Environmental, Social and
Governance Report
Luen Mei Quantum Co., Ltd.
www.luenmeilz.com
Luen Mei Quantum Co., Ltd.
Address: No. 1, Yuanhang Middle Road, Hunnan New District, Shenyang City
Postal Code: 110179
About the Report Reporting Period
The time span of the Report is from January 1, 2025, to December 31, 2025 (hereinafter referred to as the "reporting period"). Considering the
continuity and comparability of disclosed information, some content may involve historical data comparisons or extensions.
This is the 2025 Environmental, Social and Governance (ESG) Report (hereinafter referred to as the "Report") released by Luen Mei Quantum Co.,
Ltd. (hereinafter referred to as "Luen Mei Quantum", the "Company" or "we"). It aims to systematically present the Company's philosophies, prac-
tical progress, and phased achievements in environmental protection, social responsibility, corporate governance, and sustainable development
management. The Company hopes to further strengthen communication with stakeholders such as shareholders, clients, employees, govern-
ments and regulatory agencies, partners and community public through the Report. It also seeks to continuously enhance the transparency and Release Period
readability of information disclosure, address concerns from various parties, and demonstrate the Company's management actions and perfor-
The Report is an annual publication and constitutes the seventh Environmental, Social and Governance (ESG) report issued by the Company.
mance in sustainable development in a more pragmatic manner.
Organizational Scope Information Description/Data Sources
Unless otherwise speci?ed, the scope of the Report is consistent with that of the consolidated statement of the Company's 2025 Annual The information and data cited in the Report are derived from the Company's of?cial documents, statistical reports, ?nancial reports, and
Report, covering the Company and its subsidiaries. other materials, all of which have been reviewed by relevant departments of the Company. Unless otherwise speci?ed, ?nancial data in the
Report is presented in Renminbi (RMB) as the bookkeeping currency.
Description of Reference Reference Standards/Basis of Compilation
In the Report, unless the context otherwise requires, the following terms shall have the meanings set out below: United Nations Sustainable Development Goals (SDGs);
?GRI Standards issued by the Global Reporting Initiative;
Luen Mei Quantum Luen Mei Quantum Co., Ltd. Shenyang Shenshuiwan Clean Energy Co.,
Shenshuiwan Clean Energy
Ltd. ?Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies - Sustainability Report (Trial);
Luen Mei Group Luen Mei Group Co., Ltd. Shenyang Guorun Low Carbon Thermal
Guorun Low-carbon
Power Co., Ltd. ?Guidance No. 4 of Shanghai Stock Exchange for Self-Regulation of Listed Companies — Preparation of Sustainability Report (Revised in January
Luen Mei Smart Energy Technology
Luen Mei Smart Shandong Heze Fulin Thermal Technology 2026);
(Shenyang) Co., Ltd. Fulin Thermal
Co., Ltd.
Lianzhong New Energy Lianzhong New Energy Co., Ltd. ?Guidelines on Environmental, Social and Governance Reporting for Chinese Enterprises (CASS-ESG 6.0) – General Framework.
Hunnan Thermal Refers Shenyang Hunnan Thermal Co., Ltd. Refers
to Mega-info Media to Mega-info Media Co., Ltd.
Xinbei Thermal Power Shenyang Xinbei Thermal Power Co., Ltd.
Access to the Report
Shenyang Huaxin Luen Mei Assets
Huaxin Luen Mei
Management Co., Ltd.
Guohui Environmental Protection New
Guohui New Energy
Energy Co., Ltd. Lianrong Commercial Tianjin Lianrong Commercial Factoring
The Report is published in both Chinese and English versions. Electronic versions can be accessed and downloaded from the Shanghai Stock
Factoring Co., Ltd.
Shenyang Guoxin Environmental
Guoxin New Energy Exchange website (https://www.sse.com.cn/) and the Company's of?cial website (http://www.luenmeilz.com/). In case of any ambiguity in
Protection New Energy Co., Ltd. Heli Heating Shenyang Heli Heating Co., Ltd.
the understanding of the two language versions, the Chinese version shall prevail.
Luen Mei Bioenergy Jiangsu Luen Mei Bioenergy Co., Ltd.
Establishing Rules Connecting Key Performance Indicators 55
Message from the Chairman 01 for Sound Households
Governance and Stability and Sharing Harmony Indicator Index 58
About Luen Mei 03
Company Pro?le 03
Standardizing corporate governance 17 Driving Transformation Through Innovation 37 Feedback Form 64
Organizational Structure 04 Business compliance Management 19 Upholding Excellence in Quality Control 38
Development History 05 Upholding business ethics 20 Enhancing Service Experience 41
Business Strategy 07 Protecting investors' interests and rights 21 Cultivating a Sustainable Supply Chain 42
Corporate Culture 08
Safeguarding Employee Rights and Well-being 43
Honors in 2025 09
Advancing Social Harmony and Community Co-construction 53
ESG Management 11
Caring for Ecology
ESG Management Structure 11
Nurturing All Life
Communication with Stakeholders 12
Analysis of Material Topics 13
Climate Change Response 25
Strengthening Environmental Management 29
Optimizing Resource Utilization 32
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Message from the Chairman
Message from the Chairman
The times move forward, and our responsibility persists. Standing at the developmental juncture of 2025 and looking back, Luen Mei Responding to Expectations of All Parties through Responsible Operations
Quantum has consistently placed the development of the enterprise within the broader context of national strategy, industry transforma-
The development of an enterprise is inseparable from the support of all sectors of society. The value of an enterprise is reflected not
tion, and societal needs for contemplation and advancement. Continuously revolving around the value proposition of "Connecting to the
only in operational results but also in its continuous responsibility towards customers, employees, partners, and the public. In 2025, the
Future, Making Life Beautiful", we have coordinated green development, stable operations, technological innovation, and social responsibil-
Company continued its work focusing on key issues such as heating service quality, customer appeal response, employee growth and care,
ity, continuously solidifying our foundation and accumulating momentum on the path of sustainable development.
supply chain collaboration, and integrity and compliance in operations. By re?ning service mechanisms, improving complaint handling
Over the past year, the external environment remained complex and volatile. The interplay of energy structure adjustment, green and ef?ciency, strengthening employee training and occupational health and safety management, optimizing procurement and cooperation
low-carbon transition, escalating regulatory requirements, and heightened stakeholder expectations presented both challenges and oppor- processes, and reinforcing legal and compliance development, we promoted the formation of a more stable, credible, and sustainable oper-
tunities. In the face of these changes, Luen Mei Quantum continued to stay grounded in our main business and focus on the real economy. ational ecosystem.
Guided by the principles of clean, ef?cient, smart, and low-carbon development, we persistently advanced the quality and ef?ciency
improvement of our core heating and energy supply business, steadily enhanced corporate governance effectiveness, strengthened com-
pliance operations and risk management, and endeavored to integrate sustainable development requirements into the entire process of
Ensuring Steady Progress through Governance Enhancement
enterprise management and operations.
Governance capability is a crucial support for enterprises to navigate cycles and achieve long-term development. Luen Mei Quantum
upholds standardized governance, science-based decision-making, risk prevention, and information disclosure as fundamental pillars for
its sustainable development, continuously promoting the synergistic enhancement of board governance mechanisms, internal control sys-
tems, IT infrastructure, and ESG management. In 2025, the Company deepened its work in areas such as standard governance operations,
?nancial internal control optimization, investor communication, and ESG coordination management, continuously strengthening its gover-
nance transparency and the ability to ful?ll its responsibilities. During the reporting period, the Company was honored with the title of
Building Long-term Competitiveness through Green Development
"Excellent Sustainable Development Practice Case for Listed Companies" and was selected for the "China's Top 500 Energy Enterprises"
Green and low-carbon development is not an optional extra but a required answer for the high-quality development of an enterprise. list, demonstrating full recognition from the capital market and the industry for the effective results of the Company's governance.
Luen Mei Quantum is well aware that, as a signi?cant participant in the comprehensive energy sector, it is imperative to integrate the con-
Looking ahead, Luen Mei Quantum will continue to uphold a long-term perspective and maintain a strategic focus. Based on our indus-
cept of green development into the entire process of strategic planning, project construction, production operations, and service enhance-
trial foundation and resource endowment, we will persistently advance the green and low-carbon transition, enhance service and manage-
ment. In 2025, the Company continued its efforts in energy conservation and consumption reduction, clean energy supply, environmental
ment standards, deepen technological and digital empowerment, and strive to achieve coordinated progress in enterprise development,
protection management, and ef?cient resource utilization. Positive progress was achieved in areas such as boiler ef?ciency improvement,
social value, and ecological bene?ts. We will also respond to stakeholder concerns with a more open, prudent, and pragmatic attitude, con-
flue gas waste heat recovery, smart heating, combustion optimization, and environmental facility upgrades, leading to a steady increase in
tinuously writing new chapters in sustainable development.
energy utilization ef?ciency and environmental management standards. The Company continued to expand the application of clean energy,
with annual biomass power generation reaching 89.966 million kWh, ful?lling our green development commitment through concrete
actions.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report About Luen Mei
About Luen Mei
Organizational Structure
President: Lu Chengsong
Company Pro?le Environmental Protection
Construction Committee
Performance Managemen
Committee
Luen Mei Quantum Co., Ltd. ("Luen Mei Quantum", "Company" or "we") (stock code: 600167.SH) is one of the core member companies of Heat Source & Heat Network Three Repairs and Technological
Luen Mei Group. The Company has been deeply committed to the ?eld of integrated energy services, conducting business around clean heat-
Construction Committee Transformation Committee
ing, power supply, steam supply, and related engineering services. It continuously explores and improves its business layout in areas such as
cogeneration, distributed energy utilization, biomass energy utilization, water-source heat pump heating, smart heating, and other integrated Chief
Vice Chief Vice Vice Vice Vice Vice
energy scenarios. After years of development, the Company has gradually formed an industrial structure with clean heating and integrated President Engineer Financial President President President President President
Of?cer
energy services as its important foundation, and continuously promotes re?ned management, intelligent operation, and quality service.
Based in Shenyang, Liaoning, the Company combines the resource endowments, customer needs, and project conditions of different regions
Research Institute Co., Ltd.
Beijing Luen Mei Environmental Science and Technology
Inspection Department
Luen Mei Smart Energy Technology (Shenyang) Co., Ltd.
Finance Department
Legal Affairs Department
Operation Department
IT Management Department
Market Development Center
Integrated Energy Business Division I
Integrated Energy Business Division II
Horgos Luen Mei Engineering Technology Co., Ltd.
Integrated Energy Business Division III
Hydrogen Energy Business Division
Securities & Branding Department
Human Resources & Administration Department
Xinyuan Project Construction Headquarters
to continuously advances its multi-regional business layout and practices of multi-energy complementarity. Building upon its existing busi-
nesses, the Company expands and optimizes its project portfolio through methods such as self-construction, acquisition, and operational
management, striving to provide clean, ef?cient, and stable integrated energy solutions for different scenarios including residential heating,
industrial parks, and public construction projects. Meanwhile, the Company consistently strengthens the construction of digital platforms and
operational synergy to enhance the operational ef?ciency of energy systems, service responsiveness, and the level of re?ned management.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report About Luen Mei
Development History
April 2017
Luen Mei Quantum (stock December
January 2016 code: 600167.SH) com-
December 2022
pleted the reorganization
Luen Mei Quantum Hold-
and optimization of its
ings Co., Ltd. was, through TOP 100 global hydrogen
September industrial and commercial
organizational structure,
energy enterprises in 2022
It of?cially invested in
enhancing the Company's
CEMT by way of equity
GHEE. Luen Mei Quantum
level of lean management.
Investment and Con-
Luen Mei Quantum Co., April 2020 transfer and became its
actively explored the busi-
June 2006 struction work began on
Ltd. The stock abbrevia-
An agreement on the
important shareholders.
ness in hydrogen energy
tion remained: Luen Mei industry.
the No. 3 Heat Source investment and construc-
Shenyang New District
Plant of Hunnan Thermal,
Quantum, with stock
March 2019 tion of a cogeneration
Development and Con- code: 600167.SH.
a subsidiary of Luen Mei project in Sujiatun District,
struction Co., Ltd. (stock Shandong Heze Fulin Ther-
Quantum (stock code: Shenyang was signed,
code: 600167.SH) invested mal Technology Co., Ltd. was
to establish Shenyang acquired to strengthen the
Hunnan Thermal Co., Ltd., business layout of the heat investment of RMB 2.1
comprehensively deploying supply sector. billion.
clean heating and heat
supply business in Shen-
yang's Hunnan New
District.
