Corporate Value and Return Enhancement
Action Plan 2024
Shanghai United Imaging Healthcare Co., Ltd.
situation, and financial condition. The planwas reviewed and approved by the Board ofDirectors on 25th April, 2024.
In order to implement the spirit of the CentralEconomic Work Conference and the CentralFinancial Work Conference, adhere to theinvestor-oriented concept, promote continuousoptimization of operation, standardizedgovernance, and active return to investors,also contribute to boosting confidence,stabilizing the capital market, and promotinghigh-quality economic development, ShanghaiUnited Imaging Healthcare Co., Ltd. (referredto as “United Imaging” or the “Company”) hasformulated the Corporate Value and ReturnEnhancement Action Plan, which is based onconfidence in the future prospects and valueof the Company, and in combination with theCompany’s development strategy, business
Introduction
Catalog
081214Uphold innovation-drivendevelopment and leadindustrial transformation andupgradingFocusing on mainresponsibilities and mainbusiness, rewarding investorswith good performance
Strengthen investor relationsmanagement and convey theCompany’s valueStandardize corporategovernance and fulfill theresponsibilities of the “keyminority”
Optimizing OperationalManagement to Achieve High-Quality Development
People-oriented Approach
to Promote the Mutual
Development of Employees
and the Company
Accurately protect theinterests of investors andshare the growth dividends ofthe Company’s valueTo enhance market expansionefforts and improve the globalmarketing system
Develop corporate cultureand actively practice socialresponsibilities
YOY increase by
23.52%
YOY increase by
19.21%
YOY increase by
25.38%
Operating revenue of RMB
11.41
billion
Net prot attributable to shareholders ofthe listed company of RMB
1.97
billion
Net prot after deduction of parental prot ofRMB
1.67
billion
Since its establishment, the Company hascontinued to invest heavily in R&D, focusingon core technologies in the eld of medicalimaging equipment and radiation therapyproducts. After years of eorts, the Companyhas built a complete product pipeline includingmedical imaging equipment, radiation therapyproducts, and life science instruments, as wellThe Company has persistently tackled coretechnologies, continuously launched innovativeproducts, laid a solid customer base, continued
as innovative solutions covering the entirechain of "basic research-clinical research-medical transformation". By the end of 2023,the Company has launched nearly 120 productsin the market, obtained more than 700 productregistration certicates or quality managementsystem certications, including 45 products withCE certication and 44 products with 51 FDAto consolidate brand recognition, andaccumulated a good market reputation.
510(k) registrations. The Company’s productshave been used in over 1,000 Grade A tertiaryhospitals nationwide, and its business coversmore than 65 countries and regions in Asia,the Americas, Europe, Oceania, and Africa,contributing to global medical services withChinese strength.
In 2024, we clearly recognize that thedigital economy and new productive forcesare becoming new engines driving socialdevelopment. Based on its solid foundation, the
Company will carry out technology reserves,talent reserves, product reserves, and customerexpansion globally, deepen its internationalstrategic layout, enhance its global market
competitiveness and resilience, and achieveinnovative, stable, healthy, and safe development.
Focusing on mainresponsibilitiesand main business,rewardinginvestors with goodperformance
Case: Worked with Yale University and UC Davisto Create the Most Advanced MI Device for the Brain
Uphold innovation-driven developmentand lead industrialtransformation andupgrading
The Company has always regarded innovationstrategy as the core driving force fordevelopment, continuously strengthening R&Dcapabilities along the industrial chain and
R&D investment (including capitalizedexpenditure) of RMB
1.92
billion
R&D investment as a percentage of revenue
16.81%
YOY increase by
0.94
pts
In 2023
In 2022 and 2023, the Company hassuccessively been selected as a nationaltechnology innovation model enterprise by theMinistry of Industry and Information Technology,
innovation chain from whole systems to corecomponents, and continuously breaking throughtechnological boundaries. Since the listing ofSSE STAR MARKET in 2022, the Company has
a model enterprise by the China NationalIntellectual Property Administration, and has wonawards and qualications such as the ExcellentAward of the 23rd China Patent Award and
maintained a high proportion of R&D investment,with a total investment of 3.39 billion RMB overthe past two years, eectively translating theraised funds into results.
the Excellent Award of the 24th China PatentAward by the China National Intellectual PropertyAdministration.
