quality
Enhancing Environmental ManagementGreen Product DesignAddressing Climate ChangeReducing Environmental Impact
Growing Together with EmployeesSafeguarding Life and Health
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Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Message from the ChairmanThe passing of time brings constant renewal and progress.2023 holds significant importance for Yuwell Medical.The ongoing enhancements in living conditions and theincreasingly aging population have led to a swift rise inhealthcare needs and quality expectations. In an era ofaccelerated industry transformation, clear advancementsin green and smart technologies are being made. We havedeeply integrated the concept of ESG into our operationaldevelopment, significantly enhancing our R&D innovations,actively pushing forward digital and intelligent transformation,and consistently improving product accessibility. Thisyear, we have focused both on foundational growth andbreakthroughs, progressing simultaneously in qualityenhancement and e?ciency improvement.Yuwell Medical has upheld a strong sense of responsibilityand commitment throughout its development journey. ForYuwell Medical, ESG is not an optional task but an essentialrequirement for achieving high-quality growth on a global scale.Over the years, we have steadfastly held the vision of leadingindustry development through innovation and enhancingthe health of millions of families. Our commitment is focusedon health and driven by technology, constantly seeking newpathways and models in ESG development. This commitmentdrives our sustainable growth and fuels our e?orts to contributeto global healthcare initiatives. This inaugural sustainabilityreport released by Yuwell Medical is intended to communicateour profound contemplation and management practices onsustainability with the wider community. Our aim is to expressour genuine desire to work together in building, innovating, andsharing a sustainable future.Empowering healthcare through innovation. Following
the new strategy of "reshaping medical devices throughinnovation," Yuwell Medical puts innovation at the forefront ofits development. We consistently increase investment in R&Dand explore new areas and create new advantages throughtechnological innovation, delivering more valuable healthcaresolutions to society. In 2023, the company made significantstrides by capitalizing on its extensive global research anddevelopment network and numerous national-level andprovincial scientific platforms. We made breakthroughs incritical industry technologies and secured a series of patentsand standards that are at the forefront internationally andare protected by our own intellectual property. Additionally,we enhanced our product development lineup, making itmore robust and comprehensive, thereby increasing ourcompetitive edge against top-tier global products. In the realmof intelligent medical solutions, we created an open, enablingplatform and signi?cantly extended the reach of digital health
services through the "Yuwell Health Manager" platform amongothers. This initiative enabled us to further our cooperationwith multiple partners and made significant progress inconstructing a digital healthcare ecosystem, moving a stepcloser to completing the smart healthcare service loop. By theend of the reporting period, our digital health services hadcovered 200,000 Yuwell health products. Furthermore, YuwellMedical took the lead in drafting and ?ling theStandards forData Collection and Application of Home Medical Devices,significantly enhancing the security of data collection andapplication in home medical devices.
Leveraging digital intelligence for efficient operations.
Yuwell Medical prioritizes the critical relationship betweenmedical device safety and health. The Company activelyembraces technological advances and has developed adata-driven, multi-platform, deeply interactive intelligentmanufacturing ecosystem, incorporating digital technologiesinto comprehensive business chain management. TheYuwell Intelligent Manufacturing Factory is one of the fewnational-level intelligent manufacturing pilot companies inthe medical device field, and continually improves its leanpractices, business efficiency, and product quality throughautomation, informatization, and intelligence. In its ongoingupgrades, the factory has developed the capacity to handlecomplex processes and very high-quality demands, offeringmore competitive health products and services. By harnessingthe power of intelligent manufacturing and digitalization,Yuwell Medical has established an e?cient end-to-end qualitymanagement system for the entire product lifecycle, alongwith a comprehensive multi-channel customer service system,which have significantly enhanced customer satisfaction andproduct experience. In 2023, the ?rst-time inspection pass rateof these systems reached 99.73%, with customer satisfactionrates at the B2B and B2C fronts being 96.2% and 98.5%respectively. Additionally, the Company has been recognizedwith the Digital Service Management Innovation Award.Rooted in green, committed to environmental friendliness.Yuwell Medical incorporates the principles of green ecologyand sustainability into its operational activities, advocating forthe implementation of the EHS Management System acrossall business areas. Attentive to the challenges and prospectsthat climate change presents, the Company aims to minimizeits environmental impact while enhancing its competitiveness.In 2023, the Company aligned with the ISO 50001 EnergyManagement System standards to conduct comprehensive energymanagement, promoting the construction of a big data platformfor energy management. Through creating a unified systemthat combines data collection, process monitoring, and energy
management, we achieved holistic closed-loop managementfrom energy planning to statistics, analysis, and assessment.Moreover, continuous upgrades in equipment technology led toan increasing share of green electricity. The comprehensive energyconsumption per unit of product value, greenhouse gas emissions,and energy consumption per unit of output have been e?ectivelycontrolled, with the annual energy management goal being100% achieved. We also adopt green innovation principles in ourproduct development, striving for miniaturization, relentlesslypursuing compactness, lightweight structures, energy e?ciency,and green health-focused designs, committed to deliveringenvironmentally friendly, superior-quality products.
Driven by talent, moving forward with vitality. Yuwell
Medical focuses on a "consumer-oriented, digitalized, and youth-focused" talent development strategy. We have established theYuwell Learning and Development Center to create unique talentdevelopment programs with a product-driven approach. We alsocollaborate with external professional organizations, and invitetop industry experts to conduct exchanges and training sessions.Through a combination of training and practical learningsolutions and diverse learning formats, we consistently enhanceour talent competitiveness. The Company has also developeda compensation and benefits system that is both externallycompetitive and internally fair, ensuring employee health andwell-being. Events like YUWELL DAY promote cultural integrationand efficient collaboration, creating a diverse, equal, inclusive,and warm workplace. Employee satisfaction has consistentlyimproved, earning Yuwell Medical the titles of Best Employer ofthe Year, Outstanding Human Resources Management Award,and Best Talent-Nurturing Employer in 2023.Embracing responsibility and protecting health. With acommitment to "alleviating patient suffering and enhancingdoctors' medical skills," Yuwell Medical persistently explorescharitable models that resonate with current times andsocietal demands. In 2023, the Company invested 42.874million yuan in public welfare, supporting emergency medicalcare, diabetes care, and rural healthcare infrastructure. Weare actively engaged in emergency medical assistance. TheFlying Fish Rescue Team, alongside professional race securityorganizations, has provided free support for over a thousandglobal marathon events. The Yuwell Primedic rescue ecosystemextends across more than 100 countries, saving hundredsof lives annually. We actively collaborate with social media,hospitals, and charitable organizations to engage in managingchronic diseases. Since 2017, we have partnered with the LoveSave Pneumoconiosis charity organization to support farmerssuffering from pneumoconiosis. We also offer free clinics andsummer camps, establish the Yuwell Diabetic Community, and
Wu Qun,Chairman and General Manager of Jiangsu Yuyue
Medical Equipment & Supply Co., Ltd.
produce charitable short ?lms to bring more warmth and careto diabetics. For five consecutive years, we have supportedthe Jack Ma Rural Teachers Initiative with medical healthgift packs, and donated nearly 20,000 medical-grade oxygengenerators to rural healthcare institutions in central andwestern China. Moreover, our staff have ventured into high-altitude outposts over 5,000 meters above sea level multipletimes to deliver high-quality and reliable highland oxygenconcentrators to residents, aid workers, and stationed troopsin Xizang, all to protect life and health.Staying grounded and determined, we never forget our initialaspirations as we tirelessly strive forward. Yuwell Medical willcontinue to drive high-quality sustainable growth through itsconsistent focus on ESG. In partnership with key stakeholders,we maintain our ethical standards and push for innovation,confidently progressing towards a new era where economic,social, and environmental bene?ts are mutually realized.
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Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
About Yuwell Medical
Company Pro?leCorporate Culture
Total assets
Alleviating patient su?ering and enhancingdoctors' medical skills.
Mission and Responsibility
Focused on health, driven by technology
Brand Proposition
Leading industry development throughinnovation and enhancing the health ofmillions of families.
Core Vision and Objectives
Integrity as the foundation, customers asthe core, public spirit as the driving force,team as the source of pride, performanceas the proof.
Core Values
We are convinced that actively managingand foreseeing health issues is the optimalguarantee for the ongoing enhancementof the quality of life.
Philosophy
Mission-driven, eager to help, full of hope,scienti?c and rational.
Brand Personality
billion RMB
2019
7.966
2020
10.065
2021
11.998
2022
15.095
2023
15.967
Revenue
billion RMB
2019
4.636
2020
6.726
2021
6.894
2022
7.102
7.972
2023
Net pro?t attributable toshareholders of listed companiesbillion RMB
2019
0.753
2020
1.759
2021
1.482
2022
1.595
2.396
2023
Our business operations span over
countries and regions around the worldThe total annual revenue reached RMB
billion
7.972100
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (referred to as "Yuwell Medical," stock code 002223) specializes in the R&D,production, sales, and service of medical devices. As a leading comprehensive provider of medical devices and solutions inChina, Yuwell Medical is dedicated to o?ering high-quality, innovative medical products and services to patients and healthcareinstitutions worldwide.Yuwell Medical has always committed itself to the mission of "alleviating patient su?ering and enhancing doctors' medical skills,"with a consumer-centric focus on life and health care. Our products primarily span various ?elds, including respiratory treatmentsolutions, diabetes care solutions, infection control solutions, home-use electronic testing equipment, as well as in vitro diagnosticdevices, emergency medical devices, rehabilitation devices, and clinical instruments. With our eyes on the vast internationalmarket, the Company's key strategy is "reshaping medical devices through innovation," which is firmly backed by our strongresearch and development foundation along with our capacity for technological innovation. On the bedrock of steadily advancingour foundational businesses in blood pressure monitoring, thermometry, traditional Chinese medical devices, and surgicaltools, we especially emphasize expanding in the core areas of respiratory and oxygenation systems, blood glucose and POCT,and sterilization and infection control. Additionally, we're proactively incubating high-potential ?elds including emergency care,ophthalmology, and intelligent rehabilitation, constantly driving industry transformation and continuously contributing to the?ourishing of ever more lives.After years of development, Yuwell Medical has prioritized substantial investment in research and development for new productsand projects, sustaining a leading position in scienti?c innovation. The Company has established multiple R&D and manufacturingcenters in Germany, Shanghai, Nanjing, Suzhou, Danyang, Xizang, Shenzhen, etc. It also boasts several scientific and innovativeplatforms such as the national enterprise technology center, national industrial design center, and national postdoctoral scienti?cresearch workstation. Through this, the Company has established an extensive global network in R&D, manufacturing, marketing, andservices, with its products receiving widespread recognition. The Company also actively collaborates with medical institutions bothdomestically and internationally, working together to advance the development and progress of the healthcare industry. During thereporting period, the main business activities of the company remained consistent. Details regarding the Company's operational and?nancial performance can be found in theJiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Annual Report.
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Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Recognize and manage ESG risks and opportunitiesDetermine the significance of ESG issues and integrate them intobusiness considerationsOversee the implementation of ESG strategies
? Compliance operations? Product quality and safety? Business ethics and anti-corruption? Information security and privacy protectionmanagement
? Environmental management? Support for local development (including ruralrevitalization)
? Specialized meetings or reports? Feedback on policy consultation? O?cial visits? Compliance regulatory inspections? Active participation in governmentprograms? Compliance operations? Innovation and high-quality development? Business ethics and anti-corruption? Consistent and stable returns? Investor relations
? General meeting of shareholders? Financial reports and announcements? Investor hotline? Roadshow? Investor exchange meeting? Company visits? Media interaction? Product quality and safety? Innovation, low-carbon products and services? Customer service management? Business continuity? Information security and privacy protection
? Customer satisfaction survey? Professional customer service team? Exchange activities? User training? Media interaction? Compliance operations? Business ethics and anti-corruption? Responsible supply chain? Information security and privacy protection? Industrial cooperation and exchange
? Supply chain audits and training? Communication and exchange(high-level exchange visits, supplierconferences, industry conferences, etc.)? Open cooperation? Talent introduction and retention? Employee rights and bene?ts? Occupational health and safety? Employee training and development? Diversity and equal opportunities
? Employee activities and communication? Employee training? Performance evaluation and feedbackmechanism? Internal information communicationplatform? Employee grievance channels? Compliance operations? Product quality and safety? Innovation, low-carbon products and services? Green operations? Public welfare and charity? Support for local development (including ruralrevitalization)
? Media interaction? Inclusive products? Public welfare programs? Medical assistance services
Sustainable Development Management
Stakeholder Communication
Sustainable Development Management SystemAt Yuwell Medical, quality and sustainability are always at the forefront. The Company is committed to refining its systems forenvironmental, social, and corporate governance. It amplifies the Board's active supervision and engagement in ESG matters,taking ESG as a critical driving force to enhance compliance management, foster high-quality growth, and boost corporatecompetitiveness. The Board of Directors, as the governing body responsible for economic, environmental, and social issues,participates in and manages the potential impacts and risk assessments of ESG issues on the Company's operational framework.It supervises and ensures the effective implementation of ESG objectives, strategies, and plans, and guarantees the seamlessintegration of ESG strategies into various departments and key business processes. Please refer to the section "StrengtheningCorporate Governance / Board Diversity" in this report for information on the Board's expertise and capabilities in overseeingstrategies and systems related to ESG impacts, risks, and opportunities.The Company utilizes quantitative metrics to assess the e?cacy of its ESG management strategies and is gradually integratingthese ESG indicators into the evaluation criteria of its compensation system. During the reporting period, the Company organizedspecialized ESG training, covering topics such as ESG trends and requirements, key points for advancing ESG issues, and ESGinformation disclosure. This training is designed to improve employees' comprehension and awareness of our ESG initiatives,thereby better facilitating the implementation of ESG practices.
Yuwell Medical places great emphasis on the expectations and demands of its stakeholders, maintaining e?ective communicationwith them through a positive and open approach. The Company consistently re?nes its diverse and regular internal and externalcommunication strategies to actively address the concerns of all stakeholders.
The management team
The supervisory body
The executive team
Take full responsibility for supervising ESG issues and ensure their e?ciency
StakeholdersIssues of concernMain communication methods
Government &Regulatory Authorities
Shareholders &
Investors
Partners
Employees
Public andCommunity
Customers
Board ofDirectorsThe executivemanagement teamO?ce of the Board ofDirectors (coordinatingESG work)
ESG working group
Relevant functional and business departments and
subsidiary companiesDevelop dedicated ESG plans and carry outspeci?c ESG initiativesRegularly monitor and report ESG indicators
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Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
ESG Issue ManagementYuwell Medical attaches great importance to deeply integrating its long-term corporate development strategy with the conceptof sustainable development. The Company strictly follows a detailed process for analyzing material issues, which is groundedin international authoritative guidelines and regulatory disclosure instructions. We have drawn upon widely recognizedinternational ESG benchmarks, rating entities, and peer company ESG concerns to establish a roadmap for "issue identi?cation -importance assessment and ranking - issue con?rmation and reporting," leading to the creation of the Yuwell Medical 2023 ESGMaterial Issue Research Questionnaire. By adhering to the "double materiality" principle, we evaluate the signi?cance of thisyear's ESG issues based on their importance to both the Company's development and to our stakeholders. We identify key issuesof high materiality to prioritize in our report, and continually improve our ESG management to better meet the expectationsand demands of our stakeholders. As the top decision-making body responsible for managing economic, environmental, andsocial issues, the Board of Directors is in charge of assessing and overseeing the impacts, risks, and opportunities related tosustainable development. The relative importance of these issues is disclosed in the report after they have been reviewed andapproved by the Board.
Very important
Environmental
No.No.TopicTopic
Important
Social
Less important
Governance
The ESG issues checklist was developed based on an analysis of internal andexternal development trends, with a focus on issues of common concern tointernal and external stakeholders. The report framework includes referencesto sustainable development guidelines by stock exchanges, IFRS SustainabilityDisclosure Standards by ISSB, and standards set by the Global Reporting Initiative(GRI), among others. It also considers mainstream ESG rating systems, such asMSCI ESG Ratings, and sustainability issues of interest to peer companies.
We conduct issue research among key internal and external stakeholder groups,determining the priority of ESG issues based on the "double materiality" principle.
We review the screening and analysis outcomes to verify the significance ofissues with a high degree of impact. For these critical ESG issues, the reportfocuses on disclosing related management, practices, and performance.
Issue Identi?cation
MaterialityAssessment and
Prioritization
Issue Recognition
and Report
Generation
1Compliance operations2Business ethics and anti-corruption3Corporate governance4Board diversity5Digital operations6Information security and privacy protection7Addressing climate change8Water resource management9Emissions and waste management10Resource management and
circular economy11Biodiversity conservation12Low carbon products13Innovative smart healthcare
14Intellectual property protection15Product quality and safety16Customer relationship management17Access to healthcare18Responsible marketing19Employee rights and benefits (including
occupational health and safety)20Diversity and equal opportunities21Employee training and development22Sustainable supply chain23Industrial cooperation and development24Public welfare volunteer services25Serving regional development
(including rural revitalization)
Importance to stakeholdersHigh
LowHigh Signi?cance of impact to Yuwell Medical's business
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Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Marching Towards a New Era ofHigh-Quality Development
E?cient Governance:
Proportion of female directors
Anti-corruption training coverage for key positions
Information leakage incidents
44.4%
100%
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Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Audit CommitteeNomination CommitteeRemuneration andEvaluation CommitteeStrategy Committee
Strengthening Corporate Governance
Yuwell Medical strictly adheres to the requirements of theCompany Law of the People's Republic of China, the SecuritiesLaw of thePeople's Republic of China, the Corporate Governance Guidelines for Listed Companies, and other relevant laws, regulations, andguidelines, as well as the standards set forth in the Articles of Association. The Company has established a corporate governancestructure composed of the General Meeting of Shareholders, the Board of Directors, the Supervisory Board, and the seniormanagement team. This structure ensures the powers of the authorities, decision-making bodies, supervisory bodies, and executivebodies are clearly de?ned, coordinated, and balanced, thereby consistently enhancing the Company's governance level. In 2023, theCompany successfully completed the addition and revision of 10 management regulations. The General Meeting of Shareholders,the Board of Directors, the Supervisory Board, and the senior management team followed stringent standardized operational rulesand internal procedures for management decision-making and operational oversight. For detailed information on the Company'sgovernance, please refer to theJiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Annual Report.The General Meeting of Shareholders is the Company's authoritative body, legally vested with decision-making powers on majorissues such as corporate policy, investment, and pro?t distribution. The Board of Directors is accountable for the General Meeting ofShareholders and serves as the Company's operational decision-making core. The Board also comprises four specialized committees:
the Strategy Committee, Audit Committee, Nomination Committee, and Compensation and Evaluation Committee. These committeesdecide on specific matters within the scope authorized by the Board, and provide professional advice and recommendations forthe Board's decision-making. Independent directors constitute the majority and hold the chair positions in the Audit Committee,Nomination Committee, and Compensation and Evaluation Committee. The chairperson of the Audit Committee is an accountingprofessional. The Supervisory Board, as a supervisory body, is accountable to the General Meeting of Shareholders, and e?ectivelyoversees the Company's finances as well as the legality and compliance of the Company's directors and senior management inperforming their duties, so as to protect the legitimate rights and interests of the Company and its shareholders.To adhere to regulations such asMeasures for the Administration of Independent Directors of Listed Companies, the Company hasestablished theSpecialized Meeting System for Independent Directors. Additionally, we meticulously convene and hold shareholders'meetings in strict accordance with theRules for the Shareholders' Meetings of Listed Companies and the Company's Rules ofProcedure for Shareholders' Meetings, and hold meetings of the Board of Directors and the Supervisory Board in accordance withthe Rules of Procedure for the Board of Directors and the Rules of Procedure for the Supervisory Board.Furthermore, The Companystrictly adheres to the relevant provisions on voting matters and voting procedures, protecting the legitimate rights and interests ofthe Company and its shareholders. Throughout 2023, 3 shareholders' meetings were held, with 15 resolutions approved; 11 boardmeetings were held, with 40 resolutions approved; and 8 supervisory board meetings were held, with 15 resolutions approved.Furthermore, 7 Audit Committee meetings, 1 Strategy Committee meeting, 3 Remuneration and Evaluation Committee meetings, and3 Nomination Committee meetings were held throughout the year.
Board diversity is a crucial element in supporting the Company in achieving its strategicobjectives and sustainable growth. To ensure the scienti?c and e?ectiveness of Boarddecision-making, Yuwell Medical endeavors to encourage diversity within the Board interms of gender, culture, education, professional capabilities, and beyond. The Companycurrently has 9 members on the Board of Directors, including 4 female directors.Among them, 6 are non-independent directors, and 3 are independent directors. Boardmembers possess extensive expertise and practical experience across diverse fieldssuch as biotechnology, medical devices, risk management, financial accounting, law,and ?nance, re?ecting the Board's balance concerning gender, experience, background,and professional skills. The Audit Committee includes one independent director with aprofessional accounting background, along with several directors who have extensiveexperience in risk management, including the development of risk control systemsand risk management regulations, as well as handling and mitigating significant riskincidents. Their expertise e?ectively helps the Company identify risks, make sound riskdecisions, and counteract and resolve risks.