March 2022
The subsidiary Mega-info
May 2016 Media was of?cially listed
on the Shenzhen Stock
Luen Mei Quantum (stock Exchange (stock code:
code: 600167.SH) completed 301102.SZ).
a major asset reorganization.
Seven companies, including
Xinbei Thermal Power and its November
April 2005 subsidiaries, Guohui New 2018 March 2020
February 2008 Energy and its subsidiaries,
Part of the equity of the com-
After completing the equity became member companies Luen Mei Quantum (stock
Shenyang New District Devel- bined cooling, heating, and power
transfer with Nanhu Technol- of Luen Mei Quantum. This code: 600167.SH)
opment and Construction Co., project of the Shanghai National
ogy Group, Luen Mei Group reorganization expanded the acquired 100% equity of
Ltd. (stock code: 600167.SH) Exhibition and Convention Center
became the largest share- Company's business scale Mega-info Media, a lead-
changed its full name to "Luen Energy Station was acquired to
h o l d e r o f S h e n ya n g N e w and added business ?elds ing domestic high-speed
Mei Quantum Holdings Co., layout the southern market.
District Development and with extremely high environ- rail media digital operator,-
Ltd.", subsequently the Compa-
Construction Co., Ltd. (stock mental bene?ts, such as forming a dual main busi-
ny's stock abbreviation was
code: 600167.SH), trans- clean coal, biomass cogene- ness structure of "Clean
changed to "Luen Mei Quan-
forming the listed company ration, and intelligent moni- Heating + High-speed Rail
tum", while the stock code
f ro m s t a t e - c o n t ro l l e d t o toring. Digital Media".
remained 600167.SH.
privately controlled.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report About Luen Mei
Business Strategy Corporate Culture
Facing the trends of green, low-carbon transformation and high-quality industry development, the
Company continues to adhere to technology and innovation as the driving force, with a foundation
in deeply cultivating its main business. Through the triple model of "self-construction + acquisition
self-building
+ operational management", and focusing on core products such as cooling, heating, electricity, and
Thriving Well-being
steam, as well as integrated energy service scenarios, the Company promotes steady business
development, maintains a ?rm strategic direction, overcomes dif?culties, and leverages its own
management and operational strengths. The operational situation continues to improve steadily,
&m
Enterprise Healthy Employee Healthy Social Healthy
Op nag
ion
era em
a
laying a solid foundation for the Company's sustained, healthy, and high-quality development.
isit
Development Development Development
tio ent
qu
n
Ac
Focus on the main business Promote the physical and mental Promote mutual bene?t and
and strengthen the industry health of employees win-win results between
enterprises and society
Collaborative operations and Share the achievements of Achieve harmony between
Heilongjiang continuous innovation enterprise development humanity and nature
Jilin
Improve the mechanism and Encourage employees to grow
Xinjiang Liaoning operate in compliance and progress Create a high-quality life
Shenyang
Inner Mongolia Beijing
Tianjin
Hebei
Improve management and Comprehensively enhance Be a responsible corporate
Shanxi
Ningxia
Qinghai
Gansu
Shandong
develop steadily personal value citizen
Shaanxi Henan
Jiangsu
Tibet Anhui
Shanghai
Hubei
Sichuan
Zhejiang
Chongqing
Jiangxi
Hunan
Guizhou Fujian
Taiwan
Yunnan
Guangxi Guangdong
Hongkong
Macao
Hainan
Ful?lling Workplaces
The main businesses of the Company include heat supply, power supply, steam supply, and engineering construction. Within the Company's
Achieving Others While Perfecting Ourselves, Creating a Better Future Together
business scope, prioritized formats encouraged by the state include cogeneration primarily for clean heating, waste heat utilization via
water-source heat pumps, biomass cogeneration, and combined cooling, heating, and power utilizing clean energy. The Company will continue to
focus on core products like cooling, heating, electricity, and steam, integrating the latest energy technologies and equipment to provide custom-
ers with clean, ef?cient, safe, and stable integrated energy services. While further enhancing the ef?ciency of urban central heating systems, the Make your customers
Company will vigorously develop distributed clean energy technologies and equipment to achieve cleaner upgrades at the source. At the end-us- Make yourself happy Make the team happy Make the family happy
happy
er side, it will further improve service quality, utilize IoT technology to enhance service response speed and precision, and achieve accurate feed-
back.
Work hard and pursue Provide whole-hearted
Mutual trust Harvest abundantly
dreams service
Willing to support and Create a better future
Realize self-value Enjoy happy moments
share together
Heating Power Steam Engineering
supply supply supply construction
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report About Luen Mei
Honors in 2025
The 13th "GlodenWis" Award
Included in the China Energy (Group)
The Green and Low carbon Outstand-
Top 500
ing Contribution Award
JRJ.com China Energy News
Included in the Classic Brand Case of Enterprise Management &
Chinese Listed Companies Entrepreneur Magazines
Outstanding ESG Achievements of the
National Business Daily Enterprise in 2025
Listed Company with Excellent Competi-
China Association for Public Compa-
tiveness in New Energy and New
nies (CAPCO)
Materials in 2025
The 14th China Listed Companies Summit and Outstanding Sustainable Development Practice
Hainan Free Trade Port Opportunities Forum Case of Listed Companies in 2025
Luen Mei Smart was recognized as a
National High-tech Enterprise for the
ESG Rating: A-pi Level
?rst time
Hainan Green Development Credit Rating Co., Guohui New Energy passed the re-review of the
Ltd. National High-tech Enterprise for the fourth
consecutive time
Xinbei Thermal Power won the "2025 Shenyang Xinbei Thermal Power won the title of "Power
Heating Operator and Heating Equipment Enterprise 2024 Annual Advanced Unit for Work
Maintenance Technician Skills Competition - Safety in Power Operation".
Civilized Style Award"
Shenyang Heating Industry Trade Union Shenyang Municipal Bureau of Industry
Federation and Information Technology
Xinbei Thermal Power won the "Excellent Heat Exchange Station in Heating Work from 2024-2025 -
Yinhua Property Heat Exchange Station" and the "Excellent Emergency Team in Heating Work from
Shenyang Municipal Real Estate Bureau
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report About Luen Mei
ESG Management Communication with Stakeholders
Luen Mei Quantum attaches great importance to communication and engagement with its stakeholders. Considering industry characteristics,
Luen Mei Quantum consistently integrates the concept of sustainable development into the Company's strategy, management, and daily opera- business layout, and development stage, the Company continuously identi?es key stakeholders closely related to its operations and develop-
tions, continuously improving the ESG management system. In 2025, the Company further consolidated the foundation of ESG management ment. Centered on their focus areas, the Company, through diversi?ed and regular communication mechanisms, timely understands stakehold-
around the construction of governance mechanisms, communication with stakeholders, and the identi?cation of material topics, and continu- ers' demands and expectations, actively responds to their concerns, and continuously enhances the relevance of ESG management and the
ously improved the systematicness, standardization, and execution of ESG governance. Guided by the national "dual carbon" strategy and the effectiveness of accountability.
requirements for high-quality development, the Company actively identi?es risks and opportunities in the environmental, social, and governance
domains, continuously improves the quality of information disclosure and the level of sustainable development management, and strives to During the reporting period, the Company maintained communication with stakeholders, including government and regulatory bodies, sharehold-
create sustainable value for shareholders, customers, employees, partners, communities, and society in a manner characterized by integrity, ers, employees, customers, business partners, and communities, through various methods such as interviews, surveys, meeting exchanges,
responsibility, stability, and a long-term perspective. information disclosure, site visits, and online interactions. Therefore, it has fostered a more transparent, smooth, and effective communication
mechanism.
ESG Management Structure Stakeholders Focus Areas Communication Methods Communication and Response
Luen Mei Quantum has established a top-down, three-tier ESG management structure with clear responsibilities. It operates through a • Government communication meetings • Ensure heating services
• Provide reliable heating services
closed-loop mechanism of "decision-making – management – execution," driven by the Board of Directors for overall decision-making, coordi- • Exchanges with regulatory agencies • Abide by laws and
• Integrity and compliance in
regulations
nated and promoted by the ESG coordination group, and speci?cally implemented by ESG working groups. This structure facilitates the deep operations • Information disclosure and submission
Government and • Pay taxes voluntarily
integration of ESG principles with corporate governance, operational management, and business practices. • Tax payment according to law • Regular visits
regulatory authorities according to law
Responsible for the deliberation and decision-making of major ESG issues, includ-
Decision-making • Periodic reports and information • Improve business perfor-
Board of ing the formulation of relevant strategies and guidelines, and the special review of announcements
layer Directors • Steady growth of performance mance
the annual ESG report
• Standard corporate governance • Investor investigation • Strengthen internal control
• General meeting of shareholders level
• Transparent information
Coordinated by the Company's Of?ce of the Board of Directors Shareholders disclosure • Communication and answering • Regular information
ESG questions on the interactive platform disclosure
Management coordination Responsible for coordinating ESG-related affairs, including collecting ESG-related
layer group performance information, compiling ESG reports, conducting communication and • Hold the staff representative congress • Broaden communication and
exchanges with ESG investors, etc. feedback channels
• Protection of employees' rights • Employee satisfaction survey
and interests • Organize various employee training • Strengthen occupational
Composed of the functional departments and business departments of the head- health construction
• Occupational health and safety programs
quarters and af?liated companies
• Set up complaint and feedback • Optimize the training and
ESG working • Training and career development
Execution layer group Responsible for the centralized management of various ESG topics, continuously Employees mailboxes promotion mechanism
• Growth of salary and welfare
deepen key ESG practices, and regularly report relevant management measures, • Organize staff recreation and sports • Improve the salary and
performance indicators, and excellent cases health activities welfare system
To continuously enhance ESG governance capabilities, Luen Mei Quantum consistently improves its ESG learning and training mechanisms. The • Publicly announce service quality
Company continuously strengthens the sustainability awareness and professional competence of the decision-making, management, and commitments
• Improve service quality • Strengthen personnel
execution tiers by organizing relevant personnel to participate in sustainability and ESG-themed training, industry exchange events, and social • Customer room temperature
training
• Protect customers' rights and measurement
forums. During the reporting period, the Company actively organized senior management to participate in ESG training exchange activities and interests • Improve after-sales service
• Telephone hotline service
other thematic forums held by institutions such as the Shanghai Stock Exchange and the China Association for Public Companies. These activi- Customers
• Customer satisfaction survey
ties helped in timely tracking ESG policy trends and regulatory requirements, learning from industry best practices, and continuously improving
the Company's professional knowledge and accountability capabilities in the environmental, social, and governance ?elds. In addition, the Com-
• Supplier/contractor manage- • Hold bidding meetings • Create a responsible supply
pany organized the Securities and Branding Department to continuously study ESG-related regulations, policies, and business requirements,
ment • Contract negotiation and daily chain
further consolidating the professional foundation and helping to continuously elevate the Company's ESG management level. meetings
• Fair and transparent procure- • Fair and open bidding
ment • On-site inspections
In 2025, the Company incorporated environmental and social factors into its cost control assessment system for the ?rst time, establishing a Business partners • Industrial chain cooperation
• Win-win cooperation • Supplier evaluation and exchanges
management mechanism that balances short-term operational ef?ciency with long-term value creation. In the environmental dimension, the
Company focused on controlling key cost items such as clean energy substitution, pollution control, waste heat recovery, and reuse of waste
• Create employment
• Promote employment growth
materials. It secured optimal prices for clean fuels through bidding mechanisms, promoted the implementation of energy-saving and emis- • Hold public open days opportunities
sion-reduction projects, and helped achieve low-carbon operational goals. In the social dimension, the Company included costs related to heat- • Protect the community
• Carry out community visits and • Strengthen environmental
environment
exchanges protection management
ing service quality and production/operational safety within the scope of control. It systematically accounted for special investments in areas
• Drive local community
• Employee volunteer service activities • Support community
like smart heating, emergency support, and renovation of aging pipeline networks, effectively avoiding potential operational losses due to service development
construction
• Conduct knowledge promotion and
quality issues, thereby safeguarding user rights and operational stability. Furthermore, the Company managed key sustainability investments in a Communities • Participate in charity and public
education • Implement public welfare
welfare
coordinated manner, such as digital transformation, photovoltaic construction, and boiler retro?ts. By balancing short-term cost pressures with services
long-term bene?ts, the Company aims to build a sustainable operational system that supports high-quality development.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report About Luen Mei
Analysis of Material Topics
Based on the Company's business scope, industry characteristics, the expectations of internal and external stakeholders, and the global sustain-
able development landscape, Luen Mei Quantum has updated and upgraded its assessment system. This enhancement was done by referencing
relevant domestic and international disclosure standards such as the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of
Matrix of Material Topics
Listed Companies — Sustainability Report (Trial) and the GRI 3: Material Topics. Building upon the previous impact materiality assessment,
?nancial materiality analysis has been integrated. Through these materiality assessments, the Company comprehensively identi?es topics that
have an impact on its ?nances as well as on the economic, environmental, and social aspects, and that relate to stakeholder concerns, forming a
materiality matrix.
