Create Value Through Service, Enrich Life for All. Environmental, Social and Governance
S U S TA I N A B I L I T Y R E P O RT
( )Report
HNDI /300732
Create Value Through Service, Enrich Life for All.
Report Overview
Report Overview Preparation Basis
This is the third Environmental, Social and Governance (ESG) Report released by Henan Self-Regulatory Guidelines No.17 for Companies Listed on Shenzhen Stock Exchange-
ZhongGong Design & Research Group Co., Ltd. (hereinafter referred to as "the
Sustainable Development Report (Trial)
Company"). In accordance with the principles of objectivity, standardization,
transparency and comprehensiveness, the Report details the Company's concepts and Self-Regulatory Guidelines No.3 for Companies Listed on Shenzhen Stock Exchange-
practical performance in environmental protection, social responsibility and corporate Preparation of Sustainability Reports (2026 Revision)
governance for the year 2025.
China Enterprise Sustainability Reporting Guidelines (CASS-ESG 6.0)
Sustainability Reporting Standards (GRI Standards 2021) issued by the Global Reporting
Report Time Scope Initiative (GRI)
Sustainable Development Goals (SDGs)
January 1 to December 31, 2025 (hereinafter referred to as the "Report Period"). The
Report is released annually, consistent with the Company's fiscal year.
Data Description
Report Organizational Scope and Nomenclature Notes
The data used in this Report is sourced from the original data of the Company's actual
operations, public data from government departments, annual financial data, internal
The organizational scope of this Report covers Henan ZhongGong Design & Research relevant statistical statements, third-party questionnaires, etc.
Group Co., Ltd. and its subsidiaries, which is consistent with the scope of the annual The financial data in this Report is denominated in Renminbi. In case of any inconsistency
report. Unless the context otherwise requires, the following terms in this Report shall with the financial report, the financial report shall prevail.
have the following meanings:
Definition Explanation
Report Access
Company Name Abbreviation
Henan ZhongGong Design & Research Group Co., Ltd.
HNDI，the Group, we, the
Henan Transport Planning, Design & Company The electronic version of this Report is available on the website of Shenzhen Stock Exchange
Research Institute Co., Ltd. (former name) (www.szse.cn) and the website of CNINFO (www.cninfo.com.cn)
contents
contents
Focus on Innovation, Enhance Quality Service
Chairman's Message
Supply Chain Sustainability
Equal Treatment of Small and Medium-Sized Enterprises
Product and Service Quality and Safety Control
Data Privacy Protection
About us
Company Profile People-Oriented, Building a Talent-Strong Enterprise
Qualifications
Protection of Employees' Rights and Interests
Main Businesses and Products
Health and Safety Protection
Company Structure
Talent Cultivation Program
Market Footprint
Company Culture
Create Harmony Together and Enhance Social Well-being
Certificates
Major Events in 2025 Empowering Rural Development
Sustainable Development Governance Technology-Enabled Practices
Public Welfare Commitment for Long-Term Development
Sustainable Development Governance Structure
Jointly Building Dreams and Moving Forward Together
Sustainable Development Information Reporting Mechanism Win-Win Cooperation Between China and the World
Sustainable Development Goals
Stakeholder Engagement Strengthening Governance and Achieving Steady Development 79-88
Material Topic Management Standardized and Compliant Operations
Anti-Corruption Initiatives
Safeguarding Fair Competition
Party Building Leading by Example
Practicing Low-Carbon Development and Promoting Green Environmental Protection 25-42
Future Outlook
Addressing Climate Change 89-90
Advancing Emissions Management
Ecosystem Protection
Resource Recycling
Appendix 91-94
Green and Low-Carbon Design Indicator Index
Dual-carbon Strategy Services Key Performance Indicators
Feedback
Chairman's Message
Dear shareholders, partners, employees, and all friends from all walks of life,welcome to read HNDI's 2025 Environmental, Social, and
Governance (ESG) Report. On behalf of the Board of Directors, I would like to extend my sincere gratitude to all those who have cared for and This year, we adhered to the people-oriented approach and gathered the momentum to forge ahead.
supported the company's development over the years! We further implemented the talent-strengthening enterprise strategy, focused on precise talent introduction and training in fields such as
situation of slowing infrastructure investment and deepening industry changes, we have relied on the advantages of our " Three
optimized the talent echelon construction. We provided precise empowerment for employees through a sound education and training
Comprehensive and One Class A " qualifications, coordinated the collaborative development of businesses across six major industries
including transportation, urban construction, water conservancy, architecture, mining, and energy and electric power, as well as two major system, improved the salary incentive, performance distribution, professional title evaluation and practicing qualification management
fields of environment and safety (the "6+2" framework). With concerted efforts and pragmatic efforts, we have maintained a sound mechanisms, and promoted the digital upgrading of human resources. We formulated and promoted the "Employee Service Guarantee
momentum of steady progress. System Implementation Plan", built an online and offline diversified communication platform, coordinated to solve problems such as
employees' children's enrollment and optimized commuter bus routes; awarded college entrance examination rewards to employees'
This year, we consolidated the foundation of governance and built a solid bottom line for stable operations. children, condoled with sick and needy employees, and demonstrated the group's care. We organized the establishment of the "HNDI
The company attaches great importance to sustainable development management, renamed the Strategic Committee under the Board of Reading Club" and carried out 12 large-scale cultural and sports activities such as basketball and table tennis throughout the year to enrich
Directors as the Strategy and Sustainable Development Committee, established a sustainable development governance structure, and employees' spiritual and cultural life and enhance team cohesion and sense of belonging.
promoted the deep integration of sustainable development concepts into the company's strategy and the entire process of daily operations.
We accurately identified and strictly controlled 20 material issues, improved the information disclosure and reporting mechanism, ensured
the smooth flow of information at all levels and scientific and efficient decision-making, effectively safeguarded the legitimate rights and This year, we bravely assumed social responsibility and fulfilled our mission of mutual benefit and win-win results.
interests of all stakeholders, and built a solid institutional guarantee for the stable operation of the enterprise. We actively participated in rural revitalization, technical assistance and public welfare undertakings, empowering local high-quality
development with technologies such as low-altitude economy, intelligent transportation, and ecological restoration; we deepened
This year, we fostered a green background and steadfastly fulfilled our commitment to low-carbon development. collaborative cooperation with industrial chain partners, adhered to the equal treatment of small and medium-sized enterprises, and built an
Addressing climate change is not only the social responsibility that enterprises should fulfill, but also an important opportunity for high- open and win-win industrial ecosystem; we actively responded to the "Belt and Road" initiative, steadily expanded overseas market layout,
quality development. We actively responded to the national "dual-carbon" strategy and integrated the concept of green development into the
and undertook major infrastructure projects in Africa, South Asia, ASEAN and other regions, enhancing the global presence of the HNDI
entire business chain. At the internal operation level, we implemented a green office model, continuously optimized the energy structure; at
the business empowerment level, we successfully developed and promoted a series of green materials such as solid waste-based soil brand.
stabilizers and rubber powder composite modified asphalt, built benchmark zero-carbon expressway projects, took the lead in applying for
national-level zero-carbon parks, and formed core service capabilities in fields such as forestry carbon sink development and carbon asset
management. Through technological innovation and efficient solutions, we help customers achieve energy conservation and emission Looking forward to the future, the company will continue to deepen sustainable development practices. In the ecological dimension, we will
reduction goals, and work with upstream and downstream enterprises in the industrial chain to build a low-carbon development ecosystem. fully implement the dual-carbon strategy and lead the low-carbon transformation of the industry with green technologies; in the social
dimension, we will strictly adhere to the bottom line of quality and safety, protect employees' rights and interests, deepen supply chain
This year, we held high the banner of innovation to forge core competitive strength. collaboration, and delve into public welfare to empower people's livelihood; in the governance dimension, we will continue to improve the
ESG management and control system, strengthen compliance and risk control capabilities, and fully protect the rights and interests of
We improved the scientific and technological achievement transformation system, compiled and released a promotion manual covering 3
categories and 50 products, and explored the new business model of "material supply + special construction". The company has achieved shareholders and stakeholders. We firmly believe that only by adhering to responsibilities, embracing changes, and collaborating for
fruitful results in industry honors, winning frequent awards in various industry evaluations. The number and quality of awards have reached a symbiosis can we achieve long-term and stable development. The company will contribute to the national dual-carbon goals, empower the
new high in recent years, and the group has won more than 170 various honors throughout the year. We implemented the "Comprehensive construction of a transportation power, and create better people's livelihood and well-being with high-quality development.
Innovation Plan Implementation Plan" to encourage all employees to boldly explore and bravely make breakthroughs in technology, Thank you again for the trust and support of friends from all walks of life! May we work together with one heart and forge ahead courageously
management, business and other links. The group added 50 newly authorized patents throughout the year, including 18 new invention to embark on a new journey and create a better future!
patents; the 7th "Innovation Forum" collected 56 innovation plans and displayed 19 outstanding achievements. Proactive innovation and
willingness to innovate have become the inherent cultural genes and development motivation of the enterprise.
About us
Company Profile
Henan ZhongGong Design & Research Group Co., Ltd. (Stock Code:
In April 2023, it was honored with the "Governor's Quality Award" and
Transportation Planning and Survey Design Institute, was established in
became the first engineering consulting company listed in the Central China
region. HNDI holds comprehensive Class A qualifications in engineering
Henan Province, the institute was restructured into a mixed-ownership
consultation, engineering design, engineering investigation, and in urban
limited liability company with state-owned equity participation. In October
and rural planning. It is one of the few design and consulting companies in the
country that possesses the "Three Comprehensive and One Class A"
December 2017, it went public on the ChiNext board of the Shenzhen Stock
qualifications.
Exchange. It is a national high-tech company and an innovative leading
company in Henan Province.
HISTORY AND EVOLUTION
Henan Provincial Communications Department Henan Provincial Transportation Planning and Renamed as Henan ZhongGong Design and
Survey and Design Institute Design Research Institute Co., Ltd. Research Institute Group Co., Ltd.
Approved by Henan Provincial Editorial Overall restructured into a joint-stock company. Obtained the "Three Comprehensives and
Board, a secondary public institution of Henan One Class A" Qualifications.
Provincial Communications Department.
Henan Provincial Transportation Planning, Listed on ChiNext, Shenzhen Stock Exchange
Survey and Design Institute Co., Ltd.
Restructured into a mixed-ownership limited
Stock Abbreviation: HNDI Stock Code: 300732
liability company with state-owned equity
participation.
Class A Comprehensive Qualification for Engineering Investigation
BUSINESS CHAIN
Centering on six major industries including transportation, urban construction, water
conservancy, construction, mining, and energy and electric power, as well as two
Infrastructure"Financing,Investment,Construction, major fields of environment and safety, the Group provides integrated and
Management,Maintenance,Operation"Full-process comprehensive technical services covering the whole process of "financing,
ComprehensiveTechnicalServices investment, construction, management, maintenance and operation" for infrastructure
Environment Safety
construction.
Transportation Energy & Power Project Investment& Digital & Engineering Technology R&D
Financing Consulting Engineering
Intelligence & Achievement Promotion
Urban Construction Water Conservancy Supervision
Architecture Mining
Planning & Carbon Asset Development
Survey & Design Testinering
Consulting & Management
Inspection
AAA Credit Rating for Engineering Class A Surveying and Mapping Qualification,
Consulting Institutions Class B Surveying and Mapping Qualification
Class A Comprehensive Qualification Class A Comprehensive Credit Rating for
for Engineering Design Engineering Consulting Enterprises
Class A Quali?cation for Geological Class B Quali?cation for Grade B Certificate for Land
Hazard Assessment and Geological Hazard Planning Institution
Control Engineering Control Engineering Supervision
Survey and Design
Class A Comprehensive Qualification for Class A Qualification for Urban
Engineering Investigation and Rural Planning
Engineering Survey Labor Class A Credit Qualification for Engineering
Quali?cation: Engineering Consulting Institutions (Specialized Credit)
Drilling and Well Drilling China Metrology Accreditation (CMA) Certificate for Inspection and Testing Institutions;
Special Equipment Production License (Pressure Piping Design);
Group Credit Rating Certificate (AAA Grade)
Technological RandD and Application of Achievements and Promotion
Whole-Process Consulting Services
Digital and Intelligent Products and Services
Planning and Consulting Engineering Survey
Henan Expressway Infrastructure Data Center
Highway Engineering Intelligent Construction, Management and Maintenance Platform (BCM3.0)
Think Tank Services Highway Survey
Digital Expressway Smart Operation and Maintenance Platform (DHP)
Comprehensive Planning Municipal Survey
Transportation Public Service Platform
Architectural Survey
Transportation and Logistics
Hangyuan Comprehensive Supervision Platform
Testing and Inspection
Investment and Financing Planning
Engineering Monitoring Tunnel Safety Operation and Management Platform
Safety and Emergency Response
Water Conservancy and Waterway Survey Construction Site Comprehensive Management Platform
Carbon Consulting and Carbon Asset Development Energy and Power Survey Danjiangkou Reservoir Water and Land Traffic Intelligent Supervision Platform
Engineering Cost and Comprehensive Consulting Geothermal Energy Development and Utilization Integrated Smart Mine Control and Management Platform
Geological Disaster Prevention and Ecological Restoration
Henan Provincial Rapid Village Access Guarantee Supervision System
Engineering Surveying and Mapping Engineering Design Intelligent Manufacturing Products and Services
Geodetic Survey Transportation Highway, Railway, Municipal Bridge Steel Structure and Steel-Concrete Composite Structure Products
Aerial Photogrammetry for Surveying and Mapping Urban Construction Water Conservancy and Hydropower Engineering, Waterway Engineering Hydraulic Metal Structure Products
Photogrammetry and Remote Sensing Architecture
Civil Engineering Steel Structure and Metal Enclosure Products
Engineering Measurement Mining
New Energy Field Metal Structure Products
Marine Surveying and Mapping Water Conservancy
High-end Engineering Equipment Products
Boundary and Real Estate Surveying and Mapping Environment
Geographic Information System (GIS) Engineering Energy and Power Integrated Assembly, Transportation and Installation
Map Compilation Internet Map Services
Green and Low-Carbon Products and Services
Engineering Management Testing and Certification
Low-Emission Multi-Source Waste Rubber Powder Composite Modified Asphalt Technology
Engineering Supervision Engineering Material Testing
Industrial Solid Waste Ecological Cementitious Material Road Application Technology
Design-Build General Contracting Road Engineering Testing
Structural Engineering Testing Polymer Emulsion and High Viscosity Modified Emulsified Asphalt
Engineering Agency Construction and Operation
Tunnel and Protection Engineering Testing Solid Waste-Based Self-Compacting Flowable Solidified Soil
Management
Foundation and Substructure Testing High-Strength Cement Concrete Rapid Repair Material
Digital Consulting
Traffic Safety Facilities and Electromechanical Continuous Flow Aerated Granular Sludge Technology
Whole-Process Cost Consulting Engineering Testing
Steel Slag Aggregate Cold-Mix Anti-Scratch Wear Layer Preventive Maintenance
Construction Engineering Quality Testing
Environmental Pollution Control Technology and Equipment
Steel Structure Testing
Waterway Engineering Quality Testing
Water Conservancy Engineering Testing
Site Laboratory Acceptance
Instrument and Equipment Calibration
The Group has 7 business divisions, 3 R&D departments, 14 production institutes, 18 wholly Domestic Market Layout
owned subsidiaries and 2 holding companies, among which 7 have been recognized as "High-
Six major regions within Henan Province: Zhengzhou, Eastern Henan, Southern Henan, Western
Tech Enterprises" and "Henan Provincial Specialized, Special and Innovative Enterprises". Henan, Northern Henan, and Southwestern Henan
Transportation Business Division Four regional headquarters outside Henan: Guangdong-Hong Kong-Macao Greater Bay Area
Urban Construction Business Division Regional Headquarters, Chengdu-Chongqing Regional Headquarters, Yunnan-Guizhou
Architecture Business Division Regional Headquarters, Yangtze River Delta Regional Headquarters
Business Divisions (7) Water Transport and Water Conservancy Business Division
Survey Business Division Seven joint regions outside Henan: Northwest Region, Southwest Region, Central China Region,
Overseas Business Division North China Region, South China Region, East China Region, Northeast Region
Engineering Management and EPC Business Division
Domestic institutions located in: Chengdu, Fujian, Hainan, Luoyang, Zhangzhou, Zhejiang, Guilin,
Engineering Technology Research Institute
Guangxi, Yunnan, Xizang, Gansu, Chongqing, Xiong'an (Hebei), Heyuan, Foshan, Guangzhou,
R&D Departments (3) Digital Technology Research Institute
Shandong, Qingyuan, Yichun, Tianjin, Puyang, Shenzhen, Beijing, Shantou, Xinyang, Xuchang,
Strategic Development Research Institute Liaoning, Dongguan, Shanxi, Hunan, Xiayi, Zhoukou, Zhongshan, Yibin
Engineering Cost and Technical Consulting Center
Traffic Safety Technology Research Institute
Emergency Technology and Industry Research Institute
Production Institutes (14) Comprehensive Planning Research Institute
Logistics and Industrial Planning Research Institute
Urban-Rural Development and Planning Research Center
Smart Transportation and Information Engineering Design Research Institute
Energy and Power Engineering Technology Research Institute
Group Headquarters Bridge and Structural Engineering Design Research Institute
Engineering Maintenance Design Research Institute
Engineering Surveying and Mapping and Geographic Information Research Institute
Ecological Environment Engineering Design Institute
Civil Aviation Airport Planning and Design Research Institute
Digital Multimedia Center
Zhongben Testing and Certification Co., Ltd.
Henan Zhongding Intelligent Construction Technology Co., Ltd.
洛阳
Henan Gaojian Project Management Co., Ltd.
区域总部
Zhongrui Zhiyuan Investment and Development Co., Ltd. 成渝 集团总部
Henan Provincial Traffic Survey and Design Co., Ltd. 区域总部
Henan Zhongqu Architecture Design Co., Ltd. 长三角
区域总部
Henan Tiantai Engineering Technology Co., Ltd.
Henan Carbon Emission Rights Service Center Co., Ltd.
Henan Ruihang Airport Engineering Design & Consulting Co., Ltd.
Subsidiaries (20) 云贵
Henan Anjutong Industrial Co., Ltd.
区域总部
Henan Zhongyan Comprehensive Planning and Design Co., Ltd. (Airport Economic Zone) 粤港澳
区域总部
HNDI (Sichuan) Co., Ltd.
HNDI (Xinjiang) Co., Ltd.
HNDI (Hangzhou) Co., Ltd.
HNDI (Shenzhen) Co., Ltd.
HNDI (Hong Kong) Co., Ltd.
HNDI (DRC) Co., Ltd.
HNDI (East Africa Branch) Co., Ltd.
Zhongyun International Engineering Co., Ltd. (88% Equity Stake)
Zhoukou Port & Navigation Design Co., Ltd. (55% Equity Stake)
Accelerate the Promotion of International Development Layout
The Group is one of the earliest domestic institutions engaged in international economic and
technical cooperation, holding the full set of foreign aid qualifications issued by the Ministry of
Commerce of the People's Republic of China and the China International Development
Cooperation Agency.
