Universal Scientific Industrial

USI and its subsidiaries realize that “Innovation” is the key for continuous growth and considers the Intellectual Property (IP) as one of our most important assets. We not only treasure our own IP but also respect all the IP around the world.

IP Management Plan and Implementation

The IPD reports the IP management plan and implementation status to the board of directors of Universal Global Scientific Industrial Co., Ltd., a subsidiary of Universal Scientific Industrial (Shanghai) Co., Ltd., at least once a year. The expected report date for this year (2024) is November 10.

IP Management Policies

IP in USI is considered as responsibility of each employee, we not only endeavor to lower the risk of infringement but also encourage the innovation activities internally. Company provides the greatest benefit to all of our stakeholders through the most effective IP management, and devotes itself to create an encouraging environment and management system to protect our IP:

• Ensure that core technologies are protected by laws and regulations related to intellectual property
• Construct an internal network database to facilitate the sharing of intellectual property knowledge
• Promote R&D willingness through incentive programs
• Implement intellectual property training programs to enhance the consensus among all employees to participate

Research and Patents

USI has 2,809 R&D employees, accounting for 12.21% of the employee population, increased by 0.74% comparing with 2022, and invested CNY 1.807 billion, accounting for 2.97% of the revenue in 2023. The Company continues to cultivate and improve the ability of design and development personnel to maintain a stable and sustainable development in the intensity of research and development.

R&D Spending and Intensity

To encourage research, development, and innovation, USI set up Patent Management and Incentive and regular R&D competitions. After the project has been verified, employees that proposed the patents will be financially rewarded and publicly recognized. By the end of January 2024, the cumulative number of effective granted patents stood at 801, an increase of 61 over 2022, and the cumulative number of approved patent applications reached 1,589, an increase of 6%. The patents obtained in the last four years are shown in the figure.

Furthermore, regarding USI's electronic manufacturing and service technologies patent portfolio, USI has been granted 386 patents in Mainland China, 266 patents in Taiwan, 125 patents in the U.S.A and 24 patents in other countries.

Percentage of Accumulated Effective Patents by Country