High materiality
Innovation-driven Development
Circular Economy
Topic Assessment Process Analysis Methods
Usage of Water Resource Product Quality
Understand the Company's activities and business relationships Supply Chain Security Service Experience
Understand the
Step 1 background of the Communication with Stakeholders Pollutant Discharge
Company's activities and Understand the external objective environment
Employees Waste Disposal
Materiality to economic, social and environmental impacts
business relationships
Understand the main affected stakeholders Anti-unfair Competition Climate Change Response
Energy Usage
Refer to the topics set forth in the Guidelines No. 14 of Shanghai Stock Exchange
Anti-Commercial Bribery and Anti-Corruption
for Self-Regulation of Listed Companies — Sustainability Report (Trial), and con-
Step 2 Topic selection
Exploring Clean Energy
duct an analysis in combination with industry characteristics, the industry's
development stage, the company's own business model, relevant regulatory
policies, and peers' practices to initially identify the Company's material topics.
Step 3 Materiality assessments Impact materiality assessment
Assess whether each topic will have a potential or actual positive or negative
signi?cant impact on the economy, society and the environment. Rural Revitalization
Contribution to the Society
Financial materiality assessment
Science and Technology Ethics
Assess whether each topic is expected to have a signi?cant impact on the Compa-
Equal Treatment to Small and Medium-sized Enterprises Environmental Compliance Management
ny's business model, business operations, development strategy, ?nancial condi-
Ecosystem and Biodiversity Protection
tion, operating results, cash flow, ?nancing methods and costs in the short,
Data Security and Customer Privacy Protection
medium and long term.
Due Diligence
Step 4 Topic con?rmation Form a material topic matrix based on the materiality assessment results of
the topics.
Low materiality Financial Materiality to the Company High materiality
Dual material topics Financial material topics Impact material topics Related topics
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Establishing Rules for Sound Governance and Stability
Establishing Rules for Sound
Governance and Stability
Luen Mei Quantum consistently regards standardized governance, compliant operations, business ethics, and investor
rights protection as a crucial foundation for sustainable development. The Company is well aware that a robust and
ef?cient governance system is not only related to operational ef?ciency and risk prevention capabilities but also directly
influences its performance in environmental management, social responsibility ful?llment, and long-term value creation.
During the reporting period, the Company continuously improved its governance structure, strengthened internal control
and compliance management, advanced integrity in professional conduct and business ethics development, and re?ned
investor communication and return mechanisms, continuously solidifying the governance foundation for high-quality
development.
Responding to United Nations Sustainable Development Goals (SDGs):
Chapter topics
Standardizing corporate governance 17
Business compliance Management 19
Upholding business ethics 20
Protecting investors' interests and rights 21
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Establishing Rules for Sound Governance and Stability
Standardizing Corporate Governance Key performance indicators
During the reporting period
Luen Mei Quantum strictly adheres to the requirements of laws and regulations such as the Company Law of the People's Republic of China, the
Securities Law of the People's Republic of China, and the Code of Corporate Governance for Listed Companies. The Company continuously
improves its modern corporate governance system, standardizes the operational mechanisms of the General Meeting of Shareholders and the
the Company convened 4 General Meetings of Shareholders. In accordance with the new Company Law and the Rules Governing the
Listing of Stocks on Shanghai Stock Exchange
Board of Directors, and ensures scienti?c and ef?cient decision-making procedures as well as the effective functioning of supervisory mecha-
nisms. The Company insists on integrating the development of Party conduct, integrity, and anti-corruption efforts with corporate governance,
continuously strengthening organizational, institutional, and ideological safeguards, and guiding the enterprise towards long-term and stable the Company revised its Articles of Association and 22 related corporate governance management systems.
development through standardized governance.
Improving Organizational Structure Board of Directors
In accordance with laws, regulations, and regulatory requirements, the Company has established a governance structure characterized by clear The Board of Directors is the core decision-making body of the company, responsible to the General Meeting of Shareholders. The Company's
rights and responsibilities, distinct division of labor, and standardized operation. The Board of Directors is responsible and reports to the General Board of Directors strictly performs its duties in accordance with laws, regulations, and company bylaws. Directors diligently attend meetings of
Meeting of Shareholders. Under the Board, there are four specialized committees: the Strategic Development Committee, the Remuneration and the Board of Directors and General Meetings of Shareholders, strictly implement authorizations from the General Meeting, and promote the
Assessment Committee, the Nomination Committee, and the Audit Committee. Each committee performs its duties according to its division of implementation of various resolutions.
responsibilities, providing professional support for the scienti?c decision-making of the Board of Directors.
The Company's Board of Directors has established four specialized committees: the Strategic Development Committee, the Remuneration and
The Company also continuously promotes the deep integration of the ESG governance system with the corporate governance system. The Board Assessment Committee, the Nomination Committee, and the Audit Committee. Each committee provides relevant professional support and
of Directors is responsible for reviewing and deciding on major ESG matters. The Board Of?ce coordinates ESG-related work, organizing and recommendations for the Company's development based on its respective responsibilities, effectively enhancing the scienti?c nature and stan-
coordinating various business and functional departments to implement sustainability requirements, thereby driving the simultaneous improve- dardization of corporate governance.
ment of corporate governance capabilities and sustainable development management standards.
In the selection process for Board members, the Company systematically considers diverse factors such as age structure, educational back-
ground, professional quali?cations, and industry experience. This approach builds a decision-making team with complementary expertise and
rich experience, which not only effectively matches the development needs of the Company's various business segments but also signi?cantly
Ef?cient Operation of the Three Key Governance Bodies enhances the strategic decision-making effectiveness and operational management level of the Board, providing strong governance assurance
for the Company's sustainable development. As of the end of 2025, the Board of Directors consists of 7 members, including 3 independent direc-
Board of Shareholders tors. Board members possess diverse professional backgrounds and, leveraging their extensive industry experience and professional knowledge,
provide professional insights and independent judgment for the Company's major decisions from multiple dimensions.
The Board of Shareholders is the supreme authority of the Company. The Company strictly complies with legal and regulatory requirements to
comprehensively standardize the convening, conduct, eligibility of participants, and voting procedures of shareholder meetings. Throughout the
process, the Company treats all shareholders equally, fully safeguarding shareholders' exercise of their rights in accordance with the law, with
In 2025
particular attention paid to protecting the legitimate rights and interests of minority shareholders. No incidents harming the interests of minority
shareholders occurred.
the Company held 6 6 meetings of the and 1 meeting of the A total of 98 proposals were
meetings of the Board of Board's Audit Remuneration and reviewed and approved
Directors Committee Assessment Committee throughout the year.
Training for Directors and Senior Management
The Company places high importance on enhancing the performance capabilities of directors and senior management. It actively organizes and
participates in specialized training sessions conducted by regulatory bodies, stock exchanges, and industry associations, continuously improv-
ing the professional competencies of directors and senior management in areas such as corporate governance, information disclosure, the inde-
pendent director system, ?nancial norms, and capital market compliance. In 2025, focusing on enhancing the performance capabilities of direc-
tors and senior management, the Company organized or participated in 11 training sessions covering topics including compliant performance of
duties for listed companies, information disclosure, independent directors, and market value management.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Establishing Rules for Sound Governance and Stability
Date Summary Strengthening Internal Control and Inspection
Training on Compliant Performance of Duties for Directors, Supervisors and Senior Executives of Listed Com-
panies in 2025 organized by the Shanghai Stock Exchange
formulated and implemented regulatory documents such as the Internal Control Management Measures, Heating Inspection Management Regula-
Special Training on the Standardized Operation of Information Disclosure for the Key Personnel of Listed tions, Equipment and Material Quality Inspection Management Regulations, Environmental Material Sampling and Testing Management Measures,
Companies in 2025 organized by the Shanghai Stock Exchange
standardized operations and risk prevention and control.
Training for independent directors of listed companies organized by the Liaoning Association of Listed Com-
panies
ing 1 inspection manager and 5 inspectors). The department focuses on conducting systematic inspections, supervision, and evaluations
carried out regular internal control inspections based on internal control systems, completing 6 categories of business checks with a 100% prob-
Training Meeting on Mergers and Acquisitions and Reorganizations of Listed Companies jointly organized by the lem recti?cation completion rate. By timely identifying and effectively correcting potential risks in operational processes, the Company continu-
Liaoning Local Financial Administration and the Liaoning Of?ce of China Securities Regulatory Commission
ty development.
Key performance indicators
The 3rd Subsequent Training for Secretaries of the Board of Directors of Listed Companies in 2025 organized
by the Shanghai Stock Exchange
Special training on "Analysis of Typical Cases of Illegal Acts by Listed Companies" organized by the Liaoning
or equal to 1000.
Conducting Compliance Training
Strengthening Party Leadership The Company actively carries out law-abiding and compliance training, continuously enhancing employees' awareness of compliance with laws
and regulations and their ability to implement systems, fostering a positive atmosphere where "everyone knows compliance, everyone upholds
The Company adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implements
compliance." During the reporting period, the Company organized studies on the newly revised Securities Law, Company Law, accounting stan-
the Party's principles and policies, gives full play to the political leadership role of the Party organization in corporate governance, and continu-
dards, and other relevant industry policies.
ously promotes the deep integration of Party building and enterprise governance. The Company consistently strengthens the leading role of the
Party organization in decision-making, execution, supervision, and other areas, encourages Party members to play a vanguard and exemplary
role based on their positions, and transforms the advantages of Party building into developmental strengths and governance ef?cacy.
Upholding Business Ethics
Meanwhile, the Company continuously strengthens Party member education and training, as well as the development of Party conduct, integrity,
Luen Mei Quantum consistently adheres to the principles of integrity in operations, clean conduct, and fair competition, viewing the development
and anti-corruption efforts, fostering a clean and upright operational environment. During the reporting period, adhering to the requirements for
of business ethics as crucial support for stable operations and sustainable development. The Company holds itself to high standards of busi-
full and rigorous Party self-governance, the Company continuously carried out inspections on Party conduct, integrity, and anti-corruption,
ness ethics, continuously improves management mechanisms against commercial bribery, corruption, and unfair competition, and promotes a
implementing the requirements of "no forbidden zones, full coverage, and zero tolerance." It advanced anti-corruption efforts through methods
clean, upright, standardized, and transparent business environment.
such as special inspections and routine checks. The Company established integrity reporting channels in procurement and bidding processes,
with internal control departments participating in the supervision of key stages. If illegal or non-compliant activities are discovered, the Company
will handle them seriously in accordance with laws and regulations, effectively maintaining an open, fair, and just operational order. The Company
Anti-Commercial Bribery and Anti-Corruption
commits to conducting rigorous investigations into bidding projects. Any project found to have issues will have its bidding process suspended or The Company strictly complies with the requirements of laws and regulations such as the Criminal Law of the People's Republic of China. It has
its winning result canceled upon veri?cation of the report. established relevant internal control systems and implements regular reviews of commercial bribery and corruption risks through special inspec-
tions, routine checks, whistleblower hotlines, and email reporting, maintaining a ?rm "zero tolerance" attitude towards such illegal and non-com-
pliant activities.
The Company places emphasis on protecting the legitimate rights and interests of whistleblowers,
Business Compliance Management establishing a reporting protection mechanism to ensure unobstructed complaint channels and
standardized handling procedures. At the same time, the Company continuously strengthens edu-
Luen Mei Quantum has continuously strengthened the construction of its internal control and compliance management system, and consistently cation on integrity in professional conduct, urging all employees to strictly abide by laws, regula-
improved its risk prevention and law-based governance capabilities. The Company insists on closely integrating legal development with opera- tions, industry standards, company policies, and professional ethics, fostering a professional
tional management, focuses on cultivating a compliance culture, and gradually establishes a multi-layered compliance management system ethos of integrity, self-discipline, diligence, and responsibility. It also clearly communicates
covering institutional development, process control, business execution, and supervision and evaluation, ensuring that all production and opera- anti-bribery and anti-fraud requirements to suppliers, agents, and ecosystem partners, jointly
tional activities are conducted in accordance with laws and regulations. maintaining a healthy and orderly business ecosystem.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Establishing Rules for Sound Governance and Stability
During the reporting period During the reporting period
Proportion of directors receiving training on anti-commercial bribery and anti-corruption: 50% the Company completed one pro?t distribution distributing a cumulative cash dividend of RMB 0.2
per share (tax inclusive).