Mission: Create Value through Service, Enrich Life for All
It has participated in and undertaken the survey, design, construction supervision and technical
consulting services for more than 130 major overseas highway engineering projects, with Vision: China's Leading Comprehensive Engineering Technology
operations covering over 50 countries and regions in Southeast Asia, South Asia, Central Asia, the Service Enterprise
Middle East, Africa, Latin America, Eastern Europe and other regions.
Core Values: Pursue Excellence, Dedicate with Perseverance,
Integrity and Responsibility, Win-Win Cooperation
Development Philosophy: Service-Centric, Quality-Fundamental,
Technology-Guaranteed, Market-Driven
Quality Policy: Standardization, Innovation, High Quality, Harmony
Innovation Philosophy: Innovation as Culture, Pioneering as Spirit
Henan Provincial Innovation Leading Enterprise First Batch of Data Enterprises in Henan Province
National "AAA" Credit Rating for Engineering Cost Consulting Enterprises Top 100 Enterprises in China's Geographic Information Industry
Henan Provincial AAA-Class Survey Integrity Unit
Research Achievement Awards
International Awards
Scienti?c Research Achievements
and Intellectual Property Rights
IRF International Road Award Nominee
Luban Award 683 Item 3 National Standards (Participated in Compilation)
National-Level Awards Zhan Tianyou Award Provincial and Ministerial-Level Awards
Standard
Formulation 7 Association Standards
Proactively promoted the successful conversion of 37300 ten thousand CNY in
bonds, effectively alleviating the redemption pressure in the next three years,
continuously optimizing the Group's capital structure, reducing the asset-
Plan (2025-2027)
The Group anchors its strategic goal of high-
Group Coordination quality development, clarifies the development
Regional Headquarters, direction and implementation path for each
Alliance Regions business segment, coordinates the optimal
allocation of resources across the board, and
Business Divisions,
Production Institutes, leads the Group's steady and long-term 04 Breakthrough and Consolidation of Qualification System
R&D Institutes development with top-level design.
In 2025, the Group achieved breakthroughs and consolidation of 7 key
qualifications including "Pressure Pipeline", consolidating the Group's
full-industry-chain qualification foundation, enhancing market
competitiveness in fields such as "Key Projects, New Infrastructure, and
Low-Altitude Economy", and supporting the Group's sustainability.
The Group has made breakthroughs in
opening 8 new expressways in Henan,
becoming the core supporting force
for the province's expressway mileage
to exceed 10,000 km. It has helped
Henan achieve "ring-connected
network" and "dual expressways in The Group won more than 170 honors of various types
every county", laying a solid throughout the year, achieving a zero breakthrough in
transportation foundation for the international awards, and winning 46 national awards, including
province's high-quality development. the only annual special prize of the China Transportation
Among them, the Taihang Mountain Association Science and Technology Invention Award, 2 first
Expressway has become the new prizes of National Highway Transportation Excellent Survey and
"Most Beautiful Highway in Henan", Design, 1 National Excellent Engineering Survey and Design
Award, 2 first prizes of National Coal Industry Engineering
and the Danjiang Xiaosanxia Bridge,
Consulting Achievements, and other major honors; it also won 3
with a main span of 536 meters, has
Henan Provincial Science and Technology Progress Awards
set a new record in the province, fully
and 1 Mao Yisheng Transportation Science and Technology
demonstrating the Group's
Progress Award. The intensive landing of high-value awards
comprehensive technical strength.
fully demonstrates the Group's core strength and industry-
leading position in engineering design, scientific research
innovation, technical breakthroughs and other fields.
Industry Development Plan
Transportation Infrastructure
The Group has formulated China's first "Henan Provincial Port-
Completed the design of the demonstration corridor and
Neighboring Industry Development Plan (2025-2035)", seizing the
network for the digital transformation of Henan's "One
track of port-neighboring industry and port planning, and creating
Axis, One Corridor" transportation infrastructure, fully
new advantages for the Group's interconnected business
demonstrating the Group's professional strength in
development.
information consulting and design, deepening multi-level
user cooperation, and driving the in-depth coordinated
development of the Group's digital business segment.
The Group designed and built the province's first
inland river container terminal with an annual
throughput capacity exceeding 1 million TEUs,
ensuring the smooth opening of the central operation
area of Zhoukou Port Central Port Area, providing key
transportation support for the implementation of the
Project for Low-Altitude 3D Transportation, Tackling Intelligent
Planning of Low-Altitude Infrastructure
The Group has deeply participated in Henan's major
science and technology project for low-altitude 3D
transportation, undertaking the core task of "Research
on Layout of Take-off and Landing Facility Network and 10 Won the "Top 100 Enterprises in China's Geographic Information
Air Route Optimization Technology Based on Multi- Industry" for Three Consecutive Years
source Data Fusion". Its technical strength has been
of?cially recognized, successfully seizing the technical
The Group has been rated as one of the "Top 100 Enterprises in China's
high ground of the low-altitude economy, promoting the
Geographic Information Industry" for three consecutive years,
integration of "industry-university-research-
demonstrating its sustained and stable core competitiveness and brand
application", and consolidating the core technical
in?uence in the industry, and consolidating the Group's industry-leading
support for the Group's low-altitude economy business.
position.
Sustainable Development Governance Structure
The Group attaches great importance to ESG management, and has always deeply integrated the concept of
sustainable development into the overall enterprise strategic layout and the entire operation process. To
Sustainable Development Governance further improve the governance system and strengthen top-level coordination, the Group renamed the
"Strategy Committee" under the Board of Directors as the "Strategy and Sustainable Development
Committee", added ESG management-related functions on the basis of its original responsibilities, and
revised and improved the corresponding working systems simultaneously. At the same time, the Group has
built a three-level governance structure of "Board of Directors and its subordinate Strategy and Sustainable
Development Committee-Strategy and Sustainable Development Office-ESG Management Team",
clarifying the rights and responsibilities of each level, forming a coordinated, efficient and standardized
organizational system, and providing a solid guarantee for the high-quality and sustainable development of
the Group.
Understand, analyze and grasp the current situation of the
domestic and international industry and policies related to
Board of sustainable development, and the overall operation and
Directors and its management of the Company.
Supervise the assessment of the impacts, risks and
subordinate opportunities of the Company's sustainable development.
Guide and review the Company's sustainable development
Strategy and
policies, strategies and goals.
Sustainable Regularly supervise the progress and completion of
sustainable development-related goals.
Development Approve the Company’s Sustainability Report.
Committee Supervise and inspect the implementation of sustainable
development-related work and put forward guiding
opinions in a timely manner.
Manage material topics to provide analysis and
suggestions for discussion by the decision-making level to
ensure supervision by the Board of Directors.
Strategy and Determine and manage the costs and resources (e.g.,
Sustainable employees, technology) allocated for identifying,
assessing, managing and monitoring sustainable
Development development-related impacts, risks and opportunities.
Formulate sustainable development work plans,
Office
sustainable development incentive and assessment
systems, and other sustainable development-related
matters.
Formulate stakeholder engagement plans and organize
stakeholder communication activities.
Coordinate the preparation of sustainability reports.
ESG Build capabilities in sustainable development management,
data statistics and analysis, investor and research
Management institution communication, etc.
Improve sustainable development-related management
Team systems and implement sustainable development work
plans.
Report regular work results to the management level.
Other sustainable development-related matter.
The internal sustainable development information reporting mechanism is formulated in accordance with the The Company attaches importance to communication with stakeholders. It identifies key stakeholders such
Company Law of the People’s Republic of China (hereinafter referred to as the Company Law), the Securities Law as employees, shareholders and investors, customers and suppliers, industry associations and NGOs,
of the People’s Republic of China (hereinafter referred to as the Securities Law), the Measures for the government and regulatory authorities, and peer enterprises based on its operations. It understands their
Administration of Information Disclosure of Listed Companies , the Shenzhen Stock Exchange ChiNext Stock Listing
expectations and demands through multiple channels and actively responds to and addresses their
Rules , the Shenzhen Stock Exchange Guidelines for the Standardized Operation of ChiNext Listed Companies and
concerns. Various business departments are responsible for targeted communication to ensure that
other relevant laws, regulations and normative documents, combined with the Articles of Association of Henan
stakeholders’ concerns are efficiently transmitted and implemented within the Company. The Company
ZhongGong Design & Research Group Co., Ltd. and the Company Information Disclosure Management Measures
always adheres to the principle of respecting and safeguarding the legitimate rights and interests of all
and other internal rules and regulations. The Group adopts special analysis reports, reporting meetings and
other reporting methods, and simultaneously prepares weekly, monthly, semi-annual and annual reports. An parties, advocates active cooperation and win-win progress, and jointly promotes the Company to achieve
immediate reporting mechanism is activated in the event of major ESG events to ensure that all levels of the sustainable and high-quality development goals.
governance structure obtain key information in a timely manner.
Stakeholders Concerned Topics Communication and Response
Employee rights and
Abide by labor standards, improve salary
protection, employee
and welfare systems, conduct regular
Employees development and training,
training, smooth career promotion
The Group anchors the core requirements of the three dimensions of Environment (E), Social (S) and occupational health and safe
channels, employee congresses
production
Governance (G), fully integrates the concept of sustainable development into the entire process of design
consulting, scientific research and innovation, project management and corporate operations, injecting
sustained impetus into industry upgrading, social progress and ecological protection. General meetings of shareholders,
Transparent information performance briefings, Interactive Easy
Investors
disclosure, compliant
operations, sustainable
governance mechanisms,
platform, optimized group governance
system, timely and accurate information
disclosure, improved internal control,
Dimension Strategic Goals SDGs Alignment risk management and risk assessment, diversified investor
internal control communication channels
Adhere to the bottom line of compliant operations, establish and improve a modern
corporate governance system. Improve internal control and risk management
mechanisms, achieving 0% underreporting of major risks and zero safety accidents.
Governance
Build a digital risk control and operation management platform.
Adhere to integrity-based and transparent management, protect the legitimate Data protection and
（G）
rights and interests of stakeholders such as shareholders and customers, and
Protect customer information and
continuously improve customer satisfaction and corporate credibility. information security, product privacy, service and complaint hotlines,
and service quality, customer satisfaction surveys,
Customers and Suppliers technological innovation and application of complaint systems,
progress, responsible improve service quality, strengthen
procurement, supply chain product quality control, open and
security transparent procurement
Promote employee value enhancement, build an inclusive and fair development
platform, and ensure decent work and employee well-being.
Deepen sustainable and responsible supply chain management, build an industry- Addressing climate change,
Social university-research-application ecological alliance, and drive collaborative Industry Associations rural revitalization, social Volunteer services, public welfare and
development of partners. and NGOs public welfare charitable activities
（S）
Actively fulfill community responsibilities and social public welfare, and contribute
to the popularization of quality education.
Compliance with laws and
regulations, tax payment in Accept daily supervision and inspection,
Government and accordance with the law, fulfill social responsibilities, improve
serving regional economy, environmental governance system,
Regulatory Authorities improve sustainable development
Comprehensively reduce the environmental impact of the entire life cycle of design environmental compliance
management, circular system
and operation.
Environment Vigorously promote the application of BIM technology, green building standards economy
（E） and clean energy to drive the green transformation of the construction and
transportation sectors.
Jointly build a low-carbon development ecosystem with all parties in the industrial Anti-unfair competition management
chain, actively address climate change, protect the ecological environment, and
Peer Enterprises Anti-unfair competition system, anti-unfair competition
contribute to the long-term goals of carbon peaking and carbon neutrality. measures, strategic cooperation
Results of Material Topic Assessment
The results of the 2025 material topic identification are shown in the matrix below. Six topics are
Materiality Assessment identified as financially material (topics marked with * are financially material topics).
In accordance with the assessment methods of domestic and international disclosure standards such as the
Self-Regulatory Guidelines No.17 for Companies Listed on Shenzhen Stock Exchange-Sustainable Development
Employee Rights and Interests Protection *
Report (Trial), the Self-Regulatory Guidelines No.3 for Companies Listed on Shenzhen Stock Exchange-Preparation
Addressing Climate Change
of Sustainability Reports (2026 Revision), the Sustainability Reporting Standards (GRI Standards 2021) issued by Innovation-Driven*
the Global Reporting Initiative (GRI) , and the China Enterprise Sustainability Reporting Guidelines (CASS-ESG 6.0), Dual-Catbon Research and Technical Serices* Product and Service Safety and Qualty
the Group identifies and assesses material topics from two aspects: impact materiality and financial Occupational Health and Safe Production
Sustainable Governance Mechanism*
materiality. The specific analysis process is as follows: Data Security and Customer Privacy Protection
Party Buiding Work Standardized and Compliant Operations”
Green Design and Technology R&D and Application
Anti-Commercial Bribery and Anti-Corruption
Topic Assessment Process Analysis Method Environment
Stakeholder Engagement
Social
PollutionPreventionandEcosystemProtection
Analyze internal activities and business relationships of the Company, Anti-Uhfair Competition Governance
Rural Revitalization and Social Fontribution
including sorting out the Company’s strategy, business and value chain, Career Development and Training
Understand and identifying sustainable development-related impacts
Understand the external objective environment, including 2025 macro Supply Chain Management
Company
policies, industrial policies, regulatory requirements and industry Resource Utilization and Circular Economy
Background hotspots, and identify potential impacts on the Company;
Understand key stakeholders mainly affected, including internal and Equal Treatment of SMEs
external stakeholders, and sort and classify them.
Based on domestic and international sustainable development rating
assessment methods, industry characteristics, market trends and the financid materiality
C o m p a n y’s b u s i n e s s m o d e l , t a k e t h e C A S S - E S G 6 . 0 a n d G R I
Establish Standards as the list foundation, and form a topic list combined with
Topic List industry characteristics, industry development stage, own business Topic Scope Topic Name Corresponding Report Chapter
model, value chain and other conditions. In 2025, in accordance with the
Guidelines, the topic of "Equal Treatment of SMEs" was added on the
Addressing Climate Change
* Addressing Climate Change
Advancing Emissions Management
Pollution Prevention and Ecosystem Protection
basis of last year’s topics, and "Intelligent Construction" was integrated Environment Ecosystems Protecting
into "Innovation-Driven", resulting in a total of 20 topics. Resource Utilization and Circular Economy Resource Recycling
Green Design and Technology R&D and Application Green and Low-Carbon Design
Rely on questionnaire surveys and multi-channel stakeholder
Dual-Carbon Research and Technical Services
* Dual-carbon Strategy Services
communication mechanisms to systematically collect quantitative scores
Innovation-Driven
* Innovation-Driven Development
Topic Materiality of internal and external stakeholders on the impact materiality and Supply Chain Management Supply Chain Sustainability
financial materiality of each sustainable development topic; Equal Treatment of SMEs Equal Treatment of Small and Medium-Sized Enterprises
Assessment Build a differentiated weight system based on the degree of stakeholder Product and Service Safety and Quality
* Product and Service Quality and Safety Control
Data Security and Customer Privacy Protection Data Privacy Protection
impact and concern priority, and form quantitative assessment results of
all topics after weighted summary. Social
Employee Rights and Interests Protection
Occupational Health and Safe Production
* Protection of Employees' Rights and Interests
Health and Safety Protection
Career Development and Training Talent Development Program
Synthesize the assessment results of topic impact and financial Empowering Rural Development
materiality, set materiality thresholds combined with the Company’s Technology-Enabled Practices
operation and management capabilities, determine the material topic list Rural Revitalization and Social Contribution Public Welfare Commitment for Long-Term Development
Topic Review and and define boundaries; Jointly Building Dreams and Moving Forward Together
Confirmation Build a double materiality analysis matrix to present assessment results. Win-Win Cooperation Between China and the World
After the Sustainable Development Management Committee reviews and Standardized and Compliant Operations
* Standardized and Compliant Operations
confirms the topic ranking, it will be reported to the Board of Directors, Sustainable Development Governance Structure
and the material topics identified for 2025 will be key disclosed in the Sustainable Governance Mechanism Sustainable Development Information Reporting Mechanism
report. Governance Sustainable Development Goals
Stakeholder Engagement Stakeholder Engagement
Anti-Commercial Bribery and Anti-Corruption Anti-Corruption Initiatives
Anti-Unfair Competition Safeguarding Fair Competition
Party Building Work Party Building Leading by Example
Governance for Climate Change Response Strategy for Addressing Climate Change
Practicing Low-Carbon HNDI has established the Strategy and Sustainable
Development Committee composed of 6 directors.
Climate change presents both risks and
opportunities for HNDI. Growing societal demand
Development and Promoting An office is set up under the Committee, affiliated
with the Board Office, responsible for routine liaison,
for green and low-carbon development creates
new business growth drivers, while requiring
meeting organization and preliminary review of
Green Environmental Protection
adjustments to business models and strategic
relevant matters. The Committee identifies and planning. Centered on full-lifecycle engineering
oversees ESG-related risks and opportunities services, HNDI is committed to becoming a leading
materially impacting HNDI’s business, guides comprehensive engineering technology service
management in adopting appropriate responses, enterprise in China.
and studies and provides decision-making advice
on major ESG matters such as targets and strategic
plans.
HNDI has identified climate-related risks and opportunities across business 、
segments and formulated targeted response strategies.
Risk Category Risk Driver Risk Description Value Chain Stage Likelihood Impact Horizon Financial Impact Response Strategy
Facility damage, operational Improve climate monitoring and
disruption, impaired building Increased costs for labor, early warning systems, upgrade
Direct operation / Short, medium
Physical Risk Extreme weather material performance, delayed Medium equipment leasing, emergency disaster-resistant design
Project construction and long term
Policy subsidies, tax incentives and lower upfront project costs construction, and aggravated
ecological damage
reserves and restoration standards, and formulate
emergency plans
Adjustments to climate policies, Closely track policy updates, adjust
Updated Higher compliance costs, delayed
stricter project approval and Medium and long business plans promptly,
Policy Risk regulations and Full project process Medium project approval leading to
compliance requirements, and term strengthen compliance teams, and
standards increased time and capital costs
revised industry standards participate in standard-setting
Lagging Insufficient or outdated technical High technical renovation costs, Increase investment in low-carbon
RandD / Project Short, medium
Technical Risk technological reserves, barriers to new Medium reduced service competitiveness RandD, cooperate with universities
application and long term
iteration technology deployment and revenue loss and research institutes
Deepen market research, optimize
Volatile market Intensified industry competition Downstream market Medium and long Declining market share, reduced service structure, expand client
Market Risk Medium
demand driven by climate transition / Client engagement term revenue and profit base, and enhance differentiated
competitiveness
Brand Embed green principles throughout
Damaged brand credibility,
Reputational Underperforming communication / Medium and long Impairment to brand trust and the project lifecycle, disclose
weakened client cooperation and Low
Risk transition Project term partnership transition progress, and strengthen
industry evaluation
implementation multi-stakeholder communication
Opportunity Impact
Opportunity Opportunity Description Value Chain Stage Likelihood Financial Impact Realization Strategy
Category Horizon
Exploring new Downstream value Medium Diversified revenue, Step up RandD in new sectors,build
Market business
Surge in demand for green and low-
chain / Project High and long
carbon markets higher market share and benchmark projects, and expand
Opportunity areas expansion term revenue growth business coverage
Accessing Project application Short, Align closely with policy directions,
Policy subsidies, tax
Policy policy
Support policies, subsidies and key-
/ Policy High medium
incentives and lower
actively apply for special support,
Opportunity listed green projects and long and participate in policy
incentives coordination upfront project costs
term implementation
Technology- Mature application of low-carbon, Short, Lower operational, energy Scale up advanced technologies,
enabled cost smart and energy-saving medium
Technical RandD / Project
High
and long-term integrate technology with business,
reduction and technologies; digital tools enhancing implementation and long maintenance costs, and reduce costs while boosting
Opportunity efficiency design and operational efficiency term improved project returns efficiency
improvement
Short, Higher capital turnover,
Study green financial products,
Financial Access to green Improved green financial instruments Project financing High medium lower financing costs and
apply for targeted financing, and
Opportunity finance and diversified financing channels and long optimized capital
innovate green finance cooperation
term structure
Scenario Analysis
Identification and assessment: Conduct a full assessment of major climate risks and
As a comprehensive engineering design and consulting group, HNDI conducts in-depth scenario analysis to
assess the potential impacts of climate change on its business, evaluate the resilience of its strategic plans, opportunities semi-annually, covering policies, regulations, strategy, technology,
and adjust strategies and financial plans accordingly. products, operations, markets and the full value chain.
