About This Report
Message from the
Chairman Contents
Awards
About This Report 03
Environment Message from the Chairman 05
Society
Anti-Commercial Bribery and Anti-Unfair Competition 78
Governance
Climate Response 11
Appendix
Appendix
Pollution Control and Ecosystem Protection 22
Data Overview 84
Resource Utilization and Circular Economy 25
GRI Index 90
SASB Index 105
Employees 28 Indicators Reference for ESG Report of Listed Chinese 106
Central State-Owned Enterprises
Innovation-driven Development, Suppliers and Clients 40
Rural Revitalization and Social Contribution 51
About This Report
About This Report This is the 2023 Sustainability Report ("this report") released by Xiamen
ITG Group Corp., Ltd. (referred to as " Xiamen ITG Group" or "We").
Message from the This report aims to provide stakeholders with an overview of 2023
Chairman
Sustainability performance and init i atives in Xiamen ITG Group.
Awards
Environment
Reference Guidelines Reporting Scope Report Availability and Feedback
Society
We prepare this report in accordance with the "Global The reporting period is between January 1, 2023, and De- We released this report in electronic format in both Simplified
Reporting Init i ative Standards" (GRI Standards), and "Sus- cember 31, 2023 and some parts of the report are beyond the Chinese and English. In case of any inconsistencies between
Governance tainability Accounting Standards Board Standards" (SASB aforementioned scope. Unless otherwise specified, the envi- the Chinese and English versions, the Chinese version shall
Standards). The report also takes into account the disclosure ronmental, social, and economic data disclosed in this report prevail. The electronic version of the report is available on
requirements of the "Guidelines No. 1 of Shanghai Stock includes all enterprises within the scope of the consolidated our official website (www.itg.com.cn) and the Shanghai Stock
Appendix
Exchange for Self-Regulation of Listed Companies - Stan- statement of Xiamen ITG Group Corp., Ltd. Exchange website (www.sse.com.cn). If you have any com-
dardized Operation", "Guidelines No. 14 of Shanghai Stock ments or suggestions on our economic, environmental, and
Exchange for Self-Regulation of Listed Companies-Sustain- social performance, please contact zqswb@itg.com.cn.
ability Report (Trial)", SASAC Research Center's "Indicators
Reference Systems for ESG Reports of Listed Chinese Central
State-Owned Enterprises", IFRS Sustainability Disclosure
Standards(ISDS) developed by International Sustainability
Standards Board(ISSB), and the United Nations Sustainable
Development Goals (SDGs).
Explanatory Note
Abbreviation Full Name Abbreviation Full Name
About This Report
Xiamen ITG Group Xiamen ITG Group Corp., Ltd. ITG Paper Xiamen ITG Paper Co.,LTD.
Message from the
Chairman
IPCC Intergovernmental Panel on Climate Change Keerun Medical Technology Keerun Medical Technology (Xiamen) Co., Ltd.
IEA International Energy Agency Xiamen ITG Baokang MedicineTechnology Co., Ltd.
Awards nology
Xiamen ITG New Energy Sup-
ISO International Organization for Standardization Xiamen ITG (Shanghai) New Energy Development Co, Ltd
ply Chain
Environment
Xiamen Keerun OCSMARTER Xiamen Keerun OCSMARTER Technology Co., Ltd. ITG Elderly Care Xiamen ITG Health Care Technology Co.,Ltd.
Society
Keerun Tire (Rizhao) Keerun Tire (Rizhao) Co., Ltd. ITG Agricultural Products Xiamen ITG Agricultural Products Co.,Ltd.
Governance
Ningbo Zhencheng Mining Ningbo Zhencheng Mining Co., Ltd. ITG Agriculture and Forestry Xiamen ITG Agriculture and Forestry Co., Ltd.
Appendix Hainan ITG Logistics Hainan ITG Logistics Co., Ltd. ITG Tidak Logistics Xiamen ITG Tidak Logistics Co., Ltd.
Heilongjiang Runda Xiangyun
Keerun Tire (Dezhou) Keerun Tire (Dezhou) Co., Ltd. Heilongjiang Runda Xiangyun Logistics Co., Ltd.
Logistics
ITG Health Technology Xiamen ITG Health Technology Co., Ltd. Hainan ITG Hainan ITG Co., Ltd.
Hubei ITG Supply Chain Hubei ITG Supply Chain Group Co., Ltd. ITG Resources(Singapore) ITG Resources(Singapore) Pte.Ltd.
ITG Petrochemical ITG Petrochemical Co., Ltd. Xiamen ITG Shipping Xiamen ITG Shipping Co., Ltd.
* The abbreviations above are arranged in the order of appearance.
About This Report
Message from the
Chairman
Awards
Message from the Chairman
Environment
We have always been exploring possibilities to create value for customers, employees, shareholders and investors, and society.
Society
Since 2005, we have incorporated "value" and "growth" into our corporate philosophy. Today, amidst an increasingly uncertain
external environment and the reshaping of the global value chain, we, guided by our brand mission of "Integrate Industry to
Governance Connect. Create Value to Share," have come to a deeper realization that—
Only by continuously creating value can we promote the sustainable development of the enterprise, and only by practicing the
concept of sustainable development can we maximize social value. Value creation requires support from a sound corporate
Appendix
governance system and a conscious sense of responsibility, as well as guidance from a stronger environmental awareness and
a cohesive corporate culture. This is also the original intention behind our annual compilation of sustainability report.
In 2023, we not only integrated resources and services but also collaborated with customers to achieve mutual success, seek-
ing answers to enhance service value. As a leading supply chain enterprise in China, we consolidated resources, channels,
and professional capabilities to provide partners with integrated, customized, and high-value-added comprehensive industry
About This Report services of ITG Solutions. Committed to creating more value but also established ourselves firmly in markets along the and created a safe, healthy, fair, just, harmonious, and inclu-
for customers, we advanced the upgrade of the supply chain Belt and Road Init i ative. Since the establishment of Pointer sive working environment for our employees.
business model over the past year, enhancing service, indus- Investment (Hong Kong) Limited in 1984, we have set up over
Our sustainability report is an annual answer sheet from over
Message from the trial investment, and operational capabilities. We established 20 overseas branches, with operations covering more than 170
Chairman 6900 employees, conveying the values, responsibilities, and
a "Three-chain Integration" new development model, with countries and regions, thus building comprehensive interna-
future plans behind our company's performance. This answer
full-process supply chain services as the core, international tional industrial service capabilities. In the past year, we have
sheet will extend beyond just this year, and become our daily
industrial chain operation as the driving force, and efficient expanded both the depth and breadth of our global opera-
value chain collaboration as the guarantee, contributing to the tions, responded to the demands of local industry partners,
Awards commitment to numerous stakeholders and the future of the
security and stability of the global industrial supply chain. and implemented multiple projects in Southeast Asia, Central
industry.
Asia, the Middle East, West Africa, South America, and other
In 2023, we not only practiced the concept of green devel-
Environment regions. Additionally, we have been serving national regional We deeply understand that actions speak louder than words.
opment but also contributed to the low-carbonization and
strategies by launching projects in the silicon and phosphorus As responsible corporate citizens, we will uphold a long-term
intelligence of the industrial chain. We formulated goals for
chemical industries in key areas, including the central and vision and unwavering resilience to do what is right, what is
Society carbon peak and net zero, exploring the path to carbon peak
western regions of China. This has resulted in win-win collab- difficult, and what requires time to accumulate. Furthermore,
through five aspects: designing sustainable products, facilitat-
orations and value enhancement, integrating into the new we will continue to fulfill our commitment to working hand in
ing supply chain decarbonization, utilizing renewable energy,
development paradigm of dual circulation, both domestically hand with industry partners, understand their needs, connect
Governance developing sustainable industries, and executing sustainable
and internationally. industries, and jointly create more enduring and far-reaching
actions. We actively promoted the development of the circular
value.
economy, focused on new energy supply chain businesses In 2023, we went beyond attracting and nurturing talent to
Appendix
such as the "battery industry chain," "photovoltaic wind power grow with our employees. Guided by our core values of "Lead-
industry chain," "new materials and new products industry ership, Responsibility, Hardworking, Partnership," our 6900+
chain," and the "hydrogen energy, energy storage, and waste employees around the world are working with determination
battery recycling industry chain," and optimized the industrial and pioneering spirit to solve problems and provide services
Gao Shaoyong
and energy structures. We iterated on multiple digital projects to our partners. It is also them who are driving the transforma- The chairman of Xiamen ITG Group
to enhance the digital intelligence operation capabilities of tion and development of our company continuously. Over the
the supply chain. We emphasized on upgrading the "medical past year, we optimized our organizational structure, iterated
device" business in the field of health technology, steadily on talent development systems, designed different i al compen-
expanding coverage in elderly care services, and continuously sation and performance schemes, and built an employee care
exploring normalization models for the transaction value of system, ensuring that "those who strive will always gain." We
health and medical data. conducted a series of "Pioneering Culture" activities, enriched
cultural life, promoted the construction of a healthy enterprise,
In 2023, we not only expanded our presence internationally
About This Report
Ranked Ranked Awarded
Message from the
Chairman 1,214th 26th "5A-level Supply Chain Service Enterprise"
on Forbes Global 2,000 on Fortune China 500 (Listed Companies) by China Federation of Logistics and Purchasing
Awards
Ranked Awarded
Environment 60th "Best Board of Directors"
in the "Gold Prize of Round Table"of Chinese
in the "China Listed Companies Brand Value
Listed Company
Vitality Ranking"
Society
by National Business Daily
Governance
Awarded
Appendix "2023 Learn from Lei Feng Model Site"
by Xiamen City
Selected as
"Outstanding Case for ESG Practice of
"ITG ATLAS" was awarded the "Outstanding Awarded Listed Companies in 2023"
Cases of Commercial Technology "Supply and Demand Matching Employment by CAPCO
Innovative Application for the Year 2022" and Education Project" Excellent Case
by the Ministry of Commerce by the Ministry of Education
*"ITG ATLAS" Award Explanation: The award was announced in 2022 and awarded in 2023
Selected as
About This Report Awarded
"Best Practice Case of Board of Directors of
"Best Board of Directors of Listed Awarded
Listed Companies" in 2023
Message from the Companies" "Xiamen Talent Scout Enterprise"
by CAPCO
Chairman in the 13th Prestigious Charts of Chinese by the Xiamen Municipal Human
Listed Companies Resources and Social Security Bureau
"ITG IRSP" Grain Silo Solution was
awarded "Excellent Case of Logistics
Awards
and Supply Chain Digitization for 2023"
by China Federation of Logistics and
Environment Purchasing
Society
Governance
Appendix
Ranked 80th Awarded Rank 1st in both the Building Steel and Metal
in the "Top 100 Chinese Enterprises for Social "Leading Enterprise in Logistics and Supply Sheet Categories
Responsibility 2022" Chain Digital Transformation for 2023" on the "Top 100 Chinese Steel Trading
issued by the Southern Weekly by China Federation of Logistics and Enterprises" list
Purchasing issued by the China Steel Development
Research Institute and Mysteel
* Southern Weekly Award Explanation: Results announced in 2023
Awarded
About This Report "Top 10 Talent Work Benchmark Awarded
Awarded
Enterprises in Xiamen" "China Outstanding Employer Award"
"2023 Mysteel Iron Ore Long-Term Spot
by Xiamen High-level Talent Development from 51job
Message from the Price Index Integrity Pricing Unit"
Chairman Center
and
"ITG Carbon Chain" was awarded "Integrity Pricing Unit for the 2022-2023
Awards "2023 Excellent Case of Digital Intelligence Mysteel Coal and Coke Price Index"
in Supply Chain" by Mysteel
Environment
Society
Awarded
Governance "Best Employer in 2023"
Awared by CHIRC
"2023 Long-term Trusted Service
Appendix
Provider for Iron Ore"
and
"2023 China's Excellent Coal and Coke
Supplier"
by MySteel
Awarded
"Outstanding Employer Award"
Awarded jointly presented by Aimsen, Best Roi, and TC
"Top 100 Chinese Listed Companies Award 2023" Consulting
by Warton Economic Institute
Environment
About This Report Total environ-
mental protec-
tion input million RMB
Message from the
Chairman
GHG emission
intensity 76.26
tCO2e / hundred-million RMB of
Awards operating revenue
Environment
Energy con-
sumption 24.61
intensity tons of coal equivalent /hundred-mil-
Climate Response lion RMB of operating revenue
Pollution Control and
Ecosystem Protection
Resource Utilization and
Water con-
sumption 84.19
density m?/hundred-million RMB of oper-
Circular Economy
ating revenue
Society
Governance
Appendix
About This Report
Message from the
Chairman
Awards Climate Response 2023 Management Targets Completion Status
Environment In recent years, the risks brought by climate change
have posed severe challenges to business operations Set carbon peak and net zero action goals: To peak carbon emissions by 2030 and to reach the net
Climate Response and development, making addressing climate change
Pollution Control and a common topic for human society. As a leading do-
Increase the utilization of clean energy and progressively raise the proportion of green and clean
Ecosystem Protection mestic comprehensive supply chain service provider, 3 energy year by year
Resource Utilization and we respect the temperature control agreements
Circular Economy of the "Paris Agreement." Through technological
innovation, we integrate digital intelligence products
with the concepts of green development and product
Net Zero Strategy
Society lifecycle into comprehensive supply chain services.