Number of patent and other intellectual propertyapplications9,900+Intellectual property rights obtained totaled5,100+
Number of invention patent applications6,900+Number of invention patents obtained3,000+
By the end of 2023
Faced with the ever-changing environment and requirements of the medicaldevice industry, United Imaging actively takes the lead in promoting productupgrades through technological, application, and design innovations,cultivating and utilizing New Quality Productive Forces, promoting high-quality development of the Company, leading industrial transformationand upgrading, and providing internal driving force for China to become aglobal medical device power.The Company continues to strengthen the construction of digitalintelligence in its products, promote innovation and breakthroughs in itsown products, lead the advancement of medical technology, and promotethe improvement of national health. Since the listing of SSE STARMARKET in 2022, the Company has successively launched a series ofindustry-leading products, including the industry’s rst Total-body PET/CT uEXPLORER, the “Space-Time Integrated” ultra-clear TOF PET/MR790, the industry's rst 75cm Wide Bore 3.0T MRI uMR Omega, and theultra-high-end 320-row 640-slice CT uCT 960 + and other high-endproducts. Also it has successively launched a series of industry-leadingproducts, including the industry’s rst high-eld whole-body clinicalimaging 5.0T MRI uMR Jupiter 5T, the industry’s highest 190ps level TOFresolution PET/CT product uMI Panorama, the PET/MR uPMR 890 whichcomprehensively revolutionized the limits of PET/MR whole-body scanning,and the industry's rst intelligent bionic minimally invasive interventionalsurgical system uAngio 960. In addition, the Company has also introducedthe uExcel technology platform, an innovative non-polar molecular imagingtechnology platform with the ability of free evolution, and uVera Technology
DSA Smart Bionic platform, to comprehensively respond to the far-reaching needs of doctors for functionality, ease of use, safety, stability,and scientic research power, and continued to expand our product seriesand landed on the application of clinical and scientic research scenariosthat continue to evolve through the empowerment of the platform.In 2024, the Company will carry out forward-looking layout in the eldof cutting-edge technology related to imaging equipment, steadilystrengthen the investment in R&D, and at the same time fully consolidatethe Company's advantages in technological innovation by carrying out thenext-generation core technology reserve through independent R&D andproduct innovation in light of the actual clinical needs of end-users.
Uphold innovation-driven development and lead industrial transformation and upgrading
The Company will uphold the principle of "independent R&D of all lines,mastering all core technologies, and benchmarking against the internationaltop standards", and continue to introduce a series of high-end medicalequipment to the market that is "the rst of its kind in the industryand deeply embodies clinical value", opening up a whole new space ofimagination for the clinical and scientic research, and realizing the self-requirement from "benchmarking against international top standards" to"surpassing international top standards".
In terms of product innovation
In terms of cooperation and research of industryAcademia, researchers and medical institutions, the Company will growand create together with the best doctors and scholars in the industry,promoting interdisciplinary innovation. With the huge traction of theinnovation ecosystem, the Company will integrate the entire chain of basicresearch, clinical research, and industrial transformation, and promoteprecise diagnosis and treatment of major diseases and exploration of majormedical challenges.
In terms of key components and underlying technologiesThe Company will continue to tackle core components and underlyingtechnologies, actively promote the deep integration of cutting-edgetechnologies such as articial intelligence, 5G, cloud technology, andnew materials with next-generation medical diagnostic and treatmentequipment, explore new applications and scenarios of new technologiesin the eld of health, and establish new technological coordinates for theindustry.
Uphold innovation-driven development and lead industrial transformation and upgrading
The global development of the medical industry has posed higher requirementsfor supply chain management. Based on the concept of “new quality,automation, informatization and intelligence,” the Company actively promotesdigital and intelligent manufacturing transformation. In scal year 2023, theproduction capacity of the Company's four major production bases in Shanghai,Wuhan, Changzhou and the United States will be further enhanced. Logisticscoverage will be achieved in more than 70 countries around the world, anda 100% product delivery completion rate will be achieved under the existingsupply guarantee system
In 2024, the company will actively respond to the digital transformationstrategy and benchmark the international highest level of smart manufacturingbase construction. It will further develop a digitized super factory, promoteautomation, intelligent lean manufacturing, and ensure the enhancementof internal management and operational eciency during the process ofbusiness globalization. In the construction of the second phase of the intelligentmanufacturing base in Shanghai, multiple cutting-edge technologies such asindustrial Internet of Things, articial intelligence, and mobile applications willbe applied. Hardware facilities such as intelligent production lines, intelligentwarehousing, and intelligent logistics will be equipped to signicantly improvethe digitization level of the intelligent manufacturing base.