Standardized Governance
Board DiversityGeneral Meetingof Shareholders
The Management Team
Supervisory Board
Yuwell Medical strictly adheres to the requirements of theSecurities Law of the People's Republic of China, theMeasures for the
Administration of Information Disclosure by Listed Companies, theProvisions on the System for Registration and Management of Insiders
Who Have Access to Insider Information of Listed Companies,and other relevant laws, regulations, and normative documents, ensuring
that information disclosure is conducted in a truthful, accurate, comprehensive, and prompt manner. During 2023, the Company released
54 announcements regarding the General Meeting of Shareholders, Board of Directors, Supervisory Board meetings, routine reports, and
and signi?cant matters, guaranteeing equal access to information for all shareholders. During the reporting period, there were no false
records, misleading statements, signi?cant omissions or other improper disclosures in the Company's information disclosure. We also
keep a close eye on the public opinion environment and market trading conditions to e?ectively protect the legitimate rights and interests
of investors through fair information disclosure.
Yuwell Medical highly prioritizes investor relations management. In compliance with regulations such as theInvestor Relations
Management System, we standardize procedures for convening, conducting, discussing, and voting in shareholders' meetings. We
persistently enhance diverse investor communication channels and actively conduct investor relations management activities, e?ectively
promoting interaction and mutual trust between the Company and investors. The Company sincerely considers feedback and suggestions
from shareholders and potential investors, provides timely answers to their inquiries and fosters a positive interaction environment for
investors. We treat all shareholders equally. Small and medium shareholders can attend the General Meeting of Shareholders in person
or cast their votes online. For major issues that may a?ect the interests of these investors, the Company counts and discloses their votes
separately. The time and location of the general meetings are chosen to maximize shareholder attendance. We also utilize modern
information technology to increase shareholder participation in the meetings, ensuring that all investors, especially small and medium
shareholders, are informed and involved in signi?cant company decisions. We engage with investors through platforms like cninfo.com,
fully listening to the opinions and demands of small and medium shareholders and promptly responding to their concerns. We diligently
answer the investor hotline, achieving a 100% response rate on cninfo.com.
As we concentrate on our corporate progression, we steadfastly maintain an investor-centric approach. From the commencement of
our public listing, we've adhered to a steadfast and enduring cash dividend strategy, as stipulated by theArticles of Association, with the
goal of sharing the fruits of our development with our investors. The Board of Directors formulates a pro?t distribution plan based on the
Company's annual operating performance, which is then submitted to the shareholders' meeting for review, ensuring that the legal rights
of all shareholders, particularly those of small and medium investors, are fully protected. For detailed information on the protection of
shareholders' and creditors' rights, please refer to theJiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Annual Report.
Investor Rights Protection
Proportion of female directors
44.4%
Board of Directors
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Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
In 2023, Yuwell Medical revised its Independent Director Systemand theWorking Rules of the Nomination Committee of the Board ofDirectors.The nomination of Board members goes through a rigorous selection process. The Nomination Committee takes diversity intoaccount and thoroughly evaluates potential candidates on a range of professional criteria, including their educational qualifications,industry experience, specific competencies, professional knowledge, and work history, to uphold a properly diversified and balancedcomposition of the Board's capabilities, skills, experiences, gender, age, and cultural and educational backgrounds. The Company also givessigni?cant importance to the personal reputation of Board members in terms of ethical behavior and leadership. After the nomination ofthe independent director candidates is approved, it must be submitted to the Shenzhen Stock Exchange for review of quali?cations andindependence. Following approval, the General Meeting of Shareholders will proceed with elections using a cumulative voting method,which aims to consistently improve the level of corporate governance and decision-making skills.The Company promotes the involvement of its Board members in various professional skill enhancement and compliance trainingprograms, effectively boosting their awareness of compliance and ability to fulfill their duties. During the reporting period, the Boardmembers participated in specialized training focused on corporate governance and reforms to the Independent Director System. Theyengaged in thorough learning sessions covering interpretations of reforms to the Independent Director System for Listed Companies,regulatory requirements for information disclosure, and relevant case studies.
A robust internal control and risk management system ensures sound corporate governance. During the reporting period, YuwellMedical strictly observed the Company Law of the People's Republic of China,theAudit Law of the People's Republic of China,theBasic Norms for the Internal Control of Enterprises, and their supplementary guidelines, as well as the relevant internal controlregulatory requirements of the China Securities Regulatory Commission (CSRC) and the Shenzhen Stock Exchange (SZSE). Takinginto account the reality of the Company and the characteristics of the medical device industry, we have consistently promotedthe development, evaluation and supervision of our internal control system, and ensured its effective operation to facilitatethe Company's sustainable and sound operation. We have also put in place a holistic internal control and necessary internalsupervision mechanism across our corporate governance structure and business operations.Working Rules of the NominationCommittee of the Board of Directors
Risk Management and Internal Control
The Board of Directors and its Audit Committee are collectively responsible for the overall management and supervision of a widerange of risks. The Audit Committee is responsible for supervising and evaluating the operation and implementation of the internalaudit system and the internal control system to secure e?ective risk management, and keeping abreast of the work progress ofsuch external audit organizations as accounting firms and national audit authorities. The Board of Directors authorizes othercommittees to work on speci?c tasks of risk management in their respective areas of expertise. As a risk supervision departmentindependent of other business functions, the Audit Department of the Company is responsible for conducting day-to-daysupervision on an ongoing basis and securing e?ective risk control through the audit mechanism. Where necessary, an externalthird party will be engaged to perform an independent audit.
Risk Management Structure
Yuwell Medical constantly strengthens the identi?cation of and response to risks and strictly standardizes its business managementprocesses, in order to enable a standardized whole-process management and control of risk assessment, control con?rmation,defect recti?cation and implementation in its global core business sectors. We are also committed to promptly identifying andevaluating the sources of risks associated with the Company's operations, while improving and supervising matters closely relatedto the Company's operations, such as investment risks, business risks, operational risks, and sustainability-related risks. Theseclosed-loop management efforts improve the Company's risk prevention and control capabilities. Meanwhile, the Companyincorporates material ESG risks and opportunities into its risk review and business planning process, and takes them into fullconsideration in its operational and ?nancial planning. This helps the Company better manage or mitigate risks and locate growthand restructuring opportunities.
Risk Identi?cation and Response
Yuwell Medical is keen to foster a culture of risk management. By o?ering risk-related training and advocacy, we aim to enhanceemployees' awareness of internal control risks and strengthen their internal control management capabilities. This will ultimatelyshape a risk-prevention pattern engaging the entire workforce and help constantly improve its standardized operation level.Moreover, the Company expressly requires all its departments to keep abreast of new regulations and policies, before initiatingrelevant researches in a timely manner. Where necessary, external specialists will be engaged to deliver in-depth brie?ngs andtraining, so as to minimize the potential risks to a tolerable level.
Risk Training
Adherence to Business Ethics
Committed to the core value of "integrity as the foundation," Yuwell Medical strictly complieswith theCompany Law of the People's Republic of China, theAnti-unfair Competition Law ofthe People's Republic of China, theAnti-monopoly Law of the People's Republic of China, theAnti-money Laundering Law of the People's Republic of China, and other laws, regulationsand industry practices. Based on this, we have put in place and consistently improved ourbusiness ethics and anti-corruption management system, and enhanced compliance andbusiness ethics training and cultural development, while standing against any form of fraud,commercial bribery, and similar misconduct. During the reporting period, no major litigationcases involving corruption or unfair competition were ?led against Yuwell Medical.
Strengthening theDefense Line ofBusiness Ethics
Signing rate of Anti-commercial BriberyStatement by suppliers, regular distributorsand partners of the parent company ofYuwell Medical100%
Anti-corruption trainingcoverage for key positions
100%
Anti-corruption traininghours per employee
hours
TypeNameGender
Professional CapacityIndustryExperience
Riskmanagement
Financialaccounting
LawChairman, GeneralManager
Wu QunMaleDirector, DeputyGeneral Manager
Zhao ShuaiMaleDirectorWang LihuaFemaleDirector, DeputyGeneral Manager
ZhengHongzhe
MaleDirector
ChenJianjun
MaleDirector, BoardSecretary
Wang RuijieFemaleIndependent DirectorYu ChunFemaleIndependent DirectorWan SuirenMaleIndependent Director
ZhongMingxia
Female
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Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Under the framework of business ethics management systems, the Supervisory Committee and the Audit Department occasionallyconduct audits and inspections of the implementation of systems and business ethics risks in various business scenarios, andregularly communicate the audit results, material audit findings, and matters of concern to the Audit Committee of the Boardand the Chairman directly. The Supervisory Committee and the Audit Department maintain independence at the organizational,operational, and individual levels. In addition, the Company conducts an annual review of the e?ectiveness and compliance of theoperation of the internal control system and actively manages potential business ethics risks in the course of operations.The Supervisory Committee and the Audit Department constantly conduct relevant special audits based on the reality, theCompany's control requirements and the audit plan formulated by the department, so as to enhance the risk control of corebusiness scenarios. At the same time, we have formulated a continuous improvement scheme based on the audit results to ensurethe e?ective operation of the Company's business ethics and anti-corruption policy and compliance system. Additionally, we havesigned anti-corruption agreements with our business partners and set up external whistleblowing channels to identify and preventethical business risks in the business process.
Business Ethics Audit
Yuwell Medical endeavors to foster a clean culture. We have put in place a compliance and business ethics training system for all ouremployees, including but not limited to compliance training for new recruits, integrity and compliance training for functional employees,and promotion of the Code of Conduct for suppliers. These e?orts are aimed at persistently enhancing the awareness of compliance andanti-corruption among all our employees, thereby preventing incidents of corruption, fraud, and other regulatory violations.
Business Ethics Training
During the reporting period, Yuwell Medical delivered Training coverage of sensitive and
important positionsspecial training sessions on compliance and
In December 2023, Yuwell Medical's Domestic Marketing Center Division launched the "Clean Environment Campaign," designedto enhance the integrity and anti-corruption awareness of marketing sta?. The campaign reinforced the compliance requirementsfor business interactions between marketing employees and distributors, clari?ed the Company's guidelines on monetary-relatedeconomic activities, and highlighted national legal provisions related to crimes like embezzlement and bribery by non-public o?cials,including sharing relevant case studies. The initiative aimed to strengthen business compliance between the Company's marketingemployees and distributors, as well as compliance and legality of the marketing employees' sales behaviors in an all-around way.
Domestic Marketing Center Division Conducts "Clean Environment Campaign"Case
Yuwell Medical constantly promotes compliance and business ethics management among its partners to collectively build a clean andtransparent supply chain. Before entering into an o?cial partnership, we require all suppliers to sign anAnti-commercial Bribery Statement
and related confidentiality agreements. This policy covers 100% of our key suppliers, including our headquarters suppliers, regulardistributors, and logistics partners. We also require our suppliers to comply with national and local laws and regulations, policies andindustry standards, and not to commit or tolerate any form of corruption, fraud, extortion or embezzlement, ensuring a fair, transparentand clean environment for cooperation. We maintain a zero-tolerance policy for commercial bribery and will immediately dismiss andpermanently bar any employee who violates the relevant regulations. For partners who violate the relevant provisions, we will immediatelyterminate the partnership and pay liquidated damages upon veri?cation. These e?orts have comprehensively strengthened the supervisionand control of business ethics in the process of cooperation between the Company's relevant departments and suppliers.After giving reasonable notice, the Company requests suppliers to cooperate in conducting on-site or unannounced reviews to ensureongoing monitoring of supply chain compliance and business ethics risks. If any misconduct or violation is found during the review process,we will immediately terminate the cooperation and take strict disciplinary action against the in-house employees. In 2023, the Companyconducted reviews on business ethics and anti-corruption for 52 suppliers, and delivered a briefing on theAnti-commercial BriberyStatement and whistleblowing channels.
Supply Chain Integrity Management
With a zero-tolerance attitude towards corruption and other behaviors that violate business ethics, Yuwell Medical has formulatedtheYuwell Medical Management System for Whistleblowing, set up various whistleblowing channels, and encouraged the Company'semployees, suppliers, distributors, and other stakeholders to whistleblow openly or anonymously via mail, hotlines, and other methods.We aim to engage all employees, suppliers and partners in a system of supervision of integrity and honesty in the performance of ourduties, so as to promptly and e?ectively address any existing or potential violations of the Company's code of ethics, policies, and laws.As a dedicated department for handling complaints, the Supervisory Committee reports directly to the Chairman of the Board, ensuringthe independence and objectivity of its work in handling and supervising complaints. In the event that the existence of corruption isdetermined, strict and appropriate measures will be taken in accordance with the severity of the situation. Yuwell Medical promisesto keep the personal information of the whistleblower and the provided information strictly con?dential, with a dedicated employeehandling the clues and documents and managing them strictly based on their classi?cation level. The Company has explicitly stated thatthe personal information of the whistleblower and details about the handling of the complaint must not be disclosed to the accused orto individuals unrelated to the complaint process. While keeping the con?dentiality of the whistleblower's information, the Company isserious about cracking down on any retaliation and will take serious action upon substantiation. In response to any serious threat to therights and interests of whistleblowers, we will promptly notify the judicial authorities and seek legal action against o?enders.
Standardizing Whistleblowing Management
025-85582701 jubao@yuyue.com.cn
Mailing address for whistleblowingHotline for whistleblowingE-mail for whistleblowing
Supervision Department, Yuwell Science and TechnologyCenter, No. 1 East Huanyuan Road, Xuzhuang SoftwarePark, Xuanwu District, Nanjing City, Jiangsu ProvinceChannels forWhistleblowingand Complaints
Yuwell Medical has established an effective business ethics and compliance management framework globally. Within thisframework, the Board of Directors is the supreme decision-making body for business ethics and anti-corruption management,while the Audit Committee and the Supervisory Committee under the Board of Directors serve as supervisory organizations incharge of overseeing and regulating the implementation of the business ethics management systems and the ful?llment of duties,supporting the high-quality development of the Company. As a primary independent department of the Company, the SupervisoryCommittee is responsible for formulating systems related to business ethics and anti-corruption, reviewing major compliance andbusiness ethics matters of the Company, and conducting supervision e?orts from time to time. The Supervisory Committee is alsoin charge of evaluating compliance and business ethics risks, investigating corporate corruption incidents, and reporting directlyto the Chairman. Additionally, it actively responds to the latest national and industry policies on compliance and business ethics,enhancing its oversight capabilities in these domains.Yuwell Medical has formulated and consistently improved its business ethics management systems applicable to all its operationsand functions. These include theCode of Conduct for Integrity in Business Practices, Yuwell Medical Statement on Anti-commercial Bribery, Yuwell Medical Declaration Management System for Employee Con?icts of Interests, Yuwell Medical SurrenderManagement System for Gifts and Cash as Giving, andYuwell Medical Management Measures for Supervision. In doing so,requirements on anti-fraud, anti-money laundering, anti-corruption, anti-bribery, fair competition, anti-monopoly, and anti-con?ictof interest are applied to the Company's directors, all its employees (including part-time employees), as well as to its headquarters'supply chains and distributors. These standards are also progressively extended to suppliers, distributors, and other customers ofour subsidiaries, thereby comprehensively strengthening the defense line of business ethics across all areas.
Business Ethics Management
100%
business ethics.
1817
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Full Supply ChainCoordinatedManagement
Customer-centric whole-chain coordinatedmanagement is the core strategy of YuwellMedical's operations. Under this strategy, weemploy a customer-oriented approach to integratecustomer needs into the entire business chain fromproduct design, R&D, production, and sales to after-sales service. Backed by a well-organized processmechanism and compatible management system,performance indicators, incentive packages, andteam building, we exercise stringent productquality and risk management throughout the fullproduct lifecycle. In doing so, we aim to deliverhigh-quality products that are satisfactory to ourcustomers, enhance our market competitiveness,and lay a solid foundation for the sustainabledevelopment of the Company in the long run.Empowered by automation, digitalizationand intelligent technologies, the intelligentmanufacturing system of Yuwell Medical appliesto all processes from demand planning, R&Dand design, raw material sourcing, productionexecution, warehousing management, logisticsand shipping, as well as after-sales service. Drivenby a system enhancement system and digitization,we have efficiently connected the front and backends of our production lines and integrated andoptimized the resource allocation of each link. Thisenables us to put ourselves in the shoes of usersto address their fundamental needs for products,and conduct R&D and design geared to a fulllifecycle. Based on these, we constantly improvethe level of chain-wide synergistic managementand lean management to make it possible forinterconnectivity and flexible adjustment, sothat the Company can deliver more competitiveproducts and services.
Business ChainCoordinated Management
Utilizing the cross-departmental integrated product developmentsystem (IPD process), we have created a complete end-to-enddesign process. In the early stage of product development, weconduct user demand research and pain point analysis, whilethe user research team conducts o?ine qualitative research andonline quantitative research on real users, delivering the research?ndings back to the design team. During the functional prototypestage, usability testing is conducted to verify whether the demandpoints and pain points identified earlier have been resolved inthe new design. We then propose improvements for the existingproblems, forming a closed loop of product design optimization.We implement a market-centered design strategy that incorporatesall factors of the sales chain into the design process. By fullyconsidering the cost constraints of different product tiers, weensure an optimal balance in the selection of materials, processes,and components. This approach guarantees a superior userexperience while continuously enhancing product competitivenessacross the entire value chain.
We bring in productlifecycle managementtoolkit (PLM system)to further optimizeand localize R&D work.We also strengthenthe e?ectiveness ofcooperation betweenR&D and other functionaldepartments to improvethe reliability andpredictability of R&Dprojects. The market- andcustomer-oriented businessplanning, product planningand other activities enableR&D to be conducted ina manner that aligns asclosely as possible with theneeds of users. For moreinformation, please referto the section "Innovationand R&D System" in thechapter "Leading withInnovation: Energizing Lifevia Technology."
In line with client demandand manufacturingrealities, we haveimplemented centralizedprocurement and supplychain management toensure the quality andstability of raw materialsupplies, providing astrong guarantee for theproduction process.We have upgradedinventory managementtechnology and set upan intelligent warehousemanagement system(WMS) to enable real-timeinventory tracking andpredictive analysis. Sucha dynamic managementmechanism ensures thatthe inventory level meetsthe demand withoutcausing excessiveinventories.
We have built aproduction andmarketing synergyplatform to achieveinterconnectivityamong full chainsincluding sales,planning, production,and supply chains. Wealso follow up on thecustomer's demand inreal-time and build anintelligent productionworkshop.
We collocate salesinformation in real-time to enable accessto the stream ofsales data of Yuwellproducts, forming adata channel fromproduction to users.
We have established across-departmental andfully coordinated userexperience optimizationmechanism. Focusingon the dimensions ofuser experience likeproduct experience,logistics experience, andmarketing experience, weregularly collect varioustypes of user feedbackand routinely generateproduct experiencefeedback reports for eachcategory. We also facilitatecollaboration amongthe R&D, product, andmarketing departments toimprove user experience.
Customer-centric Business ChainCoordinated Management System
Full Lifecycle Coordinated Management
Digital and intelligent production and marketing system
Customer needs
Customer satisfaction
IPD development processPLM R&D management platform
Design and R&DProcurementProductionSalesAfter-sales
Production & Sales Synergy Platform, APS Planning & Execution Platform, Intelligent WMS (WarehouseManagement System), Cloud Platform & Distribution System "One Product, One Code" Platform, "02P&SG"Platform, Big Data Platform, ERP (Enterprise Resource Planning) Management System
DesignR&DProcurementProductionSalesAfter-sales
Full lifecycle quality managementCustomer complaints and feedback
2019
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Yuwell Medical is rapidly advancing a comprehensive digital strategy that is structured, forward-thinking, and interconnected. Wehave developed an omni-process digital application platform and an e?cient and ?exible digital technology support system, sothat digital technologies can be applied to the full business chain synergistic management. We also make use of digitally intelligentaids to constantly improve the service and management of health products, fully stimulate the integration of the digital economyand industry, and vigorously push forward the change of digital operation.
Digital and Intelligent Transformation
Yuwell Intelligent Manufacturing Factory was recognized as the national
"Intelligent Manufacturing Pilot and Demonstration Factory"in 2021. It is one of the few national intelligent manufacturing pilotenterprises within the medical device industry.
Yuwell Medical won 1 Masterpiece Award and1 Bronze Award at the Design Intelligence
IT (Information Technology)DT (Digital Transformation)BT (Business Transformation)
Formed based on the intelligent processing units, production lines, and intelligent testing equipment in the physical workshop,Yuwell Intelligent Manufacturing Factory exchanges data with the virtual workshop through sensors, industrial buses, industrialEthernet, and other means of linkage. Each type of production line and system in the virtual workshop is equipped with appropriatecontrol and monitoring equipment, enabling end-to-end, intelligent, closed-loop quality management and traceability. This allowsproduct manufacturing to be driven by comprehensive three-dimensional digital design and manufacturing information flow.Yuwell Intelligent Manufacturing Factory consists of six types of ?exible production lines, machining and SMT lines, and workshopintelligent three-dimensional warehouses, enabling mixed-line production of multiple varieties, self-diagnosis of faults, alarms forproduction anomalies, and online data acquisition. In this way, the factory has created a new intelligent and ?exible productionmodel that meets the ?exible production needs of various models and speci?cations across di?erent scenarios.