We provide integrated industry services to upstream
We adhere to the mission of "Integrate Industry to Connect. Cre- We have set carbon peak and net zero action goals: to peak
and downstream partners, actively taking actions
Governance
ate Value to Share." and the core values of "Leadership, Respon- carbon emissions by 2030 and to reach the net
to promote our own operations and the low-carbon
sibility, Hardworking, Partnership." Aligned closely with national zero emissions goal by 2060. Guided by the "Corpo-
transformation of the entire value chain.
strategic planning, we strive to be a trusted industry partner with rate Net Zero Pathway - Delivering the Paris Agreement and the
Appendix global vision, contributing to the achievement of the United Na- Sustainable Development Goals" released by the United Nations
tions Sustainable Development Goals (SDGs) and the country's Global Compact (UNGC), we have formulated five init i atives to
"dual-carbon goals." achieve net zero strategy. We are actively exploring a unique
"dual-carbon" path with characteristics of our company.
About This Report Designing sustainable products Developing Sustainable industries
Through technological innovation, we integrate digital intelli- Seizing the opportunities for green and low-carbon transforma-
Message from the gence products with green development and the concept of the tional development, we actively engage in init i atives such as
Chairman product lifecycle into comprehensive supply chain services, pro- promoting the circular economy and enhancing the well-being of
viding integrated industry services to upstream and downstream the people, thereby contributing to the sustainable development
partners. of cities.
Awards
Environment
Facilitating supply chain decarbonization Executing sustainable actions
Climate Response
Pollution Control and We adopt sustainable materials and logistics methods in produc- Under the theme of "Passion for Nature and Dreams for Future,"
Ecosystem Protection tion and operations, collaborating with supply chain partners to we carry out a series of activities to advocate for nationwide
Resource Utilization and build a sustainable supply chain, collectively promoting the over- green movement with everyone's participation, collaboration,
Circular Economy all green and low-carbon transformation of the industry chain. and sharing, aiming to collectively safeguard the Earth.
Society
Governance Utilizing renewable energy
We promote the use of renewable energy sources such as solar
Appendix and wind power in production and operations, gradually reduc-
ing the proportion of non-renewable energy sources such as
fossil fuels, to drive energy transition.
Sustainable Development Risk ·Physical Risk Assessment
Management 2030 2050
Current
Climate-related disaster risks
State
About This Report Climate change presents humanity with severe and long- SSP1-1.9 SSP5-8.5 SSP1-1.9 SSP5-8.5
term adjustment challenges. We integrate sustainable
Floods and Typhoons
development risk management into a comprehensive risk
Message from the The destruction of urban infrastructure and its impact on
management framework. Referencing scenario models from
Chairman human welfare and health, especially in coastal cities and
the Intergovernmental Panel on Climate Change (IPCC), we resident i al areas.
identify and assess near-term, medium-term, and long-term
Biodiversity loss and habitat displacement
physical risks. Likewise, referencing scenario models from
Awards the International Energy Agency (IEA), we identify and assess
systems, including the loss of biodiversity, functionality, and
short-term, medium-term, and long-term transition risks protective services.
and opportunities. We then formulate corresponding risk
Sea Level Rise
Environment response and strategic adjustment strategies to continuously
The loss of human and natural systems in low-lying coastal
enhance our strategic resilience under sustainable devel- areas, reduction in coastal fisheries resources, decrease in
Climate Response
opment risks, ensuring the sustainable development of our precipitation, and rise in temperatures.
Pollution Control and company. Extreme Heat
Ecosystem Protection
The increase in temperature and extreme heat impose stress
Resource Utilization and and lead to deaths, with an increase in heat-related mortality
Circular Economy and morbidity rates among both humans and wildlife. Food
and water security are at risk.
Droughts
Society Freshwater scarcity, with a decrease in surface water supply
for irrigation in agriculture and other human purposes.
Extreme Low Impact Low Impact Medium Impact High Impact Extreme High Impact
Governance
Physical Risks
Appendix According to the five scenarios under the IPCC's Shared So- According to the IPCC's Sixth Assessment Report: Compared to 1850–1900, global surface temperature averaged over 2081–2100
cioeconomic Pathways (SSP), we have selected the very low is very likely to be higher by 1.0° C to 1.8° C under the very low GHG emissions scenario considered (SSP1-1.9), the likely global
GHG emissions scenario (SSP1-1.9) and the very high GHG mean sea level rise is 0.28–0.55 meters, and the average annual global land precipitation is projected to increase by 0–5%. Com-
emissions scenario (SSP5-8.5) to conduct Near term, Mid- pared to 1995-2014, the global surface temperature is very likely to be higher by 3.3° C to 5.7° C by 2100 under the very high GHG
term, and Long term climate disaster risk identification and emissions scenario (SSP5-8.5), the likely global mean sea level rise is 0.63-1.01 meters, and the average annual global land precip-
assessment on our company's business and asset operations. itation is projected to increase by 1-13%.
·Physical Risk Management
Physical Risks Impact period Coping Mechanism
About This Report
Floods and Typhoons Establish a comprehensive emergency management mechanism, formulate emergency plans, take correspond-
The destruction of urban infrastructure and its ing measures according to different levels of warnings; regularly conduct emergency drills to enhance the ability
Near, Mid & Long term
Message from the impact on human welfare and health, especially in to respond to floods and typhoons; ensure that the company's equipment and buildings can withstand the
Chairman coastal cities and resident i al areas. impact of super typhoons.
Displacement
Awards Actively take sustainable development actions, advocate for everyone's participation, mutual benefit, and
Risks of degradation in marine, coastal, and terres- Mid & Long term
co-creation in the nationwide green action, jointly protecting the ecosystem.
trial ecosystems, including the loss of biodiversity,
functionality, and protective services.
Environment
Sea Level Rise
Climate Response
The loss of human and natural systems in low-lying
Pollution Control and coastal areas, reduction in coastal fisheries resourc- Mid & Long term Monitor meteorological and oceanic changes to promptly adjust response strategies.
Ecosystem Protection es, decrease in precipitation, and rise in tempera-
Resource Utilization and tures.
Circular Economy
Extreme Heat
The increase in temperature and extreme heat im-
Monitor temperature conditions and provide employees with health and safety protection measures in high-tem-
pose stress and lead to deaths, with an increase in
Near, Mid & Long term perature working environments; upgrade equipment with heat-insulating materials to enhance heat resistance
Society heat-related mortality and morbidity rates among
and conduct regular maintenance to proactively address extreme heat risks.
both humans and wildlife. Food and water security
are at risk.
Governance
Droughts
Freshwater scarcity, with a decrease in surface Advocate for water conservation principles, promote water-saving appliances, and reduce water resource con-
Near, Mid & Long term
Appendix water supply for irrigation in agriculture and other sumption.
human purposes.
About This Report Transition Risks According to the IEA's World Energy Outlook" (WEO): Under Net Zero Emissions by 2050 (NZE) Scenario, the
Global energy-related carbon emissions reach net zero by 2050, limiting the rise in global temperatures to
We combine the Net Zero Emissions by 2050 Scenario (NZE) and the Stated Policies or announced by governments, annual carbon emissions from energy and industrial processes will increase
Message from the from 34 gigatonnes in 2020 to 36 gigatonnes in 2030, remaining at roughly the same level until 2050. If
Scenario (STEPS) within the IEA scenario model to assess the transition risks and
Chairman emissions continue along this trajectory and non-energy-related greenhouse gas emissions follow a similar
opportunities for our development posed by climate change. Corresponding strate-
trend, the temperature will rise by approximately 2.7° C by 2100 (with a 50% probability). By 2050, the share
gies are formulated to enhance the strategic resilience of our company and achieve of renewable energy in global electricity generation will be close to 55%.
Awards
·Transition Risk Management
Environment
Transition Risks Impact period Coping Mechanism
Climate Response
Seize key areas in the domestic "East, West, South, North, and Central" for layout, accelerate overseas market expansion,
Pollution Control and increase internationalization efforts, actively build a dual-cycle development pattern domestically and internationally; drive
Ecosystem Protection innovation in business models, strengthen penetration along the entire industry chain, continuously build core competi-
Geopolitical conflict Near, Mid & Long term
tiveness in investment and operation along the industry chain, large customer management, and one-stop services, rely
Resource Utilization and
on integrated channel resource integration capabilities to deeply penetrate the upstream and downstream of the industry
Circular Economy
chain, and maintain close strategic cooperation with industry chain customers based on mutual assistance and trust.
Adhere to the concept of green development, formulate net zero strategies and emission reduction targets, actively practice
Society Pressure from greenhouse gas emission carbon reduction actions; contribute to the low-carbon or decarbonization development of the industry chain by imple-
Mid & Long term
reduction policies menting technology innovation, actively researching and developing iterative digital products, while reducing greenhouse
gas emissions generated by our own operations.
Governance
Utilize global resources to acquire and establish distribution channels, enhance professional and effective risk manage-
Growing market demand for sustainable ment capabilities, build a 5A-grade logistics distribution network, and vertically expand the industry chain upstream and
Near, Mid & Long term
products and services downstream. Horizontally enrich supply chain service content, provide customers with customized, integrated supply chain
Appendix
service solutions, continuously enhance the innovation vitality of the industry chain, and nurture business growth.
Continuously advance digitalization strategy by innovating with technology, actively researching and developing iterative
Demands for clean technology innovation digital products, empowering the industry chain to achieve green transformation. Accelerate expansion into new fields such
Mid & Long term
and energy transition as new energy, new materials, information technology, and life sciences. Actively explore new energy materials business
such as cobalt and lithium.
GHG Emissions Control
To strengthen greenhouse gas emissions and energy management, the Strategic and Sustainable Development Our GHG inventory scope for 2023 includes Scope 1 direct emission sources
About This Report Committee has designated individuals responsible for exploring research directions in energy conservation and car- and Scope 2 indirect emission sources. Scope 1 includes emission sources
bon reduction as well as providing operational and maintenance services related to energy-saving and carbon-re- from natural gas boiler combustion, ships/vehicles combustion facilities,
duction efforts. We aim to systematically advance greenhouse gas emissions and energy management init i atives. and fugitive emissions from equipment like air conditioning, while Scope 2
Message from the includes GHG emissions generated from purchased electricity, heat, and oth-
Chairman In accordance with the requirements of the ISO 14064-1:2018 standard, we conducted a greenhouse gas inventory
er energy sources.
for the following entities that have operational control in 2023 using the operational control method:
Awards
GHG
Xiamen ITG Group Corp., Ltd. Definition Primary GHG activities
Category
Environment
Direct Greenhouse Gas Emis-
• Natural gas stove
sions refer to the greenhouse
Climate Response • LPG stove
gas emissions produced by
Pollution Control and • Diesel generator
Departments
Functional Management
and Segments
Supply Chain Business Clusters
Co., Ltd.
Xiamen ITG Investment
Co., Ltd.
Xiamen ITG Health Technology
Co., Ltd.
Xiamen ITG Digital Technology
Co., Ltd.