Proportion of management personnel receiving training on anti-commercial bribery and anti-cor-
ruption: 100% The Company adheres to the principles of open, transparent, true, accurate, complete, timely, and fair information disclosure. In accordance with
laws and regulations such as the Securities Law of the People's Republic of China, the Company Law of the People's Republic of China, and the
The proportion of employees receiving training on anti-commercial bribery and anti-corruption:
Rules Governing the Listing of Stocks on Shanghai Stock Exchange, the Company has established and consistently implements the Information
legitimate rights and interests of the Company, investors, creditors, and other stakeholders.
Anti-Unfair Competition
During the reporting period
The Company strictly complies with relevant provisions of the Anti-Unfair Competition Law of the People's Republic of China and the Anti-Monopo-
ly Law of the People's Republic of China. Through measures such as establishing and improving internal management systems, strengthening
employee ethics training, and setting up specialized supervision mechanisms, the Company ensures that all business activities are legal and the Company completed all information disclosure tasks including 4 periodic reports and
compliant, maintains a healthy and orderly market environment, resolutely prevents any form of unfair competition, and contributes to building a in compliance with regulations and on schedule, issuing a
market ecosystem characterized by sound competition.
total of 109 announcement documents
During the reporting period, the Company did not face any lawsuits or major administrative penalties resulting from unfair competition practices.
The Company places high importance on investor relations management. It has established an Investor Relations Management System and
Protecting Investor Rights and Interests
maintains close communication with investors through multiple channels such as general meetings, performance brie?ngs, on-site research,
telephone inquiries, and the SSE E-Interaction platform. The Company continuously improves the timeliness, relevance, and effectiveness of
communication, striving to build a harmonious and mutually trusting relationship between the Company and its investors.
Luen Mei Quantum adheres to the principle of being investor-oriented, focusing on balancing short-term returns with long-term value creation.
Through measures such as standardizing information disclosure, strengthening investor communication, and continuously rewarding sharehold-
ers, the Company consistently enhances capital market transparency and investor trust.
Relying on the stable operation of its clean heating, integrated energy, and related businesses, the Company continuously solidi?es its pro?tability
and cash flow foundation. It actively rewards investors through methods like cash dividends and share repurchases, consistently ful?lling its Performance Brie?ngs Telephone Inquiries
responsibility and commitment to investors through practical actions.
Held 2 performance brie?ngs throughout 2025, Received over 300 daily telephone inquiries from
actively responding to various questions from investors in total.
investors.
On-site Research by Institutional Investors SSE E-Interaction Platform
Received institutional investors for on-site research Utilized the SSE E-Interaction platform to actively
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Caring for Ecology, Nurturing All Life
Caring for Ecology
Nurturing All Life
As a pioneer in the domestic clean heating ?eld and an integrated energy service provider, Luen Mei Quantum actively
responds to the national "dual carbon" strategy, consistently adheres to the development philosophy of "Clean, Ef?cient,
Smart, and Low-carbon", and continuously advances green transformation and environmental management capacity
building. Focusing on key areas such as climate change response, environmental governance, improvement of resource
utilization ef?ciency, and exploration of clean energy, the Company constantly optimizes production methods and
energy structures, striving to build a new, clean, and smart energy system characterized by multi-energy complementar-
ity and synergistic ef?ciency. While ensuring people's livelihood heating, the Company continuously reduces its environ-
mental impact, promoting the coordinated progress of enterprise development and ecological protection.
Responding to United Nations Sustainable Development Goals (SDGs):
Chapter topics
Climate Change Response 25
Strengthening Environmental Management 29
Optimizing Resource Utilization 32
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Caring for Ecology, Nurturing All Life
Climate Change Response Risk Type Description Impact Period Financial Impacts Countermeasures
Increase investment in infra-
Climate change has become a signi?cant issue affecting global economic and social development and a key challenge facing the energy indus- Temperature is a key factor affecting
structure upgrades and
the performance of heating enterpris- Increased operating
try. Luen Mei Quantum attaches great importance to the risks and opportunities that climate change brings to business operations, infrastruc- Acute Short-term, retro?ts to enhance its
Physical risks
es. Sudden extreme weather during costs and decreased
ture functioning, and long-term development. Following the requirements of the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation risks the heating season directly impacts
medium-term
operating revenue
defensive capability against
sudden extreme weather
of Listed Companies — Sustainability Report (Trial), the Company comprehensively enhances its capability to address climate change across gov- the Company's performance
events
ernance, strategy, risk management, and indicators & targets.
Drought or humid weather leads to
Strengthen daily mainte-
Chronic equipment damage or increased the Medium-term, Increase in operating
nance and upkeep of equip-
risks dif?culty of operation and mainte- long-term costs
Climate-related Governance nance
ment and facilities
The Company incorporates climate change response into its sustainable development governance framework. Relying on the Board of Directors,
the ESG coordination group, and ESG working groups, the Company has established a climate-related governance mechanism. It continuously Environmental protection investment
strengthens the identi?cation, analysis, response, and tracking management of climate-related issues, promoting the deep integration of climate and operation are signi?cant compo-
change response with operational management. For more details on the governance structure, please refer to the "ESG Management Structure" nents of production for heating enter- national, and local regula-
prises. The Company's current envi- Increase in tions to ensure company
section of the report.
ronmental facilities and operations operations comply with the
Policy and production costs
fully comply with national standards Medium term latest environmental poli-
legal risks and emission requirements. However, Increase in operating cies and legal require-
the gradual increase in national envi- costs ments, avoiding penalties
ronmental standards will add pressure and litigation
Climate-related Strategies on the Company's environmental
Transition risks
investment and operational costs.
Considering industry characteristics and business layout, the Company identi?es and assesses current and potential future climate-related risks
and opportunities. Targeted response measures are formulated for different risk types to enhance corporate resilience and adaptability, mitigat-
To address climate change, the Com- Increase investment in green
ing their impact on the Company's business.
pany needs to adopt more advanced technology R&D, actively seek
Technical and environmentally friendly produc- Increase in R&D partnerships, establish innova-
Long term
risks tion technologies and equipment, costs tion mechanisms, and acceler-
requiring increased technological ate the application and promo-
innovation efforts tion of new technologies
The centralized heating industry in
China is developing towards cleaner
solutions. Customers tend to prefer
more low-carbon, low-power-con- Reduce environmental impact
Market sumption products. If the Company Decline in operating by adopting clean energy,
Medium term
risks fails to meet customer requirements income promoting low-carbon technol-
in sustainable performance aspects ogies, and other means
like energy saving and consumption
reduction, it may face the risk of
customer attrition.
Opportunity type Description Impact Period Financial Impacts Countermeasures
The rising tide of addressing climate Actively advance the improve-
change is driving the emergence of ment of clean technology
Market Increase in operating
clean energy and other related ?elds, Medium term processes to enhance the
opportunities bringing even greater market demand to
income
market competitiveness of the
the Company. Company's products
By promoting the transition to low-car- Optimize energy utilization
bon, ef ?cient production methods, ef?ciency, conduct regular
Resource Short-term, Decrease in
energy consumption can be reduced energy ef?ciency assessments,
ef?ciency and ef?ciency improved
medium-term operating costs
and raise employee awareness
of resource utilization
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Caring for Ecology, Nurturing All Life
Notes
Indicators Unit 2025
Impact period: Short-term is within 1 year (inclusive) after the end of the Company's sustainability reporting period, medi-
um-term is 1-5 years (inclusive), and long-term is more than 5 years. Direct GHG emissions (Scope 1) Million tons of carbon dioxide equivalent 2.64
Indirect GHG emissions (Scope 2) Million tons of carbon dioxide equivalent 0.04
Total GHG emissions (Scope 1+ Scope 2) Million tons of carbon dioxide equivalent 2.68
Climate-related Impacts, Risks and Opportunities Management
The Company strengthens the management of climate risks and opportunities. It has established standardized processes for climate risk identi- Notes
?cation, assessment, and response, and makes timely adjustments based on its own business characteristics and changes in internal and exter-
nal environments, continuously enhancing its risk management capabilities in addressing climate change. Calculation basis: Luen Mei Quantum has accounted its carbon emissions in accordance with the Guide-
lines on Enterprises Greenhouse Gas Emissions Accounting and Reporting — Power Generation Facilities
issued by the Ministry of Ecology and Environment, along with other relevant standards or technical speci-
?cations. The Company's emission facilities include boilers, gas turbines, and power generation equipment
purchased. The carbon emission accounting was carried out by the operational control approach and using
factors set forth in standards such as the Announcement on the Release of 2022 Power Sector CO2 Emission
Factors jointly published by the Ministry of Ecology and Environment and the National Bureau of Statistics.
Risk Risk Risk
identi?cation assessment control
Greenhouse gas emission reduction
The Company establishes and improves its carbon emission management system, re?nes the carbon emission management framework,
promotes low-carbon technology innovation and the implementation of low-carbon projects, and effectively controls total carbon emissions and
Comprehensively analyze the current For the identi?ed climate risks, com- For control measures formulated for
intensity. The Company integrates digital technologies and applies the latest energy technologies and equipment. While further enhancing
environmental conditions, domestic prehensively evaluate their potential identi?ed and assessed risks, the
the ef?ciency of urban central heating systems, it vigorously develops distributed clean energy technologies and equipment. It continuously
and international policies and regula- impacts on the Company's income, relevant departments shall be
conducts deep-level, multi-dimensional energy-saving and emission reduction retro?ts for heat sources, constantly achieving cleaner
tions, industry characteristics, and cost and assets from the dimensions responsible for the implementation of
upgrades at the source.
stakeholder demands, and identify of impact period and impact degree, targeted control measures
potential climate-related risks based and adjust the priority of climate
on the Company's actual situation change risk management according In terms of the heat source end In terms of the operational end
to the evaluation results
the Company is committed to promoting the Company installs and optimizes online monitoring
environmental retro?ts for heat source plants systems, using smart operation platforms to conduct
to achieve ultra-low emission standards, real-time data monitoring, precise adjustment, and
minimizing the environmental impact of heat optimized con?guration of heat sources and
sources. networks, striving to minimize operational-end
emissions.
Climate-related Indicators and Goals
Meanwhile, building on the great success of the pilot dual-circulation fluidized bed boiler project, it continuously advances retro?ts of other
Climate Goals of Luen Mei Quantum
projects, further improving boiler ef?ciency, reducing coal consumption, thereby promoting energy conservation and emission reduction.
Guided by "green development, scienti?c and technological innovation, clean energy supply", the Company
has continuously upgraded its heat source and heating network projects through methods such as inde-
pendent R&D, cooperative introduction, and technological transformation. It continuously improves the
energy ef?ciency of heat source and network projects, promotes the application of green and low-carbon
During the reporting period
technologies, reduces greenhouse gas emission intensity, and contributes to achieving the national "dual
carbon" goals.
the Company achieved a greenhouse gas emission reduction of 101170.23 tonnes of carbon dioxide equivalent.
During the reporting period, the Company ful?lled its carbon emission obligations, with no instances
requiring recti?cation or investigation by relevant authorities.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Caring for Ecology, Nurturing All Life
Strengthening Environmental Management Environmental Strategies
Luen Mei Quantum insists on integrating ecological and environmental protection throughout the entire production and operation process. It Recognizing the regulatory, operational, and environmental risks that may arise from improper
strictly complies with national and local environmental laws and regulations, continuously improves environmental management systems, risk management of pollutants and waste, the Company continuously identi?es potential risks in
prevention and control mechanisms, and pollution control measures. The Company strives to minimize the environmental impact of its produc- environmental management links and formulates targeted response measures. During the
tion activities, ensuring strict adherence to environmental compliance requirements at every stage of production, and contributing to environ- reporting period, the Company did not incur any administrative penalties for environmental inci-
mental protection and sustainable development through practical actions. dents or criminal liability involving environmental issues.
Environmental Governance
The Company places great importance on ecological and environmental protection, considering the improvement of environmental management
mechanisms a top priority in its environmental work, striving to minimize the environmental impact of its production and operational activities.
