CONTENTS
About this report 01
Chairman's speech 03
About Sinoma International 05
Sustainable development management 13
Solidify the foundation for our Support the sustainability of the
sustainable development industry, society and global community
Consolidating Governance 25 Leading Industrial 63
Foundations to Ensure Steady Progress and Enhancing
and Healthy Operations for Overall Value for Mutual
Development Benefit
Strengthening Governance Foundations 26 Enhancing Service Quality 64
Compliance and Integrity in Operations 29 Sustainable Supply Chain 75
Safeguarding Employee Rights and Interests 36
Pursuing Sustainability through 49 Embracing the Mission of the 79
Outlook 99 The 14th Five-Year Plan: A New 19 Green and Eco-Friendly Times and Jointly Pursuing Global
Chapter in Our Sustainable Development Development with Responsibility
ESG key performance 101
Development
Indicator indexes 115 Green and Clean Production 50 Green and Low-Carbon Products 80
Circular Economy Integration 59 Addressing Climate Change 85
Feedback form 117
Improving People's Livelihood and Well-being 90
About this report
Reporting language
Reporting entity This report is published in both Chinese and English. In case of any inconsistency between the Chinese and English versions, the
Chinese version shall prevail.
The reporting entity is Sinoma International Engineering Co., Ltd. (stock code: 600970) and its affiliated enterprises. In this report, for
Reference standards
ease of expression and reading, "Sinoma International Engineering Co., Ltd." is abbreviated by "Sinoma International," "the
Company," and "we," and "China National Building Material Group Co., Ltd." is represented by "the Group."
Reporting scope UN Sustainable Development Goals 2030 (SDGs)
Sustainability Reporting Standards of Global Reporting Initiative
The scope of this report is consistent with the scope of the annual financial disclosure. Unless otherwise stated, this report covers Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-ESG 6.0) issued by the Chinese Academy of
the environmental, social, and governance performance of Sinoma International Engineering Co., Ltd. and its affiliated enterprises Social Sciences
during the period from January 1 to December 31, 2025. Given the continuity and comparability, certain contents of this report may
be extended as necessary. Reference Indicator System for the ESG Special Report of Listed Companies Controlled by Central Enterprises issued by the State-
owned Assets Supervision and Administration Commission (SASAC) of the State Council.
Information sources Guidelines No. 14 of the Shanghai Stock Exchange for Self-regulation of Listed Companies — Sustainability Report (Trial)
Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE — Compilation of Sustainable Development Reports
The information and data in the report are derived from the Company's official documents or internal statistics. The historical data (Revised January 2026)
cited is final statistical data. In case of any discrepancy between the financial data and the annual report, the annual report shall
Recommendations of the Task Force on Climate-related Financial Disclosures ("TCFD")
prevail. Unless otherwise stated, all amounts of currency involved in this report are denominated in Chinese Yuan ("CNY").
Chairman's speech This year, we began with operations, anchoring
our focus on high-quality development to
This year, responsibility has been our guiding hand,
as we fulfilled our global commitment to ensure
that the fruits of progress were shared by all.
overcome difficulties and pursue progress
amidst stability. Guided by a people-centered philosophy, we deepened
In 2025, the Company achieved a record high in new reforms in personnel, labor, and distribution systems,
contract signings, with total value reaching CNY 71.2 achieving 100% implementation of term-based
billion, up 12% year-on-year. Among which, core appointments and contractual management. Mid-to-
engineering business accounted for CNY 42.7 billion, a long-term incentive programs now cover 16% of eligible
our operational foundation. Overseas contracts secured tangible benefits. Spanning from the Gobi Desert to high
surged to CNY 45 billion, up 24% year-on-year, driving plateaus, and from the Red Sea coast to island nations,
the internationalization index above 47%. Sinoma's high- we have navigated our extensive operations with
end equipment has successfully entered mid-to-high- responsibility as our rudder and cooperation as our sail,
end overseas markets. We accelerated the development deeply embedding ourselves in our extensive operational
of 9 overseas service centers, launching the "Full landscapes. By building infrastructure, dedicating
Embracing the Mission Through Business, Full Process, Full Element" globalization ourselves to charity, empowering communities, and
advancing education, we have built bridges for cultural
Storms and Mountains, initiative. Additionally, we established 4 localized profit
exchange through tangible actions and woven bonds of
platforms generating over CNY 100 million each,
Composing New Chapters continuously solidifying our pioneer position. We wrote people-to-people connectivity with boundless
Through Shared Adversity. a chapter of perseverance with tangible actions, compassion. True to our original dream, we have
embodying the spirit of "remaining steadfast written a story of responsibility where harmony
despite countless trials." thrives and beauty is shared by all.
This year, we advanced with green as our Having weathered countless storms, the seas now
The year 2025 marked the successful calm, we hoist our sails as the tide rises anew.
conclusion of the 14th Five-Year Plan and the guiding stroke, spearheading the
pivotal transition to charting the grand transformation toward a green and intelligent
Looking back on 2025, we crossed oceans and scaled
blueprint for the 15th Five-Year Plan. It was also future—driving simultaneous gains in brand
mountains in unity; tempered like steel through trials, we
a critical year for Sinoma International to strength and governance effectiveness.
stood at the vanguard amidst the surging currents of our
confront challenges with resilience, forge The Company advanced steadily in the ENR "Top 250 times.
ahead through turbulent times, and pioneer International Contractors" ranking, received an "A" grade
Looking ahead to 2026，as the curtain rises on the
new horizons amidst transformation. Looking in SSE information disclosure evaluation for the seventh
back, we began with operation as our starting consecutive year, and was honored with multiple awards
resounds. We will fortify our foundations and accelerate
point, advanced with green as our brushstroke, including the Golden Roundtable Award for Best Board
comprehensive progress. Driven by unwavering strategic
and walked every step in responsibility— of Directors and Best Practices in Investor Relations
confidence, robust innovation momentum, and a
together composing a defining masterpiece of Management. Our ESG governance level continued to
broader global vision, we are committed to propelling
high-quality development for our time. rise, with CSA scores surpassing 95% of global peers. We
high-quality development to new heights. In doing so, we
have become the only Chinese mainland enterprise in
are steadfastly advancing on the journey to becoming a
our industry to be included in the S&P Global
world-class service provider for the building materials
Sustainability Yearbook, demonstrating exceptional
industry, contributing greater wisdom and strength to
capital market presence and accountability. We
the sector!
successfully established the cement industry's first
certified "zero-employee factory" and built 48 nationally
certified green mines. Vigorously expanding the global
new energy market, we secured our first overseas hybrid
tower project in Saudi Arabia, and built an alternative
fuel industrial chain platform, recording supply of over 1
million tons. We paint the visionary masterpiece of
innovation with technology, bringing to life a bold
vision: "Intelligence Ignites the Future, Green
Powers the Planet."
Chairman of Sinoma International
Mission and Vision
About Sinoma International
Company profile
Corporate Corporate
Sinoma International Engineering Co., Ltd. (hereinafter referred to as "Sinoma International") is a key enterprise in the engineering, Mission Vision
technical, and service sectors, as well as in international business under the China National Building Material Group Co., Ltd., a
Fortune Global 500 company. It is also the world's largest integrated service provider of cement technology, equipment and
engineering system integration, a national technological innovation demonstration enterprise, a single champion demonstration Promote green and intelligent World-class service provider in the
enterprise in the manufacturing industry, a demonstration enterprise for national intellectual property, and a winner of the China development and serve a better world material industry
Grand Awards for Industry.
In 2001, Sinoma International was established by integrating high-quality assets of the national cement technology and equipment
engineering business. In 2005, it was listed on the Shanghai Stock Exchange (600970.SH). Through technology import, assimilation,
and independent innovation, the Company has successively developed and built a series of production lines ranging from China's
first 1,000 tpd production line to the world's largest 14,000 tpd production line, and made major breakthroughs that enabled One core two drives
China's transformation from an importer of complete sets of key equipment to full localization and then to an exporter of complete
sets, thus making great contributions to China's infrastructure construction and economic development. The company offers a Engineering technical services Digital Intelligence
complete industrial chain and system solutions, covering mining services, cement engineering R&D, engineering design, (Cement, mining environmental
professional equipment manufacturing, construction, installation, commissioning, and production line maintenance and operation +
protection, green energy related
management. It is the only enterprise in the international cement technology and equipment engineering market with a fully diversification) High-end equipment
integrated industrial chain.
Sinoma International relies on internationally leading technologies for new dry-process cement production lines, backed by The 14th
independent intellectual property rights. Leveraging its comprehensive industrial chain resources—spanning cement technology,
Five-Year
Plan
equipment, engineering, and services—the company promotes the global export of Chinese products, technologies, standards, and
development
capital through international engineering projects. It has contracted 373 cement production lines in 91 countries around the world, Develop three strategies Four management principles
maintaining the world's No.1 market share for 18 consecutive years. It has also been repeatedly honored with prestigious awards,
industries
including the Luban Award for China Construction Engineering and the Gold Award for National High-Quality Engineering. It ranked Five core capabilities
"SINOMA" has become one of the most influential brands in the international building materials and engineering market. Five support systems
Optimize and strengthen leading business
Today, Sinoma International has evolved into a global enterprise with core competitiveness system featuring scientific and
technological innovation, core equipment, engineering integration, digital intelligence, and global operations. With steady Strengthen and expand localized operations
improvement in operation quality and prominent advantages in its corporate value, the Company is steadfastly advancing the
Cultivate breakthroughs on the second track
corporate mission of "promoting green and intelligent development and serving a better world" and forging fearlessly toward the
vision of becoming a "world-class service provider in the material industry."
Main business indicators in 2025
Operating Revenue reached Net profit attributable to parent shareholders reached
Development positioning
Main force of high-end, intelligent and
Newly signed contracts reached Effective backlog reached Leader in technological innovation
green transformation
promoter of green intelligence
Industry Group pioneer of internationalized development
builder of global development
Positioning Positioning bellwether of world-class enterprises
Main business segments Market distribution
As of 31 December 2025, the main business segments and affiliated enterprises are as follows:
Production operation and
Engineering technical services maintenance services
Cement and mine Operation and maintenance services of
engineering, green energy cement production lines, mining
environmental engineering operation and maintenance services,
and diversified engineering digital intelligent services, green energy
and environmental protection services
Countries Overseas Overseas
institutions employees
The Company's main
High-end equipment manufacturing business operations
Research and development, design, include
Other business
processing and manufacturing,
Project logistics, aggregate
technical services, etc. of cement
sales, localized product sales
technical equipment, mining crushing
and material processing equipment
Cement Accumulated Stably ranking
production lines Contract overseas No.1 in the world
Business segment Affiliated enterprise
Sinoma International (Nanjing) Beijing Triumph Sinoma (Handan)
Engineering Co., Ltd. International Construction Co., Ltd.
Engineering Chengdu Design and Research Institute Engineering Co., Ltd.
Sinoma (Zhejiang)
segment of Building Materials Industry Co., Ltd Sinoma (Suzhou) Engineering Design &
CBMI Construction Co., Ltd. Construction Co., Ltd. Research Institute Co., Ltd
Equipment Group (Tianjin Cement Industry Design & Research Institute Co., Ltd., Hefei Cement
Equipment
Research & Design Institute Co., Ltd., Zhejiang Boyu M&E Industry Co., Ltd., HAZEMAG & EPR
segment
GMBH)
Mining segment Sinoma Mining Construction Co., Ltd.
Operation and
CNBM Smart Industry Technology Co., Ltd.
maintenance services
Digital intelligence Sinoma International Intelligent Technology Co., Ltd
Green energy and Sinoma International
environmental Sinoma Overseas Environmental Engineering Sinoma International Water
engineering Development Co., Ltd. Co., Ltd. Technology (Hefei) Co., Ltd.
Trade logistics Sinoma International Trading Co., Ltd. Sinoma Cargo (Nanjing) International Logistics Co.,
Note: The environmental and social data disclosed in this report are the sum of the data of the Company and its subsidiary enterprises, irrespective of
the Company's share of equity.
Honors & ESG Award Comprehensive Award
Awards ESG Growth 100 Index of Central ENR's 2025 "Top 250 International Contractors"
Enterprises
AA in Wind ESG Rating
In 2025, Sinoma International
No.1 in China's "Overseas EPC Turnover of Survey and Design Enterprises"
remained firmly committed to its
sustainable development strategy
and received notable recognition ESG Golden Bull Award Top 100 No.6 in China's "EPC Turnover of Survey and Design Enterprises" in 2025
from domestic and foreign
governments and institutions for
its performance across various
areas. The 3rd Easy Board ESG+8 "Value 100" List
China's State-owned Enterprises in Panorama Outstanding
Deepening Reform and Practice Institutional Attention Award
AA- in China Chengxin Green Finance's Rating
Best Practice in Sustainable Development Golden Roundtable Award
Best Practice
for Listed Companies Best Board of Directors in Investor Relations Management for Listed Companies
Included in S&P Global's
Sustainability Yearbook 2025 Class A in Information Disclosure
(China Edition)
by the Shanghai Stock Exchange (SSE) for seven consecutive years
Sustainability Yearbook 2026
Sinoma International's Top 10 ESG Highlights of 2025
Continuously improving the ESG governance system to build a high-quality ESG brand Improvement in quality and reach of green energy business accelerated the cultivation of green productivity
The Company was selected for inclusion in S&P Global's Sustainability Yearbook (China Edition) 2025 and, as the only Chinese
We secured our first overseas hybrid tower project in Saudi Arabia, and overseas photovoltaic projects—including DCC in Iraq
mainland enterprise in its industry, in the Sustainability Yearbook 2026. It was also recognized with multiple ESG honors,
and Limak in Türkiye—were successfully connected to the grid. The cumulative contracted installed capacity of our green
including the "Central SOEs ESG · Growth 100 Index," the ESG Golden Bull Award Top 100, and the "Best Practice in Sustainable
energy business surpassed 5.5 GW.
Development of Listed Companies" by the China Association for Public Companies (CAPCO).
Great efforts in green R&D enhanced technological supply capabilities Alternative fuel capacity surges, delivering tangible green results
In 2025, Sinoma International's green R&D investment accounted for 3.66% of its total R&D investment. The Company secured 190 newly
authorized invention patents and 13 international patents. Additionally, two standards were selected by the Ministry of Industry and
Information Technology as exemplary cases for the application and promotion of group standards. Tangshan Heavy Machinery Co., Ltd. We established an alternative fuel industrial chain platform, deployed 8 regional companies nationwide, built 18 processing
was recognized as a national-level "Little Giant" enterprise (specialized and sophisticated enterprise that produces new and unique centers, with annual production and processing capacity reaching 2.25 million tons and sales exceeding 1 million tons.
products). Meanwhile, Zhongdu Machinery and Xuzhou Heavy Machinery were both honored as "Provincial-level Green Factories."
Four major carbon reduction pathways implemented in Europe, winning sustainability award Deepening reform and advancing excellence to build world-class demonstration enterprises
With the special initiative—Deepening Reform and Advancing Excellence to Build World-class Demonstration Enterprise—
The Company successfully rolled out its suite of four major carbon reduction pathways in high-end markets including France and
successfully concluded, the Company was awarded the Special Prize for Outstanding Achievements in SOE Reform, reinforcing
Belgium, with green-oriented projects accounting for 92% of newly signed contracts in Europe. These efforts contributed to the
our commitment to becoming a world-class materials industry service provider—characterized by excellence in products,
Company being honored with the "Sustainability—Net Zero Award."
distinction in brand, leadership in innovation, and modernity in governance.
Intelligent manufacturing advanced deeply, "zero-employee factory" leading the industry Consistently A-rated in disclosure, recognized repeatedly for governance excellence
"Intelligent Cement Production Complete Technology Development and Zero-Employee Factory Application" passed acceptance The Company was rated Grade A for information disclosure by the Shanghai Stock Exchange for 7 consecutive years, and once
inspection, establishing the cement industry's first certified "zero-employee factory." The "Three Systems" work advanced solidly, again awarded the Golden Roundtable Award for Best Board of Directors, Best Practices in Listed Company Board Governance,
and the company was included in MIIT's "5G Factory" directory. and Best Practices in Investor Relations Management.
Deepening international partnerships, brand reputation further enhanced Championing role models, empowering talent through incentives
We successfully hosted the 3rd Sinoma Cement Green & Intelligence Summit, bringing together over 580 industry elites and
The Company officially designated its first batch of five Model Worker Innovation Studios, held the sixth session of its Young and Mid-
experts from 49 countries. The event was once again featured on China's national television, CCTV. We held promotion Career Leadership Development Program, and implemented its inaugural incentive payout tied to the commercialization of scientific
conferences and innovation achievement exhibitions in Indonesia and Iraq, further strengthening customer relationships and and technological achievements. Additionally, it introduced performance-based salary pool rewards for core talent in digital-intelligent
reinforcing our brand presence in key markets. and green energy sectors, continuously strengthening the role-model effect and systematic cultivation of a high-caliber talent pipeline.
Sustainable development ESG governance structure
management Sinoma International has established an ESG management system under the responsibility of the Board of Directors. The system,
led by the management and initiated by the responsible departments, requires cross-departmental collaboration and involvement
from entities at all levels.
Sustainability strategies
The Board of Directors is the highest decision-making body for the Company's ESG efforts, responsible for comprehensively
guiding the Company's sustainable development strategy and overseeing, supervising, deliberating, and approving significant ESG-
related matters such as the Company's ESG strategy and annual ESG report. The Strategy, Investment and ESG Committee is
set under the Board of Directors, and responsible for researching and formulating the Company's overall objective and
Sinoma International has formulated the "1324" sustainability strategy. Internally, the Company establishes a modernized implementation strategies for ESG management, assessing and identifying the Company's ESG risks and opportunities, and
corporate governance framework, adheres to compliant and clean operation, and strives to safeguard employees' rights and evaluating, prioritizing and managing important ESG-related matters (including risk management, information security, waste
interests. By maintaining production and operation in a clean, green, and recyclable manner, Sinoma International aims to solidify management and pollutant emission, climate change-related risks and opportunities, biodiversity commitments, supplier ESG
the foundation for our sustainable development. Externally, Sinoma International continuously enhances service quality, management, occupational safety and health, labor management, business ethics, etc.), and reporting significant matters
builds a sustainable supply chain, seizes opportunities in clean technologies, pursues breakthroughs in the innovation of green and regarding ESG work to the Board of Directors on a regular basis.
low-carbon products and services, and actively responds to climate change, thus building a community with a shared future for The Company clarifies the ESG management responsibilities of the leading department and each functional management
mankind that supports the sustainability of the industry, society and global community. department, while establishing and improving ESG management norms and processes. Meanwhile, the Company statistically
analyzes ESG-related information and data, organizes and carries out ESG practice activities, implements specific objectives and
action plans set up by the Company in ESG management, and establishes effective communication with ESG stakeholders.
Affiliated enterprises clearly define the ESG main responsible department, improve their ESG management systems under the
Company's unified planning, and carry out various forms of responsibility fulfillment practices in accordance with local conditions
under the unified planning of the Company.
Peg remuneration of management to ESG
performance
In accordance with the Company's development strategy and
annual budget, the Company has set clear annual business
objectives, which are decomposed and implemented level by
level among the Company's management team, affiliated
Board of Directors
enterprises and headquarters departments. The 2025 Annual
Business Performance Responsibility Letter has been signed
accordingly. The performance assessment indicator system
fully integrates ESG-related issues, covering such key areas as
work safety, environmental management, energy
conservation and consumption reduction, carbon peaking
and carbon neutrality goals, integrity and compliance, data
privacy protection, employee development, ESG information
disclosure and ESG rating improvement. Among them,
"Energy Conservation and Ecological Environment Protection"
serves as a key indicator, accounting for 10% of the overall
Strategy, Investment and ESG business assessment weight. This indicator is applied to
Committee assessments at all levels of the Company's headquarters and
affiliated enterprises, and the performance evaluation of both
headquarters employees and members of the senior
management of affiliated enterprises is directly linked to this
indicator.
To systematically advance the institutionalization and
Guided by "one core, three values, two main lines and four goals," the Company establishes a standardized and transparent
systematization of ESG management, the Company has
governance system, fosters an honest and clean business environment, builds a dynamic and capable talent team, and promotes formulated and issued the Sinoma International ESG
the healthy and sustainable development of the Company. The Company adopts a clean and environmentally friendly production Assessment and Management Measures, further clarifying the
method, advances a low-consumption and recycling operational model, and maintains a healthy and harmonious ecological ESG evaluation criteria, procedures and application
mechanism of assessment results. In accordance with these
environment to drive its green and sustainable development. The Company breaks through innovative and advanced technological rules, the final ESG assessment score is directly integrated into
capabilities, leads the intelligent and high-end industrial upgrading, strengthens the partnership for co-construction and win-win the annual business performance appraisal system, so as to
outcomes, and enables the sustainable development of the industrial chain. The Company provides green and low-carbon ESG Leading Department fully align ESG performance with business accountability,
+ Functional Affiliated Enterprises incentives and restraints, and promote the deep integration of
solutions, cultivates the ability to respond to global climate change, practices the "Belt and Road" initiative of consultation, co-
sustainable development goals into the Company's operation.
construction, and sharing, promotes the deep integration of global technology, talent, and culture, and contributes to the Departments
harmonious and sustainable development of the world.
Stakeholder Engagement
Sinoma International has identified key stakeholders related to our operations and maintain smooth and efficient communication
with them. At the same time, we actively understand and respond to stakeholders' expectations and demands, involving them in
the ESG decision-making process.
Primary communication Primary communication
Key stakeholders Expectations and appeals Communication and response Key stakeholders Expectations and appeals Communication and response
channels channels
• ESG materiality • Implement national • Continuously strengthen
assessment policies compliance management
Procurement bidding Practice fair competition Implement sunshine procurement
questionnaires
• • •
Support regional Participate in government related notice Strengthen strategic Create a responsible supply chain
• •
Phones/Emails development meetings and cooperation
• •
Inspection and cooperation
•
Governments and
• Participate in industry
Conferences and Compliant operations by Respond to relevant national
•
• • • supervision Promote industry organizations and conferences
regulatory authorities conversations law policies
•
• Supplier/Contractor development • Expand multi-party communication
• Press • Create market values • Continuously create business conferences
releases/Announcements Control the operation risk performance • Phones/Emails
Suppliers/Contractors
•
• ESG materiality • Strengthen information • Improve corporate governance and • Conferences and
assessment disclosure risk management conversations
questionnaire Periodically publish reports and
• Develop green technologies • • ESG materiality
• Annual/Interim promptly disclose information assessment
performance release Protect the ecological
questionnaires
•
environment • Hold shareholders' meetings to
conferences strengthen investor relationship
Shareholders/Investors
• Shareholders' meetings management
• Investor Meeting • Strengthen technological R&D for
low-carbon industry development • Phones/Emails • Practice fair competition • Maintain a healthy market
• Adhere to green production and • Conferences and • Strengthening strategic co- ecosystem
construction conversations operation • Participate in industry
ESG materiality Develop Green Technology organizations and conferences
• Board meetings • High-quality service • Lean product quality • •
Industry/Business assessment Promote industry Expand multi-party communication
Shareholders' meetings Compliant operations by Establish and improve customer • •
questionnaires
• • •
law service system partners development Strengthen technological R&D for
Employee
•
low-carbon industry development
•
meetings/seminars • Intensify innovation efforts • Continuously strengthen • Response to climate
compliance management change
• ESG materiality • Strengthen information
Directors and senior assessment disclosure • Strengthen technological R&D
management questionnaires • Periodically publish reports and
promptly disclose information
• Phones/Emails • Adhere to energy saving • Adhere to green production and
Employee Remuneration and welfare Develop a competitive salary and emission reduction construction
Conferences and
• • •
meetings/seminars guarantee system and welfare guarantee
•
conversations Protect the ecological Improve energy and resource use
mechanism
• •
Employee performance Employee growth and environment efficiency and implement energy
ESG materiality
• •
appraisal interviews development Organize employee training,
•
•
assessment Engage in public welfare conservation and emission
improve the promotion
•
On-site investigation • Occupational health and questionnaires and charity reduction
Community
•
safety mechanism, and build the
Employee activities Support community Carry out voluntary public welfare
development platform members/Public welfare
• • •
Employee care construction activities
Employees •
Improve working conditions and organizations
Assist in rural revitalization
•
• Democratic management care for employees in difficulties
•
Hold enterprise open day activities
Carry out employee activities and
•
•
strengthen employee
communication
Phones/Emails Ensure product quality Ensure product quality
Press Maintain good relationships Expand publicity channels
• • •
• • •
Conferences and High-quality service Improve client service system releases/Announcements Establish positive Invite stakeholders to visit
• • •
conversations
• •
Protect customer rights and Strengthen technological R&D for Media interview interaction Communicate with NGOs
• • •
ESG materiality interests low-carbon industry development
•
ESG materiality
•
assessment
•
• Develop green technologies • Adhere to green production and Media assessment
Clients questionnaires construction
• Response to climate questionnaires
changes
Materiality assessment
Sinoma International has integrated materiality assessment into its overall enterprise risk management (ERM) process and
conducts materiality assessment on an annual basis. In 2025, in accordance with the requirements of the Self-Regulatory Guidelines
for Listed Companies No. 14 – Sustainability Reports (Trial) issued by the Shanghai Stock Exchange (hereinafter referred to as the
"Guidelines"), and with reference to mainstream domestic and international sustainability standards, the Company systematically
carried out its first materiality assessment based on the "double materiality" framework.
High
Based on the 21 core issues specified in the Guidelines, this assessment has incorporated company-specific issues in light of
the Company's industry characteristics as a global leader in building materials technology, equipment and engineering
Innovation-Driven
services, resulting in an assessment list totaling 23 issues. Development
In accordance with the four core steps for "double materiality" assessment outlined in the Guidelines, the Company identified Product & Service Anti-Bribery and Anti-
Employees
the short-, medium- and long-term financial impacts of issues on the Company, as well as the actual and potential impacts of Safety and Quality Corruption
the Company's performance on various issues to the economy, society and the environment. The detailed analysis process is
as follows: Data Security & Customer
Due Diligence
Privacy Protection
Supply Chain Security
Understanding the context of the Company's activities
and business relationships
Compliance Management
& Resilience
Anti-Unfair
Competition
• Conducted a comprehensive analysis of its core business, value • Using the 21 foundational issues Social Contribution
Information Disclosure
Impact Materiality
chain segments, and key business relationships, and systematically specified in the SSE Guidelines as a Climate Change
examined the sustainability impacts of internal operations, project framework, the Company further Circular Green and Low-Carbon
Stakeholder Mitigation &
Engagement Adaptation
execution, and upstream and downstream supply chains on society identified two material issues with Economy Industrial Chain
and the environment. distinctive characteristics: "Green
Pollutant
and Low-carbon Value Chain Emissions
• Identified potential risks and opportunities for the Company arising Development" and "Enhanced ESG Waste Management
from changes in the external environment, taking into account Information Disclosure," based on Water Resource
macroeconomic policies, industry regulatory developments, and industry characteristics, regulatory Management & Utilization
Technology
sustainability trends in 2025. priorities, and peer benchmarking, Ethics
• Mapped and defined key stakeholders, including employees, resulting in a preliminary list of 23
customers, suppliers, investors, government, and communities, as issues.