ITG KEERUN(Shanghai)
Other Regional Companies
the organization itself, includ-
Ecosystem Protection ing the emissions produced • Gasoline business vehicles
Resource Utilization and by burning fossil fuels and • Diesel business vehicles
Organizational
Scope 1
Boundaries
Circular Economy industrial processes. They are • Diesel forklift and other on-
divided into stationary com- site vehicles
bustion emissions, mobile • Marine transportation
combustion emissions, pro- • Operation of air condi-
Society cess emissions, and fugitive tioners and other cooling
equipment
emissions.
Governance
Indirect Greenhouse Gas
Emissions refer to the green-
house gas emissions generat-
Operating Cruise Ships
Appendix
Owned and Leased Buildings
Owned and Leased Buildings
Owned and Leased Buildings
Owned and Leased Buildings
Owned and Leased Buildings
Owned and Leased Buildings
Owned and Leased Buildings
Office Vehicles
Office Vehicles
Warehouse Operations Equipment
Office Vehicles
Office Vehicles
Office Vehicles
Office Vehicles
Office Vehicles
Warehouse Operations Equipment
ed from the energy consumed • Electricity for production
Operational
Boundaries
Scope 2 by the organization, such as • Electricity for office use
electricity and thermal ener- • Purchased steam
gy. This includes purchased
electricity, purchased steam,
and others.
GHG Emissions
About This Report
·2023 GHG Emissions
Message from the Total GHG Emissions The GHG emission intensity was
Chairman Category 2023 2022
Scope 1: Direct Emissions
tCO2e tCO2e/hundred million RMB. 114,173.40 63,177.34
（tCO2e）
Awards （tCO2e）
In 2023, our total GHG In 2023, the GHG emission Total
emissions amounted to intensity was 76.26 tCO2e/ （tCO2e）
Environment hundred million RMB GHG Emission Intensity
（tCO2e/hundred million RMB of revenue）
Climate Response
Pollution Control and ·GHG Emissions
Ecosystem Protection
Energy indirect GHG emissions (Scope 2)
Resource Utilization and
Circular Economy
Society 200,000.00 183,283.14
Scope 1
Scope 2 150,000.00 100
Governance 114,173.40
GHG Ratio 76.26
Appendix
Direct GHG emissions (Scope 1) Scope 1: Direct Emissions GHG Emission Intensity
·Energy Structure
Electricity
Energy Consumption 36.48% Gasoline
About This Report
Diesel
During the reporting period, our comprehensive energy consumption amounted
Message from the Natural Gas
Chairman to approximately 115,244.89 metric tons of coal equivalent. In terms of energy con-
sumption structure, the highest proportion of comprehensive energy consumption is Liquefied Petroleum Gas
accounted for by electricity and marine fuel, totaling approximately 71.73%. Regarding
Awards 8.87% Thermal Coal
significantly, accounting for 58% of the total greenhouse gas emissions produced from
energy consumption throughout the year. 0.02% Marine Fuel Oil
Environment ·2023 Energy Consumption
Climate Response Total comprehensive energy con- Total comprehensive energy con-
Pollution Control and Energy Type sumption in 2023 sumption in 2022
Consumption Consumption percentage in 2023(%)
(tons of coal equivalent) (tons of coal equivalent)
Ecosystem Protection
Resource Utilization and Electricity (kWh) 342,095,277.67 271,331,451.20 42,043.51 33,346.64 36.48
Circular Economy
Natural Gas (m?) 1,169,092.15 / 1,554.89 / 1.35
Diesel (L) 8,156,804.16 8,346,273.39 10,221.35 10,458.76 8.87
Society
Gasoline (L) 433,068.61 / 465.17 / 0.40
Liquefied Petroleum
Governance 11,120.10 4,268.80 19.06 7.32 0.02
Gas (kg)
Steam (t) 139,112.81 74,541.45 13,173.98 7,059.08 11.43
Appendix
Marine Fuel Oil (t) 28,432.67 / 40,618.91 / 35.25
Thermal Coal (t) 10,007.03 8,012.84 7,148.02 5,723.57 6.20
Thermal Energy (GJ) / 3,204.96 / 109,353.27 /
Total 115,244.89 100.00
Energy Conservation and Emissions Reduction Action
Digital technology is an important clean technology in improving resource
About This Report utilization efficiency, reducing energy consumption, and promoting the
low-carbon transformation of industrial chains. We continue to advance
our digital strategy by innovating and actively developing iterative digital
Message from the products. While reducing greenhouse gas emissions from our own opera-
Chairman tions, we contribute to the low-carbon or decarbonization development
of the industrial chain, thereby driving our business activities to have a
positive impact on the environment.
Awards
Environment Intelligent Energy and Carbon
Management Platform--"ITG
Climate Response
Carbon Chain"
Pollution Control and
Ecosystem Protection The "ITG Carbon Chain" Intelligent Energy and Carbon Management
Resource Utilization and Platform utilizes the independently developed zero-carbon industrial
Circular Economy Internet platform by our subsidiary, Xiamen Keerun OCSMARTER, as its
technical foundation. It can real-time collect multi-dimensional energy
and carbon emission data, construct energy and carbon emission mod-
Society els, and achieve digital intelligence of energy and carbon management in
multiple scenarios, providing technological support for efficient carbon
accounting and precise energy conservation and emission reduction. It
Governance can achieve integrated energy management covering "heating, electric-
ity, cooling, gas, and water" as well as "source, grid, load, storage, and
charging," empowering users to complete the carbon management cycle
Appendix
of "efficient carbon calculation, continuous carbon reduction, and scien-
Intelligent Energy and Carbon Management Platform--"ITG Carbon Chain"
tific carbon management." The "ITG Carbon Chain" s Intelligent Energy
and Carbon Management Platform has been applied in more than 10
projects including Keerun Tire (Rizhao) and Zhonghong Kelun Pharma-
ceutical Factory.
During this reporting period, the "ITG Carbon Chain" intelli-
gent energy and carbon management platform has received
Highlight
numerous awards, including：
Empower tire factories for energy
conservation and emission reduction
About This Report
The "ITG Carbon Chain" has helped boost the
The "2023 Supply Chain Case of
annual production of zero-carbon steam to
Message from the Digital Intelligence"
over 100,000 tons at both Keerun Tire (Rizhao)
Chairman from the Alliance of Industrial Internet and Keerun Tire (Dezhou). The combined cost
under the Ministry of Industry and reduction for both factories amounts to ap-
Awards Carbon Chain," tire factories achieve intelligent
digitalization and low-carbon transformation,
The third prize thereby accomplishing energy-saving, cost-re-
Environment duction, quality-enhancing, and efficiency
in the Carbon Peaking and Carbon
goals.
Climate Response Neutrality Innovation Competition "New Keerun Tire (Dezhou) Smart Biomass Thermal Power Station
Pollution Control and Green Cup" held by the China Academy
Ecosystem Protection of Information and Communications
Resource Utilization and Technology under the Ministry of
Circular Economy
Highlight
Industry and Information Technology Empower Zhonghong Kelun
Pharmaceutical Factory to enhance
quality and efficiency
Society The "Qingxin 2023 Practice Pioneer "ITG Carbon Chain" has assisted the subsidiary of
Digital Intelligence Project" Zhonghong Pulin Medical Products Co.,Ltd., Zhong-
Governance from the National Business Daily hong Kelun Pharmaceutical Factory, in achieving
low-carbon transformation and digital intelligence
management of its factory. Through equipment up-
Appendix
The "Selected Cases of Excellent grades and digital management systems, the opera-
Practice in Green and Low carbon tional efficiency of air compressors and chillers has
been significantly improved. This has resulted in an
Development of China Enterprises
annual reduction of approximately 1,694 tons of emis-
sions for the factory, saving nearly 1.37 million RMB in
from the China Enterprise Confederation Smart Air Compressor Station in Zhonghong Kelun Pharmaceutical Factory costs.
"ITG Atlas" Pulp and Paper Industry The Energy-saving Renovation of the
About This Report
Solutions Vessels "Bailuzhou" and "Fenghuanghai"
Message from the "ITG Atlas" Pulp and Paper Industry Solutions - A Pulp and To promote energy conservation and emission reduction actions and to effec- Flow guide tube: Install guide wheels/guide
Chairman Paper Industry Internet Platform that breaks through industry tively implement the Energy Efficiency Existing-Ship Index (EEXI) rules set by the blades in front of the screw propeller to im-
barriers, enabling seamless integration with upstream facto- International Maritime Organization (IMO), which requires existing bulk carriers prove the uniformity of inflow to the screw
ries' orders. It establishes a complete closed-loop covering to reduce carbon emissions by 20% compared to 2019 levels, we have carried out propeller and the separation flow, generate
the entire chain from "upstream raw materials - midstream energy-saving transformations on our own vessels, namely, the "Bailuzhou" and additional thrust, reduce the energy loss of
Awards
production - downstream sales," thereby assisting the pulp "Fenghuanghai". the wake, and increase sailing distance by
and paper industry in improving quality and efficiency. 3%-7%.
Environment
"ITG Atlas" Pulp and Paper Industry Solutions utilizes block- Vortex eliminators: Add small fins equal
chain technology in the pulp industry's Internet platform to to the number of propeller blades on the de-
Climate Response
address challenges such as numerous participants, insuf- flector cap of the propeller to eliminate the
Pollution Control and
ficient trust, and long-term reliance on paper documents. energy loss of the hub vortex of the screw
Ecosystem Protection
Simultaneously, the tamper-proof nature of blockchain tech- propeller, increasing sailing distance by
Resource Utilization and
Circular Economy
nology ensures the reliability of multi-party collaboration in 2%-5%.
the supply chain. Data and documents on the blockchain can
Rudder bulb: Reduce water resistance,
circulate securely, enabling paperless document applications
improve rudder efficiency, increasing sailing
and effectively reducing carbon emissions generated during
Society distance by 1%-3%.
the use and transmission of paper documents.
Installation of electric heaters: During the
During this reporting period, "ITG Atlas" Pulp and Paper
Governance ship's anchorage period, use electric heaters
Industry Solutions, an Internet platform for the pulp industry,
for the auxiliary engine fuel steam heater,
was awarded the third prize in the Industrial Collaboration
the lubricating oil separator steam heater,
Appendix category of the inaugural Professional Competition for Digital
the main engine cylinder liner steam heat-
Scene Innovation for State-Owned Enterprises. Additionally, it
er, and the domestic water steam heater in
was selected as a benchmark case in the "Compilation of Dig-
parallel. Keep the auxiliary boiler warm and
ital Supply Chain Benchmarking Cases (2023)" by the China
pressurized, and stop supplying steam. This
Academy of Information and Communications Technology.
can achieve fuel savings of approximately 1
ton per day.
About This Report
Message from the
Chairman
Awards
Pollution Control and
Environment Biodiversity and ecosystems are the foundation of human survival and development. We respect international conventions
such as the "Declaration of the United Nations Conference on the Human Environment" and the "United Nations Framework
Ecosystem Protection
Climate Response Convention on Climate Change", and strictly adhere to relevant environmental protection laws and regulations in China,
Pollution Control and including the "Environmental Protection Law of the People's Republic of China". We have formulated an "Environmental
Ecosystem Protection Protection Policy" aimed at minimizing the negative impact on the environment caused by our business operations. We are
Resource Utilization and committed to creating an environmentally friendly and comfortable working and living environment for our employees, part-
Circular Economy ners, and communities where we operate.
Completed In Progress Biodiversity Protection
Society
In project investment, design, development, and operation stages, we incor-
porate environmental impacts into project assessment and decision-making
Governance 1 Promote garbage classification work actively to reduce the use of plastics
processes. We avoid engaging in business activities unrelated to ecological
protection in important ecological conservation areas and their vicinity,
Appendix Control strictly the use of water resources in production and operation, achieving such as World Heritage Sites and protected areas listed in the International
ensure the integrity and effectiveness of habitat and biodiversity protection.
Actively engage in environmental protection public welfare activities, advocating for
We advocate for projects and activities that promote biodiversity protection,
aiming to collectively achieve ecological protection.