The Company strictly abides by national and local environmental protection laws, regulations and standards such as Environmental Protection
Policy risks Market risks Chemical risks
Law of the People's Republic of China, Law of the People's Republic of China on Environmental Impact Assessment, Law of the People's Republic of
China on the Prevention and Control of Atmospheric Pollution, the State Council's Opinions on Strengthening Key Work of Environmental Protection,
Regulations on the Administration of Construction Project Environmental Protection, Emission Standard of Air Pollutants for Thermal Power Plants,
and Emission Standard of Air Pollutants for Boilers, etc., and has formulated the Environmental Protection Management Measures of Luen Mei Quan-
tum and the Environmental Protection Responsibility System, clarifying the general requirements of the Company on environmental protection. The Description Description Description
Board of Directors is responsible for supervising the implementation of the environmental protection work of the functional departments at each
level in the headquarters. Subsidiaries ful?ll the primary responsibility for environmental protection, and primary-level units ensure the imple- As the government strengthens the As the public pays more attention The chemical substances used in
mentation of environmental protection measures. This constructs a three-tier environmental protection management system of decision-making standards of waste water, waste gas to water safety and air quality, equipment operations, such as
and deployment, supervision and management, and organizational implementation, implementing a vertically graded management structure. discharge and waste treatment, the enterprises with high pollution and ammonia water, can cause irritation
Company needs to invest more money high emissions will lose their and corrosion to the human body. If
to upgrade technology and control market competitiveness safety management is inadequate
pollution discharge during storage and usage, leaks are
Responsible for overall company procurement and management of materials, cost
Horgos Luen Mei likely to occur, potentially leading to
management, engineering management, etc. Screens suppliers of environmental
Engineering Technolo- protection facilities and related material/equipment/services, and manages environ- environmental incidents
gy Co., Ltd. mental protection companies
Headquarters level
Responsible for data tracking, collection, and analysis of various operational stages
Impact Period Impact Period Impact Period
Operation Management
including raw materials, boilers, pipe networks, and end-users; monitors daily envi-
Department ronmental protection data.
Short-term, medium-term Long term Short-term
Luen Mei Smart Energy Explores and researches the application of new environmental protection technolo- Financial Impacts Financial Impacts Financial Impacts
Technology (Shenyang) gies in the company's business areas; responsible for directing the implementation of
Co., Ltd. heating projects and providing technical support for integrated energy business. Increase in operating costs Decline in operating income Increase in operating costs
Monitors environmental protection work and the operation of environmental protec-
Inspection Department tion facilities; coordinates environmental protection-related affairs among various Countermeasures Countermeasures Countermeasures
functional departments.
The Company pays close attention to and Monitor and manage all kinds of pollution The Company has formulated the Emer-
strictly abides by the relevant laws and emissions, and regularly entrust quali?ed gency Plan for Sudden Environmental
regulations on pollutants and wastes in third-party testing units for testing, so as Incidents, specifying requirements for the
Based on the environmental protection management system at the headquarters
company level
time to ensure that its production and promptly identify and address potential emergency command organization and
level, formulate their own company's environmental protection management system;
Various departments emissions meet the latest environmental pollution risks; At the same time, actively its responsibilities, prevention and early
Subsidiary
cooperate with local environmental protection administrative departments; responsi-
like Production Tech- policies and regulations introduce green and low-carbon technol- warning, information reporting, emergen-
ble for the operation, management, and maintenance of their company's environmen-
nology Department, ogies to reduce the emissions generated cy response, post-incident handling and
tal protection facilities, initiation and construction supervision of major repairs, tech-
Operations Depart- nical renovations, and new projects for environmental facilities, testing of environ-
by production other work requirements for sudden envi-
ment, etc., of each ronmental pollution incidents, as well as
mental materials, recording and statistics of emission status and facility operation,
regular training and drills for emergency
subsidiary ensuring normal, safe, stable, and economical operation of environmental protection
plans
facilities.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Caring for Ecology, Nurturing All Life
Impact, Risk and Opportunity Management
Luen Mei Bioenergy's Boiler Denitri?cation Retro?t
The Company has formulated the Environmental Self-monitoring Plan according to the national standards, continuously strengthened the
management of environmental assessment and completion acceptance of the project, entrusted a quali?ed third party to carry out testing
During the reporting period, Luen Mei Quantum's subsidiary, Luen Mei
and input it into the self-monitoring system for publicity, and regularly identi?ed, evaluated and monitored the potential risks in production
Bioenergy, actively responded to the boiler management requirements for
and operation. At the same time, the Company reinforces the whole-process management of environmental factors through methods such
Case
biomass power plants issued by the Jiangsu Provincial Department of Ecol-
as environmental protection post responsibility systems, environmental safety operation procedures, operation record logs, and
ogy and Environment. It phased out the oxidative denitri?cation ultra-low
daily operation analysis, minimizing the negative environmental impact of production and operational activities.
emission process and adopted a combined ultra-low emission process of
in-furnace SNCR denitri?cation plus high-temperature, high-dust SCR
Indicators and Objectives denitri?cation.
The Company intends to progressively increase its ?nancial commitment to environmental protection focusing on several key areas, including
pollution control, the acquisition of advanced environmental monitoring equipment, and the research and development of new environmental
technologies, so as to maximize the elimination of "three wastes" (wastewater, waste gas, and solid waste) during the production process, strictly
control pollution, ensure that any remaining wastewater and exhaust gases meet emission standards, and manage waste disposal appropriately,
thereby preventing any sudden major environmental incidents.
Waste Management
"Three Wastes" Management Measures The Company is resolute in preventing and controlling environmental pollution
The Company has invested heavily in the installation of environmental protection equipment. Over the years, it has continuously invested in from solid waste, implementing centralized collection and management of waste.
technology updating and equipment transformation, and is committed to providing quality services to users in an innovative, energy-saving, The main types of solid waste generated during the Company's production and
environmentally-friendly and low-emission operation mode, and constantly strictly managing wastewater, waste gas and solid waste. operation are pulverized coal ash, ?lter residue, and desulfurization gypsum from
boilers. These are all handed over to quali?ed third parties with disposal capabili-
During the reporting period, the Company and its subsidiaries have strictly complied with the pollutant emission concentration limits established ties for off-site treatment. An industrial solid waste report is issued, and a Solid
by environmental protection authorities. There have been no signi?cant adverse effects on employees, local community residents, or the Waste Disposal Contract and Solid Waste Evaluation Filing are formed.
environment due to the Company's pollutant emissions. Additionally, the Company has not faced any major administrative penalties or criminal
liabilities. For more details about pollution discharge, please refer to our "2025 Annual Report".
Wastewater Management
The Company implements separate drainage systems for rainwater and sewage, establishing dedicated pipe networks. Domestic sewage flows Optimizing Resources Utilization
into municipal sewage networks for centralized treatment at sewage treatment plants. Industrial wastewater discharge outlets are established
Luen Mei Quantum continuously advances resource conservation and recycling. Focusing on key areas such as energy, water resources, and
in accordance with laws, administrative regulations, and provisions of the competent environmental protection department under the State
clean energy utilization, the Company improves resource use ef?ciency and promotes green, low-carbon operations through technological
Council. Industrial wastewater containing toxic and harmful water pollutants is collected and treated separately, and is discharged only after
upgrades, digital management, and recycling measures. While vigorously promoting energy saving and ef?ciency gains, the Company strength-
meeting the treatment process requirements of centralized treatment facilities, ensuring that industrial wastewater does not enter rivers or
ens water resource management and enhances the recycling rate of resources, truly achieving the goal of "providing the best heat with the least
groundwater via sewer pipes. Quali?ed third-party agencies are regularly commissioned to conduct environmental monitoring of wastewater
resources." In 2025, the Company continued its efforts in clean energy application and resource ef?ciency improvement, with total biomass
discharge outlets.
power generation reaching 89.966 million kilowatt-hours.
Waste Gas Management
The Company complies with the requirements for total emission control of key air pollutants. It establishes air pollutant discharge outlets in
accordance with laws, regulations, and provisions of the competent environmental protection department under the State Council. For
Biomass Clean Energy Supply Empowers Taizhou Industrial Park
production and service activities generating waste gas containing volatile organic compounds, pollution prevention and control facilities are
installed and used as stipulated. Measures such as containment, screening, covering, cleaning, and sprinkling are taken to reduce dust and During the reporting period, Luen Mei Bioenergy consumed approximately 300,000 tons of
gaseous pollutants generated during the storage, transfer, and handling of internal materials. For activities producing odorous gases, reasonable agricultural and forestry waste annually, generating about 100 million kilowatt-hours of elec-
Case
protective distances are maintained, and puri?cation devices are installed. Daily spot checks are conducted on waste gas treatment facilities, tricity and supplying about 500,000 tons of steam externally. It provided professional central-
and quali?ed third-party agencies are commissioned for regular environmental monitoring of waste gas discharge outlets. ized heating services for the Taizhou Economic Development Zone and the Pharmaceutical
Industrial Park, replacing 100,000 tons of standard coal equivalent, reducing carbon dioxide
The Company continuously implements technological upgrades and retro?ts. It employs low-nitrogen combustion technology, as well as
emissions by 270,000 tons. This made a signi?cant contribution to the comprehensive utili-
Selective Non-Catalytic Reduction (SNCR) and Selective Catalytic Reduction (SCR) flue gas denitri?cation systems to control nitrogen oxide
zation of agricultural and forestry waste in Taizhou, playing a positive role in promoting and
emissions. Meanwhile, electrostatic bag dust removers and fabric ?lter dust removers are used to control particulate matter. Methods such as
demonstrating Taizhou's economic development and environmental protection.
in-furnace calcium injection, limestone-gypsum wet scrubbing, magnesium oxide wet scrubbing, slaked lime-sodium carbonate dual-alkali
method, and circulating fluidized bed flue gas desulfurization systems are used to control sulfur dioxide emissions.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Caring for Ecology, Nurturing All Life
Energy Saving, Consumption Reduction, and Ef?ciency Improvement
During the reporting period
Heating, as a crucial people's livelihood industry, is also a major energy consumer. The Action Plan for Carbon Peaking Before 2030 issued by the
State Council explicitly states the need to adhere to safe carbon reduction, vigorously implement renewable energy substitution under the prem-
ise of ensuring energy security, and accelerate the construction of a clean, low-carbon, safe, and ef?cient energy system. Total water consumption: 4,697,182.42 tons
The Company regards energy-saving retro?ts as an important means to improve energy ef?ciency. On one hand, it continuously tracks industry
trends in equipment updates and energy-saving technologies; on the other hand, it thoroughly investigates potential for energy savings in the
production process. Through measures such as phasing out high-energy-consuming equipment, introducing energy-saving technologies and
energy management systems, and optimizing production processes, the Company achieves ef?cient energy utilization. As of the end of the Resource Recycling
reporting period, the Company's clean heating rate reached 100%.
Driven by the dual engines of digital transformation and resource circularity, Luen Mei Quantum systematically promotes resource recycling. The
Company prioritizes the use of renewable and recyclable eco-friendly materials to facilitate ef?cient resource utilization and environmental
protection, achieving a dual enhancement in operational ef?ciency and environmental bene?ts.
Technological Retro?ts Driving Energy Conservation and Consumption Reduction
In production, the Company's heat source plants repurpose chemical wastewater and boiler blowdown for ash flushing or flue gas desulfuriza-
Guohui New Energy, a subsidiary of Luen Mei Quantum, completed the retro?t project for Boiler 1# in 2025, drawing on expe- tion (FGD) drainage treatment. Wastewater from ash flushing is discharged into sedimentation tanks for settling, after which the supernatant is
rience from energy-saving technological upgrades in 2024. Prior to the retro?t, the boiler ef?ciency of Boiler 1# was 79.81%, reused for further flushing. For FGD drainage, the Company employs the double-alkali method, spraying water mist (mixed with alkali solution)
Case
which increased to 88.09% post-upgrade. It is estimated that during the 2025-2026 heating period, the heat output of Boiler within the desulfurization tower. This generates 1,300 t/d of desulfurization wastewater, which is processed through sedimentation to allow the
ing to a cost reduction of RMB 2,323,600.
During the reporting period
During the reporting period Recycled computers: Reused toner cartridges: Total volume of recycled water : Proportion of recycled water
Coal consumption: Lique?ed petroleum gas (LPG) consumption: Electricity consumption: 8.71%
Exploring Clean Energy
Diesel consumption: Gasoline consumption: Total purchased heat:
energy service provider. The Company is steadily strengthening its clean heating business, continuously increasing the proportion of clean
energy within its overall energy structure. Furthermore, it is actively exploring the application of clean energy technologies such as hydrogen and
photovoltaics (PV), promoting the localized implementation of hydrogen energy.
Promoting Water Conservation
Additionally, the Company explores renewable energy technologies like PV to further expand its clean energy footprint. By utilizing approximately
Luen Mei Quantum manages water withdrawal and sewage treatment in strict accordance with the Water Law of the People's Republic of China, 910 m2 of the main of?ce building's rooftop, the Company constructed a distributed rooftop PV power station with an installed capacity of 30.8
striving to reduce wastewater discharge and improve water resource utilization ef?ciency. Simultaneously, the Company actively advocates for kWh. During the reporting period, the station generated a total of 34,217.564 kWh of electricity, opening up new horizons for green development.
water-saving behaviors by posting water conservation signs in of?ces and engineering sites, encouraging employees to save water in their daily
work, and strengthening their conservation awareness.