Time Horizon Scenario Analysis
Response system: Adopt a dual-track model of risk prevention and opportunity capture;
Policy and market environment
National and Henan’s 15th Five-Year Plan emphasizes green, smart and safe infrastructure upgrades, creating new demand in classify and grade risks for avoidance, mitigation or acceptance.
transportation, urban construction, water conservancy and other traditional sectors. The “dual-carbon” goal shifts from
compliance to carbon value creation, spurring emerging services such as carbon accounting, carbon asset management, zero-
carbon parks and zero-carbon expressways.
Communication and reporting: Hold regular climate risk assessment meetings, disclose risk
Business development
Focus on improving the industrial chain layout in the "6+2" service sectors (six major industries including transportation, urban status and responses, and clarify responsibilities across the organization.
Short term construction, water conservancy, construction, mining, and energy and electric power, plus two major fields: environment and
(1–2 years) safety), and enhance the comprehensive integrated service capacity.
Seize the window of the “13445 Project” completion and new 15th Five-Year Plan expressway projects; integrate green, low-
carbon and smart design into new projects. Explore the “design + operation” full-lifecycle service model for expressway operation
and maintenance. Follow urban renewal and resilient city trends to expand old community renovation, underground pipeline
upgrading and urban flood control. Accelerate deployment in low-altitude infrastructure, wind-solar-storage integration and
biomass energy. Indicators and Targets for Climate Change Response
Financial impact
Increased investment in digitalization, green technology and talent may pressure short-term profits; cash flow is expected to improve
via payment collection campaigns and optimized business structure.
Short-Term Targets (1–2 years)
Improve climate governance and clarify departmental responsibilities to form a closed-loop
Industry trends and competition
management system.
Industry consolidation intensifies; technological barriers become core competitiveness. HNDI will consolidate market share based on
its “Three Comprehensive and One Class A” and “6+2” industrial layout. Digitalization and AI redefine competition. Build an initial dual-carbon professional team with a certification rate of over 60% for core
Business diversi?cation and synergy members.
Deepen “6+2” business synergy and shift from project operation to client-centric ecosystem development. Integrate carbon asset
Launch 3–5 benchmark climate response projects and achieve targeted growth in project volume
Medium term development and dual-carbon consulting with traditional design services via Henan Carbon Emission Rights Service Center. Set up
(3–5 years) cross-departmental task forces for integrated projects and build “design + operation + investment” one-stop service capacity. and contract value.
Financial impact Complete low-carbon renovation of office areas; reduce per capita energy consumption and
Synergies of the “6+2” layout will emerge; revenue from digital products, green materials and carbon asset services will rise
carbon intensity; raise paperless office rate to 85%.
significantly as key profit drivers.
Global expansion and international strategy
Medium-Term Targets (3–5 years)
Deepen presence in South Asia, Africa and expand to the Middle East and ASEAN under the Belt and Road Initiative. Export green
technologies in green transportation, zero-carbon parks and solid waste recycling, participate in international standard-setting, and Reduce Scope 1 + Scope 2 carbon intensity in office areas by a cumulative 25%.
build long-term service ecosystems overseas. Build a leading regional climate service platform; help clients reduce carbon emissions by at least
Long term
Strategic transformation and sustainable development
(5+ years) 250,000 tons.
Complete transformation into a full-solution provider offering one-stop full-lifecycle services. Integrate ESG into corporate strategy
to achieve synergies of economic, social and environmental benefits. Raise climate-related RandD investment to 10% of total RandD; add at least 10 technological
Financial impact achievements and apply new technologies to over 60% of projects.
Internationalization and business model transformation will unlock sustained cash flow and brand premium, while facing geopolitical
Lead or participate in 3–5 local climate-related standards.
and overseas investment risks. HNDI will optimize financial management, build a full-cycle risk management system, and strengthen
overseas risk identification and response.
Long-Term Targets (5+ years)
Achieve carbon neutrality for major events; reach industry-leading carbon intensity and lead
Management of Climate-Related Impacts, Risks and Opportunities industry green transition.
Build a full-chain climate service system covering governments, parks and enterprises; help
HNDI has established a closed-loop management system covering clients reduce carbon emissions by at least 1 million tons.
identification–assessment–response–communication–improveme Become an industry benchmark in climate action and support national dual-carbon goals.
nt for climate-related risks and opportunities.
Greenhouse Gas Emissions and Accounting Notes
GHG emissions are quantified in accordance with ISO 14064-1:2018 Greenhouse gases — Part 1:
Specification with guidance at the organization level for quantification and reporting of Environmental Compliance Management
greenhouse gas emissions and removals, ISO 14064-3:2019, GHG Protocol and IPCC 2006
Guidelines (2019 revision), based on HNDI’s 2025 operational data.
HNDI strictly abides by the Environmental Protection Law of the People’s Republic of China and
Key Indicator Unit 2025
maintains valid GB/T 24001-2016 / ISO 14001:2015 environmental management system
Natural gas m3 81471
certification.
Gasoline ton 255.70
Diesel ton 59.88
Purchased electricity MWh 10198.77
Purchased heat GJ 8977.00
Refrigerant (HFC-134a) ton 0.20
Refrigerant (R32) ton 0.20
Direct energy consumption tce 553.11
Indirect energy consumption tce 1559.73
Total energy consumption tce 2112.84
Scope 1 GHG Emissions tCO₂e 1109.74
Scope 2 GHG Emissions tCO₂e 7001.69
Total GHG Emissions (Scope 1+2) tCO₂e 8111.43
Note: Data covers the headquarters park and three subsidiaries. Emission factors are sourced from China Energy Statistical Yearbook
Participation in Emission Reduction Mechanisms
Pollutant Discharge
Henan Carbon Emission Rights Serice Center Co, Ltd. (a subsidiary of HNDI) deeply participates
in CCER project development, studies methodologies and boundary conditions, and matches As an engineering consulting enterprise, HNDI is not a key polluting entity. All wastewater and
emission reduction scenarios. waste gas are treated and discharged up to standard with full-process monitoring.
Waste Management
HNDI has formulated the Solid Waste Management Regulation and implements classified Ecological Conservation
disposal of domestic, electronic and hazardous waste.
HNDI complies with environmental laws, biodiversity conventions and conducts ecological impact
assessments for projects.
(1) Scientific Classification and Disposal of Waste
Domestic waste: Adopt classified disposal and centralized collection to ensure resource Ecological Conservation Cases
utilization and harmless treatment.
Electronic wast: Prioritize recycling and reuse, or entrust professional institutions for Cases：Demonstration and Analysis of Ecological Protection Red Line for Tanghe No.1 Bridge
compliant disposal to prevent pollution from hazardous substances.
Comprehensively assess the short-term and long-term impacts of the demolition and
Hazardous wast: Set up an independent temporary storage area and strictly comply with the reconstruction of Tanghe No.1 Bridge on the wetland ecosystem, wildlife habitats, hydrological
Standard for Pollution Control on Hazardous Waste Storage (GB 18597). environment, etc. in the red line area, setting up a protective barrier for the construction of
necessary infrastructure in ecologically sensitive areas.
(2) Waste Classification and Standardized Disposal
Case: Total Nitrogen Comprehensive Control Project in Case: Soil and Water Conservation in the Capacity
Install classified collection containers and post category and hazard labels to ensure clear
Xingcheng River Basin and Multi-treasure Expansion and Quality Improvement Project of the
waste classification.
Fish Breeding Environment Renovation Central Operation Area of Huaibin Port Area
Household waste: Disposed of by qualified environmental protection companies entrusted
by property management.
Production waste: Disposed of by professionals entrusted by the production department,
achieving 100% proper discharge of waste.
Kitchen waste: Restaurant waste is entrusted to professional companies for recycling and
disposal to eliminate illegal discharge and trading of waste oil.
(3) Collaborative Management with Supply Chain and Cooperative Partners
Incorporate waste management requirements into cooperation agreements, such as
requiring self-removal of construction waste.
Promote green procurement, optimize waste management processes, and improve
overall management capabilities.
Key Performance Indicators of Environmental Management Process
Key performance 2023 2024 2025
The number of complaints from the public and
relevant parties regarding environmental protection
Environmental Monitoring
Environmental pollution accident (Incident) 0 0 0
The compliance rate of construction Throughout the whole process of project construction and operation, the group conducts environmental
wastewater and waste gas
monitoring in a standardized manner, implements monitoring in strict accordance with monitoring
specifications and technical standards, promptly issues true and accurate monitoring data and reports,
The standardized disposal rate of solid waste 100% 100% 100%
takes the initiative to accept social and environmental supervision, and earnestly fulfills the
responsibility of ecological environmental protection.
Environmental Monitoring Cases Environmental Impact Assessment
In the process of carrying out various public-involved planning and construction projects, the
Case: Environmental Monitoring During the Construction Period of the group carefully conducts planning environmental impact assessment and construction project
Jigongshan to Shangcheng Section of the Expressway Along the Dabie Mountains environmental impact assessment, carries out the assessment in strict accordance with legal
procedures and technical standards, compiles professional and objective evaluation documents,
A systematic and periodic ecological environment monitoring work carried out for the entire four-
year construction period of the 125-kilometer-long Jigongshan to Shangcheng Section of the prevents environmental risks from the source, and actively fulfills the responsibility to society and
Expressway Along the Dabie Mountains, providing a scientific basis for evaluating the long-term the environment.
ecological effects of the project and optimizing the green construction technical specifications for
similar mountainous expressways in the future.
Environmental Impact Assessment Cases
Case: Environmental Monitoring During the Construction Period of the
Case: Environmental Impact Assessment of the Overall Plan of Luohe Port
Qinyang to Yichuan Expressway
Completed the environmental impact assessment of the overall plan of Luohe Port, actively avoided
The whole-process environmental monitoring carried out during the entire construction stage of the legally prohibited or strictly restricted development areas such as the Shahe National Wetland Park,
transforming the ecologically friendly design of "replacing roads with bridges" into practical location of the port area close to sensitive targets such as the Lihe Germplasm Resource Reserve,
protection effects, enabling the completion of this transportation artery without sacrificing the building a solid defense line for ecological protection from the strategic source.
biodiversity and ecological balance of the Yellow River Wetland, and setting a benchmark for
environmental management of major infrastructure projects implemented in national nature Case: Environmental Impact Assessment of a Solid Waste Resource Utilization
reserves.
Project with an Annual Treatment Capacity of 20,000 Tons
Completed the environmental
Environmental Acceptance impact assessment of a solid
waste resource utilization facility
During the completion and commissioning stage of the project, the group strictly implements the project with an annual treatment
environmental acceptance work, organizes the acceptance in accordance with the acceptance capacity of 20,000 tons,
procedures and legal requirements, forms standardized and complete acceptance documents integrating the environmental risk
control of hazardous waste with
and conclusions, ensures the implementation of environmental protection facilities and
resource recycling through
measures, and earnestly fulfills the corporate environmental protection social responsibility. scientific assessment and
standardized design.
Environmental Acceptance Cases
Case: Environmental Impact Assessment of the Ruzhou to
Case: Completion Environmental Protection Acceptance of the Shenqiu to Song County Section (Luoyang Area) of the Yongcheng to Lingbao Expressway
Henan-Anhui Provincial Boundary Section of the Puyang to Hubei Yangxin Expressway
HNDI complies with the "Energy Conservation Law of the People's Republic of China" , the "Renewable Green Materials
Energy Law of the People's Republic of China", etc., continuously improves the company's energy
management system in combination with its own business characteristics, promotes energy HNDI has long been deeply engaged in the RandD and promotion of green building materials in
conservation management, clarifies the energy-saving operation procedures for air conditioning, the transportation field, and has successfully developed and applied a series of green materials
lighting, water use and other scenarios, and continuously consolidates the cornerstone of energy
management. such as solid waste-based soil stabilizers, post-modifiers for emulsified asphalt, and rubber
In 2025, the group consumed 10198.77 MWh of electricity for business and office use, 8977 GJ of powder composite modified asphalt
heat, 255.70 tons of gasoline consumed by its own commercial vehicles and generators, and 81471
cubic meters of natural gas consumed by canteens and regional factories; the water consumption was
HNDI adheres to the core principle of "resource conservation and elimination of waste", deeply follows Case: Solid Waste-Based Soil Stabilizer
the SA8000 social responsibility standards, builds an all-dimensional energy management system
with a systematic thinking, and promotes the integration of green and low-carbon concepts into the
entire operation process through three paths of system improvement, technology empowerment and
cultural infiltration, striving to build a resource-saving and environment-friendly enterprise, and
laying a solid foundation for the high-quality expansion of the group's dual-carbon business.
Efficient Recycling of Office Resources
Comprehensively implement paperless
office, realize electronic circulation of
documents through the online approval Case: Post-Modifier for Emulsified Asphalt
system, encourage double-sided
printing of paper and recycling of waste
paper to reduce the consumption of
paper resources; fully cover energy-
saving LED lamps in office areas and
underground garages, scientifically
classify office waste, standardize
transportation and disposal, and
promote resource recycling.
Case: Rubber Powder Composite Modified Asphalt
Green and Low-Carbon Travel
Relying on the technical achievements of rubber asphalt, HNDI has designed waste tire rubber
Optimize the management of official vehicles and realize the sharing of official vehicles through powder composite modified asphalt, which is suitable for scenarios such as asphalt mixtures and
stress absorption layers.
fleet services; promote low-carbon travel methods such as public transportation, carpooling, and
trains instead of planes, reduce carbon emissions from the entire travel process, and form a
circular optimization model of "travel-energy consumption-emissions".
New Energy Power Design
Guided by the national green, low-carbon and sustainable development strategy, oriented by market demand
and value creation, and driven by technological and model innovation, we will create first-class products and Governance
provide first-class services in the fields of traditional energy power business and new energy formats such
as photovoltaic power generation, wind power generation, electrochemical energy storage, and new energy Governance Bodies and Personnel
storage, and strive to become a one-stop solution provider for energy power.
Management Governance Body and Job Responsibilities and Work Progress
New Energy Power Cases Level Composition
Dual-carbon Work Leading Group, with Determine the major development directions and key business projects of the group's
the group's general manager as the dual-carbon strategy services, and ensure that dual-carbon services are incorporated
Decision- group leader and the general manager into the group's long-term development plan;
Case: Xinjiang Akto Photovoltaic Energy Storage Integrated Project
Making Level of Henan Carbon Emission Rights Regularly review the group's dual-carbon business performance, evaluate the potential
Service Center as the deputy group risks and opportunities of dual-carbon services to the group's business, and adjust dual-
Construct a centralized photovoltaic leader. carbon strategies and decisions in combination with policy orientations.
power station with a capacity of 600MWp,
Lead various production departments and RandD teams to specifically carry out dual-
supporting the construction of a
Henan Carbon Emission Rights carbon-related businesses, and be responsible for promoting the implementation of
department, coordinating relevant transformation of technical achievements;
storage station and a 220kV booster business and functional teams such Establish a communication and collaboration mechanism for dual-carbon business
as the Engineering Technology
Execution Level among various departments, supervise the timely development of dual-carbon projects,
station. Research Institute, Technical Quality control the progress of each node, organize project acceptance, file business process
Department, Ecological and data and technical achievements, and do a good job in carbon data management and
Environmental Engineering Design intellectual property protection;
Institute, and Energy and Power
Summarize the problems arising in the group's dual-carbon strategy services, put
Engineering Technology Research
forward corresponding solutions and organize personnel to carry out special training and
Institute.
problem-solving.
Case: Liangshan Prefecture Phase I 820MW Wind Power Project
Construct a centralized wind power generation project with a scale of
Personnel from various production
Cooperate in carrying out dual-carbon-related work according to business needs,
Collaboration departments such as the Finance formulate special work plans, and promote the work as scheduled
preparation of the project proposal and the erection of wind Level Department, Marketing Department,
and Human Resources Department.
measurement towers for wind measurement.
Case: Huojia County Shizhuang Town Mengshan 200MW/400MWh Shared Energy Storage Project
Professional Skills and Capabilities
Construct 200MW/400MWh energy storage The group employs technical and management talents with relevant professional knowledge and practical
experience in dual-carbon management, low-carbon technology RandD, carbon accounting and verification, ESG
and supporting facilities, and build a new consulting, etc., who are responsible for formulating dual-carbon technology development plans, evaluating dual-
of dual-carbon business. Establish and improve a sound training mechanism for professional dual-carbon talents,
line. and promote the dual improvement of technical and management capabilities of high-level dual-carbon talents
through structured training methods such as systematic training, industry exchanges and seminars, and practical
training on key projects, continuously optimize the structure of the dual-carbon talent echelon, and provide
sustainable human resource support for dual-carbon strategy services.
Case: CRCC Charging Station Project
Set up 48 charging parking spaces in Xinwan Plaza, Reporting, Supervision and Assessment
The group has established a dual-carbon business progress tracking and dynamic feedback system, requiring
Zhengzhou City. It combines liquid-cooled ultra-fast
Henan Carbon Emission Rights Service Center and various collaborative departments to regularly report the
charging and DC fast charging. Among them, the maximum progress of dual-carbon projects, real-time feedback problems arising in business promotion, rectification
measures and phased achievements, and realize transparent management of the dual-carbon business process
single-gun output power of DC fast charging is 180kW, and through regular meetings and special reports. Build a dual-carbon business assessment and expert management
the maximum single-gun output power of liquid-cooled system, implement differentiated assessment and quantitative evaluation, focus on core indicators such as dual-
carbon project performance rate, carbon service quality, and achievement transformation efficiency, promote the
ultra-fast charging is 600kW. dual wheel drive of dual-carbon technology RandD and service implementation, accelerate the transformation of
dual-carbon achievements, and ensure the scientificity of dual-carbon decisions.
Opportunity Impact Assessment Results and Response Strategies
Combined with the national dual-carbon strategic orientation, industry development trends and the group's
Risks and Response Measures own advantages, accurately identify various opportunities faced by dual-carbon strategy services, evaluate
Combined with the characteristics of dual-carbon strategy services, the group focuses on
their impact on the group, and formulate targeted response strategies to promote the high-quality
physical risks and transition risks, establishes and improves a risk prevention and control system,
development of dual-carbon businesses.
clarifies the specific manifestations, impacts and response measures of various risks, and
ensures the steady progress of dual-carbon strategy services.
