Stock Code
Company official website?www.palm-la.com
Email?002431@palm-la.com
Address of Zhengzhou Office: 16-18th Floors, Haihui Center, at the intersection of Dongfeng Environmental, Social, and Governance (ESG) Report
South Road and Kangning Street, Zhengdong New District, Zhengzhou City, Henan Province,
China
Palm Eco-Town Development Co., Ltd.
Address of Guangzhou Office: 6th Floor, Block B, Zhuguang Xincheng International Center, No.
Contents
CONTENTS
Report Preface
About This Report
Chairman?s Message
Governance Empowerment, Steady
and Long-Term Development
Value Symbiosis, Industry
Co-progress
Common Welfare, Shared
Responsibility
About Palm Eco-Town 05
Party Building Guidance 21 Innovation-driven Development 63 Practicing Social Welfare 103
Corporate Governance 24 Product and Service Safety and Quality 73 Support for Rural Revitalization 104
Sustainable Development Risk Management and Internal Control 29 Responsible Supply Chain 76 Response to the ?Belt and Road? Initiative 106
Governance
Compliance Operations and Business Ethics 30 Data Security and Customer Privacy Protection 81
ESG Governance System 13
Stakeholder Communication 15
Management of Material Topics 16
Appendix
Building Green, Towards Beauty Talent Cultivation, United Indicator Index
Climate Change Response 37
Advancement Key Performance Table
Environmental Compliance Management Employee Rights Protection 114
Resource Efficiency Enhancement 52 Training and Development 90
Ecosystem and Biodiversity Protection 57 Occupational Health and Work Safety 93
Environmental, Social and Governance (ESG) Report
Report Preface
Data Description
All information and data cited in this report are sourced from Palm Eco-Town? s official documents, statistical reports, financial reports, and
sustainability practice information collected, compiled, and reviewed by the Company?s various functional departments and business units.
About This Report
The Company warrants that this report contains no false records, misleading statements, or material omissions. Unless otherwise specified, all
currencies and amounts mentioned in this report are denominated in Renminbi (RMB).
This report is the third Environmental, Social, and Governance (ESG) report (hereinafter referred to as ?this report?) released by Palm Eco-Town
Development Co., Ltd. (hereinafter referred to as ?Palm Eco-Town? or ?the Company?). Based on the principles of objectivity, standardization,
Definition and Interpretation
transparency, and comprehensiveness, this report provides a detailed disclosure of the Company?s practices and performance in environmental,
social, and governance aspects for the year 2025.
Definition Items Definition Content
Report Scope
The Company, Palm Eco-Town, We Palm Eco-Town Development Co., Ltd.
This report focuses on ?Palm Eco-Town? as the main entity, including its subsidiaries. Unless otherwise specified, the scope of this report aligns
with that of the Company?s annual report.
Palm Design Group Palm Design Group Co., Ltd.
Time Frame
Belt Collins Belt Collins International (Hong Kong) Co., Limited
The time frame of this report is from January 1, 2025, to December 31, 2025 (referred to as the ?Reporting Period?). To enhance the
comparability and completeness of the report, some content appropriately traces back to previous years or includes forward-looking
descriptions.
Confirmation and Approval
Preparation Basis
This report was approved by the Company?s Board of Directors on April 23 , 2026, and is published concurrently with the annual report. The
Board of Directors commits to overseeing the content of the report to ensure it contains no false records or misleading statements, and takes
Shenzhen Stock Exchange Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange – Sustainability Report
responsibility for the authenticity, accuracy, and completeness of the content.
(For Trial Implementation)
Shenzhen Stock Exchange Self-Regulatory Guide No. 3 for Companies Listed on Shenzhen Stock Exchange – Preparation of Sustainability
Report
Access to the Report
Global Reporting Initiative GRI Sustainability Reporting Standards (GRI Standards)
China Enterprise Reform and Development Society Guide to Corporate Sustainability in China (CASS-ESG 6.0) This report can be accessed and downloaded on the Company?s website (www.palm-la.com), the Shenzhen Stock Exchange website
(www.szse.cn), and the CNINFO website (www.cninfo.com.cn). This report is published in both Chinese and English. The English version is
Task Force on Climate-related Financial Disclosures (TCFD) Framework translated from the Chinese version. In case of any discrepancies, the Chinese version shall prevail.
UN Sustainable Development Goals (SDGs)
Environmental, Social and Governance (ESG) Report
Staying True to Green Development, Fulfilling the Mission of Ecological Priority
Chairman?s Message We have always adhered to the conviction that ?lucid waters and lush mountains are invaluable assets,? integrating green and low-carbon
principles throughout our entire business process. In terms of environmental protection and control, we organized more than 50 environmental
inspections throughout the year, covering all ongoing projects and key environmental protection links, strictly adhering to the ecological and
environmental red line.
During the construction of major projects, we benchmarked against green construction standards throughout the process. The ?Phase I Project
of the Two Institutes and One Center? was rated as a Demonstration Project of Green Construction in the Construction Industry of Zhengzhou
City in 2025, setting a benchmark for the industry. At the same time, leveraging digital technologies for refined construction management, we
Forging Ahead with Dedication successfully completed the construction of 246,000 mu (approx. 16,400 hectares) of high-standard farmland in Qingfeng County, Puyang City,
taking concrete actions to protect the ecological foundation and support food security and rural ecological revitalization.
and Action, Staying True to Our
Driving Force through Innovation, Upgrading through Scientific and Technological R&D
Mission, Empowering a New
Innovation is the core engine for sustainable corporate development. By 2025, we have established multiple national, provincial, and
Journey with Green Initiatives municipal-level R&D platforms, including the Palm R&D and Promotion Center of the National Engineering Research Center for Floriculture and
the Henan Provincial Engineering Research Center for Ecological Landscaping, building a comprehensive R&D management system. As of the
end of the reporting period, we had 96 R&D personnel, accounting for nearly 11.85% of total employees, demonstrating a steady improvement
The year 2025 marks a critical juncture for the successful conclusion of the 14th in our scientific research strength.
Five-Year Plan, and it has also been a year of resilient progress and quality-driven
In 2025, we focused on tackling key technologies for garden carbon sinks, successfully completing the Henan Province screening and evaluation
efficiency enhancement for Palm Eco-Town Development Co., Ltd. (Palm). Under
project for high-carbon-sequestration tree species in landscaping, and winning the Second Prize of the Science and Technology Progress
our ?One Body, Two Wings? development strategy, we have steadfastly
Award from the Henan Society of Landscape Architecture. Our independently developed new varieties and key technologies have been
advanced our business through pragmatic action and upheld our original
promoted and applied in numerous projects nationwide. Both our core intellectual property patents and new plant varieties have surpassed one
aspirations with a strong sense of responsibility, making continuous strides in the
hundred. As a national high-tech enterprise and a leading enterprise in agricultural industrialization, we continue to inject strong momentum
ESG field. On the occasion of releasing the 2025 ESG Report, I would like to
into green development through technological innovation.
express, on behalf of the Board of Directors, our sincere gratitude to government
departments at all levels, the broader community, investors, and all our Staying True to Our Original Aspiration and Assuming Responsibility, Demonstrating the Warmth of SOE Commitment
employees.
Social responsibility is the core tenet of ESG and an unshirkable mission for state-owned enterprises. We have always based our efforts on the
——Liu Jianghua, Secretary of the Party General Branch well-being of the people, fulfilling our corporate citizenship responsibilities in all aspects.
and Chairman of Palm Eco-Town Development Co., Ltd.
In 2025, we proactively responded to the rural revitalization strategy by establishing a Digital and Smart Agriculture Business Unit. Taking the
integrated rice industry project in Fan County, Puyang City as a flagship initiative, and leveraging the experimental fields in Huaiyang District,
Zhoukou City, as well as the 90,000 mu of high-standard farmland in Suiyang District, Shangqiu City as key drivers, we rely on our engineering
advantages in traditional high-standard farmland construction. Through the deep integration of ?technology, finance, and organized efforts,?
we aim to become a comprehensive service provider for the entire industry chain of digital and smart agriculture. Through the full
Strengthening the Foundation through Party Building, Building a Robust Compliance Governance Framework empowerment of digital and smart agriculture, we support Henan in building itself into a strong agricultural province and safeguard the granary
of our great nation. We have strictly adhered to the bottom line of work safety, conducting regular hazard inspections and emergency drills,
Upholding the leadership of the Party is the ?root? and ?soul? of state-owned enterprises, and it is also a fundamental guarantee for putting achieving the safety goal of ?zero fatalities and zero severe injuries? for the year. Through grassroots Party building, we have also carried out
ESG principles into practice. In 2025, we thoroughly implemented the guiding principles of the Fourth Plenary Session of the 20th Central public welfare activities such as voluntary tree planting and educational support for underprivileged students, conveying the warmth of SOEs
Committee of the Communist Party of China and the Central Economic Work Conference, comprehensively consolidating the grassroots Party and demonstrating our sense of responsibility.
building system. The Company currently has one General Party Branch, seven Party branches, and 89 registered Party members, deeply
integrating Party building with production, operations, and ESG management, and guiding ?ecological green? with ?Party building red.? The journey ahead is long, and our resolve remains strong. As we embark on the new journey of the 15th Five-Year Plan, high-quality ESG
development has become an important hallmark of the core competitiveness of state-owned enterprises. Going forward, we will remain true to
In 2025, focusing on the theme of the ?Year of Standardized Management,? we completed an optimized integration of our organizational our original aspiration and mission, continue to integrate ESG principles into our strategic planning and entire operational process, benchmark
structure and built an efficient modern SOE governance system. We advanced the revision of institutional rules, cultivated a culture of against industry leaders, and unwaveringly pursue a path of green, low-carbon, and sustainable development. Guided by Party building, we will
compliance across the entire workforce, and successfully obtained dual certification for our compliance management system under GB/T strengthen governance; anchored in ecology, we will stay true to our mission; empowered by innovation, we will drive development; and bound
the stable operation of the Company. a beautiful China, and continue to contribute Palm's strength to high-quality economic and social development.
Environmental, Social and Governance (ESG) Report
About Palm Eco-Town
Company Profile
Palm Eco-Town Development Co., Ltd. was founded in 1984 and listed on the Shenzhen Stock Exchange in 2010 (stock code: 002431). It is Organizational Structure
currently a listed subsidiary held by Zhongyuan Yuzhi Investment Holding Group Co., Ltd.. The Company adheres to the green development
philosophy that ?lucid waters and lush mountains are invaluable assets.? Leveraging years of industry experience and brand advantages, it has
refined its full industry chain of ?investment, financing, construction, operation, and management,? steadily growing into a national group
General Meeting of
company integrating top-level planning, design, construction, and comprehensive operation. Shareholders General Party Branch Committee
The Company follows a development path guided by design, characterized by operational expertise, and underpinned by market-oriented Development Strategy Committee
mechanisms, with full-chain service capabilities. As a national high-tech enterprise and a national leading enterprise in agricultural
industrialization, it holds a comprehensive qualification system, including Class A qualification for architectural engineering design, Class I
Audit Committee Board of Directors
general contracting for building construction, Class I general contracting for municipal public works, Class II general contracting for water
conservancy and hydropower engineering, and Class A special qualification for landscape architecture engineering design. It has also obtained
Nomination, Remuneration and
four major international system certifications: ISO 9001 (Quality Management), ISO 14001 (Environmental Management), ISO 45001 Assessment Committee
(Occupational Health and Safety Management), and ISO 37301 (Compliance Management System).
Safety Committee Management Layer
The Company implements a ?one body, two wings? development strategy. The ?one body? is Green Urban & Rural Construction, covering
planning and design, eco-landscaping, farmland and water conservancy, housing construction, and municipal works. The ?two wings? are Rural
Revitalization and Innovation Business. The Rural Revitalization wing focuses on digital agriculture, cultural tourism, industrial chain extension,
etc., while the Innovation Business wing concentrates on digital technology and other emerging fields.
Entering the new journey of the 15th Five-Year Plan, the Company will continue to uphold the spirit of craftsmanship and is committed to
providing clients with high-quality integrated solutions for green urban-rural development and rural revitalization.
Marketing & Client Department
Safety & Technology Department
Business & Contract Department
Risk Control & Legal Department
Party-Mass & Human Resources Department
Finance & Capital Department
General Office
Securities Development Department
Audit Management Department
Discipline Inspection & Supervision Department
Environmental, Social and Governance (ESG) Report
Honors Received in 2025
Development History Palm Eco-Town
Gathering Strength for New Journey
The Company will closely follow national policy
opportunities and, under the guidance of the 15th
Five-Year Plan, embark on a new chapter.
National Key Leading Enterprise 2024 Zhengzhou AAA Credit First Prize in Henan Provincial
in Agricultural Industrialization Enterprise in Survey and Design Landscape Architecture Planning
State-owned Capital Control and Design in 2025
Ministry of Agriculture and Rural Affairs Zhengzhou Urban and Rural Henan Provincial Society of
Guided by the controlling shareholder, the Company of the People?s Republic of China Construction Bureau Landscape Architecture
practices the development philosophy of ?lucid waters and
lush mountains are invaluable assets?, proposes the ?One
Body, Two Wings? strategy, and its business scope covers
major key regions across the country.
Listing Commencement
(Renamed to Palm Landscape Architecture Co., Ltd.), On
June 10, 2010, the Company was listed on the Shenzhen
Stock Exchange with the stock code 002431, becoming
the second listed landscaping enterprise in China?s capital
First and Second Prizes in Henan Provincial Landscape Comprehensive Third Prize in the 4th
market (the first in South China). Renamed to Palm Henan Province (Luoyang) Landscape
Architecture Science and Technology Progress Award in 2025
Eco-Town Development Co., Ltd. in 2015. Greening and Flower Border Construction
Labor and Skills Competition
Henan Provincial Society of Landscape Architecture
Department of Housing and Urban-Rural Development of
Business Upgrade Henan Province, Henan Provincial Agriculture,
Transportation, and Construction Trade Union Committee
?Renamed to Guangdong Palm Landscape Engineering
Co., Ltd.), mainly engaged in landscape engineering
construction, becoming one of the earliest enterprises in the
industry to enter the field of ecological human settlement
environment construction; the Company?s business began
expanding from Guangdong nationwide.
Company Establishment
(Zhongshan Xiaolan Palm Nursery), specializing in nursery
operations, with business covering Guangdong and
surrounding provinces and cities.
Carbon Path Practitioner Award Most Socially Responsible Listed 2025 Listed Company ESG
Company Award Value Communication Award
Securities Star Securities Star Shenzhen Value Online Information
Technology Co., Ltd.
Environmental, Social and Governance (ESG) Report
Palm Design Group
Member Unit of Guangdong Deputy Director Unit of the Planning and
Provincial Landscape Design Professional Committee of Guangdong 2025 Sustainability Design
Architecture and Ecological Provincial Landscape Architecture and Award Winner
Landscape Association Ecological Landscape Association
Guangdong Provincial Landscape Guangdong Provincial Landscape Guangzhou Design Week Rural Creative Design Competition Henan Division Excellent Creativity Award, Third Prize
Architecture and Ecological Landscape Architecture and Ecological Landscape Organizing Committee
Association Association Design Henan·Beautiful Village Creative Design Competition Organizing Committee
Selected as an outstanding case 2024 Guangdong Provincial 2025 American Architecture
in the second China Landscape Environmental Art Design Award Master Prize
Practice Excellence Awards Bronze Prize 4th Trace of Rural Creative Design Competition Finals
Landscape Architecture and Beautiful Guangdong Provincial Environmental American Architecture Master Prize
Outstanding Work Award
China Construction Professional Art Design Industry Association Organizing Committee
Committee, China Society for Urban Trace of Rural Creative Design Competition Organizing Committee, Rural Economic
Studies Research Center of the Ministry of Agriculture and Rural Affairs
and Design Second Prize
Environmental, Social and Governance (ESG) Report
Governance Performance
Social Performance
Total number of reported anti-corruption Number of senior executives participating in
Total investment in employee Labor discrimination incidents Total number of employees taking
and anti-bribery incidents anti-commercial bribery and anti-corruption
training parental leave
training
cases persons RMB items persons
Number of concluded corruption Number of signed integrity agreements and
litigation cases filed related commercial conduct documents Total number of employee training sessions Number of workplace Number of work-related fatalities
safety accidents
cases persons person-times cases persons
Environmental Performance R&D investment Number of customer complaints
(in RMB 100,000,000) times
Total greenhouse gas emissions Number of major administrative penalties imposed by
ecological environment authorities due to environmental
incidents
tons of CO2 equivalent
items
Environmental, Social and Governance (ESG) Report
Sustainable Development
Governance
Palm Eco-Town attaches great importance to sustainable development, integrating its concepts into corporate strategy and management. It
actively identifies and assesses risks in the Company?s management and development process, seeks and seizes development opportunities,
Commitment to Ecological Environmental Protection
and explores sustainable development paths that align with the Company?s actual conditions.
Promoting Livelihood Improvement
Practicing the green development concept that ?lucid
During project operations, in line with the princi-
waters and lush mountains are invaluable assets,? the
ples of ?prosperous industry, eco-friendly habi-
ESG Governance System
Company promotes ecological civilization. In project devel-
tat, civilized rural culture, effective governance,
opment, construction, and operation, it prioritizes ecologi-
and affluent living,? we adapt to local conditions
cal environmental protection, preserving the original natu-
by introducing highly compatible industrial
ral features of project sites and avoiding any destructive
resources to achieve sustainable operations and
development models.
The Company?s board of directors, as the highest decision-making body for ESG governance, is responsible for formulating the Company?s help address regional livelihood topics such as
strategic plans and policies in ESG, ensuring the effective implementation of relevant policies, and assuming full responsibility for related employment and income growth.
policies, systems, and information disclosure. Managers from relevant functional departments and subsidiaries form the ESG report working
group, responsible for the preparation, information collection, and verification of the Company?s annual ESG report.
The Company has established the Social Responsibility System to guide and standardize the implementation of corporate social responsibility
work, promoting the normalization of related activities. The Company actively fulfills its responsibilities for national development, social
progress, ecological environmental protection, and resource conservation, safeguarding the legitimate rights and interests of stakeholders
such as shareholders, creditors, employees, customers, suppliers, consumers, and communities, and promoting the coordinated and
harmonious development of the Company with society and the environment. Prioritizing Employee Care
We advocate for a healthy lifestyle alongside
efficient work, consistently focusing on employee
Practicing Social Welfare growth and development. Through organizing
diverse cultural activities, we institutionalize
Case Study: ESG Training Meeting Upholding the philanthropic philosophy of employee care as part of daily management,
?no boundaries for great endeavors, no helping employees enhance their capabilities and
limits for great love,? we actively engage in realize personal value.
social welfare initiatives, develop various
charitable projects, and support disadvan-
The Company organized the kick-off and training meeting for the
taged groups in society. We contribute to
preparation of the 2025 ESG Report. The meeting interpreted
the development of national social welfare
updates on ESG policies, systematically reviewed the Company?s
in areas such as ecological protection,
ESG practices in the previous year and potential governance
social care, and industry-academia-re-
improvements for the next year. Heads of various departments
search collaboration.
and subsidiaries attended the meeting online/offline.