Ecosystem and
an important foundation for subsequent assessment. Biodiversity
Energy Use &
Management
Conservation
Fair Treatment of Rural Revitalization
Small and Medium-
Reviewing and Confirming 04 Assessing Materiality of issues 03
sized Enterprises
issues
• The Company integrated the results • Impact Materiality Assessment: Extensive stakeholder feedback was
of impact materiality and financial collected through questionnaires from both internal and external
materiality assessments, and used parties. A comprehensive evaluation was conducted based on two
matrix analysis to map the dimensions: the "severity of impact" (including scale, scope, and
distribution of each issue across the irreversibility of impacts) and the "likelihood of impact." The final
dual dimensions. Based on the impact materiality assessment results were formed by synthesizing
Company's strategy and risk multi-stakeholder evaluations and incorporating advice from
Low High
management requirements, internal and external experts.
Financial Materiality
materiality thresholds were set, and
a final list of high-priority issues with • Financial Materiality Assessment: The Company engaged senior
"double materiality" was executives, heads of business and functional departments, and
determined. relevant experts to analyze the potential short-, medium-, and long-
term impacts of each issue on the Company's financial position,
• The list was reviewed and confirmed operating results, and cash flow. This analysis was based on two
by the Company's Strategy, dimensions: the "likelihood of financial impact occurrence" and the
Investment and ESG Committee, "magnitude of financial impact."
serving as the substantive basis for
disclosures in this report.
The 14th Five-Year Plan: A New Chapter in Our Sustainable Development
The 14th Five-Year Plan: A New Chapter
Practice as Evidence: Painting Low-Carbon Landscapes
in Our Sustainable Development Innovation-driven low-carbon breakthroughs
At the Building Materials Industry Conference, the Company officially launched the world's first oxy-fuel combustion coupled
carbon capture technology for cement—the Qingzhou CUCC 200,000-tonne Oxy-fuel Combustion Enrichment and Purification
Demonstration Project. As the world's largest oxy-fuel combustion carbon capture and utilization demonstration project in the
During the "14th Five-Year Plan" period, Sinoma International achieved leapfrog development from strategic consciousness to cement industry, this project utilizes independently developed technology to boost the CO2 concentration in flue gas to over 80%,
global leadership. Within the historical continuum of sustainable development, we have made a decisive leap—advancing from top- while reducing comprehensive energy consumption by more than 40% compared to conventional methods.
level design to systematic implementation, and from technological breakthroughs to global empowerment. Over the past five years,
The project has been featured in a special report by the Global CCS Institute and received the 2024 "Climate Action Technology
we have not only built an ESG governance framework fully aligned with our corporate strategy, but have also left an indelible mark
and Engineering Award" from the World Cement Association (WCA), marking the Company's pioneering role in addressing the
of Sinoma International on the green transformation of the global cement industry through a series of milestone breakthroughs and
carbon reduction challenges facing the industry.
benchmark projects.
Driving growth with a clear strategic roadmap
Green benchmark projects leading the way
Thanks to its cutting-edge low-carbon solutions, the Company has successfully implemented green projects across multiple
We have embedded the concept of sustainable development into our core strategy, establishing the forward-looking "1324" European countries, establishing itself as the Chinese contractor with the largest portfolio of low-carbon projects in the region.
Sustainable Development Framework. This framework guides our ESG journey with a dual focus: "Strengthening the Foundation of Notably, green initiatives account for 92% of newly signed contracts in Europe.
the Company's Own Sustainable Development" and "Serving the Industry, Society, and Global Sustainability." Meanwhile, aligned In France, the SPL project—the first rotary coupled clay calcination line for Holcim Group worldwide—has achieved 100% fuel
with the goals of the 14th Five-Year Plan, we have developed a rigorous strategic ESG action plan. Through a closed-loop target substitution, creating a "zero-fossil-fuel" green facility. It cuts CO2 emissions by 100,000 tons annually and delivers around EUR 8.5
management mechanism , we ensure the effective implementation of all tasks. million in carbon credit revenue each year.
The Go4Zero project in Belgium marks the construction of Europe's first "zero-carbon" plant. Once operational, it is expected to
"1324" Sustainable Development Strategy reduce CO2 emissions by 1.1 million tons per year, with a fuel substitution rate of 95%.
Resource recycling and green manufacturing
The Wengfu Phosphogypsum Decomposition to Sulfuric Acid and Co-produced Cement Project in Guizhou successfully applied self-
"Solidify the foundation for our "Support the sustainability of the developed phosphogypsum resource utilization technology on the world's largest phosphogypsum processing line. The project
sustainable development" industry, society and global community"
reduces limestone mining by 800,000 tons annually and cuts CO2 emissions by 300,000 tons per year.
The Poland MAL01 Project developed high thermal substitution rate alternative fuel direct injection technology for cement kilns,
achieving an alternative fuel thermal substitution rate of at least 90%. The project was selected as a "Typical Case of China-EU
Green and Low-Carbon Development Cooperation."
The France MK3 project achieved a thermal substitution rate exceeding 80%, enabling a reduction of 241 kg of CO2 per ton of
Systematically Guiding the Company's ESG Progress clinker after operation, with annual emission reductions of approximately 192,000 tons and estimated annual carbon revenue of
about EUR 20 million.
Green Leadership: Making Low-Carbon Breakthroughs Green operations and smart mines
Strategic Guidelines: Deepening Our Low-Carbon Footprint
The High-end Equipment Intelligent Manufacturing Park officially commenced operations, integrating top-tier cement equipment—
awarded with honors such as "Single Champion," "Pillar of Great Power," and the National Science and Technology Progress
Award—to establish a world-class intelligent manufacturing base. The Company has cumulatively developed 193 green mines and
We have embedded climate change considerations across our decision-making, production, and daily operations. This has 15 green factories, including 48 national-level green mines and 9 national-level green factories.
culminated in the development of the Carbon Peak and Carbon Neutrality Implementation Plan of SINOMA International
The Chuzhou CUCC Green Mine Project, ranked first in the national green mine selection, features an advanced 5G smart mining
Engineering Co., Ltd., which provides a definitive timeline and roadmap for our journey. By executing this plan, we are actively
system that ensures efficient production with minimal environmental impact.
contributing to the national and the Group's "dual-carbon" goals, demonstrating leadership through concrete actions.
The 14th Five-Year Plan: A New Chapter in Our Sustainable Development
Digital Intelligence Driving, Talent Empowering Practice as the Soil: Cultivating the Fertile Ground of Craftsmanship
In response to the national digital development strategy, Sinoma International released the 14th Five-Year Plan for Digital Strategy,
innovatively proposing the "54321" digital development blueprint. This establishes our vision to "comprehensively build a Digital and intelligent integration and interconnection
digitalized enterprise and become a world-leading provider of intelligent solutions for the materials industry," thereby injecting
technological impetus into our ESG management. The "Development of Intelligent Cement Production Complete Technology and Application of Zero-Employee Factory" project
successfully passed acceptance review, establishing the cement industry's first certified "zero-employee factory." Alongside this
milestone, the Equipment ERP Platform, Digital Project Supervision Platform, and Computing Power Platform were completed and
launched. The Tax Platform achieved full-level enterprise operation, while Version 1.2 of the Group Construction Enterprise Safety
Management Platform was successfully released. These achievements represent excellent practices in delivering intelligent
solutions for the building materials industry.
To fully build a digitalized Sinoma
International and become a world-class
intelligent solution provider for the
materials industry
Industrial innovation and empowerment
The Company added six new nationally recognized "Little Giant" enterprises—specialized and sophisticated SMEs that produce
Five digital Digital R&D and Smart production Intelligent business Comprehensive and Industrial
novel and unique products, further reinforcing its core competitiveness. We have also successfully built 60 smart factories and 33
capabilities design and operations management agile services synergy
digital mines, leveraging intelligent technologies to empower the transformation and upgrading of the industry.
Four digital
transformations
Unified planning Unified standards Unified platforms Unified resources Talent cultivation and incentives
The Company officially designated its first five Model Worker Innovation Studios, harnessing the exemplary influence of master
craftsmen to inspire innovation across the organization. The "Emerging Leaders Training Program" has been launched as a flagship
Digital functional Digital business Digital products training initiative to systematically develop future management leaders. A robust mechanism for the selection, development,
management management and services retention, and deployment of project managers has been institutionalized, aligning talent management with structured innovation
incentives. Most notably, the Company executed its inaugural incentive payout linked to the commercialization of scientific and
Smart
Smart Market R&D and Smart cement Energy Industrial chain technological achievements, introducing performance-based salary pool rewards for core talent in digital-intelligent and green
human
safety synergy design factory management synergy
resources energy sectors—continuously reinforcing role-model leadership and a sustainable talent pipeline.
Three Smart Smart Smart Smart
Smart mine
Intelligent Digital industrial
application finance investment procurement manufacturing equipment O&M integration
platforms Social responsibility and contribution
Carbon peaking &
Smart mine Industry spare
Intelligent office EPC project management carbon neutrality The Company prioritizes local employment as a key contribution to host communities. By 2025, we had engaged over 22,000 local
O&M parts platform
platform
workers, with full-level overseas local employees (including subcontractors), accounting for more than 63% of the workforce. We
regularly host "Smart Use of Resources Open Day" events, inviting local employees and their families to participate, which
Integrated operations management & control platform strengthens their sense of belonging and connection to the Company. Cultural experience sessions are also organized to foster
mutual understanding and integration. Besides, we actively support the Group's charity fund and encourage employees to engage in
volunteer activities. Through ongoing charitable donations, disaster relief efforts, and community project assistance, we remain
committed to giving back to society in tangible ways.
One set of data
One data platform One data governance system
standards
Two-layer
digital
infrastructure Unified technology Hybrid cloud
Global network
platform deployment
One governance Digital management model Digital organization Digital institutional system
system
The 14th Five-Year Plan: A New Chapter in Our Sustainable Development
Steady, Efficient, and Standardized Governance
Sinoma International has systematically established an ESG governance system guided by strategy, supported by organizational
structure, and backed by institutional policies. The Company has formally developed and implemented an ESG governance
framework at the Board level. In accordance with the Implementing Rules for the Strategy, Investment and ESG Committee of the
Board of Directors, the Strategy, Investment and ESG Committee is fully responsible for overseeing ESG-related matters, including As we reflect on the 14th Five-Year Plan period
climate change. Its duties include reviewing the sustainable development vision, monitoring the execution of targets and strategies,
we have made steady and significant progress on our journey toward sustainable development. Through
and reporting material issues to the Board of Directors.
robust systems, technological breakthroughs, and pioneering demonstration projects, we have not only
achieved a leapfrog improvement in our ESG management capabilities, but also showcased the innovative
Systems as the Shield: Strengthening the Baseline of Compliance
strength and responsible leadership of Chinese enterprises in serving the global cement industry's green
and low-carbon transition.
The Company has systematically developed an ESG management system. It has publicly released a comprehensive set of
sustainability-related policies covering key areas such as the environment, occupational health and safety, anti-corruption and
business ethics, human rights protection, supplier conduct, sustainable supply chain management, biodiversity conservation,
Board diversity, and tax compliance. The Company has formulated an ESG performance evaluation method for its subsidiaries,
establishing a quantitative assessment system that sets clear phased requirements for their ESG work. By improving special ESG Looking ahead
management systems, the Company has integrated ESG requirements into all aspects of its overall decision-making, production we will remain steadfast in our commitment to sustainable development. We will leverage the governance,
operations, and daily management.
technological, and practical strengths accumulated during the 14th Five-Year Plan period as sustained
momentum to drive industry progress and contribute to global ecological well-being. As we embark on the
Practice as the Mirror: Reflecting the Light of Good Governance 15th Five-Year Plan, we will strive to write a new chapter in the modernization journey featuring harmonious
coexistence between humanity and nature.
Governance innovation
Building on the momentum of the "Three-Year Action Plan of State-owned Enterprises Reform" and the subsequent "Reform
Deepening and Upgrading Initiative," the Company has evolved from "Double Hundred" pilot to comprehensive reform—repeatedly
recognized by SASAC as a benchmark and top performer in both the "Double Hundred" and "Sci-Tech Reform" evaluations.
The Company has established a robust "1+N" corporate governance framework, continuously refining its Board deliberation
protocols and accountability mechanisms. It has achieved full compliance with Board establishment requirements, ensuring that
external directors hold a majority of seats. Pioneering the "Nine Joint Working Mechanisms for External Directors," the Company has
significantly enhanced the scientific rigor, procedural standardization, transparency, and operational efficiency of Board decision-
making.
Performance breakthrough
Our score in the S&P Global Corporate Sustainability Assessment (CSA) rose from a relatively low level at the beginning of the 14th
Five-Year Plan period to 62 points, surpassing 95% of global peers in the cement industry. This outstanding performance has been
included in both the S&P Global Sustainability Yearbook 2025 (China Edition) and the S&P Global Sustainability Yearbook 2026
(Global Edition), marking that our ESG management has reached internationally advanced levels.
Strengthening Governance
Foundations
Consolidating Governance
Sinoma International continues to optimize corporate governance, standardize governance structures,
deepen ESG governance, effectively protect shareholders' rights and interests, and focus on enhancing
corporate governance capabilities.
Foundations to Ensure Steady
and Healthy Operations for In 2025, the Company received a series of corporate governance awards
Development ? "Golden Roundtable Award"—"Best Board of Directors,"
The 20th
"Most Strategic Chairman Award"
Strengthening Governance Foundations
?
? 2025 Best Practice Cases in Listed Company Board Governance
Consecutively honored as Best Practice for Annual Report Performance Briefings of
Compliance and Integrity in Operations
?
Listed Companies for four years
Safeguarding Employee Rights and Interests Standardizing governance structures
In accordance with laws, regulations, and normative documents such as the Company Law of the People's
Republic of China, the Securities Law of the People's Republic of China, and the Code of Corporate
Governance for Listed Companies, Sinoma International has established a comprehensive framework of
corporate policies and a robust governance structure comprising the Shareholders' Meeting, the Board of
Directors, and the Management. This system is characterized by scientific rigor, standardization, clear
accountability, effective checks and balances, and operational efficiency, thereby continuously enhancing the
transparency and efficacy of our corporate governance.
In 2025
The Company held
The General Meeting of Shareholders is the highest authority of the Company. In strict compliance Safeguarding shareholders' rights and interests
General with the Rules for Shareholders' Meetings of Listed Companies and the Articles of Association, the
Meeting of Company duly convenes and holds shareholders' meetings. We are committed to safeguarding Sinoma International attaches great importance to creating shareholder value, adheres to rewarding shareholders, strengthens
Shareholders shareholders' lawful rights, ensuring equitable treatment for all, and maximizing accessibility to proactive investor relations management, and has significantly enhanced its image in the capital market. Furthermore, the
facilitate the full exercise of shareholder rights. Company has established a robust mechanism to safeguard shareholders' rights and interests and enhanced its engagement
framework. By timely and accurately disclosing key corporate information—ranging from major strategic decisions and financial
performance to CSR initiatives—we have earned the trust and steadfast support of our shareholders and investors.
Creating value for shareholders
The Company's board of directors consists of 7 directors, including 5 external directors (3 of whom
are independent directors). The board has established four specialized committees: the Strategy,
Sinoma International continuously optimizes business management and enhances operational quality to create outstanding and
Investment and ESG Committee; the Audit and Risk Management Committee; the Remuneration
stable value returns for shareholders. In 2025, the Company achieved steady progress in its operating performance, enhancing its
and Assessment Committee; and the Nomination Committee, effectively ensuring scientific
value creation capabilities and bolstering market recognition and investor confidence.
strategic decision-making.
Board of The Company ensures board diversity by comprehensively considering factors such as age,
Directors educational background, professional experience, skills, and industry expertise.
The Company has paid cash dividends
consistently every year since its listing with cumulative distributions surpassing
CNY 7.4 billion
Standardizing information disclosure
General Meeting of
Shareholders Sinoma International strictly complies with the Administrative Measures for Information Disclosure of Listed Companies to fulfill its
information disclosure management obligations, ensuring the authenticity, accuracy, completeness, and timeliness of information
disclosure. The Company's information disclosure strategy is anchored in regulatory compliance, while emphasizing precision in
Strategy, Investment and ESG
Committee detail, distinctive content, and brand enhancement. By proactively articulating our business philosophy to investors, we aim to
facilitate accurate value discovery. The Company strictly adheres to its Insider Information Registration and Management Policy,
standardizing the reporting, transmission, and confidentiality protocols for material non-public information. By ensuring robust
Audit and Risk Management information security, we facilitate shareholders' timely access to accurate updates on operational developments, financial
Committee performance, and material events, thereby effectively safeguarding the legitimate rights and interests of all investors. In 2025, the
Board Secretary Board of Directors Company released four periodic reports and 83 ad-hoc announcements, achieving a record of zero corrections, zero supplements,
and zero written regulatory inquiries. This outstanding performance contributed to the Company securing the Shanghai Stock
Remuneration and Assessment Exchange's highest "Class A" rating for information disclosure for the seventh consecutive year.
Committee
Unblocking communication channels
Nomination Committee
Sinoma International has elevated its proactive investor relations strategy by diversifying communication channels and formats.
Management Team Leveraging a hybrid "online-plus-offline" approach, the Company actively engages with retail shareholders, institutional analysts,
and potential investors to provide comprehensive insights into operational performance, strategic planning, and key
developments. Through regular performance briefings, roadshows, and multimedia content, we facilitate direct dialogue between
the Management and the investment community. This ensures the accurate and holistic transmission of corporate value, fostering a
virtuous cycle where effective management drives sustainable value growth.
Governance structure
Compliance and Integrity
By closely tracking changes in the legal and regulatory landscape, the Company ensures prompt compliance reviews and drives a
in Operations
dynamic cycle of policy lifecycle management. This involves the repeal of obsolete rules, amendment of existing ones, and
enactment of new provisions. This continuous optimization of our institutional framework robustly underpins our compliance
management system. In 2025, the Company conducted five group-wide compliance risk inspections and completed effectiveness
evaluations for five subsidiaries' compliance systems.
Amidst a complex and challenging global environment, Sinoma International adheres to a prudent "bottom-line" mindset, Cultivating a compliance culture
prioritizing risk awareness. The Company has constructed a multi-layered defense system by integrating rigorous management
controls with strong ethical governance. Specifically, we have established comprehensive risk prevention mechanisms,
strengthened internal controls, and enforced strict compliance, while reinforcing Party conduct and integrity to build robust anti- Sinoma International prioritizes the building of integrity and compliance culture
corruption moral barriers. This holistic approach has securely anchored the Company's trajectory toward sustainable, high-quality
development.
? Throughout the year, 8,285 employees across all levels signed Compliance Commitment Statement.
Upholding law-based compliance
? The annual Rule of Law and Compliance Management Conference was convened to analyze achievements and shortcomings
while deploying key tasks.
Sinoma International systematically strengthens its compliance framework by refining systems, optimizing operational ? We orchestrated a multi-tiered training program, mobilizing subsidiaries at all levels to attend sessions hosted by SASAC, the
mechanisms, enforcing accountability, and cultivating a robust compliance culture. By embedding compliance requirements into Group, and Sinoma. These trainings covered critical topics including anti-monopoly compliance, overseas operations,
every facet of business operations and integrating them throughout the entire lifecycle of decision-making, execution, and intellectual property risk mitigation, and cross-border M&A. Complementing these external sessions, we independently
oversight, the Company provides a solid foundation for deepening reforms and achieving high-quality development. launched a series of internal legal compliance workshops to interpret and implement newly enacted laws, regulations, and
policies. In total, the Company conducted or facilitated 15 training sessions throughout the year, reaching a cumulative
Refining the compliance system attendance of 6,649 person-times.
? The Company ensured timely dissemination of critical legal and regulatory updates, as well as the status of internal
Sinoma International has built a robust compliance management system, with compliance committees established across all compliance operations, to senior executives and department heads through a multi-channel approach comprising quarterly
organizational tiers. Furthermore, the Company has either established specialized legal and compliance departments or designated compliance bulletins, executive management meetings, and specialized training sessions.
specific units to oversee these functions. It has issued the Overseas Comprehensive Compliance System Construction Plan and
actively fulfills its compliance responsibilities. The Company has fully institutionalized the "First Person Accountable" mechanism to ? The Company maintains a mechanism for the immediate report of any legal or compliance violations to senior management
drive legal governance. A multi-tiered management system has been established, featuring strategic leadership from the "First for review. Accountability is strictly enforced against accountable parties based on the specific findings.
Person Accountable," coordination by the Compliance Committee, and professional guidance from the General Counsel.
During the reporting period, the Company incurred no violations of laws or regulations, nor was it subject to any administrative
Operationally, the Legal & Compliance Department spearheads implementation, while business and functional units bear primary
?
accountability for execution. Complementing this, disciplinary inspection and audit departments provide independent supervision. penalties or fines.
Together, these forces create a synergistic engine to propel comprehensive compliance management.
Strengthening internal control
The Company consistently strengthens professional compliance staffing, enhancing the development of legal compliance
specialists and full-time/part-time compliance management personnel. By the end of 2025, the Company and its subsidiaries
employed 54 full-time compliance officers and 436 part-time compliance administrators.
In 2025, the Company launched a comprehensive effectiveness evaluation of its compliance management system. This initiative Sinoma International has established a robust risk and internal control framework and developed comprehensive control manuals.
involved organization-wide self-assessments across all tiers, culminating in an annual Compliance Management Report submitted The Company coordinates annual internal control evaluations across all organizational tiers, tracks the implementation of
to the Board for review. Furthermore, the system underwent rigorous third-party audit and certification. These measures have corrective actions, and conducts effectiveness testing on critical business processes. Furthermore, by engaging external auditors for
significantly enhanced the scientific rigor and operational precision of our compliance framework, propelling compliance independent internal control audits and timely disclosing both evaluation and audit reports, we have effectively strengthened our
management to new depths. The Company has successfully obtained GB/T 35770-2022/ISO 37301: 2021 Compliance Management
corporate governance and propelled high-quality development.
System certification, receiving the "Dual Certification" from SGS.
Strengthening compliance frameworks In 2025
Sinoma International has rigorously implemented a multi-layered compliance framework grounded in national laws—including the
Central State-owned Enterprises Compliance Management Measures, the Advertising Law of the People's Republic of China, and the the Company further strengthened internal controls, conducted internal control evaluations and audits, achieving full
Trademark Law of the People's Republic of China—as well as Group and corporate regulations such as the Compliance coverage of the internal control system across all levels. We organized subsidiaries across all levels to carry out internal
Management Policy and the Guidance for Overseas Business Compliance. To operationalize these standards, the Company issued control self-assessments and internal control audits, completing 84 internal control compliance audits with 100%
distinct Overseas Compliance Manual and Domestic Compliance Manual, mandating strict adherence to business ethics, including rectification of internal control deficiencies. A total of 33 supervision evaluations on internal control were completed by
anti-bribery and anti-money laundering and specific operational requirements for trademark and advertising management. subsidiaries. We directed our overseas entities to strictly enforce internal control manuals to bolster management
Furthermore, to proactively mitigate risks in critical areas such as contract signing, accounts receivable recovery, M&A, and dispute
effectiveness. We have secured unqualified internal control audit opinions from independent external auditors for 14
resolution, Sinoma International released the Legal and Contract Risk Management Manual for Overseas EPC Projects and the
consecutive years.
Model Subcontract Text for International Engineering Projects. These initiatives provide comprehensive, targeted guidance to all
subsidiaries.
Deepening risk management
Sinoma International has established a systematic and effective risk management system. In this system, business and functional Sinoma International is committed to fostering a culture where everyone prioritizes risk management. To achieve this, the Company
departments serve as the first line of defense for daily risk management; professional departments, such as Legal and Compliance has appointed Risk Management Officers in every department and designated Risk Liaisons in all subsidiaries. Through
Department, act as the second line of defense for continuous risk monitoring; and departments including Discipline Inspection, strengthened promotion, training, and implementation of risk management practices, we actively drive the development of a
Audit, and Patrol serve as the third line of defense to implement risk oversight, thereby solidifying the Three Lines of Defense. The robust risk culture.
risk function of the third line of defense operates independently from business and functional departments and reports
independently to both management and the Board of Directors. Risk management training
The Company annually prepares a risk management report covering major risk identification and assessment, risk management
strategies, and solutions, which is subject to review by the Board's specialized committees. In 2025, the Company identified and
The Company leverages various platforms—including localized lecture series, strategy seminars, training sessions on
assessed five company-level major risks in strategy and operational management, proposed 16 risk mitigation measures, and
?
standardized corporate governance operations, and follow-up training for independent directors organized by the
experienced no major risk events throughout the year.
Shanghai Stock Exchange—to provide both regular and ad-hoc risk management training to all Board Directors.
Risk closed-loop management mechanism
? Furthermore, the Company engages professional intermediaries to deliver specialized training on audit quality and risk
prevention to internal auditors, risk management officers, and compliance officers. These initiatives are designed to
further enhance the risk acuity and preventive awareness of all practitioners.
At the beginning of each year, the Company organizes comprehensive risk
screenings, collecting identified risks from risk-owning departments and
Promoting fair competition
Identification subsidiaries to continuously update the risk information database.
Sinoma International strictly prohibits unfair competition practices, implements the Measures for Accountability for Illegal Business
Risks are evaluated for significance based on their impact and likelihood, Operations and Investments, and adheres to specific requirements in its domestic and international compliance manuals regarding
categorized into four levels: General, Major, Significant, and Critical. Through trade secret protection, anti-bribery, anti-monopoly, prohibition of abuse of market dominance, and anti-unfair competition. The
this process, the top five risks requiring prioritized control are identified. Evaluation Company enhances employee awareness through anti-unfair competition training; The Company has established reporting
procedures for anti-competitive behavior, publicly disclosing reporting channels through its official website, internal OA system,
and compliance department hotline to stakeholders such as employees, suppliers, and customers, and has implemented
An early-warning mechanism for major risks is established, and monitoring standardized processes for report acceptance, investigation, and feedback. The Company maintains strict confidentiality and
indicators are updated in a timely manner. The Company organizes robust protection for whistleblowers to ensure reported matters are handled promptly and impartially.
subsidiaries, functional departments, and key projects to participate in
In 2025, the Company recorded no incidents of unfair competition such as abuse of market dominance, confusion marketing,
annual dynamic risk monitoring. Each control unit is required to submit
Monitoring commercial bribery, false advertising, trade secret infringement, or fraudulent prize promotions.
quarterly reports on risk control status and risk development trends.
Risks showing a continuous upward trend on the dashboard are given Upholding integrity as the bottom line
priority attention and analysis. A Quarterly Risk Monitoring Report is
generated, detailing risk exposure, risk appetite, risk performance, risk Sinoma International strictly adheres to anti-corruption policies and regulations, having perfected an integrity management system
prevention and control objectives, specific control measures, and any newly
Analysis that encompasses institutional constraints, preventive early-warning mechanisms, and oversight of disciplinary enforcement. The
identified risks.