Opportunity Potential Financial
Specific Opportunities Impact Time Response Measures
Risk Impact Potential Financial Category Impact
Specific Risks Response Measures
Category Time Impact
Acute Physical Risks: Extreme weather Establish an extreme weather early warning Strengthen policy docking and actively strive
Increased mechanism, and make preparations for project The state and local for policy preferences and special fund
(heavy rain, high temperature, typhoon, Short project costs, protection and equipment backup in advance; governments have increased Increased support;
etc.) leads to the suspension of dual- -term liquidated Optimize project schedule planning and reserve policy support for the dual- operating Relying on Henan Carbon Emission Rights
carbon projects and damage to carbon damages for emergency buffer periods; Policy Support carbon field, with the income, policy Service Center, layout policy-oriented
monitoring equipment, affecting carbon performance
Medium to
Physical Purchase relevant insurance for key equipment and Opportunities expansion of the carbon subsidy businesses such as carbon trading and CCER
data collection and project performance. Long-term
projects to reduce losses. market, the restart of CCER, income development;
Risks
the implementation of low- Standardize dual-carbon information
carbon subsidies and disclosure in strict accordance with disclosure
Chronic Physical Risks: Long-term Strengthen the research on long-term climate trends, mandatory disclosure policies. requirements to improve compliance and
Decreased
climate warming, water shortage, etc. lead optimize the layout of dual-carbon projects, and give credibility.
Medium to operating
to lower-than-expected returns of low- priority to projects with strong climate risk resistance;
Long- income,
carbon projects (such as new energy Diversify the layout of dual-carbon businesses to
term reduced
supporting facilities and carbon sink reduce dependence on a single project;
investment
projects), affecting the sustainability of Continue to promote low-carbon technological
returns
dual-carbon services. innovation to improve the risk resistance of projects. Increase investment in dual-carbon
The deep integration of digital technology RandD, focusing on digital carbon
and intelligent technologies Increased accounting, intelligent carbon management
Establish a dual-carbon policy tracking and research operating
Increased mechanism, with Henan Carbon Emission Rights Technological with the dual-carbon field and and other fields;
Medium to income,
Policy Risks: The update and iteration of compliance Service Center taking the lead in dynamically adapting the rapid development of Establish an industry-university-research
Innovation Long-term improved
dual-carbon-related policies (carbon Medium to costs, to policy changes; green and low-carbon cooperation mechanism to promote the
increased Opportunities technologies provide support technical transformation and application of low-carbon
accounting standards, carbon trading Long- Strengthen compliance training to improve the team's
business for the upgrading of dual- barriers technological achievements;
rules, disclosure requirements) lead to term policy interpretation and implementation capabilities;
increased business compliance costs. adjustment Layout dual-carbon businesses in line with policy carbon services. Upgrade the dual-carbon service technology
costs orientations in advance to reduce the impact of policy system to improve service efficiency and
adjustments. quality.
Hire professional lawyers in the dual-carbon field and
Legal Risks: The improvement of dual- establish a legal compliance review mechanism;
Fines, The demand for services such Optimize the dual-carbon service product
carbon-related laws and regulations leads Medium to Standardize the contract management of dual-carbon
increased as carbon peaking and carbon system to cover the full-scenario needs of
to legal disputes in carbon performance, Long- businesses and clarify the rights and obligations of Significant
legal litigation neutrality plans, carbon government, enterprise, and engineering
carbon trading and other links, or penalties term both parties; increase in
costs Market Demand accounting, and carbon asset ends;
for non-compliance. Strengthen legal compliance training for all employees Medium to operating
to prevent compliance risks. Opportunities management from Long-term Expand emerging markets, focusing on zero-
governments, parks, and income, carbon parks, green buildings, zero-carbon
enterprises is growing rapidly, increased transportation and other fields;
Increase investment in dual-carbon technology and the demand in emerging market share Strengthen customer development and
RandD, track cutting-edge industry technologies, and fields is prominent. maintenance to improve customer stickiness.
Technological Risks: The rapid upgrading update technologies and equipment in a timely
and updating of low-carbon technologies Decreased
manner;
and the upgrading of carbon accounting Medium to service
Establish an industry-university-research
technologies lead to backward existing Long- competitivene Strengthen cooperation with universities,
cooperation mechanism, strengthen the construction The trend of cross-industry
technologies and equipment or difficulties term ss, reduced research institutions, and leading industry
of technology transformation platforms, and improve and cross-field collaborative
in technology transformation, affecting operating enterprises to build a dual-carbon technology
the efficiency of technology transformation; development in the dual- Increased
service quality. income RandD and transformation platform;
Transition Conduct regular technical training to improve the Industry carbon field is obvious, and operating
Medium to Promote the deep integration of the group's
Risks technical level of the team. Collaboration the integration of industry, income,
Long-term main engineering consulting business with
Opportunities university, research and improved
dual-carbon services to achieve collaborative
application is deepened, cooperation
Strengthen the integrated advantage of "engineering development;
providing broad space for income
consulting + dual-carbon services" and create Participate in the formulation of industry
Market Risks: The increase in dual-carbon Decreased business expansion. standards to enhance industry discourse
differentiated service products;
service institutions leads to intensified operating power.
Improve service quality and efficiency, reduce costs
homogeneous competition or changes in Medium- income,
and increase efficiency, and enhance core
customer demand, resulting in a decline in term decreased
competitiveness;
market share and project returns. market share
Strengthen market research, accurately meet
customer needs, and expand emerging dual-carbon Benchmark the requirements of the
service fields. guidelines, improve the dual-carbon
The implementation of the information disclosure system, and improve
Disclosure guidelines for the preparation Improved
disclosure quality;
Upgrade of sustainable development brand value,
Establish a dual-carbon service quality control Medium to Strengthen disclosure capacity building and
reports by the Shanghai, increased
system, and strictly control the links of carbon data Opportunities Long-term cultivate professional disclosure talents;
Shenzhen and Beijing Stock cooperation
Reputational Risks: Damage to the group's accounting and project performance; Take standardized disclosure as an
Customer Exchanges has promoted the opportunities
brand reputation and impact on customer Medium to Timely handle customer complaints and demands, opportunity to strengthen the brand image and
cooperation due to distorted carbon data, loss, reduced expand high-end services such as ESG
Long- take the initiative to disclose relevant information
inadequate project performance, cooperation consulting.
term about dual-carbon businesses, and improve
substandard service quality, etc. opportunities
transparency;
Strengthen brand building, create benchmark dual-
carbon service projects, and enhance brand credibility.
Management of Related Impacts, Risks and Opportunities Consulting Service Cases
The group has established a comprehensive and multi-level management system to coordinate the response
to various risks and opportunities. Through the closed-loop management of "identification-evaluation- Case: Standard Release
response-monitoring", led by the Dual-carbon Work Leading Group and specifically responsible by Henan
Carbon Emission Rights Service Center, it regularly identifies risks, formulates differentiated response Complete the compilation and release of group standards including "Guidelines for Enterprise Carbon Asset Management",
"Guidelines for the Establishment of Zero-Carbon Factories in the Papermaking Industry" and "Guidelines for ESG (Environmental,
measures, establishes emergency disposal mechanisms and dynamically optimizes control strategies to Social and Governance) Evaluation of Listed Companies".
ensure the steady progress of dual-carbon businesses.
Case: Compilation of the Implementation Plan for the Construction of a "Waste-Free City" in Xinxiang City
Dual-carbon Consulting Projects
Conduct preliminary ?eld investigations in Xinxiang City, investigate the generation, utilization and
HNDI focuses on dual-carbon strategic needs, deeply cultivates the field of professional consulting services, disposal of industrial solid waste, agricultural solid waste, hazardous waste, etc. in Xinxiang City, put
provides customized and full-process green and low-carbon solutions for different subjects and scenarios, forward the main problems and challenges faced by the construction of a "waste-free city" in Xinxiang City,
and determine the construction goals in combination with the actual situation of Xinxiang.
and implements a number of benchmark consulting projects.
Consulting Service Cases
Case: Application for National-Level Zero-Carbon
Park in Yudongnan High-Tech Zone Case: Lankao to Shenqiu Zero-Carbon Expressway Carbon Asset Development
Consolidate the carbon asset development business, expand value-added services such as full-process carbon asset management,
Take the lead in compiling the application report and Build a benchmark zero-carbon expressway project, set carbon trading strategies, and carbon performance risk control, deepen the coverage of key industry customers, continuously tap the value
construction plan for the national-level zero-carbon park up a professional technical team to accurately calculate of carbon assets, and help enterprises achieve compliant performance, efficiency improvement and low-carbon high-quality
in Yudongnan High-Tech Zone, helping Yudongnan High- development.。
the full-life cycle carbon emissions of expressway
Tech Zone successfully shortlist the recommended list of
construction, achieve carbon neutrality through the
national-level zero-carbon parks in Henan Province (the
number of recommendations in the province is strictly implementation of carbon emission reduction measures Asset Development Cases
controlled within 2), providing solid support for the green and the cancellation of carbon credit quotas.
and low-carbon transformation of the park and the Case: Research on Other Carbon Sink Development Projects
comprehensive green transformation of economic and Case: Forestry Carbon Sink Development Projects
social development. Relying on the new methodologies of the Ministry of Ecology and
Case: Management of the Atmospheric Continue to deepen the carbon asset development business of Environment to expand project types, conduct negotiations and
afforestation carbon sink projects, and complete the bidding and cooperation with units such as Luoyang Yi'an Coal Mine,
Pollution Prevention and Control
Case: Compilation of the Integrated List of Air Pollutants plan compilation of afforestation carbon sink projects in various Xinyang Guangshan County Vein Industrial Park, Hubei Aonong
Fund Project Library places such as Mulan Paddock in Hebei, Dongsheng District of Group, and Junhe Environmental Protection, covering carbon
and Greenhouse Gases in Luohe City in 2024 asset development in multiple fields such as agricultural and
Ordos, Fengrun District of Tangshan, Huguan County, and Song
County of Luoyang. forestry biomass grid-connected power generation combined
Provide technical support for the management of the heat and power, large-scale pig farm manure biogas recovery,
atmospheric pollution prevention and control fund project centralized treatment of agricultural waste, and medium-deep
geothermal downhole heat exchange heating.
library for the Department of Ecology and Environment.
Indicators and Targets
(1) Short-term Targets (1-2 years): Improve the dual-carbon governance system and business processes, improve the
risk prevention and control and opportunity management mechanism; achieve full coverage of carbon inventory and
carbon accounting services for key customers; complete the initial construction of a professional dual-carbon talent team
and improve service capabilities; strictly complete the special disclosure of dual-carbon information in accordance with the
guidelines to improve compliance.
(2) Medium-term Targets (3-5 years): Build a first-class dual-carbon comprehensive service platform in the central
Case: Environmental Protection Ultra-Low Emission Transformation
region, significantly enhance the industry influence of Henan Carbon Emission Rights Service Center; form a number of
of Daqing Thermal Power Group Gaoxin Thermal Power Co., Ltd. benchmark projects and technical achievements with industry influence, take the lead in or participate in the formulation of
a number of local and industry dual-carbon standards; build a sound dual-carbon technology RandD and transformation
Through the denitrification, desulfurization, dust removal and other
system, with core technologies reaching the advanced level in the industry.
environmental protection ultra-low emission transformations of
(3) Long-term Targets (More than 5 years): Become a leading domestic dual-carbon comprehensive service provider,
realize the diversified and international layout of dual-carbon businesses; help Henan Province and the central region
achieve the carbon peaking and carbon neutrality goals as scheduled, and provide important support for the
implementation of the national dual-carbon strategy; build a dual-carbon brand with core competitiveness, and realize the
coordinated development of economic, social and environmental benefits.
Governance
Governance Institutions and Personnel
The Group deeply integrates scientific and technological innovation into its strategic planning and daily operations, and
has established a three-level linked innovation governance system: High-Tech Work Leading Group – Engineering
Technology Research Center – Production Departments, with clear authority and responsibility boundaries at each level
to ensure efficient allocation of innovation resources and orderly progress of RandD work.
High-Tech Work Determine major RandD directions and core innovation projects of the
Leading Group, with the Group, and incorporate scientific and technological innovation into the
Decision- Group General Manager overall long-term development strategy;
as Group Leader and Regularly review the Group’s scientific and technological innovation
Making Dean of Engineering performance, systematically assess potential risks and opportunities
Technology Research brought by technological innovation to business development, and
Level dynamically adjust innovation strategies and decision-making
Institute as Deputy
Group Leader arrangements.
Coordinate RandD teams across RandD centers, laboratories and
production departments, focusing on key technical breakthroughs,
engineering technology application research and the
Led by the Engineering commercialization of scientific and technological achievements;
Execution Technology Research Establish cross-departmental communication and coordination
Level Institute mechanisms, supervise RandD milestones throughout the process,
organize achievement acceptance and document archiving, and
strengthen full-process intellectual property protection;
Summarize difficulties in scientific and technological innovation,
develop targeted solutions, conduct special training and technical
consultations to improve the innovation capability of all employees.
Relevant personnel from
various production units, Promote scientific and technological innovation in line with actual
Human Resources business needs, formulate and implement special work plans;
Collaboration Collect and organize technical data in a timely manner during RandD
Department, Finance
Level Department and to ensure the completeness, accuracy and full traceability of RandD
Technical Quality data.
Department
Professional Skills and Competence
The Group has set up an Expert Technical Committee composed of senior experts in scientific research and development,
responsible for formulating technology development plans, evaluating the effectiveness of the innovation system, ruling on
major technical matters, and guiding the implementation of innovation practices. Its performance procedures are
standardized under the Measures for the Administration of the Expert Technical Committee.
In mid-August, a notice was issued on the adjustment of members of the 2025 Expert Committee and Professional
Technical Committee. After the adjustment, the Expert Committee has 32 members, with new investment and financing
experts added. The number of Professional Technical Committees has been adjusted to 18, highlighting business
scenarios. New majors including industrial and investment and financing have been added; subgrade and pavement
engineering, geological survey have been merged into Geology and Geotechnical Engineering; coal processing and
utilization, mining engineering, mining equipment have been merged into Coal and Mining Engineering. The total number of
members is 180, including 15 cross-major personnel.
Reporting, Supervision and Assessment Impact, Risk and Opportunity Management
A full-process tracking system for RandD progress has been established, requiring all RandD-related units to regularly report work
progress, technical data and existing problems. Regular meetings and special reports ensure transparent management of the RandD The Company is committed to building a full-life-cycle integrated service industrial chain in the engineering
process.
A “dual-track” RandD assessment and expert management system has been constructed, implementing differentiated and quantitative field, adhering to the dual-wheel-driven development strategy of design consulting services, technology
assessment focused on core indicators such as RandD progress, achievement transformation and technological innovation value. It RandD and achievement promotion. It thoroughly implements the Implementation Plan for Comprehensive
promotes the dual-wheel drive of technology RandD and achievement commercialization, ensuring scientific and forward-looking
technology decision-making. Innovation Program, focusing on key directions such as green and low-carbon transformation, intelligent
A dual supervision mechanism for the RandD process has been established. Combining internal technical review and dynamic evaluation by construction, digital intelligence and engineering operation.
the Expert Technical Committee, it conducts full-process control over major technical plans and the operation of the quality system,
ensuring authentic and traceable technical data and improving the quality of RandD achievements.
Relying on technologies of strategic emerging industries including cloud computing, big data and artificial
Strategy intelligence, the Company systematically carries out all-round and multi-level technological breakthroughs
and business scenario expansion. It actively encourages all employees to explore boldly and innovate
Risks and Countermeasures vigorously in technology, management, business and other aspects.
Risk Specific Risks Time Potential Countermeasures
Category Horizon Financial Outstanding Achievements in Innovation Activities
Business development is closely Strengthen forward-looking research on policies and markets, promote
related to national infrastructure Decrease in business transformation and upgrading, and enhance risk resilience and
investment. Policy adjustments
Medium to
operating income development sustainability. The Group successfully held the 7th "Innovation Month and
Policy Risk Long Term Increase investment in core technology RandD, accelerate the
may lead to fluctuations in
market demand. transformation of innovative achievements, develop emerging business Innovation Forum". A total of 20 innovative achievements were
sectors, and foster new profit growth points.
released, and 19 innovation projects from various business
Deepen market research and maintain close communication with divisions, research institutes and functional departments were
Rapid technological iteration in industry experts and clients to ensure RandD directions accurately
the industry; insufficient core Decline in core match market demands. presented successively, covering key fields such as digital
Technology Medium to Continuously track cutting-edge technological trends, increase RandD
technology reserves or competitiveness
Risk Long Term funding and resource input, and consolidate technological leadership.
difficulties in commercializing and decrease in
Establish in-depth industry-university-research cooperation platforms,
transformation, intelligent AI, green and low-carbon
RandD achievements. operating income
improve technology transformation mechanisms, and enhance the
industrialization efficiency of scientific and technological achievements.
development, overseas business, and emerging market
expansion.
Continuously optimize service quality and operational efficiency to
Intensified industry competition; Decline in market reduce costs, improve efficiency and enhance market competitiveness.
competitors launch more Medium share and Strengthen independent innovation capabilities, focus on differentiated
Market Risk c o m p e t i t i v e t e c h n o l o g i e s o r RandD, and build core technological barriers.
service solutions.
Term decrease in
operating income Accelerate overseas market layout, expand international business, and Steady Enhancement of Innovation Strength
reduce reliance on a single market.
The Group regards scientific and technological innovation and achievement transformation as the second growth curve for
its transformation and development. It is equipped with 35 R&D platforms of various types, including Key Laboratories of
Reduced RandD Formulate attractive talent recruitment and incentive plans, improve the
Loss of core RandD personnel
Medium efficiency and salary and welfare system and career development paths. Henan Province. Specifically, there are 13 provincial-level scientific research platforms, 9 provincial-level industrial R&D
Talent Risk leads to unstable RandD teams
Term disrupted Strengthen corporate culture development, foster an open and inclusive
and hindered innovation
technological innovation atmosphere, provide a high-quality working environment and platforms, 8 municipal-level scientific research platforms, and 4 achievement transformation service platforms, which
progress.
inheritance growth space, and enhance the sense of belonging of core talents.
provide solid platform support for technological breakthroughs and industrial transformation.
Opportunity Impact Assessment and Response Strategies
Key Performance Indicators of Scientific and Technological Innovation in 2025
Opportunities Time Horizon Potential Financial Countermeasures
Newly authorized patents: 50
The state and local governments have Closely follow policy guidance, actively seek preferential
intensified policy support for
Growth in operating
policies and special funds, and promote the application of New invention patents: 18
Policy Medium to income and
innovative achievements.
support
transportation, green and low-carbon Long Term realization of policy Valid invention patents in force: 184
development, digital transformation and Focus on key policy-supported areas, conduct RandD and
dividends RandD investment: 7273.0 ten thousand CNY
other fields. business expansion, and seize market opportunities.
Digital transformation and new Increase RandD investment, focus on smart transportation,
RandD investment as a percentage of operating revenue: 4.31%
infrastructure are accelerated; green Accelerated business green low-carbon materials, develop digital platforms and Number of RandD personnel: 412
Technological a n d l o w - c a r b o n d e v e l o p m e n t h a s Medium to core technologies.
Long Term
upgrading and
Deepen industry-university-research cooperation, accelerate
Proportion of RandD personnel: 13.23%
lnnovation b e c o m e a m a i n s t r e a m t r e n d , a n d improved pro?tability
technological integration has created innovation and transformation, and promote large-scale
new opportunities. application of green technologies.