Responsibility Concept
Environmental, Social and Governance (ESG) Report
Stakeholder Communication Management of Material Topics
The Company emphasizes maintaining close communication with internal and external stakeholders, actively establishing diversified The Company referred to the assessment methods of domestic and international disclosure standards such as SZSE Self-Regulatory Guidelines
communication channels to listen to their expectations and concerns, and responding proactively to jointly advance ESG practices and build a for Listed Companies No. 17 – Sustainability Report (Trial) and GRI 3: Material Topics, introducing perspectives of impact materiality and financial
sustainable future. materiality. A total of 5 topics were identified as financially material, and 18 topics as impact material, with focused responses provided in the
report.
Stakeholders Expectations and Concerns Communication Channels Company Response
Information Disclosure
Improving Corporate Governance
Performance Briefing TOPIC IDENTIFICATION
Steady Operation Enhancing Disclosure Quality
Investor Research
Enhancing Investment Returns Strengthening Investor
Shareholders? Meeting
Steady Performance Growth Engagement
Shareholders and investors Investor Hotline
Increasing Profitability STEP 1
SZSE Interactive Easy Based on an analysis of the macro environment of the operating locations, the industry in which the Company
operates, and the Company?s business model, 23 sustainability topics of significant importance or impact to the
Company and its stakeholders were identified. Identify the Company?s stakeholders and the impacts, risks, and
Employ in Compliance with Laws
and Regulations opportunities the Company faces
Compensation And Benefits
Employee Communication Improve the Compensation and
Training and Promotion
Employee Training Benefits System
Rights And Interests Protection
Employee Care Activities Strengthen Talent Team Building
Employees Occupational Health and Safety
Ensure Occupational Health And
Safety IMPACT MATERIALITY ANALYSIS
Customers
Ensure Product Quality
Provide High-Quality Products
and Services
Protect Customer Privacy
Customer Communication and
Feedback Channels
After-Sales Service
Customer Satisfaction Survey
Strengthen Quality Management
Deepen Research and
Development Innovation
Resolutely Protect Customer
and economy, combining inputs from external stakeholders, benchmarking against industry priorities, and
Privacy expert judgment to assess impact materiality.
Enhance Communication and
Integrity and Mutual Benefit Bidding Activities
Exchange
Stable Cooperation Supplier Exchange
Ethical Procurement
Suppliers FINANCIAL MATERIALITY ANALYSIS
Resolutely Oppose Unfair
Fair Competition
Competition STEP 3 Within short-term, medium-term, and long-term timeframes, identify potential financial impacts of topics by
Industry Cooperation Activities Strengthen Communication and
Technical Exchange
Exhibitions and Seminars Cooperation analyzing risks and opportunities, dependencies, and other factors, incorporating inputs from Company
Industry partners Win-Win Cooperation
Actively Promote Industry
Cooperation
departments and expert judgment to assess financial materiality.
Media Communication
Engage in Public Welfare
Sustainable Development Community Public Welfare
Activities Improve Community
Practicing Social Welfare
Environment
Community and Public Rural Revitalization Activities
PRIORITIZATION OF TOPICS
Implement National Policies
Implement National Policies
Response to the ?Belt and
Road? Initiative
Support for Rural Revitalization
The Company?s management reviews and discusses the assessment results of the impact importance and
financial importance of the topics, and the priority ranking of the topics is ultimately confirmed by the Company?s
Climate Change Response Information Disclosure board of directors, ensuring that the relevant topics are disclosed in the report transparently, balancedly, and
Promote Green Urban and Rural
Rural Revitalization Regulatory Cooperation
Government or
Construction completely.
Compliance Operation
Regulatory Agencies Operate in Compliance with
Laws and Regulations
Legal Tax Payment
Environmental, Social and Governance (ESG) Report
Agenda List Materiality Topic Matrix
In 2025, based on the nature of the industry and disclosure requirements, the Company added the ?Green Building? topic and identified it as
an topic of impact importance.
Very Important
Environmental Safeguarding Employees? Rights
Compliance Management and Interests
Pollutant Emissions Employee Training and
Development Climate Change Response
Importance to Economic, Social, and Environmental Impact
Waste Management
Product and Service Safety and Ecosystem and Biodiversity Conservation
Energy Utilization Quality
Occupational Health and Safety
Water Resource Social Contribution
Environmental Topics Social Topics Governance Topics Utilization Innovation-driven Development
Rural Revitalization
Circular Economy
Anti-Commercial Bribery and
Green Building Anti-Corruption
Climate Change Response Protecting Employee Rights Anti-Commercial Bribery and
Anti-Corruption
Pollutant Emissions Employee Training and Development
Anti-Unfair Competition
Waste Disposal Occupational Health and Safety
Stakeholder Communication
Environmental Compliance Innovation-driven Development
Due Diligence
Management
Product and Service Safety and
Ecosystem and Biodiversity Quality Data Security and Customer Privacy Protection
Protection
Equal Treatment of Small and Medium-Sized
Supply Chain Security Enterprises
Energy Utilization
Stakeholder Engagement Supply Chain Security
Data Security and Customer Privacy
Water Resource Utilization Protection Due Diligence
Moderately Important
Circular Economy Social Contribution Anti-Unfair Competition
Green Building Rural Revitalization
Equal Treatment of Small and
Medium-Sized Enterprises
Moderately Important Importance to Company Finances Very Important
Note: The Company is not involved in scientific research or technological development activities in sensitive areas of scientific ethics, therefore
?Scientific Ethics? has not been listed as a substantive topic in this Reporting Period.
Image Source:Hainan Qingshui Bay Coastal Tourism Resort Project
PART 01
Governance Empowerment,
Steady and Long-Term
Development
Response to Topics?
Anti-Commercial Bribery and Anti-Corruption, Anti-Unfair Competition
Palm Eco-Town has always adhered to the leadership of the Party, continuously optimized its corporate
governance structure, strengthened internal control and risk management capabilities, strictly upheld the
bottom line of business ethics, effectively ensured the Company?s stable operation, and promoted
sustainable development.
Environmental, Social and Governance (ESG) Report
Party Building Guidance Ideological Construction
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the Company thoroughly implements the spirit of the
The Party organization of the Company has fully implemented the accountability system for ideological work, establishing a working pattern
featuring ?unified leadership by the General Party Branch, primary responsibilities borne by the Secretary of the General Party Branch, specific
leadership into all aspects of corporate governance, and ensures high-quality development through high-quality Party building.
responsibilities assumed by leading officials in charge, and joint participation of all functional departments?. It prioritizes centralized theoretical
learning, strictly enforces the ?First Agenda? system, and promotes regular education. Meanwhile, integrating theoretical learning with practical
Organizational Construction activities and combining online and offline learning methods, the organization endeavors to drive in-depth and effective theoretical learning?
The Company insists on treating theoretical learning as the primary political task, carrying it out through various forms such as centralized study
In accordance with the Regulations on the Work of Primary Organizations of State-Owned Enterprises of the Communist Party of China (Trial)
and discussion, individual self-study, and special guidance. In 2025, the Company?s General Party Branch and its subordinate Party branches
and other documents, the Company has formulated Party building work systems based on the actual conditions, continuously improving the
conducted a total of 109 ?Three Meetings and One Lesson? sessions, including 76 by the General Party Branch. Throughout the year, the
Party organization management system and promoting further standardization and normalization of Party building work. During the Reporting
General Party Branch conducted 15 centralized theoretical learning sessions and implemented 52 ?First Agenda? learning items. In addition,
Period, the Company completed the work of incorporating Party building into the charters of the General Party Branch and each Party branch,
the Company coordinated the management of various propaganda platforms, carried out positive publicity around central tasks, optimized the
integrating Party building into governance and systems, and issued the Work Rules for the General Party Branch and Party Branches and revised
content of the Company?s OA Party building column, Party building culture wall, and other carriers, and updated the Party building culture wall
the Five Party Building Work Systems, among others. The Company earnestly implemented the organizational life meeting and democratic
evaluation system for Party members. In February, the annual organizational life meeting was held, where in-depth heart-to-heart talks,
parent group. It assisted regional Party branches in writing 11 articles, achieving a more consolidated ideological front and more precise risk
criticism and self-criticism, and democratic evaluations were conducted, ultimately selecting 7 outstanding Party members to further motivate
control.
them to play a vanguard and exemplary role. In September, the establishment of the General Party Branch and its three subordinate Party
branches was successfully completed. The Company comprehensively reviewed the information of Party members, completed the transfer of
a total of 52 general Party branch committee meetings, 4 Party member meetings, and 16 Party group meetings were held, with 185 items
pre-researched for decision-making.
The Company emphasizes the construction of the Party member team, strengthening the education of Party member development through
methods such as the ?Three Meetings and One Lesson? and centralized training, improving the ideological, political quality, and Party spirit of
the team. During the Reporting Period, 2 probationary Party members were converted to full membership, 2 new development targets were
identified, and the cultivation, education, and assessment of active Party membership applicants were continuously strengthened. Regular
meetings were held for ideological education and professional guidance to ensure outstanding talents are brought into the development ranks.
By the end of the Reporting Period, the Company had established 1 General Party Branch and 7 Party branches, with a total of 89 registered
Party members.
Party Lecture Education and Learning on the Spirit of the Central Eight-Point
Regulations
Work Style Construction
The Company strictly implemented all deployments on Party conduct and clean governance, integrating the education and learning of the spirit
of the Central Eight-Point Regulations throughout the year. It conducted 13 special learning sessions, sent over 2,400 pre-holiday reminder
messages, and analyzed 38 typical cases, promoting Party members and cadres to be in awe and maintain vigilance. It conducted 4
comprehensive inspections on the implementation of the spirit of the Central Eight-Point Regulations and its detailed rules, identified and
rectified 9 topics, and improved 9 rectification measures, ensuring the spirit of the Eight-Point Regulations was truly implemented in the
Company.
General Party Branch Election
Environmental, Social and Governance (ESG) Report
Party Building Brand
Corporate Governance
The Company adheres to the philosophy of ?Party building guidance and deep integration? and
has established an exclusive Party building brand (LOGO) identity, forming an innovative path for
deep integration of Party building under the brand of ? Palm? Honesty and Hard Work, ?Tree?
Commitment and Responsibility.? Combined with the actual situation of the Company's Party
branch, it has developed a distinctive ?Three Three Six? Party building brand working method.
Governance Structure
The Company focuses on creating an outstanding Party building brand, using ?brand
strengthening to empower corporate culture upgrading,? deeply promoting the integration of The Company strictly complies with the requirements of relevant laws and regulations such as the Company Law of the People’s Republic of
Party building and business, enhancing the combat effectiveness, cohesion, and centripetal force China, the Securities Law of the People’s Republic of China, and the Guidelines for Corporate Governance of Listed Companies. It has formulated
of grassroots Party organizations, continuously improving the quality and level of Party building internal rules and regulations including the Articles of Association, Rules of Procedure for Shareholders’ Meetings, and Rules of Procedure for
work, and providing a strong political guarantee for driving the Company's high-quality Board Meetings. During the Reporting Period, these were revised and issued in accordance with the latest requirements of relevant laws,
development. regulations, and guidelines. The Company continuously improves its corporate governance structure, forming a governance mechanism with
clear responsibilities, mutual coordination, and checks and balances to ensure standardized operation. During the Reporting Period, in
accordance with the Company Law, Guidelines for Articles of Association of Listed Companies, and Transitional Arrangements for the
The general Party branch of the Company has effectively integrated resources from all sides and improved the overall efficiency of Party Implementation of Supporting Rules and Regulations for the New Company Law, as well as other relevant laws and normative documents, the
building through the ?Party Building +? joint construction model. It has given full play to the role of in-service Party members, carried out joint Company abolished the Board of Supervisors based on its actual situation. The responsibilities of the Board of Supervisors as stipulated by the
construction activities with sub-district communities and other Party organizations, set up ?Party Member Demonstration Posts? and ?Party Company Law are now exercised by the Audit Committee of the Board of Directors.
Member Strike Teams?, urged Party members to participate in community-level governance in a solid and effective manner, and guided them
to excel in their own positions and strive for excellence.
In 2025, a total of 13 themed Party Day activities were carried out. During the Reporting Period, the Company held:
| Shareholders? Meeting
The convening and conduct of shareholders? meetings, the qualifications of attendees, and the voting procedures all complied with the
Company Law, Rules of Procedure for Shareholders’ Meetings, and other laws and regulations. The Company strictly sent meeting notices to
shareholders 15 or 20 days before the meeting and engaged law firms to topic legal opinions on the shareholders? meetings. Shareholders?
meetings were conducted both on-site and online to facilitate participation by minority shareholders. For major matters affecting the interests
of minority investors, separate voting was implemented to ensure all shareholders could fully exercise their rights.
Activities for the 104th Anniversary of
Themed Party Day Activities the Founding of the Party
Environmental, Social and Governance (ESG) Report
| Board of Directors ·Board Diversity
The Board of Directors is the decision-making body of the Company and is accountable to the shareholders? meeting. All directors performed The Company considers factors such as age, educational background, and professional experience to ensure board diversity while meeting
their duties in accordance with the Articles of Association, Rules of Procedure for Board Meetings, Independent Director System, and other business needs. The Company?s directors possess profound industry expertise and extensive corporate management experience, enabling them
requirements, attending board and shareholders? meetings diligently and responsibly. to participate in corporate governance decisions from multiple perspectives.
As of December 31, 2025, the composition of the Company?s board is as follows:
?Special Committees of the Board of Directors
The Company?s Board of Directors has established three special committees: the Strategy Committee, the Nomination and Remuneration Board Diversity
Committee, and the Audit Committee, each with corresponding working rules. Independent directors account for more than one-third of each
committee, ensuring the scientific and standardized decision-making of the Board of Directors.
Board Members (persons) 4
Special Committees Members Independent Directors Whether Independent Directors
(persons) (persons) Serve as Chairpersons Independent Directors
(persons)
Non-Independent Directors
Strategy Committee 5 2 No
Nomination and Remuneration Committee 5 3 Yes
Audit Committee 3 2 Yes
By Gender By Educational By Age
(persons) Background (persons) (persons)
·Independence of the Board of Directors 10 3
The Company formulated the Independent Director System and completed revisions during the Reporting Period in accordance with the latest Male Doctor Postgraduate Born in the 1950s Born in the 1970s
legal and regulatory requirements, further standardizing corporate operations and the conduct of independent directors to continuously
Female Bachelor Born in the 1960s Born in the 1980s
improve governance standards. Independent directors owe duties of loyalty and diligence to the Company and all shareholders, perform their
duties independently, and are not influenced by the Company, its major shareholders, actual controllers, or other entities or individuals. The
Company strictly appoints four qualified experts as independent directors in accordance with regulations, accounting for more than one-third
of the total number of board members.
| Director and Executive Compensation Management
In accordance with the Company’s Articles of Association and other relevant regulations, the Company determines the compensation plans for
Key Performance: directors and senior executives based on industry and regional income levels and the Company?s actual operating conditions. During the
Reporting Period, to further deepen the compensation distribution system of ?performance aligned with rewards? and strengthen the
compensation management for directors and senior executives, the Company adjusted the compensation for non-independent directors and
senior executives, with the adjustment plan approved by the shareholders? meeting. At the same time, the Company formulated the ?Senior
During the Reporting Period, the Company held special meetings for Executive Compensation and Performance Evaluation Management System? to further improve the incentive and constraint mechanism closely
linked to operational performance and enhance the Company?s operational management efficiency. The compensation structure for
independent directors.
non-independent directors and senior executives consists of a base salary plus performance-based pay. The base salary is an annual fixed
remuneration paid monthly, while the performance-based pay is a variable remuneration paid according to the Company?s relevant evaluation
systems and results. Independent directors receive a fixed annual salary, determined on an annual basis and paid monthly.
Environmental, Social and Governance (ESG) Report
| Investor Relations Management
Performance-Linked Principle
The Company values investor relations management and revised the Investor Relations Management System during the Reporting Period to
Individual annual income is linked to performance targets. Through the signing and further strengthen communication between the Company and investors and standardize investor relations management. The Company
evaluation of performance target responsibility agreements, the Company and individual conducts investor communication through various channels, including the Company?s official website, telephone, fax, email, on-site investor
performance are incentivized. research visits, earnings conference calls, and participation in collective investor reception days in Henan Province, promptly addressing
investors? concerns and maintaining a good trust relationship between the Company and investors. Meanwhile, while complying with
information disclosure rules, the Company has established a major event communication mechanism with investors. When formulating major
Compensation Principle of Efficiency First with Due Consideration to Fairness plans involving shareholder rights, the Company engages in full communication and consultation with investors through various means.
Plan Principles
The annual salary level should not only help motivate managers and special key talents, but
also take into account the Company?s management status and industry compensation
standards.
Principle of Comprehensive Incentives
Combine fixed income with risk rewards, short-term incentives with long-term incentives, Key Performance
and material incentives with spiritual incentives. Be realistic, open, and fair, and implement
scientific assessments.
Protection of Investors? Rights and Interests
Participated in/received investor research activities 5 times, including hosting 1 online earnings conference call for
| Information Disclosure the annual report and participating in 1 collective investor reception day in Henan Province.
The Company strictly complies with laws and regulations such as the Administrative Measures for Information Disclosure of Listed Companies
Interacted with investors times on the Shenzhen Stock Exchange?s Interactive Easy platform, with a response rate
and has established systems including the Information Disclosure Management Measures and the Registration and Filing System for Insiders with
Access to Inside Information to standardize external information disclosure practices, ensuring timely, truthful, accurate, and complete
information disclosure, and safeguarding the fair right to know for all investors, especially small and medium-sized investors. At the same time, of .
the Company attaches great importance to the management of inside information. Unpublished matters shall not be disclosed in advance to
any individual or unit, and insider trading is strictly prevented to maintain the fairness, impartiality, and transparency of the Company?s
information disclosure.
Key Performance
| Public Opinion Management
During the Reporting Period, the Company disclosed 4 periodic reports, 116 temporary announcements (excluding
To enhance the Company?s ability to respond to various public opinions, during the Reporting Period, the Company formulated the Public
Opinion Management System in accordance with relevant laws, regulations, and the Company Articles of Association, based on the Company?s
actual situation. This established a rapid response and emergency handling mechanism for public opinions and set up a leading group for public
opinion management, with the chairman serving as the head, to ensure timely and appropriate handling of the impact of various public opinions
periodic reports), and online materials (including all externally disclosed documents such as periodic reports, on the Company?s stock price, commercial reputation, and normal business operations, effectively protecting the legitimate rights and interests
of investors.
temporary announcements, and intermediary reports).
Environmental, Social and Governance (ESG) Report
Tax Management
Risk Management and Internal Control The Company has established a tax risk management system centered on institutional improvement, professional support, and dynamic
compliance, integrating tax risk management with internal controls and external communication to achieve full-process and full-chain tax risk
control. The Company has formulated the Tax Management System and management processes for various taxes, with the Finance Department
uniformly responsible for organizing, supervising, and managing tax-related work, while the financial departments of each unit are responsible
Risk Management System for implementing tax-related matters locally to ensure lawful and compliant tax payments.