OptimizingOperationalManagement toAchieve High-QualityDevelopment
Digital Transformation of the Supply Chain to Achieve Cost Reduction and Efciency Improvement.
The Company always places quality management at the core and strictlyadheres to international medical quality standards, establishing a comprehensivequality management system. In scal year 2023, the Company completed45 updates to the quality management system. As of the end of scal year2023, the Company has developed 61 internal control systems for supplychain management and obtained over 700 product registration certicates orquality management system certications domestically and internationally. Thecompany's quality management system is based on core standards such as ISO9001:2015 and ISO 13485:2016, while integrating GB/T 42061-2022 and multi-national medical device regulations to ensure global product compliance.
In 2024, the Company will continue to optimize the product lifecyclemanagement system, build a top-down, lean, and ecient organizationalsystem, strengthen quality management and improve product quality,continuously optimize cost, strengthen operational risk control, ensure that theCompany’s products meet advanced quality standards in the industry whilemaintaining technological leadership, and explore global markets through high-quality products.
Optimizing the Quality Management System to Ensure Scientic and Efcient Operation
The Company regards human capital as the key to enhancingcompetitiveness and achieving sustainable development. The Company hasformulated a comprehensive talent development strategy based on multi-channel talent recruitment, carefully constructing a comprehensive talent
People-orientedApproach toPromote the MutualDevelopment ofEmployees and theCompany
training system to achieve the mutual development and mutual achievementof employees and the Company.
The Company strives to achieve diversied recruitment through methodssuch as campus recruitment, social recruitment, internal employee referrals,and university-enterprise talent training programs. In scal year 2024,the Company will continue to adhere to the principle of “not setting uppositions for specic people”, open positions based on actual needs, andformulate a detailed talent reserve plan to cope with market changes andensure team vitality.
Broadening Talent Recruitment Channels and Enriching theCompany’s talent pool.
Deepening the Construction of a Global Talent System toFacilitate Diversied Development.
To better adapt to dierent countries’ cultures and market environments,the Company adheres to a talent strategy of localization and diversiedoperations. In scal year 2024, the Company will further increaseinvestment and capacity building in major countries and markets withinstrategic regions, consolidate and enhance talent development in variousmajor subsidiaries in terms of marketing management, market management,clinical training, after-sales service, and supply chain management.
The Company actively provides extensive support for employee growth,guiding employees to plan their development direction based on their ownadvantages and the continuous development needs of the Company. TheCompany has formulated a career development system with clear joblevels based on management channels and professional technical channels,motivating employees to continuously improve their professional skills andenhance their personal competitiveness.
Supporting Talent Cultivation and Development, Building aMulti-dimensional Talent Ladder
Collaborating across the Entire Value Chain to ImproveOrganizational Operational Efciency and Innovation Capability
Based on market demand, the Company continuously explores the valueof product technology and service innovation, closely monitors marketdynamics, and responds promptly to market demands through cross-departmental, multi-modal, and project-based team building methods,accelerating organizational collaboration and information sharing eciency,and improving organizational resilience and agility.
People-oriented Approach to Promote theMutual Development of Employees and theCompany
The Company adheres to the core incentive system of "customer-centered, innovation-driven, and striver-oriented". For senior executives,a comprehensive remuneration system combining short-, medium- andlong-term periods has been implemented, and a performance appraisaland incentive and constraint mechanism linking the remuneration of seniorexecutives to the Company's performance has been established. Foremployees, the Company has implemented a comprehensive remunerationincentive system combining basic remuneration, long-term incentives,welfare and non-material incentives. On this basis, the Company hasestablished a performance management system with "value creation andecient synergy" as the guiding force, which helps the Company and itsemployees to grow together.On August 14, 2023, the Company held its rst meeting of the TwentiethMeeting of the First Session the Board of Directors, where they approvedthe motion titled "Regarding the Company’s 2023 Restricted StockIncentive Plan (Draft) and its Summary".
