Our environmental management structure has clear responsibilities. Environmental Health and Safety (EHS) Committee is responsible for environmental management-related work. By implementing an environmental management system, advocating environmental certification, and enhancing environmental awareness, we minimize the impact of our Company on the environment.

We not only strictly comply with the requirements of environment-related laws and regulations in the places where it operates but also establish a library of laws and regulations such as Environmental Policy and Environmental Monitoring Management, covering all employees, contractors, or suppliers, partners, and other stakeholders.

In 2023, the Company did not receive any significant environmental violation penalties (Environmental Liability Accrued at Year End is 0). The emissions of waste gas and wastewater were in compliance after treatment or reuse. There were no instances of environmental monitoring exceeding legal limits, and no illegal activities were detected. All waste materials were disposed of or recycled in accordance with regulations.

Environmental Compliance Assessment

We established a library of applicable laws and regulations, conduct compliance analysis, and regularly update and disseminate them. We conduct regular environmental reviews of each factory and require each factory to conduct its own internal review and implement improvement measures to ensure that all operating factories follow approved procedures and conduct.

Environmental Management System

In 2022, the Company formulated the Whole Process Environmental Management Guidelines, Environmental Compliance Management Guidelines and other systems to standardize environmental management throughout the entire process of construction projects, and to clarify the environmental compliance management workflow of production and operation activities.  In addition, the Company pays great attention to the operation and reliability of environmental management measures, and adopts monthly and quarterly cyclical inspections, combined with unscheduled video inspections to monitor the environmental compliance management during the operation of each plant, to continuously improve the level of environmental management. As of the end of 2023, 65.05% of the subsidiaries/ factories have received the ISO 14001 environmental management system certification.

Example of ISO 14001 Environmental Management System Certification

Environmental Emergency Management System

To effectively prevent the occurrence of environmental emergencies and improve the ability to deal with sudden environmental pollution accidents involving public crises, the Group's factories carry out environmental risk assessments under the relevant laws and regulations of countries and the places of operations, analyse and predict the existence of potential dangerous or harmful factors, determine the type of potential accident and the degree of harm and the scope of influence, and formulate environmental emergency response plans with the risk prevention measures.The Company established emergency mechanisms with local governments and communities, and conducted regular drills. In addition,to further enhance our capability to cope with environmental risks, some of our factories have responded to the local government's request to purchase environmental pollution liability insurance.

Environmental risk assessment and response initiatives

• For new construction projects, we hire professional third-party institutions to carry out environmental risk assessment, and prepare emergency environmental contingency plans, and file them according to the requirements of the ecological and environmental authorities in the place of operation.
• Emergency drills for environmental emergencies are conducted regularly to ensure the feasibility of the plans. In 2021, 42 emergency drills were conducted by the Group's enterprises and corporate groups.
• Environmental pollution liability insurance can help enterprises effectively diversify some of their risks and quickly resume normal production and operation if an environmental accident occurs. It can also strengthen the supervision and management of the insurance company to protect the environment and prevent environmental damage.

Environmental Protection Awareness Enhancement
The Company carries out various trainings and awareness activities to promote environmental protection concepts among employees. In 2023, the coverage rate of environmental protection training in the Company reached 100%, with the training plan being fully implemented. The training sessions covered topics, such as environmental performance management, automatic monitoring facility management, hazardous waste management, energy efficiency improvement, regulatory updates, compliance management, government inspection case studies, water, gas, noise, soil and groundwater management, water conservation promotion, waste reduction, etc. A total of 9 sessions were conducted, with 1,098 participants in attendance.

The Company is fully aware of the value, importance and necessity of sustainable development, that is, meeting current social needs without compromising the social needs of future generations so that they can enjoy the same resources as we do today. The Company is committed to minimizing the impact on the environment in all its production and operation activities. That's why we have an environmental policy, committed to minimising the impact on the environment in all our production and business activities.

Attachment: Environmental Policy.PDF