Company undertakes diverse initiatives to foster integrity culture, leveraging the foundational role of education to resolutely
advance Party conduct, clean governance, and anti-corruption efforts in depth, thereby providing robust safeguards for high-quality
Risk exposure is reviewed on a quarterly basis. Guided by the overall risk development.
appetite assessment result of being "Neutral," a prudent risk management
policy is adopted. Through quarterly dynamic risk analysis and monitoring,
Response
the effectiveness of the Business Continuity Management (BCM) plan is Strict adherence to integrity standards
continuously verified and refined.
Sinoma International strictly complies with policies and regulations including the Provisions on Clean Practices for Leaders of State-
Risk management performance is integrated into the KPIs for both senior Owned Enterprises, Regulation on Disciplinary Actions Against the Managerial Professionals of State-owned Enterprises, Code of
executives and employees. For risk-owning departments, risk management is Integrity and Self-Discipline for Members of the Communist Party of China, Rules for Supervision and Disciplinary Enforcement by
also included in their annual performance indicators. Personnel who make Discipline Inspection Commissions of the Communist Party of China, and Regulations on CPC Disciplinary Action. The Company
exceptional contributions to risk control are recognized and rewarded rigorously implements group-level systems such as the Regulations Prohibiting Business Relationships Between Group Enterprises
Accountability
through an excellence award mechanism. and Relatives or Other Specified Persons of Enterprise Leaders Engaged in Business Activities.
Fortifying Defenses Against Corruption ? All Board directors are required to proactively disclose social relationships of their
immediate family members.
Sinoma International strengthens Party conduct and clean governance, establishing and continuously improving mechanisms for
The Company ensures all Board members participate in training on compliance
punishment and corruption prevention to solidify the ideological defense against corruption.
?
and strict Party governance, achieving comprehensive coverage of integrity
awareness education.
The Company signs the Party Conduct and Clean Governance Responsibility Statement with heads ? The Company conducts timely independence assessments for its Independent
of headquarters departments and subsidiary enterprises. It also requires mid-level and above For Board members, the Company Directors.
executives, along with personnel in key positions, to sign the Leadership Integrity Self-Discipline requires strict adherence to laws,
Reinforcing Board directors involved in related-party transactions must recuse themselves
Commitment Letter, thereby reinforcing primary responsibilities and fostering a stronger culture of regulations, and the Company's
?
integrity from voting. Insider trading and improper profit transfers are strictly
integrity. Party organizations within subsidiary enterprises submit annual reports on their Party Articles of Association,
accountability prohibited.
conduct and clean governance initiatives. The Company's Discipline Inspection Commission (DIC) strengthening the ideological
conducts spot visits to grassroots party organizations to hear progress updates, strengthening daily defense line for compliance, and ? Board directors shall consciously accept supervision by state-owned asset
oversight and guidance. faithfully fulfilling duties of loyalty authorities and regulatory bodies, and respond to shareholders' concerns.
and diligence. ? Board directors must exercise strict restraint over relatives and associates to
prevent vicarious liability, thereby safeguarding the interests of the Company and all
Reporting mailboxes are maintained by discipline inspection commissions at all levels. Upon receipt shareholders.
of a report, the DIC initiates verification in accordance with the Rules for Supervision and Disciplinary
Ensuring Enforcement and the Discipline Inspection Work Manual. The case is processed through established
unimpeded workflows, with investigation results escalated level-by-level upon completion. Additionally,
reporting discipline inspection personnel at all levels are strictly prohibited from privately retaining, disclosing, Promoting integrity and upright conduct
channels or disseminating information regarding case clues, investigation progress, involved parties, or
whistleblowers in any form. Anonymous reporting is allowed by ensuring strict implementation of Sinoma International integrates Party conduct, integrity building, and anti-corruption efforts into the overarching strategy for high-
whistleblower protection mechanisms, thereby eliminating any form of retaliation. quality enterprise development, conducting rigorous inspections to ensure compliance.
Employees violating the Company's integrity requirements are subject to disciplinary actions
Anti-corruption supervision and auditing
commensurate with the severity of the offense, including warning talks, reassignment, demotion,
Clear reward
dismissal, and corresponding Party disciplinary measures. Performance-based salaries and bonuses
and punishment
for the year may be partially or fully withheld. Furthermore, the Company links compensation and In accordance with the Inspection Work Implementation Measures, Inspection Work Leading Group Work Rules, Inspection
mechanisms
?
performance evaluations to integrity conduct by mandating the inclusion of integrity self-discipline Team Work Rules, and Inspection Work Leading Group Office Work Rules, the Company's Party Committee conducts annual
in appraisal criteria. inspections encompassing integrity and anti-corruption reviews, ensuring that all affiliated enterprises are covered within a
five-year cycle.
? The Company has established a comprehensive supervision system, culminating in the Sinoma International Comprehensive
Digital The Company has embedded integrity-related regulations and standards into digital business Supervision System Implementation Plan. The Company convenes regular meetings of the Leading Group and Coordination
integrity approval processes, implementing system functionalities such as automated invoice verification and Group for Party conduct, integrity building, and anti-corruption work to deploy supervision tasks, conduct joint inspections,
development digital reimbursement recognition to provide online warnings and alerts for integrity risks. and leverage synergies.
? Annually, the Company organizes special governance campaigns, achieving 100% integrity inspection coverage across all
affiliated enterprises while mandating self-inspections and corrective actions at all levels. Party organizations within the
The Company has established an entertainment expense declaration procedure to monitor usage affiliated enterprises submit annual reports on their integrity initiatives. Concurrently, the Company's Discipline Inspection
Combating and reduce commercial bribery. In external bidding processes, the Company completes and submits Commission conducts ad hoc field visits to grassroots units to review progress.
commercial the Bidding Integrity Commitment Letter and uniformly issues the Procurement & Subcontracting
bribery Integrity Agreement Template. This template is mandated as a standard annex to both tender ? Discipline inspection commissions at all levels have established the Annual Political Supervision List, integrating efforts to
enforce discipline and combat corruption. To further leverage supervisory synergy and enhance effectiveness, the Sinoma
documents and procurement contracts across all units to strictly guard against commercial bribery.
International Comprehensive Supervision Work Implementation Measures has been formulated.
? The Company engages accounting firms annually to conduct internal control audits, placing significant emphasis on
The Company strictly adheres to the Group's Regulations on Prohibiting Business Transactions identifying material misstatements resulting from fraud and the risk of management override of controls.
Between Group Enterprises and the Relatives or Other Specific Associates of Enterprise Leaders. Mid-
Avoiding level and above executives, personnel in key positions, newly appointed leaders, and newly
conflicts of promoted managers are organized to complete and file self-inspection forms, ensuring that all
interest relevant information is thoroughly examined and fully reported. Additionally, in 2025, middle-level
managers and members of the leadership teams of affiliated enterprises conducted in-depth special
self-inspections on the issue of "exploiting enterprise resources for personal gain."
Sinoma International Integrity Culture Framework Safeguarding Employee
Learning for Integrity
Promoting Firm Original
Rights and Interests
Aspirations
establishing a robust talent development framework and prioritize employee well-being, thus fostering a collaborative environment
where both individuals and the organization grow together.
Education Shapes Activities for Advocating
Integrity Integrity
Promoting Standardized Five Integrity Promoting Strengthened
Initiatives, Five
Governance mechanism
Conduct Awareness
Promotions
Platforms for
Publicizing Integrity Integrity The Chairman of Sinoma International is fully responsible for internal governance related to employee rights protection, welfare
Promoting
Comprehensive Coverage
Promoting Family
Tradition Inheritance system enhancement, diversity initiatives, and talent pipeline development. Spearheaded by the Executive Vice President of Human
Resources, the committee integrates a focus on talent stability, employee satisfaction, and organizational efficiency across the
The Company convenes annual meetings on Party conduct and integrity building and anti-corruption efforts, ensuring full coverage entire spectrum of organizational transformation, cultural development, and business operations. Under the guidance of the
across all subsidiary enterprises. Additionally, during the monthly work conferences, the Secretary of the Discipline Inspection Chairman, the Human Resources Department, as the lead department, drives policy implementation. Each department and
Commission conducts the "Monthly Dialogue on Party Conduct and Integrity" for senior leaders and personnel in key positions. In subsidiary establish dedicated human resources working groups to ensure vertical policy penetration and horizontal coordination.
levels. The Company strengthened the development of work style, issued the Fifteen Rules on the Development of Work Style of for employee safety, this committee holds overarching responsibility for the establishment, implementation, and oversight of the
Sinoma International, and organized 2 warning education conferences with over 300 participants. occupational health, safety, and occupational disease prevention systems. The Committee's core responsibilities include:
The Company continues to strengthen the Sinoma International Integrity Culture Brand System. During the third quarter, it Organizing the formulation and approval of corporate objectives, policies, and annual plans on work safety and occupational
spearheaded a series of 10 Party conduct and discipline education initiatives across all levels of Party organizations. Subsidiary health; Establishing and improving the all-employee work safety responsibility system, continuously advancing the construction of
enterprises have fostered a clean, upright, and dynamic working environment by producing integrity-themed micro-dramas, visiting the "dual-control" system for work safety standardization, risk classification management, hidden hazard investigation and
educational bases, administering disciplinary and legal knowledge assessments, and soliciting integrity-themed creative works. governance; Ensuring work safety investments, organizing the development of safety management systems, operating procedures,
Ahead of major statutory holidays—including the New Year/Spring Festival, May Day/Dragon Boat Festival, and Mid- training programs, and emergency response plans; And supervising/inspecting work safety operations of subsidiaries, guiding
Autumn/National Day periods—the Company issues integrity alerts to all employees and management members. These alerts, accident emergency response and investigation handling. Under the Committee's centralized leadership, the Company has
disseminated through official directives, cautionary case reviews, and open letters, serve to reinforce compliance and ethical established a three-tier linkage governance structure, effectively integrating safety concepts into the entire process of strategy
standards. formulation, project execution, and operational management.
Management strategies
In 2025
Sinoma International strictly adheres to national labor laws and upholds fair recruitment practices, regarding employees as its most
valuable asset. The Company continuously refines its talent management lifecycle—including selection, development, and
placement—and optimizes career pathways and growth environments. Beyond this, the Company enhances welfare security
systems, deepens employee care across the entire career span, and strengthens safety and occupational health management.
and contractors, covering Through these efforts, the Company is committed to fostering harmonious labor relations and mutual growth between the
organization and its employees, thereby laying a solid talent foundation for sustainable development.
Strengthening rights protection Unblocking complain channels
Sinoma International strictly complies with laws and regulations including the Labor Law of the People's Republic of China, the
Labor Contract Law of the People's Republic of China, the Law of the People's Republic of China on the Protection of Minors, the ? To ensure strict adherence to Sinoma International's Code of Business Conduct and Human Rights Policy Statement, the
Law of the People's Republic of China on the Protection of Rights and Interests of Women, the Regulations on the Prohibition of Company has established clear policies and accessible procedures. A dedicated, confidential, and anonymous reporting email
Child Labor, the Special Provisions on Labor Protection for Female Employees, and the Regulations on Guaranteeing Wage channel has been implemented to provide employees with a convenient platform for voicing complaint . This channel is also
Payments to Migrant Workers. The Company has formulated the Recruitment Management Measures and Labor Contract open to customers, suppliers, and other stakeholders, who are encouraged to raise any concerns they may have.
Management Measures to standardize labor employment.
For business ethics For human rights
The Company upholds the principles of openness, fairness, and equity in recruitment and ensures lawful execution of labor
contracts to eliminate illegal employment practices. During this reporting period, the Company maintained full compliance with jubao@sinoma.com.cn hresg@sinoma.com.cn
regulations regarding child labor and forced labor, achieving a 100% labor contract signing rate. For employees undergoing
involuntary separation in accordance with legal regulations, the Company provides outplacement support and vocational training ? The Company takes a firm stance against suspected violations of laws, policies, and codes of conduct. All complain are
to enhance their employability and facilitate a smooth transition to new roles. In the event of labor arbitration or personnel subjected to professional and thorough investigations, and appropriate actions are taken based on the findings. The Company
disputes, a joint task force comprising the Human Resources Department, Legal and Compliance Department, and Trade Union strictly prohibits any form of retaliation, ensuring a safe environment for reporting. In 2025, the Company received no
intervenes to mediate the situation and safeguard the legitimate rights and interests of employees. complaints through the aforementioned channels, resulting in no disciplinary actions.
Upholding equal human rights Optimizing compensation and working hours mechanisms
Sinoma International is unwavering in its commitment to equal employment opportunities. We strictly prohibit workplace Sinoma International operates under a standard working hours system in compliance with labor regulations. The Company has
harassment and discrimination based on age, gender, nationality, ethnicity, religious belief, health status, or any other personal established comprehensive policies, including the Compensation Management Measures and the Management Policies for
distinction. By enforcing equal pay for equal work, the Company promotes fair employment practices and fosters a diverse, Employee Working Hours, Rest, Leave, and Absence, to standardize work schedules, rest periods, and vacation arrangements.
inclusive, and cohesive work environment where every employee feels a strong sense of belonging. Furthermore, a dynamic compensation adjustment mechanism is formulated, benchmarking salary levels against industry market
rates and individual job contributions.
Human rights risk management
The Company operates a comprehensive compensation structure consisting of base salary, position-based salary, and
various allowances. In terms of statutory benefits, 100% of employees are covered under the national "Five Insurances and
? The Company actively implements human rights due diligence across its operations and value chain. This process is designed One Fund" system, which includes medical, pension, work-related injury, maternity, and unemployment insurance, as well
to identify, assess, and address potential human rights impacts and risks—particularly concerning forced labor, child labor, as the housing provident fund. Additionally, the Company provides a range of supplementary benefits, including housing,
discrimination, and inequality of opportunity. By focusing on these critical areas, the Company ensures that its workforce, with transportation, and meal allowances. Furthermore, the Company sets and monitors maximum working hours,
specific attention to vulnerable groups such as women, children, and migrant workers, is protected and respected. The implements equal pay for equal work regardless of gender, provides paid annual leave, and contributes to enterprise
Company regularly conducts self-inspection and self-correction activities for human rights risks, including the issue of timely annuities for approximately 60% of its employees.
wage payment for migrant workers, across all levels of subsidiaries, and strengthens supervision of subcontractors.
Performance evaluations are conducted on a quarterly or annual basis. This comprehensive process encompasses a variety
Throughout the year, the Company has maintained a clean record regarding the aforementioned potential human rights
of assessment methods, including the alignment of organizational goals (company, department, and project team
?
risks. No incidents violating the principles of equal opportunity, diversity, or non-discrimination were reported.
objectives), individual objective reviews, multi-dimensional appraisals, and ongoing real-time communication. Following the
release of the results, department heads engage in one-on-one performance interviews with employees. These sessions are
designed to gain a deep understanding of individual contributions, solicit feedback, and provide targeted guidance for
Promoting diversity and inclusion improvement, career development, and training needs.
? As our global operations continue to expand, the Company and its subsidiaries have adapted our HR strategies to the specific The Company implements a restricted stock incentive plan to align the interests of directors, senior executives, core
realities of our overseas markets—where international business represents a significant share. We have established localized managers, and key business and technical specialists. Comprehensive performance metrics are established at the corporate,
human resources management regulations, along with tailored systems for incentives, performance appraisal, and subsidiary, and individual levels to govern this program.
compensation for our overseas workforce. By actively recruiting top talent regardless of nationality, race, educational
background, or professional expertise, we are building a truly international and diverse team. Furthermore, mandatory policy Complementing this, a dual-track compensation growth mechanism—linking both position and rank—is utilized. Regular
training programs covering diversity, anti-discrimination, and anti-harassment are actively conducted to foster a respectful assessments of employee income are conducted, confirming that this year, wages for all employees across the entire
work environment. To reinforce ESG policy awareness, the Company conducted outreach and training sessions across its organization exceeded the local social average, thereby adequately meeting their living requirements.
major subsidiaries, with a specific focus on the Employee Code of Conduct, especially its commitments regarding inclusion and
diversity. The Company has established a compensation clawback policy to ensure accountability. For Party members who cause asset
The senior management team is accountable for advancing diversity initiatives and has explicitly prioritized "local value chain losses due to disciplinary violations, the performance-based portion of their annual salary will be reduced in accordance
with the Implementation Rules for Salary Reduction of Responsible Persons in Group Member Enterprises Subject to Party
?
extension" as a strategic objective. Guided by the vision of building a truly international and diverse workforce, the Company
and Administrative Disciplinary Actions. Furthermore, for current, resigned, or retired managerial personnel who violate
remains committed to enhancing employee localization rates. The Company is committed to aggressive localization of its
national laws and regulations, or who cause asset losses through failure to perform or improper performance of their duties,
overseas workforce, resulting in a steady increase in the employment of local nationals. We advocate for equal employment
corresponding deductions will be applied to their current performance-based annual salary. Based on the findings of
opportunities and have established labor and compensation management systems that strictly comply with local laws and
Party/administrative disciplinary actions and asset loss liability assessments, the Company will also claw back part or all of
regulations. By ensuring equal pay and benefits for all employees, regardless of nationality, we are fostering a diverse, inclusive, any previously paid performance bonuses and medium-to-long-term incentive earnings.
and cohesive corporate culture that strengthens mutual trust and a sense of belonging.
Promoting employee development
? Deepening university-enterprise cooperation: The Company has established strategic collaborations
Sinoma International is fully committed to employee growth, guided by the strategic vision of "optimizing talent management, with domestic and international universities, including Wuhan University of Technology and Shandong
serving individual development needs, and empowering corporate strategy." Through the strategic levers of "optimizing talent University. Through these partnerships, we conduct joint degree programs, internship recruitment, social
mechanisms, enhancing the development environment, and stimulating innovation," the Company has established a holistic practice initiatives, and targeted recruitment events. In 2025, the Company established new strategic
lifecycle management mechanism encompassing talent selection, development, and placement. This framework is anchored by
partnerships with the University of Jinan and Nanjing Tech University.
three pillars: a dual-track career path (management & professional); A job competency system; a rank promotion and certification
system. Systematically advancing the cultivation of five key talent pools—financial, technological, international, operational, and
high-potential young leaders—the Company focuses on enhancing workforce capabilities and smoothing career pathways. This ? Professional certification support: The Company encourages employees to obtain industry-recognized
ensures synergistic growth between individual employees and the organization. professional qualifications by reimbursing examination fees for certifications that are directly relevant to
employees' current roles. Upon successful registration of the certificate with the Company, employees can
To further standardize the employee grading system and expand career development pathways, the Company has established a
dynamic talent management and mobility mechanism. This mechanism ensures the right talent is matched to the right role and receive a one-time bonus and a monthly practice allowance.
allows for flexible upward and downward movement. In accordance with these guidelines, subsidiaries at all levels have formulated
their respective Rank Management Measures. Based on the Company's management positioning and functional categories, Local talent development: The Company embraces a "Localization" strategy, integrating local resources
positions are divided into two distinct tracks: Management and Professional. Clear qualification requirements and promotion
?
and talent into its core operations. We focus on cultivating and recruiting local professionals, including high-
criteria have been established for each grade level.
caliber experts in business, legal, and tax sectors. By actively hiring fresh graduates from local universities,
we inject new vitality into our teams while providing robust human capital support for long-term local
Talent development system
development and significantly boosting host-country employment.
? Talent pipeline development: The Company centrally coordinates campus recruitment across the entire
Development of sci-tech talent: The Company has established a dedicated talent pool for scientific and
organization. In 2025, we successfully recruited 375 new graduates. The Company also actively participates in
?
the Group-organized campus recruitment fairs, assisting subsidiaries in streamlining the talent acquisition technological backbone personnel and highly skilled professionals. In 2025, we formally initiated the
process. The company launched the first unified campus recruitment campaign, anchored by the "SINOMA" formulation of the "15th Five-Year Plan" for human resources management, explicitly designating sci-tech
brand. This initiative successfully enhanced both brand equity and talent quality. talent and international talent development as key specialized initiatives. By the end of 2025, the Company
had cumulatively nominated: 40 leading sci-tech talents; 47 young sci-tech talents. Additionally, 9
? Diversified training system: The Company provides targeted individuals were selected for the Group's key research talent pool, and 24 were awarded the Special
training programs for all employees, including comprehensive new Government Allowance from the State Council. Sci-tech talents accounted for 34% of the beneficiaries of
hire onboarding and a dual-mentor system for frontline roles. This medium-to-long-term incentive programs, covering 851 instances.
system pairs employees with both on-site and headquarters
mentors, fully leveraging the knowledge transfer capabilities of
experienced professionals. New hires are matched with dedicated
mentors on either a "one-to-one" or "one-to-two" basis. The
Company recognizes and rewards outstanding performance among
new employees as well as successful mentor-mentee pairs. To further enhance the political literacy and job
performance of young managers, the Company has conducted six sessions of the Young and Middle-aged
Managers Training Program by the end of 2025. The program covered 258 managers across all levels of the
organization, effectively building a robust talent pool to ensure strategic continuity.
Training categories: Strategic, Management, Professional, General (including communication skills,
computer applications, data processing, etc.), and Others (tailored to specific job requirements)
Training approaches: Internal Training, External Training, Mentorship Programs (led by business specialists
or mid-to-senior manager) Internal Job Rotation, Self-Directed Learning Case: Cultivating digital-intelligent practical talent to advance digital transformation
Specialized training programs: Localization Development Forum, Science and Technology Forum, Digital
To further advance the Group's digital transformation strategy, the Company hosted a one-week intensive training session on
Training, English Salon, Cadre and Staff English Training, etc.
"Process Management, Data Governance, and Digital Governance Systems" in Beijing and Nanjing in July 2025. The curriculum
covered core modules including process management, data governance, low-code platforms, and digital supervision, utilizing an
? Internal job rotation and exchange: The Company strategically manages talent allocation, prioritizing integrated delivery model featuring "theory + hands-on practice + workshops." A total of 117 members from special task forces and
internal transfers to address staffing shortages in key departments. To support career growth, employees consultant teams across 14 member units participated. All trainees successfully completed the low-code scenario design and
interested in exploring different fields may submit applications to the Human Resources Department. The practical assessments, effectively bridging the gap between knowledge and applied skills.
Company will assess these requests based on business needs and initiate the internal recruitment process to
facilitate new career pathways. Furthermore, structured job rotation programs are organized to provide This training session achieved four key achievements: unified strategic understanding of digital transformation; enhanced
employees with a holistic view of the Company's operations. This initiative is designed to enhance cross- capabilities in process and data governance; established "Project Blueprints" with clear accountability; strengthened cross-
functional understanding and strengthen employees' capabilities in solving complex, real-world business departmental synergy. This training program has laid a solid talent foundation for "Digital Sinoma International" and marks the
challenges. Company's entry into a new era of comprehensive digital governance implementation.
Sustained focus on physical and mental well-being
Case: Focusing on sci-tech innovation to jointly deliberate talent-driven enterprise strategies
Sinoma International is deeply committed to employee well-being, consistently upholding a human-centric approach. The
In September 2025, Sinoma International convened a sci-tech talent symposium. Centered on the theme "Pooling Sci-Tech
Company organizes free annual health check-ups and invites professional doctors to conduct on-site medical consultations based
Strength, Igniting Innovation Momentum, Empowering High-Quality Development," the event gathered over 70 participants—
on needs. Additionally, psychological counseling services are provided to support employees' mental health. To ensure work-life
including rehired experts, key sci-tech personnel, young talents, and management representatives—to jointly discuss talent-driven
balance and safety, the Company offers flexible working arrangements. Special employees are entitled to work-from-home benefits,
enterprise strategies in the context of digital transformation.
and in the event of unexpected conditions such as heavy fog, staff can apply for remote work to reduce risks and ensure personal
Through research briefings, group workshops, and insights from external think tanks, the symposium systematically reviewed the safety. In line with legal requirements, the Company grants paid parental leave to eligible couples. Before the child turns three, both
current landscape and challenges regarding talent structure, incentive mechanisms, and career development systems. In-depth parents are entitled to ten days of leave annually. For families with multiple children, these leave days are cumulative. Sinoma
discussions focused on "Top-Level Design for Sci-Tech Innovation," "Recruitment and Cultivation of High-Level Talent" and "Young (Suzhou) has established a dedicated free online medical consultation channel for employees, fostering a strong sense of security
Talent Echelon Development." These deliberations provided critical decision-making insights for refining the Company's sci-tech and happiness.
talent management system and stimulating organization-wide innovation during its digital transformation journey.
The Company has also equipped the office building with a gym and professional sports facilities. We actively organize cultural and
sports activities, including basketball, badminton, table tennis tournaments, and fun games, to enrich employees' leisure time and
promote both physical and mental health.
Advocating employee care
Care for female employees
Sinoma International is committed to enhancing employee well-being through comprehensive welfare initiatives. The Company has
established policies such as the Employee Leave Management Measures and the Young Talent Apartment and Subsidy Scheme, Sinoma International is deeply committed to the care and development of its female workforce. We are attentive to the unique
deepening our care for employees throughout their careers. These measures are designed to strengthen employee engagement challenges and specific needs women face in the workplace, actively launching warm initiatives to create a supportive and pleasant
and foster a strong sense of belonging. working environment for all women employees.
Assistance for Urgent and Difficult Needs Featured theme activities
In celebration of International Women's Day, trade unions at all levels organized a series of events. These vibrant
themed activities brought together female employees, including expatriates, from the headquarters and subsidiaries,
Upholding an "employee-centric" philosophy, the Company has refined its humanistic care initiatives. We have established a
fostering a stronger sense of team cohesion.
?
registry for "key milestones" to ensure timely support, hosted honorary retirement ceremonies, and organized care programs
for senior retirees and families of expatriate staff. In 2025, these targeted care initiatives—ranging from birthdays and weddings
to illness recovery and retirement—reached over 620 individuals. Maternal and infant care support
? Sinoma Overseas remains committed to addressing the needs of expatriate staff and their families through diverse initiatives. Recognizing the needs of new mothers, the Company provides special care and support. Female employees are
This includes visiting families during the Spring Festival and providing special assistance funds to local employees, ensuring entitled to one hour of breastfeeding leave per day for a period of twelve months following the end of their maternity
robust rear-support for overseas operations. leave. Some subsidiaries' trade unions have also established dedicated baby care rooms for female employees.
? The Company maintains a tradition of holiday greetings during major festivals such as the Spring Festival, Dragon Boat
Festival, and Mid-Autumn Festival, alongside providing birthday cake vouchers.
Case: Cross-border Women's Day celebration: uniting forces for shared progress
? We promptly visit employees during hospitalization and conduct irregular visits to retirees, actively resolving urgent issues in
their daily lives. In June 2025, Sinoma (Suzhou) extended care to a young employee diagnosed with cancer and launched a On the eve of International Women's Day, Sinoma International hosted a synchronized celebration themed "Her Story, Her Wish."
company-wide fundraising initiative to give support. The event united the Beijing headquarters with seven overseas branches—including Egypt, Nigeria, and France—showcasing the
cohesion and humanistic care of the Company's global team. The Beijing headquarters kicked off the festivities with floral
? Special assistance was provided to employees with unique needs or financial hardships through the Group's Love & Charity arrangement workshops, while the international branches hosted culturally immersive activities such as hair-braiding, handicraft
Fund. In 2025, CDI provided targeted assistance to an employee whose child suffered from a serious illness. Beyond regular making, and traditional hand painting. On-site wish draws allowed employees to share their personalized aspirations, conveying the
care and inquiries, the Company presented condolence funds totaling 4,800 yuan during the Spring Festival and other Company's meticulous care through tangible actions and highlighting the inclusiveness of its diverse workforce. The Company
occasions. highly commended the pivotal role played by female employees in the Company's international development. He emphasized the
commitment to continuously improving development platforms, supporting female staff in achieving both personal growth and
? Focusing on the needs of frontline workers, the Company conducted specialized care initiatives. In 2025, we carried out three corporate advancement.