Yuwell Intelligent Manufacturing FactoryCase
Robot-driven Flexible Intelligent Manufacturing Integration System at Machine Processing WorkshopThe advanced computer control system, new sensor technology, and intelligent component integration technology have enabledautomated loading, processing, and molding of raw materials as well as unloading and warehousing of finished products.Interfaced with the Company's production management software, it allows for real-time coordination and feedback on productionscheduling and planning, which greatly improves production e?ciency and equipment utilization rate.
Human-robot Collaboration-driven Flexible IntelligentProduction Line at Product Assembly WorkshopIt mainly consists of multi-model sensors, human-robot collaborativerobots, flexible chain conveyor lines and an auto control system.As a flexible and intelligent operation mode, this system allows allequipment to communicate with the control system of the upperproduction line, thereby significantly improving the productione?ciency and product quality.
Intelligent WMSThe intelligent WMS employs advanced PLC-integratedmodular auto control technology and is closely integratedwith the ?exible processing and assembly production lines,which enables the fully automated handling of raw materialreception, storage, transportation, processing, operations,and the storage, delivery, production and shipment of?nished products.
Our IT strategy enables onlinebusiness operations, basicstatistics and aggregation,error-free data transmission,partially online management,and after-action tracking andfeedback.
Through the DT strategy, weconsistently collect real dataand enhance the process,display and analyze businessissues and make preliminarywarnings, helping increase theproportion of self-dependentresearch platforms.
Supported by our self-dependentR&D platforms across the board,we are able to bridge the dataflow between systems, forecastand analyze algorithmic models,and perform operations anditerations on a regular basis.
2221
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
on-site audits (including new supplier evaluations).During the reporting period, Yuwell Medical conducted a total of
Yuwell Medical constantly develops and introduces high-quality suppliers. We have established multi-dimensional standards forsupplier admission, investigating and screening suppliers based on their supply delivery abilities, ?nancial risk capacity, qualityassurance, and R&D technical skills. We have also established a cross-departmental collaboration mechanism to conduct acomprehensive evaluation of supplier admissions, e?ectively incorporating core elements such as ?nancial health, quality systems,and environmental safety into the supplier evaluation system, which ensures that sustainability requirements are integrated intothe daily management of our supply chain.
Survey Elements for Supplier Selection and Admission
Yuwell Medical applies categorized and tiered management of suppliers. Depending on the products and services provided byour suppliers, we categorize them into material suppliers, storage and transportation suppliers, IT service providers, etc. Basedon this, we have formulated separate management requirements and standards, and de?ned standard working procedures forsupplier selection, auditing, and signing of theProcurement Framework Agreement. Following these categorization and tieringprinciples, we have established a strict annual audit plan for all admitted suppliers, according to which we perform quali?cationreviews and on-site audits every year, and issue and distribute theSupplier Evaluation Form. We undertake regular monitoringand all-round review and appraisal for suppliers in terms of their quali?cation, ful?llment, product quality management, socialand environmental impacts, and so on. According to the audit results, we give feedback on the problems to suppliers in atimely manner, guide and supervise the suppliers to make corrections in response to the problem lists, and assist them to makeimprovements. To do so, we aim to ensure that suppliers operate their business in a safe and compliant manner.
Suppliers are categorized intoA, B and C tiers based on therole of their materials in the?nal product, the complexityof their integration into theproduction process, theirimpact on product qualityand safety, and the testresults of audit samples..
Supplier Selection and Admission
Supplier Evaluation & Audit
Yuwell Medical has set up a supplier exit mechanism at each stage of the supplier management process to strictly regulate theperformance of suppliers. After the selection and admission process, we conduct trial-production evaluations of the materialsprovided by the new suppliers, and eliminate those suppliers who fail in trial-production three times. At the annual audit stage,suppliers of category B are required to make improvements within a speci?ed time frame. Those suppliers who remain unquali?edafter the re-audit will be disquali?ed. For suppliers of category C, immediate disquali?cation will be imposed on them. During thequarterly performance evaluations, suppliers who receive a C rating three consecutive times are stripped of their supplier status.
Supplier Exit Mechanism
Sustainable Supply Chain
A high-quality, resilient and sustainable supply chain is crucial to the sound development of the Company. Yuwell Medical strictlyabides by theBidding Law of the People's Republic of China, Regulation on the Implementation of the Bidding Law of the People'sRepublic of China,and other relevant Chinese laws and regulations. Based on these laws and legislations, we have developedinternal management systems and processes such asSupplier Management Control Procedures, so as to constantly improvethe management of the full lifecycle of suppliers and thoroughly regulate the whole process involving supplier selection andadmission, evaluation and audit, and exit. This enables a fair, just, and transparent procurement environment within the supplychain. Moreover, we have sustained e?orts to optimize our supplier resources, with a view to building a high-quality and resilientsupply chain.
Supplier Full Lifecycle Management
Occupational health & safety, information security protection, environmental protection,procurement & suppliers, delivery management, warehouse & transportation management
Supply Delivery Abilities
Asset quality indicators, pro?tability indicators, internal control managementFinancial Risk Capability
Quality management system, manpower training, equipment management, quality
management, supplier management, warehouse managementQuality Assurance
Capability
Technological reserve, R&D design, new product introduction, engineering managementR&D Technical Skills
Material SupplierAudit Requirements
Conduct quarterly supplier performance evaluations and audits to examine thequality of goods they provide. Suppliers that underperform must undertake rootcause analysis and corrective and preventive measures.Develop a supplier audit plan each year to perform system evaluations on rawmaterial suppliers from the Quali?ed Supplier Directory, assigning them to A, B,or C grades based on the assessment.Suppliers of category A are subject to a system audit every ?ve years. Accordingto the annual audit plan, suppliers of categories B and C will receive a SupplierReview Form for self-review and written evaluation, with on-site auditsconducted when necessary.
Number of suppliers withoccupational health and safetymanagement system certi?cation72166
Number of suppliers withenvironmental managementsystem certi?cationNumber of suppliers withquality management systemcerti?cation
2423
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Yuwell Medical has incorporated sustainability requirements into its supply chain management system. The Company not onlyfocuses on the quality of products and services, but also on the performance of suppliers in labor management, occupationalhealth and safety, integrity and compliance, environmental protection, etc. and issues theSupplier Social Responsibility AuditReportupon audit. Every year, we comprehensively identify, carefully assess, closely monitor and e?ectively control the risks thatmay arise in the supply chain, including ESG risks. With quality risk as the focal point of management, we constantly improvethe ESG management system and strictly control the procurement process and the full lifecycle of suppliers, so as to build acompetitive, resilient, and sustainable supply chain.
Supply Chain Risk Control
Yuwell Medical has established the Supplier Management Control Procedureand other internal management systems, specifyingquality management requirements for each phase of the entire supply chain lifecycle, thus comprehensively enhancing processquality control. Suppliers must possess professional quali?cations for the services or products they provide, maintain a robust qualitymanagement system in compliance with current laws and regulations, and are required to sign aQuality Agreement.During the supplier admission process, the Company conducts quality management system audits of suppliers that match the rawmaterial development needs, and only those who meet the scoring criteria are included in theQualified Supplier Directory. Weperform quarterly performance evaluations and annual audits on suppliers to verify if they meet the product quality requirements,removing those who do not. During the introduction of new raw materials, we track the trial production process to fully control thequality of new materials. When supplier product quality issues are identi?ed during incoming QC and production, we issue aCAPAReportto the suppliers according to theCAPA Procedure Document. For suppliers willing to improve, we visit their sites and, based ontheir actual situation and improvement needs, assist them in developing targeted improvement plans. Through establishing qualitymanagement systems, enhancing production process control, and optimizing documents and processes, we ultimately achievemutual progress and growth.
Supply Chain Quality Risk Control
Risk TypeCountermeasures
Quality Risk
We clarify quality-related requirements in theSourcing Framework Agreementand theFreightTransportation Services Contract,and establish a quality information-sharing mechanism withsuppliers. To do so, we aim to ensure that both parties can access and share timely informationon product quality, delivery progress and other aspects. We conduct regular, relevant auditsand reviews of our suppliers and initiate quality training, technical cooperation and exchangeswhen necessary, in order to strictly control the quality risks at each stage of the process.Compliance &
Ethics Risk
We require all suppliers to sign theSupplier Anti-commercial Bribery Statement, intensifypublicity and training, and carry out due diligence and audits on partners depending onthe cooperation projects if necessary. For details on supply chain business ethics and anti-corruption management, please refer to the section "Adherence to Business Ethics" in thechapter "E?cient Governance: Marching Towards a New Era of High-Quality Development."Environmental RiskIn accordance with the requirements of BSCI and local government departments, we conduct
social responsibility audits on suppliers and issue theSupplier Social Responsibility AuditReport, which includes various audit areas such as child labor, forced labor, occupationalhealth and safety, freedom of association and collective bargaining, anti-discrimination,and environmental protection issues. Suppliers who have obtained relevant environmentalmanagement and occupational health and safety certifications are given weightedconsideration during admission and evaluation processes, which motivates them to strengthentheir social responsibility management.
Health & Safety Risk
Risk
Product Quality Control
Incoming Material
Inspection DataAccording to the requirementsof drawings and technicalspeci?cations, the QualityDepartment of the Company carriesout inspections on the appearance,size and performance of newmaterials. For the new materials,the Quality Department of theCompany requires the suppliersto furnish quality assurancecerti?cates, shipment inspectionreports, type test reports, etc., andwarehouse them in the SAP systemafter they are quali?ed.We collect and analyze the data onthe suppliers' incoming materialinspections and tests every month,which includes the numberof received batches, returnedbatches, the QC pass rate, and thecauses of defects. This processaims to facilitate the traceabilityof material information and thesmooth progress of the suppliers'continuous improvement e?orts.
Finished Product First-
Time Pass Rate
In accordance with the productinspection documents and thetechnical speci?cations of theproduct, we carry out ?nishedproduct testing and safety testingto ensure that the releasedproducts comply with the technicalspeci?cations, market regulatoryrequirements and legal andregulatory provisions. We alsoformulate a product review plan,carry out sampling and testingof the ?nished products from theperspectives of the customer'suse end and market regulation,and conduct special tracking andcorrection for the problems foundby sampling and testing.
Handling of Process Quality
Issue Management
The SQE tracks and addresses thequality problems of suppliers foundin the production process andissues CAPA reports to monitor theprogress of quality improvements.For suppliers with frequent ormajor quality problems, the SQEengages in and follows up on thedevelopment of special qualityimprovement programs.
In addition, we have implemented a supplier audit procedure. Each year, we formulate a supplier audit plan and conduct thoroughaudits covering aspects such as quality management systems, product design and development, material and supplier management,manufacturing process management, change management, non-conformity control, improvement and after-sales, as well ashazardous substance management. We ensure product quality and safety through closed-loop management that includes supplieraudits, incoming inspections, performance evaluations, and continuous improvement. The Quality Department and other relevantdepartments review and analyze the supplier quality audits and evaluations, implement corrective actions and secondary acceptancefor issues identi?ed during audits, and provide quality training, targeted guidance, technical cooperation, and support to suppliersas necessary. We work together to promote quality improvement and ensure suppliers take measures to resolve issues within areasonable timeframe to meet company standards. In 2023, no suppliers were found to have any signi?cant quality issues.
Environmental RiskHealth & Safety RiskLabor Rights Risk
2625
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Utilizing advanced supply chain management systems and digitalization, we achieve real-time tracking and oversight of the supplychain, ensuring transparency across all segments, especially for high and medium-risk materials that require targeted tracking.Through data analysis and forecasting, we promptly identify and address potential issues, reducing the risk of supply chaindisruptions. Additionally, the Company has upgraded its inventory management technologies, such as real-time inventory trackingand predictive analysis, to maintain inventory levels that meet demand without causing excessive stockpiling, thereby minimizingunnecessary inventory costs and ensuring the ample supply of key materials.
Digital Supply Chain Management
To ensure the security of the supply system, Yuwell Medical has broadened its supplier network, established secondary supplyresources, and implemented a supplier rotation mechanism. This strategy reduces reliance on any single supplier or region, therebymitigating the risks associated with exclusive supply arrangements. For key bulk materials in categories A and B, there are nofewer than two backup suppliers, and for other material categories, at least one backup supplier is available. We prioritize strategiccollaboration and maintenance with suppliers of monopoly and bottleneck materials and are dedicated to developing alternatives forsecondary resources. Should the main supplier be unable to supply materials due to special circumstances, a standby supplier canimmediately step in, reducing the risk of single-source supply and ensuring the stability of raw material availability.
Diversi?ed Supply Strategy
We have established a comprehensive risk assessment mechanism that formulates contingency plans and backup strategiestailored to the severity levels in production activities and the likelihood of supply delays. This includes arrangements for alternativesuppliers, transportation routes, and inventory strategies to ensure rapid response and recovery in emergency situations.
Strengthening Emergency Response Management
Yuwell Medical strengthens strategic cooperation with reputable key material suppliersto establish long-term, stable relationships, jointly responding to market changesand risk challenges. By optimizing transportation routes, selecting appropriatetransportation methods, and forming lasting partnerships with logistics suppliers, YuwellMedical e?ectively ensures the safety and stability of its supply chain. We actively engagewith suppliers, o?ering training and focusing on developing small and medium-sizedsuppliers. We support suppliers facing temporary challenges without compromising theCompany's interests, helping to enhance their production capabilities and the qualityof their supplies, thereby boosting the overall competitiveness of the supply chain. Wemaintain multi-dimensional dialogue and exchanges with suppliers, keeping abreast ofproduction demands, product quality, and policy interpretations, and fostering mutualgrowth with an open and collaborative mindset.
Supply Chain Collaboration and Joint Development
Information Security and Privacy Protection
Yuwell Medical strictly complies with the Personal Information Protection Law of the People's Republic of Chinaand other applicableprivacy protection laws and regulations in its operational regions. Adhering to the principles of "legality, authorization, andconfidentiality" in privacy protection, we have incorporated data privacy into our compliance management, rapidly improved ourprivacy data management system covering various product data types, and ensured transparency in the collection and use of productand service data. Additionally, the Company actively participated in developing industry standards related to data security in the medicalsector to promote the standardization, safety, and e?cient use of medical data. During the reporting period, Yuwell Medical completedand submitted theHome Medical Device Data Collection and Application Standardfor review.
Data Acquisition and Application Security
The safety of medical devices is closely related to life and health, and is an important part of the Healthy China Initiative. As themedical sector becomes more intelligent, it is imperative to ensure the safety of data collection and application of householdmedical devices. In 2023, Yuwell Medical led a series of expert discussions and research initiatives involving several universities,research institutions, and industry leaders. Based on the research findings, the scope and main technical parameters of the
Home Medical Device Data Collection and Application Standardwere de?ned. The standard's framework and core content wereshaped based on relevant national industry documents and data, which establishes comprehensive technical and managementguidelines for home medical device data. This standard was successfully submitted for approval. It sets regulations for collecting,transmitting, storing, applying, and securing users' health data, signi?cantly aiding medical institutions, platforms, and medicaldevice businesses in providing robust data support for managing chronic diseases in residents.
Yuwell Medical Leads the Drafting and Submission of theHome Medical Device Data Collection andApplication StandardCase
Yuwell Medical's Privacy Protection Principles
Principle of
Legality
When collecting, storing, processing, transporting and using personal data, we comply with laws and regulationsand codes of conduct, and consciously safeguard the legitimate rights and interests of data subjects.Users are required to ensure that the source of external data is legal and compliant when introducingexternal data into the Yuwell system or storage space.
Principle ofAuthorization
Before accessing personal information, the Company must obtain the Yuwell Software Service Agreement
signed with the individual's consent, to fully respect their rights to be informed about, access, correct, anddelete their personal information.We carefully evaluate the need to acquire personal data and avoid receiving or collecting data that isirrelevant to our business functions.We protect stakeholders' rights to be informed, choose, and control their personal information, access anduse only authorized data, and implement a range of measures to minimize the use of personal information.
Principle ofCon?dentiality
We maintain strict con?dentiality of privacy data and do not share, transfer, or disclose users' personalinformation to any other companies, organizations, or individuals without authorization. We establishappropriate data security capabilities, implement necessary management and technical measures, andregularly check and evaluate the e?ectiveness of privacy data management and technical measures toprevent data leakage, damage, loss, or tampering.
Amid an increasingly complex global market environment and evolving business demands, the stability and continuity of the supplychain are crucial to a company's operations, production, and customer satisfaction. Yuwell Medical consistently re?nes its supply chainstructure, achieving supplier diversi?cation and multi-channel sourcing. In response to potential supply chain disruptions, price increases,and unexpected events, we have further enhanced our preventive controls to strengthen supply chain resilience. Throughout the reportingperiod, Yuwell Medical maintained a stable supply, ensuring that no shortages of raw materials disrupted the normal production schedule.
Enhancing Supply Chain Resilience
During the reporting period, YuwellMedical conducted a total of
supplier training sessions.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Yuwell Medical strictly follows laws and regulations such as theCybersecurity Law of the People'sRepublic of China, the Data Security Law of the People's Republic of China, and thePersonalInformation Protection Law of the People's Republic of China.Based on these, we have developedpolicies, systems and operational procedures, such as theInformation Security ManagementSystem, Data Security Management System, Information Security Risk Assessment ManagementMeasures, andInformation Security Outsourcing O&M Management Regulation. We aim tostructure a robust information security system to ensure the information security of the Company'sinformation infrastructures, information application systems, products and customers.We have established a three-tier information security management framework. The Chief OperatingO?cer is responsible for the overall management of information security, endorsing the informationsecurity policy, determining information security requirements, and handling major informationsecurity incidents. The IT Leadership Group is responsible for the overall orientation and majordecisions of the Company's information security and supervision of the Company's informationsecurity work. The Information Management Department is responsible for implementing therelevant requirements and work of information security, guaranteeing the effective operationof the Company's information security operation and maintenance system, and briefing the ITLeadership Group. We have also put in place quantitative information security indexes and rewardand punishment mechanisms and incorporated information security protection into employeeperformance appraisal to strengthen information security management.
Yuwell Medical, guided by the ISO 27001 InformationSecurity Management System and other relevantstandards, laws, and regulations, continuouslyadvances the development of its cybersecurityand information security systems. The Companyhas established clear policies and procedures forinformation security management, data control, riskassessment, emergency response plans for networkand information security incidents, and informationsecurity training. We strictly regulate employeebehavior in areas such as cybersecurity, operationsmanagement, server room management, systemchanges, and data backup. Technically, we employvarious measures including network isolation,encryption protection, audit tracking, early warningmechanisms, and antivirus software to establish aninformation security protection network. Additionally,we have intensi?ed our information and data securitytraining and regular audits to comprehensivelyenhance our information security level.
Information Systems and Data Security
We regulate data security fromthree key aspects: databasemanagement, data encryption,and data backup and recovery.Based on the value of theinformation, content sensitivity,and access scope, all companyinformation is classi?ed intofour levels, including top secretand secret. This tiered securityprotection system ensures theproper ?ow and transfer ofinformation within the company,preventing unauthorized accessto sensitive data. We enhancegraded control and accessmanagement by employingintelligent encryption andtiered protection measuresthrough an encrypteddocument management system,comprehensively establishinga data security protectionframework.
Strengthening Controls
We have de?ned clear requirements andmeasures for data backup, extraction,usage, and disposal to ensure rapidrecovery in case of data loss or damage.Additionally, we utilize cloud services andNAS for scheduled full and incrementalbackups, e?ectively preventing data loss.
Data Backup and Recovery
We have established aninformation security control andreview mechanism in line withour business characteristics.We monitor the risks in theconstruction and operation of theCompany's information securitysystem and propose mitigationand resolution measures toensure business continuity andasset security. We engage third-party organizations to audit theCompany's information securitysystem and issue theInformationSystem Audit Report.Duringthe reporting period, theCompany conducted specialaudits on ?ve major areas: useraccess management, systemdevelopment, system changes,logical access, and other generalcontrols.
Information Security Audit
We keep improving theCybersecurityEmergency Response Planand set up atechnical platform for early warning andemergency response, so as to improveour ability to detect and analyzesecurity incidents. We also strengthenthe management and handling ofinformation security emergencies toensure that the Company's informationsecurity is safeguarded in a timely ande?ective manner.
Emergency ResponseManagement
The protection of customerinformation security isincluded in the scope ofinvestigation during the supplieradmission and evaluation, andcon?dentiality-related clausesare stipulated in theSourcingFramework Agreement. Thisenhances suppliers' awareness ofinformation security and ensuresthat the Company's con?dentialinformation and associated dataremain undisclosed.
Supplier InformationSecurity ManagementWe persistently promote the establishment of an information security cultureby including information security in the induction training courses for newemployees to ensure that new employees understand the risks and basicrequirements of information security related to their work. At the same time, wecarry out information security announcements and spot checks from time totime, and call on employees to pay attention to the safeguarding of informationsecurity in their daily work process. For example, employees are required to lockthe screen of their PCs when they leave their posts, and identify informationsecurity documents and differentiate their confidentiality levels. During thereporting period, Yuwell Medical organized a total of three information securitytraining sessions, with an impressive 100% employee coverage.
On-site information security training
Information Security Awareness Training
2827
Yuwell Medical has obtained
ISO 27001 InformationSecurity Management Systemcerti?cation.