Regarding breakthroughs in core technologies, the "Heat Pump Self-Cleaning Technology" independently developed by Guohui New Energy utiliz-
es dynamic water-source heat pumps to recover waste heat from reclaimed water and residual heat for centralized heating. This process is a
domestic pioneer and has reached an internationally leading level, delivering signi?cant environmental bene?ts. Due to its innovativeness and
demonstrative value, the project was listed as a Demonstration Project by the Ministry of Housing and Urban-Rural Development, fully reflecting
the Company's technical leadership in clean heating and resource recycling.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Connecting Households and Sharing Harmony
Connecting Households
and Sharing Harmony
With over 20 years of profound expertise in integrated energy services, Luen Mei Quantum consistently adheres
to its core philosophy of "Connecting to the Future, Making Life Beautiful". The Company integrates a sense of
responsibility into the entire process of corporate development. While ensuring heating for people's livelihoods,
driving green transformation, and enhancing service quality, the Company continues to create sustained social
value. During the reporting period, the Company deepened its sustainability practices across key areas, including
technological innovation, quality management, customer service, supply chain synergy, employee development,
and social responsibility, striving to achieve a positive interaction between corporate growth and social sharing,
employee advancement, and community co-construction.
Responding to United Nations Sustainable Development Goals (SDGs):
Chapter topics
Driving Transformation Through Innovation 37
Upholding Excellence in Quality Control 38
Enhancing Service Experience 41
Cultivating a Sustainable Supply Chain 42
Safeguarding Employee Rights and Well-being 43
Advancing Social Harmony and Community Co-construction 53
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Connecting Households and Sharing Harmony
Driving Transformation Through Innovation Upholding Excellence in Quality Control
Against the backdrop of the deepening green and low-carbon transition, Luen Mei Quantum adheres to technological innovation as its core driv- Luen Mei Quantum regards quality as the cornerstone of corporate survival and development. Adhering to the principle of "quality ?rst as a cen-
ing force. The Company consistently advances the construction of smart heating systems, the integration of multi-energy complementary tech- tury-old foundation", the Company consistently re?nes its quality management system and risk prevention mechanisms. By establishing robust
nologies, and full-process digital control. By accelerating the development of a low-carbon, ef?cient, and intelligent energy operation system, the quality governance structures, the Company identi?es quality-related impacts, risks, and opportunities while benchmarking against international
Company actively fosters and develops new quality productive forces. Focusing on the intelligent operation of energy supply, the Company sys- advanced management systems. Furthermore, the Company actively leads or participates in the formulation of industry standards to drive quali-
tematically promotes a green and low-carbon transition through multi-dimensional digital and intelligent means. During the reporting period, the ty upgrades and sustainable development within the sector.
Company established and stabilized a smart operation platform, prioritizing the development and application of smart heating platforms, indoor
temperature collection modules, and secondary heating network pole-mounted temperature monitoring modules to enhance energy ef?ciency
and precision management through technological integration. Quality Governance
The Company maintains strong competitiveness in R&D and technological innovation, supported by platforms such as high-tech enterprise The Company strictly complies with the Product Quality Law of the People's Republic of China, the Metrology Law of the People's Republic of China,
status, and municipal enterprise technology centers. These platforms have facilitated a robust technological innovation mechanism. During the and the Standardization Law of the People's Republic of China, among other regulations. The Company has established internal policies such as
reporting period, no incidents involving violations of scienti?c and technological ethics occurred. the Administrative Regulations on Quality Inspection of Equipment and Materials and the Administrative Measures for Sampling and Testing of
Environmental Protection Materials. The Technical Renovation Committee of "Three Repairs" is responsible for operational planning and target
setting, while the Quality Inspection Department oversees daily quality management and the periodic identi?cation of quality-related impacts,
risks and opportunities. Luen Mei Quantum requires all eligible subsidiaries to obtain and maintain quality management system certi?cations. As
Low-Carbon Distributed Heating Project Empowering the of the end of the reporting period, 100% of the Company's eligible operating subsidiaries have passed the quality management system certi?ca-
Boguan High-Speed Railway Hub tion and maintain effective operations.
In response to the imperative of green and low-carbon development, Luen Mei Quantum successfully implemented the inte-
grated energy service project for the Boguan Station of the Shenyang-Baihe High-Speed Railway. Currently, the project is
Quality Strategy
Case
fully completed and provides stable, clean heating for this new urban hub during the 2025-2026 heating season. The
Boguan Station project represents a successful migration and precise replication of the Company's accumulated expertise The Company consistently attaches great importance to quality and safety control, strictly managing potential adverse impacts and risks, such
in renewable energy applications to broader and more flexible distributed energy scenarios. This achievement signi?es a as the aging of network equipment and construction quality, that may affect current and expected ?nancial conditions in the short, medium, and
signi?cant addition to Luen Mei Quantum's technical toolkit for integrated energy services, tailored to meet the demands of long term. To address these impacts and risks.
a new era.
regarding pipeline equipment Regarding construction quality
the Company strives to adopt high-quality new materials the Company continuously optimizes its material and engi-
during the construction and renewal of networks, while neering management systems, implementing key supervi-
strengthening the maintenance and upkeep of existing sion over new heat sources, primary networks, heat
networks and equipment to extend their service life and exchange stations, large-scale secondary networks, as well
control maintenance and renewal costs. as boiler "three repairs" projects, specialized environmental
engineering, major boiler overhauls, furnace insulation and
lining, and large-scale riser pipe modi?cations.
During the reporting period R&D Expenses: RMB 44408944.56 Impact, Risk and Opportunity Management
As of the end of the reporting period: Total granted patents: 87 , including: The Company has established a comprehensive product quality management system. Based on the requirements of the product quality manage-
ment system and the internal business and management architecture, the Company updates its policies annually to ensure alignment with actual
management needs and effectively promote the continuous improvement of product safety management quality. The Company has formulated and
Invention patents: Utility models: Software copyrights: R&D projects in progress:
continuously refined systems such as the Measures for Engineering Quality Management (Trial), the Measures for Acceptance Management of Heat
sures for Construction Management of Secondary Network and Heat Exchange Station Projects (Trial) to identify and assess short, medium, and
long-term impacts and risks.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Connecting Households and Sharing Harmony
Quality Control Initiatives
Material quality management for delivered equipment According to the Company's long-term strategic development plan, and to promote the institutionalized and
standardized development of business, prevent quality risks, unify technical requirements, and ensure controllable
The Company conducts inspections of bulk materials and key components for heat source construction and
quality and costs, the Company has fully interpreted relevant national standards and speci?cations. After multiple
primary network projects to ensure material quality and prevent potential short-term, medium-term, and
discussions, comparisons, and optimizations of the standards originally adopted by subsidiaries, the Company
long-term risks.
reached a consensus and formulated and continuously updated its enterprise quality and technical standard
system. This system covers dimensions such as equipment, materials, engineering, and testing, including 12
Standardization
Leadership Luen Mei Quantum enterprise standards. In 2025, the Company continued to organize subsidiaries at all levels
Engineering quality management Heating management to carry out training and publicity on enterprise technical standards, strictly implemented quality standards,
and uni?ed the Company's technical requirements, laying a solid foundation for the improvement of product
he Company performs on-site audits of projects The Company strictly prevents unauthorized con- quality.
initiated by member companies to prevent poten- nections, strengthens statistical data analysis, and
tial quality risks at construction sites. enforces strict inspection and reporting proce-
dures to ensure the coverage rate of inspections The Company consistently strengthens quality inspections in equipment delivery, construction sites, and
and the con?rmation rate of valves. heating management stages to promptly identify and rectify problems, plug quality loopholes, and ensure
that materials used meet quali?ed standards, with returns, exchanges, and penalties for non-conforming
products. The Company has strengthened the management of coal chemical testing to ensure that testing
data is timely and accurate, providing a reliable basis for controlling the quality of incoming coal and the
Company's scienti?c and ef?cient operation. Furthermore, the Company has intensi?ed inspections of
Indicators and Targets Quality
Penalties unauthorized connections to crack down on illegal network access, protecting the legitimate rights and
The Company sets quality-related indicators and targets in accordance with the 2025-2026 Production and Operation Plan. interests of heat users and improving urban heating quality. During the reporting period, the Company
conducted over 1,000 qualit y inspections, achieving a 100% recti?cation rate for qualit y hazards
and issues. No major quality accidents occurred.
During the reporting period
Quality Penalty Procedure
Core indicator 2025 targets Completion in 2025
The Quality Inspection Relevant departments The Quality Inspection The non-compliant
Achieve 100% inspection coverage for
Department issues an and leadership sign and Department issues a entity completes
Quality Centralized bulk materials and key components in Completed 315 batches of on-site physical
management of planning and inspection report and approve the authoriza- penalty notice to the recti?cations and
strict material heat source construction and primary inspections of equipment and materials and
equipment and penalty recommendations. tion form. non-compliant entity. pays the ?ne.
quality control network projects, with random inspec-
materials 42 third-party laboratory tests.
tions for other components.
Veri?ed, con?rmed, supervised, and managed a
total of286 projects, including new construc-
Conduct on-site audits for projects tion, technical renovation of "three repairs" for
heat sources, primary and secondary networks,
Planning initiated by member companies.
and heat exchange stations.
management
Supervise the commencement, prog-
As of January 11 , signed and con?rmed
and process
management ress, process inspection, and ?nal
acceptance of engineering projects. well as 198 documents covering warranty
acceptance, physical progress, and contract
On-site ful?llment.
management
Strengthen the management of engi-
Engineering neering quality to achieve construction
quality quality targets and ensure that engi- Conducted 649 on-site inspections in total.
control
neering quality remains in a "controlla-
ble and under-control" state.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Connecting Households and Sharing Harmony
Enhancing Service Experience Data Security and Customer Privacy Protection
The Company continuously strengthens its information security management and customer privacy protection systems, strictly complying with
Luen Mei Quantum strictly complies with the Law of the People's Republic of China on the Protection of Consumer Rights and Interests. Adhering to
the Cybersecurity Law of the People's Republic of China, the Data Security Law of the People's Republic of China, and the Personal Information
a service philosophy of "customer-centricity and market orientation", the Company continuously re?nes its service systems, optimizes service
Protection Law of the People's Republic of China. The Company has formulated approval processes for data and document access. Specialized
workflows, and improves service ef?ciency to provide users with timely, professional, and considerate heating services.
system data is managed by dedicated personnel, and all access permissions are strictly controlled to prevent the leakage of data and customer
privacy. On the user side, customers must present valid identi?cation to inquire about outstanding fees, suspension of supply, or contact infor-
Streamlining Service Response Channels mation. Without consent, the Company does not disclose customer information to any third party. During the reporting period, no data security
The Company has constructed a multi-dimensional "online + offline" grievance handling system. By integrating the heating grievance system, the incidents or customer privacy breaches occurred.
"12345" Citizen Hotline, heating service hotlines, the "366 e-Life" platform, community grid member coordination, and on-site visits, the Company
ensures comprehensive coverage for receiving user heating requests. During the reporting period, a total of 41,000 heating-related requests
(including inquiries, repairs, and complaints) were processed, primarily focused on four categories: sub-standard indoor temperatures, pipeline
leakage, insuf?cient radiator heat, and heating facility failures. To enhance response ef?ciency, the Company operates a 24-hour heating service
Cultivating a Sustainable Supply Chain
hotline with dedicated staff and has dispatched personnel to the "12345" Citizen Hotline Center. This enables "one-click dispatch and precise Luen Mei Quantum strictly complies with the Tendering and Bidding Law of the People's Republic of China and relevant laws and regulations, con-
diversion" of requests, ensuring timely response and ef?cient handling of user grievances. sistently re?ning its supplier management system. During the supplier admission and management process, the Company focuses not only on
product and service quality but also integrates ESG factors, such as labor compliance, occupational health and safety, business ethics, and envi-
Establishing a Closed-Loop Processing Mechanism ronmental awareness, into its considerations. The Company is committed to driving the transmission of sustainability concepts throughout the
The Company has established a four-stage closed-loop mechanism consisting of "grievance supply chain, striving to build a green, responsible, and sustainable supply chain.
acceptance – classi?ed processing – supervision and feedback – follow-up evaluation". Under this
Complaint
framework, inquiries are answered immediately, repair requests are handled within set time limits,
Intake
and complaints undergo root-cause recti?cation. All requests are recorded in the system with Supply Chain Management System
de?ned processing deadlines and responsible entities to ensure that "every case is implemented Upholding the principles of responsible procurement, the Company continues to establish and improve a uni?ed,
Follow-up Sorting and
and every matter receives a response". Simultaneously, the Company implements a rapid response Survey Handling standardized, and transparent supplier management system. During the reporting period, the Company formulat-
mechanism of "minor repairs are completed within the same shift; major overhauls are ?nished ed and re?ned internal policies, including the Supplier Management and Admission System, the Administrative Mea-
Follow-up
within the day". Emergency repair teams are on standby 24/7, achieving a 98% on-site resolution sures for Tendering and Bidding and Procurement Regulations, and the Operational Measures for Negotiated Procure-
and
rate for common issues. For complex problems, the Company collaborates with communities to Reporting ment under the Tendering and Bidding Framework. These policies clarify management requirements for key stages
conduct on-site investigations and formulate "one household, one policy" recti?cation plans, such as supplier admission, tendering, and negotiated procurement. Simultaneously, the Quality Inspection
achieving a 100% recti?cation completion rate and effectively safeguarding the user experience. Department performs independent supervision over the compliance and deviations of the tendering process,
ensuring that all bidding and procurement activities follow the principles of unity, standardization, transparency,
and fairness, thereby continuously enhancing the institutionalization of supply chain management.