Pollutants Emissions Control
We strictly adhere to relevant laws and regulations such as
About This Report the "Environmental Protection Law of the People's Republic Waste Gas Emissions Management
of China," the "Water Pollution Prevention and Control Law of
the People's Republic of China," the "Air Pollution Prevention Our subsidiary, Keerun Tire (Rizhao) Factory, has been included in the list of key environmental supervision units for 2023 by the Rizhao
Message from the and Control Law of the People's Republic of China," and the Municipal Government in Shandong Province. The Rizhao factory currently has 14 air pollutant emission outlets, with the main outlets
Chairman "Law of the People's Republic of China on Prevention and equipped with online automatic monitoring devices for pollution sources in accordance with regulations, which are connected to the
Control of Environmental Pollution by Solid Waste." Through- local ecological and environmental department. The environmental protection and governance facilities for waste gas treatment currently
out our business operations, we aim to reduce emissions of employ the following technologies: dust removal using bag filters, cotton filtering, electrostatic oil removal, zeolite adsorption, CO catalytic
Awards air pollutants, hazardous waste, and wastewater. combustion, SNCR denitrification + multi-tube wet dust removal + desulfurization tower, etc.
According to data from the pollution source automatic monitoring system of the ecological and environmental management department,
Environment the emissions of major air pollutants in 2023 is as follows:
Climate Response Average Daily Permitted Emis- Permitted An-
Emission Excessive Emission Vol-
Category Test Item Emission Con- sion Concentra- nual Emission
Pollution Control and Method emissions ume (Tons)
centration tion Volume
Ecosystem Protection
Non-methane Compliant
Resource Utilization and
Waste Gas total hydro- emissions after 1.35 mg/m3 10 mg/m3 None 0.12869 /
Circular Economy carbons treatment
Society
Waste Management Noise Management
Governance
Keerun Tire (Rizhao) Factory has signed hazardous waste Keerun Tire (Rizhao) Factory conducts regular on-site noise emission
Appendix transfer and disposal contracts with qualified hazardous waste monitoring (commissioned to third-party monitoring agencies) in ac-
disposal units, and has filed transfer information with the cordance with the requirements of the environmental impact assess-
Wulian Sub-bureau of the Rizhao Environmental Protection ment report and approval, and all monitoring results comply with
Bureau to ensure the legal and compliant transfer and disposal the relevant requirements of Category 2 of the "Emission standard
of hazardous waste. In 2023, the Keerun Tire (Rizhao) Factory for industrial enterprises noise at boundary" (GB12348-2008) and the
generated 29.984 tons of hazardous waste, of which 25.973 tons "Environmental quality standard for noise" (GB3096-2008).
were transferred and disposed of.
About This Report Household Waste Classification Action of Plastic Minimization and Carbon Reduction
We actively implement household waste classification, continuously improve inspection, promotion, and The extensive use of plastic will have a serious impact on the ecosystem, particularly on
Message from the training efforts, standardize the classification and disposal of household waste, and manage records accord- the habitats of birds and fish. We actively advocate for reducing plastic usage to alleviate
Chairman ingly. We summarize the classification work through monthly reports and other means. Furthermore, we plastic pollution issues.
specifically require all departments and operating units to accurately dispose of lunch boxes, office paper,
discarded masks, and other waste to avoid secondary pollution. We conduct irregular inspections of waste In 2023, we did not use any disposable paper cups or plastic cups.
Awards od, our company headquarters conducted a total of 4 training sessions on waste sorting and the explanation Our company's chemical sector provides fully biodegradable plastic PBAT.
of sorting locations. Through these training sessions, we disseminated to all employees the ecological risks This plastic can be decomposed through composting after disposal, which
caused by unsorted waste, knowledge on household waste sorting, and the distribution of garbage bins in helps reduce the environmental harm caused by plastic.
Environment the building. This effectively enhanced employees' awareness of waste sorting and promoted the improve-
ment of waste sorting practices.
Our company's paperboard sector integrates resources from sugarcane pulp
Climate Response and bamboo pulp, promoting the use of paper as a substitute for plastic to
Pollution Control and reduce plastic production and decrease environmental pollution.
Ecosystem Protection
Resource Utilization and
Circular Economy
"Passion for Nature and Dreams for Future" Environmental Protection Charity
Society To address climate change and support the development of envi-
ronmental public welfare init i atives, our "Flying Love and Dream"
During this reporting period, we launched
public welfare brand, building upon its existing ethos, combines our
sustainable coffee cups made from discarded
Governance ESG governance objectives. We have selected environmental issues
such as natural resource conservation, enhancing energy efficiency, coffee grounds and "Flying Love and Dream"
and addressing climate change, along with social issues such as lifestyle blind boxes made from biodegradable
Appendix human resources, product responsibility, and social responsibility. resin materials, in conjunction with the theme
Under the theme "Passion for Nature and Dreams for Future," we are of "World Environment Day". Our aim is to
conducting a series of activities aimed at achieving the green trans-
promote awareness of "plastic Minimization
formation of our public welfare brand. Our goal is to engage society
and carbon reduction", thereby contributing to
in collectively safeguarding the beauty of our blue skies, green lands,
and clear waters through action. sustainable development.
Sustainable coffee cups made from discarded coffee grounds
About This Report Water Resources Conservation
Message from the We strictly adhere to relevant laws and regula-
Chairman tions such as the "Energy Conservation Law of
the People's Republic of China," the "Renewable
Energy Law of the People's Republic of China,"
Awards
China" to protect water resources. We develop
and utilize water resources legally and compli- Resource Utilization
antly, strengthen water resource management,
Environment
improve water resource utilization efficiency, and Circular Economy
Climate Response and reduce water waste. In our business opera-
tions, we actively promote water conservation Development of a circular economy and promotion of resource con-
Pollution Control and
Ecosystem Protection and advocate for it, regulating the use and servation, intensification, and recycling serve as powerful supports
management of water in our internal production for the country to achieve its dual-carbon goals. We integrate the
Resource Utilization and
Circular Economy and daily life to reduce water waste. We also ac- perspective of resource conservation, intensification, and recycling
tively promote businesses related to recyclable into our overall development strategy. We actively promote the sus-
resources such as waste paper to reduce defor- tainable and circular utilization of resources in investment projects
estation, promote soil and water conservation, and throughout the supply chains of traded goods. Our commitment
Society
and protect the ecological environment. is to achieve maximum economic and social benefits with minimal
environmental costs, contributing to the construction of a circular
Governance society.
Completed In Progress
Completion
Appendix 2023 Management Targets
Status
The design of our headquarter, ITG Center, fully implements green and sustainable concepts
The annual sales volume of recycled pa-
and considers the conservation of energy, water, and materials, thus obtaining the two-star 1 per shall not be less than 1.4 million tons
rating of national green building labels. We realized energy conservation by installing HVAC
and rainwater harvesting systems and launching water-saving products. The annual sales volume of scrap steel
"Forest-Pulp-Paper" Trade of Recycled Steel
Industry Materials
By integrating resources across the industry
Sustainable Wood Procurement
About This Report We actively engage in the trade of recycled steel ma-
chain, we provide comprehensive integrated
terials to reduce waste of steel resources. During this
supply chain services to industrial customers. In the upstream industry, we prioritize the procurement of
reporting period, our business scale in recycled steel
Message from the We upgrade the linear "forest-pulp-paper" sustainable wood, such as plantation forests in New Zea-
material trading reached 2,087 million RMB, with
Chairman supply chain to a networked service system, land and planned reforestation in Europe and America.
sales volume of 776,500 tons and contract signing
thus promoting the green and high-quality These forests, which have been certified or are properly
volume of 642,000 tons.
development of the "forest-pulp-paper" in- managed, have harvesting plans that align with ecologi-
dustry. cal principles. They also implement timely replanting of
Awards
seedlings for replacement and renewal. Additionally, we
seek to collaborate with large-scale timber processing
Environment suppliers to maximize the utilization efficiency of wood
through production and grading, thereby achieving the
Climate Response goal of forest protection.
Pollution Control and
Ecosystem Protection
Resource Utilization and
Circular Economy
Green Pulp Substitution Renewable Resources Utilization
Society
We participate in chemi-mechanial pulp trading in the in- We collaborate with paper mills downstream of indus-
Governance dustry's midstream, which allows high fiber resource utili- try to sell waste paper and promote resource recycling.
zation and only 1/4 of the pollutant emissions compared to During this reporting period, our sales of recycled paper
traditional chemical pulping methods. We supply bagasse exceeded 1.4 million tons, reducing the felling of around
Appendix pulp and bamboo pulp for pulp molding, replacing plastic 14.48 million trees and protecting approximately 841
with paper to reduce plastic production and usage. We try square kilometers of forest.
hard to reduce deforestation by developing various green
pulp markets and leveraging sugarcane pulp and bamboo
pulp made from bagasse, a sugar production waste.
Society
Among which
About This Report Total Social
Contributions Total Tax
Payment
million RMB
Message from the 2,627.93
Chairman
million RMB
Social Con-
tribution Per 3.01 Employee
Compensation
Share RMB
Awards 1,721.45
million RMB
Environment
Number of
Employees 6,947 Dividends Paid to
Shareholders
persons
Society
million RMB
Employees
Innovation-driven
Total Occupa-
tional Health 38.03 Interests Paid to
Creditors
and Safety million RMB
Development, Suppliers
and Clients
Investment 1,208.34
million RMB
Rural Revitalization and
Social Contribution
Number of
Work-related 0 External
Donations
Fatalities persons
Governance 1.53
million RMB
Appendix
Volunteer
Service 1,605 Subtract: Amount
of fiscal subsidies
Hours hours received
Total Em- million RMB
ing Hours hours
About This Report
Message from the
Employees
Chairman
Awards Completed In Progress
We adhere to the philosophy of "World-class enterprises need world-class talents" and have estab-
lished a "Pioneering Culture" system with " Leadership, Responsibility, Hardworking, and Partner-
Environment
ship " as our core values. Guided by the "Pioneering Culture", we empower the development of Formulate"Labor Rights Protection Policy"and "Community
first-class enterprises. By perfecting a "results-oriented" value evaluation mechanism and a "striv- 1 Policy", provide equal employment and development oppor-
Society er-oriented" value distribution mechanism, we create a community of interests, providing employ- tunities, and create a fair and just professional environment
ees with a fair, healthy, inclusive, and upward-working environment to achieve mutual creation and
No incidents of workplace discrimination or harassment oc-
Employees sharing. 2 curred throughout the year
Innovation-driven
Development, Suppliers No penalties incurred due to violations of relevant labor laws
and Clients
Human Rights Protection 3 and regulations or employment discrimination
Rural Revitalization and
Social Contribution The average training duration provided to employees through-
We adhere to the Universal Declaration of Human Rights, the United Nations Guiding Principles on 4 out the year should not less than 10 hours per person
Business and Human Rights, and the International Labor Organization's Declaration on Fundamen-
Governance The number of major accidents or significant incidents should
tal Principles and Rights at Work. We strictly comply with the Labor Law of the People's Republic of
China, the Labor Contract Law of the People's Republic of China, and relevant laws and regulations
Appendix on labor rights protection in the regions where our business operates. We have formulated the
"Labor Rights Protection Policy," which applies to all entities under our financial and operational
control and all employees (including contractors), aiming to fully safeguard the basic rights of em-
There should be zero incident with direct economic losses
ployees, such as human rights and occupational health. We provide comprehensive training mech- 7 exceeding 1 million RMB
anisms and fair career development opportunities to employees, thus promoting the sustainable
development of human capital within us. Furthermore, we encourage suppliers, partners, and other The annual occupational safety and health training for em-
stakeholders to join in implementing the init i atives and requirements proposed in our "Labor Rights 8 ployees and contractors should not be less than 20,000
participants and 30,000 hours
Protection Policy".
During the reporting period, we rigorously enforced
the "Labor Rights Protection Policy" and other inter-
nal regulations related to employee recruitment and
benefits. No penalties were incurred due to viola-
About This Report tions of laws and regulations concerning labor rights
Male Male
protection in the regions where our business oper-
ates. As of December 31, 2023, we had a total of 6,947
Message from the
Chairman employees. Employee Gender Ratio Gender Ratio in Management
Awards 8% 10%
Environment
Under 30 Graduates
Society 62% 30-50 Undergraduates
Over 50 45% Others
Employees
Employee Age Structure Employee Education Structure
Innovation-driven
Development, Suppliers
and Clients
Rural Revitalization and
Social Contribution
Governance
Appendix China
Others
Employee Nationality Structure
About This Report Anti-discrimination and Anti-harassment Prohibition of Forced Labor and Child Labor
We adhere to the principle of equal employment and are committed to We strongly oppose all forms of forced labor, child labor, slavery, servitude, and human trafficking.