Demand for technological innovation in Accurately grasp emerging market demands, optimize service
infrastructure continues to grow; Expanded market models, and develop market-adapted technologies and
Market emerging sectors such as smart Medium to space and optimized products.
Demand transportation, green buildings and low- Long Term revenue structure Expand emerging businesses, strengthen market penetration, Fruitful Achievements in Project Excellence
altitude economy are rising rapidly. and foster new growth drivers.
The Belt and Road Initiative is further
International advanced, and overseas infrastructure Medium to
Increased
international market
Accelerate international layout, strengthen management and
technical support of overseas regional centers.
The Group won more than 170 honors throughout the year, achieving a zero breakthrough in
demand is strong, providing a broad Long Term
Development international stage for technological share and enhanced Promote global application of core technologies, participate in
innovation.
brand influence global projects, and enhance international competitiveness. international awards, including 46 national-level awards.
Summary of Partial Awards of the Company in 2025 Partial Award Certificates
Awarded Project Name Award Content Level Grade Issuing Authority
Design and Green Construction of Large IRF International Road Award, Bridge and
Height Difference Three-Layer Spiral Tunnel International Other International Road Federation
Tunnel Category
Group in Deep Mountainous Areas
Innovative BIM Application of Integrated
The 14th "Longtu Cup" National BIM National China Graphics Society
Design and Construction of Xuchang Ring Third Prize
Competition, Comprehensive Group
Expressway
Innovative Application of BIM Technology in The 6th BIM Competition for Engineering
Intelligent Container Terminal of Zhoukou Port National First Prize China Construction Enterprise
Construction Industry (BIM Forward Design
Central Port Area Management Association
Category)
Full-Scenario Application and Innovation of The 6th BIM Competition for Engineering
Second China Construction Enterprise
BIM Technology in Zhengzhou-Luoyang Construction Industry (Transportation – National
Prize Management Association
Expressway Highway and Railway)
Innovative Practice of BIM Digital The 6th BIM Competition for Engineering
National Second China Construction Enterprise
Empowerment in the Whole Process of Zheng- Construction Industry, Transportation
Prize Management Association
Luo Expressway Construction Category
BIM-Based Innovative Application of The 6th BIM Competition for Engineering
Construction Industry, Transportation National China Construction Enterprise
Integrated Design and Construction of Zheng- Third Prize
Category Management Association
Luo Expressway
Luanchuan-Lushi Expressway National
Level Evaluation Prize Management Association
Xuchang-Xinyang Expressway 2025 Engineering Construction Project Design China Construction Enterprise
National Third Prize
Level Evaluation Management Association
Mianchi-Luoning Section of Mianchi-Xichuan 2025 Engineering Construction Project Design National China Construction Enterprise
Third Prize
Expressway Level Evaluation Management Association
Luanchuan-Shuanglong Section of 2025 Engineering Construction Project Design China Construction Enterprise
National Third Prize
Zhengzhou-Xixia Expressway Level Evaluation Management Association
Lianyungang-Huoerguosi and Hubei 2025 Engineering Construction Project Design China Construction Enterprise
National Third Prize
Expressway Link Level Evaluation Management Association
Fengqiu-Yuanyang Section of Lankao- 2025 Engineering Construction Project Design China Association of Highway
National Third Prize
Yuanyang Expressway Level Evaluation Survey and Design
Survey of Xixia-Xichuan Section of Mianchi- China Association of Highway
Xichuan Expressway Survey and Design
Survey of Mianchi-Luoning Section of Second China Association of Highway
Mianchi-Xichuan Expressway 2025 Excellent Highway Survey National
Prize Survey and Design
Survey of Shangcai-Luoshan Section of Second China Association of Highway
Anyang-Luoshan Expressway Prize Survey and Design
Shangcai-Luoshan Section of Anyang- China Association of Highway
Luoshan Expressway 2025 Excellent Highway Design National First Prize
Survey and Design
Mianchi-Luoning Section of Mianchi-Xichuan 2025 Excellent Highway Design Second China Association of Highway
National
Expressway Prize Survey and Design
Xixia-Xichuan Section of Mianchi-Xichuan Second China Association of Highway
Expressway Prize Survey and Design
Phase I of Puyang Section of Puyang-Yangxin China Association of Highway
Expressway
"Shijin Cup" BIM Technology Competition for
Innovative BIM Construction Application National Third Prize China Association of Highway
Transportation Industry (Excellent BIM
Ushering in Digital Future of Highways Survey and Design
Application in Highway Engineering)
Research and Application of Key Technologies 2024 Mao Yisheng Science and Technology Grand Mao Yisheng Science and
for Green Recycled Asphalt Materials Award – Transportation Science and National Technology Education
Prize
Technology Award Foundation
Yellow River Super Bridge of Puyang-Yangxin China Communications and
Expressway (Phase II, Puyang Section) Excellent Highway Survey and Design National First Prize Transportation Association
Project of Zhoukou Port Central Port Area China Communications and
(Phase I) Excellent Highway Survey and Design National First Prize Transportation Association
Space-Sky-Ground Collaborative Road The 1st Innovation Application Competition of Second Vocational Qualification Center
Intelligent Perception and Active Prevention Comprehensive Transportation Large Model National
Prize of the Ministry of Transport
System Based on UAV Inspection Agents
Event Detection System Based on Vision The 1st Innovation Application Competition of
Comprehensive Transportation Large Model National Excellence Vocational Qualification Center
Large Model Award of the Ministry of Transport
Agents
AI Assistant for Expressway Safety Production The 1st Innovation Application Competition of Excellence Vocational Qualification Center
Comprehensive Transportation Large Model National
Based on Large Model Award of the Ministry of Transport
Agents
Technology Transfer and Knowledge Sharing
Relying on its technological advantages in transportation, urban construction, energy, architecture, water
conservancy, environmental protection and other fields, the Group, while pursuing its own steady and rapid
development, actively undertakes responsibilities for industrial development through industry forums, Supply Chain Management System
seminars, participation in standard formulation and other forms, promotes exchanges between upstream and Planning and Coordination
downstream enterprises in the industry, and increases cooperation opportunities. Integrate the whole supply chain process through the project integrated management platform, realizing dynamic
coordination of supplier admission, procurement plans, procurement budgets and production plans to improve overall
Cases of Technology Transfer and Knowledge Sharing efficiency.
Supplier Hierarchical Management
Establish a classification mechanism for AA, A, B and C-level suppliers, with dynamic evaluation based on quality,
Case: The Group issued 13 local standards delivery, cost and other indicators. Long-term cooperation is prioritized with strategic suppliers (AA-level).
Performance Monitoring
In 2025, the Company issued 13 local standards, among which three standards were Conduct dynamic KPI assessment on suppliers, including on-time delivery rate (≥98%) and qualified quality rate (100%).
released with the Company as the first completing entity: Those failing to meet standards are required to submit rectification plans.
Technical Specification for Construction of Cold-Laid Anti-Skid Abrasion Layer with
Steel Slag Aggregate
Technical Code for Design and Construction of Highway Prefabricated Pile-Slab
Supply Chain Risk Management Measures to Ensure Safe and Stable Supply Chain
Bridges
Technical Guide for Application of Highway Tunnel Information Model
In 2025, the Company applied for 4 local standards, among which Technical Specification for Full-Hole Prefabricated Steel- Risk Identification and Early Warning Technology Empowerment
Concrete Composite Girder Bridges was approved for project establishment. Introduce an information platform for dynamic management to
Identify potential risks (e.g., credit rating,
ensure data transparency and tamper-proofing.
Case: Participated in formulating 4 industrial standards financial status) through big data analysis,
Compliance and Audit
and set risk thresholds to trigger an early Conduct regular ESG compliance reviews on suppliers, including
In 2025, the Company participated in formulating 4 industrial standards: warning mechanism. environmental qualifications and labor rights. A total of 15 non-
Solid Waste-Based Cementitious Materials for Roads and Technical Specification for Rubber Asphalt Pavements are pending
approval and issuance; Diversified Supply Strategy compliant suppliers have been eliminated in the past two years.
Alkali-Slag Cementitious Materials has completed public comment solicitation; Adopt a “1+N” supply model for key service Long-Term Agreement Lock-In
Detailed Rules for Design of Reconstruction and Expansion of Expressways has completed public comment solicitation. Sign framework agreements with high-quality suppliers to
procurement (1 main supplier + N alternatives)
stipulate price fluctuation ranges and reduce the impact of
to avoid over-reliance on a single source.
market volatility.
Intellectual Property Protection
The Company has established a RandD and intellectual property management system, built a technology research and
development platform, and set up a scientific and technological achievement transformation base to support business Promoting Sustainable Development of the Supply Chain
technology breakthroughs, application and promotion of achievements, and expand the Company’s leading business
advantages. Admission Standards
The digital archive has conducted field matching and batch maintenance for award-winning project modules, and entered Add a “green certification” threshold,
information of more than 1,200 award-winning project items with complete information. requiring suppliers to provide ISO 14001 Key Supply Chain Performance in 2025
The knowledge uploading, approval and matching mechanism of all production departments has been improved to simplify environmental management system
processes and improve the efficiency of knowledge retrieval and reuse. To ensure the timeliness of the knowledge base, certification or third-party environmental
production departments are organized to sort out and count knowledge entries to be updated and added. Standards, assessment reports. Total number of suppliers: 1508
specifications and project summaries are updated and uploaded in batches throughout the year. Assessment Mechanism Number of annual contracted suppliers: 275
Add “sustainable development weighting” in
Suppliers with quality management system certification: 516
the annual evaluation.
Indicators and Objectives Design-Stage Collaboration Suppliers with environmental management system certification: 516
Jointly develop low-carbon processes with Suppliers with occupational health and safety management system
A basic integrated technical service system has been formed, with comprehensive improvement in service quality and suppliers, such as secondary utilization of
significant increase in service added value. Cultivate a number of provincial and ministerial-level technical talents with solid waste materials. certification: 516
industry influence, successfully apply for a number of award-winning projects above the provincial and ministerial level Production-Link Monitoring Local procurement ratio: 52.30%
relying on key projects, and apply for a number of innovative technology platforms focusing on new trends in industry Require suppliers to reduce energy
Percentage of suppliers implementing supplier management
development. consumption and achieve green, low-carbon
In terms of engineering and technological innovation, focus on technological research to improve the safety and resilience, and environmentally friendly operations. regulations: 98%
reduce costs and increase efficiency of projects in the fields of highways, municipal engineering, architecture, water Resource Sharing Supplier review coverage: 100%
transportation, water conservancy and energy; focus on 3D design and digital delivery for the update of survey and design Hold irregular green and low-carbon
technologies, emphasize the transmission and iteration of models and data throughout the whole life cycle of projects, and technology exchange meetings covering the
enhance the value of design; improve the application capacity of big data to empower comprehensive planning and Group’s production units and suppliers,
logistics consulting businesses; upgrade and expand the digital product system, strengthen the RandD of intelligent including green technologies and circular
products, enhance the construction of data governance and data operation capabilities, and accelerate the digital economy cases. Open the Group’s ESG
transformation and development of businesses. sustainable development training courses to
small and medium-sized suppliers.
Professional Skills and Competence
In terms of technical quality control, the Group has selected management personnel with professional knowledge and
experience to guarantee the high-quality progress of projects. It has implemented a lifelong quality commitment system for
The Group strictly abides by the Regulations on Ensuring Payment for Small and Medium-Sized project leaders, regularly held technical quality sharing meetings and training sessions to interpret policies and share
Enterprises and other relevant laws and regulations. It always upholds the core values of “integrity, quality improvement measures, strengthening the quality awareness of technical personnel while ensuring the board of
responsibility, and win-win cooperation” and is committed to building a fair, transparent, and trust- directors and management are informed of the latest developments in relevant fields. An Expert Technical Committee has
based supply chain cooperation ecosystem. We attach great importance to the legitimate rights and been established to be responsible for risk prevention and control, talent development, industry exchanges and other work.
interests of SME suppliers, and ensure a sound and stable cooperative relationship through
institutionalized and standardized management. During the reporting period, the Group performed all
Strategy
cooperation with SME suppliers in strict accordance with contractual agreements, making timely and full
payments. No complaints regarding arrears to SMEs or any record of being listed on the dishonesty list
of the National Enterprise Credit Information Publicity System occurred.
Risk Impact Assessment and Countermeasures
Risk Category Specific Risks Time Horizon Potential Financial Impact Countermeasures
Design fails to meet Strengthen design reviews, optimize design
Design Phase customer needs and Decrease in operating schemes from a full life cycle perspective, and
Long-term
Risk actual construction income apply digital technologies such as BIM to
conditions achieve design-construction collaboration.
Increase in operating Clarify inspection standards and conduct
Unclear inspection
Short-term expenses Decrease in acceptance strictly in accordance with design
Inspection and standards
operating income and specification requirements.
Acceptance
Establish standardized acceptance procedures
Phase Risk Non-standard Increase in operating
Medium-term to ensure a rigorous and comprehensive
acceptance process expenses
acceptance process.
Materials or services Establish a supplier evaluation system to
Increase in operating
provided by suppliers fail Medium-term regularly assess suppliers' reputation and
expenses
Supply Chain to meet requirements capabilities.
Risk Sign long-term cooperation agreements with
Increase in operating
Supply chain disruption Short-term suppliers to ensure the stability and timeliness
expenses
of material supply.
Monitor changes in laws and regulations and
Changes in laws and Increase in operating
Governance Legal and
regulations
Long-term
expenses
adjust project management measures in a
Compliance timely manner.
Risk Increase in operating Clarify key terms such as quality and
Unclear contract terms Medium-term
The Group has established a top-down quality and safety responsibility transmission mechanism, expenses construction period in contracts.
implementing a 4-level governance structure of Group – Technical Quality Department –
Production Units – Project Teams, with clear division of responsibilities and authorities at each Opportunity Impact Assessment and Response Strategies
level.
Governance Mechanisms and Personnel Opportunities Time Horizon Countermeasures Potential Financial Impact
Reduce project costs through quota Optimize the design process, introduce a
The company's legal representative bears leadership responsibility for technical Design design and optimized design schemes, customer feedback mechanism, establish
Decision Legal Representative, quality and safety. Medium-term, Increase in operating
Appoints the Chief Quality Officer to be fully responsible for quality and safety Phase strengthen design-construction a quota design system, and apply digital
-Making Level Chief Quality Officer Long-term income
management. Opportunity collaboration, and improve overall technologies to achieve
quality and efficiency. design-construction collaboration.
Inspection
Decrease in operating
Acts as the centralized management department. and Clarify inspection standards to ensure a
Clarify inspection standards and Short-term, expenses;
Technical Quality Formulates specifications, conducts technical reviews and quality sampling Acceptance rigorous and comprehensive acceptance
Management inspections. standardize acceptance procedures. Medium-term Increase in return on
Department Phase process.
Regularly convenes special quality and safety meetings to conduct in-depth investment
Level research and decision-making on major quality and safety issues, integrating Opportunity
quality and safety requirements into the company's overall development strategy. Establish a supplier evaluation system to
Optimize supply chain management, Increase in operating
Supply Chain Short-term, assess suppliers' reputation and
establish a high-quality supplier pool, income; Decrease in
Opportunity Medium-term capabilities, and sign long-term
and improve supply chain stability. operating expenses
cooperation agreements with suppliers.
Production units establish management teams to implement company systems,
Reduce legal risks and improve
organize training, control production risks, operate in accordance with procedures Monitor changes in laws and regulations
and conduct self-inspections to ensure product quality. corporate compliance by adjusting Increase in return on
Execution All Production Units, Long-term and adjust project management
Project team members are directly responsible for the technical quality and safety of Legal and project management measures in a investment
Project Teams the project in accordance with the Post Responsibility System for Project Personnel measures in a timely manner.
Level Compliance timely manner.
at All Levels.
Establishes a feedback mechanism to timely report to production units and company Opportunity Reduce disputes and enhance Clarify key terms such as quality and Decrease in operating
headquarters. corporate reputation by clarifying Medium-term construction period in contracts to avoid expenses; Increase in
contract terms. disputes. return on investment
Impact, Risk and Opportunity Management The Group has established company- List of Management System Documents
level and production unit (subsidiary)-
The Group has continuously optimized its quality management system, revised 32 system documents including the Project No. Level Document Name Status Responsible Department
level quality management system
Grading and Classification Management Measures, Production Management Control Procedure, Project Technical Quality 1
Quality, Environment, Occupational Health and
Valid Board Office
Control Procedure, Project Technical Quality Evaluation Management Measures, Design Change Management Measures, documents, covering all products and Safety Management Policy
Quality, Environment, Occupational Health and General Management
and Branch Comprehensive Management Control Procedure, organized the update of the list of compilation basis for support processes such as marketing, Safety Management Objectives Department
Quality, Environment, Occupational Health and
technical achievement documents, and continuously adjusted and improved management systems according to the transportation industry think tank, 3
Safety Management Manual
Valid Technical Quality Department
Company
Procedure Documents, Work Documents
company's current situation to ensure deep adaptation and effective implementation, providing standardized and
engineering technical services, digital 4
(Strategy, Safety, Operation, Finance, HR,
Valid
All Functional Departments and
normalized support for the company's management work. Technology, Quality, Procurement, etc.) and Business Centers
intelligent transportation, and scientific Records
Successfully maintained the certification registration of Quality Management System (GB/T 19001-2016), Environmental Administrative Documents, Rules and All Functional Departments and
Management System (GB/T 24001-2016), and Occupational Health and Safety Management System (GB/T 45001-2020). research and development, and 5
Regulations
Valid
Business Centers
Production
The AAA Certification of Quality Management System for Engineering Survey and Design Industry remains valid. continuously improves them. 6 Units
Relevant Management Systems, Documents and
Valid Production Units (Subsidiaries)
Records
(Subsidiaries)
List of Company Management System Certifications
Deepening the Full-Process Service Standard System
No. Certificate Name Certificate No. Status Issuing Authority
Centering on the entire customer service process, the Group has built a three-dimensional institutional system: strictly
controlling quality through pre-guidance and process control, improving management efficiency through dynamic
Beijing Zhongsheng
Certification Service Co., Ltd.
activities such as multi-level analysis meetings and post-project evaluations. Meanwhile, with the Customer Service
Beijing Zhongsheng
Certification Service Co., Ltd.
visits and high-level return visits to ensure accurate and in-place post-service, ultimately forming a full-process, high-
Beijing Zhongsheng
Certification Service Co., Ltd.
In the three stages of pre-sales, in-sales and after-sales, service items and contents are subdivided according to the
GB/T 19001 AAA Certification of Quality
Beijing Zhongsheng service stage and customer needs, promoting the establishment of customer relationships in each stage, better serving
Certification Service Co., Ltd. customers and achieving win-win cooperation. As shown in the table below:
and Design Industry
Full-Process Service Relationship Table
Product and Service Safety and Quality Risk Prevention and Management
Service
he Group actively assumes the main responsibility for quality and safety, establishes various quality and safety Service Item Service Content Suitable Customers
Stage
management systems, and promotes the continuous improvement of quality and safety management efficiency through
Strategic Provide strategic and industrial research results to support and serve
institutionalized and standardized means, providing a solid guarantee for the Group's high-quality development.
Cooperation development.