Optimizing User Experience
The Company prioritizes service capacity building. During the reporting period, the Company organized eight specialized training sessions for
heating customer service, covering over 200 attendances of customer service and heat exchange station personnel. These efforts effectively Supply Chain Management Initiatives
enhanced professional handling capabilities and service standardization, reducing the rate of secondary grievances. Meanwhile, through diverse The Company continuously improves its supplier management system by leveraging an online supplier management platform to enhance the
channels such as distributing convenience service cards, posting notice boards, utilizing neighborhood owner groups, and online platforms, the ef?ciency of data processing, online audits, and process management, achieving standardization and transparency across the entire supply
Company conducts heating publicity and popularizes heating knowledge, guiding users to standardized heating usage and self-resolution of chain. On the basis of ensuring compliance and contract ful?llment, the Company conducts supplier evaluations based on platform data, guiding
simple issues, continuously improving user satisfaction and the heating experience. In 2025, centering on the core demands of users during the suppliers to adhere to business ethics, ful?ll social responsibilities, and consistently improve their environmental and social performance. In the
heating period, by establishing mechanisms, strengthening supervision, optimizing services, and focusing on recti?cation, the Company suc- procurement phase, the Company strictly monitors the compliance of supplied products in terms of environment, safety, and quality, while
cessfully completed the annual heating grievance handling work, achieving a 100% request acceptance rate, 100% completion rate, and 100% encouraging suppliers to continuously improve products and services to drive overall supply chain quality. To deepen cooperation and communi-
satisfaction rate. cation, the Company proactively conducts supplier inspections before bidding and organizes on-site exchanges and acceptance after contract
awards. For engineering equipment suppliers, the Company focuses on inspecting factory scale, product quality, technical capabilities, and proj-
ect track records to ensure the supply chain remains secure, reliable, and sustainable.
During the reporting period
Equal Treatment to Small and Medium-sized Enterprises
Number of customer service Telephone customer service Online customer service To ensure that small and medium-sized suppliers can participate in competition fairly, the Company implements a supplier shortlisting system.
personnel: 59 satisfaction rate: 100% satisfaction rate: 100% All bidding projects are selected from a quali?ed supplier database on a merit basis, and external suppliers can be shortlisted after passing a
quali?cation review. This guarantees that all types of suppliers, including SMEs, have equal access to competitive opportunities. In 2025, the
Company conducted training for suppliers, including SMEs, providing standards and requirements for key management points in shortlisting, bid
Customer complaint resolution rate: 100% Customer commendations and acknowledgments: 1,500 times opening, bid evaluation, and inquiry/comparison processes.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Connecting Households and Sharing Harmony
Selected Safety and Health Systems of Member Companies
During the reporting period
Shandong Heze Fulin Thermal Technology Co., Ltd. Jiangsu Luen Mei Bioenergy Co., Ltd.
Number of annual contracted suppliers: 255 Supplier audit coverage rate: 100% Work Safety Management System Compendium of Safety Management Systems of Jiangsu Luen
Mei
Administrative Measures for Work Safety Rewards and Penal-
Incidents of overdue payments to SMEs: 0 Responsible procurement rate: 100% ties Administrative System for Safety Risk Announcements
Emergency Rescue Plan for Work Safety Accidents Emergency Plan for Safety Accidents at General Cargo
Terminals
Detailed Rules for the Work Safety Responsibility System for
All Staff
Administrative Regulations on Special Operations
Safeguarding Employee Rights and Well-being Anti-Violation Management System
Administrative System for Labor Protection Equipment Shenyang Xinbei Thermal Power Co., Ltd.
Luen Mei Quantum consistently regards talent as the core driving force for corporate sustainability. Adhering to the value philosophy of "healthy
development and happy work", the Company has systematically constructed and continuously re?ned a human resources management system 13 safety-related operational procedures
that covers occupational health and safety (OHS), employee rights protection, diversi?ed compensation and bene?ts, full-lifecycle career devel-
opment, and systematic training empowerment. The Company is committed to fostering a safe, equitable, respectful, and inclusive workplace
disasters, accidents, public health incidents, and social
that supports employees' continuous development, enabling the alignment and mutual advancement of employee and corporate value. safety incidents
Shenyang Hunnan Thermal Co., Ltd.
Hunnan Thermal Work Safety Management System
Work Safety and Fire Safety Responsibility System for Shenyang Guorun Low Carbon Thermal Power
Various Positions of Hunnan Thermal Co., Ltd.
Occupational Safety and Health
Implementation Manual for Risk Classification, Control, and
Occupational Safety and Health Management System Hidden Risk Identification and Rectification System Con- Work Safety Management System
struction
The Company prioritizes work safety and employee occupational health within its operational management. Strictly following the Work Safety Administrative System for Work Safety Accidents
Law of the People's Republic of China, the Interim Provisions on the Identification and Rectification of Hidden Risks in Work Safety, and the Guidelines Assessment System for Work Safety Responsibility
for the Implementation of Hidden Risk Identification and Rectification for Hazardous Chemical Enterprises, the Company has built a top-down OHS
Work Safety Management System
management system.
Administrative Regulations on Hidden Risk Identification and
Rectification
the Company-level management coordinates the revision and improvement of relevant systems across all Guohui Environmental Protection New Energy Anti-Violation Management Regulations
member entities while providing supervision and guidance on work safety. The Company continuously Co., Ltd.
Work Safety Responsibility System for Various Positions at
promotes the construction of management systems within member entities to establish a long-term
Levels
Work Safety Management System
mechanism for work safety. Under the uni?ed deployment of the Company, the Safety Inspection Depart-
In terms of governance ments of various member entities re?ne their OHS management systems based on their speci?c business 2024-2025 Work Safety Targets and Control Measures
architecture characteristics to ensure the effective implementation of management requirements.
Work Safety and Fire Safety Responsibility System for Various
Shenyang Guoxin Environmental Protection New
Positions
Energy Co., Ltd.
the Company has established a part-time safety of?cer management mechanism within frontline produc- Work Safety Management System
tion entities. Recommended by their respective departments and having passed training assessments,
Work Safety and Fire Safety Responsibility System for Various
certain employees serve as part-time safety administrators for their departments or teams while ful?lling
Positions at Levels
their primary duties. Under the guidance of the member entity's Safety Inspection Department, these
Regarding grassroots Three-Year Action Implementation Plan for Special Rectifica-
part-time safety of?cers assist the primary persons in charge of work safety in daily management, further
implementation tion of Work Safety
consolidating the grassroots safety responsibility network.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Connecting Households and Sharing Harmony
Strengthening Safety Training
The Company views safety training as a key lever for ensuring the effectiveness of the safety management system. Based on the Administrative Work Safety Management
System for Employee Education and Training, the Company has established a tiered and comprehensive safety training mechanism: For safety
management personnel, it organizes regular specialized external training to enhance professional literacy; for all employees, it conducts annual
routine safety education to maintain safety awareness; and the Safety Inspection Departments of member companies organize monthly special- Hunnan Thermal attaches great importance to employee occupational health and safety management, producing the
Case
ized training and practical drills for part-time safety of?cers. These efforts strengthen safety knowledge reserves and emergency response capa- Guoxin Newsletter: Safety Special Issue. The special issue centers on the theme "Everyone Speaks Safety, Everyone Knows
bilities, pushing safety management from institutional constraint to internal competence. Emergency Response — Identifying Safety Hazards Around You." It combines references to social safety cases with the
Company's actual safety practices, providing in-depth discourse across three dimensions: safety hazards, safety guard-
ianship, and the awakening of safety awareness. The publication highlights easily overlooked hazards such as electric
vehicle battery explosions and gas valve leaks, while showcasing actual work scenarios such as monthly routine safety
Guohui New Energy Conducting Hidden Risk Identi?cation training, normalized emergency drills, and employees proactively reporting and disposing of hazards, thereby interpreting
and Accident Prevention the essence of "Everyone is a Safety Of?cer." To make the safety philosophy more resonant, it incorporates quotes from
the Roman philosopher Seneca, verses by the poet Ai Qing, and simple yet powerful slogans like "Every time you fasten
your seatbelt, it's like a promise to your family." The special issue profoundly explains the signi?cance of safety for family
Guohui New Energy fully implements the safety requirements of both the government and Luen Mei Quantum by organizing
happiness and career development, advocating for the internalization of safety regulations into daily habits and the trans-
regular hidden risk identi?cation to promptly discover and eliminate potential production safety hazards. Guohui New
Case
formation of emergency drills into muscle memory. This initiative helps transform "Everyone Speaks Safety, Everyone
Energy conscientiously conducts company-level and department-level safety inspections while strengthening oversight of
Knows Emergency Response" from a slogan into a conscious action, fortifying the Company's safety ?rewall and promot-
outsourced projects.
ing a robust corporate safety culture.
As of the end of 2025, Guohui New Energy conducted 37
company-level safety inspections and identi?ed 853
safety hazards, including 537 items related to in-plant
and external networks and 316 items related to
outsourced engineering. The recti?cation (or monitoring)
rate of these safety hazards reached 100%, effectively During the reporting period
curbing the occurrence of production safety accidents.
Investment in work-related injury insurance: Coverage rate of work-related injury insurance: Work-related fatalities:
RMB 0.01 million 100% 0
Prioritizing Occupational Health
The Company strictly follows the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases and the Administra-
tive Measures for Occupational Health Examinations, fully integrating employee health management into daily operations. For positions with
occupational disease risks, the Company signs an Occupational Disease Hazard Disclosure Form simultaneously with the labor contract, clearly
Employee Employment and Rights
informing employees of potential hazards, occupational contraindications, and corresponding protective measures to ensure their right to know
and health interests are fully protected. In daily management, the Company continuously reinforces labor protection management and systemat- Luen Mei Quantum strictly complies with the Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republic of
ically promotes occupational safety risk identi?cation and assessment across all member entities. By strengthening the treatment of occupa- China, and the Trade Union Law of the People's Republic of China, among other laws and regulations. Adhering to the principles of fairness,
tional hazard factors and improving the working environment, the Company reduces occupational health risks at the source. Additionally, the impartiality, and openness, the Company standardizes labor practices in accordance with the law and earnestly respects and safeguards the
Company organizes regular occupational health check-ups for all active employees and conducts in-depth occupational health education to legitimate rights and interests of all employees. The Company fully implements an equal and non-discriminatory employment policy, resolutely
consistently enhance employees' awareness and self-protection capabilities, effectively preventing the occurrence of occupational diseases and eliminates child labor and any form of forced labor, and ensures the legality and compliance of all employment practices.
comprehensively safeguarding employee health rights.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Connecting Households and Sharing Harmony
Employee Structure
In terms of labor relations management Regarding compensation and bene?ts
the Company continues to strengthen its institutional frame- the Company provides employees with competitive remuner-
work, signing labor contracts with all employees in accor- ation and pays basic endowment insurance, basic medical
dance with the law and conducting routine supervision and insurance, unemployment insurance, work-related injury
inspections of labor usage. Through forms such as the insurance, maternity insurance, and housing provident funds
Employee Representative Congress, the Company actively for all staff in accordance with the law. During the reporting
promotes democratic management and extensively listens to period, both the labor contract signing rate and social insur-
employee opinions and suggestions to build harmonious and ance coverage rate remained at 100%, fully reflecting the Employee Employee age Employee education
gender structure structure structure
stable labor relations. Company's commitment to and responsibility for compre-
hensive employee rights protection.