"Summer Cooling & Winter Warming" campaigns at project sites, distributing heat-relief and cold-protection supplies to
demonstrate our caring culture and enhance employee well-being and belonging.
? The Company continues to refine its support mechanisms for overseas personnel by formulating the Implementation Measures
for Overseas Employee Assistance, which has been fully piloted in the Nigeria region. In 2025, through the Sinoma (Suzhou)
Special Assistance Fund for Overseas Employees (Nigeria), the Company provided aid totaling 2,050,000 Naira (approximately International Women's Day Celebration Series
CNY 9,762) to eight Nigerian employees.
Fulfilling safety commitments Building safety culture
Sinoma International adheres to the core philosophy of "People-Oriented, Safe Development, and Green Development." In line with Sinoma International places great emphasis on safety education and training, specifically striving to enhance the professional
the work policy of "Safety First, Environmental Priority, Prevention-Oriented, Comprehensive Management, Full Staff Participation, competence of full-time HSE management personnel. Guided by the principle of "three-level HSE education," affiliated enterprises
and Continuous Improvement," the Company is committed to establishing a safety management framework characterized by and project departments have conducted a variety of training activities. These include site-entry HSE inductions, specialized
enterprise-wide oversight, whole-process control, and full staff involvement. This strategic approach fosters a secure and stable training, experiential safety training, and accident case studies. Cumulatively, 33,836 training sessions have been carried out,
environment, driving the Company's high-quality development. reaching 607,143 participants. The Company has achieved 100% training coverage for both in-house employees and contractor
staff. The Company attaches great importance to the organization of the "Work Safety Month" campaign. Company-wide, we are
Implementing safety management
committed to constantly introducing new elements to these activities to enhance safety. Through diverse initiatives such as safety
lectures delivered by "top executives," knowledge competitions, safety culture promotion, and accident case analyses, a rich and
robust safety culture atmosphere has been fostered. Various work safety cultural activities are organized to comprehensively
In response to the national "Healthy China" initiative, Sinoma International strictly adheres to laws and regulations such as the
elevate employees' safety awareness and emergency response capabilities.
Occupational Disease Prevention and Control Law of the People's Republic of China and the Regulations on Work-Related Injury
Insurance. The Company has continuously improved its HSE standards, establishing a comprehensive system that includes the HSE
Management Manual and the HSE Management Compendium. Leveraging efficient organizational synergy and a pragmatic, results- Case: Strengthening the foundation and building defenses, intelligent
oriented approach, Sinoma International has steadily advanced safety management and successfully achieved its annual safety management safeguards safety
targets, maintaining a stable and secure operational environment.
In May 2025, Sinoma International hosted the kick-off meeting for the "Work Safety Month" campaign in Beijing. The event officially
launched a series of initiatives themed "Everyone Speaks Safety, Everyone Can Respond to Emergencies—Identifying Hidden
Hazards in Our Surroundings." The meeting brought together over 600 participants, representing personnel at all levels across the
Company.
The Company revised and released the Sinoma International Assessment Management
Measures for Work Safety, Energy Conservation, and Ecological Environmental Protection. The meeting defined four core tasks: First, strengthening responsibility implementation and consolidating the safety foundation;
Second, focusing on key processes and implementing precise risk control; Third, deepening the "Work Safety Long March" special
The policy links critical safety issues and objectives to executive compensation by clearly
campaign; Fourth, accelerating the construction and application of an intelligent safety management system. The meeting formally
defining veto indicators and key KPIs, which directly determine the outcomes of annual released the implementation plan. Participants collectively signed a commitment banner, achieving comprehensive mobilization
executive evaluations and remuneration. and deployment. This has laid a solid safety foundation for the Company's high-quality development.
Sinoma International incorporates subcontractor and labor team safety management into its overall safety framework, clearly
stipulating the respective safety and environmental responsibilities, obligations, and rights of both parties. The Company
establishes safety and environmental access requirements for equipment, facilities, and construction tools, provides relevant safety
training to enhance subcontractors' awareness, and supervises the establishment of their safety management systems, ensuring
they understand and comply with the Company's HSE policies and requirements. The Company strictly prohibits the use of
unqualified subcontractors. It rigorously monitors job sites to promptly halt the "Three Violations": violations of operating
procedures, unauthorized command, and breaches of labor discipline. The Company also eliminates the practices of "management
by subcontracting" and "management by penalty."
Site of the "Work Safety Month" kick–off meeting
Impact, Risk, and Opportunity Management Metrics and targets
Sinoma International embraces the management philosophy of "using targets to guide management and metrics to drive results."
In this framework, the Company has established a robust system of clear quantitative objectives and monitoring indicators
Regarding employee employment and rights，Sinoma International places high importance on issues and specifically dedicated to safeguarding employee rights.
needs within the workplace environment, comprehensively identifying employee demands through
Regarding employee employment and rights
democratic management approaches. Subsidiaries at all levels strictly comply with laws and regulations such
as the Trade Union Law of the People's Republic of China. The Company has improved its democratic
management system, with the Workers' Congress serving as the fundamental form. To facilitate
communication, a multi-channel platform has been established, incorporating online mailboxes, office The Company has established dynamic salary adjustment rules based on job contribution and industry market benchmarks, linking
hotlines, digital proposal modules, Corporate WeChat, the Chairman's Communication Day, the Workers' employee compensation to KPIs (actual contribution), job performance, competency, and work attitude, with floating performance
Congress, and trade union feedback mechanisms. This system ensures a closed-loop management process for components accounting for 60% for senior management, approximately 40-50% for middle management, and below 30% for
employee demands, effectively safeguarding employees' rights to information, participation, expression, and general staff.
supervision. To ensure the equitable treatment of employee concerns, affiliated enterprises actively solicit
The Company is deepening the construction of its medium- to long-term incentive mechanisms. We are effectively leveraging a
feedback from female staff through various channels, such as symposium for female employees and the
suite of seven incentive instruments, including excess profit sharing, virtual equity, and employee stock ownership, with a particular
establishment of Women Workers' Committee. These measures effectively safeguard women's rights to equal
focus on bolstering sectors such as technological innovation, high-end equipment, and digital intelligence. These initiatives cover
employment.
Regarding occupational health, Sinoma International places great emphasis on occupational health. The
Company systematically identifies and assesses risks related to employee life and health, working
environments, and emergency management through established processes. The Company conducts regular
occupational health and safety risk assessments, prioritizes critical risks, and formulates comprehensive
been granted restricted stock incentives 2.15% of the Company's total equity
emergency response plans. We proactively fulfill our primary responsibility for occupational disease prevention
and control. To ensure employee well-being, we also organize routine health check-ups, educational seminars,
and mental health initiatives. The Company has established investigation procedures for work-related injuries, The Company continues to strengthen democratic management, with 1,172
employee representatives and 87.76% union membership rate by the end of Objectives
health issues, critical illnesses, and accidents, aiming to prevent all occupational health hazards before they
arise. 2025. This year, the Company conducted a comprehensive employee
satisfaction survey. Utilizing online questionnaires, we collected feedback The Company aims to maintain an
employee satisfaction rate above 97%
from 58% of the workforce regarding work experience, intrinsic motivation,
In the realm of work safety, Sinoma International strictly adheres to all relevant laws and regulations. The happiness levels, and job pressure. The results show that satisfaction rates
Company exercises rigorous control over the procurement of hazardous chemicals and harmful substances, across various demographics—including gender, ethnicity, employee in the long term.
establishing dedicated storage areas equipped with appropriate ventilation. These areas are specifically category, and age—consistently approach 98%.
designed to meet special requirements for fire prevention, explosion protection, and corrosion resistance. To
Regarding employee occupational health and production safety
ensure on-site safety, prominent warning signs indicating the nature of hazards are displayed, and essential
protective equipment—such as emergency leak containment devices—is installed. Employees are provided
with necessary personal protective equipment, supplemented by clear safety reminders and operational
guidelines throughout the workplace. Furthermore, regular equipment inspections are conducted to ensure all The Company has established a comprehensive set of safety management objectives to rigorously implement and achieve effective
systems remain in optimal working condition, effectively minimizing the risk of accidents. work safety outcomes.
Regarding employee development, Sinoma International is committed to removing barriers to career
advancement and skill enhancement. The Company proactively identifies professional growth opportunities,
? Zero fatalities due to production safety ? Zero traffic and fire accidents occurring
offering tailored solutions including leadership and skills training, internal mobility options, and support for responsibility incidents during production processes
professional certifications. This empowers employees to navigate challenges and seize opportunities
Zero significant emergencies Zero new occupational disease cases
presented by the Company's drive towards digital, smart, and green operations.
? ?
Furthermore, the Company set a specific target of maintaining a severe injury rate no higher
than 0.3‰ per 1,000 employees.
In 2025, the Company successfully achieved all of the above objectives
The Company continuously strengthens resource support,
ensuring the effective implementation of work safety measures
Conducted safety and environmental inspections across 15 affiliated enterprises, covering 43 projects and factories,
achieving 100% coverage of directly-managed enterprises
Cumulative investment in safety and
Organized involving
health reached emergency drills participants in total
with a rectification
Achieved Identified completion rate of
safe man-hours (including
subcontractors) in 2025
potential hazards
nearly 100%
Conducted
work safety responsibility
environmental inspections
agreements across all levels
Note: The total number of enterprises at all levels used to calculate the ISO 45001 certification rate refers to enterprises engaged in engineering
construction, equipment manufacturing, production operations, and maintenance that are applicable for ISO 45001 certification. In 2025, the figure for
ISO 45001-certified companies excludes three affiliated enterprises that were dissolved during the reporting period.
In terms of employee development
In 2025, the Company recruited
turnover rate stood at 4.88%, marking a decrease of 14.54% compared to the previous year.
In 2025, the company's employees cumulatively completed 1,462,621 hours of training, translating to an average
of 103 hours per employee, fully optimizing the talent management pipeline—"Selection, Development, Utilization,
and Retention."
Note: For more key performance indicators related to employees, please refer to the "Social data" section in the ESG Key Performance of this report.
The number of training hours per employee is calculated by dividing the total cumulative training hours by the total number of employees who
received training.
Green and Clean
Production
We place high priority on green development. We fully implement the principles of "understanding the new development stage,
applying the new development philosophy, and fostering the new development pattern," promoting the green and low-carbon
Pursuing Sustainability
transformation of our energy structure and the coordinated improvement of ecological and environmental quality. Together, these
efforts lay a solid foundation for our high-quality development. .
Strengthening environmental management
through Green and Eco-Friendly We strictly comply with national laws and regulations related to ecological and environmental protection. We have implemented
Development
robust environmental management systems and mechanisms, conducted environmental risk control and environmental protection
inspections, and rigorously enforced environmental policies across all our business segments.
Establishment of organizational structure
At the governance level, the Board of Directors is responsible for establishing and improving the environmental, social and
governance (ESG) management system. The Strategy, Investment and ESG Committee is responsible for assessing the
Green and Clean Production
environmental management performance, as well as related risks and opportunities. It formulates and reviews the environmental
management vision, objectives, and strategies, and reports significant matters to the Board. At the management and execution
level, we have established a Leadership Group for Ecology and Environmental Protection, co-chaired by the Chairman and the
President. Composed of members of the senior leadership team, the Leadership Group provides overall direction for the ecological
progress and oversees the implementation of environmental protection, energy conservation, and emission reduction efforts.
Circular Economy Integration Improving the institutional system
We strictly comply with national environmental protection laws and regulations including the Environmental Protection Law of the
People's Republic of China. We have formulated a series of environmental protection policies, covering the entire process of
production and operation, engineering construction, contracting and subcontracting. These policies include Responsibility System
for Ecological and Environmental Protection, Management System for Environmental Impact Assessment of Construction Projects,
Measures for Clean Production, Energy Conservation and Emission Reduction, and Special Rules for Ecological and Environmental
Protection of Overseas Entities (Projects).
We rigorously implement the ISO 14001 environmental standard, striving to establish a green and sustainable environmental
management system that effectively controls environmental risks.
As of the end of 2025
ISO14001:2005 Environmental Management GB/T2331-2020 / ISO50001:2018 / RB/T119-
System Certification, accounting for 73% of the total 2015 Energy Management System
Note: The total number of entities used to calculate the certification rates for ISO 14001 and ISO 50001 refers to subsidiaries engaged in engineering
construction, equipment manufacturing, and green energy and environmental protection. In 2025, the figure for ISO 14001-certified companies
excludes three affiliated enterprises that were dissolved during the reporting period.
Strengthening management mechanisms Fostering environmental awareness
We rigorously implement environmental information disclosure requirements. All production-oriented entities have developed self- We actively promote the concept of green office. The headquarters and all subsidiaries vigorously promote video conferences and
monitoring plans and deployed monitoring systems for real-time supervision, ensuring effective management and control of paperless meetings, achieving electronic office operations through the OA system. The collaborative office platform has been
pollutant emissions. Through sound environmental management systems, stringent monitoring measures, and comprehensive comprehensively upgraded to enable full-process online operations, including electronic signatures and online archiving, further
emergency response plans, we prevent and address potential environmental incidents. reducing office paper demand. In terms of consumables management, we give priority to selecting energy-efficient printers and
copiers (Tier 1 energy efficiency), reduce office paper usage, and prioritize the purchase of environmentally friendly paper and
ballpoint pens with replaceable refills. In addition, we extend the service life of printing and copying equipment through repairing
In 2025 and reusing, and improve efficiency by adopting full LED lighting and implementing energy efficiency access requirements for
energy-consuming equipment. Meanwhile, CBMI Construction extends the concept of green office to project sites by incorporating
digital and low-carbon office requirements into overseas project management standards. Through remote collaboration systems, it
reduces international business travel and associated carbon emissions, achieving unified green office standards between the
headquarters and overseas projects.
We actively promote green initiatives through activities such as tree planting, factory greening, and thematic forums. These efforts
We conducted invested CNY foster a shared commitment to ecological protection among our employees, across the industry, and within society. In 2025,
environmental inspections across all levels in environmental protection leveraging platforms such as the National Energy Conservation Week and Low-Carbon Day, we promoted environmental knowledge,
policies, and regulations through corporate WeChat groups, electronic screens, brochures, and environmental slogans. We also
organized environmental awareness training sessions and online quizzes during National Energy Conservation Week and Low-
Carbon Day to enhance employees' environmental literacy.
In 2025, the Company successfully held the first safety and environmental protection training program for leading executives across
all levels of its subsidiaries, establishing the group' s first in-house safety and environmental training brand.
We have strengthened environmental protection accountability at every level. In 2025, a total of 33,223 environmental protection
responsibility agreements were signed by employees across all subsidiaries. While completing rectification tasks assigned by central
environmental inspections on schedule, we also implemented a top-down internal environmental inspection mechanism, achieving Environmental protection training and education programs
full coverage of all subsidiaries. A total of 2,207 environmental inspections (including external government inspections) were
conducted across all levels in 2025, identifying 5,422 potential risks, all of which were rectified, achieving a 100 percent
rectification rate.
We also integrate environmental management mechanisms into our commercial cooperation
Waste "Zero-Waste Compliant disposal of hazardous waste VOCs treatment facilities
sorting Factory" initiatives and emergency management training and equipment
? Logistics and transportation
In accordance with the Measures for the Acceptance Management of Safety Materials, we require suppliers
to provide logistics services that comply with applicable environmental laws and regulations and to take
necessary measures to prevent environmental pollution. Transport operators are required to strictly
prevent spillage, leakage, and fire hazards, ensure safety, and prohibit oil leakage.
Case: Inside our smart factory: utilizing resources efficiently to build a better world
In September 2025, the Kenya Factory of Sinoma Roofing Systems,
Engineering general contracting
operated by CBMI Construction, held an open day event under the
?
Subcontractors are integrated into our unified management system. Subcontracts explicitly define the theme "Inside Our Smart Factory: Utilizing Resources Wisely to
safety and environmental responsibilities, obligations, and rights of both parties, and establish safety and Build a Better World." As one of the overseas venues of the 6th
environmental access requirements for equipment, machinery, and facilities. We provide environmental "Resource Efficiency Day" global series of events organized by
training to subcontractors, helping them understand our environmental management policies and CNBM, the event centered on the core theme of "Driving Change
requirements and adopt eco-friendly practices in their work.
through Innovation and Green Solutions." It showcased our
innovative practices in smart manufacturing, environmental
protection, and resource efficiency, while strengthening industry-
Investment and M&A
academia-research collaboration with local universities. Through
?
We implement the Management System for Safety and Environmental Due Diligence of Mergers and these concrete actions, the event embodied the corporate mission
Acquisitions. Due diligence checklist guidelines have been developed covering four areas: business, of "Creating a Better World with Materials" and injected green
finance, legal, and safety and environmental protection. Third parties are engaged to conduct safety and momentum into China-Africa cooperation under the Belt and Road The Open Day
environmental due diligence on potential investment targets. Initiative.
Advancing green production ? We strictly comply with the Law of the People's Republic of China on the Prevention and Control of
Atmospheric Pollution, implement national standards such as the Integrated Emission Standards
of Air Pollutants and the Ambient Air Quality Standard to rigorously control air pollutant emissions.
We strictly comply with the Environmental Protection Law of the People's Republic of China and other applicable laws, regulations,
and policies on energy conservation and emission reduction. We actively benchmark our environmental practices against world- ? We prioritize materials that do not generate air pollutants and low-emission equipment to reduce
class enterprises, promoting clean production and green construction. Specifically, we identify, evaluate, and control pollution at the source.
environmental factors related to our production operations, project construction, and management activities. We also fulfill our
We formulate sound construction plans and implement measures such as enclosed construction
primary responsibility for environmental protection, energy conservation and emission reduction. To prevent and mitigate the Air pollution
?
and dust control netting to minimize dust and exhaust emissions.
adverse environmental impacts of our operations, we promote the intensive and efficient use of resources, achieve compliance with management
emission standards, and continuously improve our production environment, ultimately building an environment-friendly ? We take effective treatment measures for generated exhaust gases, including installing waste gas
treatment equipment and innovatively applying integrated drilling rigs, water bag blasting
enterprise. Hefei Zhongdu Machinery Co., Ltd., a subsidiary of Sinoma Equipment, was included in the list of provincial "Green
technology, fog cannon wet dust suppression, and intelligent sprinkler systems on both sides of
Factories," becoming a demonstration benchmark for the green transformation of the equipment manufacturing industry.
roads within the factory.
Reducing pollutant emissions ? We strengthen the management of transport vehicles to ensure they meet emission standards, and
take corresponding measures such as covering, cleaning, and sprinkling water during
transportation to reduce dust.
During project construction, we strictly comply with laws and regulations such as the Land Administration Law of the People's
We store cement and other fine-particle building materials that are prone to fugitive dust in
Republic of China, the Water and Soil Conservation Law of the People's Republic of China, and the Regulations on Environmental ?
enclosed spaces, and adopt effective measures to prevent dust during use. Excavated soil at
Protection Management for Construction Projects. We have also formulated and implemented on-site environmental protection
construction sites is stockpiled at designated areas and covered to control dust.
systems, ensuring rigorous compliance with the "Six 100 Percent" management requirements.
? Classified collection and orderly disposal: We classify and store hazardous waste according to
its characteristics, and conduct fixed-point recycling of leftover materials. We stack solid waste in
The "Six 100 Percent" Requirements separate areas for metal, wood, soil, and rubber, and handle raw soil and sandstone separately.
? Standardized storage and compliant transportation: We set up waste storage facilities and
sites in accordance with regulations, and clearly mark the type and danger of waste in storage
Waste areas. We ensure waste transportation complies with relevant laws and regulations, strictly
? 100% enclosure of construction ? 100% coverage of bare soil management implement the approval system for hazardous waste transfer plans and the transfer manifest
sites system, and select qualified transportation companies for waste transportation.
? 100% wet operation at
? 100% coverage of stacked materials demolition sites ? Targeted and compliant treatment and disposal: According to the characteristics of waste and
regulatory requirements, we entrust qualified professional companies for regular disposal, and
select appropriate treatment methods such as incineration, landfilling, and recycling. In 2025, the
? ?
and exiting the site spoil vehicles
disposal rate of self-generated hazardous waste reached 100%.
? Strict record-keeping and full-process supervision: We establish a waste disposal record and
reporting system, including information such as waste generation volume and treatment methods,
and regularly supervise and inspect the compliance of waste disposal to ensure it meets laws,
regulations and standards.
? We strictly implement national standards such as the Standards for Water Quality of Sewage
Discharged into Urban Sewers and the Integrated Wastewater Discharge Standard.
We strengthen the monitoring and management of wastewater discharge, and entrust third-party
Sewage ?
agencies to conduct regular water quality monitoring to ensure up-to-standard wastewater
discharge discharge. We also adopt a quality-based drainage method to classify and treat wastewater of
management different properties, promoting the re-use of water resources.
? Construction sewage from projects is discharged in accordance with local and client requirements.
Domestic sewage is discharged into municipal pipe networks or stored in sewage pools and septic
tanks, which are then regularly pumped and treated by professional companies.
? For temporary camps constructed at overseas project sites, we install wastewater collection tanks,
sedimentation tanks, and septic tanks. We also engage qualified local wastewater treatment
companies for centralized collection and treatment, ensuring compliance with local discharge
standards.
During the manufacturing process and mining operations, we adhere to the principles of clean production. In 2025, the Longquan We have also increased our investment in the R&D of key technologies for energy conservation and emission reduction, including
Industrial Park of CDI passed the clean production certification by the Economic Development Zone. Through active high-efficiency raw material pretreatment, advanced energy-saving production processes, and intelligent energy management
implementation of the clean production recommendations put forward by the expert review panel, the Park has enhanced its green systems. These efforts aim to further improve energy efficiency and reduce carbon emissions from engineering construction and
production capabilities. manufacturing activities. Meanwhile, the Project Department has strengthened data collection on energy consumption and carbon
emissions, enhanced the management of emissions from operational activities, and improved the quality of energy data reporting.
Linyi Guojian Environmental Technology Co., Ltd., Zhongtian Gongkang Environmental Technology Co., Ltd., and Huainan CNBM
Tengfeng Environmental Technology Co., Ltd., all subsidiaries of Sinoma International Environment Engineering, as well as Henan
Sinoma Environmental Protection Co., Ltd. and Tangshan Sinoma Heavy Machinery Co., Ltd., both subsidiaries of CNBM Equipment Examples of energy-saving technical upgrades
Group, have been listed as key pollutant discharge units by their respective local ecological and environmental authorities.
The primary pollutants discharged by these key units include particulate matter, nitrogen oxides, carbon monoxide, sulfur dioxide,
Improvements of solar dryers and heat pump drying technologies Enhancing drying efficiency of biomass feedstock
volatile organic compounds (VOCs), hydrogen sulfide, ammonia, non-methane hydrocarbons (NMHC), and hydrogen chloride.
These emissions are treated using technologies such as denitrification systems for air emissions and VOCs recovery and treatment
Development of high-efficiency crushers and screening equipment Optimizing raw material processing
facilities. In accordance with environmental impact assessment approvals, the key pollutant discharge units have installed
discharge outlets in designated areas within their facilities and conduct regular emission monitoring. A total of five exhaust outlets
have been installed, located in the incineration workshop, the emergency exhaust treatment system, and the kiln tail. They also Development of new eco-friendly additives Reducing carbon footprint of additives
proactively cooperate with the supervision of relevant authorities. They have developed environmental self-monitoring plans in
accordance with legal requirements, including the Measures for Self-Monitoring and Information Disclosure by Key State-Monitored Upgrading from plasma cutting to laser cutting Improved operational efficiency
Enterprises and the Technical Guidelines for Self-Monitoring by Pollutant Discharge Units. In addition, they have deployed
monitoring systems for real-time supervision and prepared emergency response plans for environmental incidents, which have Vanadium Redox Flow Battery Energy Storage System High safety and long cycle life
been filed with the relevant local government authorities as required. Pollutant discharge data for these key units are based on
disclosures made by the local ecological and environmental authorities. The websites for pollutant discharge information
disclosure are as follows: Case: YAMAMA Project in Saudi Arabia adopts solar PV power,
delivering both environmental and economic benefits
In the relocation and upgrade project of the 10,000-tonne cement
production line at YAMAMA in Saudi Arabia, we deployed a 1 MW
? Linyi Guojian Environmental Technology Co., Ltd. distributed photovoltaic (PV) system at the construction site,
powering construction activities with green electricity. During the
http://221.214.62.226:8090/EnvironmentDisclosure/enterpriseRoster/openEnterpriseDetails?comDetailFrom=0&id=9
construction phase, the system is expected to reduce carbon
dioxide emissions by 5,100 tons and save approximately CNY 2
Jiangsu Zhongtian Gongkang Environmental Technology Co., Ltd. million in electricity costs, demonstrating how clean energy can PV Power System at the Construction Site
?
https://permit.mee.gov.cn/perxxgkinfo/xkgkAction!xkgk.action?xkgk=getxxgkContent&dataid=c4b60efa6805449187d enhance both project efficiency and economic performance.
Huainan CNBM Tengfeng Environmental Technology Co., Ltd.
Optimizing the energy structure
?
https://39.145.37.16:8081/zhhb/yfplpub_html/#/searchPage?keyWord=%E6%B7%AE%E5%8D%97%E4%B8%AD%E5
%BB%BA%E6%9D%90&hy=%5B%5D
We actively promote the adoption of clean energy equipment and accelerate the development of renewable energy projects. Based
Henan Sinoma Environmental Protection Co., Ltd.
on regional resource conditions, we strategically deploy solar energy and new energy facilities to increase the share of clean energy
?
http://222.143.24.250:8247/enpInfo/enpOverview?enterId=91410400755194405B001C&reportYear=2025 in our overall energy consumption, gradually reducing dependence on traditional energy sources and advancing our low-carbon
? Tangshan Sinoma Heavy Machinery Co., Ltd. and green transformation.
http://121.29.48.71:8080/#/fill/detail?enpId=B1067AEC-3AF6-4A20-8FB5-68988B691BA3&year=2025 Leveraging our own expertise in green energy and environmental services, we promote energy-saving renovations in our own office
buildings and manufacturing facilities, with a particular focus on rooftop photovoltaic (PV) installations. Our subsidiaries and we
have installed PV power generation systems at office buildings and industrial parks, either through self-construction or third-party
investment.
Strengthening energy management
As of the end of 2025
We have strengthened our energy management system to enable real-time monitoring and analysis of energy usage, optimize
energy distribution and dispatch, and achieve overall consumption reduction. We have established management systems for clean
production, energy conservation, and emission reduction, defining clear requirements and strengthening supervision and Total installed solar PV capacity reached
assessment to ensure the effective implementation of all measures. Regular training and publicity campaigns on energy
conservation and emission reduction are conducted to enhance employee engagement and foster a corporate culture that representing a
prioritizes energy efficiency and emissions reduction.