The Company treats risk management as a key task, continuously improving relevant systems and risk prevention mechanisms. Through regular
To strengthen internal controls, the Company has established specialized management systems and internal control processes to standardize
risk assessments, the Company identifies and evaluates various internal and external risks that may affect its operations, covering key areas
financial behavior and mitigate potential risks. By improving financial accounting systems and maintaining strict accounting records, the
such as production and operations, financial conditions, external guarantees, litigation and enforcement, and information disclosure, forming
Company ensures the authenticity and accuracy of tax filings. For annual settlements and complex tax-related matters, the Company relies on
quarterly Risk Assessment Reports. Based on assessment results, the Company formulates response measures and recommendations for specific
professional advice from tax consultants to ensure compliance and avoid risks arising from misinterpretation of policies. In response to major
risk items, implements dynamic risk management, and promptly handles daily risk events to ensure the continuous and effective operation of
tax policy adjustments, the Company dynamically optimizes tax strategies and promptly updates contracts, invoices, and tax management
the risk prevention mechanism. At the same time, through organizing legal publicity and training, the Company continuously enhances the risk
processes. Additionally, the Company regularly conducts self-assessments of tax risks, develops response plans in advance, and conducts
awareness and response capabilities of all employees, providing a solid foundation for lawful and compliant operations.
timely reviews and rectifications. It actively strengthens communication with tax authorities to effectively reduce information asymmetry risks.
The Company also focuses on enhancing the professional capabilities of its tax team, dynamically tracking tax policies and organizing training
sessions. It has introduced digital management tools, embedding tax management modules into the ERP system to enable automatic alerts and
Internal Audit audits of tax-related rules, continuously improving the intelligence and standardization of tax management.
The Company continuously improves its internal control management system, formulating the Internal Audit Work Regulations and supporting
Compliance Operations and
standard manuals to inspect and supervise the compliance of various business processes. The Company conducts regular internal control
evaluations annually and tracks and rectifies the evaluation results. Additionally, external audit institutions are hired to conduct independent
audits, resulting in internal control evaluation reports and internal control audit reports, continuously optimizing the internal control system and
enhancing its effectiveness and risk prevention capabilities.
Business Ethics
During the Reporting Period, no significant or material deficiencies in the design or execution of the Company?s internal controls were
identified.
Compliance Operation
To strengthen compliance management and effectively mitigate compliance risks, the Company has formulated the Compliance Management
Measures, establishing a robust compliance management system and improving mechanisms including institutional construction, risk
Key Performance identification, compliance reviews, risk response, performance evaluation, compliance culture, and supervision and accountability to ensure
steady development. The Company has established a three-tier compliance management system at the governance, management, and
execution levels. The governance level includes the Company?s Party organization and board of directors, while the management level includes
the executive team, compliance management leadership group, and chief compliance officer. The execution level follows a ?three lines of
defense? arrangement, with the risk control and legal department leading compliance management, responsible for organizing, guiding, and
promoting compliance efforts. Disciplinary inspection agencies and departments such as audit, inspection, and accountability supervise the
During the Reporting Period, the Company conducted internal audits, including special engineering audits, economic implementation of compliance requirements within their authority and investigate violations.
The Company integrates compliance management into key operational areas such as corporate governance, contract management, and market
responsibility audits, internal control management system audits and evaluations, and regular inspections required by the
transactions, as well as international operations, to enhance the effectiveness of compliance management and promote high-quality
development. Additionally, the Company incorporates compliance management into the Party organization?s legal training, annually developing
a legal compliance training plan to strengthen compliance education and awareness, fostering a culture of compliance and lawful operations.
Shenzhen Stock Exchange, identifying topics and proposing audit recommendations.
At the same time, the Company leverages digital processes to ensure the implementation of compliance outcomes.
Environmental, Social and Governance (ESG) Report
Case Study: Legal Training on Corporate Governance and
State-Owned Asset Management Requirements for
State-Controlled Listed Companies Anti-Commercial Bribery and Anti-Corruption
The Company adheres to the business philosophy of integrity, incorporating clean governance into routine management, and resolutely
opposes and strictly prohibits all forms of corruption and fraudulent behavior. The Company continues to improve its clean governance risk
prevention system, strictly complying with national anti-corruption laws and regulations. It has established multiple disciplinary inspection and
The Company invited senior lawyers with professional expertise to conduct training sessions for all employees, organizing legal
supervision systems, including the Internal Supervision Management System, Clean Employment Management Regulations, Complaint and
training to provide a more systematic and in-depth understanding of legal knowledge among the staff. This enhanced
Reporting Work Management Regulations, Interim Measures for Accountability for Violations in Business Investment, and Talk Work Management
employees? compliance awareness, improved their professional capabilities, and enabled them to better handle practical topics
Measures. Additionally, the Company joined the Enterprise Anti-Fraud Alliance Committee (Guangdong Enterprise Internal Control Association)
encountered in their work, thereby increasing work efficiency and quality.
to further promote a clean and fair business environment. During the Reporting Period, the Company did not incur any major penalties related
to commercial bribery or embezzlement incidents.
Internally, the Company continuously strengthens awareness of clean self-discipline by having employees sign the Clean Employment
Commitment Letter and the Clean Governance Responsibility Letter. Externally, the Company signs Clean Employment Contracts with relevant
partners, extending clean governance requirements to the entire business collaboration process, building an integrated internal and external
clean governance system to lay a solid foundation for sustainable development.
Key Performance
Conducted 1 legal training session.
Key Performance
Number of employees participating in anti-commercial bribery and anti-corruption training: 213
Number of senior management personnel participating in anti-commercial bribery and anti-corruption training: 5
Total duration of anti-commercial bribery and anti-corruption training: 8.08 hours
During the Reporting Period, the Company obtained the Compliance Management System
Certification issued by the China Quality Certification Center, successfully passing the GB/T
Number of employees signing the Clean Employment Commitment Letter and Clean Governance Responsibility Letter:
compliance management systems. This marks significant achievements in the Company?s
compliance management field, elevating its legal compliance level and risk prevention
capabilities to a new stage.
Number of clean governance-related promotional articles published on the Company OA:
Compliance Management System
Certification
Number of ?Clean Culture into Projects? initiatives implemented: 3
Environmental, Social and Governance (ESG) Report
The Company continues to promote the development of an integrity culture. Through diverse forms such as integrity training and warning
education, it raises awareness of ethical practice among all employees and jointly fosters a clean, upright and healthy organizational
atmosphere.
Anti-Unfair Competition
Case Study: ?Strengthening Work Style Construction and Building a The Company strictly adheres to laws and regulations such as the Anti-Unfair Competition Law of the People’s Republic of China and the
Clean Defense Line? Pre-Holiday Warning Education Activity Anti-Monopoly Law of the People’s Republic of China, upholding fair, just, and open principles in commercial competition. In 2025, the Company
formulated four marketing systems, including the Construction and Operation Project Marketing Research and Judgment Management
Measures, and conducted related policy interpretations for some market personnel, clarifying the norms and processes for market work. It
continues to establish and improve fair competition and responsible marketing operational mechanisms, actively maintaining a healthy and
orderly market environment.
During the Reporting Period, the Company did not experience any litigation or major administrative penalties arising from false advertising or
unfair competition practices.
Reporting and Whistleblower Protection
The Company places high importance on reporting management and whistleblower protection, striving to create a safe and reliable reporting
environment. The Company has established the Complaint and Reporting Work Management Regulations to standardize the management of
complaints and reports. The Discipline Inspection and Supervision Department, as an independent oversight body, is fully responsible for the
acceptance and investigation of complaints and reports. To facilitate internal employees and external stakeholders in raising topics, the
Company has established multiple and accessible reporting channels, including reporting hotlines, email, and mailboxes, to receive information
on violations of rules and discipline. The Discipline Inspection and Supervision Department promptly accepts and handles complaints and
reports, conducts investigations based on the reported information, and strictly holds violators accountable according to the investigation
Case Study: ?Ringing the Pre-Holiday Clean Bell and Tightening the
results. At the same time, all reported information and the identity of whistleblowers are kept strictly confidential.
Discipline String? Clean Governance Warning Education Meeting
Reporting Hotline 020-85189210/85189209 (landline) 13825186571 (mobile)
Reporting Email zljc2021@163.com
Reporting Mailbox
International Center, Guangzhou (east side fire stairwell)
Reporting Website http://report.palm-la.com:8099/kipoff.aspx
Mailing And 16-18th Floor, Building 3A, Zhengzhou Haihui Center, Intersection of Dongfeng South Road and Kangning
Visiting Address Street, Zhengdong New District, Zhengzhou (Discipline Inspection and Supervision Department), Postal
Code: 450000
Image Source:Shanghai Green Gem Garden·Feifan
PART 02
Building Green, Towards
Beauty
Response to Topics?
Climate Change Response, Environmental Compliance Management, Energy
Utilization, Water Resource Utilization, Pollutant Emissions, Waste Management,
Circular Economy, Ecosystem and Biodiversity Protection, Green Building
Palm Eco-Town consistently practices the green development philosophy of ?Lucid waters and lush mountains are
invaluable assets,? actively responds to the national ?Dual Carbon? policy, establishes and improves an environmental
management system, advances environmental protection management, and deeply develops green innovation
technologies such as garden plant cultivation, ecological restoration, and low-carbon environmental protection,
contributing to the national ecological civilization construction and the development of new quality productivity.
Environmental, Social and Governance (ESG) Report
Climate Change Response Governance
The Company incorporates ?Climate Change Response? as a core issue in its sustainable development and gradually advances the
establishment of a climate governance system. The board of directors is the highest body, overseeing and coordinating climate change
management. Functional and business departments collaborate to implement and advance specific climate action initiatives.
The Company actively responds to the ?Dual Carbon? policy, integrating it into corporate development strategies and production
management. Based on the Company?s actual conditions, feasible green development planning measures and pathways are adopted to
support the national carbon peak and carbon neutrality goals. In accordance with exchange guidelines and the recommendations of the Task
Force on Climate-related Financial Disclosures (TCFD), the Company manages and discloses climate-related matters across four areas: Strategy
governance, strategy, risk and opportunity identification, and indicators and objectives.
The Company closely monitors the impact of climate change and adopts proactive strategies to gradually build long-term climate resilience,
aiming to effectively address climate challenges and seize opportunities from transformational development.
Potential Financial
Risk Type Risk Description 1Impact Cycle Impact Response Measures
Strengthen monitoring of weather forecasts and enhance extreme weather risk
Sudden extreme weather events, such as typhoons, heavy rain, or storms, may cause
prevention measures, flexibly adjusting project timelines based on weather
infrastructure damage, engineering structural failures, or lead to water and power outages, Increased
conditions;
ACUTE RISK further resulting in work stoppages, delayed project deliveries, and impacts on operations Short to medium term operational costs,
Purchase relevant insurance for employees to enhance safety protection;
and customer relationships. Employees may be unable to work due to extreme weather or decreased revenue
Develop and implement detailed disaster contingency plans to ensure rapid
face safety risks, leading to labor shortages and reduced productivity.
operational recovery.
PHYSICAL RISK
Long-term climate changes, such as rising temperatures and sea levels, may affect business Increased
Reasonably arrange working hours, enhance high-temperature work protection, and
CHRONIC RISK operations. Prolonged high temperatures could increase work difficulty and impact employee Long term operational costs,
improve working conditions.
health. decreased revenue
Domestic and international climate change and energy management policies and
POLICY AND requirements are continuously evolving, imposing higher demands on corporate low-carbon Increased Closely monitor the latest domestic and international climate-related policies and
Short to medium term
LEGAL RISKS development. Failure to comply with local legal requirements or disclose relevant compliance costs regulations and respond promptly.
information may result in regulatory penalties and other risks.
Market customer preferences are gradually shifting towards products, services, or design
Increased operational
concepts that are more low-carbon and environmentally friendly, which may increase design Actively adopt environmentally friendly materials and green building technologies;
MARKET RISK Short to long term costs; increased R&D
difficulty and operational costs. Failure to meet customer demands may impact business incorporate low-carbon and environmental considerations into designs.
costs
operations.
TRANSITION RISK
Increased management
REPUTATION As stakeholders pay more attention to climate change, the Company?s reputation may be Strengthen communication with stakeholders and disclose the Company?s climate
Medium to long term costs; decreased
RISK affected if improvements/enhancements are not made in a timely manner. change response measures in a timely and accurate manner.
operating revenue
Environmental, Social and Governance (ESG) Report
Opportunity Type Opportunity Description 1Impact Cycle Potential Financial Impact
Short-term (within 1 year): The impact on the Company is
By developing green, low-carbon, and environmentally friendly technologies or services, the Medium to
PRODUCTS AND Increased operating revenue usually rapid and temporary, with a short duration typically not
SERVICES Company can enhance its competitive advantage and profitability. long term
exceeding 1 year.
Medium-term (1–5 years): The impact on the Company is more
sustained, usually exerting significant influence within 1 to 5
With the growing global focus on climate change, demand for ecological governance and
years.
green, low-carbon construction may continue to rise. The Company can gain market share by Medium to
MARKET Increased operating revenue Long-term (over 5 years): The impact on the Company is
OPPORTUNITIES deepening its expertise in areas such as landscape plants, ecological restoration technologies, long term
profound and lasting, typically lasting more than 5 years.
and green, low-carbon technologies.
Impact, Risk, and Opportunity Management | Extreme Weather Management
To systematically identify and manage climate-related risks and opportunities, the Company integrates climate-related risks into its The Company?s construction projects are susceptible to sudden weather events such as typhoons. To effectively respond to and mitigate the
comprehensive risk management process, covering the entire process from risk identification to response measures. Through continuous impact of such risks, the Company has established comprehensive emergency plans and strengthens communication with meteorological
monitoring and regular evaluation, the Company ensures timely responses to new challenges and opportunities brought by climate change. departments to take preventive measures against extreme weather in advance.
IDENTIFICATION ASSESSMENT RESPONSE
Actively identify the physical Evaluate the influencing factors Based on the evaluation results,
risks, transition risks, and of the identified risks and the Company formulates
potential opportunities the opportunities one by one, as targeted response measures to TYPHOON, STRONG WIND HEAVY RAIN, TORRENTIAL RAIN LOW TEMPERATURE, RAIN, SNOW, AND ICE
Company faces. Based on the well as their potential major equip itself with the ability to
Reinforce fences, work sheds, and Clear drainage pipes and ditches Provide workers with cold-proof
Company?s actual situation and financial impacts and the time address climate challenges and
other facilities in advance, remove before construction, install clothing and take insulation measures
industry trends, and referencing cycle of these impacts. seize opportunities.
items that can be blown away by intercepting ditches and sumps for temporary facilities. Clear snow
domestic and international
wind, and secure lifting equipment. around foundation pits, and equip and water accumulation in time, lay
policy changes, define and
During typhoons and strong winds, with sufficient water pumps. Suspend anti-slip materials in slippery areas,
describe the risks and
suspend high-altitude and open-air outdoor operations such as earthwork and check the stability of
opportunities brought by
lifting operations, and promptly and concrete pouring, and cover high-altitude work facilities.
climate change to the Company.
evacuate personnel to safe indoor excavated areas for protection. High-altitude operations are strictly
areas. prohibited in severe weather, and
safety precautions must also be
implemented for indoor operations.
Management Process
Environmental, Social and Governance (ESG) Report
Indicators and Objectives
Supporting the Dual-carbon Goals
The Company actively identifies climate-related indicators, formulates carbon reduction targets based on actual conditions, and adopts a series
The Company has long been committed to the research, promotion, and application of green, low-carbon, and environmentally friendly
of management measures to reduce greenhouse gas emissions and promote goal achievement.
technologies. Leveraging its platform advantages, it collaborates with research institutions for industry-academia-research innovation, forming
multiple green technology achievements to promote green and low-carbon transformation in industry, agriculture, and services. In 2025, the
Company conducted in-depth research in areas such as green and low-carbon, modern agriculture, ecological restoration, and garden plants,
developing a series of technological achievements that effectively improved the quality and efficiency of green construction, reduced
construction costs, and achieved synergistic enhancement of green development and economic benefits.
Carbon Reduction Goals
By 2030, green construction levels will be significantly improved, effectively reducing construction energy consumption and Case Study
carbon emissions.
Since 2021, the Company has collaborated with Henan Agricultural University and the Shanghai Academy of Landscape
Architecture Science and Planning for industry-academia-research cooperation. Combining independent research projects
Key Performance and drawing on forestry carbon sink measurement methods, it proposed methods for carbon storage investigation, carbon
pool determination, and biomass measurement tailored to urban green space characteristics and carbon pool composition,
providing references for urban green space carbon sink measurement. On October 17, 2025, the group standard Technical
Specification for Carbon Storage Measurement in Urban Green Spaces, led by the Company, was reviewed and approved by
the Standard Committee of the Henan Society of Landscape Architecture and officially released. This standard aims to
Total Greenhouse Gas Emissions tons of CO₂ equivalent
provide a scientific basis for the measurement and management of carbon sequestration in Henan?s green spaces,
supporting the regional ?dual carbon? goals while offering ecological support for the ecological protection and high-quality
development of the Yellow River Basin.
Indirect Greenhouse Gas Emissions (Scope 2) tons of CO₂ equivalent
Statistical Scope: Calculated based on electricity consumption of the Zhengzhou headquarters office and Guangzhou branch office.
Case Study
In 2025, the Company deepened its research on carbon
sequestration-related technologies in landscaping, completing
the screening and evaluation of high carbon-sequestration tree
species for Henan?s urban greening, providing scientific support
for urban ecological construction. The Company?s project
Screening and Evaluation of High Carbon-Sequestration Tree
Species for Henan’s Urban Greening won the second prize for
Scientific and Technological Progress from the Henan Society of
Landscape Architecture.
Environmental, Social and Governance (ESG) Report
Environmental Compliance
Management Case Study
On August 16, 2025, the Company organized a training session on green construction practices related to ?formwork
Guided by the principles of building a resource-efficient society, improving living environments, and enhancing sustainable development engineering.? The meeting focused on exploring ways to reuse discarded formwork generated during construction,
capabilities, the Company has established a sound environmental management and execution system, implementing effective control measures summarizing multiple reuse methods. It also emphasized handling materials carefully during construction to reduce dust
throughout its production and operations to minimize environmental impact, safeguarding the ecological environment and supporting and increase the reuse rate of formwork.
sustainable development through concrete actions.
Environmental Management System
The Company strictly adheres to laws and regulations such as the Environmental
Protection Law of the People’ s Republic of China and related standards, following
environmental management policies. It has formulated the Environmental
Management System, establishing an organizational structure led by the general
manager, overseen by the production deputy general manager, and implemented
by the technical safety department and various regions, branches, and project
departments, continuously improving the environmental management system to
standardize all production and operational activities and strictly enforce
environmental control requirements.