Strong scientific research and innovation strength, RandD achievements in
RandD Innovation Strategic
Main Quality and Safety Management Systems and Their Functions Pre-Sales application that meet expectations.
Customers
Technical Expert team to answer questions and provide highly professional consulting
Consulting services.
Quality and Safety Management System Name Function Scheme Research Project planning, investment estimation, financing mode, implementation plan.
Analyze potential risks of engineering projects, Production Timely response, fast survey and design progress, strong collaboration and tacit
Project Risk Management Regulations formulate preventive measures, and eliminate various Progress understanding between internal professions.
safety hazards. Good product quality, application of new technologies, new materials, new
Technical Quality
Classification of engineering project quality incidents, equipment, new processes, green and low-carbon.
Technical Quality Management Measures In-Sales All Customers
definition of responsibilities, and accountability. Good service attitude, high technical level, strong collaboration ability with
Personnel Quality
external participants.
Guide the company's work order and public safety
Overall Emergency Response Plan for Excellence High design level and quality, strong innovation ability, providing sufficient and
emergency response, prevent and reduce
Emergencies Creation necessary conditions for excellence creation.
emergencies and their damage and adverse effects.
Complete personnel, sufficient time, rich reporting forms, clear content, strong
Safety Accident Reporting, Investigation Work safety accident reporting, investigation and Design Disclosure
ability of reporting personnel.
and Handling Regulations handling procedures.
Professional team service, good attitude of design representatives, strong sense
After-Sale On-Site Service
Special Emergency Plan for Engineering Engineering project quality accident reporting, of responsibility, business and communication skills. All Customers
s
Technical Quality Emergencies investigation and handling procedures. High design quality, short service time, good service attitude, good professional
Design Change
Regulations on Safety education and Employee safety production education collaboration.
training and training Return Visit High frequency, high personnel level, strong on-site decision-making ability.
Established a Customer Information Management Platform to focus on monitoring the contract execution of strategic customers. Customer Satisfaction Evaluation
Satisfaction Measurement: Divided into two methods: contract execution process measurement and contract
performance result measurement. The contract execution process satisfaction measurement focuses on
process and phased result evaluation. The contract performance result satisfaction measurement focuses
on full-stage result evaluation. The customer satisfaction evaluation results of contract execution process
and contract performance result are independent, counted separately and complementary to each other.
a. Contract Execution
Main
Process Satisfaction Measurement Measurement
Measurement Weight Survey Evaluation Dimensions Remarks
Stage Aspect
Measurement Method
Applicable to key Customer
Evaluation Form If only the Customer
progress nodes of large 3. Personnel Quality
Evaluation Form or
and medium-sized Contract Post-Service
Execution External Quality Satisfaction
projects of strategic 3. Professions Needing Improvement;
Process Post-Service Questionnaire is
Established a Production Process Service Information Management Platform to customers. Surveys are Quality available, the
Satisfaction corresponding
conducted immediately
focus on serving strategic customers' projects. Questionnaire
weight is adjusted to
Representative Work;
after the completion of 100%.
key project nodes. Design Representatives
b. Contract Performance Result Satisfaction Measurement
Applicable to all types of customers of the company's completed contract performance projects (100%
production progress, 100% payment progress), covering all production units, surveyed every six months with
a sampling rate of not less than 95%.
Measurement Measurement Main Measurement
Weight Survey Evaluation Dimensions
Stage Aspect Method
Production Service (Weight 3/10);
Technical Quality (Weight 3/10);
Customer Satisfaction
Contract Project Team (Weight 1/10);
External Comprehensive 100%
Performance Result Project Leader (Weight 1/10);
Established a Post-Service Information Management Platform to focus on serving large and Questionnaire
Design Representative (Weight 1/10);
medium-sized projects of strategic customers requiring post-service. Overall Project Experience (Weight 1/10)
c. Loyalty Measurement
Applicable to all types of customers of the company's completed contract performance projects (100%
production progress, 100% payment progress), covering all production units, surveyed every six months with
a sampling rate of not less than 95%.
Measurement
Main Measurement Method Weight Survey Evaluation Dimensions
Stage
Brand Awareness Perception (1/10);
End of Contract Customer Satisfaction Company Competitiveness Perception (1/10);
Performance Comprehensive Questionnaire Willingness to Continue Contract (5/10);
Willingness to Recommend to Other Customers (3/10)
Summary of overall customer satisfaction and loyalty in the first half of 2025: The company's Information Security Management System and Operation
overall customer satisfaction and loyalty remain stable. To strengthen information security management, the Group has logically isolated the internal and external networks for
production and office use. In accordance with national cybersecurity classified protection requirements, it has initially built
network boundary intrusion prevention, virus protection and internal terminal behavior detection by deploying
cybersecurity products, and improved the information security management system through security risk assessment.
Key Performance Indicators of Customer Satisfaction (%) The Group strictly implements the requirements of the ISO/IEC 27001 Information Security Management System, has
formulated internal rules and regulations including the Information Security Management Measures , and obtained certification
for ISO/IEC 27001:2022. It has compiled an information security management manual and procedure documents, and
Average Satisfaction 98.06 participates in the annual ISO/IEC 27001 management system review.
No major cybersecurity incidents occurred during the reporting period.
Average Loyalty 97.96
Indicators and Objectives
Indicator Type Specific Objectives 2026
ISO 9001 Audit Certification Pass
Quality Management System
AAA Rating of Quality Management Grading Certification Maintain
Product Quality Pass Rate 100%
Project Comprehensive Evaluation Design Excellence Rate above 95% Above 95% Training and Promotion
Product Quality
Quality, Safety, Environmental Accidents 0 The Group has continuously strengthened information security training and publicity to improve all employees’
awareness and capability of information security prevention.Cybersecurity awareness training has been conducted on
Customer Satisfaction Improve common risks in work and daily life, including password security, QR code security and email security. Real cases are
explained and analyzed to enhance the safety awareness of all staff.
Customer Privacy Protection
The Digital Information Center takes the lead in working with all
departments to comprehensively identify security risks posed
by external parties to information assets and information
While driving robust business development through digital technologies, the Group attaches great importance processing facilities. Before approving access rights for
to the security of information and data. external parties, compliant control measures must be
implemented for identified risks.
Key Performance Indicators for Data Privacy Protection
For all scenarios involving physical and logical access to
information assets, the Digital Information Center shall sign a
Information Security Management Organization Relevant Party Confidentiality Agreement with cooperating
parties. The agreement clearly specifies internal management Number of information security training sessions: 4
requirements and information security standards for the
To ensure the effective implementation of information security management and achieve its objectives, the
cooperation, and stipulates that relevant parties shall provide Number of participants in information security training: 800
Company has established a hierarchical information security organization consisting of decision-making necessary information security awareness promotion and skill
training for their employees to ensure personnel qualifications Coverage rate of information security training: 27.3%
level, management level and execution level, with an Information Security Management Team and an
meet operational standards.
Information Security Execution Team. Total investment in information security: CNY 991,900
Before risk control and information security requirements are
Each team has clearly defined information security responsibilities and full-time information security fully implemented, access to information shall not be granted to
Information security and privacy protection violations: 0
personnel to support the promotion and implementation of the Company’s information security external parties. The Digital Information Center shall ensure
that external parties understand their rights and obligations,
management. and proactively undertake compliance and security
responsibilities throughout the full process of access,
processing, interaction and management of organizational
information and information processing facilities.
The Group's personnel structure is
Governance
characterized by the in-depth integration of
professional division of labor and high-level Governance Bodies and Personnel
talents, reflecting a human resources layout of
"strategic leadership and echelon Promote the optimization of employee rights and
interests governance; establish and improve the
optimization", forming a multi-dimensional democratic management system; supervise the
management's operation in accordance with laws
linkage of production, research and Decision- Board of and regulations to protect employee rights and
interests;
management. making level Directors
inspect financial status to ensure the
implementation of salaries and benefits, and
prevent abuse of power that harms employee
Number of active employees of the parent interests.
company at the end of the reporting period
Human Resources Department is responsible for
Number of active employees of major subsidiaries Human labor contract management, salary and benefit
at the end of the reporting period Management Department, Administration Department implements labor
General protection, employee care and policy publicity;
level Labor Union promotes the protection of employee
Total number of active employees at the end of the Administration
rights and interests, democratic management and
activity organization, and jointly builds a sound
reporting period Labor Union
human resources management system.
Total number of employees receiving remuneration
in the current period Staff communication, supervises operation and protects
Representative staff rights and interests; Youth Committee reflects
Employee Gender Grassroots youth demands, assists in ideological work, pays
organizations Congress,
Youth attention to career development, organizes
Male employees 2,405 Committee
activities, cultivates talents, and enriches youth
cultural life.
Female employees 710
Ethnic minority employees 75
Professional Skills and Competence
Labor dispatch employees 98
New employees 57 The Group recruits professionals with backgrounds in labor law
and human resource management to formulate employee rights
professional composition
protection policies; invites relevant experts to train the Group's
Number of Personnel in Professional staff on labor laws and regulations, employee care, occupational
Professional Composition Category
Composition (person) health and safety, ensuring that management, HR and
administrative staff master the latest policies and improve
Production staff 2,622 professional skills to better protect employee rights.
Sales staff 55
Technical staff 245
Reporting, Supervision and Assessment
Financial staff 28
Administrative staff 165 The Human Resources Department regularly reports on
recruitment, onboarding, training, talent management and
Education Level performance appraisal, optimizing the talent training system and
Education Category Number (person) salary system, and formulating solutions for high-end talent
introduction and staff turnover. The General Administration
Doctoral degree 10 Department regularly reports on employee rights and care,
Master's degree 1,043 including office environment, logistics, canteen management,
activities and benefits, providing timely feedback and solutions.
Bachelor's degree 1,509 Management and the labor union supervise the fair recruitment
Below bachelor's degree 553 process, review screening criteria, monitor salary payment, and
oversee logistics management.
Age Distribution
The Human Resources Department conducts performance
Employees under 30 years old 563 appraisals for salary adjustment, bonuses, promotion and
training, using diversified methods to motivate employees and
Employees aged 30-50 2,370
drive corporate development.
Employees over 50 years old 182
Strategy Impact, Risk and Opportunity Management
Risk Impact Assessment and Countermeasures Remarkable Upgrade of Human Resources Information System
In 2025, the Human Resources Department upgraded the information system, building a data platform for
Risk Category Specific Risk Risk Description Potential Financial Impact Impact Duration Countermeasures
Corporate governance procedures violate
May face heavy fines, legal litigation
Establish legal department or hire legal
full-cycle talent management and structural analysis, a group-wide dynamic talent database, a multi-
compensation, increased legal consulting Short-term to
Non-compliance Risk laws and regulations, challenging the legality
fees, and long-term damage to corporate Long-term
counsel, conduct regular legal training to dimensional talent map, a refined talent tagging system, and a hierarchical visual leadership dashboard.
of resolutions and labor relations termination ensure compliance
reputation and credibility.
Standardize the labor contract management
Legal Risk Labor Contract
Failure to sign or renew labor contracts in a Directly increases labor costs, may face
Short-term to process to ensure compliance in contract Special Personnel File Verification
timely manner, requiring double wages, employee claims, and affects financial
Management Risk Medium-term signing, performance, modification, termination
increasing labor costs. status.
and other links.
Information Failure to fully disclose material information May trigger labor arbitration or litigation,
Establish an information transparency
From May to August 2025, the Human Resources Department conducted a group-wide
Short-term to mechanism and regularly disclose major
Disclosure and to employees, triggering employee increase legal fees and compensation
Right to Know Risk dissatisfaction and labor disputes. costs, and damage corporate reputation.
Long-term business decisions, salary adjustments and personnel file verification, supplementing over 5,000 key documents, improving file integrity
other information to employees.
Delays project progress, increases and accuracy, and establishing a regular review and update mechanism.
Decision-making Employee participation complicates operating costs, may miss market Short-term to Optimize decision-making mechanism,
Efficiency Risk decision-making and delays progress opportunities, and indirectly affects Medium-term clarify processes and responsibilities
financial returns.
The employee rights protection mechanism
Management changes the power structure, increasing the Increases internal communication costs,
Strengthen internal communication and Improved Benefits and Welfare Optimized Salary Management System
Internal Short-term to coordination, establish effective communication
Risk difficulty of coordination between may lead to project delays, and indirectly
Coordination Risk
management and employees, as well as affects financial performance.
Medium-term channels, and reduce contradictions caused by The Group strictly abides by the Labor Contract Law and The Group established a dynamic salary total control
among departments.
information asymmetry. Social Insurance Law, implementing statutory holidays, system, realizing accurate monthly salary calculation and
Excessive emphasis on employee rights Balance incentive and restraint mechanisms,
annual leave, maternity leave, etc., and enhancing
Imbalanced Reduces employee work efficiency, employee satisfaction through supplementary benefits. management, standardizing salary systems, and ensuring
protection leads to an imbalanced incentive Medium-term to establish a scientific performance appraisal and
Incentive affects overall corporate benefits, and
mechanism and weakens employee work Long-term incentive system to ensure employee timely and full salary payment.
Mechanism Risk may lead to revenue decline.
enthusiasm. enthusiasm.
Key Benefit KPIs
Increased labor cost expenditure to protect Directly increases labor costs, Plan human resource costs reasonably to
Increased Labor Short-term to Labor contract signing rate 100%
Financial Risk employee rights, exerting pressure on compresses profit margins, and may avoid financial pressure caused by
Cost Risk Medium-term
financial status. affect corporate profitability. excessive increase in benefits or salaries
Social insurance coverage rate 100%
Key Salary KPIs
Number of staff congresses held 1
Employee salaries and 18673 ten thousand CNY
Average paid annual leave days 6.72
Opportunity Impact Assessment and Strategies benefits in the reporting period
Employees on maternity leave 31
Opportunity Impact Assessment Result Potential Financial Impact Impact Period Strategies
Maternity leave return rate 100%
Refine governance structure,
Improved corporate Strengthen staff democratic participation, optimize Optimize processes, improve efficiency, clarify rights and obligations of
Medium to long term
governance governance structure and management reduce costs, enhance benefits shareholders, directors,
supervisors and management
Rich Employee Activities
Strengthen staff participation, build a balanced negotiation Reduce disputes, lower legal and Establish staff congress, worker
Improved labor relations Medium to long term
mechanism compensation costs directors and supervisors
In 2025, the labor union organized Spring Festival Gala, Lantern Festival activities, reading clubs, 4th "Design
Institute Cup" basketball and table tennis tournaments, walking events, and wedding/childbirth gifts,
Avoid negative public opinion and legal Strengthen compliance, conduct
Risk prevention Prevent conflicts from the source, promote social stability
risks, reduce losses
Medium to long term
regular compliance training enhancing teamwork and sense of belonging.
Publish social responsibility
Enhanced social Fulfill corporate social responsibility, improve rights Boost corporate image, customer trust,
Medium to long term reports, participate in public
responsibility protection long-term competitiveness
welfare
Employee Activity Cases
Protect shareholder rights, clarify
Increase RandD costs in short term,
Promoted innovation Optimize governance, stimulate innovation, attract capital Short to long term responsibilities of controlling
enhance long-term competitiveness Case: "Fortune Snake Celebrates Spring, Case: Inauguration of the Reading Club and First
shareholders and executives
Joyful Lantern Festival" Lantern Riddles Event Themed Event Successfully Held
More international Improve international reputation, Strengthen compliance, integrate
Align with global markets, expand cooperation Medium to long term
cooperation increase overseas revenue into global economy
Enhance capital stability, standardize disclosure, ensure Reduce fines and compensation from Strengthen fund management,
Reduced operational risk Medium to long term
compliance violations ensure safe and compliant use
Employee Activity Cases Indicators and Goals
Case: The 4th "Design Institute Cup" Basketball Case: The 4th "Design Institute Cup" Table Tennis （1）The Group Three-Year Talent Development Plan (2025–2027) was approved by the General
Tournament Tournament
Manager's Office Meeting in June, providing systematic guidance for talent work.
（2）In March 2025, the Group Assessment System (2025 Edition) and related salary assessment
measures were revised and released, with special promotion in April.
（3）Regular quarterly assessments are conducted and results are applied.
（4）The 2025 Group Talent Structure Analysis Report was compiled, sorting out staffing and gaps in 21
departments, forming a dynamic talent list for 2026 recruitment and training.
（5）In accordance with the Employee Welfare Management Measures, annual health check-ups are
provided for all employees and family members of long-serving staff, achieving 100% participation.
Case: The Group Cares for Employees – Warm Congratulatory
Case: 2025 Spring Festival Gala
Gifts for Marriage and Childbirth
The Group highly values occupational health and work safety, and always adheres to the policy of Safety First, Prevention
First, Comprehensive Management. It strictly fulfills the main responsibility for work safety, improves the occupational
health management system, and regularly carries out safety training, hazard investigation, emergency drills and
occupational disease prevention. These efforts effectively protect the personal safety and physical and mental health of
employees, and build a strong safety line for the stable operation and high-quality development of the enterprise.
Identification and Assessment of Occupational Safety Risks
Case: The 8th "Design Cup" Five-a-side Football Tournament Case: The 5th "Design Cup" Badminton Friendly Match The Group established a regular risk identification and assessment mechanism, systematically identifying physical,
of Henan Survey and Design Industry of Henan Survey and Design Association
management and environmental hazards in offices, production sites and project fronts, conducting graded assessments
and formulating targeted prevention measures for early detection and disposal.
Establishment and Implementation of Occupational Health and Safety
Management System
Since 2000, the Group has obtained ISO9001 Quality Management System, ISO14001 Environmental Management
System and ISO45001 Occupational Health and Safety Management System certifications.
It has formulated safety management regulations and emergency plans for elevators, fire, power outages, etc., to respond
Case: "Charming Women, Blooming Case: "Walk Toward the Light, Health Case: Go Competition at the Henan Provincial to emergencies effectively.
Grace" Women's Day Event for You and Me" Walking Event Directly Affiliated Agencies Sports Games
Key Safety KPIs
Casualty accidents and above 0
Fire accidents 0
Food safety accidents 0
Theft incidents 0
Major equipment accidents 0
Certificate of Occupational Health and
Safety Management System Certification
Occupational Health and Safety Training
Key Training KPIs
he Group regularly organizes safety training, Safety training investment CNY 30,000
By the end of 2025, the Group had 3,115 employees, including 29 high-end talents (survey and
emergency drills, knowledge lectures and hazard Number of safety training sessions 20
rectification, fostering a strong safety culture. Total participants 4,690 design masters, experts receiving special allowances from the State and provincial governments),
Total training hours 68
Training coverage rate 100%
holders, 754 associate senior title holders, 1,252 national certified engineers, and 1,053
Number of emergency drills 5
postdoctoral, doctoral and master’s degree holders, forming a multi-echelon talent team.
Work Safety Training Activity
High-end talents 29 persons
Model workers and medalists 9 persons
Case: Fire Safety Management Meeting
Senior professional title 210 persons
and Knowledge Training
Associate senior professional title 754 persons
National certi?ed engineers 1252 persons
Postdoctoral, doctoral and master’s 1053 persons
Diversified Talent Introduction System
Case: Fire Safety Training and Summer
Work Safety Inspection The Group complies with labor and social security laws and regulations, building a comprehensive
introduction and incentive system through diversified channels, key talent introduction and incentive
mechanisms.