People-oriented Approach to Promote theMutual Development of Employees and theCompany
People-oriented Approach to Promote the Mutual Development of Employees and theCompany
Number of restricted shares
4.00
million shares
The retention rate of core key technical talentsin 202397%
Covering incentive recipients totaling in 20231,594Cumulative number of employees shareholdings1,976Cumulative number of shares held by employees
75.62
million shares
The Class II Restricted Share Incentive Scheme grants in 2023
3.74
million shares
It aims to further enhance the connection between the Company and itsemployees, stabilize the core team and attract outstanding talents.
The Company consistently pursues a globalized approach and aims toachieve breakthrough progress in both domestic and international marketsin 2023.
The Company focuses on the “top-down” healthcare landscape andleverages a comprehensive layout of multi-modal cross-scale imaging,radiotherapy, interventional devices, and digital platforms. This strategyactively supports the development, transformation, and high-qualityconstruction of national medical centers, regional medical centers, county-level medical institutions, and other healthcare institutions. According tothe market share calculation based on the domestic market’s new revenuein 2023, the Company ranks rst in the industry for PET/CT, PET/MR, andXR products and also performs well in the CT, MR, and RT sectors.
In the domestic market
United Imaging focuses on the market strategy of “one core, multiplewings, high and forward, and breakthrough across the board,” activelypromoting the development of overseas business. Currently, the Company’soperations cover over 65 countries and regions in Asia, the Americas,Europe, Oceania, and Africa, and has established regional headquarters,the company has established more than 30 regional headquarters, salesplatforms and branches/subsidiaries around the world.. The global service
In the international market
To enhance marketexpansion efforts andimprove the globalmarketing system
In 2024, the Company will steadfastly promote the transformation andupgrade for the "next decade". Through the management strategy of“strong operation, strong marketing, and strong service,” as well as themarket strategy of “benchmarking, channel establishment, and grassrootsreinforcement,” the Company actively responds to the strategies of HealthyChina, Manufacturing Power, Rural Revitalization, and the requirements ofnational medical centers, regional medical centers, the Thousand CountiesProject and compact county medical community. This approach aims topromote the sinking of high-quality medical resources and provide superiorUnited Imaging solutions to support the construction of a tiered diagnosisand treatment system.
team has exceeded 1,000 members. The number of countries/regionswhere the global central warehouse is located has increased by 100%compared to the previous year. And over 5,000 full overseas services(excluding workstations). The Company’s overseas service capabilitiescontinue to improve.In 2024, the Company will further respond to “the Belt and Road” initiativeand the call to "go global". By focusing on key countries in high-end
To enhance market expansion efforts andimprove the global marketing system
The Company will explore, research, and track relevant targets globallybased on industry trends, market characteristics, and development status.This will allow the Company to acquire advanced technology, products,channels, and other resources. With a more open attitude and a deeperlayout, the Company will optimize its asset structure and business layout,improving its core competitiveness.
Regarding mergers and acquisitions
equipment markets, building a global integration system for innovationin academia, research, medicine, and industry, and deploying localizedsales networks and after-sales teams, the Company aims to achievedeep development of the overseas marketing system and make signicantbreakthroughs in the global market. Simultaneously, the Company willattract global talents, strengthen international market recognition andtrust in the Company’s brand, enhance user loyalty, change the inherentperception of Chinese brands worldwide, and achieve a reverse output oflarge-scale medical equipment to the high-end markets of the US, Japan,and Europe, as well as a sustained import into emerging market nations.