Sinoma Mining has developed the Manual for Ecological and Environmental Compliance in Mining Operations. In accordance with
Initiatives by affiliated enterprises to optimize energy structure in 2025 this manual, it strictly observes ecological conservation redlines throughout the extraction process, obtains legally required
approvals for forestland and grassland usage, and rigorously follows land reclamation plans. It also adheres to the principle of
The 1 MW PV power station built for Sinoma Overseas' YAMAMA Project in Saudi Arabia generated approximately 1.06 million
concurrent extraction and rehabilitation, requiring timely ecological restoration upon mine closure and strictly prohibiting illegal
?
kWh of electricity in 2025.
boundary-crossing extraction. Mine construction and extraction areas, office and living quarters, industrial squares, and waste
Sinoma (Suzhou) Construction's UQNCC project in Iraq installed a 1 MWh PV system with 3 MWh energy storage, representing a dumps, along with all associated production and living systems and facilities, must not encroach upon protected areas including
ecological protection red lines, basic farmland, and national public welfare forests. In 2025, we fully implemented compliant
?
total investment of approximately CNY 7.5 million. By the end of December, the system had generated approximately 590,000
kWh of electricity. The project completed an installed capacity of 326 MWp for the year, with an expected annual power extraction requirements, with all mining activities conducted within designated areas, achieving zero instances of boundary-
generation of 540,000 MWh and an annual CO2 emission reduction of about 470,000 tons. crossing extraction throughout the year.
Sinoma (Suzhou) Construction installed 1 MWp of PV panels on the rooftop of the Iraq Industry & Trade Steel Structure Factory,
Biodiversity protection measures
?
which generated 420,000 kWh in 2025, saving CNY 840,000 in on-site electricity costs.
? Equipment Group launched a rooftop PV retrofit project with an installed capacity of 3.5 MWp, scheduled to be connected to ? Avoidance measures: During the preliminary site selection phase, we assist clients in assessing animal migration routes and
the grid in April 2026. Upon completion, it will generate 3,500 MWh of electricity per year, saving approximately CNY 800,000 in evaluating the survival status of terrestrial, freshwater, and marine species to ensure that project sites are located away from
electricity costs. biologically sensitive areas. Continuous monitoring of project impacts on surrounding ecosystems is conducted to safeguard
ecosystem integrity and biodiversity. For example, during the implementation of the Chizhou CNBM Corridor Project, Sinoma
? The rooftop PV system at the High-End Equipment Intelligent Manufacturing Park of Equipment Group generated 20,379 MWh International (Nanjing) and Sinoma Mining designed the project route to pass underneath a river, thereby avoiding direct disruption to
of electricity in the full year, saving CNY 2.18 million in electricity costs. the river system and effectively preserving the integrity and stability of the river ecosystem.
? Sinoma International (Nanjing) built a PV power station within its campus with a total installed capacity of 430.92 kWp, ? Mitigation measures: When project routes must pass through forested areas, tunnel construction is prioritized to minimize damage to
achieving self-generation and self-consumption. forest vegetation. Additionally, we continuously optimize our drilling, blasting, and excavation processes, researching and applying
new dust suppression technologies. Soil and water conservation measures are strengthened, including the construction of boundary
? The Nigeria ITORI project, undertaken as an EPC project by Sinoma International (Nanjing), installed a 0.44 MW PV system with drainage ditches, slope drainage systems, and standardized sedimentation tanks as designed. Regular desilting is conducted to
energy storage for self-consumption at the project's temporary facilities. Since becoming operational in February 2025, the prevent sediment intrusion into surrounding water bodies. Greening projects are implemented on slopes, roads, spoil dumps and in
system has generated 360,000 kWh of electricity, saving CNY 800,000 in electricity costs. living quarters, creating a verdant, ecologically harmonious mining environment where humans and nature coexist.
Regeneration measures: During mining operations, we have carried out soil and water conservation and vegetation restoration
Sinoma Cantian (Chongqing) New Materials Co., Ltd. purchased 1.4055 million kWh of green electricity in 2025, reducing costs
?
? projects. By planting trees, sowing grass seeds and implementing slope spray-seeding, the green area of mines is expanded. New
by CNY 295,300. approaches are actively explored in ecological restoration efforts to enhance the carbon sink capacity of local ecosystems. In 2025, the
ecological restoration project at the Shacun Building Materials Factory mining area in Yangxin County, Hubei Province, achieved dual
improvements in geological safety and ecological function through systematic rehabilitation. The project innovatively applied external-
We have promoted the new energy upgrade of mining equipment to achieve emission reduction, carbon reduction and electricity
soil spray-seeding technology, mixing eight drought-tolerant plant species including Robinia pseudoacacia and Medicago sativa. A
conservation. By actively exploring pilot projects for "net-zero electric mines," we are positioning ourselves at the forefront of dedicated biodiversity conservation zone was established, prioritizing native species to rebuild the ecological chain. Over 27 months,
emerging green development models. Sinoma Mining has advanced the green and low-carbon transformation of its mining the project cleared 125,000 square meters of hazardous rock, achieved a 95 percent spray-seeding greening rate, and reduced soil
operations through four key initiatives: replacing conventional equipment with new energy alternatives, converting mining trucks erosion by 80 percent. By integrating engineering measures with biological technologies, the project not only eliminated geological
from diesel to electric power, implementing energy-saving retrofits, and leveraging ecological restoration for carbon sinks. These disaster risks but also established a multi-layered vegetation system of trees, shrubs, and grasses, fully restoring the ecological function
efforts have delivered a CO2 reduction of 35,700 tons, of which 28,500 tons were contributed by the replacement with new energy of the mining area. This has provided a demonstration model of "cliff greening and ecological reconstruction" for mine restoration in
the middle reaches of the Yangtze River.
mining trucks. By the end of 2025, new energy mining trucks had been adopted across 45 projects, with a total of 428 new energy
mining trucks put into operation. ? Restoration measures: Systematic ecological restoration efforts are carried out across our operations. In 2025, Sinoma Mining
undertook 58 ecological restoration projects, including mine revegetation, ecological restoration, and geological disaster remediation.
Ecosystem conservation
A total of 1.3346 million square meters of mining area underwent ecological restoration and rehabilitation throughout the year, with
restored areas expected to achieve an average annual carbon sequestration of 5,300 tons. The restoration of the abandoned mine at
Shacun, operated by Yangxin Branch of CBMI Construction Xi'an Engineering, increased forestland area by 29.76 hectares and
construction land by 14.12 hectares, transforming a derelict mine into a sustainable and valuable ecological resource.
We actively promote the integration of biodiversity risk assessments into our business activities, identifying biodiversity-related risks
across multiple dimensions, including our operational sites and surrounding areas, upstream supply chain, and downstream ? Transformation measures: Projects are required to continuously monitor the impact of their activities on the surrounding ecological
customers. environment to ensure the protection of ecosystems and biodiversity. To strengthen biodiversity protection across our operations, we
provide regular ESG training and awareness campaigns on biodiversity conservation to all affiliated enterprises and their employees.
We have issued the Biodiversity Statement, reviewed and approved by the Strategy, Investment and ESG Committee of the Board of
Directors. We commit to strictly complying with relevant laws and regulations in the regions where we operate, keeping project
development and operation sites away from ecological conservation red lines and ecologically fragile areas, and always conducting
environmental protection for new, reconstruction, and expansion projects in accordance with the requirements of the "Three Lines
We have cumulatively developed 193 green mines, including 48 certified as national-level green mines
and One List" regulatory framework.
Sinoma Mining continuously advances green mine construction to drive high-quality development. It has developed the Green
In 2025 Mine Construction Guidelines to standardize practices and procedures.
The case "Ecological Restoration Empowering Sustainable Mine Development" was selected as one of the best practice among
listed companies for sustainable development.
All of new investment projects underwent biodiversity risk assessments
Research initiatives such as "Ecological Restoration Technologies for Arid Mining Areas in Northern China: Research and
Demonstration Applications" have effectively addressed issues including severely disturbed and unstable slopes, utilizing carbon
sequestration technologies to reconstruct mine ecosystems.
Circular Economy Resource recycling and reuse
Integration Sinoma International standardizes waste management, strengthens resource recycling and reuse, and promotes the reutilization of
waste, providing sustainable sources of raw materials for the industry and supporting the development of a circular economy.
We are committed to promoting the circular economy, actively exploring the recycling and reuse of resources and further advancing
our green development philosophy.
Comprehensive utilization of mining waste
Water recycling and conservation ? At the project design stage, we prioritize the use of recyclable or reusable materials to ensure that they can be easily
dismantled and reused. We also reduce waste and unnecessary consumption by optimizing construction processes
We strictly comply with national standards, including the Discharge Standard of Pollutants for Municipal Wastewater Treatment and materials management.
Plants and the Integrated Wastewater Discharge Standard. We systematically track and monitor the availability of water resources ? During ore mining operations, we optimize ore blending by scientifically combining high-grade and low-grade ores to
at our operating locations, and collect real-time information on regulatory changes and water tariff adjustments to assess risks improve the utilization rate of waste rock. Waste rock generated during the mining process is further processed and
related to water scarcity and policy fluctuations, and adjust our water management strategies accordingly. We clarify water reused as construction materials, road paving materials, or other valuable resources.
conservation responsibilities and strengthen supervision and inspections. During project design and implementation, we install
water-saving devices such as low-flow faucets, flush systems, and showerheads. We also build rainwater collection tanks to reuse ? We recycle and reuse used tires by coating them with reflective paint to create flexible vehicle barriers or by
rainwater and reduce water consumption during construction. In addition, we install water meters and monitoring facilities to repurposing them into on-site landscape features and safety signage.
continuously monitor water consumption, promptly detect and repair leaks, and prevent water waste. ? We separate sludge and fine sand generated from sedimentation tanks through solid-liquid separation and reuse them
In terms of water recycling, we actively promote the development of greywater reuse systems. By constructing rainwater collection as substrate materials for mine site revegetation, enabling resource recovery.
tanks and multi-stage sedimentation tanks, We have established a graded treatment system for rainwater, sprinkler water, and car
wash wastewater. Multi-stage sedimentation tanks and oil separation tanks are installed to remove suspended solids and grease.
Treated greywater that meets relevant standards is preferentially reused for vehicle washing, road sprinkling, dust suppression, and
vegetation restoration.
Construction waste recycling and reuse
? We organize subcontractors of major projects to formulate special plans for on-site construction waste reduction,
specifying reduction targets and the division of responsibilities. The plans propose specific measures including source
Measures for efficient utilization of water resources reduction, classified management, on-site treatment, and discharge control, and promote the integrated use of
temporary facilities such as roads and site hoardings with permanent facilities.
? The Xinjiang hybrid wind power tower project of Sinoma Overseas collects snowmelt for reuse, effectively reducing ? We encourage subcontractors of all engineering projects to recycle and reuse construction materials. We also provide
freshwater consumption. For the PPC project in South Africa, a three-stage sedimentation and water recycling tank has interpretation and training for our employees and contractors, and promote digital processing and information-based
been built for washing operations at the concrete batching plant, which is expected to save approximately 10,000 management to achieve precise material cutting and refined management and reduce material loss.
cubic meters of water annually.
? We improve the reuse rate of temporary facilities and reusable materials at construction sites, promote the repeated
? CBMI Construction Xi'an Engineering Shaoyang County Branch installed wastewater treatment facilities and a recycling and efficient use of construction materials and equipment, and extend the lifecycle of materials and products.
system for car-wash water at the mining site, saving a total of 5,800 cubic meters of water throughout the year and
directly reducing operating costs by approximately CNY 22,000. ? During the building design stage, priority is given to the use of high-strength, high-performance, durable, and
recyclable materials to ensure easy dismantling and reuse. For example, steel formwork that becomes deformed or
twisted during construction can be repaired and reshaped for repeated use, while discarded wooden battens and
timber blocks can be extended and repaired for reuse.
Forest resource protection
Packaging simplification and reduction
We advocate simplification and reduction of packaging materials to reduce resource consumption.
Our engineering and construction projects involve the use of timber. Surface vegetation needs to be removed during the
stripping process of mine construction and mining. Land reclamation involves the purchase of saplings; and timber is used
for the support of adits and tunnels as well as the erection of scaffolding. Therefore, we place great importance on the
protection of forest resources and sustainable development in our business activities and adopt various measures to avoid
damage to forest resources, reduce land exposure, and prevent soil erosion. ? During equipment delivery and material transportation for international engineering projects, we
adopt lightweight, reduced, and recyclable packaging strategies to optimize space utilization, and
Compliance with laws and regulations
lower energy consumption during transportation.
?
We strictly comply with all laws and regulations related to forest resource protection to ensure that our business
activities remain fully compliant.
? Strengthening responsibility and control
When signing contracts with contractors, we clearly specify allowable material loss ratios. For self-operated projects, ? We clearly require large equipment to be reinforced with recyclable metal frame packaging. After
responsibility agreements for material management are signed with project managers, requiring improvements in being transported to project sites, metal materials such as angle steel can be directly reused as
construction techniques and processes to enhance material turnover and utilization rates, thereby preventing auxiliary materials.
excessive waste and loss at the source.
? Sustainable procurement policy
We have established a sustainable procurement policy that requires suppliers to provide timber and forest products
from legal sources and obtain relevant forest certifications, while encouraging suppliers to use sustainably managed ? By applying hard film rust preventive oil and protecting machined surfaces, we replace fully enclosed
forest resources. wooden box packaging with frame or pallet packaging for certain products, thereby reducing the use
of wooden boxes.
? Supplier compliance audits
We conduct online or on-site audits of suppliers to ensure their compliance with environmental and social
responsibility requirements and to prevent activities that may damage forest resources.
? Substitution of timber materials ? We procure second-hand containers for use as packaging boxes. After being transported to
construction sites, these containers can be reused as storage units for long-term use, enabling
We consider using steel or aluminum formwork as substitutes for timber formwork, or selecting high-quality timber
multiple uses of a single item.
formwork to increase reuse cycles, thereby avoiding excessive timber consumption.
? Forest resource restoration
We have carried out environmental initiatives such as factory greening and tree planting for mine restoration to protect
forest resources and improve the ecological environment.
? Through binding requirements in procurement documents and contractual clauses, we promote the
simplification and reduction of packaging materials while ensuring the safety of cargo
transportation. We have also formulated special requirements and specifications for sea freight
packaging as contractual annexes, requiring suppliers to prioritize the use of green and recyclable
packaging materials.
Case: Green processes for sustainable building materials
Sinoma (Handan) Construction has steadily advanced the industrial production line project for rock fiber boards, using clean
electricity as the primary energy source to produce new green building materials that can replace traditional materials such as
ceramic tiles and wooden flooring. The production process of this product is environmentally friendly, with no waste residue or
wastewater discharge. It is expected to recycle and utilize 47,775 tons of bulk solid waste annually, including 21,277 tons of
metallurgical slag and 26,498 tons of tailings (basalt tailings), while producing 50,000 tons of rock fiber boards each year. By ? We support suppliers in recovering delivery packaging, thereby improving packaging utilization
reducing the consumption of natural timber, the project significantly lowers carbon emissions and mitigates impacts on land and efficiency, reducing waste, and promoting green development throughout the industrial chain.
vegetation.
Enhancing Service Quality
We are committed to building a world-class enterprise featuring excellent products, a prestigious brand, leading innovation
capabilities and modern corporate governance. We consolidate our brand through quality assurance, drive brand growth by
meeting with customer needs, and empower brand building through technological innovation. By fully leveraging our role as an
Leading Industrial Progress
industry leader and our industrial influence, we continuously reinforce the global standing of the SINOMA brand.
Creating excellent products
and Enhancing Overall Value Delivering premium projects
for Mutual Benefit Upholding the principle of "pursuing excellence and creating classics," we focus on delivering premium projects as we build our a
global brand and effectively lead industrial development. Domestically, we have undertaken the construction of the vast majority of
cement production capacity. Internationally, we have contracted 373 cement production lines across 91 countries and regions,
with continuous delivery of high-quality projects that have won wide acclaim from customers. In 2025, we remained committed to
integrity and honoring our commitments, advancing overseas projects with high quality, and ensuring the timely, stable and high-
quality delivery of all projects.
Enhancing Service Quality
In 2025
Sustainable Supply Chain A total of10 projects were commissioned, 25 projects obtained Provisional Acceptance
Certificates (PAC) and 15 projects received Final Acceptance Certificates (FAC)
In 2025, we have received letters of
appreciation and recognition from clients and
government authorities in multiple countries,
including France, Saudi Arabia, the Philippines,
Iraq, Nigeria, Ethiopia, Niger, the United States,
and Kazakhstan. These accolades, earned
through exceptional contract performance and
professional dedication in global engineering
services, underscore the high level of
international recognition we have achieved
in project execution, production operations
and maintenance, and customer service.
Strengthening quality control
Sinoma International places high priority on quality control. By strengthening institutional development, tightening process
control, and improving basic management, we have standardized the entire business process and comprehensively improved
In 2025, the Company received a series of engineering and technical service awards quality. In 2025, multiple products from Sinoma Equipment received internationally recognized certifications: Electrically integrated
products of Hefei Gutai Automation passed both IEC international certification and EU CE certification; CNBM (Hefei)
Machinery & Electricity's chain bucket elevators and steel cord belt elevators received CE certification.
? CBMI Construction Nigeria was awarded the
"2025 Best World-Class Quality Industrial Engineering Company in Africa"
Institutional guarantee
? The Nigeria KOGI project, undertaken by CBMI Construction as an EPC contractor, received the
"2025 Nigeria's Highest Engineering Quality Award" In accordance with ISO standards, we have established and implemented internal policies including the Management Manual for
Quality, Environment, and Occupational Health and Safety Management Systems, Compilation of Procedural Documents for
Quality, Environment, and Occupational Health and Safety Management Systems, and Procedures for Identification, Evaluation of
? Seven projects of Equipment Group won "2025 Outstanding Engineering Design Awards in the Laws and Regulations, and Control of Technical Regulations/Standards, continuously optimizing the quality management system.
In 2025, one additional affiliated enterprise obtained ISO 9001 certification, bringing the total number of certified entities to 46.
Building Materials Industry" organized by the China Building Materials Engineering Construction
Association, including two first prizes, two second prizes, and three third prizes
Nigeria New Materials Co., Ltd. has been awarded the prestigious Africa Housing Awards for its outstanding Risk management
?
contributions to green building materials innovation, the implementation of affordable housing solutions, and
localized sustainable development. It has become a highly representative Chinese enterprise among this year' s
We integrate risk management principles into every link of product manufacturing and service delivery.
winners.
? In terms of the industry, we keep abreast of the latest technical and environmental standards in the industry and integrate
them into product development and project initiation to address risks and opportunities brought by technological progress
and stricter environmental requirements.
Case: Signing of Saudi QCC 10,000-tonne-per-day clinker line: a new cornerstone ? In terms of products, through scientific performance measurement and supervision methods such as data collection, data
in the Middle East Market 70
analysis, expert consultation, and evaluation report preparation, we identify impacts and risks in energy consumption,
resource utilization, waste discharge, carbon emissions, labor rights, health and safety, and social responsibility during
In August 2025, one of our affiliated enterprises, Sinoma International (Nanjing), held a signing ceremony with Saudi-based Qassim production and use. Proactive improvement measures are developed accordingly to deliver high-quality, low-risk products
Cement Company (QCC) in Buraydah, Qassim Province, for the EPC contract of QCC's 10,000-tonne-per-day clinker production line and services.
(Line 4). This project marks a major clinker production line we have secured since our "Return to Saudi Arabia" strategy was ? In terms of implementation, risk administrators are appointed to promptly identify various risks in daily operations. Risk
initiated. It represents a significant achievement in our active pursuit of international expansion within our core cement business collection and assessment are conducted based on six categories of influencing factors: finance, legal and regulatory
and lays a solid foundation for our continued growth in the cement markets of the Middle East and the broader Arab region. compliance, reputation, customer relationships, operations, and safety, health and environment, along with likelihood of
occurrence. Response measures are actively developed and implemented under the dual requirements of systems and
performance appraisal.
Case: Successful commissioning of Saudi Jazan Project: setting a new ? In terms of regional problems, in our localized operations, we incorporate country-specific risks into product and service
benchmark for project execution in the Middle East supply considerations, with a focus on risks arising from local government environmental and energy-saving policies, personal
safety of overseas employees, religious beliefs, and ethnic cultures.
In December 2025, the commissioning ceremony for the SPCC Jazan 5,000-tonne-per-day clinker production line (Line 3) project
was held at the site in Jazan, Saudi Arabia. The project was undertaken by Sinoma International (Nanjing) as the EPC contractor,
with Sinoma (Handan) Construction responsible for construction. As a benchmark project demonstrating our deep engagement in
the Middle East market, the SPCC project embodies the deep trust and cooperation expectations of the client. It represents a
strategic move to consolidate our leading position in the Saudi market and expand our business footprint across the Middle East. Quality recognition
Since the project commenced, the Sinoma International (Nanjing) team has adhered to the principles of "high standards, high
speed, and high quality," overcoming challenges and striving for excellence. This project stands as a testament to our overseas We continue to advance our "Five-Star Project" initiative, striving to develop projects that demonstrate high-level contract
competitiveness and the strength of the Sinoma brand. performance capability, high-growth economic returns, high-efficiency management, high-standard safety engineering, and
comprehensive organizational support.
To strengthen the project manager team, the Company introduced the Project Manager Points Management Method for the first
time, establishing a quantitative evaluation model based on dimensions such as qualifications, honors, experience, and
performance. In accordance with this method, the company completed its first selection of outstanding project managers. After
preliminary review by the respective units and final review by headquarters, 60 gold, silver, and bronze project managers were
ultimately selected.
Sincere and premium service
Protecting client privacy
We are committed to providing customers with high-quality services. By integrating design and R&D, equipment manufacturing,
construction, operation and after-sales services, we have established communication mechanisms with strategic partners including We place high importance on protecting internal and client privacy. Stringent measures are implemented to prevent
Holcim, CRH, Heidelberg Materials, InterCement, Dangote Cement, EPCC and YAMAMA. Through comprehensive engagement with privacy data breaches, including system access controls, user logs, employee confidentiality clause signing, confidentiality
clients' production needs across the entire lifecycle, we have built a strong brand image defined by reliable contract performance, agreement signing, and training on confidentiality rules. Confidentiality obligations, clear responsibilities and liability for
superior product performance, and excellent service. breach are specified in contracts with suppliers.
Understanding client needs
Ensuring information security
We conduct monthly, quarterly, and annual tracking of contract performance quality and service progress. Regular
satisfaction surveys are carried out through questionnaires, phone calls, and interviews, with key clients receiving periodic
follow-up visits to assess satisfaction levels regarding products, services, pricing, and delivery timelines, as well as to
understand their evolving needs. An integrated after-sales service system has been established to continuously enhance
Governing Body: the corporate governance body exercises overall oversight of information security. The
customer satisfaction.
Chairman, leveraging extensive management experience in this field, takes the lead in formulating the company's
digital development strategy. The Board members possess extensive experience in information security
management.
Executive Body: the Company has established a cybersecurity leadership structure comprising a steering group
Addressing client complaints and a working group. The Chairman serves as Leader of the Cybersecurity Steering Group, with the President and
the Executive in charge of digitalization as Deputy Leaders, and other senior management members as
participants. The Leader of the Cybersecurity Working Group is the Executive in charge of digitalization, with the
We have established an accessible and efficient complaint handling mechanism with diversified communication channels.
Head of the AI and Digitalization Department as Deputy Leader, and heads of all headquarters departments as
Tailored solutions are developed based on client needs, with an efficient client complaint handling process covering
members. An information reporting mechanism has also been established, with all relevant personnel are
classification, investigation and verification, solution development, and follow-up feedback.
experienced in cybersecurity and information security.
In 2025
We have revised our Cybersecurity and Information Security Management Measures, clarifying procedures for
reporting and managing information security incidents. In addition, we strengthen information security through
awareness training, improved systems, enhanced measures and risk assessments. Information security training
and activities are organized in line with China Cybersecurity Week to ensure the sustained effectiveness of
including over achieving a satisfaction rate of
cybersecurity management. Guided by the fundamental principles that accountability rests with those who
of our clients participated oversee, operate, and use information systems, and that planning, construction, and operation must be
in satisfaction surveys coordinated, we have established a multi-tiered management system with cascading responsibilities. This system
covers the headquarters, all secondary subsidiaries, and their affiliated enterprises. Updates and improvements
have been made in infrastructure security, protection systems, data lifecycle security management, cloud service
and outsourcing risk management, information reporting, and incident emergency response mechanisms.
Throughout the year, classified protection certification, cybersecurity intelligence handling, emergency drills and
cybersecurity campaigns were carried out to ensure the sustained effectiveness of cybersecurity management.
Targets
By 2026 We have made remarkable progress in building our information security system. Core business systems such as the
integrated portal system have obtained Level III Cybersecurity Classified Protection Certification. A systematic
security operation and maintenance mechanism has been established, with third-party vulnerability scanning and
penetration testing conducted every one to two years and before new systems go live. The Information System
the participation rate of key or long-term clients in overall client satisfaction maintained above
Security Emergency Response Plan has been developed and is regularly updated to strengthen proactive
satisfaction surveys is targeted to reach protection. By strengthening emergency coordination with suppliers, we ensure rapid identification of
management and process flaws in the event of security incidents. Violations of security rules will be subject to
accountability accountable, with full efforts to ensure business continuity and stable system operation.
Driving industry innovation
We fully implement the national innovation-driven development strategy by increasing investment in R&D and innovation,
protecting intellectual property rights, and building innovation platforms to continuously foster new drivers of growth. In 2025, the Company and affiliated enterprises
have received a series of science and technology innovation awards
Innovation and R&D governance
The Science and Technology Innovation Leadership Group, chaired by the Vice President, takes overall charge of the Company's
Provincial- and ministerial-level awards:
innovation development and R&D system. It organizes and implements key initiatives including breakthroughs in core technologies,
Tianjin Cement Industry Design and Research Institute and Sinoma (Suzhou) Construction won
green and low-carbon technology R&D, and digital transformation and upgrading. Throughout strategic planning, industrial
?
the First Prize of 2025 Hebei Science and Technology Award for the project "Key Technologies and Applications of
upgrading, and project implementation, we continuously monitor market opportunities and competitive risks arising from
Structural Regulation of Non-Metallic Minerals for Preparing Eco-Friendly Functional Materials"
technological transformation. Under the unified arrangement, all affiliated enterprises collaborate to promote technological
innovation and the commercialization of achievements. ? Tianjin Cement Industry Design & Research Institute won
the Second Prize of 2025 Tianjin Science and Technology Award for the project "Key Technologies, Equipment
Innovation development strategy and Engineering Application of Advanced Suspension Calcination for Carbon Dual Control in Typical High-
Carbon Industries"
In 2025, guided by our science and technology plan and in accordance with the Interim Measures for Post-Evaluation of Scientific
Three technological applications of Tianjin Cement Industry Design & Research Institute won
Research Projects, we explored the establishment of an achievement evaluation system. We actively undertook major national
?
innovation tasks and accelerated implementation of our "open competition" incentive mechanism, with five categories of "open the 2025 Science and Technology Award from China Building Materials Federation
competition" projects under the 14th Five-Year Plan progressing as scheduled. A fifth category of scientific research projects—
Special Technology Initiatives for Transformation and Development—was established, with two such initiatives successfully ? CNBM (Hefei) Powder Technology Equipment won
launched. the Third Prize of 2025 Anhui Science and Technology Progress Award for the project "R&D and Engineering
Application of Key Technologies and Equipment for Intelligent Control in Cement Production"
We actively implement incentives for scientific and technological achievements and apply the additional tax deduction policy for
R&D investment. Special rewards are granted for achievements receiving the Company's science and technology awards, innovation
awards, and patent awards, as well as for authorized invention patents and promulgated standards. Key project implementation Industrial-level awards:
teams receive additional performance-based incentives beyond their regular payroll.