Case: Employee Health Training Activity Diversified Recruitment
To improve the physical and mental health of employees, and Strengthen youth talent reserve: Recruited at Tongji, Hohai, Southwest Jiaotong, Chang'an
strengthen their awareness of health management and ability to
cope with work-related stress, we invited a number of experts to universities and online platforms for emerging majors.
deliver in-depth and easy-to-understand health knowledge
lectures for employees.
Introduce mature talents: Recruited 45 mature technical talents, including 5 certified engineers, 4
senior and 16 intermediate title holders.
Annual Occupational Health Initiatives
Occupational Health Management Initiatives
Optimize recruitment process: Issued the Notice on Standardizing Group Recruitment and
The Group strictly implements the Law on the Interview Processes in July.
Case: Three-Volts Paste Health Care Activity
Prevention and Control of Occupational
Diseases, carrying out health monitoring, annual
check-ups, health counseling, labor protection Key Talent Introduction
supplies distribution, environment optimization
and health education based on industry The Group issued the Key Talent Introduction Management Measures, establishing regular
characteristics. cooperation with doctoral talent platforms to introduce scarce professionals.
Employee Promotion, Selection and Career Development Employee Training
The Group compiled Job Descriptions for Functional Departments and established a multi-
sequence rank system (management, technical, RandD, operation, logistics), providing clear Training System
promotion paths.
A three-level training system (Education and Training Institute, group, department) was
established. The institute held 18 special training programs (84 sessions, 620+ trainees); new
employee technical training covered 107 majors (50+ new courses); the group organized 4 large
lectures, 114 shared classes and 123 live online courses.
Special Training
Small-batch key training was combined with technical promotion; 7 special classes (e.g.,
municipal road, highway maintenance) completed assessments, with results applied to job
re-evaluation.
Key Training KPIs
Number of training sessions 251
Training coverage rate 94%
Number of trained employees 1,450
Total participants 5,750
Total training hours 14,300
Per capita training hours 9.9
Total training investment CNY 919,000
Mature Assessment System Certified Engineer Management
The Human Resources Department of the Group has strengthened the construction of the certified engineer team from
Assessment System multiple dimensions including planning, incentives and performance assessment. At the beginning of 2025, the annual
examination plan was issued and pre-examination training was organized. Meanwhile, the publicity and implementation of
The 2025 Edition Assessment System was implemented, with regular quarterly assessments, result the subsidy policy for certified engineers were strengthened. During the year, the number of applicants reached 289
person-times, and 26 people completed initial registration and transfer registration.
notification, benchmark incentives and targeted reporting to supervisors. Annual assessment and
democratic evaluation of middle managers were completed, with special research on talent structure
optimization.
Information Management
Launch of the Mobile Platform of the Education and Training Institute
Regular Assessment Mechanism
The mobile platform of the Education and Training Institute marks a major milestone in the Institute’s digital development.
Strictly implement the requirements of the 2025 assessment system, complete quarterly assessments, It integrates learning, management and interaction, supporting keyword search and training course filtering by job
sequence. Employees can watch course videos online, preview attached materials and participate in course discussions,
conduct in-depth analysis of management issues through notifications, and establish a performance- making full use of fragmented time for independent learning.
oriented approach. In July 2025, the Group organized and completed the Q2 and semi-annual assessments.
Based on the results, commendation decisions were formulated and announced at the semi-annual summary
Upgrade of the Human Resources Information System
conference, forming a closed loop that emphasizes both problem analysis and benchmark incentives.
In October 2025, for the Q3 assessment, a targeted reporting mechanism of assessment results to The Group has built a real-time updated talent information database, which fully manages employees’ personalized
information online, including professional titles, certified engineer qualifications, designer levels, education backgrounds,
responsible leaders was established, strengthening process supervision and accountability implementation
annual assessment results, internal honors, external awards and training records.
among the management team. A talent map categorized by professional field, professional title, certified engineer qualification, job sequence and
designer type has been completed, covering more than 500 employees across 12 categories.
Application of Assessment Results In line with the Group’s talent characteristics, over 100 talent tags in 20 major categories have been designed, supporting
combined queries and providing an efficient tool for talent screening.
By December 20, 2025, the Group Human Resources Department had completed democratic evaluations and
recommendations for middle-level cadres in accordance with assessment requirements. Meanwhile, taking Positive Corporate Culture and Team Spirit
the annual assessment as an opportunity, the HR Department conducted special research in various
business departments, focusing on talent structure optimization and echelon construction. The Group emphasizes setting role models and encourages employees to learn from advanced examples. Every year, the
Group regularly selects and commends honorary titles including Annual Most Improved New Employee, Outstanding Party
Member, Excellent Design Representative, and Top Ten Employees.
Comprehensive Salary and Incentive System
Salary Standard System Incentive System Corporate Culture Cases
Case: Results of the Top Ten Outstanding Case: Selection of Outstanding Design
Five salary standards were established for 26 The Group implements equity incentives, Employees Selection Representatives
production/RandD departments, with revised certified engineer allowances, and probation
assessment measures filed and publicized. subsidies (housing, living, catering,
transportation). A Chairman’s Fund rewards
outstanding contributions in economic benefits,
reputation, management/technology/RandD
innovation.
Case: New Employee Training and Outstanding Case: Selection of Outstanding Party
Progress Award Commendation Conference Members of the Group
Professional Title Evaluation and Certified Engineer Management
Professional title evaluation
Professional titles: 432 applicants in 2025 (up 7% year-on-year), including 44 senior, 232 associate senior
and 189 intermediate applicants.
Certified engineers: 289 exam applicants, 26 initial/transfer registrations, with training and policy promotion.
Leveraging its professional strengths, the Group focuses on technology empowerment, industrial support
and ecological value enhancement, and deeply integrates its carbon peaking and carbon neutrality business
with consolidating and expanding poverty alleviation achievements and advancing rural revitalization.
Create Harmony Together
It conducts operations in county-level ecological governance, rural carbon sink development, county
environmental protection fund application and other fields. Relying on its technological advantages and
extensive experience in infrastructure construction, the Group provides all-round engineering technical
and Enhance Social Well-being services and solutions for rural areas.
Empowering Rural Areas
Case: Henan Provincial Rural Highway Construction Project Quality Inspection Project
Case: Comprehensive Land Consolidation Project for Duqu Town, Linying County
Case: Rural Highway Pavement Technical Condition Testing Project in Hui County and Gongyi City
Adhering to the core values of Integrity, Responsibility, Win-Win Cooperation, the Group follows the trends of Case: Group Signed Strategic Cooperation Agreement with Xinjiang Production and
digitalization and sustainable development. It is committed to technological innovation and social Construction Corps Survey and Design Institute Group Co., Ltd.
responsibility, and leverages innovative empowerment approaches such as green and low-carbon
technologies and intelligent construction.
By deeply integrating technological RandD with public welfare practices, the Group strives to enhance social
well-being, establish a positive brand image, strengthen industry influence, and achieve the coordinated
development of corporate economic value and social value.
Technology-Enabled Practice Cases
Case: Obtained CMMI Level 5 Certification,
Software RandD Capabilities Recognized by
International Authority
Case: Jointly Build a New Digital Ecosystem for
Infrastructure to Empower the
Digital Upgrade of Smart Luoyang
Case: Exploring the Innovative Application of AI
Technology in the Field of Architectural Design
Case: Wuhan Bridge Forum · Building the Future
with Intelligence
Case: Participated in the 8th Global Unmanned
Systems Conference and 2025 International
Low-altitude Economy and Trade Expo
The Group has always integrated public welfare into its development DNA and fulfilled social responsibilities Case: Group Provided Technical Assistance for Transportation
through technological innovation. From warm-hearted acts of kindness to professional in-depth Work Safety in Hami City
development, it transforms scientific research achievements into practical benefits for the people, fulfills its
corporate mission in multiple dimensions, and demonstrates the responsibility of a technology enterprise that
benefits the country, the people and the industry.
Pursuing Excellence in Public Welfare and Responsibility
Case: The company was awarded the title of
"Outstanding Social Service Organization"
Case: Undertake High-End Financial Forum to Empower Enterprises in
Exploring New Cycle Growth Paths
Case: Assisted Henan Communications Investment
Port and Shipping Zhoukou Port Co., Ltd. in carrying
out safety production risk hidden danger investigation
and recti?cation
Over the past year, the Group has stood together and strived side by side with authorities at all levels and Adhering to the philosophy of openness, inclusiveness and win-win cooperation, the Group actively conducts
partners. It has successively received thank-you letters and commendations from the Ministry of Transport,
the Department of Urban Construction under the Ministry of Housing and Urban-Rural Development, the two-way exchanges and practical cooperation both domestically and internationally, achieving mutual
Department of Transport of Henan Province, and other institutions. benefit and common prosperity through integrated development.
Going forward, the Group will continue to uphold its corporate mission: Creating Value through Service,
Making Life Better. It will strive to build a positive team image, bring honor to the Group, and make new
contributions to accelerating the construction of a strong transportation province. Integration and Win-Win Cooperation Between China and Foreign Partners
Case: Bangladesh Road Network Planning Assistance Project
Case: Technical Service Project for Advanced Geological Prediction
of Tunnels on the Kathmandu-Terai/Madhesh Expressway in Nepal
Case: Al-Maimouna Water Supply Project in
Maysan Governorate, Iraq
Case: Group Technical Personnel Visited Uzbekistan to
Jointly Open a New Chapter of "Belt and Road" Cooperation
The Group has always adhered to compliant operations and integrity in practice, continuously
improved the law-abiding and compliant management system, stuck to the bottom line of
Strengthening Governance business ethics, and promoted the in-depth integration and collaborative efforts of compliance
and Achieving Steady management with audit supervision, internal control and risk management.
Development Governance
Governance Bodies and Personnel
As the supreme decision-making body for compliant
operation, tax governance and internal control, coordinate
and promote the Company’s compliance management, tax
Board of
Decision- compliance and various sustainable development-related
Directors work
Making Level
Review and approve the Company’s compliance and tax
governance strategy, overall goals, major policies and
systems, and internal control system construction plan
Supervise the authenticity of the Company’s financial
reports, effectiveness of internal control and implementation
of external audit work, and effectively perform independent
supervision functions
Perform duties in a standardized manner and hold regular
Audit Committee, meetings, coordinate internal and external audit work, and
Strategy and ensure the standardized operation of the compliance and tax
Management governance system
Sustainable
Execution Level Identify and assess ESG-related risks and development
Development
opportunities, coordinate and guide the management to
Committee formulate targeted response measures to promote the
Company’s sustainable development
Supervise the Company’s tax compliance management,
identify potential risks in tax management and compliant
operations, and review internal control defect rectification
plans.
Strictly implement the compliance and tax governance
strategies and systems formulated by the Board of Directors
and committees, and embed compliance requirements into
the entire business process
Business liaisons of Implement the "Three Lines of Defense" risk management
various functional requirements: business departments perform front-end
Execution Level departments and compliance prevention responsibilities, functional
supervision departments coordinate risk investigation, and
subsidiaries of the
internal audit department independently conducts periodic
Group
compliance and tax audits
Cooperate with internal and external audits and regulatory
inspections, and implement rectification of compliance and
tax risk issues.
Strategy Impact, Risk and Opportunity Management
Risk Impact Assessment Results and Response Strategies Establishment of Internal Control System and Three Lines of Defense
The Company has built a "Three Lines of Defense" risk
Risk Impact
Category
Specific Risk Risk Description Potential Financial Impact
Period
Countermeasures management system of "Business Department –
Improve the Articles of Association and the rules of procedure of Functional Supervision – Internal Audit" to achieve full
May face regulatory fines,
Failure to strictly comply with the Company Law, the "General Meeting of Shareholders, Board of Directors and
Non-compliant Securities Law, listing rules and other laws and
administrative penalties, affect
Board of Supervisors (Three Meetings)", conduct regular
coverage, full process and full chain risk prevention and
the Company’s listing status and Short to
Governance regulations, and non-standard operation of the
capital market reputation, and Long Term
governance compliance training, and ensure the standardized control. In November 2025, the Company systematically
Procedures governance structure, leading to questioned validity operation of the Board of Directors, Board of Supervisors and
increase compliance rectification
of resolutions and regulatory penalties General Meeting of Shareholders in accordance with the revised the Internal Control System. The revised content
costs
requirements of the CSRC and exchanges
Legal and Face regulatory inquiries, Strictly implement the Information Disclosure Management
fully covers eight core elements including internal
Inaccurate, incomplete or untimely information
Compliance Information
disclosure, or false or misleading statements in
administrative penalties, trigger
Short to
System, establish an information disclosure review mechanism, environment, risk assessment, control activities,
Risk Disclosure investor compensation lawsuits, ensure timely, true and complete disclosure through channels
violation of the Measures for the Administration of Long Term information communication and inspection and
Violation damage the Company’s stock such as Interactive Easy and performance briefings, and improve
Information Disclosure by Listed Companies
price and market trust transparency
supervision. At the same time, the revised content focuses
Regarded as interest transfer by Strictly implement the Connected Transaction Management
Unfair pricing, missing approval procedures or
Connected
insufficient disclosure of connected transactions in
regulators, face penalties and Short to System, standardize connected party identification, transaction on strengthening penetrating management of holding
Transaction investor claims, affect the Medium approval and information disclosure, ensure fair, just and open
Violation
violation of the ChiNext Stock Listing Rules and
Company’s compliance rating Term connected transactions, and accept supervision by the Audit subsidiaries, strictly standardizing the control of key links
connected transaction management systems
and financing capacity Committee
such as connected transaction review and external
Inadequate implementation of the "Three Lines of Cause asset loss, fraud or major Continuously optimize the internal control system, regularly
Internal Control
Defense" of "Business Department–Functional operational losses, increase
Short to
revise the Internal Control System, strengthen penetrating guarantee approval, effectively preventing various
Supervision–Internal Audit" and failure to rectify audit rectification costs, and management of subsidiaries, ensure 100% rectification
System Failure
internal control defects in a timely manner, leading to affect the Company’s overall
Long Term
completion rate of internal control defects, and achieve
operational risks, and ensuring that the overall risks of the
out-of-control operational risks efficiency full-process risk prevention and control Group are under control. Tax Administration Mechanism
Ineffective implementation of the risk and Miss the best disposal time, Improve the risk event reporting mechanism, clarify the
Management Short to
Delayed Risk compliance liaison mechanism, untimely trigger chain risks and greater responsibilities of risk and compliance liaisons of each unit,
Risk Medium
Event Reporting identification and reporting of risk events, leading to economic losses, damage the establish a risk event database and case warning system, and
Term The Group strictly abides by domestic and foreign tax
problem escalation Company’s reputation promote lessons learned Compliance Management and Risk Event Reporting Mechanism
Inadequate
Insufficient independence of internal audit and Persistence of violations,
Short to
Ensure the independence of the internal audit department, laws and regulations. The Tax Administration
inadequate performance of the Audit Committee, triggering regulatory penalties strengthen the supervision function of the Audit Committee, hold
Audit Medium
Supervision
leading to failure to detect violations in a timely and financial losses, weakening
Term
regular audit meetings and external audit communication The Company has established and improved a violation and Measures are formulated in accordance with relevant
manner internal control effectiveness meetings, and ensure closed-loop rectification of audit findings
Non-standard tax-related business accounting, Face tax inspections, tax Strictly implement the Tax Administration Measures, standardize risk event reporting mechanism. The Company has set up risk national regulations and combined with the Group’s
Non-compliant Short to
inaccurate declaration, failure to strictly comply with repayment, late fees and fines, tax-related accounting and declaration processes, strengthen actual situation. The Group improves the tax
Tax Accounting
tax laws and regulations, leading to underreporting increase tax costs, and affect the
Medium
professional training of tax personnel, and ensure tax payment in
and compliance liaisons in each branch, business division and
and Declaration Term
or misreporting Company’s tax credit rating accordance with the law subsidiary to ensure the timely identification, reporting and management organization system, prevents and
Tax Risk Identified as tax evasion or tax
Tax planning not in compliance with laws and avoidance, face tax repayment,
Establish a tax risk identification and assessment mechanism, disposal of risk events. In-depth analysis of the causes of controls tax risks, standardizes the full-process
Improper Tax Short to rationally use tax preferential policies, ensure legal and compliant
regulations or excessive planning triggering tax heavy fines and legal liabilities,
Planning Long Term tax planning, and shift the focus of tax management to various risk events is conducted, a risk event database is management of tax-related businesses, ensures that
inspection risks damage the Company’s
pre-planning and control
reputation established, and internal problem sharing and case warnings all companies pay taxes in accordance with laws and
are used to urge all units to learn from past mistakes and regulations, and improves the overall efficiency of tax
continuously improve risk prevention capabilities. management.
Opportunity Impact Assessment Results and Response Strategies
Audit Supervision and Rectification
Implementation Tax Compliance Cases
Opportunity Impact Potential Financial Impact Impact Period Response Strategy
Optimize the governance structure, clarify the boundaries of powers and The internal audit department independently
Reduce compliance risks and regulatory penalty costs in the responsibilities of the Board of Directors, Board of Supervisors and
Improve Corporate
long run, enhance capital market confidence, and improve the
Medium to
management, give full play to the functions of the Audit Committee and conducts periodic audits, implements problem
Governance Level
Company’s financing capacity and valuation level
Long Term
Strategy and Sustainable Development Committee, and continuously improve rectification, and timely discovers and solves Case: Leaders of the Tax Branch Visit the
the standardization of governance.
problems. The Company conducts internal control Company for Research.
Continuously improve the information disclosure system, enrich investor
Enhance investor trust and market recognition, stabilize the
Enhance Compliance Medium to communication channels such as performance briefings, Interactive Easy and self-assessment every year and discloses the
Company’s stock price, reduce financing costs, and lay a
Credibility Long Term official website columns, ensure 100% interaction response rate, and maintain results simultaneously with the annual report to
foundation for long-term development
fair market order
Avoid economic losses and reputation damage caused by Strengthen full-process internal control management, conduct regular internal
ensure the effectiveness of internal control.
Prevent and Resolve Major Medium to
internal control failure and violations, and ensure the control self-assessment and audit supervision, implement penetrating
Operational Risks Long Term
Company’s sustained profitability and stable development management of subsidiaries, and ensure zero major compliance risk events
Optimize tax costs in the long run, improve the overall Improve the tax management organization system, strengthen tax risk
Improve Tax Management Short to Long 2025 Compliance Work Performance
efficiency of tax management, avoid losses from tax identification and assessment, rationally use tax preferential policies, and
Efficiency Term
inspections, and enhance the Company’s profitability realize standardized full-process management of tax-related businesses
Indicator Data of 2025
Enhance corporate social image and brand value, strengthen Rely on the Strategy and ESG Committee to coordinate the identification of
Promote Sustainable Medium to
customer and investor trust, and expand long-term market ESG and compliance-related opportunities, formulate sustainable Legal Risk Training for Key Personnel Over 120 person-times
Development Long Term
opportunities development strategies, and actively fulfill social responsibilities
Number of Audit Committee Meetings 5
Gain easier recognition from the capital market, reduce Continuously benchmark against listed company governance standards,
Strengthen Capital Market Medium to
financing difficulty and costs, and support business expansion regularly disclose internal control self-assessment reports, and maintain Number of Communication Meetings Between Audit
Competitiveness Long Term
Committee and External Audit Institutions 2
and innovative development high-quality information disclosure
Establish a normalized compliance training and risk investigation mechanism, 0
Reduce Operational Stabilize the Company’s operational expectations, ensure Medium to Number of Major Compliance Risk Events
achieve full coverage of legal risk training for key personnel, and ensure the
Uncertainty stable financial performance, and improve risk resistance Long Term 100%
orderly and compliant development of various businesses Rectification Completion Rate of Internal Control Defects
Indicators and Goals
(1) Improve the "Three Lines of Defense" risk management system for internal control, realize Total Number of Directors Receiving Anti-Commercial Bribery and Anti-Corruption Training 12 persons
penetrating management of holding subsidiaries, ensure the rectification completion rate of internal
Percentage of Directors Receiving Anti-Commercial Bribery and Anti-Corruption Training 100％
control defects reaches 100%, and keep the number of major compliance risk events at 0.