During the Reporting Period, the Company completed the renewal of its GB/T
or criminal liabilities imposed by environmental authorities due to violations. Environmental Risk Management
The Company strictly controls environmental risks, actively identifying and evaluating environmental factors, systematically inspecting key
production and operational processes, dynamically updating environmental factor records, implementing preventive measures, improving
environmental emergency plans, and continuously enhancing risk prevention and response capabilities to ensure all environmental risks are
under control and safeguard ecological security.
| Environmental Factor Identification and Evaluation
| Environmental Training
In accordance with the Environmental Management System, the Company standardizes the process of identifying and evaluating environmental
The Company regularly conducts specialized environmental training to clarify corporate environmental management requirements, guide factors, formulating the Environmental Factor List, Environmental Factor Identification and Evaluation Form, and Environmental Factor
employees in standardized and green operations, continuously enhance environmental awareness and competency, and provide solid support Assessment and Management Plan. It conducts comprehensive identification and evaluation focusing on pollution emissions, energy and
for achieving the Company?s environmental protection goals. resource consumption, and other key dimensions, tailored to the environmental conditions of the Company and its branches.
Environmental, Social and Governance (ESG) Report
Wastewater Control Measures
| Environmental Inspection
During the Reporting Period, the Company routinely conducted specialized environmental inspections, monitoring, and hazard identification,
organizing over 50 environmental inspections covering all ongoing projects and ensuring full coverage of key environmental aspects. Identified
The oil-water separation discharge from canteen kitchens must be equipped with grease
environmental issues were all minor hazards, with no major violations. They mainly involved insufficient dust and waste control during
traps, which must meet the standard 3-level discharge requirements, and be cleaned
construction and minor delays in maintaining environmental facilities. All identified issues were promptly addressed and rectified on schedule.
regularly.
Additionally, the Company established long-term prevention mechanisms, conducted ?follow-up inspections?, improved environmental
inspection workflows, and consolidated rectification results to ensure closed-loop management.
Septic tanks should be installed for toilets in living and office areas and environmental
mobile toilets at construction sites. The project department assigns dedicated personnel
to clean them regularly and maintain cleaning records.
Domestic Sewage
| Environmental Emergency Management
The Company establishes and improves an emergency response mechanism for sudden environmental accidents. Based on the environmental
risk identification results of various projects in terms of chemical leaks, flood prevention, waterlogging, extreme weather, etc., targeted
environmental pollution emergency plans are formulated. At the same time, in strict accordance with the requirements of the plan, Drainage ditches should be set up around the project department area, along with
environmental emergency drills are regularly organized and conducted to continuously improve emergency response capabilities. three-level sedimentation tanks and sumps, to effectively control the sediment content
in wastewater discharged into municipal sewage pipes.
When formulating construction plans, fully consider adopting reasonable technical
means or other economically feasible methods to reduce water usage and the use of
Pollutant Emissions chemicals and oils, thereby minimizing wastewater generation at the source.
Dynamically monitor relevant indicators of sumps at construction sites, fill out the
The Company strictly complies with laws and regulations such as the Water Pollution Prevention and Control Law of the People’s Republic of
Wastewater Monitoring Record Form, and determine and implement measures to address
China, the Air Pollution Prevention and Control Law of the People’s Republic of China, and the Solid Waste Pollution Prevention and Control Law
issues based on wastewater assessment results.
of the People’s Republic of China. It comprehensively carries out pollution prevention and control work, strictly controls the generation and
emission of pollutants such as wastewater, exhaust gas, waste, and noise in all aspects of the Company?s operations and project construction,
clarifies pollution prevention and control goals, continuously reduces environmental impact, and earnestly fulfills ecological and environmental Wastewater treatment and purification should be carried out in sedimentation tanks, and
Construction the PH value should be measured before discharge to ensure pollution-free emissions.
protection responsibilities.
Site Wastewater The interior of sedimentation tanks should be waterproofed to prevent water from
seeping into the soil.
The ground at construction sites should be treated to prevent leakage, avoiding the
| Wastewater Management spillage, leakage, or dripping of oils to prevent water pollution.
The Company strictly adheres to the Integrated Wastewater Discharge Standard (GB 8978-1996) for wastewater discharge, implements
measures for the separation of rainwater and sewage, and comprehensively uses physical, chemical, and biological treatment processes to
classify and treat wastewater, effectively reducing water pollutant emissions and continuously improving water resource utilization and
pollution control levels.
Environmental, Social and Governance (ESG) Report
| Waste Gas Management
With the goal of achieving a significant reduction in sulfur dioxide emissions by 2030, the Company strictly adheres to the Integrated Emission
Standard of Air Pollutants (GB 16297) for exhaust gas emissions. For emissions such as dust at construction sites and exhaust from construction
| Noise Management
vehicles and machinery, the Company formulates and implements comprehensive control measures throughout the process to minimize
pollutant emissions, ensure compliance with air pollutant standards, and reduce the impact on the surrounding environment. The Company?s construction site formulates noise reduction measures in accordance with the requirements of Measurement Method of Noise
at Construction Site Boundary (GB/T 12524) and Noise Limits for Construction Sites (GB/T 12523). Noise monitoring points are set up around
the construction site for regular dynamic monitoring and timely recording of noise levels to ensure noise emissions do not exceed national
Exhaust Gas Control Measures standards. For projects that may generate environmental noise pollution during construction in urban areas, the Company submits detailed
information of the project to the local environmental protection administrative department 15 days before the start of construction in
accordance with relevant requirements.
Regularly sprinkle water on roads and material storage areas at construction sites to increase
air humidity, settle dust particles, and reduce dust.
Main roads at construction sites should be hardened according to their use, and soil should Noise Control Measures
be stored in concentrated piles. Exposed areas and concentrated piles of soil should be
covered, solidified, or greened.
Set up enclosures around construction sites and use dense mesh to enclose building Preferentially use low-noise construction equipment and processes, such as hydraulic pile
construction to prevent dust from spreading outward. drivers instead of diesel pile drivers; regularly maintain and service high-noise equipment to
Particulate ensure normal operation and reduce noise caused by equipment failure.
Matter Control Install bag filters, cyclone dust collectors, etc., on equipment with high dust generation such Noise Source Control
as concrete mixing stations and material crushing to collect and remove particulate matter
from exhaust gases.
Set up sound barriers, soundproof covers, etc., at the construction site to block noise
Strictly select building and decoration materials. For example, asphalt and coal tar-based transmission; reasonably arrange the construction layout to keep high-noise equipment as far
anticorrosives are prohibited in civil building decoration, and non-environmentally friendly away as possible from sensitive areas such as residential zones.
fuels like coal must not be used in canteens at construction sites to reduce pollution at the Transmission
source. Path Control
Strengthen the control of emissions from flame retardants, concrete admixtures containing
Reasonably schedule construction times to avoid high-noise operations during nighttime
ammonia, and welding fumes generated during steel bar welding used in construction to
(22:00 to 6:00 the next day) and lunch breaks. If nighttime construction is necessary due to
ensure compliance with national standards.
special circumstances, a nighttime construction permit should be obtained in advance, and
nearby residents should be notified.
Use adsorbents such as activated carbon to absorb harmful gases in exhaust, such as benzene Time Control
and formaldehyde.
Under the action of catalysts, convert harmful gases in exhaust into harmless substances,
Gas Pollutant Control
such as converting nitrogen oxides into nitrogen and water.
Strengthen patrols at construction sites and strictly prohibit the burning of waste on-site.
purification before emission.
Construction vehicles and machinery must undergo regular annual inspections to ensure their
exhaust emissions comply with national annual inspection requirements.
Environmental, Social and Governance (ESG) Report
| Waste Management At the same time, the Company continuously improves construction quality standards, strengthens recycling, and other measures to achieve
source reduction and resource utilization, minimizing the generation of solid waste and ensuring full utilization and safe disposal.
The waste generated during the Company?s production and operation activities mainly includes construction waste at construction sites,
domestic waste from office and living areas, and hazardous waste. The Company strictly follows relevant regulations to classify and manage
waste and ensure compliant disposal, striving to achieve standardized waste management goals. During the Reporting Period, the Company
Waste Recycling Measures
achieved a 100% compliant waste disposal rate.
Construction Surplus Materials Such as
Reuse to produce secondary structural lintels, wooden bricks, and component formwork, etc.
Concrete, Steel Bars, and Formwork
Waste Treatment Measures
Adopt measures such as splicing wooden battens for reuse, achieving the recycling of
Wood Scrap
construction waste.
Set up recyclable and non-recyclable trash bins in living and office areas, arrange for
dedicated personnel to transport the waste daily, and fill out the domestic waste transport Residues Such as Aerated After crushing, mixing, and other treatments, they are used for backfilling and reuse in
record form. Concrete Blocks and Mortar equipment rooms, bathrooms, and other sunken rooms.
Toxic and hazardous waste such as used batteries and ink cartridges must be sealed and
Domestic Waste collected for unified disposal. They must not be mixed or discarded randomly.
| Light Pollution Management
Classify and stack construction waste according to the actual conditions on-site, assign The Company ensures reasonable scheduling of work hours to avoid nighttime construction as much as possible. For necessary nighttime
dedicated personnel to sort and organize the construction waste, and stack it reasonably. construction, strictly follow the regulations of the construction administrative department and relevant authorities. Strictly control the types
and brightness of construction lighting fixtures, reasonably adjust the direction of light irradiation, add lamp covers to tower crane night
lighting to concentrate light on the construction area, and take shielding measures during high-altitude welding to avoid arc light leakage.
Construction sites should establish separate waste storage areas by category.
Under the condition of ensuring sufficient lighting for on-site construction, minimize disturbance to the surrounding residents? lives.
Establish a slurry discharge area at the construction site.
Construction Waste The classification rate of toxic and hazardous waste at construction sites must reach 100%.
Green Construction
Fill out the Construction Waste Disposal Record Form monthly. Based on the targets for
construction waste discharge and utilization rates, determine the control effectiveness and In accordance with the Standards for Environment and Sanitation at Construction Engineering Sites, the Company has formulated the Civilized
recycling rate of construction waste. Construction Management System to systematically improve the level of civilized construction management at construction sites, enhance the
working and living conditions on site, safeguard employees? physical health, and protect the ecological environment. To implement the
technical and economic policies of land-saving, energy-saving, water-saving, material-saving, and environmental protection in construction
Establish dedicated temporary storage sites for hazardous waste, classify and store projects, the Company adopts advanced technical measures and management to maximize resource conservation, improve energy efficiency,
hazardous waste such as waste oil and waste paint, and take measures such as anti-leakage reduce the adverse environmental impact of construction activities, and standardize green construction management. The ?Two Institutes
to prevent environmental pollution from hazardous waste leakage. and One Center(Phase I)? project has formulated multiple management systems such as the Green Construction Management System and
Green Construction Training System. The project establishes a green construction management system with the project manager as the
Arrange for professional units with appropriate qualifications to carry out recycling and primary responsible person, formulates a green construction management responsibility system, regularly conducts self-inspections,
disposal to ensure hazardous waste is treated harmlessly. assessments, and evaluations, and organizes green construction education and training to enhance the green construction awareness of
construction personnel, creating prerequisites for green buildings and high-quality projects.
Hazardous waste Establish a waste management ledger to record information such as the amount, type, and
treatment methods of waste generated, ensuring compliance in waste handling and disposal The Company strictly ensure that construction projects comply with green building standards. The ?Two Institutes and One Center(Phase I)?
at the construction site. project was awarded the first batch of Zhengzhou City?s Green Construction Demonstration Projects in the construction industry in 2025, and
the provincial-level green construction site is currently under application.
Environmental, Social and Governance (ESG) Report
Resource Efficiency Enhancement
Case Study
Energy Management
On April 7, 2025, the Company organized a training session on the application of green construction technology and an
The Company?s main energy consumption comes from purchased electricity, gasoline, etc. The Company strictly complies with relevant laws
exchange meeting on innovative green construction technologies. The meeting primarily covered the application of innovative
and regulations such as the Energy Law of the People’ s Republic of China and the Energy Conservation Law of the People’ s Republic of
green construction technologies such as decorative fair-faced concrete technology, bolt hole sealing technology,
China, and has established systems such as the Energy Saving and Consumption Reduction Management System and the Material
self-adhesive insulation film curing technology, prefabricated component application technology, reactive-bonded polymer
Transportation and Construction Energy Saving and Energy Utilization System to standardize the use of office and production energy
wet-laid waterproof membrane technology (CCB reactive adhesion), LED temporary lighting, and solar-powered mobile
equipment and manage energy consumption in material transportation and construction. Through measures such as introducing
phone charging boxes on construction sites. It emphasized the importance of innovation and actively promoting green
energy-saving equipment, strengthening energy equipment management, optimizing construction processes, and promoting an
construction technologies based on actual project conditions.
energy-saving culture, the Company reduces energy consumption.
Energy-saving and Consumption Reduction Measures
Use Energy-Saving Lamps or Materials
Temporary facilities use energy-saving materials, with walls and roofs made of fireproof and thermally insulated
rock wool color steel plates.
Strengthen Equipment Management and Maintenance
electrical facilities.
Lighting, air conditioning, and sockets in living areas are controlled separately with three circuits, each equipped
with a control box and meter. The control box includes a time switch to reasonably save electricity while meeting
daily usage needs.
Reduce Office Energy Consumption
Case Study
Reduce air conditioning electricity load and minimize air conditioning usage time.
Office equipment such as computers, printers, and copiers should reduce standby power consumption, and
The ?Green Construction Management Team? of the Company?s Two Institutes and One Center Phase I project utilized rainy
power should be turned off promptly.
weather and spare time at migrant worker schools to organize training sessions for all management personnel on the Green
Construction Guidelines, Green Construction Evaluation Standards for Construction Projects, and Main Indicators for the
Acceptance Evaluation of National Green Construction Demonstration Projects in the Construction Industry. They also conducted Reduce Construction Energy Consumption
briefings for all management personnel. When signing labor contracts with subcontractors and material supply contracts with
suppliers, they clearly specified green construction requirements and material performance requirements to ensure source
The procurement of materials for engineering construction primarily follows the proximity principle to shorten
constraints and control. During technical briefings for construction personnel, they also included green construction briefings
transportation time and reduce energy consumption.
to help workers understand the essence of green construction, its importance, and how to apply green construction
technologies in engineering projects. During on-site construction, energy-efficient construction techniques are prioritized to save energy and reduce
consumption while meeting design requirements.
Based on the characteristics of construction techniques, work schedules are rationally arranged to avoid
nighttime construction as much as possible, thereby reducing significant energy consumption.
Environmental, Social and Governance (ESG) Report
| Indicators and Objectives At the same time, for the awarded high-standard farmland projects, water-saving technologies or advanced water-saving equipment are
actively adopted in the project design, and numerous integrated water and fertilizer facilities are constructed to reduce the waste of water
resources caused by the traditional flood irrigation farming model, thereby promoting water conservation and achieving agricultural
The Company has set energy management goals, planning to reduce energy consumption by 30% by 2030 compared to the 2024 baseline.
water-saving goals.
| Indicators and Objectives
Indicator 2025
To further strengthen water resource management, the Company has set water resource management targets, aiming to significantly
improve water use efficiency by 2030, with office area water consumption reduced by 10% compared to 2024.
Total Purchased Electricity 343,955kWh
Total Energy Consumption 42.27tons of standard coal Indicator 2025
Total Water Consumption 129 tons
Statistical Scope: Zhengzhou headquarters office and Guangzhou office. Among these, energy consumption is calculated based on the total
purchased electricity.
Statistical Scope Explanation: Water consumption at the Zhengzhou headquarters office.
Water Resource Utilization
The main source of water resources consumed during daily office operations and construction projects is municipal water supply. The
Material Management
Company strictly adheres to national laws and regulations such as the Water Law of the People’ s Republic of China and related standards,
establishing water-saving management systems and strengthening water usage management. Adhering to the principle of water To enhance material control, the Company has formulated management measures such as the Self-operated Materials Management Measures
conservation, the Company actively implements water-saving measures and water recycling practices in office and construction processes to for the Construction Sector (Trial) and the Quota Material Receipt Management System based on its actual business model. These measures
reduce waste and improve water resource efficiency. clearly define the procurement, storage, usage, maintenance, and disposal of materials for self-operated construction projects and implement
quota-based material receipt for materials used in construction. This strengthens the management of material conservation and resource
utilization, assesses material usage by construction teams, improves the planning and rationality of material use, and strives to reduce
Water-saving Management Measures material waste and maximize material utilization through standardized, full-process control.
Promote the use of new water-saving appliances, install sensor faucets in office areas, and use water-saving fixtures in restrooms;
Advocate for water conservation by placing prominent water-saving signs at water sources;
Separately measure domestic and construction water usage, and control water supply periods in living areas;
| Standardized Material Management
Strengthen the inspection of water-using equipment to eliminate occurrences of ?running, bubbling, dripping, and leaking?. The Company implements corresponding management measures at key stages of material management, optimizing multiple links to
effectively improve overall material use efficiency, reduce waste, and minimize environmental impact.
Water Recycling Measures
Wastewater treated in sedimentation tanks at construction sites can be recycled or used for dust suppression, promoting water
resource reuse.
Reuse of foundation pit dewatering and rainwater, prioritizing this water for car wash machines and sprinklers, and installing water
recycling systems to reuse car wash water after sedimentation.
Environmental, Social and Governance (ESG) Report
Procurement plans are developed based on construction progress, material turnover time, and
Procurement inventory levels, with reasonable quantities determined to reduce inventory and working capital
occupancy, avoiding over-purchasing and preventing backlog or waste. Resource-Saving Measures for Construction Project Materials
Implement classification and labeling management, ensure suitable environmental conditions,
The project is a frame structure, reinforced with square clamps and aluminum square tubes, effectively reducing
Storage maintain accurate inventory records, and conduct regular safety inspections to prevent material material waste compared to traditional methods.
damage and safety incidents.
Using standardized reusable molds, leftover concrete from main structure pouring is repurposed to create secondary
components like wooden bricks and lintels for electrical switch boxes, effectively conserving concrete and minimizing
waste.
Develop detailed transportation plans, adopt appropriate packaging and protective measures, select
Transportation suitable transportation tools, monitor the transportation process, and prepare contingency plans for
Templates with a width of no less than 30 cm are spliced for use, reducing template waste without compromising
emergencies.
construction quality.
Establish a material requisition and approval process, implement a quota-based material receipt
Collection and Use
system, ensure raw materials are collected as needed and used correctly, and avoid waste.
Packaging Material Recycling
| Reduction and Recycling A recyclable materials list is established on-site, collecting and reusing packaging materials such as template
wrappings, food packaging boxes, and office waste paper generated during construction. Non-recyclable packaging
is stored in designated areas to prevent environmental pollution.
Adhering to the circular economy principle of ?reduce, reuse, and recycle,? the Company integrates efficient resource utilization throughout
the production process, reducing resource consumption and waste generation at the source, continuously improving resource utilization, and
supporting green, low-carbon, and high-quality development. During engineering projects, the Company actively promotes material
recycling and conservation measures. For materials such as packaging generated during projects, the Company strictly follows construction
technical regulations to maximize recycling.
Green Office
Reduction and Recycling Practices
The Company integrates green office concepts into daily operations, actively practicing water and electricity conservation, promoting
Material Recycling Measures in Construction Projects paperless workflows, and maintaining clean living and office environments to foster a sustainable, employee-engaged office ecosystem.