Message from the creating a diverse and inclusive work environment. We practice fairness in In the "Employee Recruitment Measures" and the "Guidelines for Risk Control of Labor Outsourc-
Chairman
employee recruitment, promotion, and incentives, providing equal opportu- ing, Labor Dispatch Units, and Personnel (Trial)," the ages of candidates and personnel from out-
nities without discrimination based on gender, nationality, race, religion, age, sourcing companies are clearly specified. During the recruitment process, strict age verification is
Awards ees. Any form of discrimination and harassment, including but not limited to regulations.
sexual harassment, threats, and intimidation, is strictly prohibited.
During the reporting period, there were no risks of child labor or forced labor in any of our operat-
Environment During the reporting period, we did not experience any incidents of discrim- ing locations, and no incidents of child labor, minors in hazardous work, or forced labor occurred.
ination, harassment, or violations of compliance and fairness in recruitment
and hiring procedures.
Society
Employees
Innovation-driven
Development, Suppliers
and Clients
Rural Revitalization and Protection of Women Employees' Rights
Social Contribution
We place great importance on protecting the rights of female employees,
Governance
ensuring equal pay for equal work, and prohibiting gender discrimination.
We have signed a "Special Collective Contract for the Protection of Female
Appendix Workers' Special Interests," fully guaranteeing female employees' rights to
pregnancy leave, maternity leave, breastfeeding leave, childcare leave, etc. We
continuously improve various welfare programs for female employees, such
as setting up lactation rooms, providing personalized health advice and treat-
ment plans through "one-on-one" health consultations, to provide special
labor protection for female employees, creating a working environment that
respects the special needs of women and balances work and development. "Love's Ten Square" lactation room, catering to the needs of "working-and-nursing mothers"
About This Report
Protection of Employee Democratic Rights
We respect the democratic rights and freedom of speech granted to employees
Message from the by the constitution and laws, fully guaranteeing employees' rights to be informed,
Chairman participate, express, and supervise. We value employee communication, actively
promote collective bargaining and mediation mechanisms, and provide diversified
channels for employees to express their opinions and grievances. In the demo-
Awards cratic formulation, modification, negot i ation, and decision-making processes of
regulations and systems involving employee rights, we fully solicit the opinions of
employee representatives. We have signed Collective Contract, Special Collective
Environment Contract for the Protection of Women Workers' Special Interests, and Wage Collec-
tive Contract to fully protect employees' democratic rights.
Society
Employee Satisfaction Survey Employee Complaints and Protection
Employees
Innovation-driven
We conduct democratic assessments to effectively understand em- In response to violations of human rights protection, we have established corresponding complaint
Development, Suppliers
and Clients ployees' demands regarding career development, occupational health, channels and implemented effective procedures to ensure prompt and comprehensive investigation.
Rural Revitalization and compensation and benefits, and other aspects. We manage potent i al
If any employee encounters situations that violate human rights protection, they can file a complaint
Social Contribution human rights risks such as workplace discrimination, harassment, and
with the Human Resources Department or Labor Union. The CEO Office, Human Resources Depart-
overwork, and take preventive and corrective measures to promote
ment, and Risk Compliance Department collaborate to handle complaints, including labor disputes
Governance a more inclusive, healthy, and diverse work environment. During the
and violations of human rights protection.
reporting period, we conducted an employee satisfaction survey cov-
ering 85% of employees. The average satisfaction score of surveyed If the investigation confirms the validity of the allegations, in accordance with relevant laws, regu-
Appendix employees was 8.98 out of 10, representing a 6% increase compared lations, and internal policies, we take necessary punitive actions against the implicated employees
to the same period last year. Among the surveyed employees, 87% and provide necessary comfort to the victims and their families, ensuring that the rights of the
reported high levels of happiness. victims or complainants are protected. All information about victims or complainants is kept confi-
dent i al to prevent retaliation.
Smooth Career Development Pathways Employee Compensation
We have formulated internal management systems such as the "Salary Management System," We adhere to the principles of "fairness, performance linkage, incentive, and talent attraction" in
About This Report "Performance Management Regulations," "Salary and Benefits Management Regulations for Over- employee compensation. Employee compensation consists of fixed wages (including basic wages
seas Employees," and "Implementation Rules for Enterprise Pension Schemes" in accordance with and position wages), allowances, variable pay, and benefits. By signing the "Wage Collective Con-
relevant laws and regulations such as the "Contract Law of the People's Republic of China", "The tract," we commit to implementing minimum wage standards not lower than the requirements of
Message from the Regulation on the Implementation of the Contract Law of the People's Republic of China", and "The laws and regulations. We also reference local and industry wage levels and relevant wage collective
Chairman Company Law of the People's Republic of China". These systems provide employees with compet- bargaining situations to determine personnel income standards based on factors such as job attri-
itive, fair, and reasonable compensation and benefits, and we commit to implementing minimum butes and competency levels. Employee grading and salary determination are conducted annually,
wage standards not lower than the requirements of laws and regulations to ensure equal pay for considering factors such as employee capabilities. Additionally, a review of employee salary levels
Awards equal work. We implement open, fair, and just principles of employee promotion management. and compensation matching is carried out each year.
During the reporting period, we revised the "Career Management Regulations," "Employee Rota-
Employee Performance Management
Environment tion Management Measures," and "Internal Examination Management Measures," implementing
a dual-track career development system for management and professional roles. By establishing
objective, specific, and unified promotion standards and evaluation methods, we strive to provide We have established and continuously optimized a scientific performance management system,
Society employees with comprehensive training mechanisms and fair career development opportunities, utilizing comprehensive performance evaluation methods such as "KPI (Key Performance
providing diverse employee training through the establishment of a scientific promotion manage- Indicators) + 360-degree performance appraisal." We implement performance assessment
Employees
ment process, creating a fair and just talent environment. Additionally, through the implementation cycles such as quarterly, semi-annually, and annually. Combining departmental and individual
Innovation-driven
of employee stock ownership plans, we are committed to achieving mutual creation and sharing of performance plans, we apply performance evaluation results to aspects such as bonus distribution,
Development, Suppliers
and Clients personal and corporate values. salary adjustments, job grade adjustments, training, career development, and commendation,
Rural Revitalization and fully leveraging performance management to guide and motivate employee development.
Social Contribution
M4 Strategic Manager
Performance communication is integrated throughout the entire performance management
M3 Senior Manager process. performance interviews are conducted at least once a year. The interviews are conducted
Governance
to discuss the assessed individual's work performance, behavioral performance, next year's work
P5 Expert Level M2 Middle Manager goals, and improvement plans. Regular reporting and periodic guidance are provided, reviewing
Appendix performance indicator completion, conducting performance reinforcement and ongoing tracking,
P4 Senior Level M1 Junior Manager assisting in implementing improvement measures, ensuring closed-loop management, achieving
scientific evaluation, rational allocation, and motivating employees to create value, forming a vir-
P3 Core Level tuous cycle. If the assessed individual disagrees with the performance evaluation results, they can
appeal to the performance assessment group or relevant departments. The relevant departments
P2 Executive Level must ensure that within 10 working days of the appeal being filed, the employee receives a fair and
objective assessment and response, ensuring the legitimate rights and interests of the appellant
P1 Support Level are respected.
Employee Incentive Employee Welfare We provide employees with benefits such as marriage leave, maternity leave, prenatal examination leave,
About This Report caregiving leave, breastfeeding breaks and maternity leave, childcare leave, nursing leave, bereavement leave,
Mechanisms Benefits
annual leave, and other statutory holidays; we legally contribute to employees' social insurance and housing
provident fund, and offer supplementary medical insurance; on-duty employees enjoy benefits such as hygiene
Message from the
Taking a long-term perspective, we utilize equity incentives allowances, lunch subsidies, transportation allowances, heatstroke prevention allowances, holiday bonuses, year-end double salary, annual health
Chairman
as a mechanism for profit sharing, effectively aligning the in- check-ups, etc.; we implement an enterprise annuity system to provide retirement benefits for employees through additional pension plans.
terests of shareholders, company, and key team members,
For expatriate employees, they can choose between two options: remote permanent medical coverage or temporary remote medical coverage. We
Awards purchase overseas insurance (including overseas emergency medical rescue, coverage for infectious disease death and critical illness, accident and
During this reporting period, we implemented a Restricted
illness outpatient and inpatient allowances, travel property loss, third-party liability, etc.) for expatriate employees (non-residents of the country of
Stock Incentive Plan, granting a total of 20,677,200 shares
assignment) who apply for it, ensuring the health and safety of expatriates abroad.
to 397 mid-level management and key employees.
Environment
Society "4321" Integrated Talent Development
Framework
Employees Multi-Dimension Talent Improve Quality and Efficiency,
Innovation-driven We organized a total of
Development System 4 Major Talent
Empower for Mutual Success
Development, Suppliers
and Clients 1,281 Traits Pursuit of Excellence
Responsibility and
Dedication
Preservation and
Innovation
Efficient Collaboration
employee training
Rural Revitalization and sessions
We have established and continuously improved the "4321" Pillar 1 Cultural Leadership Pillar 2 Professional Advanccment Pillar 3 Managemnet Progression
Social Contribution
talent development system, based on the concept of "Pio- Case Competition Strategic Manager
Internal Knowledge Talent Development Institute
neering Culture". We distilled four major talent characteris- North Star Program
Governance Inheritance Middle-level Cadre
tics - "Pursuit of Excellence, Responsibility and Dedication, Elite Magic Cube Elite Plan
Cultural Curriculum Outstanding Young Cadre
Preservation and Innovation, Efficient Collaboration" - and External Experience
with a total of
Appendix four key abilities, guiding the talent development goals.
Subaidiaty Company
We established a three-pillar training program system of employees participated Action Plan Empower Professional Talent Development
Lines Plan
"Cultural Leadership, Professional Advancement, and Man-
Promotion of Operating Units Employees with
agement Progression", emphasizing talent development to Pioneering Activities Position-specific Skills Two Years of Tenure
Training Talent Reserve Plan
ensure the capacity building of the HR team and internal
trainers. Centered around the positioning of "the world of
received 6 awards
education at your fingertips", we continuously enhanced
the digital learning platform, ITG WE-Learning.
from industry organizations
for learning init i atives
Highlight Highlight Highlight Highlight
Internationalized Talent Program North Star Program New Talent Plan Elite Plan
In 2023, we held our first "Internationalized The "North Star Program" corporate culture The project's training objectives are "role The plan's training objectives are "breaking
About This Report Talent Program" specialized in international special training, employing an integrated transformation, management efficiency stereotypes, transforming and upgrading, and
talent development. The Internationalized approach of "teaching and practice. " We enhancement, and innovation stimulation." broadening perspectives." In line with our
Talent Program aimed to cultivate confident, organized 31 sessions to promote the course It empowers outstanding young cadres to requirements for change and development,
Message from the capable, and willing international talents "Pioneering Excellence" with coverage of near- transit into top-notch managers by focusing the project has devised a four-level cognitive
Chairman through specialized training. It aimed to ly 5,000 participants, including 11 sessions on four aspects: "management strategy, model: "self-awareness, understanding
strengthen the understanding of international held remotely. The init i ative also launched cross-border communication, strategic others, understanding the world, and
strategies, enhanced skills in overseas busi- the "Pioneering Declaration SHOW" activity, orientation, and business thinking." Through understanding wisdom." Following the logical
Awards adaptability, thereby facilitating the smooth rate culture learning. This init i ative effectively Proposal Workshop," participants engage in - management practice focus," the project
operation of our international business. The mobilized employees to participate in online practical work scenarios, critically evaluate, systematically designed empowering
program is designed around talent devel- corporate culture learning community activi- reflect, and propose actionable solutions. courses under the themes of "leadership,
Environment opment objectives and integrates the entire ties, deeply embedding the understanding of This workshop outputs innovative proposals strategic management, and management
chain of talent selection, nurturing, and the "Pioneering Culture" within the organiza- grounded in practicality, ensuring seamless practice focus." The aim was to assist middle-
utilization., focusing on empowering training tion. integration between "learning" and "practical level cadres in elevating their positions,
Society with the main themes of "global perspec- application" to enhance business quality and broadening their horizons, and providing key
tive, overseas expansion capabilities, and efficiency. In 2023, there were a total of 46 insights on digitalization, internationalization,
Employees cross-cultural integration." The first batch of participants in the New Talent Plan, with an team management, and other crucial
Innovation-driven
talent pool, receiving priority consideration identified improvement points in the plan
Development, Suppliers
and Clients for subsequent advanced empowerment and and proposed management work plans. In
personnel deployment. 2023, there were 38 participants in the Elite
Rural Revitalization and
Social Contribution Plan, with an average satisfaction score of 91
points.