We strengthen our strategic orientation toward innovation-driven development, addressing key technological challenges and ? Sinoma CDI won the Second Prize (Comprehensive Category) at the 6th Engineering Construction Industry BIM
focusing on breakthroughs in core technologies. Efforts to accelerate the commercialization of research achievements, including Competition for the project “Integrated BIM Application in Design and Construction of the 3-million-tonne
fluidized calcination, low-carbon grinding, and hydrogen fuel substitution, have been intensified. The world's first demonstration Qingfeng Green Energy Silicon-Calcium New Materials," the First Prize at the 4th "New Urban Construction Cup"
application of cement oxy-fuel combustion coupled carbon capture technology was officially unveiled, empowering our high- International BIM/CIM Application Competition for "BIM Empowerment: Innovative Practice and Value of
quality development through technological innovation. Sinoma Construction France won the European "Science and Technology Integrated Design and Construction"
Cooperation and Innovation Award" for its outstanding performance in cross-border scientific and technological cooperation
and innovation. ? Sinoma CDI won the Second Prize at the 14th "Innovation Cup" Building Information Modeling Application
Competition for the "Application Achievements of BIM Technology in EPC Projects"
? Tianjin Cement Industry Design & Research Institute won the Third Prize at the 6th Engineering Construction
Industry BIM Competition, and the First Prize (BIM Application in Engineering Design) at the 2025 Tianjin Intelligent
Construction Technology Innovation Competition for the project "Comprehensive Whole-Process Application of
BIM Forward Design in Building Materials EPC Projects"
? Hefei Cement Research & Design Institute, Tianjin Cement Industry Design & Research Institute, and CNBM (Hefei)
Powder Technology Equipment received two First Prizes and eight Second Prizes in the Science and Technology
Progress Category of the 2025 Building Materials Machinery Industry Science and Technology Awards
? Hefei Cement Research & Design Institute, and CNBM (Hefei) Powder Technology Equipment won the First Price at
the 2025 Science and Technology Award of China National Building Material Group. Tianjin Cement Industry Design
& Research Institute, and Sinoma Mining Construction and were awarded the Second Price at the 2025 Science and
Technology Award of China National Building Material Group
Risk and opportunity management Digital and intelligent engine
We have established robust risk management mechanisms for innovation and R&D. We strictly comply with relevant laws and
In accordance with the 14th Five-Year Digital Strategy Plan of Sinoma International, we have defined our digital vision: to
regulations, including the Patent Law of the People's Republic of China and the Copyright Law of the People's Republic of China,
comprehensively build a digitalized company and become a world-class provider of intelligent solutions for the materials industry.
and have developed the Measures for the Administration and Protection of Intellectual Property Rights and Measures for the
Reward of Scientific and Technological Achievements. Through these efforts, we actively protect intellectual property rights,
systematically mitigate IP-related risks, and continuously cultivate new drivers of growth. Additionally, we develop Intellectual
Property Day activities to enhance the awareness of IP protection and risk prevention among all employees, and give full play to the
important role of intellectual property in supporting innovation and high-quality development.
In scientific research, innovation and technology application, we strictly comply with international norms and industry standards.
We have also actively established and implemented a responsible technology ethics management system to prevent ethical risks
arising from the adoption of new technologies. In 2025, the Company and affiliated enterprises
We also place strong emphasis on identifying opportunities for technological innovation. By establishing industry exchange received a series of awards in digital intelligence
platforms, we identify key transformation challenges in the current cement engineering and technical service sector. Internal
innovation-driven mechanisms, such as the "open competition" initiative, are implemented to accelerate the iteration of new
technologies and products, seizing opportunities presented by clean technologies.
Provincial- and ministerial-level awards:
In May 2025, we hosted the 3rd Cement Green and Intelligent Development Conference, bringing together industry leaders for in-
depth dialogue on green and low-carbon solutions, digital design, intelligent management, and traditional business expansion. ? Sinoma International Equipment's case "AI-Enabled Unmanned Application for the Whole Process of Open-Pit
These efforts contribute to the high-quality development of the global cement industry and advance the shared goal of building a Mining and Transportation" was selected as a typical application case for AI-enabled new-type industrialization
community with a shared future for mankind. and a typical case for IoT-enabled industry development; "IoT-Based Intelligent Application in Building Materials
Equipment Manufacturing" was selected as a typical case for IoT-enabled industry development
Science and technology innovation indicators ? CBMI Construction's "R&D and Application of Intelligent Construction Platform" won the Second Prize of the
Science and Technology Award of the Hebei High-Tech Enterprise Association
In 2025
Industrial-level awards:
We had 66 ongoing standards projects, including 2 international standards and 32 national standards. ? Sinoma CDI won the Silver Award at the 6th "Smart Construction Cup" Intelligent Construction Innovation
Competition for "BIM Design in Industrial Buildings and BIM Application Analysis in Innovative Building Materials
Projects"
We promulgated
? Sinoma (Suzhou) Construction's "Iraq DCC Line 1 & Line 2 Intelligent Project" received the award for Excellent
Intelligent Manufacturing Factory in Building Materials Industry as an outstanding achievement in digital
We signed
transformation of smart manufacturing in 2025
We received 9 science and 3 We obtained 190 Including 13 ? Tianjin Cement Industry Design & Research Institute received multiple awards for various projects, including: the
technology awards at or above Awards from the Group authorized invention patents international patents Gold Award for "New Technologies, New Processes, New Materials, New Equipment" achievements at the China
the provincial/ministerial level International Concrete Expo; 2025 Building Materials Industry Intelligent Manufacturing and Digital
Transformation Innovation Achievements; Building Materials Industry Excellent Solutions; 2025 Building
Materials Industry Intelligent Manufacturing and Digital Transformation Innovation Achievements (Building
Materials Industry AI Applications); the First Prize in the Technology Development Category of the 19th Building
Materials Machinery Industry Technological Innovation Award ("Jingong Intelligent Construction Machinery
Cup") 2025; and the First Prize in the AI-Empowered R&D and Design Track of the First Building Materials Industry
AI Innovation Application Competition
As of the end of 2025
? Sinoma International (Nanjing) received the
We had obtained a cumulative total of Third Prize for three projects at the First Building Materials Industry AI Innovation and Application Competition
provincial "specialized and sophisticated" enterprises "14th Five-Year Plan Intelligent Manufacturing Pioneer Enterprise" in the cement industry
In terms of business management enhancement In terms of intelligent industrial transformation
We focus on our core businesses: engineering services, high-end equipment, digital intelligence, and local operations. By unifying we leverage industrial internet platforms and digital technologies to build a premier manufacturing brand, addressing five key
data standards across the entire industrial chain covering R&D, production, supply, sales, and services, we enable integrated value aspects: intelligent equipment, automated control, intelligent production, intelligent management, and intelligent ecosystem.
creation from design and construction to operation and management. This approach comprehensively supports our multi-business
portfolio and international presence, gradually transforming the Company into a digital and intelligent solutions provider for the Driven by our globalization strategy, we are deeply engaged in international industrial cooperation through innovative intelligent
materials industry. technologies, demonstrating the significant influence of Chinese expertise and solutions in the field of industrial intelligence. We
continuously deliver systematic solutions covering green and low-carbon, and intelligent manufacturing, gaining attention and
In 2025, we completed construction of our Green Energy Intelligent Operations and Maintenance (O&M) Platform, which has been
recognition in key markets worldwide.
put into operation, achieving integrated coordination of centralized monitoring, data analysis, and O&M management. Tailored to
the operational characteristics of photovoltaic power plants, the platform unifies data standards, integrates monitoring and O&M In 2025, Shangrao Sinoma, an affiliate of the Equipment Group, was selected as a "Little Lighthouse" enterprise in Jiangxi Province.
information systems, and establishes a digital O&M system covering data collection, analysis, and process management. This
comprehensively enhances the refined management of our new energy business. By introducing artificial intelligence technologies, Sinoma International Intelligent Technology Co., Ltd. focuses on intelligent factory construction, digital transformation consulting,
the platform progressively enables functions such as intelligent alerting, image recognition, and O&M knowledge management. and equipment manufacturing, offering one-stop services from R&D to production operations and maintenance. Its projects span
Through this platform, we have effectively improved O&M efficiency and decision-making support capabilities, enhancing the Southeast Asia, the Middle East, and 28 provinces and cities in China, serving international building materials groups including
responsiveness of our new energy business to market changes. LafargeHolcim and Heidelberg Materials.
In August 2025
Case: Local deployment of DeepSeek: leading intelligent industrial upgrading
a promotion and innovation achievement exhibition was held in Jakarta, Indonesia. At the event, we released four scientific
In February 2025, we completed the local deployment of DeepSeek, providing large model applications and opening enterprise knowledge and technological innovation achievements, comprehensively presenting innovative solutions that support Indonesia's
base scenarios to all affiliated enterprises. The local deployment of DeepSeek and the application of knowledge bases represent a significant national development vision to guests including Indonesian government agencies, business partners and investment
step toward building an enterprise-wide knowledge repository and enhancing capabilities in scientific research, design, engineering and institutions, and actively expanding cooperation space with regional customers.
technical services, and O&M. Looking ahead, we will further consolidate computing resources and expand capacity as needed to meet the
demands of researchers and designers for additional versions of large models. This will gradually cover research, validation, and scenario
In September 2025
development across fields including engineering design, equipment manufacturing, construction, and production line O&M.
a delegation from the Global Industrial and Energy Foundation visited CBMI Construction. The two sides conducted in-depth
exchanges on core topics including the development path of "net-zero emissions" and low-carbon sustainable development
The Sinoma International "Dual Carbon" Digital Platform developed by Sinoma International Equipment has been stably applied in the industry, and carried out multi-dimensional and in-depth discussions on key green development directions across
across 101 subsidiaries and 329 ongoing projects, covering domestic and overseas engineering, equipment, mining and multiple sectors.
environmental protection sectors. The platform has standardized carbon accounting, and rolled out functions including data query,
one-click chart and report generation. It has addressed difficulties in data aggregation, verification and analysis, as well as low In December 2025
management efficiency, while providing a carrier for data traceability and accumulation. Additionally, features such as automatic
aggregation of intelligently collected equipment energy consumption data and multi-source data comparison have been deployed at the Iraq Cement Industry Comprehensive Service Solutions Promotion Conference held in Sulaymaniyah, Sinoma
in mining operations, representing a meaningful step toward intelligent monitoring and enhanced data credibility. This platform International highlighted its full-cycle integrated services covering consulting, design, construction, operation, renovation,
serves as a critical enabler for the implementation of our "Dual Carbon" action plan. digitalization and green energy supporting solutions, supported by its full industrial chain and localized experience. The
Company also shared successful cases of its intelligent operation and maintenance system in Iraq, demonstrating its brand
Case: Sinoma International Equipment develops intelligent platform to strength.
drive business transformation
Sinoma International Equipment is actively developing an intelligent Sinoma International Intelligent Technology formally signed a strategic cooperation agreement with Korea's cement giant
service and O&M platform for the full lifecycle of cement equipment, Sampyo Cement for the "Cement Mill AI Autonomous Manufacturing Project." This project has been designated as part of the
driving its transformation from equipment manufacturer to service nationally supported "AI Convergence Industry Upgrade Program" under Korea's Ministry of Trade, Industry and Energy, and
provider. The platform integrates remote monitoring, intelligent after- has received direct funding from Korea's national special budget. Sampyo Cement aims to implement Sinoma International
sales service, and a cloud-based spare parts management system, Intelligent Technology's comprehensive intelligent manufacturing solutions to progressively achieve full intelligence from
ensuring stable equipment operation while enhancing operational
edge sensing and platform control to business decision-making, ultimately completing the intelligent upgrade of all
efficiency and market responsiveness. Through the development of an
intelligent knowledge platform based on domestic large language models, production lines within five years and establishing Korea's first "unmanned factory" in the industry.
Sinoma International Equipment has systematically built a knowledge
base covering core equipment including kiln systems and vertical mills.
Leveraging knowledge graph technology, an intelligent maintenance
decision-making system has been developed, capturing historical
maintenance experience to form reusable decision rules. These provide
Interface of the Cement Equipment Full-Lifecycle Intelligent
data-driven support for product optimization, O&M, and spare parts Operations and Digital Service Platform
configuration. Since its application, the platform has demonstrated initial
value.
The maintenance decision-making process has been optimized via knowledge graph, reducing the average fault handling time by
approximately 20%. Integrated with the domestic large model, it enables intelligent fault diagnosis and solution recommendation, cutting
after-sales service costs by around 10%. These practices have provided a feasible path for the Company to deepen its service capabilities
through digitalization and build new competitive advantages in the existing market.
Sustainable Supply Chain Supplier evaluation
We conduct an annual assessment of all registered suppliers to ensure their compliance with our internal policy, the
Supplier Code of Conduct. For suppliers that performed contractual obligations during the year, we conduct document
We have established a transparent, dynamic, and traceable supply chain management system. We integrate the concept of reviews and on-site audits covering multiple dimensions, including product quality, environmental performance, work
responsible procurement into the whole procurement process, implement supplier management policies and risk control measures, safety, and human rights protection. Suppliers with non-compliant items are required to formulate improvement plans to
and focus on environmental attributes of procured products and services as well as suppliers' sustainability performance. By avoid potential conflicts with ESG requirements.
building long-term, stable, and sustainable partnerships with suppliers, we promote long-term win-win development with our Each affiliated enterprise has established a differentiated supplier evaluation system based on its business characteristics.
partners. During the equipment procurement review stage, we attach particular importance to evaluating suppliers' environmental
policies and management systems, and prioritize the procurement of green, and low-carbon products and services. We also
Improving supply chain management
conduct annual assessments of registered suppliers, incorporating key indicators such as safety, occupational health,
insurance coverage, and wage payment into the supplier evaluation system.
In line with our internal management regulations such as the Supplier Management Measures and the Purchase Management Supplier ESG Assessment Objectives of Sinoma International Intelligent Technology Co., Ltd.
Measures, we have implemented a robust supplier classification management system that categorizes suppliers into four tiers:
qualified, potential, unqualified, and blacklisted, each subject to differentiated management measures.
To increase the proportion of suppliers
undergoing ESG risk assessments to To achieve
In 2025 risk assessments coverage
The short-term The long-term for all suppliers
target target
We achieved a 100% adoption rate for our procurement platform. Supplier ESG Assessment Objectives of the Equipment Group
In the 2026 supplier evaluation process, we will further increase the weighty of ESG criteria to promote continuous
improvement in suppliers' sustainability capabilities.
Supplier admission
We continuously improve our supplier admission mechanism, with our affiliated enterprises integrating ESG into
Supplier support
throughout the entire procurement process. In addition, we implement strict supplier evaluation and screening
procedures, requiring suppliers to submit the Supplier Information Registration Form. Comprehensive information
We maintain close cooperation with suppliers and provide regular interpretation and training in line with our annual plans,
verification, assessments, and scoring are conducted through the Group's procurement platform and third-party
development strategies, and project management requirements. We also organize technical exchange activities on ESG-
professional websites. Suppliers receiving low evaluation scores are subject to thorough due diligence and review to
related topics, including the implementation of dual-carbon goals, health and safety management, and labor risk
effectively mitigate potential risks in cooperation.
management.
We actively support our suppliers by organizing technical exchange meetings to improve their professional capabilities and
assist them in better understanding the technical requirements of relevant projects. Meanwhile, in line with our future
Supplier management development plans, we interpret our strategic objectives to suppliers and sign strategic and framework agreements with
high-quality suppliers capable of long-term supply, thereby supporting their sustainable development.
To improve the quality and efficiency of supply chain management, we continue to optimize the supplier classification
management system. Through scientific evaluation, suppliers are classified into different tiers, with differentiated
management strategies applied based on clearly defined grading criteria. Outstanding suppliers scoring 90-100 points are
Supplier exit
given priority in cooperation opportunities. For key products, we adopt a multi-supplier mechanism to ensure the security
and stability of the supply chain. Through the Group's procurement platform, we dynamically adjust cooperation strategies
We have established a regular supplier assessment mechanism and fully incorporate ESG performance indicators into our
based on suppliers' overall capabilities and evaluation results, thereby building a high-quality supplier ecosystem.
annual evaluation system. A supplier selection and exit mechanism has also been established. We closely monitor cases of
We strictly comply with laws and regulations such as the Regulation on Guaranteeing Payments to Small and Medium-sized violating our fundamental ESG requirements, including quality issues, payment disputes, labor risks, and non-compliance
Enterprises and have established standardized and transparent supply chain financial settlement procedures. As of the end with energy-saving and environmental protection standards. Suppliers involved in such cases are required to implement
of the reporting period, the proportion of accounts payable in total assets did not reach the disclosure threshold specified corrective measures, and those that refuse to rectify within the specified timeframe or commit serious violations will be
in the Guidelines, and no cases of significant overdue payments to small and medium-sized enterprises occurred. added to the supplier blacklist.
Mitigating supply chain risks Supply chain integrity supervision and audits
We strengthen supplier integrity supervision and focus on preventive measures by requiring all suppliers to submit an
We continue to improve our supply chain ESG risk assessment system. Our affiliated enterprises have formulated specific targets
?
Integrity Commitment Letter during the admission process to our online procurement platform.
based on their respective development stages. They actively identify environmental and social risks within the supply chain, pay
attention to suppliers' ESG performance, and conduct assessments throughout the entire cooperation lifecycle. We integrate ESG ? We have established a parallel mechanism whereby procurement contracts are executed alongside integrity
requirements into our existing supplier admission mechanism and incorporate ESG criteria into the supplier evaluation system agreements. For every procurement contract signed with suppliers, a separate Procurement and Subcontracting
during the cooperation assessment stage, thereby mitigating supply chain risks.
Integrity Agreement is also signed, achieving a
Identification of supplier sustainability risks supervision and reporting, thereby reinforcing ethical conduct throughout the procurement process.
? Our affiliated enterprises are also required to focus on strengthening procurement compliance and digital management.
We categorize our suppliers into qualified suppliers, potential suppliers, unqualified suppliers and blacklisted suppliers based on their They have conducted supervision and inspections of key business processes such as procurement and bidding to
business performance, contractual fulfillment, product quality, and the sustainability risks outlined below. identify procedural gaps and potential integrity risks.
? Environmental management: Whether the supplier has been subject to administrative environmental penalties. ? We also regularly conduct special integrity inspections of procurement and outsourcing activities across our affiliated
? Social responsibility: Whether the supplier has been involved in labor-related legal disputes or has been subject to government enterprises through methods such as telephone interviews.
penalties due to safety accidents.
? We supervise and urge relevant functional departments to strengthen supplier admission and evaluation management
? Corporate governance: Whether the supplier has been involved in corruption, bribery, conflicts of interest, or other improper and improve management controls. Annual comprehensive evaluations are conducted for suppliers, and those that
competitive practices. violate the provisions of the Integrity Agreement are subject to differentiated measures based on the severity of the
? Other specific risks: In certain countries where stricter social responsibility requirements apply to suppliers, suppliers may face violation, including score deductions, warnings, suspension of transactions, and inclusion on the supplier blacklist.
higher social risks. In addition, in industries or for specific products whose production processes involve high pollution or high
The affiliated enterprises will periodically dispatch working groups to project sites to conduct in-depth evaluations of the
energy consumption, manufacturers may face higher environmental risks.
?
effectiveness of supplier integrity management through on-site inspections, face-to-face interviews, and document
reviews.
We prioritize the procurement of green and low-carbon products and services. During the project bidding stage, we evaluate ? We conduct integrity interviews with personnel in key procurement positions on a periodic or ad hoc basis, organize
suppliers' environmental policies, environmental management systems, and their performance in resource utilization and waste meetings on procurement compliance management and raising awareness of integrity risks, and provide regular training
management, and require products to meet relevant environmental emission standards and energy efficiency ratings. We attach on integrity, compliance, and risk prevention.
importance to product materials and manufacturing processes, organizing experts to conduct rigorous technical assessments to
We conduct supplier follow-up visits or supplier forums on a periodic or ad hoc basis to communicate with suppliers and
ensure that selected products demonstrate low energy consumption and low pollution during the production process. During the
?
understand the integrity performance of our personnel during business interactions, thereby promoting joint integrity
cooperation, we incorporate subcontractors into our unified management system, clearly defining their safety and environmental
building with suppliers.
protection responsibilities and obligations, and specifying safety and environmental protection access requirements for equipment,
construction machinery, and facilities. During the cooperation assessment stage, we regularly monitor and review suppliers' In 2025, the rate of affiliated enterprises that conducted or received supplier-related special inspections, on-site
?
environmental performance to ensure compliance with contractual and environmental regulatory requirements, and work with
suppliers to address environmental management issues. inspections, and follow-up meetings reached
We attach great importance to strengthening the ESG capabilities of our procurement teams,
and require our affiliated enterprises to carry out related training and educational activities.
Safeguarding supply chain stability
We attach great importance to the security and stability of our supply chain and have established a multi-dimensional risk
In November 2025, Sinoma International organized a training and promotion meeting for the procurement management system. The
meeting focused on three key agendas: interpretation of policies and regulations, dissemination of internal systems, and addressing identification and response mechanism, maintaining continuous monitoring of external factors such as wars, geopolitical
common issues. It systematically integrated ESG principles and green procurement requirements, comprehensively reviewed core developments, international relations, and sanctions.
procurement standards and key risk control measures, and laid a solid foundation for future procurement that is compliant, efficient,
and sustainable.
We actively expand our supplier base each year and establish multi-location warehousing systems to prevent supply
Sinoma Chengdu Design & Research Institute organized systematic ESG capacity-building training for its procurement, logistics,
?
disruption risks and ensure continuity of supply.
inspection, and commissioning and operation teams, promoting the transformation of the procurement team from traditional cost
control toward sustainable supply chain management. ? We adopt a primary-and-backup supplier strategy for key products and closely monitor market developments to avoid
Sinoma International Intelligent Technology Co., Ltd. organized dedicated ESG training and sustainability awareness sessions for its supply chain disruption.
procurement department, clarifying the green procurement strategy and enhancing the team's professional capabilities. ? We make comprehensive arrangements for suppliers' delivery schedules, formulate detailed shipping plans for projects
in key regions, and maintain close communication with relevant parties including suppliers, freight forwarders, ports,
and shipping companies. In addition, we closely monitor transportation risks such as shipping routes and prepare
multiple shipping options to ensure that goods are delivered safely and on time to designated destinations.
Green and Low-Carbon Products
As a global leader in the industry of cement engineering equipment and services, Sinoma International undertakes the critical
mission of steering the industry's transition towards green and low-carbon development. The Company is dedicated to providing
clients with eco-friendly products and services of exceptional quality. Leveraging its globally leading cement technology and
equipment service system with independent intellectual property rights, the Company actively formulates a low-carbon
Embracing the Mission of the
development technology roadmap for the entire cement industry chain. This commitment helps to continuously enhance the
benefits of the industry's carbon reduction and improve environmental performance.
The Company seizes opportunities in clean technology, making green intelligence its core development strategy and translating
Times and Jointly Pursuing
this philosophy into its products and services.
Global Development with
Screening
Green Products
Principles Among them:
Responsibility
Products that promote green
development in society
Principle 1:
Application of Value: Reducing pollutants and carbon
green technology
emissions during construction, manufacturing
and operation; decreasing pollutants and
Value: It provides products that
carbon emissions for customers and owners
Green and Low-Carbon Products during equipment usage and cement
promote waste recycling, reduce fossil
energy use in the industry and society,
production line operations.
Principle 2: facilitate energy structure
Obtaining low- transformation, and lower carbon
carbon emissions, ultimately promoting green
certification In 2025, revenue from green products
Addressing Climate Change
social development and mitigating
global climate change.
reached CNY
Principle 3:
accounting for 19.73% In 2025, revenue from products
promoting social green development
Improving People's Livelihood and Well-being
Providing
of the Company's total revenue.
significant green
benefits to third reached CNY
parties (customers,
society,
communities, etc.)
In 2025
The Company's green R&D investment reached CNY 1.816 billion
the Company invested
CNY 209 million in green energy and environmental protection sectors, focusing on distributed new energy
projects and alternative fuel processing centers to support society's green and low-carbon development.
Developing Low-Carbon Equipment ? Qingzhou CCUS Project was selected into the second batch of national demonstration projects of advanced green and low-
carbon technologies, marking a major breakthrough in China's green and low-carbon transformation of energy-intensive
Sinoma International continuously advances the application of low-carbon and ultra-low emission technologies in cement industries.
production processes, achieving breakthrough progress in low-carbon equipment R&D and manufacturing. A series of significant
accomplishments have been made in energy substitution, resource recycling, energy storage applications, green building materials ? Sinoma International (Nanjing) advanced the Jiangsu Provincial Major Scientific and Technological Achievement
and intelligent optimization, forming a comprehensive low-carbon solution system covering the entire cement production process Application Project, developing and industrializing key technologies for low-carbon combustion processes and equipment
to create green value for customers. in cement kilns that replace 40% of fossil fuels, achieving over 10% reduction in total CO2 emissions from cement
production compared to using fossil fuels exclusively. All R&D tasks of the project have been successfully completed, with all
projects, including An Bai in Vietnam and Gezhouba Jingmen.
? R&D and industrialization of key technologies for cement kiln low-carbon combustion processes and equipment, replacing ? The Equipment Group actively promotes the development and application of online carbon emission monitoring
Ecology and Environment at Changshan South Cement. Within this project, the Group conducted systematic comparative
? Industrial demonstration of complete sets of technologies and equipment for producing acid and co-producing cement from research on flow velocity monitoring technologies based on different principles and performed a comparative analysis of
new-type industrial by-product gypsum carbon monitoring and carbon accounting methodologies for the cement industry. The project's performance in data
? Demonstrated application of a vanadium flow battery energy storage system for cement production accuracy and stability has been recognized by the General Station.