Use detachable prefabricated houses for office and living areas;
Use detachable fences and wrought iron fences that can be reused.
Purchasing and using recycled paper, printing on both sides to save paper.
Use standardized protective railings for site roads, edges, and safety passages.
Use standardized protective sheds for power distribution boxes, processing sheds, and tower cranes.
Office Developing online OA and BIP processes to advance paperless operations.
Use steel safety nets for external scaffolding protection.
Management
The project involves large-scale, high-space construction, utilizing a new type of disc-lock scaffolding for high-space
operations, achieving over 70% reuse of scaffolding and other recyclable materials.
Environmental, Social and Governance (ESG) Report
Ecosystem and Biodiversity
Protection Governance
The Company actively responds to the UN Convention on Biological Diversity, engages in ecosystem and biodiversity protection practices,
implements strict ecological impact control measures, and develops and applies ecological restoration technologies to minimize direct and
While pursuing high-quality development, the Company strictly adheres to ecological protection redlines and natural habitat conservation indirect impacts of operations on natural ecosystems and biodiversity. Simultaneously, the Company continuously enhances team expertise
requirements, complies with environmental laws and regulations, actively adopts eco-friendly technologies and processes, and participates in through professional training, raising employee awareness and skills in biodiversity protection.
ecological restoration and species protection to practice green development and build a sustainable harmony between humans and nature.
Strategy
Risk Type Risk Description 1Impact Cycle Potential Financial Impact Response Measures
As market focus on ecological and biodiversity protection grows, failure to adapt to changing Monitor consumer preferences and actively implement
Long term Decrease in operating revenue
preferences may lead to loss of market share. biodiversity protection measures.
MARKET RISK
Opportunity Type Opportunity Description 1Impact Cycle Potential Financial Impact Response Measures
For damaged ecosystems, companies can provide restoration services such as saline-alkali
land treatment and polluted soil remediation. These services not only protect the ecological Medium term Increased operating revenue
Actively develop technologies such as garden plant cultivation and
environment but also enhance corporate reputation and economic benefits.
PRODUCTS AND SERVICES ecological restoration, adhere to the principles of sustainable
development in the planning, design, construction, and operation
processes, implement measures such as green buildings and
ecological restoration, participate in ecological restoration,
pollution prevention, green and low-carbon, and urban ecological
By actively fulfilling biodiversity protection responsibilities, enterprises can establish a good projects to protect the ecological environment.
brand image and corporate citizenship image, which helps enhance market competitiveness Long term Increased operating revenue
and consumer recognition, bringing more business opportunities and partners.
REPUTATION
OPPORTUNITIES
Short-term (within 1 year): The impact on the Company is usually rapid and temporary, with a short duration typically not exceeding 1 year.
Medium-term (1–5 years): The impact on the Company is more sustained, usually exerting significant influence within 1 to 5 years.
Long-term (over 5 years): The impact on the Company is profound and lasting, typically lasting more than 5 years.
Environmental, Social and Governance (ESG) Report
Impact, Risk, and Opportunity Management
Company project construction may affect the local plant environment, disturb micro-ecosystems, and disrupt the original
ecological balance. In river and lake management and rural environmental comprehensive improvement projects, the Company
conducts preliminary surveys of plant and biological resources at the project site and incorporates ecological restoration
technologies into the project planning. By using scientific methods such as the Shannon-Wiener index and Simpson index to
assess and identify ecosystem diversity risks, the Company fully utilizes its developed eco-friendly technologies for ecological
restoration, employing near-natural methods to enrich species resources at the project site for in-situ species conservation,
achieving ecological balance and enhancing ecological stability. | Development and Application of Ecological Restoration Technologies
The Company has developed a series of ecological protection technologies, such as ?Multi-coupling Long-term Low-carbon Water Ecological
Restoration Technology,? ?Sponge City Green Space Water Landscape Comprehensive Ecological Restoration Technology,? and
?Comprehensive Ecological Restoration Technology for Urban and Rural Green Space Landscape Water Bodies,? and successfully applied these
technologies in projects, effectively enriching species diversity, enhancing ecosystem stability, and improving ecological restoration efficiency.
Indicators and Objectives | Protection of Biological Genetic Resources
The Company has established the most comprehensive joint germplasm resource nursery for Magnolia species and cultivars in China. By
Before designing related projects, the Company conducts thorough project research and analysis, integrates ecological restoration
introducing cuttings, seeds, or seedlings, the Company has collected and preserved 135 species (including varieties) of Magnoliaceae from 10
technologies into the planning, and fully utilizes ecological restoration technologies during construction to achieve biodiversity conservation.
genera worldwide and 210 cultivars. It has conducted comprehensive field surveys and ex-situ conservation of several rare Magnolia species in
China, researched their endangered mechanisms and protective utilization measures, and established germplasm resource nurseries to provide
demonstrations for the protective development and utilization of rare plants.
Goals Achievement Status
Currently, the Company?s new varieties and key technologies have been promoted and applied in over 100 greening projects across 15
provinces and cities in China. The projects have established 10 demonstration bases, with new and superior Magnolia varieties covering a
Zero occurrence of biodiversity impact accidents Achieved production and promotion area of 3,450 mu, cumulatively producing over 20 million Magnolia seedlings. The 47 Magnolia varieties granted new
variety protection rights by the National Forestry and Grassland Administration combine the excellent traits of domestic and international
Zero occurrence of ecological safety accidents Achieved Magnolia species, achieving significant breakthroughs in ornamental value and stress resistance.
Achieved | Supporting Ecological Garden Construction
biodiversity impacts
As a member unit of the China Society of Landscape Architecture, a national first-level industry association, the Company has actively
participated in various activities organized by the society for many years. Under the society?s leadership, it has achieved fruitful results in garden
carbon sinks, ancient and famous tree protection, and garden plant cultivation technologies. The Company has actively participated in the
formulation and release of multiple standards by the society, making significant contributions to the ecological construction and development
Ecosystem and Biodiversity Practices of landscape architecture and promoting the advancement of plant diversity conservation.
The Company actively promotes ecosystem and biodiversity conservation, continuously strengthens the development and application of Based on its advanced experience in eco-town construction, the Company has compiled and released the corporate standard Guidelines for the
ecological restoration technologies, and improves ecological governance and restoration efficiency. It solidly advances the development, Evaluation Index System of Eco-Towns, guiding enterprises in eco-town construction from five dimensions: resource conservation,
cultivation, and protection of new plant varieties, effectively enriching species diversity. At the same time, the Company actively participates in environmental friendliness, economic sustainability, social harmony, and cultural heritage. By establishing a scientific, systematic, and operable
the construction of ecological towns, optimizes regional ecological spatial patterns, fulfills its responsibilities in ecological garden construction, evaluation index system for eco-towns, this initiative implements important measures of the national ecological civilization construction
increases green coverage, improves the living environment, and maintains regional ecological balance through multi-dimensional protection strategy, guiding towns to practice the concept that ?lucid waters and lush mountains are invaluable assets? throughout the entire cycle of
and construction measures, promoting harmonious coexistence between humans and nature. planning, construction, and operation.
Image Source:Hainan Qingshui Bay Coastal Tourism Resort Project
PART 03
Value Symbiosis, Industry
Co-progress
Response to Topics?
Innovation-Driven Development, Product and Service
Safety and Quality, Supply Chain Security, Data
Security and Customer Privacy Protection
Palm Eco-Town actively responds to and thoroughly implements the overall development strategy of ?One Body, Two
Wings,? insisting on innovation and R&D as the core driving force to empower industrial optimization and upgrading. The
Company is committed to continuously improving the quality of its products and services, thereby winning the deep trust
of customers and enhancing its core competitive advantages in multiple dimensions and comprehensively. At the same
time, it actively collaborates with a wide range of partners to explore and steadfastly move toward a sustainable future.
Environmental, Social and Governance (ESG) Report
Innovation-driven Development Palm Design Group
Recognized as a National High-Tech Enterprise
The Company adheres to the innovative concept of ?Research for Application, Technology for Empowerment,? focusing on areas such as
landscape plants, ecological restoration, green construction, and modern agriculture. It continuously deepens scientific and technological
research and development to enhance core competitiveness, driving high-quality development through innovation.
| R&D Team Building
The Company continuously focuses on the construction of a scientific and technological innovation talent system, further leveraging the
technical leadership of professionals by strengthening the introduction of high-end talents. By the end of the Reporting Period, the Company?s
R&D Governance System R&D team had grown to 96 people, accounting for 11.85% of the total workforce.
To further standardize and strengthen the Company?s R&D project management and improve the quality of R&D project
implementation, the Company has established management systems such as the R&D Project Management Measures, constructing a
comprehensive R&D management system covering the entire process from project application and initiation to organization,
implementation, and final acceptance. The Company?s Ecological Technology Research Institute is responsible for the overall
management of R&D projects, including patents and trade secrets, ensuring the normal operation of the Company?s scientific 21.88%
research and intellectual property work and the achievement of development goals. 42.71%
| R&D Platform Construction By Educational By Gender
Background
As of now, the Company has established 14 national, provincial, and municipal R&D platforms, including the National Flower Engineering
Technology Research Center Palm R&D and Promotion Center, the Henan Provincial Ecological Landscape Engineering Technology Research
Center, and the Guangdong Provincial Ecological Landscape Engineering Technology Research and Development Center. Relying on these
platforms, the Company continues to invest in R&D innovation, constantly introducing new products and technologies. Below bachelor?s degree 19 Persons Male 55 Persons
Bachelor?s degree 55 Persons Female 41 Persons
Master?s degree 21 Persons
R&D Platforms and Qualification Certifications
Doctorate 1 Person
Palm Eco-Town
| Innovation Incentives
platforms;
To encourage independent innovation, stimulate the enthusiasm and initiative of all employees in technological innovation, and enhance the
Company?s core competitiveness, the Company has formulated the Management Measures for the Transformation of Scientific and
Technological Achievements and the Reward Measures for Scientific and Technological Innovation, establishing multiple rewards covering
Recognized as a National High-Tech Enterprise, Zhengzhou Sci-Tech Enterprise, and Zhengzhou High-Tech, High-Growth, government research projects, innovation subsidies, and R&D achievements, with incentives covering all employees. In 2025, the Company
High-Value-Added Enterprise further optimized the scientific and technological innovation incentive mechanism, promoted the online construction of the incentive process,
and effectively enhanced employees? innovation vitality and motivation.
Environmental, Social and Governance (ESG) Report
Strategy
The Company closely tracks changes in the internal and external environment, such as market dynamics and technological evolution,
systematically identifies potential risks and opportunities in the field of innovation and R&D, and formulates targeted response strategies to
continuously consolidate and enhance the Company?s core competitiveness.
Risk Type Risk Description 1Impact Cycle Potential Financial Impact Response Measures
Monitor and promptly grasp market trends, and conduct product R&D
The competitive market environment and demand are constantly changing. If new products based on business needs; establish and improve an innovation and R&D
Medium to long term Decrease in operating income
or technologies fail to meet market expectations, it may lead to a decline in market share. mechanism, continuously increase R&D investment, and enhance the
MARKET RISK Company?s R&D capabilities.
Actively recruit new talent, accelerate the construction of R&D platforms,
The Company?s main business R&D involves cross-disciplinary fields, making breakthroughs strengthen industry-university-research collaboration, promote
Medium to long term Increase in R&D costs
in core technologies difficult, and the R&D cycle may exceed expectations. breakthroughs in key technologies, and achieve the transformation of
TECHNICAL RISK achievements.
Opportunity Type Opportunity Description 1Impact Cycle Potential Financial Impact Response Measures
Policies such as new urbanization, rural revitalization, and ecological restoration have
Actively identify policy changes and align project R&D with policies;
generated a large number of project demands, such as smart agriculture transformation and Increase in operating income,
Long term continue to advance the development of ecological restoration
urban green space construction. With policy support, the Company?s innovation capabilities decrease in R&D costs
technologies and the layout of modern agricultural technologies.
and reputation are enhanced, bringing substantial profit returns.
POLICY OPPORTUNITY
Promote the Company?s industrial upgrading and transformation by introducing digital, Increase in operating income, Actively apply informatization and digital technologies, deepen smart
Long term
intelligent, and green technologies. decrease in operational costs empowerment, and accelerate the digital construction process.
OPPORTUNITIES FOR
INDUSTRIAL UPGRADING
AND TRANSFORMATION
Management of Impacts, Risks, and Opportunities
Impact cycle:
Before initiating a research and development project, the relevant project leader in the Company conducts both online and offline research to
Short-term (within 1 year): The impact on the Company is usually rapid and temporary, with a short duration typically not exceeding 1 year.
understand industry trends and the Company?s actual needs. The project is then planned based on the Company?s strategic goals. Upon
completion of the project proposal, the Ecological Technology Research Institute organizes expert reviews. The research direction is optimized
Medium-term (1–5 years): The impact on the Company is more sustained, usually having significant influence within 1 to 5 years.
based on the review feedback to mitigate early-stage risks. During the R&D phase, the project leader implements dynamic management,
Long-term (over 5 years): The impact on the Company is profound and lasting, typically lasting more than 5 years. prepares annual summary reports to track progress, and controls risks throughout the R&D process.
Environmental, Social and Governance (ESG) Report
Indicators and Objectives
In terms of innovation and R&D, the Company primarily selects metrics such as the number of achievements, patent conversion efficiency, R&D Achievements
industry-academia collaboration, and government projects as key considerations, and formulates clear target plans accordingly.
The Company is committed to developing new plant varieties, ecological restoration technologies, and green dual-carbon
technologies, while actively advancing modern agricultural technology R&D. In recent years, it has achieved a series of R&D
results in the integration of construction engineering and green ecology. Additionally, the Company?s R&D direction
Objective Achievement Status in 2025 extends to agriculture and municipal facilities, covering garden tools, fertilizer crushing equipment, farmland pump station
components, and plant cultivation processes, forming a diversified technological layout.
Patent implementation conversion efficiency to reach over 95% 100%
Expand and maintain industry-academia collaborations with 2 partners 3
Apply for 4 government projects 4
Key Performance
Cultivate a total of 2 new plant varieties Approved 4 provincial construction methods
Palm Eco-Town
Case Study: Breeding and Promotion Project of High-Quality
Japonica Rice Along the Yellow River
R&D investment RMB 100,000,000 Cumulative number of authorized patents Items
Cumulative number of authorized invention patents 25 Items Cumulative number of authorized utility model patents 2 Items
The Company collaborated with Henan Agricultural University on the Breeding and Promotion Project of High-Quality
Japonica Rice Along the Yellow River, establishing a cooperative model of ?research institutes + listed companies +
platform companies + village collectives? to create a closed-loop, full-industry chain encompassing ?seeds - planting -
storage - processing - packaging - logistics - sales,? achieving end-to-end management of ?investment, financing,
Cumulative number of authorized utility model patents Items Cumulative number of published papers Items
construction, operation, and management.? As of the end of the Reporting Period, the project had applied for 3 invention
patents, developed 1 new rice variety, published 2 papers, and provided technical services and guidance at least 3 times.
It effectively fills the gap in the Company?s rice R&D field, lays out core technology research for future agricultural
Cumulative number of software copyrights Items Cumulative number of trademarks Items development, enhances the Company?s technical accumulation in agriculture, strengthens its influence in the agricultural
sector, and lays a solid foundation for the Company?s transformation.
Environmental, Social and Governance (ESG) Report
Case Study
Science and Technology Achievement Awards
Through industry-academia-research collaboration, a series of products such as soil conditioners and multifunctional microbial
agents have been developed. Pilot test results show significant effects on soil improvement and fertility enhancement.
Research on Superior Camellia Germplasm Screening and Evaluation of High Carbon
High-quality rice varieties from Henan Agricultural University were introduced, and a demonstration project integrating primary,
Innovation and Industrial Utilization Sequestration Tree Species for Landscaping in Henan
secondary, and tertiary industries of rice was established in Fan County, with the first batch of planting covering thousands of
Architecture Science and Technology Architecture Science and Technology Progress
Progress Award First Prize Award in 2025
Transformation of Scientific and Technological Achievements
Case Study
The independently cultivated new varieties of camellias and magnolias have been promoted and planted on a cumulative area
of several thousand acres, increasing farmers? income. Some varieties have been licensed for promotion to Europe, receiving high
recognition from the International Camellia Society and distributors.
Industry Co-construction
Linglong Multi-Season
Magnolia Series Magnolia Series As a leader in industry ecosystem co-construction, the Company has established a tripartite linkage mechanism of ?peer exchange -
Small shrub, Shrub, flowering industry-academia-research collaboration - standard setting,? continuously participating in academic exchange conferences, deepening
dwarf and in two or three technical cooperation with universities, and leading the formulation of multiple industry standards to provide momentum for sustainable
compact habit, seasons industry development.
dense flowers,
fragrant
| Industry Exchange
Zhuangli Lingshuang To date, the Company has joined 11 industry organizations, sharing cutting-edge technologies, innovative ideas, and practical achievements
Magnolia Series Magnolia Series with the industry through annual conferences and seminars, jointly analyzing industry trends and challenges, promoting efficient information
Tree or large tree, Shrub or tree, exchange and deep integration of ideas, and contributing to overall industry technological progress and business expansion.
fast-growing, evergreen,
large and showy cold-tolerant,
flowers, highly dense flowers,
double frangrant
The 15th Annual Conference of the Chinese Society of
Landscape Architecture was successfully held in
Kunming, Yunnan Province. The Company was invited
to attend and deliver a keynote speech, sharing its
years of continuous investment in the R&D of new
plant varieties and the resulting industrialization
achievements.
Hongtian Xiangyun (Variety Rights No.: 20190322) Zonglin Xianzi (Variety Rights No.: 20190032) Huangtiaoji (Variety Rights No.: 20170040) Caihuang(Variety Rights No.: 20170039)
Environmental, Social and Governance (ESG) Report
| Standard Certification
In 2025, the Company actively organized internal experts to deeply study industry development trends and technological needs, closely
The Henan Provincial Symposium on High-Quality Japonica Rice collaborating with authoritative institutions and enterprises. Throughout the year, it led or participated in the formulation of 1 national
Along the Yellow River, jointly organized by the Company, Henan standard, 1 group standard, and 4 enterprise standards, covering various professional fields such as smart landscaping, greenhouse
Agricultural University, and the Agriculture and Rural Affairs construction, urban greening, and ecological evaluation. By transforming the Company?s innovative practices into technical rules followed by
Bureau of Fan County, Puyang City, was held in Chenzhuang the industry, it not only gained a development advantage but also strongly promoted the standardized development of green building and
Town, Fan County. Experts and scholars engaged in in-depth ecological engineering.
discussions on topics such as japonica rice variety breeding,
| Promoting New Quality Productivity
scientific cultivation, model innovation, and brand building.