Governance
Appendix
All-Staff Involved
Occupational Health and
Safety Management Work Safety Management
About This Report Work Safety Committee
We strictly adhere to relevant laws and regulations such We have established a Work Safety Committee (hereinafter
Message from the as the " Law of the People's Republic of China on Work referred to as the "Committee") composed of board chairman,
Chairman senior management, and the principal responsible persons of
Safety " and industry standards, and reference interna- Committee Vice Committee Members
tional standards such as ISO 45001. We continuously secondary work safety key units. The chairman of the board of Director Director Board of Director Members,
Chairman of the President and Deputy Senior Management, and the
improve occupational health and safety management directors serves as the director of the Committee, and the presi-
dent and deputy secretary of the Party Committee serve as vice Committee Charge of Key Units
Awards system. Using the " ITG Intelligent Brain - Safety Man-
agement System" as a focal point, we strengthen the directors of the Committee. The Committee has set up a Work
implementation of work safety responsibilities, enhance Safety Committee Office (hereinafter referred to as the "Of-
Environment guidance and supervision of work safety in our subordi- fice"), with the deputy secretary of the Party Committee serving Work Safety Committee
as the director of the Office and the deputy director of the CEO Office
nate business units, effectively prevent and resolve vari-
ous safety risks, and resolutely prevent the occurrence of Office serving as the vice director of the Office. The CEO Office
Society is responsible for the daily work of the Office, and the members
work safety accidents.
Employees of the Office are composed of full-time safety management
During this reporting period, after consulting relevant Director Vice Director Members
personnel from the CEO Office and work safety leaders from Deputy Secretary Deputy Director of Work Safety Leaders from
Innovation-driven
departments, we organized the revision of work safety various key units. We link the performance compensation of the of the Party the CEO Various Key Units and Full-time
Development, Suppliers
Committee Office Safety Management Personnel
and Clients systems and emergency plans, including the " Major Safe- managements with the safety and environmental performance from the CEO Office
Rural Revitalization and ty Risk Announcement and Warning Regulations," " Safety of the managed units by formulating regulations and systems
Social Contribution Hazard Investigation and Management Regulations," " such as the " Regulations on Work Safety Management" and the
Safety Risk Identification, Assessment, Grading, and Con- " Full Work Safety Responsibility System." If a significant safety
Governance trol Management Regulations," and " Flood and Typhoon Key Work Safety Units
or environmental responsibility incident occurs during the
Emergency Plan." We actively urged all units to advance annual performance assessment period, resulting in significant
safety standardization construction, resulting in the adverse effects on us or causing losses to state-owned assets,
Appendix addition of three new Level-3 standard-compliant units the annual performance salary and deferred performance
in work safety within the year, with two units passing the salary of the principal responsible person of the unit should The First Responsible Person Members
standard-compliant reexamination. be deducted. We strictly implement the all-staff work safety re- The Persons in Charge of Various Leaders from Key Units and
Key Units Other Work Safety Management
sponsibility system, signing " Work Safety Target Management Personnel
Responsibility Letters" at all levels to achieve the principle of
"work safety, everyone's responsibility," forming a top-down,
all-staff participation work safety management framework.
During this reporting period, we organized a total of 7 special work safety meetings, where safety risks were Identification, Prevention, and Management of Safety Risks
thoroughly analyzed and assessed. Through these meetings, we tightened the work safety responsibilities
of leaders at all levels and the main responsibilities of various operating units. Functional departments and
During this reporting period, we revised and improved the " Safety Risk Identification, Assessment,
operating units were organized to refine and decompose work safety objectives and tasks at each level, and
About This Report " Work Safety Target Management Responsibility Letters" were signed accordingly. Following the principle
Grading, and Control Management Regulations," "Safety Hazard Investigation and Management Reg-
ulations," and " Major Safety Risk Announcement and Warning Regulations" and other regulations
of "horizontal to the edge, vertical to the bottom," we ensured full coverage across all staff. Throughout
to standardize work safety risk management. Through comprehensive identification and control,
the year, there were no fatalities or major work safety accidents, no incidents resulting in severe or above
Message from the we regulated safety risks in various operating units during the production and operation processes,
Chairman injuries, and the incidence rate of occupational diseases remained at 0.
including potent i al hazards and significant risk sources, limiting possibilities of risks to preventable
and controllable ranges, thus enhancing safety management capabilities.
Digitalization Empowers Work Safety
Awards
We implemented digital management of work safety through the con- The process of identifying hazards and controlling risks
struction of the "ITG Intelligent Brain - Safety Management System".
Environment During the use of the system, continuous improvement were carried out We use LEC evaluation method, risk
Through annual, quarterly, and daily
in functions such as hazard identification and control, contractor person- hazard identification and risk assess- matrix method, and other methods
nel management, etc., making them more comprehensive and efficient ment, we carry out hazard identifica- to identify and assess hazards, and
Society tion work for key areas, key locations, classify four safety risk levels from high
in serving the work safety management.
key processes, as well as operational to low: major risk, serious risk, general
Employees
During this reporting period, we conducted comprehensive safety risk behaviors, occupational health, envi- risk, and low risk, indicated respec-
Innovation-driven ronmental conditions, safety manage- tively by the colors red, orange, yellow,
identification, assessment, grading, control, and the construction of a
Development, Suppliers and blue.
ment, etc.
and Clients dual prevention mechanism for hazard investigation and rectification for
Rural Revitalization and seven units including Keerun Tire (Rizhao) Factory. Additionally, the sec-
Social Contribution ond phase of the work safety management system was implemented. We
organized training sessions on system usage for over 300 employees.
After the classification is completed, Based on safety risk assessment and
Governance Throughout the system implementation process, a total of 1,840 risks
we organize the writing and estab- the types and levels of safety risks, we
were identified and assessed, with 117 hazards detected during inspec- categorize them into four hierarchy
lishment of a safety risk list and da-
tions, all of which have been rectified. tabase, specifying the identified time levels from high to low: operating unit,
Appendix department, team, position. These are
and area, existing risks and levels,
control measures, and recommenda- progressively implemented at each level
tions, to improve safety risk control of position and management, ensuring
measures. that every risk is managed, monitored,
and supervised by individuals.
Safety Hazard Investigation and
Rectification The safety hazard investigations conducted within the year include:
We implement the regulations for safety
About This Report hazard investigation and rectification and the
regulations for major safety risk announce-
to conduct extensive work safety inspections at the 03 Through the " ITG Intelligent Brain - Safety Man-
agement System," we carried out safety hazard
grassroots level. In 2023, a total of 17 safety inspec- self-inspection and self-correction work in various
ment and warning such as "Safety Hazard
tions were conducted, during which 120 issues and subordinate operating units. In 2023, the subordi-
Message from the
Investigation and Management Regulations," hazards were identified. All identified issues have nate operating units conducted a total of 5,627
Chairman
"Major Safety Risk Announcement and Warn- been rectified. self-inspections for work safety hazards, all of
ing Regulations", adhering to the principle which have been rectified with a completion rate
of 100%.
Awards operations, industries, and production and
operation activities." We strengthen the work
Environment
of safety hazard investigation and rectifica- 04 By issuing an "Urgent Notice on Conducting
Emergency Inspection of Gas Safety Hazards," we
tion to prevent safety risks. instructed all operating units to conduct compre
hensive inspections of bottled gas and pipeline
gas. A thorough inspection of gas safety hazards
Society
was carried out in rental properties under the
participated jurisdiction of ITG Health Technology and senior
Employees
Invited external safety experts, utilizing a "check care industry to ensure that all procedures related
Innovation-driven while guiding, targeted measures" approach, com- to gas usage were complete, legal, and compliant.
Development, Suppliers work safety inspections
prehensively and systematically investigated the
and Clients
safety risks presented in various key operating units.
issued
Rural Revitalization and In 2023, a total of 29 external experts were invited
Social Contribution 88 to conduct on-site research and diagnosis for 11
rectification notices locations with higher work safety risks and densely
Governance populated areas, including Ningbo Zhencheng Min-
identified ing Co., Ltd., Hainan ITG Logistics Park, and Keerun
Tire Dezhou Factory. A total of 349 rectification Organized and urged subordinate operating units
rectification items measures were proposed, all of which have been to actively participate in 12 special rectification
Appendix
completed. activities, including "Work Safety Month," special
completed rectification for gas safety, and "119" fire safety
submitted on the phased progress, summaries,
rectifications
and conclusions of various work safety tasks to
ensure the effective implementation of various
completion rate of
special rectification activities.
Environmental Emergency Promotion and Training on Occupational Health and Safety Occupational Health and Safety
Drill Management of the Outsourcing
Party
About This Report We have developed systems such as We advocate organizing occupational health training activities for employees and stakeholders such To safeguard the rights of outsourcing contrac-
the " Flood and Typhoon Emergency as contractors. We encourage suppliers and contractors to conduct occupational health and safety tors, we have formulated the "Labor Rights Pro-
Plan" to deploy emergency pre- management in accordance with international standards such as ISO45001 Occupational Health and tection Policy" and the "Risk Control Guidelines
Message from the paredness and response measures Safety Management System, fostering a healthy and safe working environment together. for Labor Outsourcing, Labor Dispatch Units, and
Chairman for potent i al natural disasters caused Personnel (Trial Implementation)." We require
In terms of safety education and training, we have invited external experts to conduct training on the
by extreme weather due to climate outsourcing agencies to lawfully contribute to
full implementation of the all-staff work safety responsibility system, assessment criteria for major ac-
change. Through regular organization social insurance and purchase employer liabil-
of environmental emergency drills, ity insurance for personnel assigned to work at
Awards of the all-staff work safety responsibility system, aiming to prevent safety accidents from the source.
we enhance employees' emergency various operating unit. They must also provide
We urged all operating units to remain vigilant, enhanced safety awareness, acquired necessary
response capabilities. on-site workers with labor protection equipment
knowledge of work safety, and improved hazard identification capabilities to prevent accidents.
Environment that meets national or industry standards. For
During this reporting period, various
Additionally, we actively carried out themed propaganda and education. During Work Safety Month outsourced contractors engaged in hazardous
operating units organized a total of
and Fire Safety Awareness Month, promotional slogans were displayed on the front desk televisions in work, regular medical examinations and occupa-
Society 223 emergency drills according to
tional disease surveys are required, and health
office building. Propaganda materials were also distributed to various operating units through elec-
the annual drill plan. These drills in-
Employees tronic screens, bulletin boards, banners, official WeChat accounts, and our official website, creating a records are established to ensure their health
cluded emergency drills for slope col-
strong atmosphere of work safety. and well-being.
Innovation-driven lapse, flood and typhoon prevention,
Development, Suppliers
and Clients fire safety, crane accident response, Moreover, we organized all employees to participate in activities such as the "Work Safety Knowledge Through conducted surveys on the management
vehicle injury response, and electri- Contest" and the "Chain Worker Treasure 2023 National Work Safety Month Knowledge Competition," of outsourcing agencies and personnel in various
Rural Revitalization and
Social Contribution cal accident response. A total of 3,951 aiming to promote our work safety systems and safety knowledge. operating units, the Office analyzed and sum-
participants took part in these drills, marized the insurance coverage situation and
Governance covering 100% of employees. management issues of outsourced personnel in
each operating unit. Through in-depth discus-
sions with insurance brokers and other relevant
Appendix parties, the Office explored improvements in
outsourcing personnel management to enhance
occupational health and safety management for
outsourced personnel.
During this reporting period, various operating units actively organized 504 safety training sessions
on topics such as "Safety Knowledge Promotion for Working at Heights," "Safety Knowledge Promotion
for On-site Operations," and "Safety Responsibility is Paramount," with a total of 24,881 participants.