Information securitytraining coverage
Completion rate of annual IT-specific review of business-critical system privileges
Information leakageincidents
Annual information securitytraining sessions
100%
100%
3029
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Energizing Life via Technology
Leading ThroughInnovation:
units
millionYuwell health products covered by digital health services
Annual R&D investment: RMB
Product recalls in 2023
504.3712
200,000
3231
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Driving the Future through InnovationYuwell Medical is committed to leading industry development through innovation and enhancing the health of millions of families.Adopting a new strategy of "reshaping medical devices through innovation," the Company considers R&D as its central driving force forgrowth. It continuously explores innovative pathways and substantially increases investments in new product development, proactivelyresponding to the trend in the medical and health industry towards more smart, precise, advanced, and international solutions. With itsfocus on technological innovation, Yuwell Medical aims to advance the industry and deliver high-value medical solutions to society.
In line with domestic and international laws, technical guidelines,professional industry standards, and international norms, YuwellMedical has established comprehensive management systemsfor innovation and R&D. These include theR&D ManagementSystem, Yuwell Medical R&D Cost Collection and AccountingManagement Methods, andTechnology Achievements andInnovation Rewards and Discipline Methods. These frameworksspecify requirements and standards for project initiation, projectmanagement, transition management, succession management,outcome management, and reward mechanisms. Utilizing cross-departmental integrated product development (IPD process)and product lifecycle management tools (PLM system), YuwellMedical accelerates the cultivation and development of newproductive forces and bolsters its core industrial competitiveness.Upholding the principle of "doing the right thing in the right way,"
Innovation and R&D System
Yuwell Medical ?rmly believes that talent is the cornerstone of technological innovation. We focus on cultivating a team of innovative, practical,highly quali?ed, and team-oriented R&D engineers and managers. To support this, we have implemented several institutional norms includingtheR&D Center Tutoring Management System, Yuwell Medical High-Potential Talent Development Management Measures, Research PersonnelContinuing Education Management System, andTechnology Achievements and Innovation Reward and Discipline Methods. We recruitexceptional talents globally and continually re?ne management mechanisms that foster the growth of scienti?c research talents. We intensifythe development of high-end scienti?c and technological talents, place emphasis on training strategic R&D management talents, and promotelong-term incentive plans for core talents to unlock the potential of our scienti?c and technological workforce.The Company routinely organizes internal training sessions and exchanges for various R&D team modules. By facilitating both internaland external training, seminars, and other forms of technical exchanges and lectures, we enable our employees to master cutting-edgetechnologies and stay abreast of industry trends. We also engage external industry experts as R&D consultants, facilitating resourcesharing and synergy, which enhances our technical prowess and supports the independent R&D of innovative core technologies.Moreover, the Company actively engages in various technological innovation activities, cultivating a culture of innovation that encouragesexperimentation and accepts failure, thereby helping employees remain in a state of continuous innovation and development.
Innovation and R&D Team
Yuwell Medical has established R&D centers and innovation institutes, creating high-level, open-ended technological innovation platformsand comprehensive innovation systems. We proactively integrate the scientific and technological resources of domestic and foreign
Technological Innovation Platform
Yuwell Medical's POCTech BGM R&D team has leveraged electrochemical multipulse signals and multiparameter big dataregression analysis to develop a universal algorithm for electrochemical monitoring systems—the Anti-HCT Interference CorrectionAlgorithm. This algorithm significantly enhances the accuracy of our product system and offers versatility and scalability. It isapplicable to all types of people, including special groups such as newborns and pregnant women. It enables chronic diseasepatients to monitor their conditions more e?ectively, enhancing our competitiveness against top-tier global products.
Advanced Anti-HCT Interference Technology PlatformCase
Fluid Simulation Technology PlatformMotor Drive Technology PlatformCompressor R&D Application Platform
New Material Technology PlatformAdvanced Anti-HCT Interference
Technology Platform
Micro-nano Laboratory MEMS
Process Platform
Recognized as aNational High-tech Enterprise
Participated in the development ofnational and industry
Received
Receivedprovincial-level awards for
research institutions and universities. Through independent and collaborative R&D, we engage in technological innovation research andtackle key technological challenges. The Company possesses multiple internationally leading R&D technology platforms, which enhance thedevelopment of new products and the technological upgrading of existing products, facilitate product enhancements and rapid iterations,and further improve manufacturing processes and quality control. With innovation as our driving force, we are accelerating leadership inindustry development. Yuwell Medical has established R&D centers in locations including Germany, Shanghai, Nanjing, Suzhou, Danyang,Xizang, and Shenzhen, creating an extensive global R&D network. Leveraging our advanced R&D capabilities and precise technical skills,we actively seek collaboration with high-level third parties to jointly develop innovation centers and R&D bases for new businesses andproducts, as well as platforms for talent development, thereby laying a solid foundation for the Company's ongoing innovation.With a deep foundation in R&D technology, Yuwell Medical undertakes research on critical and challenging industry technologies, achievinga series of internationally advanced innovations, patents, and standards with independent intellectual property rights. We host multiplenational, ministerial, and provincial-level scienti?c research and innovation platforms, such as the national enterprise technology center,national industrial design center, and national postdoctoral scienti?c research workstation. We have consistently participated in national keyR&D projects, major national technological equipment research projects, and Jiangsu provincial scienti?c and technological achievementstransformation projects, among other signi?cant national and provincial initiatives.
Note: The statistics are based on Yuwell Medical's parent company.
Annual R&D investment: RMB
million
504.3712
R&D investment as a percentage of revenue
6.33%
national-level awards for
the Company adheres to ethical standards in science and technology, fosters a culture of social responsibility, and centers its innovationson market and customer needs. By focusing on key technologies and maintaining superior quality, Yuwell Medical commits to notdeveloping or employing any scienti?c and technological advancements that could harm the natural environment, human health, publicsafety, or ethical standards. Through its development of innovative, applicable new products, technologies, and processes, the Companymakes a positive impact on driving social progress.
standards in 2023
scienti?c and technological innovation
scienti?c and technological innovation
3433
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Yuwell Medical maintains a continuous focus on and deepens its research in innovative medical products, major diseases, andchronic illnesses. Relying on its R&D centers and innovation institutes, the Company has developed multiple products, thuscreating a more rational and enriched product R&D pipeline.
In 2023, dedicated to alleviating patient suffering, Yuwell Medical explored more scientific andcomfortable respiratory treatment solutions for acute and chronic respiratory diseases such astuberculosis, asthma, and chronic obstructive pulmonary disease. The high-flow humidifiedrespiratory therapy device underwent upgrades in six key areas: mode, ?ow, functionality, monitoring,user experience, and accessories. These enhancements enabled full departmental coverage andraised clinical treatment standards. Breakthroughs in high-precision steady-stream flow sensortechnology were achieved, addressing current issues with respiratory parameter monitoringerrors in gas flow and pressure in high-flow humidified respiratory therapy devices. By optimizingintelligent algorithms, the device's capability to process minute respiratory parameters was furtherenhanced. Self-regulating technology for oxygen concentration and ?ow was developed, facilitatingeasy adjustments to mixed oxygen gas levels and flow. Advancements were made in heating andhumidifying technology based on convective circulation structures, significantly improving thetemperature and humidity treatment e?ciency and control precision of high-?ow humidi?ers.
Comprehensive Upgrade of High-Flow Humidi?ed Respiratory Therapy Devicefor Use Across All DepartmentsCase
Engaging in multi-disciplinary industry-academia-research collaboration is a crucial driver of technological innovation atYuwell Medical. The Company has establishedIndustry-Academia-Research Collaboration Management Measuresand activelycollaborates with universities and research institutions to complement each other's strengths, jointly address clinical pain points,and enhance the diagnostic and treatment technology level of medical devices. This e?ort supports high-quality development inhealthcare. By the end of the reporting period, Yuwell Medical had engaged in industry-academia-research collaborations withmultiple institutions, including Nanjing University of Posts and Telecommunications, Beijing Institute of Technology, Shanghai JiaoTong University, the University of Shanghai for Science and Technology, Sichuan University, and Nanjing University.
Industry-Academia-Research Collaboration
As a novel respiratory support technology, high-flow nasal oxygen therapy is increasingly gaining attention from clinicalexperts and is widely used in intensive care units (ICU), emergency departments, cardiothoracic surgery, pediatrics, and otherdepartments. In October 2023, Yuwell Medical hosted the 11th session of the "Thousand Experts Yuwell Initiative" at the Yuwellglobal industrialization base, focusing on the clinical application of high-flow nasal oxygen therapy in emergency and criticalcare anesthesia. By the end of the reporting period, the "Thousand Experts Yuwell Initiative" series of conferences had covered 9provinces and regions nationwide, involving over 110 hospitals.
Thousand Experts Yuwell InitiativeCase
Yuwell Medical rigorously adheres to thePatent Law of the People's Republic of China, Trademark Law of the People's Republic ofChina, Copyright Law of the People's Republic of China, and other relevant laws and regulations. The Company has instituted arobust set of management practices, including theIntellectual Property Management System of Jiangsu Yuyue Medical Equipment& Supply Co., Ltd.These measures are designed to fortify the management of intellectual property and R&D achievements, thuspreventing the loss of intangible assets and fostering employee innovation and creative endeavors.
Intellectual Property Protection
Advancing inSmart Healthcare
Yuwell Medical is deeply invested in the realm of smart healthcare, with a focus ondigitally developing key products and engaging in R&D activities involving "professionalmedical software products + algorithms + IoT." The Company seamlessly integratestraditional medical product services with information technology, establishes datastandards for medical devices, and constructs open, empowering platforms to generatehealth data records for individuals and families. It empowers partners by offeringcomprehensive business services to various enterprises, organizations, and partners thatmeet entry requirements, thereby cultivating a digital medical service ecosystem.Digital HealthInnovation
Subscriptions to general health products and services (exercise, diet, psychology, content)HealthcareService Providers
Hospitals
Professional medicalinstitutions
Health serviceorganizations
Rehabilitation andelderly care institutions
OTCpharmacies
Facilitating institutional access Empowering end-users
Personal(Family) DigitalHealth RecordsData Collectionand Management
Empowering medicinefor assistance
Introducing medical AIfor automation
Leveraging big data in healthfor service deliveryPersonal (family) health records; Personal physiological indicators; Personal (non-medical)
health indicators
Government regulation and data authorization
To manage intellectual property affairs, the Company has established both a Legal Affairs Department and an IntellectualProperty Department, staffed with specialists dedicated to intellectual property management. This framework ensures aprofessional, comprehensive, and mature intellectual property management system. Yuwell Medical prioritizes raising awarenessof intellectual property rights among its employees through regular training sessions. These sessions aim to help employeesgrasp the signi?cance of intellectual property and to implement e?ective strategies for its application and protection within theirwork. Furthermore, the Company actively manages and promotes patent applications to preserve its operational autonomyand competitive edge in the marketplace. Yuwell Medical not only protects its own intellectual property rights but also respectsthose of others, committing to avoid any infringement. The Company enhances patent risk management and strictly adheres tocon?dentiality obligations during technical collaborations, thus supporting fair competition and the healthy growth of the market.As of the end of the reporting period, Yuwell Medical had ?led 132 trademark applications with trademark o?ces both domesticallyand internationally and conducted 4 intellectual property training sessions, extensively covering its R&D personnel.Total patents granted1,495
Invention patents granted
1,066
Patents granted in 2023
Home Testingand Treatment
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Yuwell Medical actively upholds the service philosophy that "proactivelymanaging health is the best guarantee for enhancing the quality of life,"dedicating itself to providing users with e?cient, convenient, and personalizedhealth management services. The Company establishes digital servicedevelopment goals, constructs a comprehensive digital service architecture, andcontinually enhances its digital service system and end-to-end customer servicesolutions. Leveraging data-driven management, structured accumulation,and intelligent risk control, the Company consistently expands its portfolio ofdigital medical device products and pushes the boundaries of digital healthservices to improve service quality, enabling more people to lead healthier, moremeaningful lives. During the reporting period, Yuwell Medical achieved its digitalservice construction goals for foundational systems, developed IVR voice robots,and established a uni?ed work order platform, a smart knowledge base, and auser operations management platform, thus creating a "smarter" health servicesystem that better analyzes user needs, matches solutions to those needs, andprovides feedback for design and production.
Digital Health Services
Traditional diabetes monitoring tools require daily ?nger pricks and are inconvenient to carry. Addressing this pain point, YuwellMedical has adopted cutting-edge global practices to develop Anytime, a new continuous glucose monitoring (CGM) systemproduct, which was launched in 2023. Anytime constantly monitors glucose levels subcutaneously for 24 hours through sensors,enabling real-time blood sugar dynamic monitoring without calibration. This can signi?cantly reduce users' discomfort and the riskof infection. Anytime also provides comprehensive report interpretation and sharing, helping doctors and patients adjust bloodsugar management strategies in a timely manner, thus o?ering a new solution for diabetes management.
Launch of New CGM Product AnytimeCase
We have established a digital management platform thatintegrates data collection, analysis, and the creation andimplementation of personalized plans. Through the YuwellHealth Manager App, Yuwell Member Center Applet, andYuwell Respiratory Manager Applet, users can clearlyunderstand their blood sugar levels, blood pressure,oxygen intake duration, and sleep respiratory quality,facilitating easy health management with personalizedhealth management and consultation plans.
Through smart platforms, we have provided users withhealth-related education and management knowledge,enhancing their self-management capabilities andtheir understanding of and compliance with diseasemanagement.
We have collaborated with medical institutions, insurancecompanies, and pharmacies to o?er users comprehensivehealth management and services.
Based on user outcomes and feedback, we have continuallyoptimized management plans to enhance personalization.By analyzing and predicting trends in physiologicalindicators, we make timely adjustments to treatment plansand lifestyle recommendations.
Establishing Digital Platforms
Strengthening User Education
Integrating Medical Resources
Enhancing Personalized Services
The "Yuwell Health Manager Platform" is an innovative health management platform developed by Yuwell Medical for householdmedical devices. It supports a range of medical devices developed by the Company, including blood pressure monitors, glucosemeters, pulse oximeters, respirators, thermometers, and more. By utilizing technologies such as Bluetooth and 4G to connect withmobile phones, it enables real-time monitoring and recording of device data, health data management, and sharing. Users cangain a comprehensive understanding of their own or their family members' health data, while the platform can promptly identifypotential issues, provide personalized health advice, o?er accurate health management plans, and remote health follow-ups. Thishelps prevent and delay the occurrence and development of chronic diseases and their complications, assisting users in achievingself-health management and control. In the future, Yuwell Medical will expand the application of digital therapy to a broadermarket, including extending to the management of other chronic diseases and elderly health management.
Yuwell Health Manager PlatformCase
3635
Yuwell health products coveredby digital health services:
units200,000
3837
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Guided by customer needs, Yuwell Medical empowers partners across multiple scenarios to provide smart healthcare closed-loop services to various enterprises, organizations, and partners that meet entry requirements, creating a digital medical serviceecosystem that enables more people to enjoy innovative and high-quality medical services.To jointly create a favorable smart healthcare ecosystem, it is essential to ensure the security, supervisability, stability, andconsistency of digital medical product data collection. Yuwell Medical strictly complies with the requirements of relevant domesticlaws and regulations regarding privacy protection, including thePersonal Information Protection Law of the People's Republicof China, as well as other applicable privacy protection laws and regulations in the regions where it operates. By proactivelyparticipating in the formulation of industry standards related to medical data security, the Company promotes standardized,secure, and e?cient utilization of medical data. For detailed information, refer to the section "Data Acquisition and ApplicationSecurity" in the chapter "E?cient Governance: Marching Towards a New Era of High-Quality Development" in this report.
Smart Healthcare Ecosystem
In 2023, the Positive Airway Pressure Units Webpage Information System developed by Yuwell Medical was certi?ed under the EUMedical Device Regulation (MDR) standard. This groundbreaking platform, the ?rst worldwide to receive such certi?cation for homemedical devices, enables the e?ective management of users' personal and treatment data by distributors and doctors. At the endof each respirator usage cycle, essential data including usage duration, device leakage, pressure, Apnea-Hypopnea Index (AHI),blood oxygen levels, and pulse rate, is uploaded to the management system via communication modules. This feature facilitatessophisticated data analysis, enhancing health management for users.
Yuwell Medical Platform Certi?ed to EU MDR StandardCase
Commitment to Uphold Quality
Yuwell Medical remains committed to the principle of leading industry development throughinnovation and enhancing the health of millions of families. Innovation serves as the cornerstoneof its development and superior products as the benchmark. The Company expands its presencein underdeveloped countries and regions, accelerates the development of high-quality inclusiveproducts, and enhances the design of intelligent and user-friendly products. By ensuring qualitythrough lean management, enhancing product affordability, and implementing fair pricingpolicies, these e?orts are aimed at making high-quality healthcare more accessible.
Accessible High-Quality Healthcare
Yuwell Medical regularly conducts training for the professionaluse of medical devices and sets up incentive funds to supportgrassroots doctors in their research efforts, thus enhancingprimary healthcare services.The Company maintains a focus on the healthcare development ofgrassroots and underserved areas by participating in health-relatedpublic welfare activities, promoting health education, donatingmedical equipment, and fulfilling its social responsibilities. Theseefforts expand the reach of high-quality medical resources andbenefit an increasing number of patients. More details on thesehealth initiatives can be found in the section "Safeguarding Life andHealth" in the Chapter "Talent-oriented: Achieving the Value of Life."
By adopting a user-centric and inclusive design philosophy, theCompany addresses the speci?c challenges and requirements ofits users, particularly patients, the elderly, and other vulnerablegroups. This approach simpli?es the product interface, makingdevices more user-friendly and accessible.
Human-Centered and Inclusive Design
Yuwell Medical keeps investing in its core capabilities, developingand producing a range of digital and smart flagship products.These innovations result in smarter, more convenient, andelegantly designed products across various lines. Active effortsare made to improve usability and lower the barriers to entry,aiming to "enhance the health of millions of families" withhigher-quality, cost-e?ective, and sustainable products.Advancing in the smart healthcare sector and focusing onthe digital construction of key products, Yuwell Medical setsstandards for medical device data and develops an open,empowering platform for personal and family health recordmanagement. By supporting partners in creating a digitalhealthcare service ecosystem, the Company is dedicated too?ering innovative, high-quality, and accessible medical servicesto a broader audience. For further information, refer to thesection "Advancing in Smart Healthcare" in this report.
Intelligent User-Friendly Products
Adhering to the World Health Organization's guidelinesfor "fair pricing," Yuwell Medical employs a value-based,transparent, and fair pricing strategy. This approach ensuresproduct quality while reflecting affordability. The Companyexplores more sustainable pricing models in di?erent marketsto ensure the effective implementation of pricing policies,transparency in pricing, and accessibility of products. Thisendeavor enables our innovative products to reach a widerpopulation in underprivileged regions.
Enhancing Product A?ordability
Improving Public Healthcare Standards
Training for pharmacy sta?
Guiding the use of medical equipmentin community activities
By aggregating data from household medical devices and creating personal health records for users, weestablish connections with large public hospitals, community hospitals, and internet hospitals to achieveremote diagnosis, health monitoring, and remote intervention for chronic disease patients. Combiningdata with internet medical services can make hospitals more e?cient and lower costs, enabling patients toachieve long-term home health intervention and chronic disease management.
Empowering Hospitals: Extending Out-of-Hospital Medical Ecosystem to Form a Closed-loop Service
Through an open data platform, we jointly build personal/family health records with OTC pharmacies,combining patients' medication and device usage to provide periodic, targeted customized services. Thisforms a combination mode of "pharmaceutical + health service + health care service," enhancing theservice capabilities of pharmacies.
Empowering Pharmacies: Creating a New Closed-loop of "Medical-Pharmaceutical-Services"
Through an open data platform, we aid community hospitals in establishing personal/family health recordsfor users, achieve data interoperability with relevant tiered diagnosis and treatment hospitals, and thuspromote the closed-loop intervention and management of chronic disease residents in the covered area.
Empowering General Healthcare Institutions: Providing Health Intervention andManagement Services
For the visually impaired, products feature voicebroadcasting and backlight designs.Blood glucose monitors are designed to be modular andrechargeable, shifting from disposable to reusable.The font size on product screens is adjustable toaccommodate the needs of elderly users.