The Company deeply empowers the development of new quality productivity through technological innovation. The Company has established
a systematic new camellia hybrid breeding technology, an industrial key technology system, and a new model for commercial development of
| Industry-Academia-Research Collaboration new varieties, promoting the development of camellia breeding in China and the upgrading and transformation of the camellia industry, as well
as the transformation of scientific and technological achievements in new varieties and technologies. The Company has successfully cultivated
new camellia varieties with multi-season flowering and high resistance, These varieties have driven farmers to plant over tens of thousands of
The Company highly values collaboration with universities and research institutions, building an integrated ?industry-academia-research-appli-
mu of camellias, boosted the output value of upstream and downstream industries by approximately 600 million yuan, and break the
cation? platform to accelerate the transformation of scientific research into productivity and provide a ?technology engine? for industrial
long-standing lag in camellia breeding in China compared to foreign countries. Through the establishment of an industrial chain for licensed
development.
production and distribution and technology transfer, it has provided technical support for increasing farmers? income, industrial transformation,
and quality improvement, enhancing the industry?s awareness and respect for new plant variety rights, and guiding and accelerating the
Case Study industrialization process of new agricultural and horticultural plant varieties in China.
On April 22, the Company signed a strategic cooperation agreement with the People?s Government of Fan County, Puyang City,
Intellectual Property Protection
and Henan Agricultural University. Through this agreement, the Company will comprehensively support the high-quality
economic and social development of Fan County in seven major areas, including rural revitalization and new urbanization
The Company places great emphasis on intellectual property protection, strictly complies with relevant laws and regulations such as the Patent
construction. Henan Agricultural University will focus on its rice research team to strengthen the application of new varieties and
Law of the People’s Republic of China, the Copyright Law of the People’s Republic of China, and the Trademark Law of the People’s Republic of
technologies in Fan County, extend the rice industry chain, and provide solid technical support for Fan County to become an
China. It has formulated the Intellectual Property Management Measures, clarifying the management structure and responsibilities, application
agricultural powerhouse. The collaboration between the Company and Henan Agricultural University will build an integrated
and maintenance, incentive measures, and other matters related to intellectual property, aiming to protect the Company?s intellectual property
?industry-academia-research-application? platform, accelerating the transformation of scientific research into productivity and
from infringement while avoiding infringement of others? intellectual property, thereby strengthening the Company?s intellectual property
providing a ?technology engine? for the development of the rice industry in Fan County.
management. The Company?s Ecological Technology Research Institute is responsible for intellectual property management and assigns
dedicated personnel to manage and coordinate the application, maintenance, incentives, implementation, licensing, transfer, and risk
management of intellectual property.
The Company?s R&D personnel regularly search for patent applications in related fields
of the same industry on the official website of the National Intellectual Property
Administration to prevent intellectual property infringement incidents.
Inviting intermediaries to summarize and analyze the Company?s intellectual property
applications, providing overall control over the Company?s intellectual property
applications.
Intellectual Property
Protection Measures Inviting intellectual property agencies for in-depth exchanges to consult on key technical
aspects of intellectual property applications, effectively enhancing the knowledge level
of intellectual property management personnel, project technicians, and R&D personnel.
Environmental, Social and Governance (ESG) Report
Product and Service Safety and As of the end of the Reporting Period, the Company has obtained ISO 9001 Quality
Quality
Management System certification. During the Reporting Period, the Company did
not experience any major safety or quality liability incidents related to products or
services.
The Company always adheres to the principle of using craftsmanship to cultivate quality, responsibility to build the brand, and service to win
trust. The Company continuously improves product quality, strictly ensures engineering quality and safety, and deepens service quality to
provide customers with excellent and attentive projects and services, establishing a good corporate image and winning long-term trust and
Honorary Recognition
support from customers.
Fuzhou City Light Project received a Grade A delivery rating from Vanke
Quality Management System
The Company strictly complies with laws and regulations such as the Product Quality Law of the People’s Republic of China, implements the ISO The Company was awarded the ?Central and Western Region Residential
comprehensive, smooth, and clearly defined quality management system.
Management System Certification
The Company has formulated a series of systems, including the Quality Responsibility System, Construction Project Management Measures
(Trial), and Engineering Quality Standards Manual, clarifying the responsibilities and authorities of various departments and positions in quality
| Quality Culture Development
management, achieving standardized control throughout the entire lifecycle from project initiation to completion acceptance. In addition, the
Company has established quality acceptance and assessment standards based on the Construction Quality Supervision, Inspection, and
Assessment Measures, strengthening process supervision and result assessment. The Company?s legal representative, as the primary person
responsible for quality management, bears the main leadership responsibility for engineering quality. The quality management department is The Company formulated the Quality Education and Training Method to standardize quality training management, specifying that each safety
specifically responsible for the supervision and management of engineering quality, including system formulation, process standard revision, and technology department must develop a quality training plan, align training content with seasonal work priorities, and collaborate with
technical document review, and participation in accident investigation and handling. relevant departments for implementation. During the Reporting Period, the Company conducted specialized training for project management,
construction, and technical operation personnel, focusing on high-standard farmland construction. For internal teams, systematic training was
organized on construction standards, smart facility operation and maintenance, and quality control, aiming to enhance employees? professional
Based on its organizational structure and business development direction, the Company has established a three-tier management mechanism
practical skills and ensure project quality and efficiency.
to systematically promote the standardized operation of products and services across various business areas.
Product and Service Management Structure
Case Study
As the entity for ?group-based control, sector-based operation, and professional development,? the
Company adopts the ?Strategic Decision-Making + Intensive Control of Key Resources? model,
HEADQUARTERS responsible for strategic decision-making and the intensive control of key resources such as human,
financial, and material resources, ensuring the macro-level direction and resource allocation for the
Company?s products and services.
Following the ?Professional Operation? approach, the Company undertakes professional tasks and
PROFESSIONAL manages the production, operation, and specific business activities of its subsidiaries, helping to
SUBSIDIARY enhance the professionalism and refinement of products and services.
As a regional management center, it independently carries out production and operation
management activities within its authorized scope, flexibly adjusting products and services according
REGIONAL COMPANY to the market characteristics and customer needs of different regions, thereby improving market
responsiveness.
Environmental, Social and Governance (ESG) Report
| Customer Satisfaction
| Quality Management Objectives The Company regards customer satisfaction as a key metric for service quality, continuously employing scientific survey methods and rigorous
statistical analysis tools to dynamically monitor changes in customer satisfaction. During the Reporting Period, the Company conducted
The Company?s overarching quality management goal is ?zero major quality or safety incidents,? with multiple specific control indicators set monthly customer satisfaction surveys from April to December, with a cumulative participation of 202 projects and an average score of 98.39
and regularly monitored to ensure proactive quality management and continuous improvement in quality management effectiveness. points.
Responsible Supply Chain
Indicator Unit Achievement Status in 2025
The Company?s procurement scope includes construction projects, important equipment, materials, as well as services such as survey, design,
Product Qualification Rate Percent 100 and operation. The Company strictly adheres to relevant laws and regulations such as the Bidding and Tendering Law of the People’s Republic
of China and implements full lifecycle management for supplier qualification, review, selection, and exit processes, promoting upstream and
downstream enterprises to jointly fulfill social and environmental responsibilities and building an open, fair, and transparent supply chain
Customer Satisfaction Points 98.39
ecosystem.
Number of Customer Complaints Times 0 Governance
The Company has established the Subcontractor Management Measures and the Construction Sector Project Bidding and Procurement
Management Measures (Trial), adhering to the management principles of ?compliant qualification, dynamic management, fairness and
impartiality, hierarchical responsibility, and incentivizing quality? to standardize the management processes of subcontractors and project
Customer Rights Protection procurement. A subcontractor management framework led by the Safety and Technology Department has been established to coordinate
subcontractor evaluation, qualification, and selection processes. Project departments are responsible for participating in the evaluation and
The Company consistently prioritizes customer satisfaction as its core business objective, establishing a full-cycle customer service system. It qualification of subcontractors for their respective projects. Each department has clear responsibilities, collaborates effectively, and implements
actively expands channels through online platforms, offline follow-ups, surveys, and other methods to gather customer feedback and relevant requirements at all levels, actively promoting high-quality development of the supply chain in terms of safety, stability, and
suggestions, striving to maintain strong customer relationships and improve service quality and standards. sustainability.
During the Reporting Period, the Company organized supply chain management training for relevant business personnel from various project
| Customer Complaint Management departments, led by the headquarters? Safety and Technology Department.
Adhering to the principles of ?objectivity, fairness, and timely resolution,? the Company has established regulations such as the Measures for
the Administration of Engineering Project Complaints to standardize complaint handling procedures and ensure effective complaint resolution, Case Study: Special Training on the Subcontractor
with clear guidelines on responsibilities, complaint verification, and handling. The Company?s Safety and Technology Department oversees Management Measures
customer complaint management, with other relevant departments providing support and following up on the handling in collaboration based
on bussiness needs. During the Reporting Period, the Company received no customer complaints.
The training focused on four core areas: general provisions, division of
management responsibilities, full-process subcontractor management,
and key forms and documentation requirements. Through the training,
participants comprehensively grasped the standard processes and
practical requirements of subcontractor management, further
Customer Complaint Mechanism standardized procurement and supply chain-related operational
behaviors, enhanced professional capabilities in subcontractor
management, and laid the foundation for standardized subcontractor
management and improved project performance.
Complaint Complaint Communication with Reporting for Solution Follow-up
information verification complainant to approval implementation and feedback
collection develop a solution
Environmental, Social and Governance (ESG) Report
Strategy
Risk Type Risk Description 1Impact Cycle Potential Financial Impact Response Measures
Integrate supplier chain resources to enhance bargaining power and
reduce procurement costs;
Changes in market demand and other factors led to rising raw material prices, resulting in Rising procurement costs and
Short-term Monitor market trends in raw material prices and adjust procurement
increased procurement costs. declining sales revenue
orders promptly according to production plans to reduce material waste at
MARKET RISK
the source.
Strengthen the reserve management of key raw material suppliers;
Key suppliers may fail to deliver normally due to natural disasters or insufficient production Through hierarchical management and preferential policies, encourage
Rising procurement costs and
capacity, affecting project progress and potentially leading to delays or additional Short-term subcontractors to improve performance and service quality, and establish
declining sales revenue
SUPPLY CHAIN procurement costs. long-term partnerships with high-quality suppliers to enhance supply
DISRUPTION chain stability.
Strictly standardize supplier qualification and selection management
processes to strengthen quality control;
Insufficient quality control by suppliers may lead to product quality issues, affecting the
Short to Rising procurement costs and Regularly review and monitor suppliers? quality standards to ensure
construction progress or quality of the Company?s projects, damaging the Company?s
Medium-term declining sales revenue products meet specified requirements;
reputation and customer satisfaction, and even triggering legal liabilities.
QUALITY RISK Establish an inspection team to strictly verify material quantities and
conduct quality sampling to ensure material quality and safety.
Opportunity Type Opportunity Description 1Impact Cycle Potential Financial Impact
Impact cycle?
Through advanced technologies such as IoT and big data analysis, achieve intelligent supply Short-term (within 1 year): The impact on the Company is
chain management, strengthen the digital infrastructure, optimize business processes, Long term Reduce Operational Costs usually rapid and temporary, with a short duration typically
DIGITAL improve approval efficiency, and enhance supply chain management efficiency. not exceeding 1 year.
TRANSFORMATION OF Medium-term (1–5 years): The impact on the Company is
SUPPLY CHAIN
more sustained, usually having significant influence within 1
to 5 years.
The Company prioritizes suppliers with green certifications, promotes the use of renewable Long-term (over 5 years): The impact on the Company is
materials and the recycling of construction waste, reduces the carbon footprint of the profound and lasting, typically lasting more than 5 years.
Long term Increase in Operating Revenue
supply chain, enhances the Company?s reputation, and attracts environmentally conscious
GREEN SUPPLIER
customers.
DEVELOPMENT
Environmental, Social and Governance (ESG) Report
Full Lifecycle Management of Suppliers
Management of Impacts, Risks, and Opportunities
The Company?s supply chain security risk management is carried out across the entire process of identification, assessment,
monitoring, and management. Through comprehensive business process review and departmental collaboration, supply chain The sub-supplier?s performance capability, management capability, and past
security risks are identified, including those related to qualification compliance, performance capability, cooperation integrity, performance are assessed. After the review is completed, the "Sub-Supplier Maintenance
Access
financial credit, and management operations. Risk assessment ranks risks by impact level and probability of occurrence, designating Application Process" is initiated. Upon approval, the sub-supplier is entered into the
those with potential for significant economic/reputational loss and high probability as key control items. Monitoring relies on a sub-supplier database and classified as Grade C (Qualified).
dynamic sub-supplier management system to update qualification, credit, and performance data in real time, with various
departments jointly reporting any compliance violations. The company headquarters coordinates the review of risk anomalies,
implements tiered control, and develops targeted countermeasures for key risks. Supporting systems such as compliance access,
blacklist determination, process standardization, and accountability for dereliction of duty are integrated, alongside tiered selection
and incentive mechanisms for sub-suppliers, forming a closed-loop risk management system. At the same time, the SAP system and An annual selection of Excellent/Good sub-suppliers is conducted. Nominations are
various audit forms are used to ensure traceability and control throughout the entire risk management process. By implementing made based on annual performance, and the selection panel holds the "Excellent/Good
Selection
tiered incentives and priority cooperation for Grade A/B sub-suppliers, standardizing processes and forms via the SAP system, and Sub-Supplier Selection Meeting" to determine the results. After the selection, the
including value-added services as criteria for Grade A evaluation, the company seizes opportunities to improve quality and efficiency information of Excellent/Good sub-suppliers is updated and announced on OA.
in supply chain management, thereby supporting project performance and stable development.
If a sub-supplier commits a major violation during the year, it may be directly
downgraded to Grade D (Blacklist), with a restricted cooperation period of no less than
two years. During this period, the sub-supplier is not permitted to participate in project
Indicators and Objectives bidding or cooperation with the company or its branches. After the period expires, the
sub-supplier shall re-apply for database entry in accordance with the standard
Exit procedures.
Indicator Unit Completion Status by 2025 In cases such as being classified as Grade D (Blacklist), failing to update or having
qualification certificates revoked upon expiration, or voluntarily applying for removal
from the database, the "Sub-Supplier Removal Application Process" is initiated by the
Total Number of Suppliers Suppliers 2,682
company headquarters' Safety and Technology Department to complete the removal.
Number of Local Suppliers Suppliers 886
Supplier ESG Management
Number of New Suppliers Signing Integrity Agreements Suppliers 14
| Green Procurement
Supplier Integrity Agreement Signing Rate Percent 100
The Company encourages cooperative suppliers to establish and operate environmental management systems such as ISO 14001, requiring no
major environmental administrative penalties or environmental accident records within the past three years. It also encourages suppliers to
Number of Suppliers Suspended Due to Non-Compliance Suppliers 319 conduct clean production audits and carbon verification as per industry requirements, ensuring their operations comply with national and local
environmental regulations. The Company is gradually building a green supply chain management mechanism, incorporating environmental
compliance into supplier access, daily management, and grading evaluations, and exploring the development of green procurement guidelines
Number of Potential Suppliers Rejected Due to Non-Compliance Suppliers 0
and industry-appropriate environmental standards.
During the Reporting Period, the Company prioritized suppliers with green production capabilities in procurement, promoted the selection of
Note: Local suppliers refer to those in Henan Province. energy-saving, low-carbon, and environmentally friendly materials and equipment, guided cooperative suppliers to strengthen environmental
controls in production, and gradually advanced green and low-carbon operations across supply chain segments based on project realities.
Environmental, Social and Governance (ESG) Report
| Sunshine Procurement
The Company has developed the Measures for the Administration of Project Procurement (Trial) in accordance with laws and regulations such as Data Security Management
the Tendering and Bidding Law of the People’s Republic of China and the Measures for the Supervision and Administration of Transparent
Procurement for Provincial Enterprises. Centered around this system, the company has established a compliant and transparent procurement
The Company has established institutional norms such as the Measures for the Management of Information System Changes, the Measures for
framework. It defines clear operating procedures for tendering and procurement, strictly adheres to seven management principles including
the Management of IT Assets, and the Measures for the Use of Computers and Basic Office Systems, which define the data security management
transparency, fairness, and integrity, and sets forth six prohibitive clauses. A management structure consisting of a Procurement Leadership
responsibilities of various departments and positions, standardize the full-process management standards for data collection, storage, use,
Team and a Bid Evaluation Team has been established, with the Discipline Inspection and Supervision Department clearly assigned the
transmission, and destruction, and build a data security management framework characterized by ?participation of all personnel, clear
responsibility for full-process oversight. This ensures that procurement decisions are made transparently, operations are standardized,
responsibilities at each level, and full-process control.? These provide solid institutional support and operational guidance for all data
supervision is in place, and accountability is well-founded throughout the entire process. In addition, the Company signs integrity agreements
security-related initiatives. At the same time, the Company has incorporated data security into the IT key KPI assessment system, strengthened
with suppliers, clarifying the ethical standards to be observed by both parties in business activities. A self-supervision mechanism is established
the implementation of data security responsibilities, and adopted a one-vote veto system for data security incidents, ensuring that data security
to foster a law-abiding, honest, efficient, and clean working environment, ensuring that the cooperation process remains legal, fair, and
management requirements are strictly implemented at every stage.
transparent.
Data Security Protection Measures
Case Study: Strengthening Integrity Defenses to
Safeguard Sunshine Procurement
Both data and interface transmission in application systems are encrypted. Privacy information of customers and
System Encryption
employees is prohibited from external disclosure. Access rights for internal queries are strictly controlled, and
and Access Control
To further enhance the supervisory effectiveness of tendering inquiries into private information are limited to employees authorized by leadership.
and procurement, achieve full coverage of supervision over
tendering and procurement activities, and comprehensively
improve the Company?s overall tendering and procurement All systems, from operating systems to data layers, strictly implement daily incremental backups and weekly full
management level, the Company established the ?Tendering backups, with monthly data recovery drills to ensure data integrity and recoverability;
and Procurement Supervision Pool? on November 28 and Data Backup and
conducted a specialized training session, which focused on System Protection
studying the project procurement-related systems, All business systems are deployed with system tools such as firewalls, antivirus software, bastion hosts, and
supervisory responsibilities, and processes. vulnerability scanners, forming a comprehensive protective barrier against data attacks.
Information Security Restore production system data to the test system on a monthly basis, organize internal emergency drills
Equal Treatment of Small and Medium-Sized Enterprises Emergency Drill monthly, and continuously improve the emergency response capabilities and coordination level of all employees.
According to feedback from suppliers, the total amount of outstanding payments owed by the Company to small and medium-sized enterprises
Conduct information security education publicity on the OA internal portal weekly, and provide regular
(SMEs) for 2025 is approximately 2.41 million yuan, involving four SMEs.The Company is currently actively promoting communication and
Information Security
information system operation security training for all employees. During the Reporting Period, the Company
negotiation with relevant parties to complete the settlement and payment of the relevant amounts as soon as possible.
Education
conducted 8 training sessions with over 1,600 participants.
Data Security and Customer Customer Privacy Protection
Privacy Protection The Company attaches great importance to the protection of customer information and privacy rights. During the system construction process,
it adheres to the principle of security first, embedding security considerations from the business requirement analysis stage. Through joint
assessments by business departments, internal control departments, and IT departments, technical measures such as data storage encryption
The Company strictly complies with laws such as the Cybersecurity Law of the People’s Republic of China, Data Security Law of the People’s
and output desensitization are adopted to implement comprehensive control over customer information data, ensuring the security of data at
Republic of China, and Personal Information Protection Law of the People’s Republic of China, actively promoting standardized information
all stages and effectively safeguarding the legitimate rights and interests of customers.
system construction and fully implementing data security and personal information protection responsibilities. During the Reporting Period, the
Company experienced no data security or customer privacy breaches.