Accurately protect theinterests of investorsand share the growthdividends of theCompany’s value
Total cash dividends of RMB
165.66
million (including tax)
Cash dividend per 10 shares of RMB
2.01
(including tax)
Expected cash dividend per 10 shares of RMB
2.50
(including tax)Total expected cash dividends of RMB
204.86
million (including tax)Ratio of net prot attributable to shareholders
10.00%
(gures have been rounded)
Estimated ratio of net prot attributable to shareholders
10.38%
(gures have been rounded)
In 2022In 2023
In addition, the Company implemented share repurchase by way ofcentralized bidding and paid cash consideration of RMB 484,519,257.78in 2023 (excluding transaction costs such as stamp duty and transactioncommission), and the total amount of cash dividends to be paid in 2023is estimated to be RMB 689,379,549.53, which accounted for 34.92%of net prot attributable to shareholders of the listed company in the
consolidated statement of accounts.In 2024, the Company intends toincrease one interim dividend at the time of semi-annual report disclosure,and the amount of cash dividend is expected to be no less than 10% ofthe net prot attributable to shareholders of the listed company for thecorresponding period. This proposal is yet to be submitted to the AnnualGeneral Meeting 2023 for consideration.
For cash dividends
Total amount paid of RMB511,272,168.36(excluding transaction costs such as stamp duty and trading commission)
As of March 31 2024, Cumulative number of shares repurchased by theCompany4,716,821shares
The percentage of the total share capital of the company
0.57%
On August 22 2023, based on the condence in future development andrecognition of the Company's value, and in order to establish and improvethe long-term incentive mechanism, the Company issued a repurchaseprogram, with a total amount of repurchase funds of not less than RMB400 million (inclusive) and not more than RMB 800 million (inclusive).
For share repurchases
The Company adheres to the Company Law, Securities Law, Code ofCorporate Governance for Listed Companies, and Rules Governing theListing of Stocks on the STAR Market of the Shanghai Stock Exchange,among other laws, regulations, and guidelines, follows the corporategovernance structure composed of the general meeting of shareholders, theboard of directors, the board of supervisors and senior managers to ensuremutual coordination and checks and balances among the power agencies,decision-making agencies, supervisory agencies and management topromote ecient and stable operation of the company.In 2023, the Company comprehensively revised 10+ regulations, includingthe Articles of Association, Working Rules of the Board’s Strategicand Social Responsibility Committee, and Internal Audit System. It alsoestablished new regulations including the Information Disclosure Deferraland Exemption Business Management System, Foreign ExchangeDerivatives Trading Business Management System, and IndependentDirectors’ Special Meeting System. Compliance committees, disciplinarycommittees, and quality committees were established to supervise andmanage the Company’s ethical behavior, providing a solid institutionalguarantee for scientic decision-making and standardized operations.
Standardize corporate governanceand fulll the responsibilities ofthe ‘key minority’
In 2024, the company will make full use of the China Securities RegulatoryCommission, the Shanghai Stock Exchange, Pujiang Lecture Hall, theListed Companies Association and its training platform to organize onlineand oine training for the ‘key minority’ and the company's operatingmanagement to ensure that understand the latest Laws and regulations,clarify the responsibilities in information disclosure, major event reporting,and inside information management, guide all employees to establishcompliance awareness, and promote the overall improvement of thecompany's overall governance level.
Actively Respond to R egulatory Calls and Strengthen theGovernance of Key Roles
Keeping up with Regulatory Dynamics, the Company WillEstablish a Positive Feedback MechanismIn 2024, the Company will collect, analyze, and promptly deliver the latestregulatory information, and compile and interpret quarterly the latestregulatory policies, market rules, and relevant laws and regulations. Thisinformation will be provided to the ‘key minority’ to guide the Company’sdevelopment in compliance while responding to the demands of investors.The Company respects and protects the rights and interests of investors,boosts investor condence, and achieves high-quality developmentalongside investor satisfaction, thus solidifying the stability of the capitalmarket.
Standardize corporate governance and fulllthe responsibilities of the ‘key minority’
In 2024, the Company will continue to prioritize investor relationsmanagement, enhancing communication and engagement with investors. Bydelivering the Company’s value to the capital market in a truthful, accurate,timely, and comprehensive manner, the Company aims to foster better
In order to improve the quality of its information disclosure work, theCompany has formulated the Information Disclosure Management System,the Investor Relations Management System and other relevant systems toeectively protect the legitimate rights and interests of investors.
System is the Cornerstone to Strengthen the Protection of theRights and Interests of Small and Medium-sized Investors
Listening patiently to Investor Demands and Building DiverseChannels for Two-way CommunicationThe Company has set up a dedicated email address and hotline forinvestor relations, established an ‘investor relations’ section on the ocialwebsite, and engages in two-way communication through various meanssuch as shareholder meetings, investor visits, reverse roadshows, onlineperformance presentations, collective investor receptions, and the ShanghaiStock Exchange interactive Q&A platform. This allows the Company tolisten to suggestions from investors regarding its operations and improveaccessibility for retail investors.