Employee Assistance Program Diverse Cultural and Sports Activities
We pay attention to employees' mental health and respect their We strictly implement holiday and working time man-
About This Report Advocate For Healthy personal values. We have long been implementing the Employee agement in accordance with relevant requirements, en-
Work and Living Assistance Program (EAP), aiming to provide care, support, and as- suring that employees enjoy reasonable and sufficient
sistance for the psychological health of all employees and their im- rest time. Additionally, we provide a healthy working
Message from the mediate family members. We continuously enhanced occupational environment for employees and support their mental
Chairman
We advocate for a healthy work-life balance. health service capabilities and protection levels. During this report- and physical health by organizing diverse cultural and
We implement a professional occupational ing period, our EAP program conducted over 10 online live course sports activities.
Awards ployees with consulting services on disease "All-Staff Mental Health Check" project attracted 2,811 participants,
prevention and occupational health protec- and 71 employees signed up for the first phase of the "EAP Ambassa-
tion to avoid the hazards of occupational dis- dor" series training.
Environment eases. Regular psychological health tests are
provided to employees to prevent the impact
of occupational stress on their mental health,
Society
ensuring the physical and mental health and
Employees safety of employees.
Innovation-driven
Development, Suppliers
and Clients
Rural Revitalization and
Social Contribution
Governance
Appendix
About This Report
Message from the
Chairman
Awards Innovation-driven Development, Suppliers, and Clients
Environment
As a trusted global industrial partner, we focused on full industry chain operations, injecting three "chain dynamics" into the industry and society—integrated ser-
Society vices, industry connectivity, and ecosystem co-creation. We rely on six pillars of support: diverse integration, customized solutions, industry depth, partner empower-
Employees ment, cross-border innovation, and sustainable symbiosis. We provide eight types of services to partners, including procurement services, distribution services, price
Innovation-driven
Development, Suppliers
management, logistics services, financial services, market research and development, digital operations, and industry upgrades. By aggregating deep and multidi-
and Clients
mensional resources, we empower upward development and ecological synergy in the industry, creating a resilient foundation for the industry and society and nur-
Rural Revitalization and
Social Contribution turing new value in the industry.
Completed In Progress
Governance
Appendix Continuously enhance the supply chain risk management system, establishing due diligence mechanisms for the supply chain, and ensuring no supply chain compliance
Integrate Industry to Connect and Create Value to Share
About This Report
We rely on core competencies, including access to global
aggregate vertical multidi- and customized solutions
resources and channel layout, professional and agile compre-
Message from the mensional resources By un- for enterprises, covering
hensive risk control systems, a 5A-grade logistics distribution
Chairman derstanding business neds, vertical and horizontal up-
network, and comprehensive financial service capabilities. We
empowering industries to stream and downstream
deeply cultivate eight industry chains including "metallurgy,
move upward and achieve industries
ecological synergy.
Awards agricultural products, rubber, and new energy". We vertically
expand the upstream and downstream of the industry chain
and horizontally enrich the content of the supply chain ser-
Environment vices. From the perspective of full industry chain operation,
We connect Industry
Future and Create we provide customized and integrated supply chain service
Value Growth through solutions, effectively addressing the core demands of produc-
Society
Integration tion and manufacturing enterprises such as stable sources of
Employees goods, cost reduction, and risk control. This strengthens and
Innovation-driven enhances the leading position of the supply chain industry.
Development, Suppliers
and Clients ·On the raw material front, we integrate domestic and for-
Rural Revitalization and eign material procurement demands to lock in raw material
Social Contribution We break the re- We balance short- procurement costs for downstream operations and ensure
strictions between supply term benefits and long- stable supply of goods.
Governance and demand identities, term development,
·At the production end, we offer multimodal integrated lo-
connect cross-border part- continue to reap rewards
gistics services, customizing and different i ating solutions for
ners, and explore financial during their growth,
Appendix factory raw material blending requirements through financial
collaboration and digital creating a sustainable
derivatives such as futures and options.
boundary upgrades. busineess circulation
foundation. ·At the sales end, we leverage global marketing network
to effectively align products with channels, empowering the
entire industry chain to improve quality and efficiency.
Highlight
Heading out along the " Belt and
Road," the cultivation of small cotton
About This Report
seeds has led to the growth of a major
industry.
Message from the
Chairman Since 2016, we have seized opportunities and integrat-
ed into the development of Central Asia, delving deep
Highlight
Highlight into the cotton spinning industry in Uzbekistan, with the ITG Solutions comprehensive
Reducing costs and increasing efficiency scale of cotton yarn imports ranking first in the country services in the polyester industry
Awards
for manufacturing enterprises for consecutive years. In recent years, we have accu- chain to enhance resilience.
rately grasped the window of opportunity for reforms in
Environment Uzbekistan, continuously extending the "textile-clothing"
At a privately-owned steel mill in Xianning City, a procure- Affected by macro factors, mismatches in PTA supply
industry chain in conjunction with local raw materials
ment order for 80,000 tons was divided into three parts and demand in the polyester industry chain have led to
and industrial advantages, supporting local industrial
and purchased globally. With significant fluctuations in issues such as unclear seasonal fluctuations in demand,
Society upgrades. The Boyovut Cotton Textile LLC. In Syrdarya
market prices, this steel mill relied on the global procure- resulting in high inventory and poor turnover for a certain
region of Uzbekistan, cooperated with us, has created a
Employees ment network of Hubei ITG Supply Chain. The material polyester enterprise. ITG Petrochemical Co., Ltd. com-
large number of employment opportunities and export
Innovation-driven warehouse was filled with iron ore from Australia and prehensively assessed the short, medium, and long-term
Development, Suppliers scale for the local area, achieving an export value of 6
Brazil. This ensured the supply of raw materials while needs of this enterprise and introduced ITG Solutions'
and Clients million US dollars in 2023.
also reducing procurement costs by three percent. comprehensive industry services. Utilizing a combination
Rural Revitalization and of futures and spot trading, the partnership aimed to
Social Contribution Anchoring bulk commodity procurement, Hubei ITG Sup- reduce finished product inventory, ensured continuous
ply Chain deeply cultivates the core business of "logistics production, optimized raw material inventory structure,
Governance + trade + import" in bulk commodities, aiming to become reduced costs, and improved efficiency. By leveraging
a leading enterprise in resource-integrated supply chain. our supply chain management advantages and hedging
Nearly half of our products enter China through
It successfully establishes channels for importing coal functions in the financial derivatives market, this solution
Appendix Xiamen ITG Group procurement. Currently, we are
from Indonesia and iron ore from South America into locked in processing profits for the polyester enterprise
planning a phase two factory and discussing with
Hubei province. In 2023, Hubei ITG Supply Chain's import and activated working capital. This init i ative helped the
Xiamen ITG Group to extend the industry chain,
scale reached 680 million US Dollars. enterprise avoid losses, saved costs exceeding 15 million
allowing our products to upgrade from cotton yarn
RMB, assisted in navigating industry cycles, ensured
to cotton fabric.
stable supply to safeguard people's livelihoods, and has
by the General Manager received positive social feedback locally.
Smarter and Advanced We have formulated the "Research and Development Management Measures" and estab-
lished a collaborative management mechanism for research and development (R&D). The
Supply Chain Services R&D department serves as the coordinating management department for R&D, responsible
for improving the R&D system, drafting and revising R&D management regulations, opti-
About This Report We prioritize customer-centricity and R&D Support
mizing the R&D process, coordinating and guiding R&D-related matters across departments
leverage technological innovation and
and subsidiaries, and facilitating the sharing and efficient allocation of various R&D resourc-
digital empowerment to offer smart
es. We continuously strengthen comprehensive research and analysis on international new
Message from the solutions suitable for various bulk
Chairman markets, emerging industries, and new business models, deepen the layout of emerging
commodity supply chains. These solu-
fields, and conduct related industrial research on the upgrading of traditional industries, to
tions aim to facilitate efficient business
assist investment decisions.
circulation for industry partners.
Awards
Environment
Highlight Highlight
Intelligent Supply Chain Comprehensive Service Platform - Intelligent Warehouse Monitoring and Management
Society
"ITG ATLAS" Platform - "ITG IRSP"
Employees
Digital
Innovation-driven The "ITG ATLAS" is a supply chain intelligent platform that integrates electronic signatures, "ITG IRSP" intelligent warehouse monitoring and management platform connects "people,
Development, Suppliers Intelligence smart logistics, supply chain finance, and other functions. It achieves flexible supply chain vehicles, goods, and scenes." By deploying sensors in perimeter security, bulk cargo inven-
and Clients
Empowerment management, addressing issues such as the complexity of traditional supply chain service tory, and other warehousing and logistics scenarios, and through technologies such as IoT,
Rural Revitalization and processes, lack of agility in operations, mismatch between supply and demand, and lack of edge computing, and digital twins, the supply chain management becomes more data-driv-
Social Contribution
synchronization in information. As the "chain leader" enterprise, we utilize the "ITG ATLAS" en. While ensuring the safety of goods and scenes, it also improves the efficiency of logistics
supply chain intelligent platform to bridge the information silos between factories and management. In addition, the intelligent hardware devices deployed by the "ITG IRSP"
Governance logistics, facilitating efficient circulation of contracts, information, funds, and logistics. This intelligent warehouse monitoring and management platform prioritize the use of renewable
promotes efficient communication and helps upstream and downstream customers reduce energy, with most of them using photovoltaic power generation, effectively reducing carbon
costs and improve efficiency. emissions in warehousing management processes.
Appendix
During this reporting period, the "ITG ATLAS" supply chain intelligent platform has covered In 2023, the "ITG IRSP" intelligent warehouse monitoring and management platform was
over 2,200 customers, processed over 40,000 orders, and accumulated a total transac- honored with the "Outstanding Case of Innovative Applications in Big Data, Internet of
tion amount exceeding 12.5 billion. Things, Blockchain Supply Chain Finance, etc. " at the Xiamen 5G Application Competition
hosted by the Xiamen Industrial and Information Technology Bureau (Big Data Management
In 2023, the "ITG ATLAS" supply chain intelligent platform was honored with the " Innova-
Bureau).
tion Case of National Smart Enterprise Construction" award by the China Enterprise Confed-
eration.
Supply Chain Risk
Management
About This Report
After years of market operation and continuous im-
Supply Chain Human Rights Due Violation Reporting Mechanism
provement, we have established an efficient compre-
hensive risk management system, continuously iter-
Diligence in Supply Chain
Message from the
Chairman ating our multidimensional risk control management
We have formulated the "Compliance Guidelines for We establish anonymous reporting channels and ave-
capabilities such as dynamic credit granting, moni-
Preventing Forced Labor Risks in the Supply Chain," and nues according to suppliers and other stakeholders. We
toring alerts, risk investigation, rectification tracking,
regularly conducted supply chain due diligence through provide guidelines to whistleblowers on how to fill out
Awards methods such as blacklist screening, information collec- reporting forms, how to provide necessary information,
management tools including inventory management,
tion, document review, on-site visits, questionnaire sur- and evidence. We and our subsidiaries may adopt mea-
position management, credit management, price
veys, data analysis, and compliance audits. We focus on sures such as open channel searches, interviews with
Environment management, hedging, and insurance coverage. Em-
six indicators of forced labor, including intimidation and relevant personnel of suppliers, or third-party interference
bedding risk management, risk warning tracking, and
threats, abuse of vulnerable positions, movement restric- to appropriately investigate and verify the reported con-
pre-control at various critical nodes of the business
Society tions, isolation, harsh working conditions, and unreason- tent and respond promptly to the reports. If violations of
chain, we utilize refined risk management techniques
able working hours. We aimed at effectively preventing human rights protection or other non-compliance issues
to connect revenue with costs, effectively operate in
Employees and controlling human rights risks in the supply chain. by suppliers are confirmed after investigation, we will
volatile markets, and avoid negative impacts of major
Innovation-driven take corresponding corrective measures and explain the
risks. Furthermore, we continuously strengthen mar-
Development, Suppliers
subsequent processing steps to the stakeholders.
and Clients ket research and analysis, increase the use of digital
Rural Revitalization and technology, fully utilize specialized digital means
Social Contribution such as research and judgment, dynamic monitor-
ing, and intelligent inventory, enhance risk control
Governance efficiency, and achieve comprehensive risk control
coverage with proactive warning and control, dynam-
ic control during events, and normative summary
Appendix afterward. Additionally, we provide risk management
services externally, laying a solid foundation for our
stable and high-quality development as well as that
of industry partners.