PART 04
Talent Cultivation, United
Advancement
Response to Topics?
Employee Rights Protection, Employee Training and
Development, Occupational Health and Safety
Palm Eco-Town consistently adheres to a ?people-oriented? philosophy by effectively safeguarding employees?
legitimate rights and interests, emphasizing employee training and career development, and fostering an equal,
inclusive, and harmonious work atmosphere. The Company has established a competitive compensation and benefits
system along with a robust incentive mechanism, strengthened employee care and occupational health and safety,
and is fully committed to achieving mutual growth and shared success between the Company and its employees.
Environmental, Social and Governance (ESG) Report
Employee Rights Protection
The Company strictly complies with the Labor Law of the People’s Republic of China, the Labor Contract Law of the People’s Republic of China, 9.01%
and other relevant laws and regulations. It has established a standardized human resources management mechanism, continuously improved
the human resources management system, and enhanced organizational operational efficiency. In 2025, the Party-Mass Human Resources 95.31%
Department, in alignment with the Company?s actual operational management, comprehensively reviewed and revised human
resources-related policies. A series of management documents, including the Personnel Management System, were reviewed and released
according to procedures, thereby establishing a complete human resources policy framework. Through the strict implementation of these 66.30%
policies, the Company effectively safeguards employees? legitimate rights and interests and builds harmonious and stable labor relations.
By Region By Educational
Background
Talent Attraction and Recruitment
The Company consistently adheres to the principles of ?fairness, openness, and justice? and continuously promoted its talent acquisition
programs. During the Reporting Period, the Company revised the Recruitment Management System to further standardize the recruitment and
hiring process, insisting on job matching and comprehensive capabilities as core selection criteria to ensure compliance and fairness in
Mainland China 772 Persons Doctorate 1 Person Master?s Degree 73 Persons
recruitment and to eliminate discrimination.
Foreign countries 16 Persons Bachelor?s Degree 537 Persons Associate?s Degree 187 Persons
The Company adopts diversified social recruitment channels, including but not limited to online recruitment through websites such as 51job and
Hong Kong, Macao, and Taiwan regions 22 Persons High School and Below 12 Persons
Zhaopin, introduction of outstanding talents through internal and external recommendations, and targeted excavation of outstanding and
special professional talents through headhunting services. We conduct social recruitment in an all-round way and accurately introduce
outstanding talents that meet the development needs of the Company.
As of the end of the Reporting Period, the total number of employees of the Company was 810, and 65 new employees were recruited 0.62% 14.57%
externally in 2025.
By Position By Profession
By Gender By Age
Senior Management 5 Persons Production 367 Persons Technology 218 Persons
Middle Management 118 Persons
Sales 62 Persons Finance 77 Persons
Other Employees 687 Persons
Under 30 years old (excluding 30 years old) 132 Persons Administration 86 Persons
Female 322 Persons
Male 488 Persons
Environmental, Social and Governance (ESG) Report
Diversity, Equity, and Inclusion | Performance Management
The Company consistently adheres to legal and compliant employment practices, strictly prohibits any form of child labor or forced labor, The Company formulates the Performance Management Measures, establishing a clear performance evaluation and feedback mechanism. By
rigorously implements the principle of equal employment, protects employees from discrimination based on factors such as race, religion, and combining regular performance communication with the application of results and improvement initiatives, it fully stimulates employee
gender, ensures employees enjoy equal opportunities in all aspects including recruitment, compensation, training, and promotion, and is potential and work enthusiasm, promotes the joint enhancement of individual and organizational performance, and provides strong support for
committed to building a diverse, equal, and inclusive workplace environment. the Company?s high-quality development. The Company conducts performance evaluations on a quarterly/annual cycle. Organizational
performance for each unit is evaluated on an annual cycle. Individual performance for non-managerial staff is evaluated on a quarterly cycle.
Based on the evaluation results, differentiated plans are formulated for the calculation and distribution of performance-based pay.
During the Reporting Period, the Company had a total of 17 employees from ethnic minorities and 7 employees with disabilities. No incidents
of child labor or forced labor occurred.
At the same time, the Company has established smooth performance feedback and appeal mechanisms. If an employee disagrees with the
assessment result and cannot reach an agreement after communicating and consulting with the assessor, they may submit a written appeal to
| Protection of Female Employees? Rights and Interests the human resources department of their unit in the form of a departmental document within 3 working days after the assessment concludes.
After investigation by human resources, the direct superior of the assessor will review the assessment materials. If unreasonable circumstances
The Company strictly complies with national laws and regulations concerning the protection of female employees, safeguards the legitimate are indeed found, a re-assessment should be required. If the human resources department cannot coordinate, the matter will be reported to
rights and interests of female employees during pregnancy, childbirth, and breastfeeding periods, ensures female employees legally enjoy the performance management group, which will assign a specialist to investigate and make a final ruling according to the prescribed
maternity check-up leave, maternity leave, and breastfeeding leave, treats these periods as normal work, and pays full wages. The Company procedures.
provides thoughtful care and exclusive benefits for female employees, actively fosters a respectful, caring, and equal workplace atmosphere,
and effectively protects female employees? physical and mental health as well as their legitimate rights and interests.
| Employee Benefits System
Compensation and Benefits The Company has built a diversified benefits system, providing employees with good benefits and life security, attaching great importance to
their physical and mental health, and comprehensively enhancing their sense of belonging, identification, and cohesion.
| Compensation Management
The Company strictly complies with national and local relevant laws and regulations. Based on market principles, industry characteristics, and
its own operational conditions, it formulates the Compensation Management System, establishing a comprehensive, unified, standardized,
Pay the five social insurances and one housing fund for employees;
scientific, and reasonable compensation system covering all employees. It implements a dynamic distribution mechanism where pay is
determined by position, changes with position, and rewards are based on performance, ensuring employee compensation matches job value,
Employee Benefits and Security
individual performance, and market levels. The Company?s employee compensation structure includes components such as fixed pay, variable Employees are entitled to rest days, statutory holidays, paid leave and other rights stipulated by the state;
pay, and benefits. Among these, variable pay is linked to company performance and individual employee performance.
Set up incentive allowances,including professional title and technical grade allowances;
Employees are entitled to communication subsidies and meal subsidies;
Provide holiday benefits and organizing various recreational activities;
Arrange annual physical examinations for employees to safeguard their physical and mental health;
Improve the employee insurance system and purchase group commercial insurance for employees to
effectively reduce the economic burden on employees? families caused by accidents, illnesses and other
reasons.
Environmental, Social and Governance (ESG) Report
Labor Relations Management
Case Study: Summer Cooling Campaign
The Company strictly complies with relevant labor laws and regulations, formulates rules and systems such as the Employee Code of Conduct
and Personnel Management System, and continuously improves the labor relations management system. Standardizing the entire process
management of labor contract conclusion, performance, modification, termination, and dissolution according to law, refining operational norms
for each stage of employee onboarding, employment, and departure, clarifying the rights and obligations of both labor and management, and
building standardized, harmonious, and stable labor relations.
In July 2025, the continuous high temperature in Henan posed
The Company standardizes employee departure management. All employee departures follow a unified process for work handover and a severe test to the workers sticking to the front line of key
departure procedures. For situations such as dismissal by persuasion, failure to reach agreement on mutual termination, or termination of labor project management and construction. The Company carried
contracts due to disciplinary violations, the Company will seek the legal department?s opinion, review according to regulations, and issue final out the theme Party Day activity of summer cooling at the
settlement pay, ensuring departure management is legal, compliant, and procedurally rigorous. SAIC Assets Henan Headquarters Base Project and the Two
Academies Project, and presented heatstroke prevention and
cooling materials to the projects.
Employee Care and Communication
| Employee Democracy
Adhering to the principles of legality and compliance, orderly advancement, openness and transparency, fairness and impartiality, the Company
has established a democratic management system with the Staff and Workers? Representative Congress as the basic form, fully safeguarding
employees? right to know, participate, express and supervise. We have established various channels to listen to the voices of front-line
employees, continuously promote the standardized operation of the Company?s democratic management, and actively create a good corporate
culture atmosphere.
The Company?s trade union carries out its daily management in strict compliance with laws, regulations, and relevant working guidelines,
including the Trade Union Law of the People’s Republic of China and the Constitution of the Chinese Trade Unions. During the Reporting Period,
Training and Development
the company had 140 employees who were union members, convened six staff and workers? representative congress meetings, and addressed
eight items for democratic decision-making.
Adhering the employment policy of ?respecting, caring for, utilizing and developing talents?, the Company continuously improves the
construction of the systematic training system, smooths the employee career development channels, provides a broad development platform
| Employee Care and diverse growth opportunities for all employees, helps employees realize their self-worth, and grows and develops together with the
enterprise.
The Company actively creates a warm and pleasant working atmosphere, attaches great importance to the dynamic balance between employ-
ees? work and life, and has conducted condolence and care activities for under-construction projects for many times, effectively enhancing
Employee Training
team cohesion and centripetal force.
The Company's training programs are closely aligned with its strategic development needs and talent development objectives, and steadily
promote the construction of a systematic training system. The Company always regards talents as its most valuable core asset and fundamental
driving force for development. Adhering to the people-oriented philosophy, it strives to foster a sound environment that respects, cultivates
and nurtures talents. By adopting diversified approaches such as online and offline training, and lectures by internal lecturers and external
experts, the Company provides employees with career-long training and guidance, continuously improves their professional skills and
comprehensive competencies, so as to meet the personal development needs of various talents.
Environmental, Social and Governance (ESG) Report
During the Reporting Period, the Company carried out various training activities as planned, organized 6 batches of induction empowerment
Career Development
training for new employees through the Cloud Learning Platform, with a total of 34 participants covering 20 units; held 24 professional training
sessions in response to business needs, covering 10 professional categories with a total duration of 2,500 hours and a total of 3,850
The Company adheres to the principles of "openness and impartiality, hierarchical and categorized management, full coverage, competence
participant person-times. Through the effective development of training, we have effectively improved employees? comprehensive quality and
orientation, and dynamic administration". In 2025, to support the business management and control model and talent strategic planning, the
professional ability, and enhanced employee management capabilities, and strengthened management talent reserve.
Party-Mass and Human Resources Department drew on advanced industry management practices to systematically optimize and adjust the job
sequence, promotion channels, and post naming standards. During the Reporting Period, the Company revised and improved the Management
Rank System Measures, promoting the development of human resource management towards systematization, standardization and refinement,
and laying a solid foundation for building a professional, specialized and market-oriented talent team.
Key Special Training Programs
The new position system categorizes posts into eight major categories, including management, professional and technical positions, and
establishes five competency levels and five sequences under the "OABCD" framework. In further clarifies the employee career development
channels, supports employees? vertical promotion or horizontal development, and provides a strong guarantee for the Company to attract,
Based on the research results of training needs of various departments, the Party-Mass
cultivate and retain talents.
PROFESSIONAL and Human Resources Department of the headquarters makes an overall plan and
COURSE regularly carries out training activities. It also specially invites all units to conduct online
TRAINING
ENHANCEMENT
PROGRAM
sharing and learning of relevant professional courses to promote talent training and help
Career Promotion Channels
the Company achieve its business goals.
In accordance with the latest regulatory requirements and the actual situation of internal Vertical Career Development Horizontal Career Development
control management, the Securities Development Department of the Company carries
CORPORATE
GOVERNANCE out internal training on the Guidelines for the Standardization of Corporate Governance,
STANDARDIZATION Information Disclosure, Deliberation and Decision-Making Procedures for Major Issues and
TRAINING
PROGRAM Internal Reporting, covering corporate governance, information disclosure, key points of
deliberation on major issues and decision-making procedures, guidelines for internal Intra-level rank promotion Intra-unit and intra-sequence development
reporting of major issues, etc.
Promotion from the current rank to Employees develop across subdivided sub-sequences within the
the higher rank in the same position. same sequence and the same unit.
The Party-Mass and Human Resources Department promoted the selection of reserve
?TALENT cadres under the ?Talent Program?. A total of 70 people signed up for the program in the
PROGRAM? Intra-unit and cross-sequence development
year, and 57 people entered the professional test link after qualification screening,
RESERVE CADRE
SELECTION among which about 82% scored more than 80 points. This is in line with the talent needs
职位晋升
Position promotion Employees develop across differen sequences within
PROGRAM the same unit.
of the Company, supports the Company?s ?One Body, Two Wings? strategy, and lays a Promotion from a lower-level
solid foundation for the subsequent construction of the cadre echelon. position to a higher-level position.
Inter-unit and intra-sequence development
Employees develop across subdivided sub-sequences within
Exceptional promotion the same sequence between different units.
Recommended by the direct superiors
or responsible leaders may receive Inter-unit and cross-sequence development
exceptional promotion, including
cross-level promotion within the same Employees develop across different sequences between
sequence. different units.
?Talent Program? Reserve Cadre Selection and Training Program
Environmental, Social and Governance (ESG) Report
Governance
Occupational Health and Work The Company has always taken work safety as the primary principle of operation and development, formulated work safety management
systems such as the Work Safety Responsibility System, the Work Safety Inspection, Acceptance and Hidden Danger Rectification System and the
Safety
Construction Site Work Safety Management System, and continuously improved the occupational health and safety management system with
?coverage in all directions and implementation at all levels? to conduct comprehensive supervision over all work safety work. The Company
designates the Safety Technology Department as the core responsible department, and builds a hierarchical work safety responsibility
transmission mechanism with clear responsibilities at all levels to ensure the safe, stable and orderly development of all production and
operation work.
The Company attaches great importance to employee health and work safety, strictly abides by the Work Safety Law of the People’s Republic
of China, the Law of the People’s Republic of China on the Prevention and Control of Occupational Diseases and other laws and regulations,
comprehensively prevents and controls occupational health and safety risks, provides employees with sound safety protection and all-round Honors and Recognitions
health care, and is committed to creating a safe, healthy and comfortable working environment.
he Phase II Project (East Campus) of the ?Two Academies and One Center? and the Phase I Project of the ?Two Academies and
One Center? - Stem Cell Research Center and Affiliated Supporting Projects won the honorary title of ?Henan Provincial
Construction Project Work Safety Standardization Site?.
Strategy
Risk Type Risk Description 1
Impact Cycle Potential Financial Impact Response Measures
If the enterprise fails to establish a sound occupational health and safety management system
or conduct necessary occupational health examinations, risk assessments and prevention and Short to medium term Increased compliance costs
control work, it may violate relevant laws and regulations. Continuously improve the occupational safety management system,
LEGAL RISK
build a dual prevention system mechanism for occupational health and
work safety, fulfill the main responsibility of the enterprise, and sign
work safety commitment letters.
Increased operational
Once a major safety accident or a major occupational disease incident occurs in a company Actively carry out work safety guarantee work such as risk assessment,
Short to medium term costs and decreased
project, the Company?s business may be interrupted or delayed. hidden danger investigation and occupational disease physical
operating revenue
OPERATIONAL RISK examinations.
Formulate emergency plans and strengthen drills; equip with sufficient
emergency rescue equipment, fire fighting facilities and equipment, etc.
During the operation of the Company?s projects, if personal injury or even fatal accidents are Increased operational
caused. After the accident is exposed, it leads to a decrease in market trust in the enterprise Medium to long term costs and decreased
and damages the platform?s image. operating revenue
REPUTATIONAL RISK
Environmental, Social and Governance (ESG) Report
Opportunity Type Opportunity Description 1Impact Cycle Potential Financial Impact
Impact Cycle?
Emerging technologies such as the Internet of Things, big data, and artificial intelligence Short-term (within 1 year): The impact on the Company is
Medium to long term Operational cost reduction
provide new means for safety production work. usually rapid and temporary, with a short duration typically
TECHNOLOGICAL not exceeding 1 year.
OPPORTUNITY
Medium-term (1-5 years): The impact on the Company is
more sustained, usually holding significant influence within 1
to 5 years.
By demonstrating outstanding occupational health and safety performance, the Company
Long-term (more than 5 years): The impact on the Company
can establish a responsible corporate image. Providing a safe and healthy work environment Medium to long term Increase in operating revenue
is profound and lasting, with a duration typically exceeding 5
helps to attract and retain top talent.
REPUTATIONAL years.
OPPORTUNITY
Impact, Risk, and Opportunity Management
The Company?s business operations are characterized by complex environments, diverse types of work and significant seasonal impacts.
Occupational health and safety risks exist in all links of project operations, and dust, noise and other factors generated in the construction
process are likely to pose threats to employees? health and safety. The Company continuously improves the work safety risk management Indicators and Objectives
system, actively carries out safety risk identification and assessment, and implements classified and hierarchical control for various risk points.
At the same time, we regularly organize safety hidden danger investigation and emergency rescue drills, build a comprehensive safety defense The Company adheres to the ?zero accidents and zero casualties? dual zero objective and is committed to building a safe Palm.
line, and effectively prevent various safety risks.
Safety Risk Classified and Hierarchical Control Measures Objectives Achievement Status during the Reporting Period
In accordance with the principles of ?independent investigation, scientific assessment, classification and grading, and hierarchical control?, the
Certification rate for special operations personnel: 100% Achieved
Company has formulated the Measures for the Classified and Hierarchical Control of Safety Risks and built a dynamic differentiated risk
management mechanism. Through systematic investigation and scientific assessment, we accurately classify and grade safety risks and
implement targeted control, effectively reducing the accident rate. At the same time, we strengthen the source control of occupational disease
Number of work-related injuries: zero Achieved
hazards, reduce occupational health injuries, and effectively safeguard the safety and health of employees.
New occupational disease cases: zero Achieved
Dual Prevention System
Safety-related penalties: zero Achieved
The Company has formulated the Implementation Plan for the Construction of the Dual Prevention System for Work Safety Risk Identification and
Control and Hidden Danger Investigation and Rectification, and established a three-level linkage mechanism of the Company, regions and
project departments. Regular employee health check-ups are conducted. Achieved
Accurately identify risks through risk assessment and hierarchical control and implement differentiated management; realize dynamic
monitoring and closed-loop management relying on hidden danger investigation and rectification. All project management personnel have
signed safety commitment letters to fulfill the main responsibility for safety. The system covers the entire construction process, and uses
intelligent means to realize traceable and full-coverage safety management, effectively improving the safety level and ensuring that all safety
hidden dangers are fully controlled.