Strengtheninvestor relationsmanagementand convey theCompany’s value
understanding and recognition among investors while promptly addressingtheir concerns and viewpoints to the management team, actively respondingto market changes and investor demands.
Strengthen investor relations managementand convey the Company’s value
The Company presents written reports in a visual format, discloses bilingualESG reports, and utilizes platforms such as WeChat ocial accounts andvideo channels. These approaches enrich the dissemination channels andforms of communication, ensuring that information is eectively conveyedto domestic and foreign investors and fully realizing the purpose ofrespecting, rewarding, and protecting investors. Special emphasis is givento creating opportunities and convenience for small and medium-sizedinvestors to participate in investor management activities.
Enriching the Channels of Information Disclosure andRealizing the Effective Transmission of Information
Establishing a Long-term Mechanism for Sharing InformationResources and Promptly Responding to Investor DemandsThe Company will establish a systematic and eective informationresource sharing and management mechanism. This mechanism willdeliver the latest market and company changes to investors and enabletimely responses from the management team, eectively respecting andprotecting investor rights, boosting investor condence, and achieving bothinvestor satisfaction and the Company’s high-quality development, therebyenhancing the intrinsic stability of the capital market.
As a leading high-end medical device company, the Company recognizesthe responsibility of assuming social obligations and strives to create abetter future. Guided by the corporate mission of ‘Creating Dierencesfor a Healthier Future,’ the Company leverages its industry and innovation
The Company relies on ‘technological innovation’ to create integratedsolutions for specialized diseases and regional smart interconnection.By empowering doctors in clinical settings, it improves diagnostic andtreatment eciency as well as the patient experience, thus supportingthe expansion of high-quality medical resources and achieving regionalbalance.
In terms of healthcare accessibility
The Company provides technical training courses, conducts joint talentdevelopment programs with educational institutions, and collaborates oninternational talent development projects. These eorts aim to cultivatehighly skilled and specialized medical professionals, thus improving theoverall quality of healthcare services.
In terms of talent development in the healthcare industry
The Company focuses on digital healthcare solutions and is committed toimproving the health level in underdeveloped regions globally. By the end ofthe reporting period, the company's products and solutions have coveredover 65 countries and regions, including about one-third of the "OneBelt and One Road" countries and regions, and more than 30 medicallyunderserved countries and regions.
In terms of international market building
advantages to continuously invest in research and actively promotetechnological advancements and accessibility in global healthcare services,thereby embodying its social value.Develop corporateculture and activelypractice socialresponsibilities
Develop corporate culture and actively practice social responsibilities
The environmental compliance rate of all operating entities of the Companywill reach 100% in FY2023. The Company has actively responded to the‘dual-carbon’ strategic goal and set long-term greenhouse gas emissionreduction targets, and will further launch the CDP (Carbon DisclosureProject) in the future.
In terms of green enterprise construction
The company actively participates in public welfare and charitable causes,promotes the health and well-being of all people, and participates in a widerange of public welfare activities to contribute to the development of thecommunity.
In terms of social welfare
In terms of promoting the coordinated development of theindustry chainThe Company seeks mutual growth with suppliers and promotes the high-quality development of the industry, which is also an important goal ofcorporate social responsibility.
The Company will always uphold a strong sense of social responsibility andintegrate the concept of sustainable development into its group strategyand business sectors. It is committed to making products accessible to awider range of consumers, continuously creating social value, and improvingsocial well-being.
This 2024 ‘Corporate Value and Return Enhancement Action Plan 2024’ action plan by United Imagingis based on the current situation of the Company. It may be subject to uncertainties due to domesticand international market environments, policy adjustments, and other factors. Investors are advised toexercise caution and pay attention to investment risks.
In the future, the Company will continue to evaluate and optimize the relevant measures of the ‘CorporateValue and Return Enhancement Action Plan 2024’. Through outstanding performance, standardizedcorporate governance, and proactive investor returns, the Company will fulll its responsibilities andobligations as a listed company, enhance its investment value, and sincerely reward investors.