? Ultra-high prefabricated wind-hybrid tower structure system awarded First Prize in First Prize for Technological ? The Iraq DCC Cement Production Intelligent Operation and Maintenance Platform, constructed and operated by CBMI
Development in the CNBM Technological Innovation Award. Construction (Suzhou) and designed by Sinoma International Intelligent Technology Co., Ltd., deployed servers and
production dashboard systems. It launched AI-powered energy consumption optimization and remote operation functions,
Successfully developed and implemented intelligent optimization control system for cement clinker
enabling energy consumption monitoring and intelligent optimization for key equipment like cement mills. They completed
?
calcination in waste co-processing
multi-tenant adaptation of the platform, optimization of operational logic, and upgrading of the energy consumption
module, enabling real-time monitoring of energy consumption and carbon emissions, and achieving an average annual
energy cost saving of CNY 6 million.
The key preparation technology for activated aluminosilicate cementitious materials for cement, independently developed
Case: Vanadium redox flow battery launched, empowering green cement manufacturing
?
by CBMI Construction, has been successfully included in the national recommended catalogue.
Sinoma Overseas successfully developed a large-capacity, long-life vanadium redox flow battery energy storage system tailored for
The building materials industry standard Engineering Technical Code for Wet Flue Gas Desulfurization of High-Sulfur Flue
green cement manufacturing scenarios. Through breakthroughs in core technologies including 250kW modular design, integrated
?
Gas from Cement Kilns, compiled with the participation of Sinoma (Suzhou) Construction, has been officially implemented.
control, and high-efficiency standardized testing, the system completed a 250kW/1MWh demonstration in the high-end equipment
manufacturing industrial park. Over its lifecycle, each system can reduce nearly 2,900 tons of CO2 emissions, with annual discharge
capacity of approximately 500,000 kWh, providing reliable peak-shaving and emergency backup power services for the industrial
park.
Case: Transforming white pollution into "urban minerals," unlocking
new green growth space
The Company reduces carbon emissions from equipment manufacturing through external resource collaboration, a carbon Facing the challenge of reutilizing over 820 million tons of phosphogypsum
management system and digital transformation. It actively participates in low-carbon product certification to enhance the accumulated in China, with an annual increase of approximately 80 million tons, the
transparency of its products' carbon footprint assessments. The Equipment Group established a digital carbon management Company leveraged its proprietary engineering capabilities to successfully develop a
platform, enabling automated collection of group-wide, regional and plant-level carbon emission data through digital means. comprehensive solution for "phosphogypsum decomposition into acid and co-
Covering 42 core operational indicators including production and quality, it eliminates efficiency bottlenecks and error risks production of cement." This solution transforms industrial solid waste into sulfuric acid
associated with manual reporting, helping customers better understand carbon emissions related to products and improving and cement, truly achieving "waste-to-resource recycling and symbiotic circulation."
equipment manufacturing toward greener, smarter and more efficient development. By the end of 2025, the carbon management The world's largest phosphogypsum resource recycling demonstration project,
digital platform had connected more than 200 enterprises cumulatively. completed in Wengfu, Guizhou, can consume 1.4 million tons of phosphogypsum
annually, producing 650,000 tons of sulfuric acid and 800,000 tons of cement while
Researches on Low-Carbon Technologies
reducing carbon dioxide emissions by approximately 300,000 tons. This project
successfully transforms an environmental burden into economic resources. This
technology has been successfully registered as a project in the major scientific and
technological research program "Open competition" of the China Building Materials
Sinoma International vigorously develops green technologies, conducts extensive R&D and applies carbon reduction solutions, and
Federation. It has thus been elevated to strategic level in the national effort to promote
develops carbon capture and utilization technologies. Focusing on energy-saving and carbon-reduction breakthroughs in green development in the industry and is currently being recommended for application Wengfu Phosphogypsum Resource Utilization
"alternative fuels," "clay calcination," and "oxy-fuel combustion," it fortifies the technological foundation for the cement industry's to phosphorus chemical enterprises both in China and overseas.
Demonstration Project, Guizhou
low-carbon development.
Case: Developing an intelligent carbon monitoring and optimization Case: Integrated Solid Waste Management Practice: Creating a Green
system to empower cement industry's low-carbon transition Model for "Zero-Waste Cities"
Sinoma International's project "Research and Application of a Digital Intelligence-Based Carbon Monitoring, Assessment and Optimization The Chengdu Building Materials Institute implemented a comprehensive "zero-waste city" solution in Wu'an City, Hebei Province. Leveraging
System," systematically studies key technologies for precise carbon emission measurement, low-carbon dispatch and assessment two key technological pathways, namely co-processing in cement kilns and the circular utilization of bulk industrial solid waste in building
optimization in the cement industry. It aims to develop high-precision, highly reliable online carbon emission monitoring and measurement materials, it has achieved 100% harmless treatment of municipal solid waste, sewage sludge, medical waste, and hazardous industrial waste,
technologies. By developing a cross-coupling verification technology integrating CEMS data based on machine learning and material with an annual total processing capacity reaching 20 million tons. The solution includes planned projects for the comprehensive utilization
balance algorithms, precise CO2 emission measurement can be achieved. The project further develops high-value industrial intelligent of 13 million tons/year of industrial waste, 3 million tons/year of silicon-calcium-based new materials, and 2 million tons/year of
products serving the goals of peaking CO2 emissions before 2030 and achieving carbon neutrality before 2060 in the cement industry. The construction waste treatment. By synergistically utilizing large-volume solid wastes such as steel slag, construction debris, and coal gangue,
the project enables large-scale production of green building materials. This model has significantly improved regional resource recycling
project explores the construction of a digital and transparent technical system for supervising the quality of online monitoring data. Its
rates. Not only has it supported Wu'an City in being approved as a national-level circular economy pilot, but it has also been successfully
ultimate objective is to establish an integrated intelligent carbon monitoring and management system that combines carbon emissions
selected as a national exemplary case of a "zero-waste enterprise." It provides a replicable demonstration pathway for the green
measurement and optimization functions. This system will enable low-carbon dispatch optimization for regional companies, providing transformation of the traditional building materials industry and strongly advances the development of a green, low-carbon circular
precise decision-making support for cement enterprises in controlling carbon emissions. economy system.
Providing Low-Carbon Services
Sinoma International is accelerating the green energy and environmental protection business, developing platforms for the green
Integrated Solid Waste Management Practice: Creating a Green Model for "Zero-Waste Cities"
energy industry and for alternative fuel combustion testing, aiming to facilitate the energy transition for global clients and other
industrial and commercial users. The Company generated green energy and environmental protection revenue of CNY 4.81 billion
for the year.
Sinoma Overseas established a green energy and environmental protection industrial platform, including five business lines: wind Target for the reception, disposal and recycling of external solid waste
and solar EPC, wind power hybrid towers, smart microgrids, new energy development and new energy storage, with a total
construction scale of 5.5 GW. It has cumulatively served 21 smart microgrid and energy storage projects for basic building materials This year By 2026
and new materials enterprises, with a construction scale of 129 MW.
the Company processed and utilized 1.07 million tons of external The Company plans to reach the utilization
solid waste, achieving the target of 2.35 million tons/year in 2025 and disposal capacity of 2.75 million
for external solid waste utilization and disposal capacity tons/year of external solid waste.
?
Overseas have completed the grid connection and commissioning with a total capacity of 50MW, achieving an annual power
generation of 55.6 million kWh and reducing CO2 emissions by approximately 55,300 tons per year.
? The distributed photovoltaic power generation project at the Southwest Cement Plant in Lijiang Old Town, currently under
construction by Sinoma Overseas, has a total installed capacity of 4.6 MWp. The project maximizes resource utilization by
Building Low-Carbon Factories
constructing on idle rooftops, vacant land and slopes within the plant area. Operating under the "self-generation for self-
Sinoma International leverages its low-carbon technological advantages to provide global clients with high-quality green engineering
consumption with surplus electricity fed into the grid" model, the project is expected to generate 6.48 million kWh annually,
services, accelerating their decarbonization processes to address increasing global energy-saving and carbon-reduction pressures. To date,
reducing CO2 emissions by approximately 695 tons per year after commissioning. the Company has successfully established a new generation of world-class green and intelligent demonstration projects, including Huakan
The Sinoma Construction Portugal green retrofit project reduces CO₂ emissions by approximately 21% annually. South Cement, Wuzhong Saima and the France K6 Project. It has also implemented emission reduction benchmark projects such as the
Energy Saving, Emission Reduction and Carbon Reduction Technical Transformation Project at the No. 1 Production Line of Xuzhou
?
Zhonglian.
Sinoma Environment is building an industrial chain platform of alternative fuels, establishing an integrated "collection, storage, Case: Energy efficiency revolution of 10,000 t/d: setting an
industry green benchmark
processing, transportation and utilization" system that converts municipal solid waste, textile waste, and scrap tires into alternative
fuels for cement production lines, significantly reducing carbon emissions across the industrial chain. Xuzhou Zhonglian Cement Co., Ltd. has implemented an energy-saving, emission-reduction,and carbon-reduction technical transformation
project at its production frontline. As an innovative practice for China's first 10,000 t/d clinker production line to upgrade its preheater
system from a five-stage to a six-stage design, the core technologies include the six-stage preheater system independently developed by
By the end of 2025 Tianjin Cement Industry Design & Research Institute Co., Ltd. (TCDRI), the TDF (Tyre Derived Fuel) precalciner, and a coupled technology
combining deep self-denitration with precise SNCR. The project has also successfully applied the first domestic 10,000 t/d fourth-generation
grate cooler with a middle roller crusher, filling the technological gap for domestically produced coolers of this specification. After the
Sinoma Environment operated an annual production capacity of transformation, the main technical indicators of the production line have reached internationally advanced levels. The standard coal
consumption for clinker has been reduced by approximately 15 kg/t.cl, saving 43,000 tons of standard coal annually. This has led to a
reduction of 108,000 tons in carbon dioxide emissions and a significant decrease in the concentration of pollutants such as nitrogen oxides.
This project has become a model for green technological transformation in the cement industry and was awarded the First Prize in the
National Outstanding Engineering Survey and Design Awards.
Addressing Climate Change
In response to the short-term, medium-term and long-term impacts of climate change, we have formulated targeted response
plans and measures to avoid and adapt to the adverse effects brought about by climate change, and to seize the opportunities
presented by it.
Sinoma International actively implements the national "14th Five-Year Plan," the goals of "Carbon peaking by 2030 and carbon neutrality by
Management System and following the framework recommended by the Task Force on Climate-related Financial Disclosures (TCFD), it Risk Type Climate Potential Impact on the Company Timeframe Response Measures
proactively identifies operational risks potentially brought about by climate change and vigorously pursues green innovation and R&D. Change-
Through these efforts, the Company provides professional support to help the industry address the impacts of climate risks and contributes Related Risks
to society's low-carbon transition.
Transition Risks
Policy and Stricter Failure to standardize information disclosure Always keep abreast of the
Climate Change Management
•
Legislation regulatory may result in heightened compliance penalties Mid-term latest relevant laws,
compliance imposed by governmental or regulatory regulations, supervision
requirements authorities. requirements and national
goals of the country and the
Sinoma International has formulated and implemented the requirements of the Company's Rules for the Implementation of the Strategy, operation location. Develop
Investment and ESG Committee of the Board of Directors, thereby defining the supervision and management responsibilities for climate- corresponding plans and
related matters. The Strategy, Investment and ESG Committee has overall responsibility for the Company's climate change-related affairs. measures based on the newly
This includes identifying climate-related risks and opportunities, reviewing the Company's sustainable development goals, and monitoring
introduced or updated
requirements and goals.
the implementation of objectives and strategies. The Committee reviews climate change-related matters annually and reports its findings to
the Board of Directors. Market Industry Pressured by the global trend toward carbon Mid-term • Track industry trends, analyze
transformation reduction, customers in the cement industry the advantages and
The Ecological and Environmental Protection Leading Group, chaired by the Company's Chairman and President, has full responsibility for trends are facing both transformational pressures and disadvantages of emerging
the Company's ecological civilization initiatives. It organizes the implementation of all tasks related to carbon peaking and carbon neutrality, restrictive policies , which is forcing the technologies introduced by
maintaining constant attention to the risks and opportunities presented by climate change throughout the processes of strategy Company to accelerate R&D in new low-carbon new market entrants, and
formulation, corporate development and project execution. Under the Company's leadership, affiliated enterprises have established their technologies. assess substitution risks to
own leading groups to address climate change issues through cross-disciplinary collaboration. existing products and
Emerging low- New market entrants intensify technological Mid-term technologies. Implement
Climate Response Strategy
carbon competition, increasing competitive pressure environmental technologies,
technologies on the Company. including waste heat recovery
Shortage of • Water scarcity leads to difficulties in water Mid-term power generation,
raw materials sourcing and increases corporate water comprehensive energy-saving
Sinoma International integrates climate change as a key topic into its sustainable development strategy, integrating climate-related and energy costs. and consumption-reduction
considerations into all aspects of the Company's decision-making, production, operations and daily management. This integration aims to retrofits, and the adoption of
Rising fuel prices lead to increased project
clean energy sources.
•
contribute to mitigating global warming and to support the timely achievement of the goals of peaking CO2 emissions before 2030 and
costs and reduced profitability.
achieving carbon neutrality before 2060. The impact of climate change on the Company covers multiple dimensions, including the evolution
of policies and regulations, the application of emerging technologies and structural shifts in market demand. Based on the potential impact Technology Increasingly The Company needs to increase investment in Short-term • Accelerate the development
and likelihood of occurrence, the Company classifies climate risks through a classification system. Concurrently, it formulates precisely stringent clean technologies, leading to rising operating of green factories and green
environmental costs. mines, and enhance R&D and
targeted control measures to ensure the relevance and effectiveness of its risk response.
standards application of green and
In the climate risk matrix, different-colored squares represent different levels
A Physical risks
of climate risks, and different control methods are adopted for different
levels of climate risks: Acute Extreme Strong winds, high temperatures, extreme cold Long-term • Conduct comprehensive
B C weather events and geological subsidence all affect the project analysis of typical cases in
Degree of impact
D F schedule, construction safety, and the responding to extreme
G H For red zones：
develop contingency plans.
Ensure avoiding and mitigating risks and prioritize the
implementation of all preventive measures. Chronic Increasing • Increased safety hazards in the employee Long-term • Continuously monitor
frequency of working environment, necessitating greater relevant climate change
For orange zones： heatwaves and investment in employee health and safety. trends and adjust work
cold spells Declining stability of energy supply arrangements promptly to
Rigorously control all risks and develop supplementary
•
necessitates optimization of the energy mitigate occupational safety
control measures. hazards.
Possibility
structure.
A: Stricter regulatory compliance E: Shortage of raw materials and energy For green zones： • Mismatch between vegetation
requirements F:Increasingly stringent environmental selection/maintenance for mines and local
B:Industry transformation trends standards Maintain close monitoring without introducing additional climate conditions in mining areas
C: Emerging low-carbon technologies G:Extreme weather events
control measures. increases operational costs.
D: Price fluctuations of the carbon market H: Increasing frequency of heatwaves
and cold spells
Climate Change-Related Opportunities
Accelerate the transformation of the energy structure for production and daily life
Opportunity Climate Change-Related Potential Impact on the Company Timeframe
Type Opportunities Actively promote the application of oil-to-electricity conversion technology, actively encourage and
support qualified units to strengthen the construction of photovoltaic power generation and wind
Products and Innovation and technology R&D Respond to market demand by developing renewable Mid-term power, and continuously improve the energy structure and enhance energy utilization efficiency.
services energy, carbon capture and other technologies to enhance Proactively explore energy storage technologies to address the intermittency of renewable energy and
corporate adaptability and competitiveness ensure the stability of energy supply.
Increase low-emission goods and Provide low-carbon products or services to the market to Mid-term
services increase revenue
Energy source Adopt low-emission or renewable Reduce operating costs. Long-term Improve the energy conservation and emission reduction incentive mechanism
energy Leveraging green service initiatives to increase operational
income Establish and improve the incentive mechanism for energy conservation and emission reduction, and
give commendation and rewards to the departments and individuals who have made outstanding
contributions in energy conservation and emission reduction efforts, so as to stimulate the
enthusiasm and initiative of employees. Additionally, strengthen the evaluation and supervision of the
implementation effects of energy conservation and emission reduction measures to ensure the
effective implementation of all measures, and promptly rectify any non-compliant situations.
Increase investment in technological research and development to enhance the carbon-
reduction benefits of the industry
Further strengthen cooperation with universities and research institutions to develop and
Dual Carbon Action Plan manufacture low-carbon equipment, promote the application of low-carbon and ultra-low emission
technologies in cement production processes, develop carbon capture and utilization technologies,
focus on breakthroughs in energy-saving and carbon-reduction technologies in three domains:
In accordance with the "Guidance on Promoting High-Quality Development of Central Enterprises and Advancing Carbon Peak and
"alternative fuels," "clay calcination," and "oxy-fuel combustion," build green factories, and provide
Carbon Neutrality Work" of the State-owned Assets Supervision and Administration Commission (SASAC) and the "Carbon Peak and
global clients with high-quality green and low-carbon engineering services to accelerate their
Carbon Neutrality Implementation Plan" of China National Building Material Co., Ltd., the Company has formulated the Carbon
decarbonization process.
Peak and Carbon Neutrality Implementation Plan of Sinoma International Engineering Co., Ltd. This document defines the timeline
and roadmap for achieving carbon peak and carbon neutrality, playing a leading and exemplary role in fulfilling national and group-
level dual carbon goals.
Strengthen policy research and international cooperation
Closely monitor changes in domestic and international policies and regulations, especially policy
dynamics such as the Carbon Border Adjustment Mechanism (CBAM) in developed countries and
Establish and improve the carbon management system regions like the European Union (EU). Enhance research and interpretation of policies, prepare
Enhance data statistics on energy consumption and carbon emissions, actively participate in low- response strategies in advance, reasonably adjust corporate development strategies and production
carbon product certification, and improve the transparency of the Company's product carbon models, and reduce the impact of policy risks on the enterprise. Actively participate in international
footprint assessment. cooperation projects, strengthen technical exchanges and cooperation with international peers,
introduce advanced low-carbon technologies and management experience, and promote
international development.
Promote the coordinated development of the industrial chain
Accelerate the electrification of mining equipment and facilities
Strengthen communication and collaboration with upstream and downstream enterprises to jointly
Adhere to the strategies of large-scale, specialized, new energy and intelligent equipment, and orderly build a green and low-carbon industrial chain. In the raw material procurement process, prioritize
promote the optimization and efficient utilization of energy. Actively promote the electrification of environmentally friendly and low-carbon suppliers. In the product sales process, guide customers to
new energy mining vehicles and non-road mobile machinery, and conduct cost-benefit and carbon- adopt low-carbon usage and maintenance methods. Through industrial chain collaboration, we
reduction analyses for the use of new energy vehicles. achieve resource sharing and complementary advantages, jointly promoting the green development
of the entire industry.
Climate Risk Management 2025 Targets Completion Future goals
Reduce the Company's carbon emission in Scope 1 Achieved Scope 1 and Scope 2 carbon emission intensity to
Sinoma International attaches great importance to climate risk management. Through the following processes, it conducts the and Scope 2 by 2%; decrease energy consumption continue declining
identification and assessment of climate change-related risks and opportunities, providing references for the Company's strategic per CNY 10,000 revenue by 2%.
planning and business development.
and newly invested production/operation projects
have extreme weather contingency plans.
The proportion of R&D investment in green and low- Achieved R&D investment in green and low-carbon technologies
Establish a risk database incorporating climate risks and opportunities based on business/product characteristics, carbon technologies to output value reaches 3.66%. as a percentage of output value to exceed 3.7%
identifying climate change impacts on corporate finance, production, assets, the supply chain and personnel.
Complete the Major Risk Assessment Results Form to identify and evaluate climate-related risks based on impact and
Improving People's
Livelihood and Well-being
likelihood, analyzing their risk levels.
Develop a risk heatmap using impact severity and likelihood as axes based on assessment results, defining
corresponding control measures for different coordinate zones. Sinoma International establishes a global vision, demonstrates the responsibility of a central state-owned enterprise, gives back to
society through concrete actions, and engages in public welfare and charitable activities, actively supports rural revitalization,
continuously provides overseas assistance, and contributes to building a community with a shared future for mankind.
Fill out the Major Risk Control Form, clearly define the main and auxiliary responsible departments for major risks,
formulate risk management strategies and solutions, and submit them to the responsible person for approval.
Enhancing Economic Contributions
While pursuing its own stable operation and development, Sinoma International remains committed to giving back to society by
continuously improving investment efficiency, consolidating cost-competitive advantages, enhancing overall economic benefits,
Climate-related metrics and targets and striving to achieve a balance between economic growth and social responsibility.
The Company strictly complies with laws and regulations in all countries where it operates and actively fulfills tax obligations.
Furthermore, in accordance with the tax policies issued by the Ministry of Finance of the People's Republic of China and the State
Taxation Administration, the Company pledges to conduct transfer pricing based on the principle of fair transactions, refraining
Long-term target from transferring the created value to low-tax jurisdictions. It also commits not to use confidential jurisdictions or so-called "tax
havens" for tax avoidance.
By 2030
The Company will be able to provide clients with In 2025
"zero-emission mining and zero-emission cement"
solutions
The Company paid CNY
Note: "Zero-emission" refers to zero purchased electricity, zero fossil fuels, zero primary resources, zero carbon emissions and zero waste its host countries and regions.
discharge.
Commitment to Public Welfare and Charity
Sinoma International attaches great high importance to reputation and operational risk management in public welfare activities,
establishing a systematic, full-process risk prevention and control mechanism. Based on prudent assessments of the political and
social environment of the countries and regions where its projects are located, the Company proactively identifies potential
Sinoma International actively participates in social welfare initiatives, contributes to the Group's "Shanjian Charity" fund, external risks. When organizing employee participation in volunteer activities, the Company always prioritizes personnel safety,
encourages employee involvement in volunteer activities, and regularly carries out charitable donations, disaster relief, emergency formulating and strictly implementing safety plans. Regarding the critical steps in the donation process, a dedicated supervision
assistance and project support, giving back to society through tangible actions. mechanism has been established to ensure that the fund flow is transparent, compliant and traceable. Through multi-layered
safeguards and focused controls, we are committed to achieving secure, transparent and efficient charitable activities, continuously
upholding the Company's responsible corporate image.
Case: Active participation in earthquake relief
to fulfill social responsibility In 2025
In March 2025, a 7.9-magnitude earthquake struck Myanmar, causing significant casualties and property damage. The Myanmar
subsidiary of Sinoma Handan immediately organized engineering machinery vehicles to assist rescue operations and donated relief
supplies including drinking water and food to the Yangon Disaster Management Department, helping the people of Myanmar
overcome the crisis and demonstrating corporate responsibility and commitment.
The Company has donated Participating in or supporting
CNY 5.0832 million 10 activities protecting the rights of women,
to the "Shanjian Charity" Fund and various children or persons with disabilities
social organizations
With Contributing
Handan Sinoma Employees Assisting Rescue Efforts in Myanmar
Boosting Rural Revitalization Case: "Shanjian" colorful classroom: "Tiny Light"
illuminates childhood
Sinoma International conscientiously implements the national Implementation Measures for the Rural Revitalization Responsibility The Youth League Committee of Sinoma International actively responded to the Group's call by organizing 10 young volunteers
System, fully complies with the Group's work requirements for contributing to rural revitalization, and has established a dedicated from its headquarters, Chengdu Design & Research Institute of Building Materials Industry Co., Ltd., and Sinoma Mining
task force for rural revitalization assistance. Focusing on key areas such as "rural revitalization, industrial development, project Construction Co., Ltd., to carry out the "Shanjian" Colorful Classroom activity at Hongguang School in Yongshan County, Yunnan
construction, social welfare, and consumption-driven assistance," the Company supports its paired assistance county, Yongshan Province. The volunteer team, focusing on the growth needs of left-behind children and leveraging the Company's characteristics,
County in Yunnan Province, in consolidating and expanding the achievements of poverty alleviation while effectively linking them meticulously designed a series of courses covering areas such as growth guidance, engineering science popularization, intangible
with rural revitalization. In doing so, it earnestly fulfills its social responsibility as a central state-owned enterprise. cultural heritage preservation, safety protection and scientific enlightenment.
In the aspect of growth guidance In the aspect of intangible cultural heritage preservation
By 2025 The team carried out the "Tiny Light Project" for two Children experienced the charming craftsmanship of traditional
consecutive years, taking the first ID photos and growth skills through hands-on activities such as sugar painting, ancient
record photos for the children. This initiative established tie-dyeing, and bamboo weaving.
a precious visual archive for left-behind children and
Total investment in rural revitalization initiatives has reached uses photography to bridge the distance with their
CNY 5.013 million faraway families.
In the aspect of engineering science outreach In the aspect of scientific enlightenment
Volunteers used the example of the El-Ferdan Double- The volunteers conducted safety education covering
Wing Swing Railway Bridge over the Suez Canal in Egypt, transportation, food and psychology through interactive games
Sinoma International's assistance record a project constructed by the Company, to explain the and experiments. They guided the children in assembling airplane
construction story and technical principles behind this models and completing small scientific experiments like "invisible
world-class megaproject, vividly conveying the spirit of ink," planting seeds of exploration and innovation in their young
craftsmanship and Chinese ingenuity. minds.
Relying on the "Hebao Dan" platform, the Company conducted targeted procurement of specialty agricultural products
from Yongshan County, Yunnan Province, with a total procurement value worthing CNY 194,000, thereby supporting Through diverse and enriching courses, along with warm and attentive companionship, this activity brought knowledge, broadened
local farmers' income growth through market-oriented means. horizons and delivered care to children in the mountainous region, forging deep bonds of friendship with them.
The Equipment Group continues its paired assistance to Caiying Village, Funan County, Anhui Province, by dispatching
a First Secretary to the village as a resident liaison officer. Through its paired assistance program in Caiying Village,
Funan County, Anhui Province, the Company procured agricultural products worth CNY 210,000 and distributed
educational grants totaling CNY 13,000 to 13 local students who were admitted to universities.
The Company continuously carried out the "Golden Autumn Financial Aid" and "Fulfilling Tiny Wishes" activities. In 2024
and 2025, it provided financial support to 31 newly admitted university students, fulfilled the "tiny wishes" of 56
students in need, and delivered caring gifts to 60 left-behind children.
In collaboration with universities, the Company launched the "Xingzhi School" initiative to provide educational care
services.
Sinoma International Engages in "Shanjian" Colorful Classroom Initiative in Yongshan County
Advancing overseas responsibility fulfillment Case: Cultivating in the desert to bridge cultural divides,
implementing green practices to deepen local bonds
Sinoma International continuously promotes regional coordinated development, implements the Belt and Road Initiative, and In fulfillment of its corporate social responsibility, South Africa Regional Company of CBMI Construction launched a public welfare
adheres to the development principle of "extensive consultation, joint contribution and shared benefits." The Company remains donation initiative in the communities surrounding the SAE Project. Following preliminary research that revealed a shortage of
committed to "contributing to local economic development, cooperating amicably with local enterprises and serving the local teaching and sports resources in local schools, the company strategically provided schoolbags, stationery, footballs, skipping
people," fostering the global integration of technology, talent and culture. It supports the economic and social development of ropes, and other supplies to tangibly improve students' conditions for learning and physical exercise. This initiative not only
project locations and works jointly to build a community with a shared future for mankind. delivered care and warmth to children in the community but also deepened the amicable relationship between the enterprise and
the community. Looking ahead, the company will continue to promote the high-quality development of its projects and actively
explore diverse forms of public welfare to achieve mutually beneficial, win-win development with the local community.