Environmental, Social and Governance (ESG) Report
Safety Production Management
| Safety Production Inspections | Safety Emergency Management
The Company resolutely implements the work safety deployment at all levels, firmly establishes a bottom-line thinking and a sense of The Company continuously improved the Compilation of Emergency Rescue Plans for Production Safety Accidents, further optimizing the
responsibility, and establishes a work safety inspection mechanism combining regular inspections and unannounced random checks. We have emergency organizational structure, response procedures, and disposal measures. Simultaneously, the Company regularly conducted targeted
built a sound account for hidden danger investigation and rectification, implemented list-based management and responsibility-based safety emergency drills based on the plans, strengthening the implementation of the plans through simulated real scenarios.
promotion, clarified the responsible persons and time limits for rectification, and fully realized the closed-loop management of the whole
process of hidden danger investigation, rectification and acceptance, ensuring full coverage, no dead ends and no blind spots in hidden danger During the Reporting Period, the Company conducted a total of 54 emergency drills.
rectification, and laying a solid foundation for work safety.
During the Reporting Period, the Company organized 327 safety inspections, identified 1,290 various potential safety hazards, issued 331
hidden hazard rectification notices, with a rectification completion rate of 100%, achieving dynamic clearance of hazards.
Case Study: Fire Emergency Drill
Case Study: Supervising Work Safety of Under-Construction
Projects to Consolidate the Safety Line at the End of the Year
In March 2025, the Company organized and carried out an emergency drill for fire safety accidents at a project construction site,
with a core focus on practical simulation. This drill comprehensively tested and evaluated the scientific nature and suitability of
the emergency plan, strengthening employees? proficiency in the fire safety emergency response procedures.
In December 2025, the Secretary of the General Party Branch and Chairman of the Company carried out work safety on-duty
inspections in the way of ?four nos and two straights? (no prior notice, no greeting, no listening to reports, no accompanying
reception; direct access to grassroots level, direct inspection of the scene). Aiming at the construction operation process, the
Chairman conducted safety education and risk correction to realize the full-process safety control of construction operations,
and supervised and inspected the implementation of various safety protection measures and the allocation of safety protection
equipment for operators to ensure no safety hidden dangers at the construction site.
Environmental, Social and Governance (ESG) Report
Safety Production Knowledge Competition
| Safety Culture Development
The Company holds work safety knowledge competitions to guide and stimulate employees to further master safety knowledge, promote the
effective operation of work safety standardization, improve employees? safety quality, promote the effective dissemination of work safety
The Company continuously promotes the development of work safety culture, and through various ways such as safety special training, warning
culture, and create an atmosphere where everyone learns safety knowledge.
education, safety publicity and knowledge competitions, actively publicizes the Party?s and the state?s work safety policies, guidelines and laws
and regulations, popularizes the latest work safety culture knowledge, comprehensively improves employees? safety awareness and safety
operation skills, strengthens the safety literacy of all employees, and effectively reduces the risks of various safety accidents.
| Stakeholder Work Safety Management
Safety Production Education and Training The Company has built a full-process closed-loop control system around the work safety management of contractors to maintain a safe and
orderly production environment, safeguard the safety and health of external operators, and prevent safety accidents.
The headquarters, its subsidiaries, and project departments at all levels organize safety education activities centered on safety knowledge
dissemination, risk prevention and control, and emergency response capacity building. Through the promotion of safety concepts and policies,
case-based warning education, training on job safety operating procedures, and practical safety skill drills, all management personnel have In accordance with relevant laws and regulations and the Company?s supplier and sub-contractor management measures and other
gained a deeper understanding of safety production. documents, the Company clearly standardizes and stipulates the key links such as stakeholder access, process control, supervision and
assessment; and signs work safety and civilized construction responsibility letters with contractors, conducts full-process safety assessment,
ensuring that the work safety management of contractors is implemented in accordance with the same standards and requirements as the
Company. In terms of safety education for contractors, the three-level education is strictly implemented, special training is carried out in light
of project characteristics, and online and offline methods are adopted to achieve full coverage of operator training, effectively improving the
safety awareness and ability of operators. In terms of safety assessment, a mechanism of ?monthly inspection + annual comprehensive
evaluation? is implemented, with quantitative assessment indicators and hierarchical evaluation results. The assessment results are directly
linked to cooperation qualifications, and the one-vote veto system for safety is strictly implemented to strengthen the supervision role and urge
stakeholders to strictly implement safety requirements.
Occupational Health Protection
Safety Knowledge Promotion The Company strictly following the Law of the People’s Republic of China on the Prevention and Control of Occupational Diseases, and adheres
to the policy of ?prevention first, combination of prevention and treatment? and implements an occupational health management model
Various projects have promoted the concepts, ideas, measures, and behavioral norms of work safety, as well as publicized policies and
combining classified management and comprehensive treatment. In accordance with the requirements of occupational health and safety
regulations on work safety, general safety knowledge, occupational health knowledge, emergency response, and self-rescue and mutual aid
management system certification, the Company has built a scientific and standardized occupational disease prevention and control mechanism,
methods through a variety of means, such as displaying work safety publicity boards and providing on-site Q&A sessions on work safety.
making all-round efforts from three dimensions: source prevention, process control and hazard elimination.
Questions raised by participants regarding work safety were also addressed on the spot.
Measures Content
Carry out regular detection and assessment of occupational disease
Detection of Occupational Disease Hazard Factors hazard factors, and prohibit employees with occupational contraindica-
tions from engaging in relevant hazardous operations.
Provide personalized health protection plans for employees, organize
Occupational Health Examinations regular physical examinations for employees, and establish occupational
health files to realize dynamic tracking and management.
Equip construction sites with labor protection articles with product qualifi-
Distribution of Labor Protection Supplies cation certificates, which on-site operators must wear and use in accor-
dance with requirements.
PART 05
Common Welfare,
Shared Responsibility
Response to Topics?
Social Contribution, Rural Revitalization
Palm Eco-Town integrates ?green development and responsibility? into the gene of enterprise development,
takes the initiative to undertake social responsibilities, gives full play to its own resource advantages and
professional expertise, and continuously contributes to practicing social welfare, boosting rural revitalization,
responding to the Belt and Road Initiative and other aspects. We take practical actions to help build a harmonious
and beautiful society and realize the synchronous development of enterprise growth and social value.
Environmental, Social and Governance (ESG) Report
Practicing Social Welfare Case Study: ?Palm Orders Boost Agriculture, Education Nurtures
Talents to Celebrate June 1st? Co-construction Activity
Adhering to the public welfare philosophy of ?Boundless Undertaking, Boundless Love?, the Company takes the initiative to participate in social
welfare activities such as environmental protection, poverty alleviation and assistance, education and student aid, and encourages employees
to actively participate in various volunteer service activities, gather more love and strength, and pass on love and warmth to the society.
On May 29, Henan Palm Yuantu Agricultural Technology
During the Reporting Period, company employees participated in volunteer activities for a total of 221 hours, with a cumulative participation of
Co., Ltd. carried out a June 1st co-construction activity
with Yucai Hope Primary School in Chenzhuang Town,
presenting learning and growth gift packages including
schoolbags, notebooks, writing pens and other stationery
Case Study: Warmth in Winter, Party Love Warms Neighbors to 50 students, and conveying holiday blessings and
growth expectations.
To study and implement the spirit of the Fourth Plenary
Session of the 20th Central Committee of the Commu-
nist Party of China and General Secretary Xi Jinping?s
important expositions on ensuring and improving peo-
Support for Rural Revitalization
ple?s wellbeing, the Company jointly carried out the
theme Party Day activity of ?Warmth in Winter, Party
Love Warms Neighbors?, and sent rice, flour, edible oil
and other daily necessities and care to the needy people
and old Party members in Zhaojia Village.
The Company actively responds to the strategic deployment of rural revitalization. It closely integrates with its own practical situation. It
leverages its professional advantages in planning and design, land consolidation, and ecological protection. It integrates resources to assist in
developing ecological agriculture and rural tourism projects. It activates the endogenous driving force and developmental vitality of rural areas.
It promotes the sustainable development of the rural ecological environment and economy. In recent years, the Company has continued to
deepen its involvement in the field of high-standard farmland construction. While generating revenue for the Company, it has significantly
improved agricultural production efficiency and crop yield. It has promoted the increase of farmers? income and the vigorous development of
the rural economy.
Case Study: Love Gathers, Volunteer Dedication
of Thousands of Hearts
Organized by the Social Work Department of the CPC Guangzhou Municipal
Committee, the Guangzhou Red Cross Society set up the public welfare project of
?Haixinsha Volunteer Service Theme Park?. The Guangzhou Branch Party Branch of
the Company actively participated in this online donation theme Party Day activity,
and 18 Party members and active Party members responded positively and dedicated
their love, giving play to the vanguard and exemplary role of Party members.
Environmental, Social and Governance (ESG) Report
Case Study: Assisting in the Construction of the Luozang
Hundred Villages Happy Homeland in Nyalam County
Response to the ?Belt and Road?
The overall project primarily targets the Jianggang Village and Zongta Village rural folk tourism resort area, aligning with the
Initiative
The Company responds to the overall situation of the national Belt and Road construction, gives full play to its own business advantages.Its
improving river landscape, designing green space parks around the tourist service center, and improving village appearance
controlling subsidiary, Belt Collins, has actively participated in numerous design projects at home and abroad and in the countries along the Belt
and environment. It aims to create a 3A-level tourist attraction. It promotes the integrated development of culture and tourism
and Road. During the Reporting Period, Belt Collins completed the implementation of projects in Vietnam and India. By consolidating
to revitalize Nyalam County. It links with the rural revitalization cultural and tourism industry.
technological and resource coordination, jointly promoted the high-quality green development of the Belt and Road, and contributed to
economic and social development.
Case Study: Assisting in the Enhancement of Culture and
Tourism in Nyalam County, Shigatse City
The Culture and Tourism Enhancement Project in Nyalam County, Shigatse City focuses on enhancing the cultural aspects of the
platform square, designing the identification system, and improving service functions. With the direction of promoting intangible
cultural heritage and retaining passing travelers, and centered on the concept of ?retaining nostalgia for hometowns, inheriting
cultural heritage, mobilizing the enthusiasm of indigenous people, and achieving a relative balance between intangible heritage
inheritance and input-output,? we will highlight key points and grasp critical elements to create the first unique intangible cultural
heritage tourism area upon entering the county, thereby better attracting tourists along the national highway.
Environmental, Social and Governance (ESG) Report
Appendix Key Performance Table
Governance Performance
Indicator Index
Indicator Unit 2025
Shenzhen Stock Exchange Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No.17 - Sustainable Development Report
Remuneration of directors and senior management (including current 10,000 RMB 320.21
(Trial) and former)
Number of employees who participated in anti-commercial bribery Persons 213
Disclosure Requirements Corresponding Section and anti-corruption training
Total duration of anti-commercial bribery and anti-corruption
Hours 8.08
Climate Change Response Building Green, Towards Beauty - Climate Change Response training
Number of senior executives participating in anti-commercial bribery
Pollutant Emissions Building Green, Towards Beauty - Environmental Compliance Management and anti-corruption training Persons 5
Waste Management Building Green, Towards Beauty - Environmental Compliance Management Total duration of anti-commercial bribery and anti-corruption Hours 8.08
training provided to senior management personnel
Ecosystem and Biodiversity Protection Building Green, Towards Beauty - Ecosystem and Biodiversity Protection
Cases 0
Total number of anti-corruption and anti-bribery report incidents
Environmental Compliance Management Building Green, Towards Beauty - Environmental Compliance Management
Number of people who signed integrity agreements and other related Persons 111
business conduct documents
Energy Utilization Building Green, Towards Beauty - Resource Efficiency Enhancement
Number of corruption litigation cases filed and adjudicated Cases 0
Water Resource Utilization Building Green, Towards Beauty - Resource Efficiency Enhancement
Circular Economy Building Green, Towards Beauty - Resource Efficiency Enhancement
Social Performance
Rural Revitalization Common Welfare, Shared Responsibility - Support for Rural Revitalization
Employee Rights
Common Welfare, Shared Responsibility Social Philanthropy Engagement
Social Contribution
Common Welfare, Shared Responsibility – Response to the ?Belt and Road? Initiative Indicator Unit 2025
Innovation-Driven Development Value Co-creation, Industry Co-progress – Innovation-Driven Development Labor contract signing rate 1 Percent 99.75
Technology Ethics Not Applicable
Social insurance coverage rate 2 Percent 97.04
Supply Chain Security Value Co-creation, Industry Co-progress – Responsible Supply Chain
Number of employees with disabilities Persons 7
Equal Treatment of Small and Medium-Sized Enterprises Value Co-creation, Industry Co-progress – Responsible Supply Chain
Number of ethnic minority employees Persons 17
Product and Service Safety and Quality Value Co-creation, Industry Co-progress – Product and Service Safety and Quality
Data Security and Customer Privacy Protection Value Co-creation, Industry Co-progress - Data Security and Customer Privacy Protection
Proportion of women in management positions Percent 26.83
Employees Talent Cultivation, United Advancement Number of employees taking parental leave Persons 18
Governance Empowerment, Steady and Long-Term Development - Compliance
Operations and Business Ethics Return-to-work rate of employees after parental leave Percent 100
Due Diligence Talent Cultivation, United Advancement - Protection of Employee Rights and
Interests Number of projects reviewed and approved by the staff congress Items 8
Value Co-creation, Industry Co-progress - Product and Service Safety and Quality
Number of projects reviewed and approved by the trade union Items 8
Stakeholder Communication Sustainable Development Governance - Stakeholder Communication
Anti-Commercial Bribery and Anti-Corruption Governance Empowerment, Steady and Long-Term Progress - Compliance Proportion of trade union members among active employees Percent 85
Operations and Business Ethics
Anti-Unfair Competition Governance Empowerment, Steady and Long-Term Progress - Compliance
Operations and Business Ethics Note 1: There are 2 retired rehired personnel among the Company?s employees, who have signed ?Re-employment Agreements,? so the labor
contract signing rate is not 100%.
Voluntarily Disclosed Topics
Note 2: Among the Company?s employees, 24 Persons are not covered by social insurance. This includes 2 retired rehired employees and 22
Green Building Building Green, Towards Beauty - Green Construction overseas employees who contribute to the Mandatory Provident Fund in Hong Kong, China, so the social insurance coverage rate is not 100%.
Environmental, Social and Governance (ESG) Report
Employee Employment
Indicator Unit 2025
Indicator Unit 2025
Number of Employees by Profession
Total number of employees Persons 810 62
Sales Persons
Number of Employees by Gender Persons 77
Finance
Number of female employees Persons 322
Administration Persons 86
Number of male employees Persons 488
Persons 65
Number of new hires
Number of Employees by Age
New Hires by Gender
Under 30 years old (excluding 30 years old) Persons 132
Female new hires Persons 26
Male new hires Persons 39
New Employees by Age
Number of Employees by Position
Senior Management Persons 5
Middle Management Persons 118
Other Employees Persons 687
Employee Training and Development
Number of Employees by Educational Background
Indicator Unit 2025
Doctorate Persons 1
Total investment in employee training 10,000 RMB 4.70
Master?s Degree Persons 73
Employee Health and Safety
Bachelor?s Degree Persons 537
Associate?s Degree Persons 187 Indicator Unit 2025
High School and Below Persons 12 Hidden danger investigation and rectification rate Percent 100
Number of Employees by Profession Number of work-related fatalities Persons 0
Production Persons 367 Total number of occupational injuries Persons 0
Technology Persons 218 Number of work safety accidents Cases 0
Environmental, Social and Governance (ESG) Report
Employee Health and Safety Innovation-Driven Development
Indicator Unit 2025 Indicator Unit 2025
Number of patent applications Items 40
Number of safety emergency drills Sessions 54
Cumulative number of authorized patents (number of
Items 132
Total duration of safety training Hours 4,784
patents within the validity period)
Number of safety training sessions Sessions 598 By Patent Type
Number of participants in safety training Person-times
Coverage rate of work safety liability insurance personnel Percent
Work-related Injury Insurance Coverage Rate Percent
Employee Physical Examination Coverage Rate Percent
Certification Rate for Special Operations Personnel Percent
Cumulative Number of Trademarks Items 202
Innovation-Driven Development
Specialized, Sophisticated, Distinctive, and Innovative Enterprises Units 1
Indicator Unit 2025
National High-Tech Enterprises Units 2
R&D Investment 100,000,000RMB 1.23
Total Number of R&D Team Members Persons 96 Product and Service Safety and Quality
By Educational Background Indicator Unit 2025
Below Bachelor?s Degree Persons 19 Product Pass Rate Percent 100
Bachelor?s Degree Persons 55 Number of Customer Complaints Times 0
Master?s Degree Persons 21 Customer Satisfaction Points 98.39
Doctorate Persons 1
Supply Chain Security
By Gender
Indicator Unit 2025
Female Persons 41
Total Number of Suppliers Suppliers 2,682
Male Persons 55
Number of Local Suppliers Suppliers 886
Proportion of R&D personnel to total employees Percent 11.85
Supplier Integrity Agreement Signing Rate Percent 100
Environmental, Social and Governance (ESG) Report
Supply Chain Security
Feedback Form
Indicator Unit 2025
Dear Reader,
Number of new suppliers signing integrity agreements Suppliers 14
Thank you for reading this report. We highly value and look forward to hearing your valuable feedback on this report. Your opinions and
Number of events with significant risk and impact in the supply chain Cases 0 suggestions are a vital driving force for us to continuously improve the quality of our ESG information disclosure and deepen our ESG
management and practices. We sincerely welcome and gratefully appreciate your participation and support!
Number of suppliers whose cooperation was suspended due to non-compliance Suppliers 319
Number of potential suppliers rejected due to non-compliance Suppliers 0
□ Excellent □ Good □ Average □ Below Average □ Poor
Note: Local suppliers refer to suppliers from Henan Province.
□ Excellent □ Good □ Average □ Below Average □Poor
Environmental Performance 3.How do you think we are performing in stakeholder communication?
□ Excellent □ Good □ Average □ Below Average □Poor
Indicator Unit 2025
Total Greenhouse Gas Emissions 1 tCO₂e 182.50
□ Excellent □ Good □ Average □ Below Average □Poor
Total energy consumption 1 Tons of standard coal 42.27 5.How do you think we are performing in environmental protection, resource management, and climate change response?
kWh 343,955 □ Excellent □ Good □ Average □ Below Average □Poor
Total purchased electricity 1
Total Water Consumption2 Tons 129
□ Excellent □ Good □ Average □ Below Average □Poor
Major administrative penalty incidents for environmental violations imposed
Cases 0 7.How do you think we are doing in terms of supply chain security management?
by relevant departments such as ecology and environment authorities
□ Excellent □ Good □ Average □ Below Average □Poor
Note 1: The statistical scope covers the Zhengzhou headquarters office and the Guangzhou office. 8.How do you think we are doing in terms of protecting employee rights and occupational health management?
Note 2: The statistical scope covers the Zhengzhou headquarters office. □ Excellent □ Good □ Average □ Below Average □Poor
You can contact us through the following methods:
Phone: 0371-88927000 (Zhengzhou) / 020-85189888 (Guangzhou)
Fax: 0371-55075666 (Zhengzhou) / 020-85189000 (Guangzhou)
Zhengzhou Office Address: Floors 16-18, Haihui Center, Intersection of Dongfeng South Road and Kangning Street, Zhengdong New District,
Zhengzhou City
Guangzhou Office Address: 6th Floor, Tower B, Zhuguang New Town International Center, No. 3 Qingyi Street, Machang Road, Tianhe District,
Guangzhou City
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