4039
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
As obesity rates and aging populations increase worldwide, Obstructive Sleep Apnea (OSA) has emerged as a major global public healthchallenge. In China alone, the number of OSA patients has reached 176 million. However, the diagnosis rate remains at merely about 1%,with very few patients continuing treatment after their initial diagnosis. In response to this critical issue, Yuwell Medical has leveragedits advanced respiratory technology to develop the third-generation sleep respirator, marking significant advancements in technology,comfort, and intelligence. This innovation o?ers new possibilities for restoring normal sleep patterns in OSA patients.The third-generation sleep respirator features an innovative integrated airway and a low-noise, high-e?ciency fan, ensuring stable ?ow andpressure while minimizing noise for a smoother breathing experience. It incorporates a novel algorithm that automatically detects a broaderrange of sleep events, tailoring personalized treatment plans accordingly. The machine also includes a 15mm narrow-diameter intelligentheated tube, employing advanced temperature control technology to minimize condensation and enhance the warmth and comfort of thebreathing experience. Equipped with a built-in 4G IoT module, the device allows for automatic uploading of sleep reports to the WeChatapplet, enabling patients to easily access daily treatment outcomes and share their sleep reports instantly, facilitating remote monitoringand guidance. This system allows doctors to quickly assess treatment progress and sleep quality without the need for frequent hospitalvisits, thereby providing patients with timely and e?ective treatment.Since 2012, Yuwell Medical has dedicated itself to the independent development of domestically produced sleep respirators. Recognizing
EU Medical Device Conformité Européenne (CE) Certi?cation
Yuwell Medical has obtained ISO 13485 Medical DeviceQuality Management System certi?cationPassed the audit under the Medical Device Single AuditProgram (MDSAP)Certi?ed by the China Certi?cation Committee for MedicalDevices (CMD)
Innovative Technology Boosts Sleep HealthCase
the challenges in developing respirators, particularly the absenceof a central monitoring system and an IoT framework at theclinical and medical consortium levels, the Company initiated a"hospital-enterprise model." This approach fosters collaborationwith numerous domestic hospitals and experts to devise e?ectivesolutions. Additionally, we have established eight sleep IoTcenters to deliver personalized sleep therapy. Through extensiveclinical trials, these centers gather ample training samples foruser sleep breathing tests, ultimately delivering comprehensivediagnostic and treatment solutions for OSA patients.
Superior product quality is fundamental to a company's continued success. Yuwell Medical consistently prioritizes the productionof high-quality, reliable products, adhering to both domestic and international regulatory standards. This includes compliancewith theProduct Quality Law of the People's Republic of China, Regulations for the Supervision and Administration of MedicalDevices, andMedical Equipment Production Quality Management Speci?cation. We have implemented comprehensive qualitymanagement procedures, such asQuality Manual and Document Control Procedures, to establish high-standard lifecycle-spanningquality and risk management systems. Yuwell Medical has obtained ISO 9001 and ISO 13485 certi?cations, and its key productsare approved by the US FDA, EU CE, and South Korean KGMP. We meticulously oversee every facet of our quality managementsystem, fostering a culture of quality awareness among all sta? members. Through annual internal and external audits, as well asmanagement reviews, we ensure the continuous improvement of our quality management system.
Note 1: EU Medical Device CE certi?cation encompasses the Medical Device Regulation (MDR) certi?cation, In Vitro Diagnostic Devices Regulation (IVDR)certi?cation, Medical Device Directive (MDD) product certi?cation, and In Vitro Diagnostic Medical Devices Directive (IVDD) product certi?cation.
Product Quality and Safety
Quality Management Goals for Yuwell Medical in 2023:
One-time inspection pass rate ≥
99.00%
Pass rate for random inspections in 2023One-time inspection pass rate
100%99.73%
of main products have passed
100%ISO 9001 Quality Management System certi?cation
Product Certi?cations
valid registrations for Class II and III medical
devices in China
valid records for Class I medical device ?lings
in China
Quality Management System Certi?cations
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
End-to-End Lifecycle Quality Management
ProcurementProduction Post-Market Quality SupervisionCustomerRequirements
CustomerSatisfactionQuality Control - R&D and DesignQuality Control - ProductionQuality Control - ProcurementPost-Market Quality SupervisionThe design process is standardized to be more specific andaligned closely with user needs, creating a closed loop fromrequirements to design usability. Closed-loop experienceresearch and usability veri?cation mechanisms are employedto test design quality. Real users are recruited in the later stagesof product development to conduct usability tests in scenariosclose to reality, evaluating whether the design meets customerquality requirements. Usability test results can significantlyimpact product certification and market launch, potentiallyhaving veto power to ensure design quality.Quality management system procedures such as the QualityManual and Design and Development Control Proceduresare developed based on ISO 9001 and other standards. R&Dquality policies and objectives are clari?ed, and quality auditsare conducted at each key milestone to ensure quality atevery stage of the project. The R&D center regularly organizesinternal training or exchanges covering medical device qualitysystem standards, regulations, test requirements, etc., to instillquality management awareness throughout the R&D process.
Rigorous quality control is implemented in theproduction process, with detailed standardizedproduction processes and operating proceduresensuring compliance with quality standardsat every step. Requirements for equipmentaccuracy and reliability are incorporated intoequipment management standards, with regularmaintenance and calibration ensuring qualityassurance throughout the product manufacturingprocess. Under the Company's digital strategy,advanced technology and intelligent equipmentare continuously introduced to promote fullautomation of key products, improve leanmanagement, identify areas for improvement,and optimize quality control strategies to ensurestability, efficiency, and quality in the productmanufacturing process.
Quality risks throughout the supplychain lifecycle are strictly controlledthrough regular audits and qualityreviews of material suppliers.Detailed content can be found in thesection "Sustainable Supply Chain"in the chapter "E?cient Governance:
Marching Towards a New Era ofHigh-Quality Development."
Adverse events are proactively collected and reported,with risks timely and effectively controlled after themedical device is marketed. The quality departmentevaluates customer feedback according to theprinciple of reporting at suspicion, reporting suspectedadverse events of medical devices as such. Regularcomprehensive reviews of high-risk and frequentlyoccurring adverse events are conducted by quality, R&D,production, and technical departments, establishinge?ective analysis, evaluation, and correction systems toensure a year-on-year reduction in adverse events.
DesignR&D
4241
4443
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
To ensure the effective operation of the quality system, Yuwell Medical routinely conducts internal and external audits across allbusiness lines. The Company performs annual internal audits of the quality management system, assessing various products againstapplicable laws, regulations, and standards. It also hosts annual audits by external third parties and accepts audits from domestic andinternational regulatory bodies and partners, continuously improving the quality management system's integrity and e?ectiveness.In 2023, Yuwell Medical underwent 37 quality management system audits conducted by government regulatory agencies and externalaudit organizations, achieving a 100% pass rate. This included 11 audits by third-party certi?cation bodies, 7 audits pertaining tomedical device production quality management standards, 1 drug regulatory review, 1 audit of epidemic prevention materialssupervision, and 17 second-party audits (customer factory audits). Additionally, 23 of Yuwell Medical's products were randomlyinspected by government regulatory agencies, all passing inspection.
Yuwell Medical has established a well-structured and e?ciently operated laboratory system. The Product Safety Laboratory hasobtained accreditation from the China National Accreditation Service for Conformity Assessment (CNAS), along with certi?cationssuch as ISO 17025 Laboratory Accreditation, CTF Laboratory Accreditation, and UL Witness Laboratory Accreditation. Furthermore,it regularly engages in training, activities, and audits conducted by various domestic and international third-party organizations,ensuring that its laboratory testing capabilities match those of the industry's leading laboratories, thereby constantly safeguardingthe quality safety of the Company's products.The Company has developed rigorous speci?cations, including theIncoming Inspection Control Procedure, Process Inspectionand Finished Product Inspection Control Procedure, andNon-conforming Product Control Procedure. It performs comprehensiveinternal testing on every batch of products following the medical device product quality standards, ensuring meticulous qualitycontrol from the entry of raw materials to product shipment, effectively mitigating potential safety and quality issues. Beyondinternal testing, the laboratory facilitates product compliance with safety, electromagnetic compatibility, environmental, andnoise tests according to standards. For portable oxygen concentrators, when product standards are modi?ed or new models areintroduced, samples are sent to third-party testing institutions. Mass production proceeds only after the safety and reliability of theproducts are veri?ed, maintaining a 100% pass rate for product inspections.
Advanced Quality Inspection System
Stringent Quality Audits
Yuwell Medical is committed to fosteringthe involvement of all employees inquality management by establishing adiverse and comprehensive quality coursetraining system, signi?cantly enhancingeach employee's quality awareness andknowledge. The Company creates an annualquality training plan for all employeesand rigorously implements a range ofquality-related training sessions based onthis plan. This includes but not limited tomedical device quality system standardsand regulations training, specialized qualitytraining, and more. In the reported period,Yuwell Medical conducted 65 qualitytraining sessions as per the annual plan,reaching 100% of its employees. Trainingtopics included medical device quality-related regulations, quality managementsystem education, quality inspectionprocesses, quality risk management, andmedical device registration.
Comprehensive Quality CultureBuilding
Yuwell Medical has developed a comprehensive product recall system and mechanismsin compliance with theMedical Equipment Production Quality ManagementSpecificationandThe Regulation of Medical Devices Recall Administration. It hasalso instituted internal management systems like theMedical Device Adverse EventMonitoring Management System. Regular simulated recalls are conducted to validatethe e?ectiveness and scienti?c validity of the product recall management system.Yuwell Medical adheres to relevant national and local regulations such as theMeasuresfor the Management of the Monitoring and Reevaluation of Medical Device AdverseEvents, and has implemented theProtocol for Active Reporting of Adverse Events.Adverse events are actively collected and reported, with customer feedback beingassessed according to the principle of reporting at suspicion, thereby timely andeffectively managing risks post-market release of medical devices. Any incidentsuspected of being an adverse event related to the medical device should be reportedunder this protocol.
Product Safety Management
Training coverage rate for quality-related personnel100%
Attendees of training in 20233,517Total duration of quality training
hours
Product recalls in 2023
4645
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
At Yuwell Medical, "customers as the core" stands as one of our core values. We havedeveloped a comprehensive, omnichannel customer service ecosystem, grounded inthe principle of beginning with customer needs to create a synergistic system acrossour entire business chain. By thoroughly understanding and integrating customerneeds into all business processes, we guarantee efficient responses to customerinquiries, thus signi?cantly improving overall customer satisfaction.
Customer RelationsManagement
Yuwell Medical has formulated protocols and standards, including the400 Service Processand Standards, to create a distinctive customer service system. This system features multi-channel front-end outreach, an integrated mid-stage collaborative platform, and a robustback-end support framework, ensuring a smooth customer service experience frompre-sales to post-sales across all channels. The system facilitates customer interactionthrough various channels, including a 400 hotline, online public accounts, apps, enterpriseWeChat, and third-party stores. Moreover, it supports communication through diversemediums such as phone, text, and video. Centralized around our global customer serviceheadquarters, we have established regional service centers in key cities like Shanghai,Beijing, Guangzhou, Chongqing, Chengdu, Wuhan, and Shenyang, complemented by over100 after-sales service outlets. This strategic network guarantees a seamless connectionbetween the Company and our customers.The Company is committed to providing proactive services. By leveraging digital tools,such as a unified platform on WeChat and unique product codes for individual items,we integrate data across the brand, users, and products. We have also developed ourproprietary O2P (Product Insight and Operation) platform that performs a detailed analysisof user data throughout the customer lifecycle, generating a complete 360-degree userpro?le. This enables our customer service team to provide prompt support before, during,and after the sale, ensuring immediate awareness of customers' current product usage,thereby delivering intelligent, fast, and self-directed premium services.To cater to the increasingly personalized service needs of our diverse user base and fosterstronger brand loyalty and satisfaction, Yuwell Medical o?ers a range of heartfelt servicesbeyond mere product support, with a strong emphasis on meticulous customer care.
Proactive Services
We provide online guidance and one-on-one video guidance services, catering tousers who require additional support (*for wearing certain products).
Professional Guidance
We offer a variety of health education materials, including recorded courses, knowledgecards, and short videos, designed to meet the diverse health needs of di?erent populations.Health Education
We regularly organize the7-Day Family Blood Sugar Control Camp, offering onlinesolutions to the challenges of managing diabetes; we also facilitate community and socialgroup platforms that provide mutual assistance and communication to help alleviate thecomplexities and anxieties associated with blood sugar management.Diabetic Care
For vulnerable groups such as the elderly living alone, disabled individuals, andthose facing economic hardships, we provide doorstep services, waivers for freightand repair costs, complimentary accessories, and spare machines.Heartwarming Service
At Yuwell Medical, we place immense importance on customerfeedback. We have established a robust customer complaintand consultation system, accompanied by a diverse array ofcommunication channels. We have also developed theYuwellMedical Complaint Management Regulationsto enhance theinvestigation, handling, tracking, and oversight of customercomplaints. Thorough analyses of customer feedback areconducted to drive continuous improvement, ensuring thatcomplaints are addressed promptly and e?ectively. Moreover,the Company has implemented a unified work order serviceplatform integrating AI robots to provide real-time, high-quality responses, thereby facilitating rapid human-machinecollaboration in resolving customer issues. During thereporting period, Yuwell Medical successfully managed 1,731customer complaints, achieving a resolution rate of 100%.
Response to Requests
During our marketing and promotional activities, Yuwell Medical strictly adheres to theAdvertising Law of the People's Republic ofChinaamong other relevant laws and regulations. We have implemented responsible marketing systems, including theFront DeskMarketing Service Standards and Norms, to ensure clear mechanisms for disseminating information about products and activities.These standards clarify the principles and guidelines for our marketing personnel during sales and promotional activities,ensuring that our product promotions are conducted ethically, scienti?cally, and objectively. We utilize intelligent tools such asknowledge bases and robotic corpora, which we regularly update and enhance alongside targeted training programs. This ensuresthat information is communicated accurately and reliably, minimizing errors in manual transmission. Under protocols like theDocument Speci?cation Combing Guide, we have also established robust internal audit processes and veri?cation mechanisms,strictly overseeing the production and external distribution of promotional materials.
Responsible Marketing
Achieved a customer complainthandling rate of
100%
Yuwell Medical consistently conducts customer satisfaction surveysto gain comprehensive insights into customer opinions andsuggestions, with the aim of continually enhancing our productsand services. Throughout the reporting period, the Companycarried out customer satisfaction surveys for both its B2B and B2Csectors. Satisfaction questionnaires were issued to B2B customers,achieving a response rate of 100%. For B2C customers, satisfactionwas gauged through proactive evaluations received during customercalls, enabling timely identification and constant improvementof any issues. In 2023, Yuwell Medical implemented multipleimprovement measures in response to survey ?ndings. For instance,to address dissatisfaction with services, we enhanced customerservice capabilities by organizing service scripts, refining typicalcase handling approaches, and providing sta? training to improvetheir communication skills. Additionally, for users with urgentneeds, we established an internal emergency response mechanismand improved satisfaction by offering backup machines, amongother measures. To address customer demands regarding deliveryschedules, we routinely compiled problem orders for timely follow-up and coordination by dedicated personnel.
Customer Satisfaction Management
Attained a B2B customer satisfactionrate of
96.2%
Reported a B2C customer satisfactionrate of
97.25%
Awarded the Digital Service
Management InnovationAward
Received three major awardsat the China Customer ServiceFestival
"Best Service Case,""Team Expert,"and"Most Beautiful CustomerService Sta?."
Recognized among the Top
Chinese
Service Brands in 2023
4847
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.
Waste discharge compliance rate
Greenhouse gas emission intensity
tons of CO
equivalent/RMB 10,000 revenue
Total investment in environmental protection: RMB
million
Accelerating Green and Low-CarbonTransition
Environmentally Friendly:
7.0168
100%
0.0277
5049
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Enhancing Environmental Management
EHS Management SystemYuwell Medical has established a three-tier EHS management structure, systematically assigning responsibilities. The GeneralManager serves as the primary responsible officer for environmental protection, and is tasked with overall planning andcoordination of the Company's EHS management e?orts. A designated manager's representative is responsible for developingplans to ensure the establishment, implementation, and maintenance of the EHS management system and reports to the GeneralManager. Each functional department is responsible for implementing the provisions and requirements of the Company's EHSmanagement system to ensure the realization of EHS management policies and objectives. EHS management objectives areincorporated into the performance evaluation of management, with a veto policy in place for signi?cant adverse environmentalevents. These objectives, once broken down and allocated to relevant departments, are linked to the performance evaluations ofdepartment heads and relevant employees.
Execute the stipulations and requirements of the Company's EHS management system, ensuringrelated tasks are carried out, and achieving the EHS management policies and objectives.FunctionalDepartments
Assist the General Manager in establishing, implementing, and maintaining the EHS managementsystem, ensuring the realization of EHS policies and objectives; organize risk opportunities andassessments, planning response measures; lead the investigations and handling of significantenvironmental and safety incidents.Manager'sRepresentative
Yuwell Medical has obtained
ISO14001 EnvironmentalManagement Systemcerti?cationYuwell Medical has been
certi?ed as a Green Factoryin Jiangsu Province
Environmental Management Objectives
Environmental Risk and Emergency Management
Environmental Management System Certi?cation and Audit
Yuwell Medical routinely assesses the environmental impact of its business operations, allocates speci?c environmental objectivesand tasks across various departments, actively encourages these departments to take appropriate actions, and enhances themonitoring and feedback mechanisms to track progress toward these goals. This approach of closed-loop management facilitatesthe ongoing enhancement of the Company's environmental protection performance.
Compliance with environmental laws, pollution prevention and management, assurance of continuous improvement, andenhancement of management performance
Yuwell Medical has developed systems such asIdentification, Evaluation, and Control Procedures for Environmental Factors
andManagement, Review, and Control Procedures. The Company proactively manages environmental risks and conductshazard assessments, constantly identifying and updating risk points and maintaining detailed risk registers. Through robust riskcontrol measures, it ensures that critical environmental risks are managed e?ectively according to set standards. The Companyadheres strictly to protocols such as theClassi?cation Method for Environmental Accident Risk of Enterprise(HJ941-2018) andhas developedEmergency Preparedness and Response ProceduresandEmergency Plans for Sudden Environmental Incidents.Extensive emergency response drills are performed to ensure rapid and e?ective control of unexpected environmental incidents.Yuwell Medical consistently advances the development and certification of itsenvironmental system, promoting a standardized and systematic approach to EHSmanagement. The Company has obtained ISO14001 Environmental ManagementSystem certi?cation and has been certi?ed as a Green Factory in Jiangsu Province. Itundergoes annual ISO system supervisory audits and triennial recerti?cation auditsconducted by third-party certi?cation bodies.The Company conducts comprehensive internal environmental audits, cross-departmental reviews, and strict self-assessments regularly. Every quarter, third-partyprofessional organizations are engaged to audit the environmental managementsystem, ensuring thorough monitoring of its operational status and environmentalperformance. During the reporting period, Yuwell Medical completed 4 environmentalreviews across all its facilities and conducted 4 third-party environmental audits.
Manage solid waste through categorizedcollection and uni?ed treatment
Waste classi?cation rate ≥90%, hazardous waste control at100%, recyclable waste management at 90%
AchievedImplement noise reduction measures to minimizethe impact on the external environment, ensuringno stakeholder complaints
Compliance with Class 3 standards of GB12348-2008EmissionStandard for Industrial Enterprises Noise at Boundary;Daytime ≤65 decibels, Nighttime ≤55 decibels
AchievedControl fugitive emissions of exhaust gases at aboundary within acceptable standards withoutexternal complaints
Compliance of fugitive emissions of particulate matter atthe boundary with theIntegrated Emission Standard of AirPollutants
AchievedEnsure the discharge of domestic sewagemeets regulatory standards
Implementation of separate systems for rainwater andsewage in the facility area, with domestic wastewatermeeting discharge standards after undergoingtreatment in septic tanks
AchievedEnhance the greenery coverage of the factoryarea to improve the environment
Achievement of a 15% greening rate within the factorypremises
Achieved
ObjectivesIndicatorsAchievement Status
Management Policy
Total investment in environmentalprotection: RMB
million
7.0168
Annual environmentalincidents
Coverage rate of environmentalprotection training
100%
Yuwell Medical actively responds to national requirements for green and low-carbon development by strictly adhering toenvironmental protection laws and regulations such as theLaw of the People's Republic of China on Environmental Protection,Law of the People's Republic of China on Water Pollution Prevention and Control, Law of the People's Republic of China onthe Prevention and Control of Atmospheric Pollution, Law of the People's Republic of China on the Prevention and Control ofEnvironmental Pollution by Solid Waste, and Energy Conservation Law of the People's Republic of China, among others. Followingthe standards of the ISO 14001 Environmental Management System and ISO 50001 Energy Management System, we have establishedan environmental management system and developed guidelines such as theEHS Management Manual. We integrate the conceptof green development into our operations, enhance monitoring, and continually improve to maximize competitive strength whileminimizing environmental impact. During the reporting period, Yuwell Medical did not experience any environmental pollutionincidents, face any administrative environmental penalties, or encounter any major environmental accidents.
Comprehensively lead the Company's EHS management, organizing the development of EHSpolicies and objectives, ensuring resources for the effective operation of the EHS managementsystem, and preventing and managing overall environmental risks.
General Manager
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Green Product Design
Yuwell Medical integrates the concept of green innovation into its product development, actively employing new materials,equipment, processes, and technologies across packaging design, production, distribution, transportation, and sales. This strategyfosters miniaturized, lightweight, low-energy, and environmentally friendly designs, delivering superior, eco-friendly products.
We rigorously control hazardous substances such as mercury,lead, cadmium, and hexavalent chromium by selectingmaterials compliant with the ROHS directive, thereby reducingpotential harm to human health.We select packaging suppliers and products that adhereto environmental certification standards, like ISO14001Environmental Management System certification, to ensurethat the packaging materials meet stringent environmentalguidelines.
We aim to maximize the simplification of packaging whilemaintaining product safety, continuously enhancing theutilization of packaging materials through internal recyclingand resource reuse. For instance, we replace foam linerswith recyclable air cushion bags made of LLDPE/NYLON co-extruded film to reduce the use of plastics and substitutetraditional foam packaging.We choose recyclable, biodegradable, or reusable packagingmaterials, such as paper, cardboard, and biodegradableplastics, to minimize environmental impact.