Wu Shuang of CBMI Construction was honored with the title of
"Exemplar Individual in Building the China-Kenya
Community with a Shared Future"
by the Chinese Embassy in Kenya
Deepening engagement with the community
Sinoma International regularly communicates with local communities in the areas where it operates, gaining an in-depth
understanding of their needs. By precisely implementing targeted measures to address local development challenges, the Company
helps improve the quality of life for community residents. The overseas subsidiary of CDI actively fostered positive interactions with
local officials and residents by establishing "Company Open Day" events. Additionally, it formulated relevant policies including:
prioritizing local employment, providing skills training and improving community employment rates as well as collaborating with
local suppliers to reduce logistics costs while supporting the local economy, thereby effectively enhancing in-depth cooperation
with local communities.
Public Welfare Donation Initiative for Communities of the SAE Project
Promoting cultural integration Fostering a fertile environment for talents
Sinoma International fully supports local cultural development and is dedicated to promoting Chinese culture and facilitating While providing high-quality engineering and technical services to its clients, Sinoma International places great emphasis on the
international cultural exchanges. For years, CDI has consistently respected local customs and dietary culture, organically integrating development of human resources in its project locations. It is committed to creating employment opportunities in these areas and
corporate values with local traditions. During major traditional local festivals such as Eid al-Adha and Eid al-Fitr, the Company promoting the long-term local economic development.
carried out employee care activities for local employees and set up Muslim canteens in all project camps, thereby strengthening
Egyptian employees' sense of belonging and identification with the Company.
Case: Advancing technological and cultural integration to co-build a
talent ecosystem for the Belt and Road Initiative
Case: Exchanging traditional culture, weaving
bonds of friendship The 6th International Training Course on Large-Scale Modern Cement Production Technology, organized by the Equipment Group,
was successfully concluded in Tianjin. A total of 19 trainees from six countries, including Pakistan and Myanmar, completed the
In 2025, CDI's Egypt Branch and Saudi Arabia Branch hosted the "Resource Efficiency Day" open event themed "Innovation- program. The international training program had been successfully held for five sessions since 2016. It aims to promote scientific,
Driven · Green Empowerment." Over 200 local employees and family members attended the event. Through corporate videos, on- technological and cultural exchanges along the Belt and Road Initiative, and to impart advanced and applicable technologies in the
site presentations, and facility tours, they gained an in-depth understanding of the Company's practical applications and innovative cement industry. Through continuous technical transmission and experience sharing, it strives to deepen the integration of
achievements in intelligent manufacturing and environmental protection. They also gained a profound appreciation for the unique technology, talent and culture in the global cement industry, promote the improvement of technological levels and the cultivation
charm of Chinese culture through participation in activities featuring traditional Chinese cultural elements and engaging in of talent in cement industries of developing countries, and effectively support the sustainable development of the local economies
interactive games. of project sites. It contributes professional expertise to the building of a community with a shared future for mankind.
Case: Celebrating festivals together to promote The Company encourages local employment, addressing regional job needs
cultural integration
The Nigerian subsidiary of Sinoma (Suzhou) Construction Co., Ltd. specially organized a cultural experience session at the "Chinese
Workshop," celebrating the festival together through the unique approach of cultural integration. Under the guidance of Using more than The proportion of local overseas employees
instructors, Chinese and international employees crafted traditional sachets. The ingenious combination of silk fabric, mugwort
(including subcontractors) across all tiers exceeds
spices, and Chinese knotting techniques allowed participants to immerse themselves in the charm of Chinese culture. These
handcrafted sachets, brimming with cultural characteristics, became heartfelt tokens of cross-cultural exchange. Local employees
local workers employed annually
expressed that sachet-making was not only an artistic creation but also helped them understand the wisdom of Chinese people
conveying blessings through every stitch.
Case: Implementing local capacity building to establish talent
support for overseas development
The overseas subsidiaries of CDI continue to deepen their localized operations by actively organizing and conducting a series of
training programs focused on enhancing job skills and providing pre-job training for new employees. In 2025, these initiatives
covered approximately 200 local employees across various projects and departments. The training system encompasses corporate
culture, safety production, legal regulations and occupational health. Through flexible and diverse formats, it effectively improves
local employees' professional skills and comprehensive competencies. This initiative not only creates clear career progression
paths for local staff but also strengthens talent stability and sustainable development capabilities for the Company's overseas
projects, achieving mutually beneficial development for both the enterprise and local communities.
Outlook
Time flows ceaselessly like a river, and our journey unfolds with grandeur like a rainbow.
the Materials Industry." Standing at this new starting point, we embrace our renewed mission with proactive actions, making the
"1324" Sustainable Development Strategy a core practice integrated into our core operations. In the practice of serving the national
strategy and global sustainability, we will continue to write a new chapter of high-quality development.
Guided by the principle of "One Core, Three Values, Two Main Lines, and Four Goals," we integrate the essence of sustainable
development into the very fabric of our corporate identity. Internally, we continuously strengthen the foundation for sustainable
development. With modernized governance as our cornerstone, we ensure compliance and integrity become conscious behaviors
in our actions. We foster an environment where employee growth resonates in harmony with corporate development, and we
integrate clean production and green operations throughout every project and every process. Externally, we are fully committed to
serving global sustainable development. We empower our clients' transformation through green and low-carbon technologies and
digital intelligent solutions. We unite our partners by fostering a transparent and sustainable supply chain ecosystem. We
contribute our professional expertise to the fight against climate change and fulfill our responsibilities as a central enterprise in the
joint pursuit of the Belt and Road Initiative.
Our initial aspiration remains firm, and our mission is always on our shoulders. On the new canvas of 2026, we will steadfastly
uphold our corporate mission of "Promoting green and intelligent development and serve a better world." On the journey to
become a world-class service provider, we will progress steadily and surely, contributing even greater wisdom and strength to the
green and sustainable development of the global cement industry.
ESG key performance Key performance indicators Unit 2025
Comprehensive utilization rate of self-produced non-hazardous solid waste % 70.98
Environmental data
Total amount of incoming solid waste consumption and disposal tons 1,074,617.18
Industrial waste tons 980,500.00
Total amount of
incoming solid Household waste tons 0
Key performance indicators Unit 2025
waste
consumption and Hazardous waste tons 26,147.45
Total emission of nitrogen oxides (NOx) tons 0.24
disposal by type2
Other3 tons 94,117.18
Total emission of sulphur dioxide (SO2) tons 0.06
Total volume of timber purchased by the company 10,000 m? 1.64
Emissions of industrial particulate matter tons 3.76
Timber
Among them: amount of certified 10,000 m? 0.14
Total emission of Volatile Organic Compounds (VOCs) tons 39.23 certification
Among them: amount of non-certified 10,000 m? 1.51
Total greenhouse gas emissions1 tons of CO2e 770,300.66
Timber 10,000 m? 2.85
Direct greenhouse gas emissions (Scope 1) tons of CO2e 611,425.03
The proportion of recycled wood4 % 9.83
Indirect greenhouse gas emissions (Scope 2) tons of CO2e 158,875.63
Steel 10,000 tons 40.47
Greenhouse gas emissions from engineering services tons of CO2e 91,489.37
Greenhouse gas emissions from equipment manufacturing operations tons of CO2e 38,603.52 The proportion of recycled steel5 % 3.59
Greenhouse gas emissions from operation and maintenance services tons of CO2e 625,762.36 Concrete 10,000 m? 150.88
Total amount of
materials used in
Greenhouse gas emissions from other operations tons of CO2e 14,445.40 The proportion of recycled concrete % 6.50
the construction
process
Greenhouse gas emission intensity tons of CO2e/million yuan (revenue) 15.53 Aggregate 10,000 m? 51.74
Amount of self-produced hazardous solid waste tons 5,411.00 The proportion of recycled aggregate % 7.40
Intensity of self-produced hazardous solid waste tons of CO2e/million yuan (revenue) 0.11 Asphalt 10,000 tons 1.54
Amount of self-produced non-hazardous solid waste tons 4,903.99 The proportion of recycled asphalt % 26.04
Intensity of self-produced non-hazardous solid waste tons of CO2e/million yuan (revenue) 0.10 Cement 10,000 tons 46.89
Comprehensive utilization amount of self-produced non-hazardous solid
tons 3,483.91
waste
Among them: comprehensive utilization amount in previous year tons 3.00
cement kilns.
possess calorific value (combustibility), falling outside the aforementioned three waste categories. These fuels are widely used in cement kilns and
thermal power plants (including biomass power plants) to replace fossil fuels (coal), thereby reducing carbon emissions and fossil energy
consumption.
are no longer included in the statistics. The calculation of greenhouse gas data, depending on the industry of the company's subsidiaries, refers to a timber reused during construction processes.
series of guidelines such as the Guidelines for GHG Emission Accounting and Reporting Methods for Industrial Enterprises in Other Sectors issued by the
National Development and Reform Commission, as well as the relevant conversion factors provided in the Notice on Completing GHG Emission 5 "Recycled steel" refers to reused steel structures fabricated on-site, scrap materials from non-standard equipment and components, steel packaging
Reporting and Verification for Enterprises in Certain Key Industries (2023-2025). All measurements are expressed in tons of CO₂ equivalent. materials from equipment transportation, and recycled steel scaffolding and formwork used during construction.
Key performance indicators Unit 2025 Key performance indicators Unit 2025
The proportion of recycled cement6 % 9.43 Consumption of non-renewable materials tons 189,085.86
Total amount of
materials used in
Other materials 10,000 tons 5.20 Material consumption intensity tons/million yuan (revenue) 3.85
the construction
process
The proportion of recycled other materials % 9.89 Amount of energy expenditures CNY 10,000 105,379.34
Direct energy consumption7 MW·h 2,302,342.81 Water withdrawal10 tons 1,471,924.79
Natural gas consumption MW·h 26,250.36 Tap water tons 938,058.49
Petrol consumption MW·h 20,393.72 Groundwater tons 142,313.10
Diesel consumption MW·h 2,205,371.21 Surface water tons 387,837.00
Other energy consumption8 MW·h 50,327.52 Other tons 3,716.20
Indirect energy consumption MW·h 279,227.97 Water withdrawal intensity tons/million yuan (revenue) 29.68
Purchased heat consumption MW·h 1,708.08 Total amount of water discharged tons 567,402.18
Electricity consumption MW·h 277,519.89 Total water consumption tons 904,522.61
Purchased electricity consumption MW·h 276,959.57 Among them: total circulating water tons 219,800.00
Purchased conventional grid electricity consumption MW·h 263,291.11 Circulating water utilization rate % 24.30
Purchased green electricity consumption MW·h 13,668.47 Amount of environmental investment CNY 10,000 4,941.34
Self-generated electricity consumption MW·h 560.32 Revenue from products with inherent
CNY 10,000 119,920.75
green attributes
Self-generated wind electricity consumption MW·h 16.40
Among them: Revenue from Products
Equivalent to greenhouse gas emission reductions tons of CO2e 13.46 with various green certifications,
including but not limited to "China
Green product CNY 10,000 5,302.76
Photovoltaic power generation consumption MW·h 543.92 Low Carbon Product Certification,"
"Green Building Material Product
Equivalent to greenhouse gas emission reductions tons of CO2e 446.56 Certification," etc.
Comprehensive energy consumption9 MW·h 2,581,570.79 Revenue from products that can
CNY 10,000 858,928.32
contribute to the greening of society
Comprehensive energy consumption intensity MW·h/million yuan (revenue) 52.15
materials.
the previous year's scope additionally included diesel and gasoline.
Key performance indicators Unit 2025 Social data
Number of national green factories owned unit 2
Key performance indicators Unit 2025
Number of provincial green factories owned unit 4
Total number of employees person 15,201
Number of national green factories constructed unit 9
Male employees person 12,024
Number of provincial green factories constructed unit 5
Male employees in STEM work person 6,918
Total number of employees
Number of green factories of other levels constructed unit 1 by gender
Female employees person 3,177
Number of national green mines constructed unit 48
Female employees in STEM work person 1,375
Number of provincial green mines constructed unit 144 Han employees person 13,230
Total number of employees
Number of green mines of other levels constructed unit 1 by ethnic group
Minority employees person 1,971
Number of buildings constructed/managed/owned by the Company unit 440 Senior management employees person 176
Number of green buildings constructed/managed/owned by the Company unit 12 Female employees person 12
Area of all manufacturing and operating units m2 2,447,441.28 Female employees in operational positions person 4
Male employees person 164
Area for which biodiversity risk assessments have been conducted m2 103,484.00
Male employees in operational positions person 98
Number of sites for all production operations (i.e., factories, mines, project sites, etc.) unit 149
Minority employees person 5
Area for which biodiversity risk assessments have been conducted unit 6
Total number of employees
Middle-level employees person 1,535
by job level
Number of ISO14001 certifications unit 44
Female employees person 268
Number of ISO50001 certifications unit 7
Female employees in operational positions person 50
Number of stock of enterprises with climate risk
response/adaptation plans (e.g. extreme weather contingency unit 18 Male employees person 1,267
plans) in place
Male employees in operational positions person 972
Climate change Annual financial impact of risks CNY 10,000 214.08
Minority employees person 57
risks and
opportunities Annual expenditures arising from risk response measures CNY 10,000 963.49
General employees person 13,491
Annual costs of capturing climate change opportunities CNY 10,000 20,942.16 Long-term employees person 13,387
Total number of employees
by type of employment
Annual revenue from climate change opportunities CNY 10,000 120,157.15 Short-term employees person 1,814
Key performance indicators Unit 2025 Key performance indicators Unit 2025
Under 30 years old person 3,288 Mainland China % 5.18
Total number of employees Voluntary turnover rate by
by age region
Over 50 years old person 3,240 Overseas % 0.51
Mainland China person 12,077 Number of newly hired employees person 761
Total number of employees Male person 629
Region of Hong Kong, Macao and Taiwan person 0 Number of newly hired
by region
employees by gender
Overseas person 3,124 Female person 132
Male % 5.02 Under 30 years old person 578
Employee turnover rate by
Number of newly hired
gender 30 to 50 years old person 178
Female % 4.34 employees by age
Over 50 years old person 5
Under 30 years old % 6.75
Employee turnover rate by Senior employees person 2
age
Number of newly hired
Middle-level employees person 5
Over 50 years old % 8.12 employees by job lever
General employees person 754
Mainland China % 6.00
Employee turnover rate by Han person 744
Region of Hong Kong, Macao and Taiwan % 0 Number of newly hired
region employees by ethnic group
Minority person 17
Overseas % 0.51
Number of internal transfers or internal applications person 1,159
Senior employees % 3.41
Employee turnover rate by Rate of internal transfers or internal applications % 60.36
Middle-level employees % 1.69
job level
Received complaints on violations of employees' legitimate rights and interests case 0
General employees % 5.26
Received complaints on discrimination against applicants and employees case 0
Senior employees % 2.27
Number of visits to support special employees and assist employees in difficulty person-times 797
Voluntary turnover rate by
Middle-level employees % 1.30
job level
Number of employees who were helped to send their children in difficulty to school or who
person-times 15
General employees % 4.58 were rewarded for sending their children to school
Male % 4.22 Number of visits to help critically ill employees person-times 79
Voluntary turnover rate by
gender
Female % 4.22 Total expenditure on condolences to special employees and assistance to employees in
CNY 10.000 52.96
difficulty
Under 30 years old % 5.72
Total expenditure on helping children of employees in difficulty to attend school or
Voluntary turnover rate by CNY 10.000 0.43
age
Over 50 years old % 7.78 Total expenditure on helping critically ill employees CNY 10.000 26.30
Key performance indicators Unit 2025 Key performance indicators Unit 2025
Number of employee activities were organized and participated in times 598 Lost Time Injury Frequency Rate (LTIFR) for millions of hours of employees - 0
Number of participation in various events organized by relevant industry associations (at
times 48 Number of working days lost due to work-related injuries day 0
provincial level or above)
Number of employees participated in various activities person-times 38,946 Lost Time Injury Frequency Rate (LTIFR) for millions of hours of contractors employees - 0
Total number of employees participated in satisfaction survey person 8,866
Person-times of employees participated in occupational health and safety training person-times 607,143
Percentage of total number of employees % 58.33
Number of safety, environmental and health inspections conducted times 6,492
Male % 98.52
Percentage of satification by
gender Number of hidden dangers investigation unit 62,702
Female % 98.20
Under 30 years old % 98.61 Among them: number of hidden dangers for which rectification has been completed unit 62,680
Percentage of satification by age 30 to 50 years old % 98.83
Rectification rate of hidden danger investigation % 99.96
Over 50 years old % 98.27
Number of emergency drills, fire drills and other exercises conducted person-times 50,861
Han % 98.23
Percentage of satification by
ethnic group Amount of safety and health related expenditure CNY 10,000 56,620.23
Minority % 98.28
Senior employees % 100.00 Number of factories certified to ISO 45001 occupational health and safety management
unit 44
system
Percentage of satification by job
Middle-level employees % 98.82
level
Percentage of employees Male % 96.34
General employees % 98.33
participated in all types of training
by age Female % 81.33
Number of employees for whom the Group contributes an enterprise annuity person 9,430
Number of employees for whom the Group pays supplementary medical insurance and
person 10,847 Under 30 years old % 93.52
other types of insurance other than five insurances
Percentage of employees
Number of employees joining the labor union person 13,341 participated in all types of training 30 to 50 years old % 95.84
by age
Percentage of employees joining the labor union % 87.76
Over 50 years old % 85.83
Number of employees signing collective agreements person 6,940
Percentage of employees Han % 94.88
Percentage of employees signing collective agreements % 45.65 participated in all types of training
by ethnic group Minority % 81.94
Number of employee representatives person 1,172
Percentage of employee representatives % 7.71 Senior employees % 98.30
Percentage of employees
Work-related fatalities person 0
participated in all types of training Middle-level employees % 98.96
by job level
Death rate per thousand ‰ 0
General employees % 92.48
Number of zero-fatality projects % 100
Key performance indicators Unit 2025 Key performance indicators Unit 2025
Senior % 76.70 Total unit 9,204
Percentage of employees participated
in safety and environmental training Middle-level % 59.09 Mainland China unit 9,095
Number of suppliers who have established
by level
long-term cooperation with the Company
General % 62.40 Region of Hong Kong, Macao and Taiwan unit 24
Senior % 65.34 Overseas unit 85
Percentage of employees participated
The costs of products or service procured from suppliers with whom the Company has
in skills-based business training by Middle-level % 68.47 CNY 10,000 3,219,157.93
established long-term cooperation
level
General % 77.32
Total unit 7,428
Senior % 100.00
Number of suppliers that have been Mainland China unit 7,321
Percentage of employees participated
screened and controlled for environmental
in management training (including Middle-level % 89.71
and social risks by the Company Region of Hong Kong, Macao and Taiwan unit 23
compliance training) by level
General % 50.19 Overseas unit 84
Total hours of training by person-time hour 1,462,621.60 The costs of suppliers screened and controlled for environmental and social risks by the
CNY 10,000 2,690,141.26
Company
Total hours of safety and environmental training hour 550,453.64
Total unit 14
Among the suppliers that have been
Total hours of skills-based business training hour 652,928.62
screened for environmental and social risks
Number of suppliers with whom corrective
and controlled for long-term cooperation
Total hours of management training hour 259,239.34 measures/improvement plans have been unit 0
by the Company, the number of suppliers
agreed upon
assessed to have significant negative
Male hour 102.46
impacts
Average hours of training by gender Number of suppliers excluded unit 14
Female hour 106.69
Number of suppliers participating in Total unit 3,413
Under 30 years old hour 102.56 supplier training and capacity
enhancement among suppliers that have Number of suppliers screened and
Average hours of training by age 30 to 50 years old hour 102.20 established long-term cooperation with the controlled for environmental and social unit 2,261
Company risks by the Company
Over 50 years old hour 107.07
Number of ESG training sessions for suppliers or ESG training exchange sessions with
times 800
suppliers
Han hour 104.59
Average hours of training by ethnic
group Number of suppliers certified by systems such as quality, occupational health and safety,
Minority hour 92.66 unit 7,562
environment or energy management
Senior hour 141.16
Total unit 2,856
Average hours of training by level Middle-level hour 104.32 Number of all suppliers not in long-term
Number of suppliers screened and
co-operation
controlled for environmental and social unit 2,410
General hour 102.58 risks by the Company
Training hours per capita (all types of training) hour 103.23 Percentage of products subject to recall for safety and health reasons % 0
Total training cost CNY 14,964,825 Litigation cases involving the safety and health of products and services case 0
Number of cases involving suspected child labor and forced labor case 0 Totaling complaints about products and services case 0
Key performance indicators Unit 2025 Key performance indicators Unit 2025
Number of complaints properly responded to and dealt with case 0 Number of cases in which employees violated the Group's code of conduct (Customer
case 0
privacy data)
Number of cases of suspected infringement of intellectual property rights by products and
case 0
services Number of cases in which employees violated the Group's code of conduct (Conflict of
case 0
interest)
Number of complaints due to disclosure of customer information case 0
Number of cases in which employees violated the Group's code of conduct (Money
Total number of clients unit 3,663 case 0
laundering or insider trading)
Number of clients participating in satisfaction surveys unit 2,831 Amount of taxes paid CNY 10,000 223,616.47
Number of clients whose survey results were satisfactory unit 2,796 Amount of public charity investment 24(including material donations) CNY 10,000 508.32
Percentage of clients whose survey results were satisfactory % 77.29
Donations to targeted support areas（Rural revitalization category） CNY 10,000 501.30
Percentage of customer satisfaction % 98.76
Other CNY 10,000 7.02
Number of annual patent applications case 428
Number of support projects unit 1
Number of invention patents case 279
Number of special scholarship programs established unit 1
Number of annual authorized patents case 330
Number of institutions involved in scholarships unit 6
Number of invention patents case 190
Total scholarships CNY 10,000 15
Cumulative number of valid patents case 3,159
Number of students receiving scholarships person 60
Number of invention patents case 1,065
Number of entrepreneurship training bases unit 9
Cumulative number of successful software copyright registrations case 952
Availability of internships for current students unit 56
R&D investment CNY million 1,815.59
Number of established volunteer organizations or groups unit 8
Percentage of R&D investment in operatin revenue % 3.66
Number of volunteers among employees person 1,737
Number of R&D staff person 3,687
Number of hours of volunteer activities hour 6,514
Number of standards prepared or revised under the auspices of and with the participation of unit 13
Amount of corporate support for volunteer activities CNY 10,000 2.37
Number of anti-corruption training sessions held and organized times 331
Number of activities involving or supporting the protection of the rights and interests of
times 10
Number of directors attending anti-commercial bribery and anti-corruption trainings person-times 437 women, children or persons with disabilities
Number of employees attending anti-commercial bribery and anti-corruption training
person-times 29,091
(excluding directors)
Coverage of directors in anti-corruption training % 100
Coverage of employees in anti-corruption training % 100
Number of cases in which employees violated the Group's code of conduct (Corruption or
case 0
bribery)
Number of cases in which employees violated the Group's code of conduct (Discrimination or
case 0
harassment)
Indicator indexes
Table of Content Sustainability Guidelines No. 14 for Reference Indicator Table of Content Sustainability Reporting Guidelines No. 14 for Reference Indicator
Reporting Standards Self-Regulation of System for the ESG Standards Self-Regulation of Listed System for the ESG
(GRI Standards) Listed Companies - Special Report of Listed (GRI Standards) Companies - Special Report of Listed
Sustainability Report Companies Controlled Sustainability Report Companies Controlled
(Trial) by Central Enterprises (Trial) by Central Enterprises
About this report GRI1-4, 2-1, 2-2, 2-3 1-6 G4.1.2
Enhancing Service 4-2-41,4-2-42,4-3-43, S2.1.2, S2.2.1-2.2.3, S2.3.1-
Leading GRI2-28, 417-1
Industrial Quality 4-3-44,4-3-47,4-3-48 2.3.4
Chairman's speech / / /
Progress and
Enhancing
About Sinoma International GRI2-1, 2-6 / / Overall Value
for Mutual Sustainable Supply GRI308-1, 308-2,414-1,
Benefit 4-3-44,4-3-45,4-3-46 E.5.4.5, S3.1.1, S3.2.1-3.2.3
Chain 414-2
GRI2-9, 2-14, 2-16, 1-9,2-11,2-12,2-18,
Sustainable development management G1.3.3, E.5.1.1, G1.2.2, G3.2.2
The 14th Five-Year Green and low-
GRI305-5 3-1-20,3-1-28 E3.2.2, E5.5.3, S4.4.1
Plan: A New carbon products
Special topic Chapter in Our / / /
Sustainable
Embracing
Development
the Mission of 2-11,2-12,2-14,2-15,
the Times and
Jointly Addressing Climate 2-16,2-17,2-18,2-19 E3.1.2, E.3.2.1-3.2.2, E.3.4.1,
Strengthening
G1.1.1-G1.1.2, G1.2.2, G3.1.1- GRI201-2, 305-5
Governance GRI2-9, 2-10, 2-12 5-1-51 Pursuing Change 3-1-20,3-1-21,3-1-22, E5.1.1, E5.3.1
Foundations Global
Development 3-1-23,3-1-27
Consolidating with
Compliance and G2.1.1-2.1.2, G2.2.1-2.2.2, Responsibility
Governance
Integrity in GRI2-27, 205-1, 205-2 5-2-54,5-2-55,5-2-56 G2.3.1-2.3.2, G5.1.1-5.1.3,
Foundations to
Operations G5.2.1-5.2.3 Improving People's GRI203-1, 203-2, 207-1,
Ensure Steady and S4.1.1, S4.2.1-4.2.2, S4.3.1-
Livelihood and Well- 4-1-38,4-1-39,4-1-40
Healthy 413-1 4.3.2, S4.4.2-4.4.4
being
Operations for GRI2-23, 2-25, 2-26, 2-30,
Development 201-3, 202-1, 202-2, 401-2,
Safeguarding S1.1.1, S1.1.3, S1.2.1-1.2.4,
Employee Rights 4-4-49,4-4-50 S1.3.1-S1.3.4, S1.4.1-1.4.3,
and Interests S1.5.1, S2.1.1
ESG key performance
E2.1.1-2.1.2, E2.2.1, E2.3.1- 305-4, 305-7, 401-1, 403-9, S.1.4.3, S1.5.3, S.2.3.2, S3.1.2,
Green and Clean GRI302-4, 302-5, 303-2, 2.3.5, E4.1.1, E5.2.3, E5.4.1, 404-1, 405-2, 418-1 S.4.1.1
Pursuing 3-2-32,3-2-33,
Production 304-2, 304-3 E5.4.2, E5.4.3, E5.4.4, E5.4.6, Appendix
Sustainability 5-1-52 E5.5.1, E5.6.1, E5.6.2
through Green and
Eco-Friendly Indicator indexes GRI1-3 6-57 /
Development Circular Economy GRI303-1, 306-1, 306-2,
Integration 306-3, 306-4, 306-5,
Feedback form / / /
Conclusion
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