Proportion of female employees 88.15% Proportion of employees under 30 51.03% High school and below 54.10%
In 2025, the Company systematically carried out campus recruitment through various forms such as presentations, job fairs, and institutional
exchanges. A total of 17 offline campus presentations were held, forming a standardized campus recruitment system that continuously bolsters Number of male employees 11.85% Proportion of employees aged 30-50 30.08% Bachelor's and junior college 44.69%
the talent reserve and provides strong support for the Company's sustainable development.
Proportion of employees over 50 18.89% Master's and above 1.20%
Equal Treatment
The Company strictly follows non-discriminatory
recruitment criteria. Employees of different genders,
Lawful Employment
ethnicities, and religious beliefs enjoy a uni?ed, fair,
The Company continues to re?ne its and non-discriminatory environment regarding
human resources management system,
During the reporting period
compensation, promotion, and talent development
signing labor contracts with all employ- mechanisms.
ees to stipulate their rights. Strictly
Total number of employees: Total number of new hires: Labor contract signing rate:
adhering to the Provisions on the Prohibi-
tion of Using Child Labor and the legal
requirements of the countries/regions
Democratic Management 2573 951 100%
The Company implements a democratic
where it operates, the Company reso- management system centered on the
lutely prohibits the recruitment of child Employee Representative Congress,
labor and opposes all forms of forced encouraging employees to contribute sug-
labor. The Company has implemented a Social insurance coverage rate: Employee satisfaction rate:
gestions for corporate development. All
labor employment supervision and
inspection system, conducts periodic Employee
subsidiaries regularly convene an Employ-
ee Representative Congress to proactively
spot checks on labor management Employment solicit employee feedback and address
practices, and provides human rights and Rights their practical needs.
protection training to all employees. No
incidents of child labor or forced labor
occurred in 2025.
Employee Care Compensation and Bene?ts
Adhering to the "healthy development, happy work" The Company actively reforms its compensation
philosophy, the Company strives to balance work and system, providing remuneration no lower than the
life. The labor union organizes regular activities such as local average and full payment of "?ve insurances
Spring Festival celebrations, employee birthday parties, and one fund" (including housing provident fund
and International Women's Day events. In 2025, the contributions at the maximum ratio). In 2025,
Company organized multi-level and diversi?ed employ- social insurance coverage and labor contract sign-
ee care initiatives, enriching employees' leisure lives ing rates both reached 100%.
while further boosting morale and cohesion.
Speech contest Employee birthday party
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Connecting Households and Sharing Harmony
Career Development and Training
Luen Mei Quantum continues to re?ne its talent management system, systematically building organizational capabilities to support sustainable
development by focusing on key links such as talent standards, recruitment, optimization, reserves, cultivation, and the developmental environ-
ment. During the reporting period, the Company released its ?rst Key Position Talent Standards, covering roles such as grassroots team leaders,
middle management, and assistants to general managers. These standards de?ne selection criteria across dimensions like education, major,
and performance, providing a systematic basis for professional promotion. Regarding inter-
nal promotion, through comprehensive talent reviews and rigorous assessments, the Com-
pany promoted 19 management cadres at or above the middle-management level (including
Special contribution selection & commendation New year celebration & annual gala talent pool. Furthermore, the Company strengthened its talent reserve layout at the organiza-
tional level by establishing deputy head positions in core production management depart-
ments and introducing assistant-level reserve roles such as "Team Leader Assistant, Depart-
ment Director Assistant, and General Manager Assistant". These initiatives have effectively
deepened the talent bench and provided employees with clear and orderly career develop-
ment paths.
The Company has constructed a systematic internal cultivation framework to advance talent development and capability enhancement through
layered and categorized programs. During the reporting period, the Company launched the second phase of the "Successor" Talent Development
Project. Thirty trainees were selected through multi-dimensional evaluations and divided into three echelons: "Luen Mei Generals", "Luen Mei
Eagles", and "Luen Mei Artisans". To support this, 25 mentors from corresponding levels were appointed to conduct coaching, forming a core
talent pipeline cultivation mechanism. For campus hires and new employees, the Company introduced a mentorship system, assigning dedicat-
ed mentors to 10 "Mei Yu Students". Simultaneously, a job rotation mechanism was established: trainees in the core talent pipeline undergo
Hiking & walking activity Annual merit evaluation & recognition quarterly rotations, while "Mei Yu Students" participate in full-position practice to comprehensively enhance their integrated capabilities. In
terms of training implementation, four PMP practical project management sessions were organized throughout the year, covering over 80 atten-
dances. Additionally, over 50 training sessions on the Administrative Measures for the Punishment of Non-compliance and Fraud were conduct-
ed, reaching 2,482 attendances. Monthly online customized training courses were also pushed to over 150 employees to continuously enhance
professional literacy and compliance awareness. Through this diversi?ed training system and mentorship mechanism, the Company has effec-
tively strengthened its talent pipeline and provided systematic support for employee growth, driving the continuous improvement of organiza-
Speaking of "Extraordinary" Through Voice tional capacity.
In 2025, Luen Mei Quantum participated in the Luen Mei Group 4th Speech Contest. Themed "Extraordinary in the Ordinary",
the contest allowed employees to share their voices through speeches, ensuring that the spirit and qualities shining silently
Case
in daily work were seen and remembered. This event further enriched the Group's cultural connotations, enhanced employ-
ees' sense of belonging, and allowed corporate culture to be deepened and inherited through exchange and sharing. The "Successor" Talent Development Program
"Luen Mei Commander"
Under the uni?ed planning of Luen Mei Quantum, Luen Decision-
makers
Project
Case
(M6)
Mei Group of?cially launched the second phase of the
"Luen Mei General" Phase I: 7 Phase II: 5
"Successor" Talent Development Project in August 2025. High-level managers Project participants participants
(M5, M4 & M3)
Following internal talent reviews, multi-layered selection,
Middle-level managers
and rigorous deliberation, 30 outstanding trainees were (M1 & M2)
Project participants participants
selected to enter the cultivation program. Phase I: 43
participants;
Phase IV: 46
participants;
Grassroots managers "Mei Yu Student"
(P3 & P4) Phase II: 20 Phase V: 4
Project participants; participants;
Phase III: 5 Phase VI: 18
participants; participants
Grassroots employees
(Professional P/Operational O) "Luen Mei Artisan" Phase II: 10
Project participants
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Connecting Households and Sharing Harmony
Sustained Cultivation of "Mei Yu Student" Talent Building Strong Work Relationships through "Pass-Help-Guide" Mentorship
In 2025, the Company organized over 10 training ses- The Company assigned 5 mentors for "Luen Mei Gen-
Case
Case
sions for the "2026 Mei Yu Students", covering more eral" trainees, 15 mentors for "Luen Mei Eagle" train-
than 10 participants. Activities included new employee ees, 5 mentors for "Luen Mei Artisan" trainees, and 10
integration training, outward bound exercises, "Campus mentors for the "2026 Mei Yu Students". By adopting
to Corporate" transition workshops, mentorship cere- the "Pass-Help-Guide" model, the Company has built
monies, strength-based workshops, boiler knowledge positive work relationships. These designated men-
training, and site visits to member companies. These tors help employees improve professional skills, orga-
sessions helped "Mei Yu Students" rapidly transition nizational integration, and teamwork, cultivating the
their mindsets from students to professionals. Through talent necessary for enterprise development.
the "Pass-Help-Guide" mentorship, they achieved com-
prehensive improvements in professional knowledge
and practical skills. In early October, "Mei Yu Students"
were dispatched to various member companies to com-
plete professional training and practical rotations in key
positions as planned.
During the reporting period
Total number of employees participating in training: Percentage of middle management trained:
Synergizing Talent and Career Development Percentage of grassroots employees trained: Training expenses:
To enhance the skills of management and backbone
Case
employees and improve organizational ef?ciency, the
Total attendances in job-related knowledge and skills training: Average training hours per employee:
Company conducted four sessions of "PMP Practical
Project Management Training" for management 1,233 3.04 hours/person
personnel involved in project management at Luen Mei
Group headquarters and member companies, covering
over 80 attendances. Through this training, business Average training hours for middle management: Average training hours for grassroots employees:
backbones gained practical solutions and a signi?cant
leap in project management capabilities, injecting new 3.00 hours/person 3.00 hours/person
momentum into Luen Mei Group's project management
system. In addition, company-wide training on the
Administrative Measures for the Punishment of Non-compli-
ance and Fraud of Luen Mei Group was conducted, with
more than 50 sessions organized separately by head-
quarters departments and member companies, cover-
ing all employees of Luen Mei Group, totaling 2,482
attendances.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Connecting Households and Sharing Harmony
Advancing Social Harmony and Community Guoxin New Energy Enhancing Warmth to Empower Communities
Co-construction
In 2025, Guoxin New Energy focused on securing heating for people's
livelihoods and launched several heartwarming public welfare initiatives.
Case
Luen Mei Quantum actively ful?lls its social responsibilities while creating economic bene?ts, committing itself to giving back to communities,
To address heating facility issues, Guoxin New Energy provided free
serving residents, and supporting local economic development. Leveraging its resource advantages in human capital, capital, and technology, the
services such as pipeline dredging and door/window sealing for
Company focuses on issues such as rural revitalization, public welfare, and community construction, promoting the coordinated development of
residents, installing sealing strips for 45 households and door curtains for
the enterprise and society.
building corridors and distributed 55 indoor thermometers free of charge.
Lawful Tax Payment Guoxin New Energy installed 13 sets of radiators for 11 households,
aLawful tax payment is a vital social responsibility for an enterprise. While generating economic value, Luen Mei Quantum adheres to lawful and providing entirely free services for elderly people living alone and
honest tax payments to drive regional development. In 2025, the Company's total tax payment amounted to RMB 293 million, contributing to extremely impoverished groups. Additionally, Guoxin New Energy provid-
national and local economic development and social progress. ed free door-to-door installation of cotton door curtains and window
seals for 54 households, including underprivileged individuals, the
disabled, and empty-nesters. Guoxin New Energy also installed indoor
Collaborating for Rural Development temperature collection equipment for 10 households with special layouts
for free. For 7 households where temperatures remained below standard
The Company insists on taking root in local areas and deepening localized operations, viewing this as a key path to promoting synergy and inte-
even after improvements, Guoxin New Energy provided a monthly elec-
gration between the enterprise and the region. Against the backdrop of comprehensively advancing rural revitalization, the Company combines
tricity subsidy of RMB 100 per household. Simultaneously, Guoxin New
its core clean energy business with the continuous expansion of its biomass energy sector. By effectively utilizing agricultural and forestry waste
Energy balanced overall heating optimization by adjusting heating
from rural areas, the Company ful?lls its fundamental function of providing heating security. This integration of resource recycling and livelihood
parameters across different areas. Guoxin New Energy has also coordi-
services helps build a sustainable development pattern characterized by green, low-carbon, and urban-rural integration.
nated with municipal housing departments to implement "warm housing"
renovations for 36 buildings in the Meijiangxi Community in 2026, ensur-
ing that the public can spend the winter in warmth.
Public Welfare Activities
The Company consistently upholds the public welfare philosophy of "taking from society, giving back to society". The Company actively performs
its duties as a corporate citizen and consistently participates in social welfare undertakings to assist in community development and the
improvement of people's livelihoods. During the reporting period, the Company organized various forms of public welfare actions, effectively con-
verting corporate resources into social value.
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Key Performance Indicators
Key Performance Indicators
Environmental Performance Social performance
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Indicator Index
Indicator Index
GRI Content Index
Governance performance
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Indicator Index
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Indicator Index
Luen Mei Quantum Co., Ltd. 2025 Environmental, Social and Governance Report Feedback Form
Content Index of Guidelines No. 14 of Shanghai Stock Exchange for Self-Regula-
tion of Listed Companies — Sustainability Report (Trial)
Feedback Form
Dear Readers,
Hello! Thank you for reading the 2025 Environmental, Social and Governance Report of Luen Mei Quantum Co., Ltd. We highly value and look
forward to hearing your feedback regarding our ESG reporting. Your comments and suggestions serve as a vital basis for us to continuously
advance our corporate sustainability management and practices. We sincerely hope you can provide your insights on this report and our work.
You may return this questionnaire to us via mail, email, or fax, or call us directly to share your valuable opinions.
Multiple Choice (Please mark with a where appropriate)
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Open-Ended Questions
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If you have any questions or comments regarding the report, please contact us through the following channels:
Email: zhangyao@luenmeichina.com
Address: No. 1, Middle Yuanhang Road, Hunnan New District, Shenyang
Postal Code: 110179
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