Green and Healthy MaterialsGreen Packaging
Integrated, Lightweight, Low-Energy Design
We prioritize the recycling and reuse of materials by utilizingthe reuse of mesh atomizer packaging liners, implementinga shared design for wheelchair frame components, andadopting an integrated platform design for the electronicsphygmomanometer product line, all aimed at enhancingthe spatial e?ciency of our products.
For integrated fetal monitors, we employ a unified designthat eliminates connecting spring wires, reducing the overallsize of the machine and resource consumption. We prioritizeshared material use and incorporate internal integrationand lightweight designs to enhance the efficiency of spaceutilization in our products.
We employ a lightweight motor design in our electric wheelchair products and have developed pocket battery applications.
Addressing Climate Change
In accordance with relevant policies, regulations, international initiatives, and trends,Yuwell Medical keeps improving its ability to manage climate risks and opportunities,thereby enhancing its climate resilience.Climate RiskManagementRisk TypeRisks, Opportunities, and Potential ImpactsResponse Measures
Extreme Weather
? The increase in extreme weatherevents such as extreme heat,severe cold, torrential rains, andtyphoons could affect businesscontinuity.
? Strictly control EHS and supply chain risks,and enhance emergency management.
? Assess regional climate risks during projectselection and planning.
? Increase production efficiency through
energy-saving technological improvementsand optimization of the energy structure.
? Keep abreast of global scienti?cadvancements related to diseases causedby climate change and enhance researchin products and technologies.
Temperature Rise
? A rise in average temperatures
could increase operational costsfor company infrastructure andpose health risks to employees.DiseaseEpidemics
? Climate change may elevate the
risk of transmitting epidemics.
Policy andRegulatory Risks
? Increasingly stringent nationalpolicies and requirements maylead to higher costs and tighteroperational constraints.
? Stay updated on policy changes, ensurecompliance with new regulations, andproactively adapt to policy shifts.? Monitor developments in the carbonmarket and prepare accordingly.
Market andTechnologicalRisks
? The growing demand for carbonreduction in the value chain andthe emergence of new low-carbontechnologies and alternatives mayobsolete current technologies orproducts. Adopting green industriesand technologies can boost productcompetitiveness, albeit at increasedcosts of low-carbon transition.
? Intensify R&D in low-carbon technologies
and products, and strategize for greenand smart transitions by capitalizing onopportunities in clean technology.? Design carbon reduction pathways and
implement new materials, equipment,processes, and technologies. Thoroughlyassess the investment returns andfeasibility before launching low-carbontransition projects and select the optimalsolutions based on reality.
Yuwell Medical aligns with the national14th Five-Year Plan for Circular Economy Development. During the R&D stages, theCompany considers packaging reduction and other factors. To address the issue of excessive packaging waste from individuallypackaged small consumer items, Yuwell Medical has partnered with SF Express on the Turnover Box Project. The turnover boxdesign accommodates a substantial volume of items and features stackable functionality. This initiative o?ers several bene?ts.First, it reduces the use of packaging materials for consumer deliveries, thus preventing over-packaging. Second, it decreasesthe packaging weight for the same shipment volume, which in turn lowers energy consumption and carbon emissions duringtransit. Third, the turnover boxes are designed to be reused up to approximately 40 times and are either compressible orcollapsible to save space, facilitating e?cient and circular resource use. This substantially lowers both waste disposal costs and theenvironmental footprint.
Turnover Box Project in Collaboration with SF ExpressCase
Physical Risks
Transitional
Risks
5453
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
IndicatorUnit2023
Advancing its energy management in alignmentwith the ISO 50001 Energy Management Systemstandards, Yuwell Medical develops guidelinessuch as theEnergy Management System Manual,strengthens its energy management framework, setsenergy-saving goals, and conducts energy audits.The Company actively adopts new energy-savingtechnologies, processes, and materials, constantlyenhancing its level of energy management. Theenergy management objectives are annually updatedand integrated into performance assessments.
Note: The statistics are based on Yuwell Medical's parent company.
Note: The greenhouse gas emission indicators follow guidelines from the World Resources Institute (WRI) and the World Business Council forSustainable Development (WBCSD), includingGHG ProtocolandSpecification with Guidance at the Organization Level for Quantification andReporting of GHG Emissions and Removals.The emission factor for outsourced electricity in the Scope 2 category, according to the noti?cation byChina's Ministry of Ecology and Environment (HBQHH [2023] No. 43), is 0.5730 CO
/MWh.
Energy and CarbonManagement
Energy Management Goals
IndicatorGoal RequirementsAchievement Status
Yuwell Medical's parentcompany has obtained
ISO 50001 EnergyManagement Systemcerti?cation
Comprehensive EnergyConsumption per Unit of Output
≤6.08 kg standard coal/RMB10,000
5.66 kg standard coal/RMB
10,000Air Compressor
E?ciency ≥85%, pressure ≥0.75, exhaust temperature<100°C
Pressure 0.75, exhaust
temperature 80°CPower Supply and DistributionPower factor ≥96%, line loss rate < 5%Power factor 97%Ground Source Heat PumpE?ciency COP ≥5.4E?ciency COP ≥5.6
Screw ChillerE?ciency COP ≥5E?ciency COP 5.3
Energyuse andgreenhousegas emissions
GasolineTons76.40DieselTons33.27Natural gasCubic meters (×10,000)86.23Outsourced electricityKilowatt-hours (×10,000)3,492.32Total energy consumptionTons of standard coal5,600.27Energy consumption intensity
Tons of standard coal/RMB10,000 revenue
0.0070
GHGEmissions
Direct greenhouse gas emissions (Scope 1)Tons of CO
equivalent2,201.36Indirect greenhouse gas emissions (Scope 2)Tons of CO
equivalent19,916.69Total greenhouse gas emissions (Scope 1 and 2)Tons of CO
equivalent22,118.05Greenhouse gas emission intensity
Tons of CO
equivalent/RMB10,000 revenue
0.0277
Energy Management StrategyYuwell Medical is spearheading the development of a comprehensive big-data platform for energy management. This platformintegrates data collection, process monitoring, and energy management into a unified system that utilizes various levels ofmetering equipment for centralized monitoring of diverse energy media and key energy-consuming devices. This integrationfacilitates a seamless closed-loop management system spanning energy planning, statistics, analysis, and assessment, ensuringthe energy system operates safely, reliably, economically, and e?ciently. This transformation shifts energy management practicesfrom empirical to analytical and from manual processes to digital solutions.
Grounded in statistical accounting and enhanced by monitoring integration, this strategy oversees the implementationof energy plans, incorporates control adjustments, and intensi?es thematic analysis centered on energy indicators, thussupporting energy forecasting, decision-making, and performance evaluation.
Monitoring IntegrationEnergy Forecasting
Energy Indicators
EnergyForecasting
Energy Decision-
making
Pre-planning
In-processAccounting
In-processControl
Post-analysis
Post-assessment
Statistical AccountingEnergy Planning
Energy Decision-makingControl AdjustmentsThematic AnalysisPerformance Evaluation
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Leveraging information technology and big data analysis, we perform real-time monitoring of energy consumption status, unitenergy data, trends, and operational parameters through the smart energy online monitoring system. This helps guide and ?ne-tuneproduction, management, and processes e?ciently, ensuring precise energy control.Real-time energy consumption monitoring: We collect andanalyze the energy consumption of major equipment inreal time through our online monitoring system, promptlyidentifying unusual consumption patterns.
Energy visualization analysis: We conduct in-depth analysisof energy data to discern consumption trends and changesacross various areas and time periods. This helps usidentify opportunities for energy-saving improvements anddevelop more e?ective energy-saving strategies.
Energy Saving Management
High-energy-consuming, ine?cient, and outdated equipmentis replaced with systems that incorporate more efficientproduction technologies and processes, enhancing energyutilization and reducing operational emissions.
All operational sites are equipped with intelligent central energysystems, creating a low-consumption, comfortable environment.The implementation of frequency conversion projects forchiller units has transformed traditional ?xed-frequency chillersinto variable-frequency units, achieving an annual reduction of992,000 kilowatt-hours in electricity consumption.Workshop lighting has been entirely upgraded to energy-efficient fixtures, achieving a 100% usage rate. This iscomplemented by zoning and group controls to minimizeelectrical waste further.
Technological Energy Savings
5655
Through initiatives such as expanding photovoltaic powergeneration and acquiring green electricity, the proportion ofclean and renewable energy usage is gradually increased.Nine rooftop areas at our factory site have been utilizedfor the 5.724MWp Distributed Commercial and IndustrialPhotovoltaic Power Station Project, generating 7.605million kilowatt-hours of electricity in 2023.Yuwell Medical's cafeteria has transitioned to using cleanenergy natural gas instead of electricity and liquefiedpetroleum gas, further supplemented by solar energy toreduce electricity consumption.
Optimizing Energy Usage Structure
The Heyang photovoltaic project, with an installed capacity of
5.724MWp, generated 7.605 million kilowatt-hours of electricity in
2023, surpassing the annual target of 5.884 million kilowatt-hours.
Annual funding is allocated for water-saving projectconstruction and technological upgrades, encompassingthe utilization of water-saving equipment. Advancedforeign spray equipment is procured to automaticallydetect greenery conditions and irrigate as necessary,thereby enhancing water resource utilization whileensuring the preservation of green spaces.Rainwater collected in rainwater collection tanks isdirected to the factory pond to irrigate factory greenery.Through the collection of natural rainfall, 1,250 tons ofwater can be conserved annually.Regular water-saving education campaigns are conductedto disseminate knowledge regarding water-saving laws,regulations, methods, provisions, and standards, as wellas to popularize water-saving scientific knowledge andenhance water-saving awareness among all employees.
Regular inspections and maintenance activities are carriedout based on detailed supply and drainage networkdiagrams and metering networks. Original records andstatistical ledgers are regularly standardized and analyzed.Internal quota management is enforced, incorporatingrewards for savings and penalties for exceeding.
Reducing Environmental Impact
Water ResourceManagement
Yuwell Medical primarily employs municipal water for both productionand o?ce purposes, situating its major production and operational sitesin regions with low water resource risks. The Company rigorously adheresto theWater Law of the People's Republic of China, as well as local laws,regulations, and standards. TheJiangsu Yuyue Medical Equipment &Supply Co., Ltd. Water Conservation Management Systemhas beenformulated, alongside the management of water use planning. Thisencompasses the development of water-saving and annual water useplans, the assignment of responsibilities to key water departments, andthe designation of dedicated personnel for management. Additionally,Yuwell Medical actively promotes production process optimization,equipment process enhancements, and the sustainable utilization ofwater resources. During the reporting period, Yuwell Medical conducted anevaluation of water-saving enterprises in accordance with theEvaluatingGuide for Water Saving Enterprises(GB/T7119-2018), successfully meetingall basic requirements, management assessment indicators, and technicalspeci?cations, thus earning classi?cation as a water-saving enterprise.
QuotaManagement
Water-savingRenovation
Rainwater
Reuse
Water-savingPromotion
Water intake
tons561,377.9
Water consumption intensity
tons/RMB 10,000 revenue
0.70
Recycled water volume
tons
5857
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Yuwell Medical adheres to a clean and green production and operation model, strictly adhering to relevant laws and regulationssuch as theRegulation on the Administration of Permitting of Pollutant Discharges. The Company has developed anEHSManagement Manualto rigorously manage exhaust gas emissions, wastewater discharge, and solid waste disposal. Pollutionprevention facilities are concurrently designed, constructed, and put into operation with main projects. Qualified third-partytesting agencies are regularly commissioned for self-monitoring, and environmental monitoring information is promptly disclosedto ensure a 100% compliant discharge of all types of waste and to minimize the environmental impact of emissions. During thereporting period, no significant environmental incidents occurred, and no administrative penalties or criminal liabilities wereimposed by relevant ecological and environmental departments due to major environmental incidents. Moreover, there were noinstances of exceeding emission standards or illegal discharge of exhaust gas or wastewater pollutants.
Emissions and Waste Management
Wastewater primarily originates from domestic sewage, R&D, and manufacturing. YuwellMedical strictly complies with theLaw of the People's Republic of China on Water PollutionPrevention and Control, Integrated Wastewater Discharge Standard, The Reuse of UrbanRecycling Water-Water Quality Standard for Industrial Uses,and local standards. AWastewater Management Systemhas been formulated to enhance online monitoring andregular inspections, enforce strict discharge management of wastewater generated duringproduction operations, and ensure compliance with sewage treatment, discharge, andrecycling regulations. The Company implements a rainwater and sewage diversion system,directing rainwater into the municipal rainwater drainage network, with part of the productionwastewater recycled for production and the remainder discharged externally. High-concentration organic wastewater from production undergoes pretreatment and is combinedwith various cleaning waters and alkaline scrubber wash wastewater into a mixing tank. Afterharmless treatment, 60% of the wastewater is discharged into the municipal sewage network,while the remaining 40% enters the recycled water treatment system. Once treated to meetstandards, it is reused for production line rinsing, saving 4,380 tons of water annually.
Wastewater Management
Exhaust gas emissions mainly comprise volatile organic compounds, nitrogen oxides, sulfur oxides, and particulate matter generatedduring the production process. Yuwell Medical strictly complies with theLaw of the People's Republic of China on the Prevention andControl of Atmospheric Pollutionand local atmospheric pollutant emission standards. Following the management requirements ofthe internalExhaust Gas Management System, the overall emissions of the factory area are controlled to ensure compliance aftertreatment by the exhaust gas treatment device. Monitoring sampling holes are installed at emission outlets to regularly monitor keyparameters such as gas composition, concentration, and ?ow rate, thereby preventing risks of exhaust gas emissions.
Exhaust Gas Management
Yuwell Medical strictly adheres to theLaw of the People's Republic of China on the Prevention and Control of Environmental Pollutionby Solid Wasteand requirements of other relevant laws and regulations, formulating theGeneral Solid Waste Management System
andHazardous Solid Waste Management System. It establishes rigorous solid waste disposal processes and safety operationstandards, follows the principles of reduction, resource utilization, and harmlessness, and controls waste rigorously throughout theentire process from production, storage, and transportation to disposal. During the reporting period, the Company did not experienceany illegal events related to waste disposal.
Solid Waste Management
Hazardous solid waste includes ?lter bags, sludge, activated carbon from exhaust gas treatment, ?lter cotton waste, packagingdrums containing chemicals, waste machine oil, emulsion waste, oil sludge, etc. The Company sets up hazardous wastewarehouses with waterproof and anti-leak measures. Hazardous waste is classified, stored temporarily, and supervised bydedicated personnel according to theStandard for Pollution Control on Hazardous Waste Storage(GB18597-2023). Quali?edunits with professional disposal quali?cations are regularly commissioned to safely and e?ectively dispose of hazardous waste,with transfer forms synchronously submitted to the national management platform upon completion.
Non-hazardous solid waste includes scrap metal scraps, metal dust, welding slag, ?lter cores, resin powder, activated carbonfrom wastewater treatment, and general material packaging drums. The Company achieves paperless operations by displayingreal-time material inventory receipts and issues via wireless electronic ink screens. General production solid waste is collectedand recycled as renewable resources by waste collection stations. For domestic solid waste and household garbage, it iscollected uniformly and regularly cleared by the sanitation department.
Hazardous Waste
Non-Hazardous Waste
Comprehensive utilization rate of general solid wasteTotal discharge of non-hazardous wastetons
Achievedcompliance in wastewater, exhaust gases,and noise emissions in 2023
100%
Waste emission target for 2024: Reduceper-unit product emissions by
compared to 2023
2.5%
Wastewater discharge volume
tons
3,566
245.58100%
Annual reduction in hazardous waste by collaboratingwith comprehensive utilization and disposal entities
tons
Total discharge of hazardous waste
tons
48.38
6059
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Proportion of female employees in middle and senior management
Charitable donations: RMB
million
Average annual training duration per employee
hours
Achieving the Value of LifeTalent-oriented:
24.7
27%
42.874
6261
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Talent Acquisition and Retention
As a talent pool for our future management trainees, we systematically advance our annual recruitmentplans for fresh graduates and interns, proactively connecting with over 30 universities nationwide.Through a blend of online and offline recruitment efforts, we offer competitive career developmentopportunities to recent graduates.We actively partner with external professional recruitment websites to display crucial information about ourcompany culture, values, and work environment. By showcasing our corporate brand, employee work styles,bene?ts, training opportunities, and promotion channels, we keep enhancing our attractiveness as an employer.Considering the dynamics around our global manufacturing base in Danyang, we actively bolster ourlocal employer brand through regional talent networks and community outreach, e?ciently meeting ourrecruitment needs for general labor.We have established systems for internal referrals and competitions, encouraging employees torecommend competent and ethical colleagues, allowing more employees with both moral and technicalskills to emerge.
Growing Together withEmployeesYuwell Medical views human capital as a primary driver ofsustainable development. We are dedicated to providinghigh-quality, cost-effective services to customers, continuallyenhancing our core competitiveness, and achieving sustainable,positive growth. We concentrate on talent acquisition andretention, re?ning our compensation and performance systems,respecting employees' rights and interests, and fostering afavorable, open work environment. We ensure the health andsafety of our workplace, promote our strategic talent reserveplan, and clarify dual career paths for employees. We committo transparent and fair practices in talent identification andselection, actively develop and enhance employee skills,enabling them to leverage their strengths and add value. We aimto create a nurturing environment, offering care and supportto our employees, promoting growth in a diverse and inclusivesetting, and achieving mutual integration and success betweenemployees and the enterprise.
Talent AttractionAligned with strategic and business planning, Yuwell Medicaldevelops medium- and long-term human resources plansand actively explores talent management strategies. Weprecisely target talent acquisition channels through campusrecruitments, online platforms, and internal referrals, whiledeepening our talent retention strategies to cultivate aprofessional, international workforce.Yuwell Medical adheres strictly to theLabor Law of thePeople's Republic of Chinaand theLabor Contract Law ofthe People's Republic of China, among other relevant lawsand regulations. We have established systems for internalreferrals, internal competitions, and rehiring employees,adhering to principles of openness, fairness, comprehensiveassessment, and both moral and technical excellence. Thesesystems provide employees with platforms to showcasetheir talents. During the recruitment process, the Companyrigorously complies with local laws and regulations, and has
developed multiple management systems, including theEmployeeHandbookandYuwell Medical Recruitment Management System,to standardize recruitment and onboarding processes, eliminate allforms of discrimination and bias, and ensure the legality, fairness,and equity of the recruitment process. In recent years, YuwellMedical has achieved significant success in talent recruitmentand management, earning accolades such as Best Employer ofthe Year, Outstanding Human Resources Management Award, andMost Talent-Loving Employer.Yuwell Medical has attached importance to employee needs.As our team has expanded and become younger in recentyears, the Company has grown and created open, flexible officespaces, fostering a modern, liberating work environment. Thissetting enhances comfort, facilitates communication, and boostscollaboration, dedicated to providing employees with a physicallyand emotionally gratifying, safe, and healthy work experience.
CampusRecruitmentOnlineChannelsRegionalChannelsInternalChannels
6463
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Regarding campus recruitment, Yuwell Medical has recruited over 250 new graduates since 2021. In 2023 alone, we employed morethan 166 interns and fresh graduates, with 42 entering our 2023 Management Trainee Program. The Company and its subsidiariessystematically advance recruitment plans for new graduates and interns, actively engaging with prestigious domestic universitiessuch as Nanjing University, Southeast University, China Pharmaceutical University, Nanjing University of Science and Technology,Nanjing Medical University, and Soochow University. These e?orts lay the groundwork for building our talent pipeline.Furthermore, to expand the scope and depth of our collaboration with universities and drive high-quality integration of industryand academia, the Company actively collaborates with universities and research institutions on R&D projects. We have establishedemployment and internship bases in partnership with institutions such as Beijing Institute of Technology, Southeast University,University of Shanghai for Science and Technology, Hohai University, Nanjing University of Posts and Telecommunications, andJiangsu University. These collaborations include joint technical research institutes, facilitating the rapid transformation andimplementation of advanced achievements, and promoting innovation within the industry.
Labor Rights and InterestsYuwell Medical adheres to national laws and regulations, including theLabor Law of the People's Republic of China, the CompanyLaw of the People's Republic of China, and the Labor Contract Law of the People's Republic of China, as well as relevantconventions of the International Labour Organization. The Company has formulated internal protocols and implementation rules,
Complying with theLabor Law of the People's Republic of China, Yuwell Medical aligns with the Company's "performance-evidenced" culture and management requirements to organize and establish theInterim Measures for Yuwell Medical'sCompensation Management System. This system is constructed around business characteristics and performance-drivenevaluation and incentive mechanisms, constantly improving compensation management and bonus distribution plans to ensureemployees are fairly compensated in relation to their work outcomes.The Company's compensation system consists of a ?xed salary, variable performance bonuses, and long-term incentives, linkedthrough a mechanism that correlates with company performance, organizational e?ectiveness, and individual employee results.Variable performance bonuses and long-term incentives are aligned with company and departmental performance targets, setaccording to employee role categories and output contributions, e?ectively driving employees to meet performance objectives andconsistently enhancing output and retention of key sta?. Based on market trends and industry practices, combined with companyperformance, the compensation plan is determined to enhance the overall competitiveness of the Company's remuneration.Additionally, Yuwell Medical has established an employee stock ownership plan for core sta?, o?ering stock incentives that aligntheir personal gains with the Company's long-term goals and bene?ts, thereby motivating employees to focus on and support ourlong-run development, fostering a positive organizational culture, and promoting sustained and e?ective growth.Yuwell Medical respects the rights of its employees to participate, express themselves, and oversee operations. We facilitatevarious platforms for this, including face-to-face communication with the Chairman, 360-degree evaluations for management,communication meetings, internal complaint channels, and internal forums. We have established internal protocols, such as theEmployee Complaint Management Procedure, Yuwell Medical Supervision Management Measures, andYuwell Medical ReportingManagement System, to provide avenues for communication, dialogue, and appeal. Employees are encouraged to contribute ideasand suggestions on company management to ensure mutual understanding and address their needs. The Company maintainsstrict confidentiality regarding employee complaints, reports, and grievances, prohibiting any retaliation against legitimatecomplaints. Violations of this policy will result in disciplinary action, and severe cases may lead to legal consequences.