(2) Improve the level of information disclosure and investor relations management, ensure timely, Total Number of Management Personnel Receiving Anti-Commercial Bribery and Anti-Corruption Training 54 persons
accurate and complete information disclosure, and maintain a 100% interaction response rate on the
Percentage of Management Personnel Receiving Anti-Commercial Bribery and Anti-Corruption Training 100％
Interactive Easy platform.
(3) Standardize the entire process of tax management, establish and improve a tax risk identification and Total Number of Employees Receiving Anti-Commercial Bribery and Anti-Corruption Training 799 persons
assessment mechanism, ensure tax payment in accordance with the law and reasonable planning,
Percentage of Employees Receiving Anti-Commercial Bribery and Anti-Corruption Training 27.5％
achieve zero penalties in tax inspections, and improve the overall efficiency of tax management.
(4) Strengthen compliance training and risk warnings, achieve full coverage of legal and tax risk training
for key personnel, establish a risk event database and case warning mechanism, and improve the
Anti-Corruption and Anti-Bribery Reporting Channels
compliance risk prevention capabilities of all employees.
(5) Continuously conduct internal control self-assessment, disclose internal control evaluation results The Group has established a sound reporting and communication mechanism to encourage employees to
simultaneously with the annual report, ensure the standardized and effective operation of the internal participate in internal governance. If any violation of business ethics, fraud, bribery or other improper acts
is found, relevant personnel may report through channels such as telephone, email, letter and in-person
control system, and provide a solid guarantee for the Company’s high-quality development.
visit.
Whistleblower Protection
The Company attaches great importance to anti-corruption construction, abides by business ethics and Upon receiving a report, the Audit Department conducts investigation and review, approves and investigates
industry norms, continuously improves the integrity practice system and supervision system, and adopts a reports that meet the requirements, and publicizes the results within the specified time limit; reports that do
zero-tolerance attitude towards violations such as corruption and bribery. Through normalized integrity not meet the requirements will not be approved. The Company continuously improves the whistleblower
education and full-process risk prevention and control, the Company builds a corporate culture of integrity protection mechanism, requiring whistleblowers to be truthful and not to frame others. At the same time, the
and self-discipline, maintains a fair competition market environment, and lays a solid foundation of integrity Company strictly keeps confidential the identity information and private data of whistleblowers to ensure no
for sustainable development. information leakage
Anti-Corruption and Anti-Bribery System
Collaborative Supervision and Cooperation with Discipline Inspection and Supervision
The Group has established and improved an anti-commercial bribery and anti-corruption system, explicitly
The Group thoroughly implements the work deployment of higher-level discipline inspection and supervision
prohibiting any form of improper interest transfer. Through normalized internal integrity education and
departments, and solidly promotes the construction of a clean and honest Party conduct. It strictly
training, the Group strengthens the awareness of integrity and self-discipline of all employees, ensuring
implements the integrity discipline regulations during holidays, and effectively conducts integrity reminders
that employees deeply understand and strictly abide by relevant regulations.
at important nodes such as Qingming Festival, Labor Day and Dragon Boat Festival. It completes the
The Group continuously improves the supervision and inspection system, regularly conducts
statistics and submission of on-the-job supervision objects on time and with quality. It studies, deploys and
comprehensive reviews of core business processes such as procurement and sales, financial revenue and
solidly promotes centralized rectification work. It strictly approves integrity contracts for various projects,
expenditure, and employee practice through internal audits, timely identifies potential risks and compliance
and conducts normalized supervision and inspection on key links such as internal procurement, bidding and
hazards, and ensures that the Company’s operations fully comply with laws, regulations and internal
social recruitment.
control systems.
Organizational Construction
The Company has always adhered to the business principles of voluntariness, equality, fairness and good
faith, strictly abided by the Anti-Monopoly Law of the People's Republic of China , the Anti-Unfair Competition Law Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, HNDI fully fulfills its
of the People's Republic of China and other relevant laws and regulations, and attached great importance to political responsibility of governing the Party. In 2025, the Company took Party building as the guide for high-
anti-monopoly and anti-unfair competition work. By regularly organizing management to study laws and quality development, implemented the Party building work responsibility system, continuously promoted the
regulations and providing compliance guidelines for employees, the Company has established a sound anti- standardization of Party branches, deepened the integration of Party building with production and operation,
unfair competition management mechanism, standardized domestic and foreign business behaviors, scientific and technological innovation and social responsibility, and strengthened the construction of a clean
and honest Party conduct and ideological work. To ensure the quality and efficiency of Party building work,
resolutely safeguarded a fair competition market order, and ensured the legal and compliant development of
the Company formulated documents such as the annual Party building priorities and theoretical learning
business activities. The Company actively promotes the concept of fair competition through its official
plan, improved the Party building work system, transformed Party building advantages into development
website, display screens in the office building lobby and other channels, and is committed to building a
advantages, and provided political and organizational guarantees for high-quality development. The Party
corporate culture of integrity, law-abiding and self-discipline, and fair competition. Committee of the Company carries out various work under the leadership of the Party Group of the Henan
Provincial Department of Transportation. In 2025, 21 new Party members were developed. As of the end of
the reporting period, the Company had 1 grassroots Party committee, 47 Party branches, 799 Party members
in total, accounting for 27.5% of the total number of employees.
Total Number of Party Branches of the Company 47
Total Number of Party Members of the Company 799
Percentage of Party Members in Total Employees 27.5％
Average Age of Party Members 40
Number of Party Congresses, Party Committee Meetings, Regular Party Building Meetings, etc. 17
Number of Theoretical Learning Sessions of the Party Committee 12
Number of Special Seminars on Party History Learning and Education 2
Party Building Honors
Through talent development leadership and evaluation and incentive mechanisms, the Group
encourages Party members and cadres to take the initiative to act and actively participate in
the Group’s high-quality development practice. In 2025, the Group selected 10 outstanding
Party members. Upon grassroots recommendation, organizational review and
comprehensive evaluation, 3 Party branches, 4 Party members and 1 Party affairs worker
won the titles of Advanced Party Organization, Outstanding Communist Party Member and
Key Performance of Anti-Unfair Competition Outstanding Party Affairs Worker of the Henan Provincial Department of Transportation for
the year. The Group gives full play to the exemplary and leading role of advanced models,
In 2025, the Company had no legal litigation related to unfair competition or anti-monopoly,
drives all employees to fulfill their mission with the power of role models, and gathers a strong
and no illegal cases caused by fraud or corruption.
driving force for the sustainable development of the Company.
Party Building Activities List of Party Building Activities
The Company thoroughly implements the requirements of Party discipline learning and education,
innovates Party building activity carriers, and promotes the in-depth integration of theoretical
learning and business practice. Through the online "HNDI Cloud – Window of Party, Labor and
Youth League" platform, a theoretical learning column was set up, publishing more than 60 special
learning contents, and experts were invited to carry out special counseling on the 15th Five-Year
Plan, promoting the accurate delivery of the Party’s innovative theories to grassroots frontlines.
At the same time, the Company regularly carries out diverse thematic learning and practical
activities, guiding Party members and cadres to strengthen theoretical arming, temper discipline
and work style, and effectively realize the transformation from learning and understanding
discipline to abiding by and applying discipline, leading the sustainable and high-quality
development of the Company with high-quality Party building.
Party Building Activity Cases Themed Party Day Activity of
"Studying the Secrecy Law and
Themed Party Day Activity of
Case: Conference on Party Building Case: (Enlarged) Meeting of the Party Committee Enhancing Secrecy Awareness"
Studying the Spirit of the Fourth
and the Development of a Healthy Party Conduct and Deployment Meeting for
Plenary Session of the 20th
and a Clean Government in the Transport Sector Study and Education
Central Committee of the
Communist Party of China
Case: Special Meeting on Studying and Implementing
the Spirit of the Fourth Plenary Session of the 20th
Case: Special Study Session
CPC Central Committee and the Education on Party
Spirit and Party Discipline
Activity of Watching the News
Broadcast of the Communique
Special Learning Meeting on the
Spirit of the Fourth Plenary
Session of the 20th Central
Committee of the Communist
Party of China
FutureOutlook In innovation-driven growth, we will focus on transportation, urban construction,
low-altitude economy, new energy and smart infrastructure, increase R&D
investment, and commercialize technological achievements. We will deepen the
application of BIM, AI and big data, strengthen industry-university-research
collaboration, and consolidate our “Three Comprehensive and One Class A”
ESG governance and pursue high-quality sustainable development. We will integrate
advantages.
environmental, social and governance principles into corporate strategy, daily
In people development and social responsibility, we will implement the talent-
operations and project lifecycles to support the national transportation power
strengthening strategy, improve talent development and promotion systems, and
strategy, dual-carbon goals and regional high-quality development.
enhance occupational health and safety. We will support rural revitalization, urban
In green and low-carbon development, we will expand zero-carbon parks,
renewal and port economy, treat SMEs as equal partners, provide technical
expressways and ports, promote solid waste recycling, green materials, new energy
assistance, and expand overseas markets under the Belt and Road Initiative.
microgrids and carbon asset trading. We will also develop ecological restoration,
In compliance and governance, we will improve risk control, information disclosure
industrial wastewater treatment and urban-rural water supply projects.
and supervision mechanisms, strengthen compliance operation, tax compliance,
anti-corruption and data security. We will enhance internal control and stakeholder
communication to ensure steady and long-term development.
Guided by the mission “Creating Value through Services, Building a Better Life”,
HNDI will take green as the foundation, innovation as the driving force, talents as the
support and compliance as the guarantee. We will continuously improve ESG
performance and contribute more to national modernization and people’s well-
being.
Appendix
Governance Performance
Indicator Name Unit 2025
Legal Risk Training for Key Personnel times 120
Number of Audit Committee Meetings times 5
China Enterprise SZSE Self-Regulatory
Sustainable Guidelines for Listed Number of Communication Meetings Between Audit Committee and External Audit Institutions times 2
Report Chapter Development Report Companies No. 17 – GRI Standards
Guidelines Sustainability Report Number of Major Compliance Risk Events times 0
(CASS-ESG 6.0) (Trial)
Report Overview P1.1/P1.2 Article 6, Article 4 2-2/2-3 Rectification Completion Rate of Internal Control Defects % 100
Chairman’s Address P2.1 / 2-11
Total Number of Directors Receiving Anti-Commercial Bribery and Anti-Corruption Training persons 12
Company Profile P3.1/P3.3 / 2-1
Qualifications P3.1 / 2-1 Percentage of Directors Receiving Anti-Commercial Bribery and Anti-Corruption Training ％ 100
Main Businesses and Products P3.3 / 2-1
Company Structure P3.1 / 2-1 Total Number of Management Personnel Receiving Anti-Commercial Bribery and Anti-Corruption Training persons 54
About HNDI
Market Footprint P3.3 / /
Percentage of Management Personnel Receiving Anti-Commercial Bribery and Anti-Corruption Training ％ 100
Company Culture P3.2 / /
Certificates P3.1 / 2-1 Total Number of Employees Receiving Anti-Commercial Bribery and Anti-Corruption Training persons 799
Major Events in 2025 P3.1 / /
Sustainable Development Percentage of Employees Receiving Anti-Commercial Bribery and Anti-Corruption Training ％ 27.5
G1.1.1/G1.1.2 Article 11, Article 12 2-9/2-22
Governance Structure
Sustainable Sustainable Development Total Number of Party Branches of the Company units 47
G1.1.4 Article 12 /
Development Information Reporting Mechanism
Total Number of Party Members of the Company persons 799
Governance Sustainable Development Goals G1.1.11 Article 11, Article 19 /
Stakeholder Engagement G1.3 Article 9, Article 53 3-1/3-2/3-3 Percentage of Party Members in Total Employees ％ 27.5
Material Topic Management G1.1.9 Article 5 /
Article 21, Article 23, Average Age of Party Members years 40
Addressing Climate Change E1.1 Article 24, Article 25,
Practicing Article 26, Article 27
Low-Carbon Article 30, Article 31,
Advancing Emissions Management E2.2/E2.4
Article 33
Development and
Promoting Green Ecosystem Protection E2.3 Article 32 304-2
Environmental Article 35, Article 36, 302-1/302-3/302-4/303-2/305
Resource Recycling E3.1/E3.2/E3.3
Protection Article 37 -5 Environmental Performance
Green and Low-Carbon Design E1.1.6 Article 23 /
Dual-carbon Strategy Services E1.1.6 Article 23
Innovation-Driven Development S 2.1 Article 42 /
Key Indicator Unit 2025
Supply Chain Sustainability S 3.1 Article 45 308-1/308-2/414-1
Focus on
Equal Treatment of Small and
Natural gas m 81471
Innovation, / Article 46 /
Medium-Sized Enterprises
Enhance Quality
Product and Service Quality and
Service S3.3 Article 47 416-1/417-1/417-2 Gasoline ton 255.70
Safety Control
Data Privacy Protection S3.4 Article 48 418-1
Diesel ton 59.88
Protection of Employees' Rights and
People-Oriented, S4.1 Article 50 401-1/401-2/405-1/2-19
Interests
Building a Purchased electricity MWh 10198.77
Talent-Strong Health and Safety Protection S4.2 Article 50
-6/403-9
Enterprise
Talent Cultivation Program S 4.3 Article 50 404-1/404-2/404-3 Purchased heat GJ 8977.00
Empowering Rural Development S1.1 Article 39 /
Refrigerant (HFC-134a) ton 0.20
Technology-Enabled Practices / / /
Create Harmony
Public Welfare Commitment for Refrigerant (R32) ton 0.20
Together and S1.2 Article 40 /
Long-Term Development
Enhance Social
Jointly Building Dreams and Moving Direct energy consumption tce 553.11
Well-being S1.2 Article 40 /
Forward Together
Win-Win Cooperation Between Indirect energy consumption tce 1559.73
S1.2 / /
China and the World
Standardized and Compliant
Strengthening / Article 54 207-1/207-2/207-3 Total energy consumption tce 2112.84
Operations
Governance and
Anti-Corruption Initiatives G2.1 Article 55 205-2
Achieving Steady Scope 1 GHG Emissions tCO₂e 1109.74
Safeguarding Fair Competition G2.2 Article 56 206-1
Development
Party Building Leading by Example S2.1 / /
Scope 2 GHG Emissions tCO₂e 7001.69
Future Outlook A1 / /
Indicator Index Ａ3 Article 57 /
Total GHG Emissions (Scope 1+2) tCO₂e 8111.43
Appendix Key Performance Indicators Ａ2 Article 6 /
Feedback Ａ6 Article 6 /
Appendix
Social Performance
Name of Indicator Unit 2025
Total Number of Employees person 3115
Number of Male Employees person 2405
Number of Female Employees person 710 Dear Readers,thank you for reading the 2025 Environmental, Social and Governance (ESG)
Number of Ethnic Minority Employees person 75 Report of HNDI. To provide you and other stakeholders with more professional and valuable
Number of Dispatched Employees person 98
Number of New Hires person 57
corporate sustainable development information, please assist us in completing the relevant
Number of Employees Under 30 person 563 questions in the feedback form to help us further improve social responsibility and sustainable
Number of Employees Aged 30–50 person 2370 development management in the future.
Number of Employees Over 50 person 182
Number of Employees Below Bachelor’s Degree person 553
Number of Employees with Bachelor’s Degree person 1509
Number of Employees with Master’s Degree person 1043 Please rate the following questions on a scale of 1 to 5 (1 being the lowest
Number of Employees with Doctoral Degree person 10 score and 5 being the highest score):
Number of Employee Training Sessions session 251
Employee Training Coverage Rate % 94 1. Your identity with regard to HNDI:
Total Number of Trained Employees person 1450
□Government/Regulatory Authority □ Shareholder/Investor
Total Training Attendance person-times 5750
Total Training Duration hour 14300 □ Partner/Supplier □ Customer □ Employee □ Media □ NGO
Average Training Hours Per Capita hour 9.9
Total Training Investment 10,000 CNY 91.9
□ Community/Public □ Other
Employee Salary and Welfare during Reporting Period 10,000 CNY 18673 2. Your overall evaluation of the 2025 Environmental, Social and
Labor Contract Signing Rate % 100
Social Insurance Coverage Rate % 100 Governance (ESG) Report of HNDI?
Average Paid Annual Leave Days Per Capita day 6.72
□1 □2 □3 □4 □5
Number of Employees on Maternity Leave person 31
Maternity Leave Return-to-Work Rate % 100 3. Do you think this report can reflect HNDI’s significant impact on the
Safety Education and Training Investment 10,000 CNY 3
economy?
Number of Work Safety Training Sessions time 20
Total Attendance of Work Safety Training person-times 4690 □1 □2 □3 □4 □5
Total Duration of Work Safety Training hour 68
Work Safety Training Coverage Rate % 100
Number of Emergency Drills time 5 environment?
Number of Work Safety Accidents case 0
Number of Occupational Injuries/Deaths person 0 □1 □2 □3 □4 □5
Service Qualification Rate % 100
On-Time Delivery Rate % 100
Contract Performance Rate % 100 society?
Number of Major Quality Accidents in the Year case 0
□1 □2 □3 □4 □5
Number of Internal Service Quality Inspections time 4
Rectification Completion Rate of Quality Hazards/Issues % 100 6. Do you think this report can reflect HNDI’s significant impact on
RandD Investment 10,000 CNY 7273
RandD Investment as Percentage of Operating Revenue % 4.13
corporate governance?
Number of RandD Personnel person 412 □1 □2 □3 □4 □5
Proportion of RandD Personnel % 13.23
Newly Granted Patents piece 50 7. Your overall evaluation of the degree of information disclosure in this
Newly Granted Invention Patents piece 18
report?
Number of Valid Invention Patents piece 184
Total Number of Suppliers piece 1508 □1 □2 □3 □4 □5
Number of Annual Contracted Suppliers piece 275
Suppliers with Quality Management System Certification piece 516
Suppliers with Environmental Management System Certification piece 516 □1 □2 □3 □4 □5
Suppliers with Occupational Health and Safety Management System Certification piece 516
Local Procurement Ratio % 52.3 9.Your overall evaluation of the layout design of this report?
Percentage of Suppliers Implementing Supplier Management Regulations % 98 □1 □2 □3 □4 □5
Supplier Inspection Coverage Rate % 100
Number of Information Security Training Sessions time 4 10. What comments or suggestions do you have on our Environmental,
Number of Participants in Information Security Training person 800
Social and Governance (ESG) Report, social responsibility work or
Information Security Training Coverage Rate % 27.3
Total Information Security Investment 10,000 CNY 99.19 sustainable development management?
Number of Information Security Incidents incident 0
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