Employee Compensation and Incentives
Employee Communication
Labor contract signing rate
Number of employees recruited during the reporting period
Number ofdiscrimination incidents
Employee Distribution by Region
Employee Distribution by Gender
Male
56.95%
43.05%
Female
Employee Distribution by Age
Below 30 years old
63.82%
10.24%25.94%
30-50 years old51 years old and aboveEmployee Distribution by Hierarchical Level
92.79%
2.21%
5.00%
Senior managementMiddle managementGrassroots employees
Employee Distribution by Education
Bachelor's degree or above
40.46%
25.50%
34.04%
College degreeBelow college degree
Chinese employees (includingemployees from Hong Kong,Macao, and Taiwan)
98.46%
1.54%
Overseas employees
Internal Publication
Yuwell New Horizon360-degree Evaluation
for Management
Employee Forum"Fish Pond"
Face-to-faceCommunication Meetingswith the Chairman
This platform disseminates company developments, product information, managementstrategies, and shares employees' exemplary deeds and insights.
The Chairman and General Manager engage in direct communication with key employeesfrom various departments, fostering open discussions on organizational, business,cultural, and other topics while attentively listening to employees' opinions.
Comprehensive surveys are conducted among the manager's superiors, peers, subordinates,and collaborators to gather extensive feedback on the manager.
This platform enables all employees to express themselves freely, with an o?cial accountdesignated to provide uni?ed and timely responses to topics of employee concern.
1,247
Number of newly recruited graduates
100%0
including theAnti-Discrimination Management Procedure,Labor Employment Procedure, Special Working EnvironmentAssessment for Female Workers, Management of Child andMinor Workers, Yuwell Work Injury Management Measures,andEmployee Handbook. These measures aim to complywith human rights protection policies and regulations,clarify the code of conduct and requirements for employees,prevent potential human rights risks, and provide reliableprotection for employees' rights and interests.
6665
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Yuwell Medical places great importance on listening to employees' voices and hasestablished a robust communication and feedback mechanism. Since 2020, theCompany has conducted annual organizational climate surveys, comprehensivelylistening to employees' genuine voices and demands across six dimensions: "jobresponsibilities, supervisor support, team collaboration, cultural identity, businessprocesses, and learning & growth." The feedback rate for 2023 was 84.6% (a 12.6%increase from the previous year), with an employee satisfaction rate of 83.6% (a 5%increase from the previous year). Through continuous internal feedback, exposure,and resolution of management issues at all levels, the Company has been improvingits management level, enhancing employee experience, and fostering collaborativedevelopment between the organization and its employees.
Employee satisfaction rate
Building upon the national basic social security system and tailored to the Company'sspecific circumstances, we keep enhancing our welfare offerings, ensuring a robustand diverse package for our employees. We procure accidental injury insurance for ourworkforce, support those in need with government subsidy applications, and promotethe integration of talent within the community. Apart from statutory holidays and annualleave, we o?er additional home leave for expatriate employees and arrange for annualphysical examinations, holiday gifts, sick leave allowances, and team-building activities,all in the pursuit of fostering a supportive and nurturing work and life environment.Moreover, the Company encourages employees to pursue academic and professional skilladvancement during their spare time, reimbursing tuition fees for educational endeavors.Presently, we have sponsored 25 individuals for further education, empoweringemployees with greater opportunities for career development and advancement.
Welfare Guarantee
At Yuwell Medical, we prioritize the professional growth of our employees by establishing a fair platform for their development.We consistently enhance our talent cultivation framework, devise and enact policies that support career advancement, and createopportunities for internal mobility. We encourage self-motivated and collaborative learning, champion the concept of lifelongeducation, and thus elevate the professional competencies, skill sets, and overall management capabilities of our sta?.
Employee Training and Development
Employee Training System
Talent Development Channels
In alignment with the Company's strategic focus on customer orientation, digitization, and youth engagement, Yuwell Medical hasestablished the Yuwell Learning Development Center to continually bolster the competitiveness of our talent. By collaboratingclosely with various business units and leveraging online learning platforms, we have created professional and management talentcultivation systems tailored to the Company's future strategic needs, including systems for new hires (via social recruitment andmanagement trainee programs). Our learning solutions, integrating training and practice across diverse formats and scenarios,constantly boost employee engagement and learning e?ciency, enhancing their professional and managerial skills.
Yuwell Medical adheres to a talent strategy primarily focused on internal development supplemented by external recruitment.Relying on three major talent cultivation systems, we have constructed a dual-channel talent development framework. This assistsemployees in aligning their individual characteristics with both professional and managerial growth, better ?tting their personalcareer goals and organizational needs. For professional roles, we have established a quali?cation system and customized varioustalent development programs to help employees clarify their positioning and capability gaps, planning personalized developmentpaths. For management roles, we consistently conduct talent reviews aligned with business planning, and develop layeredmanagement training programs by combining training with practices. This approach selects and trains reserve leaders whileenhancing the leadership skills of current managers.
Online Learning Platform: Yuwell Academy
Professional Capabilities
New Hires Training System (Social Recruitment & Management Trainees)Course Resource ManagementInstructor Team ManagementTraining Project Management
LeadershipPioneering
R&DSustaining
Progress
Marketing
Setting Sail
ProductionEmbarkingFunctionality
Management talentcultivation system
Professional talentcultivation system
Senior manager Wharton study tourDepartmental team buildingHigh-potential talent developmentProfessional skills trainingOn-the-job leader trainingPosition certi?cation training
New manager transitionProfessional learning maps
Leadership
MarriageMarriage LeaveHousingHousing Provident FundHealth
Annual Physical Examinations, Sick LeaveAllowance, High-Temperature Allowance
Childbirth
Prenatal Check Leave, Maternity Leave,Paternity Leave, Parental Leave
FestivalsHoliday Gifts
Learning
Educational Advancement, ProfessionalSkill Enhancement
Insurance
Social Medical Insurance, EmployerLiability InsuranceActivities
Holiday Events, Game Competitions,Basketball Competitions, Annual Meetings,Family Open Days, Team BuildingRetirement
Commemorative Gifts, RetirementCommemorative Certi?cates, SocialPension Insurance
83.6%
6867
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Talent Cultivation Projects
New Employee Training
Yuwell Medical develops distinctive talent cultivation programs with a product-oriented mindset, integrating training with real-world challenges. Based on management levels, we have established four major training plans: Embarking, Setting Sail, SustainingProgress, and Leadership Pioneering, covering new hires/management trainees, grassroots leaders, high-potential talents, andmiddle-to-senior managers, conducting personalized training activities. We primarily utilize internal courses and instructors,supplemented by external resources. Through internal instructor development, we summarize business and managementexpertise, consolidating and replicating exceptional organizational experiences and capabilities. Additionally, by inviting externalindustry experts to teach and visiting external companies, we assimilate superior business and management knowledge.Collaborations with universities and research institutions help attract and develop high-quality talents, enhancing the employerbrand and our research capabilities.
Yuwell Medical prioritizes the development of new employees. By implementing the online New Employee Learning Program,we quickly engage with employees upon their onboarding to ensure they promptly acquire essential corporate knowledge.Additionally, through o?ine group training sessions, we help new employees systematically learn about our business processesand product knowledge, facilitating their understanding and integration into our corporate culture. In 2023, we conducted 55 newemployee training sessions, covering over 1,300 new hires.
Investment in Employee training: RMB
Total training duration
hours
Total attendance of training throughout the year
Annual average training hours per employee
hours
The Yuwell Star Program is the Company's management trainee initiative, a key project to attract innovative talent and cultivatefuture core leaders. The program includes various training forms such as Pre-employment Online Classes, Yuwell Star ProgramOnboarding Bootcamp, Dual Mentorship in Business +BP, and the Yuwell Star Program Career Advancement Camp. With an OMO(Online-Merge-Offline) hybrid training model, we consistently support the growth and development of management trainees,aiding their professional advancement and career transition.
Yuwell Star ProgramCase
As of the end of 2023, the Company had successfullydeveloped more than
management trainees fromcampus recruitment, with many of them nowoccupying key positions within the Company.
Leadership Training
Professional Training
Yuwell Medical remains committed to the internal selection and development of its leaders. Through a variety of educationalmethods, including in-house course development, training and practical exercises, and overseas study tours, we have establishedtiered management training programs to enhance leadership skills and strategic insight.
Yuwell Medical conducts specialized professional training across its R&D, production, and marketing systems. For key roles, wecreate job-specific learning paths and specialized training projects to help employees improve their core competencies andteamwork abilities, thereby infusing new energy into business development.
In line with the Company's internationalization strategy and aiming to enhance the global leadership capabilities of its top executives,Yuwell Medical has established a strategic partnership with the University of Pennsylvania's Wharton School, one of the world's leadingbusiness schools. Together, we have launched the Yuwell & Wharton Global Leadership Program to provide the Company's seniormanagement with a platform for learning world-class business expertise. The program is conducted in the form of study tours, leveraging
In order to boost the Company's product R&D capabilities, the Yuwell Learning and Development Center has spearheaded thecreation of a tailored training program. This initiative draws from the development and evolution case studies of the Company'sproducts and focuses on hands-on training projects to deliver targeted skill development. In our R&D system, we have establisheda professional qualification framework and a job learning roadmap to help R&D specialists enhance their specific skills andexpertise. Training for key operational personnel is managed by the team managers, and employees can only begin their dutiesupon passing the required evaluations. For certain specialized positions, certi?cation is required, with credentials issued by third-party organizations or obtained through pre-job training.
Yuwell Medical's Wharton Study Tour Program
Quali?cation and Capacity Building in the R&D System
Case
Case
In 2023, our R&D system conducted two sessions of theExcellent Project Manager Training Camp for key roles of R&Dproject managers. This program focused on building corecompetencies in project management, team management,product line planning, and system design. By employing avariety of methods including lectures, hands-on practice,periodic evaluations, skill discussions, and case studies, thetraining helped project managers quickly master essentialjob skills and improve their job competency.
million
10.0767
171,780
34,356
24.7
the expertise of the faculty team from the Wharton School ofthe University of Pennsylvania. It offers training and learningopportunities in various dimensions such as leadershipdevelopment, technological innovation, and cutting-edgemedical knowledge. By the end of 2023, the program hadsuccessfully completed two phases, engaging more than 50senior executives and top talents within the Group. Furthermore,we support employees in pursuing part-time graduate studiesor MBA programs. Employees who successfully pass their examsand get accepted will have their training costs covered by theCompany, which motivates them to continually enhance theirskills and achieve personal growth.
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Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Academic ExchangeYuwell Medical prioritizes research funding and vigorously engages in academic exchanges with external research bodies andhigher education institutions. In 2023, we collaborated with external professional organizations and invited leading industry expertsas guest lecturers to conduct numerous external exchanges and training sessions for various departments and subsidiaries withinthe Group. These e?orts signi?cantly contributed to sparking team innovation, expanding the vision of our technical sta?, acquiringthe latest advancements, and enhancing knowledge exchange and sharing among our employees.
The Yuwell Learning and Development Center, in collaborationwith the Medical School of Jiangsu University, has assembleda distinguished team of professors from Jiangsu Universityand experts from the medical industry to conduct the YuwellMedical Health Management and Respiratory Oxygen TherapistTraining Course. The training course concentrated on thetreatment of home respiratory and oxygen therapy, along withchronic disease management, from both domestic and globalperspectives. It presented scienti?c theories, dissected crucialtechniques and methods, tracked the latest internationalresearch advancements, and discussed pathways for thedevelopment of the health industry. Moreover, the trainingcourse o?ers a specialized training platform for participants toenhance their clinical knowledge in home ventilator therapy,oxygen therapy, and chronic disease management, while alsoimproving their technical pro?ciency and practical skills.
Since 2023, Yuwell POCTech has established industry-university-research collaboration projects with the University of Shanghaifor Science and Technology and the Nanjing University of Posts and Telecommunications to build internship research basestogether. This initiative focuses on talent development, technological innovation, and industrial upgrading. It aims to helpuniversity students understand industry trends and corporate dynamics while facilitating the sharing of the latest industry researchachievements between enterprises and universities. Through talent interchange, the initiative champions technological progress.
Health Management and Respiratory Oxygen Therapist Training Course
Industry-Academia-Research Collaboration Projects of Yuwell Medical's POCTech Team
Case
Case
Yuwell Medical is committed to building a performance-orientedcorporate culture that fosters a positive working atmosphereand shared values. Performance management serves as acrucial link in executing operational plans and aligning themwith corporate strategies. Annually, the Company breaks downits strategies, ensuring they are implemented at every levelof the organization, from departments to teams, and downto each employee. This structured approach guarantees thatboth individual and departmental performances align withthe organizational strategic goals. Ultimately, this convertscorporate strategies into daily activities for each employee,ensuring the successful implementation and achievement ofdesired outcomes.The Company actively promotes a correct understandingof performance management among all employees byestablishing effective communication mechanisms andthoroughly disseminating its principles. For high-performingemployees, we employ a combination of material and non-material incentives to maximize their motivation. For thosewith less satisfactory performance, we promptly create e?ectiveimprovement plans to facilitate rapid progress. Additionally,mechanisms for performance appeals, disciplinary complaints,and investigative interviews are implemented at every stage
Performance Evaluation and Feedback for Employees
Improve the Management Mechanism
to protect the rights and interests of all employees and ensurethe objectivity, fairness, and integrity of the performancemanagement system.For mid and senior-level employees, Yuwell Medical implementsa 360-degree evaluation system. The assessment includesdistributing survey questionnaires to the evaluated individuals'supervisors, colleagues, subordinates, and collaboratingdepartments. This system is divided into three main stages,covering the entire process of the performance evaluationsystem to enhance the fairness of performance assessments.In the preparation phase, di?erentiated survey questionnairesare designed based on the assessment objectives for variousgroups; all related individuals, including evaluators and thosebeing evaluated, are introduced to the 360-degree tools. Duringthe assessment phase, the process is conducted anonymouslyto strictly maintain privacy rights and the confidentiality ofassessment reports, fostering a relaxed and free assessmentenvironment. In the feedback phase, through feedback fromall sides, evaluated individuals receive insights and coaching,helping them understand their strengths and weaknessesmore comprehensively, recognize the Company and superiors'expectations, and identify gaps, encouraging them to definedirections for future improvement and development.
Investment in health and safety: RMB
Total number of specialized training sessions conductedacross all production systems throughout the year
The coverage rate of healthand safety training
Number of work-relateddeaths among employees
The parent company of Yuwell Medical obtained the ISO
45001 Occupational Health and Safety ManagementSystem certi?cationmillion
Occupational Health and Safety
4.46
66100%0Note: The statistics are based on Yuwell Medical's parent company.
Yuwell Medical strictly abides by the laws and regulations including theWork Safety Law of the People's Republic of China, theLaw ofthe People's Republic of China on Prevention and Control of Occupational Diseases, theFire Protection Law of the People's Republic ofChina, theRegulations on the Safety Management of Hazardous Chemicals, and theProvisions on the Administration of OccupationalHealth in Workplaces. Additionally, the Company adheres to the requirements of the ISO 45001 management system and establishedrules and regulations such as theEHS Management Manualand theMeasures for Management of Work-related Injury Accidents. Thegeneral manager is in charge of the Company's safety production, identifying and preventing health and safety risks.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.
Ensuring the Health of Employees
Yuwell Medical places a high emphasis on enhancing employees' awareness and understanding of safety issues. The Companyconducts three types of safety education for all employees and establishes both online and o?ine learning platforms to increaseproduction efficiency and competitiveness, all while ensuring the personal safety of its employees and others. We have alsoimplemented a proactive safety mechanism at production sites, including graded safety measures. At high-risk work areas andlocations, safety reminders and barriers are in place, and optical grating sensors are installed on machines like stamping pressesand bending equipment to prevent mechanical injuries. Additionally, regular health screenings are organized for employees toprevent occupational diseases and sudden illnesses, and safety hazards are regularly identified and mitigated to continuallyimprove the working environment for employees.We have made the promotion of our production safety management mechanisms a standard practice. In line with productionschedules, we regularly hold training sessions to ensure that key position employees clearly understand their safety responsibilitiesand that the management team enforces critical policies, thereby protecting the occupational health and safety of our employees.
Two fire protection drills covering allemployees are held regularly every yearto enhance employees' awareness offire protection. Additionally, promotionand training for fire protection andtra?c safety are conducted periodically,with a total of 13 training sessions heldthroughout the year, accumulating 1,288attendances.
Fire protection training site
Providing ?rst aid training to in-house sta?
Correct usage of cardiopulmonaryresuscitation and AED are compulsorycourses for all our employees. A totalof 6 training sessions were conductedthroughout the year, with 308 attendances.Online first aid courses have beenlaunched, with 337 people completing thetraining and examination.
Training for Production Safety
Promotion and Training for FireProtection and Tra?c Safety
Training for First Aid
Visiting retired employees andemployees in need
Giving gifts to female employees onInternational Working Women's Day
Establishing Yuwell Charity Foundation to helpemployees with family di?culties every year
Inviting employees' families to visitthe Company on Yuwell Family Day
Humanistic Care
Yuwell Medical has always been committed to the health and happiness of itsemployees, advocating the philosophy of working hard and living happily. Weencourage a balance between work and life to create a harmonious and healthywork environment, and o?er comprehensive humanistic care to our employees invarious ways. For their physical and mental well-being, we regularly organize sportscompetitions and cultural activities to provide relaxation and adjustment. In termsof daily life, we actively provide various convenient services. In terms of employees'families, we create a Home for Employees and build a warm and happy workplacethrough a series of actions such as support visits, and love funds.
Building a Happy Yuwell
2023 Sustainability Report
2023 Sustainability ReportJiangsu Yuyue Medical Equipment & Supply Co., Ltd.
Diversity and Equal OpportunitiesYuwell Medical adheres to international human rights norms such as theInternational Bill of Human Rights, theInternational Labour Convention,theILO Declaration on Fundamental Principles and Rights at Work, andtheUnited Nations Guiding Principles on Business and Human Rights,as well as the laws, regulations, and policies of the locations in which itoperates. Adhering to the principles of openness, fairness, and justice,Yuwell Medical rigorously standardizes the entire talent recruitmentprocess. The Company ensures there is no discrimination based ongender, education, age, race, family status, religious beliefs, or culturalbackground. It strictly forbids child labor, forced labor, and any otherillegal employment practices, as well as those that contravene policyregulations, ensuring equal employment and development opportunitiesfor every employee. During the reporting period, Yuwell Medical hasnot encountered any incidents involving child labor, forced labor, oremployee discrimination.We create a healthy, comfortable, youthful, and modern workingenvironment for all employees. Annually, the "618 Online ShoppingFestival" and "Double 11" events become company-wide effortsof collaboration and hard work. We also organize activities such asInternational Women's Day events, the Yuwell Chairman's Cup BasketballTournament, and the Yuwell Supercar Mini Team each year, promoting aphilosophy of "diversity and inclusion, hard work, and happy living."The Company makes every e?ort to create a diverse, equal, and inclusiveworking atmosphere by regularly conducting communication betweensuperiors and subordinates, HRBP interviews, and team activities. Thisstrengthens communication and understanding among employees,promoting cultural integration and more efficient team collaboration,thereby creating a diverse, equal, and inclusive working atmosphere. Ontop of that, the Company promotes inclusive workplaces for individualswith disabilities, helping more of them achieve dignified employment.By the end of 2023, the Company had a total of 135 ethnic minorityemployees and 14 employees with disabilities.For female employees, Yuwell Medical provides equal careeropportunities and guarantees equal salary and bene?ts. The Companyseeks a female-friendly working environment by providing materialwelfare and improving relevant systems to promote diversity andinclusiveness in workplaces. We ensure that female employees enjoy fullprenatal check-up leave, maternity leave, and breastfeeding leave, andencourage male employees to take parental leave during their spouses'childbirth. After returning to work, female employees are given thenecessary time based on their physical condition and are encouragedto gradually resume their duties and take time to adapt to the workstatus after returning from childbirth. Yuwell Medical also provides fairtraining and promotion opportunities for female employees to acceleratetheir progress and enhance their diversified skills. Female employeesare encouraged to break through career ceilings, take on key positions,assume important roles, and explore more possibilities for careerdevelopment in the Company.
As a company advocating fairness, our Thai branch strictly adheres to the principles of equality, con?dentiality, respect, and anti-harassment in the talent recruitment process, providing a fair employment environment for every quali?ed candidate. During theinterview, it is prohibited to inquire about religious beliefs, family status, age, and other information of the interviewees to avoidimplicit discrimination caused by stereotypes. After employees are hired, the Thai branch organizes birthday parties and holidayevents to help employees better integrate into the team and adapt to the corporate culture. It endeavors to build diversity whileworking to be closer to employees and create a diverse and inclusive working environment.
Diversi?ed Measures Adopted by Yuwell Medical's Thai BranchCasePercentage of female employeesamong reserve management talent
The proportion of female employeesin middle and senior management
Percentage of female employees intechnology R&D roles
Hosting YUWELL DAY to strengthen sta? unity
35%
29%
29%
2023 Sustainability Report
SafeguardingLife and Health
Guided by the mission of Alleviating patient suffering and enhancing doctors'medical skills, Yuwell Medical constantly explores philanthropic models thatalign with the development of the times and social demands. With our expertisein medical devices and industry experience, we are committed to fulfilling ourcorporate responsibilities.Total investment in charitable donations: RMB
million
Dedicated toEmergency MedicalAssistance
Over the past 50 years, Yuwell Primedic has been dedicated to the emergency servicesector, protecting lives worldwide. In China, over 10,000 individuals have obtainedcerti?cation as ?rst aid volunteers through Yuwell Primedic's ?rst aid training program.Globally, the Yuwell Primedic rescue ecosystem extends to over 100 countries, savinghundreds of lives annually. Yuwell Primedic has also founded the Flying Fish RescueTeam, collaborating with professional event safeguarding organizations to provide freesupport for over a thousand global marathon events. This has led to the successfulrescue of dozens of runners experiencing sudden cardiac arrest.
In 2023, the 6th "Medical League Competition: Following Xuanzang's Footsteps" was grandly held in Guazhou, Gansu Province.Medical professionals from all over China gathered in the Gobi Desert to take on the 81-kilometer hiking challenge. The courseof this "Medical League Competition" included various terrains such as deserts, the Gobi Desert and canyons, presentingparticipants with signi?cant physical challenges in high temperatures and intense sunlight throughout the entire journey. YuwellMedical extended full medical equipment support throughout the event, o?ering participants the the new-generation dynamicglucose meter Anytime CT3, blood pressure monitors, and other products to help them e?ectively monitor their health status.Furthermore, the rescue teams were equipped with the Yuwell Primedic Y-series automated external de?brillators (AEDs), capableof withstanding falls from heights of up to 1.6 meters and delivering rapid 6-second rescue responses. These measures ensured thesafety and well-being of all participants, contributing to the successful completion of the event.
Supporting the 6th "Medical League Competition: Following Xuanzang's Footsteps"Case
Yuwell Primedic is actively engaged in nationwide public welfare training sessions, reaching into schools, enterprises, communities,and government agencies. Through initiatives like One Hundred Emergency First Aid Training Sessions and Last Mile EmergencyAid, Yuwell Primedic aims to address the challenge of the public's lack of knowledge and con?dence in using emergency medicalequipment, improving pre-hospital emergency care e?ciency and boosting patient survival rates. Yuwell Primedic intends to setup emergency training centers in 100 cities and 1000 counties, equipping them with essential emergency medical equipment suchas automated external defibrillators (AEDs), cardiopulmonary resuscitation (CPR) training manikins, blood pressure monitors,thermometers, and ?rst aid kits. These devices will also serve as interactive teaching tools. Each week, public emergency trainingcourses will be conducted covering four key areas: chronic disease detection, health awareness, volunteer services, and rescuetraining, aiming to enhance medical treatment capabilities at the grassroots level.
Public Welfare Training Project "One Hundred Training Sessions Enter the Community"Case
Partnering with Tencent, we conducted a four-day emergency trainingprogram in Beijing for 150 delivery riders from Meituan.We have delivered nearly a thousand specialized training sessions tomedical institutions, public organizations, enterprises, and academicinstitutions. We leverage Internet of Things (IoT) technology to broadenthe scope of the emergency response system, encompassing AED devicelocations, ?rst aid volunteers, hospitals, and maintenance services.
In 2023,
Yuwell Primedic conducted over
?rst aid training sessions
42.874
with more than
attendances100,000
providing ?rst aid support for over
events
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.
7877
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Contributing toRural Revitalization
Over the years, Yuwell Medical has been supporting education by donating funds tovarious charitable education organizations, including the Nanjing Normal UniversityEducation Development Foundation, Guangdong Youth Development Foundation,and Shanghai Educational Development Foundation. The Company has establishededucation support funds and scholarships, and donated funds for the constructionof "Yuwell Buildings" in multiple schools. We have also been supporting the "RuralHealth Initiative" by providing medical kits to the Jack Ma Rural Teachers Initiative,aimed at promoting the physical health of rural educators, for five consecutiveyears. Furthermore, we have donated nearly 20,000 5-liter medical-grade oxygenconcentrators to grassroots medical and health institutions in central and westernrural areas, benefiting a total of 19,131 town-level hospitals across 22 provinces,autonomous regions and municipalities as well as the Xinjiang Production andConstruction Corps (XPCC). Through charitable organizations such as the ChinaCharity Federation (CCF), Xianyang Red Cross Society, Jiangsu Social Donation Center,and Shanghai Charity Foundation, we have donated funds and essential medicalequipment to support rural revitalization projects and nursing homes across multipleregions. These contributions have further strengthened the health management anddisease prevention capabilities in rural areas of central and western China.
In 2018, the Company established the Yuwell Medical Highland Oxygen Production IndustryPark in Lasa, Xizang, to help alleviate oxygen supply challenges in high-altitude regions. Thisfacility integrates advanced manufacturing, assembly, warehousing, and service capabilitiesto o?er a wide range of highland oxygen concentrators, such as centralized di?usion, split-type di?usion, micro-pressure oxygen cabins, cabin-style, portable, vehicle-mounted, andindividual nasal suction, meeting the diverse oxygen needs of people living in high-altituderegions. We have introduced an innovative "1+1 service model", combining grid-based,standardized services with a smart remote monitoring platform to achieve delivery withinone hour in urban areas of Xizang and within one day in remote regions of Xizang. Our sta?has ventured into high-altitude outposts over 5,000 meters above sea level multiple timesto deliver high-quality and reliable highland oxygen concentrators to residents, aid workers,and stationed troops in Xizang. Additionally, the Company has partnered with Alibaba tolaunch the "Angel Journey - Highland Health Action," donating oxygen concentrators worthRMB 5 million to less developed areas of the Qinghai-Xizang Plateau to ensure a stableoxygen supply in highland regions.
Alleviating Oxygen Supply Challenges in XizangCase
Yuwell Medical has founded the "YuwellDiabetic Community" as a hub for diabetespatients to connect and engage, coveringvarious types of diabetes such as Type 1diabetes (T1D), Type 2 diabetes (T2D), andgestational diabetes.
In collaboration with Jiangsu Provincial People's Hospital and A?liated Hospital of Jiangsu University, Yuwell Medical organized the charity event"Towards the Future - Health Summer Camp." More than a hundred type 1 diabetes patients from provinces and cities such as Jiangsu, Anhui, Henan,and Guangdong were invited to join the camp.
In partnership with Xinhua News Agency, Yuwell Medical co-produced the diabetespublic welfare short ?lm "Out-of-control Sweetness." Renowned experts from Grade3A hospitals were invited to underscore the importance of blood sugar monitoring,advocating for increased awareness of the 140 million diabetes patients in China.The initiative garnered widespread societal attention, reaching more than 8.919million views.
Committed to Diabetes CareDiabetes, characterized by elevated levels of blood sugar due to hormonal imbalances and subsequent multi-organ damage,ranks among the world's most prevalent chronic diseases. Yuwell Medical is deeply committed to chronic disease management,collaborating with media, hospitals, and other professional organizations to promote diabetes prevention and control. Togetherwith the residents' committees, we organize free clinic events, extending care and support to individuals a?ected by diabetes.
Total registered users5,900
Total posts
13,000
The cumulative views ofthe Diabetic Community
1.03
Delivery time in urban areas ofXizang: within 1 hour
Delivery time in remote regionsof Xizang: within 1 day
million
8079
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Pneumoconiosis stands as the leading occupational disease in China, accountingfor over 80% of all occupational diseases. Individuals who are exposed to high levelsof dust in their workplace for extended periods are at risk of lung damage. Frontlineworkers in industries such as coal mining, textiles, welding, tunnel construction,drilling and carving are susceptible to the disease. Since 2017, Yuwell Medicalhas been collaborating with the Love Save Pneumoconiosis charity organization,adhering to the principle of alleviating patient suffering and enhancing doctors'medical skills. Together, we have been conducting a series of philanthropic initiativesaimed at supporting farmers a?icted with pneumoconiosis, o?ering constant aid toa?ected families.
Infusing Life withOxygenSpecial Focus
The Company partnered with Love Save Pneumoconiosisto launch the "Walk for Two Kilometers" charity event,encouraging the public to convert their walking steps intodonations for the organization. Over nearly a month, thecompassionate initiative has engaged 230,000 individuals,raising RMB 700,000 in donations. These funds havebeen allocated towards the construction of Love SavePneumoconiosis Chaiping Rehabilitation Center,rehabilitation training for over 300 pneumoconiosis-a?icted farmers, and the treatment of critically ill patients.
Yuwell Medical and Love Save Pneumoconiosis have collaboratedon the "Walk for Two Kilometers" charity project.
Yuwell Medical partnered with Love Save Pneumoconiosisto launch the "Love Save Pneumoconiosis - Aid forFarmers Afflicted with Pneumoconiosis" charity projectin eight specialized stores under the Yuwell flagshipstore. This initiative sought to increase awareness amongconsumers and encourage their support for farmersa?ected by pneumoconiosis.
Yuwell Medical and Love Save Pneumoconiosis co-hosted the "Lung Capacity Challenge" event, bothonline and offline, to raise awareness about farmerssuffering from pneumoconiosis and to encouragebroader public participation in assisting them. Theevent won support from 40 celebrity artists andstudents from 102 universities, with the Weibohashtag #LungCapacityChallenge# accumulating over60 million views.
Adhering to theAction Plan on the Prevention andTreatment of Pneumoconiosisand theNotice on thePilot Implementation of Pneumoconiosis RehabilitationStations (Rehabilitation Points) in Grassroots MedicalInstitutions, Yuwell Medical actively collaborated with LoveSave Pneumoconiosis to establish rehabilitation stations,creating a comprehensive network of rehabilitationservices extending from urban to rural areas and fromcommunities to individuals. The services were designed toinclude "rehabilitation guidance, health education, healthmonitoring and assessment, psychological intervention,entrepreneurship support, and advocacy for occupationaldisease prevention and control".
Since the establishment of the rehabilitation center inSanchuan Town, Luanchuan County, Luoyang City, Mr.Chen, a stage III pneumoconiosis patient, has persistedin participating in rehabilitation training at the center.According to long-term health monitoring, his six-minutewalking test results have increased from a minimum of406 meters to a maximum of 547 meters, indicating asigni?cant improvement in his endurance. Since joiningthe rehabilitation center for training, he has not beenhospitalized for pneumoconiosis again.
Yuwell Medical partnered with Love Save Pneumoconiosisto organize the "Solar Terms in Children's Paintings" drawingcollection activity, encouraging children from familiesaffected by pneumoconiosis to depict the beauty of thetwenty-four solar terms through their artwork. This initiativeaimed to raise awareness about the challenges faced bychildren from pneumoconiosis-affected families. Throughthis educational initiative, the Company raised RMB 55,000in donations, which were distributed to eight provinces andcities including Sichuan, Chongqing, and Hunan, supportingmore than 50 children from pneumoconiosis-affectedfamilies to pursue their education.
Although rehabilitation centers can alleviate basicphysical ailments for pneumoconiosis farmers, theystill face a series of life challenges such as reintegratinginto society, easing family pressures, and finding newjob opportunities. Yuwell Medical, in partnership withLove Save Pneumoconiosis, proactively engaged withpatients and their families, providing ongoing medicaltreatment, psychological counseling, and guidance onentrepreneurship and employment, paving the wayfor a long-term, stable, and dependable life for farmersafter rehabilitation. Working alongside Love SavePneumoconiosis, the Company has recognized thataiding ?nancially disadvantaged children in completingtheir education is the most e?ective means of breakingthe cycle of poverty. By the end of 2023, we havecontinued to extend support to pneumoconiosis-a?ectedfamilies by providing educational assistance funds totheir children in primary, middle, and high schools acrossmore than ten provinces and cities nationwide, includingShaanxi, Henan, Chongqing, and Qinghai.
In 2017In 2019In 2023
From 2019 to 2020In 2018
Establishing a Total of
Rehabilitation Stations
8281
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Key Performance Table
Corporate Governance
Business Ethics and Anti-corruptionIndicatorUnit2023
Anti-corruption training coverage for keypositions:
%100%Average anti-corruption training time peremployee:
hours2
Environmental PerformanceEnvironmental ManagementIndicatorUnit2023
Total investment in environmental protectionMillion RMB7.0168Environmental protection training coverage%100%Environmental incidents throughout the yearcases0
Social PerformanceR&D InnovationIndicatorUnit2023
Total R&D investmentMillion RMB504.3712R&D investment as a percentage of revenue%6.33%
Emissions and Waste
Water UtilizationIndicatorUnit2023
Water intakeTons561,377.9Water consumption intensity
Tons / RMB 10,000 ofrevenue
0.70
Recycled water consumptionTons35
IndicatorUnit2023
Waste emission compliance rate%100%Wastewater dischargeTons3,566Total volume of hazardous waste dischargedTons48.38Total volume of non-hazardous waste dischargedTons245.58
Organized waste gasemissions
Alkali mistTons/year0.38Sulfur dioxideTons/year0.17Nitrogen oxidesTons/year1.077Smoke and dustTons/year0.9518Volatile organic compoundsTons/year0.0558
Unorganized wastegas emissions
Alkali mistTons/year0.15Sulfur dioxideTons/year0.062Nitrogen oxidesTons/year0.007Smoke and dustTons/year0.042Volatile organic compoundsTons/year0.798
Energy Use and Greenhouse Gas Emissions
IndicatorUnit2023
GasolineTons76.40DieselTons33.27Natural gas
Cubic meters
(×10,000)
86.23
Purchased electricity
Kilowatt-hours
(×10,000)
3,492.32Total energy consumptionTons of standard coal5,600.27Energy consumption intensity
Tons of standard coal/RMB 10,000 of revenue
0.0070
Direct greenhouse gas emissions (Scope 1)Tons of CO
equivalent2,201.36Indirect greenhouse gas emissions (Scope 2)Tons of CO
equivalent19,916.69Total greenhouse gas emissions (Scope 1 and 2)Tons of CO
equivalent22,118.05Greenhouse gas emission intensity
Tons of CO
equivalent/RMB 10,000 of revenue
0.0277
Note 1, 2: The statistical scope for organized and unorganized waste gas emissions pertains to the parent company of Yuwell Medical.
8483
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Social PerformanceSupply Chain Management
Employment
IndicatorUnit2023
Number of suppliers certi?ed to quality managementsystems
Companies481Number of suppliers certi?ed to occupational healthand safety management systems
Companies72Number of suppliers certi?ed to environmentalmanagement systems
Companies166
Supply Chain Management
IndicatorUnit2023
Total investment in employee trainingMillion RMB10.0767Total attendance of training throughout the yearAttendances34,356Total employee training hoursHours171,780Annual training hours per employeeHours24.7Occupational Health and SafetyIndicatorUnit2023
Investment in health and safetyMillion RMB4.46Health and safety training coverage%100%Number of employee fatalities due to work-relatedincidents
Persons0Public WelfareIndicatorUnit2023
Total investment in charitable donationsMillion RMB42.874
Equality and Diversity
IndicatorUnit2023
Incidents of employee discrimination/harassmentCases0The proportion of female employees in middle andsenior management
%29%
IndicatorUnit2023
Total number of employeesPersons 6,114Number of employees recruited during the reportingperiod
Persons 1,247Number of newly recruited graduatesPersons 68
Number of employees by genderMale employeesPersons 3,482Female employeesPersons 2,632Number of employees by ageEmployees aged 30 and underPersons 1,586Employees aged 30-50Persons 3,902Employees aged 51 and abovePersons 626Number of employees by hierarchical levelSenior managementPersons 135Middle managementPersons 306Entry-level employeesPersons 5,673Number of employees by educational levelEmployees with bachelor's degree or abovePersons 2,081
IndicatorUnit2023
Employees with college degreePersons 1,559Employees with less than a college degreePersons 2,474Number of employees by regionChinese employees (including employees from HongKong, Macao and Taiwan)
Persons 6,020Overseas employeesPersons 94Employee satisfaction%83.6%Employee turnover rate%19.92%
Customer RightsIndicatorUnit2023Customer complaint handling rate%100%B2B customer satisfaction rate%96.2%B2C customer satisfaction rate%97.25%
8685
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. 2023 Sustainability Report
Index TableReporting FrameworkGRI Standards
Message from the Chairwoman2-22/2-23About Yuwell Medical2-1/2-2/2-4/2-6/2-16/201-1Sustainable DevelopmentManagement
2-12/2-13/2-14/2-16/2-19/2-22/2-29/3-1/3-2/3-3
E?cient Governance: Marching Towards a New Era of High-Quality DevelopmentStrengthening CorporateGovernance
2-9/2-10/2-12/2-15/2-27/405-1Adherence to Business Ethics2-27/3-2/205-1/205-2/205-3/206-1Full Supply Chain CoordinatedManagement
2-6Sustainable Supply Chain2-6/3-2/204/308-1/308-2/414-1/414-2Information Security and PrivacyProtection
418-1Leading Through Innovation: Energizing Life via TechnologyDriving the Future throughInnovation
2-6/2-27/416-1Advancing in Smart Healthcare2-6Commitment to Uphold Quality2-25/2-27/3-2/416-1/416-2/417-1/417-2/417-3/418-1/419-1Environmentally Friendly: Accelerating Green and Low-Carbon TransitionEnhancing EnvironmentalManagement
3-2/2-27/307-1Green Product Design302-5/Addressing Climate Change201-2/302-1/302-3/302-4/302-5/305-1/305-2/305-4/305-5Reducing Environmental Impact2-27/303-1/303-3/303-5//304-3/305-7/306-1/306-2/306-3/306-4/306-5/307-1Talent-oriented: Achieving the Value of LifeGrowing Together with Employees
2-7/401-1/401-2/403-2/403-3/403-4/403-5/403-6/403-7/403-8/403-9/403-10/404-1/404-
2/404-3/405-1/406-1Safeguarding Life and Health3-2/203-1/203-2/413-1Appendix
Key Performance Table302-1/302-2/302-3/303-3/303-5/305-1/305-2/305-3/305-4/306-3/306-3/401-1/403-9About This Report2-3Index Table—
About This ReportThis report is the inaugural sustainability report of Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (referred to as "YuwellMedical"). It follows principles of objectivity, standardization, transparency, and comprehensiveness to disclose the Company'ssustainability philosophy, management practices, and performance, thoroughly responding to major concerns of stakeholders.Reporting Scope
The report highlights the information and key performanceof Yuwell Medical and its subsidiaries in ful?lling governance,social, and environmental responsibilities in 2023.
Source of InformationAll the information and data used in the report are sourcedfrom the Company's o?cial documents statistical reports, andfinancial statements, as well as information on sustainabledevelopment practices of each unit that have been gatheredand reviewed by the responsibility management departmentof the Company. Unless otherwise specified, all monetaryamounts mentioned in this report are measured in RMB.Assurance of AccuracyThe Company assures that this report contains no falserecords, misleading statements, or signi?cant omissions, andis accountable for the authenticity and accuracy of its content.Report AccessThis report is available in both print and PDF formats. You arewelcome to visit the Yuwell Medical website (www.yuwell.com) orthe CNINFO website (www.cninfo.com.cn) to access the electronicversion of the report. In our ongoing efforts to improve ourreporting process, we value your feedback and suggestions. Shouldyou have any questions or suggestions about the report, pleaseemail yuwellzqb@yuyue.com.cn, or contact us at 0511-86900876.
De?nition of TermsFor ease of expression and reading, Jiangsu Yuyue MedicalEquipment & Supply Co., Ltd. is referred to as "Yuwell Medical","the Company" or "we" in this report.
TimeframeThis report covers the period from January 1, 2023, to December31, 2023. Some content may be extended beyond this timeframeas deemed appropriate. This report is an annual report.
Reporting PrinciplesThis report has been compiled according to theGRI Standardsby the Global Sustainability Standards Board, the ShenzhenStock Exchange'sGuideline No.17 for Listed Companies onSustainable Development Reporting(Trial), theEnvironmental,Social, and Governance (ESG) Reporting Guideby the HongKong Stock Exchange, the national standardGuidance onSocial Responsibility Reporting(GB/T36001-2015), and theguide for business action on the United Nations SustainableDevelopment Goals (SDGs).
Reporting Principles
This report adheres to the principles of materiality, quanti?cation,balance, and consistency.
Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.
Yuwell Medical stock code: 002223Address: No.1 Baisheng Road, Development Zone, Danyang City, Jiangsu Province, ChinaTel: 86-0511-8690 0876E-mail: yuwellzqb@yuyue.com.cn