About This Report
Message from the
Chairman
Awards
Responsible Sourcing Responsible Marketing Protection of Customer Rights
Environment
As a responsible corporate citizen, we are committed to jointly We strictly adhere to relevant laws and regulations and have We adhere to a customer-centric approach by implementing
promoting the high-quality development of the industrial ecosys- formulated the "News and Publicity Management Measures" management systems such as the "Interim Measures for
Society tem with our partners. We have formulated the "Supplier Code of and "New Media Management Measures." We follow the Negative List Management of Customers" and the "Grey List
Employees Conduct," which sets out requirements for human rights protection, principles of "review before release" and "one event, one Management Manual" to strengthen credit and risk manage-
occupational health and safety, business ethics, and environmental review," and implement a strict "three-level review system" ment, and enhance our customer management system. We
Innovation-driven
Development, Suppliers protection for our supply chain partners. for publicity content. We are committed to enhancing the have established transparent channels for complaints and
and Clients market influence of our brand through the dissemination of efficient resolution processes, including business liaison,
We attach great importance to effective communication with suppli-
Rural Revitalization and truthful, accurate, and morally appropriate positive informa- management-level contact, risk control coordination, and
Social Contribution ers and continuously deepen cooperation with them by establish-
tion. documentation coordination. Additionally, we provide
ing open and transparent communication channels. All suppliers
publicly available contact numbers, emails, and a Chair-
Governance and contractors have signed the "Integrity Agreement" and "Labor
man's mailbox to ensure the quality of service to guarantee
Compliance Commitment Letter." Through both online and offline
that customer complaints and feedback receive prompt and
meetings, we engage in regular in-depth discussions with suppliers
proper responses, fully safeguarding customer rights.
Appendix on business negot i ations, business execution, production and opera-
tion conditions, and credit status. This ensures that all suppliers fully
understand and comply with requirements outlined in the "Supplier
Code of Conduct." By actively practicing responsible supply chain
management responsibilities, we collaborate with suppliers to create
a fair, transparent, and sustainable business ecosystem.
About This Report Information Security Management Network and CEO serves as the group leader, and the vice president of digital management depart-
Information
ment serves as the deputy group leader. Members include leaders of the party com-
Message from the We strictly adhered to relevant laws and regulations such Security
Leading Group mittee and the heads in charge of digital construction.
Chairman as the Cybersecurity Law of the People's Republic of China,
The group is responsible for uniformly guiding and coordinating the information
and formulated internal management regulations includ-
security work of the company and subsidiaries.
ing the Information Security Management Regulations. We
Awards ment structure and continuously strengthened information
security management to safeguard network information Network and The members comprise persons in charge of digital construction, heads from the
Environment security. No information security incidents occurred during Information Digital Management Department, and leaders from Xiamen ITG Digital Technology.
this reporting period. Security Office
Serving as a permanent body of the Network and Information Security Leading Group,
We have formulated the " Implementation Assessment it is tasked with managing the daily network security operations of the Leading Group.
Society
System of Network Security Management" to enhance
Employees supervision and evaluation of network security manage-
Innovation-driven ment and ensure effective execution of information security
Development, Suppliers As the headquarters' responsible department for network security, it is responsible
management. Through regular inspections, random checks, Digital
and Clients for the construction and operation of network security. Every year, it formulates a
investigations, and external audits, we assess the execution Management
Rural Revitalization and Department network security implementation plan based on the company's network security
of network security policies and control measures, the ful-
Social Contribution development strategy and holds regular information security meetings to identify
fillment of network security responsibilities, the handling of
information security vulnerabilities, assign tasks and summarize the outcomes of
network security incidents, and the effectiveness of network
Governance regular enhancements in information security.
security training, and implement corresponding improve-
ment measures. Our Digital Management Department links
Appendix information security work performance to the performance
of each department's employees, incorporating information
Responsible for the daily construction and operation of information security in each
security protection into quarterly performance targets for de- Subsidiaries
subsidiary company.
partmental staff. We assess the execution of network security
work quarterly based on daily work performance and the
overall level of information security protection in positions
and departments.
Information Security Risk Management
We collect feedback from employees on the implementation of information security management systems through surveys, interviews, and other methods. Additionally, we regularly invite external in-
About This Report dependent cybersecurity experts to assess the rationality and effectiveness of our network security management systems to strengthen information security management. We enhance network security
risk assessment, monitoring, and response through normalized management measures to ensure information security.
Message from the
Chairman 01 Conducted regular network security ·Weekly on-site inspections were carried out by security systems, equipment, as well as the execution and effectiveness
checks to promptly identify and assess service providers to address risks identified by the Security of information security management systems and contingency
network security risks: Situation Awareness System, with optimization and improve- plans.
ment undertaken based on their recommendations.
Awards ·Daily security checks were performed based on alerts 04 Executed Critical Network Security Protection
from the Security Situation Awareness System, where ·Bi-monthly web vulnerability scans were conducted on Work During Key Periods:
suspected compromised hosts and abnormal attacks were externally accessible web site URLs, and any identified high or ·Init i ated Sangfor Technologies's Managed Security Service
Environment promptly investigated and handled. Additionally, portal medium-risk vulnerabilities were promptly addressed to pre- during significant periods such as the 2023 Spring Festival,
websites susceptible to attacks undergone continuous vent unauthorized exploitation and mitigate risks of network National People's Congress and Chinese People's Political
tamper-proof status monitoring and checks, and daily intrusion and data leakage.
Society Consultative Conference sessions, Digital Summit, May Day,
security check reports were submitted accordingly.
Cybersecurity Protection Campaign, and National Day.
Employees ·Quarterly host security vulnerability scans were conducted,
and the development team was provided with the results for ·Security service providers were commissioned to collaborate
Innovation-driven
Development, Suppliers timely rectification of any existing high or medium-risk vul- on-site to carry out cybersecurity protection work during
and Clients nerabilities, followed by regular updates on the progress of other important periods like the Network Security Civilization
Rural Revitalization and vulnerability remediation. Conference.
Social Contribution
Governance equipment inspections: swift and effective response to information
·Quarterly security equipment patrols were carried out in security emergencies:
coordination with security service providers.
Appendix ·Conducted emergency drills for various application systems
·Security equipment configuration backups were performed such as the ITG IRSP "Smart Silos Solution", CRM System, HR
at least once per quarter to ensure the security of configura- One-Stop Onboarding System, Enterprise WeChat Session
tion data Archive System, and Datagrand OCR System.
Digital Management Department specifically formulated the
External agencies were commissioned to audit the information
Information Security Training
Information Security Emergency Management
" Typhoon Emergency Response Plan of Data Center Server We formulate information security emergency plans and clarify the procedures for emergency response to ensure
Room", and personnel were assigned for server room inspec- rapid and effective handling of such incidents, aiming to minimize losses.
About This Report
tions and emergency duty.
Message from the
Chairman
training: 01 02 03
·The Digital Management Department collaborated with se- Information In the event of an If the emergency After the incident is re-
curity service providers and the Human Resources Department information security escalates into a major solved, timely analysis
Security
emergency, it should incident, it should be and summarization
Awards Information Security Awareness and Build Information Securi-
Response ed to the emergency department heads, and a written report
ty Defense Lines" for all employees.
Procedure team. The team leader and effective response should be submitted to
will then init i ate the measures should be department heads and
Environment ·During Network Security Week, articles such as "Build Net-
emergency plan based taken in accordance unit leaders.
work Security and Strengthen Password and Email Security" on the actual situation. with the decision in-
were distributed to all employees for intranet publicity. structions of the emer-
Society gency decision-making
·Through the i- ITG Network Information Security public leaders.
Employees account, 16 security notification reminders and articles on
Innovation-driven security knowledge were sent to all employees. Additionally, To ensure the rapid and effective implementation of emergency plans, we have established an assessment mech-
Development, Suppliers
classification and summarization of frequent phishing and anism for the execution of security incident emergency response, and organize non-scheduled emergency drills
and Clients
scam email incidents were conducted, and thematic articles every year to continuously improve and refine emergency response procedures, ensuring the effectiveness and
Rural Revitalization and
Social Contribution such as "Tactics of Email Scams" were sent to enhance email compliance of emergency response procedures, and continuously enhance the company's ability to respond to
security awareness to ensure that employees have a deep information security incidents.
understanding of and effectively adhere to the regulations and
Governance
norms related to information security management, enabling
them to promptly detect and effectively respond to potent i al
Appendix information security threats.
Customer Privacy Protection
We attach great importance to customer privacy protection and strictly manage the collection, use, and storage of custom-
Encouraged employees to report any information security
er information. Through digitalization, informatization systems, localized information deployment, hierarchical authoriza-
issues to their immediate supervisors or the Digital Manage-
tion, internal network management, and other technologies and management methods, we prevent data leakage, misuse,
ment Department, and monitored daily feedback on network
or loss, ensuring that customers' privacy rights are fully respected and protected. During the reporting period, we did not
security risks from internal employees.
experience any incidents of customer privacy infringement.
Promote Industry Development Honors
Guided by the mission of "Integrate Industry to Connect and Create Value to Share" and the core Xiamen ITG Group was awarded the
About This Report values of "Leadership, Responsibility, Hardworking, Partnership," we closely align ourselves with "Outstanding Productio-finance Incubation Base of 2022"
national strategic planning, respond to the "Belt and Road" init i ative, and integrate into the new by Dalian Commodity Exchange
development paradigm of "dual circulation". We actively participate in industry innovation and col-
Message from the ITG Petrochemical was approved as one of the first batch of
laboration, create extensive networking opportunities for industry partners, and strive to become a
Chairman "Powerful Source for Enterprises"
trusted global industrial partner.
Production-Finance Service Bases
by Shanghai Futures Exchange
Awards
China Association for Public Companies Director Unit Xiamen Pilot Free Trade Zone and Customs Special
Environment Permanent Vice President Unit
Supervision Area Association
The Listed Company Association of Xiamen Vice President Unit
Xiamen Association For Medical Devices Xiamen ITG Group- Vice President Unit
Society The Institute of Modern Supply Chain of China
Vice Chair Unit Xiamen ITG Health Technology-Vice Presi-
Federation of Logistics and Purchasing Xiamen Elderly Care Service Promotion Association
Employees dent Unit
China Customs Brokers Association Managing Director Unit Fujian Chamber of Commerce for Medical Equip- Keerun Medical Technology - Vice President
Innovation-driven
Development, Suppliers ment Unit
China Chamber of Commerce For Import and Ex-
and Clients Director Unit
port of Textiles Keerun Medical Technology - Vice President
Xiamen Health Association
Rural Revitalization and of the First Council (Supervisory) Unit
Social Contribution China Chamber of Commerce of Metals, Minerals &
Managing Director Unit China Association For Medical Devices Industry Panther Healthcare -Association Member
Chemicals Importers & Exporters
Governance China Chamber of Commerce for Import and Ex- National Association of Health Industry and En-
Director Unit terprise Management-Hernia and Abdominal Wall Panther Healthcare-Managing Director Unit
port of Light Industrial Products and Arts-Crafts
Surgery Industry and Clinical Research Association
Appendix China Paper Association Xiamen ITG Group Paper-Director Unit
Pharmaceutical Circulation Professional Commit- Xiamen ITG Baokang Medicine Technolo-
Xiamen Import & Export Chamber of Commerce Vice President Unit tee of Fujiang Pharmacists Association gy-Standing Committee Member Unit
Xiamen Steel & Iron Trade Association Vice President Unit Sheraton Grand Wuhan Hankou Hotel-Di-
China Tourist Hotels Association
rector Unit
Xiamen Chamber of International Commerce Permanent Vice President Unit
Sheraton Grand Wuhan Hankou Hotel-Mem-
Hubei Tourist Hotels Association
Xiamen Federation of Modern Supply Chain Vice President Unit ber Unit
Highlight
Intensified Cooperation in Ferrous
Derivatives Industry Chain
About This Report
From November 15th to 17th, the 2023 (14th) Ferrous
Message from the Derivatives Summit, jointly organized by the Metallur-
Chairman gical Industry Branch of China Council for the Promo-
tion of International Trade and Shanghai Ganglian
E-commerce Holdings Co., Ltd, was held in Xiamen
with the Xiamen ITG Group and Fujian Sangang
Awards
(Group) Co., Ltd., served as the co-host. Xiamen ITG
Iron Ore BG (Business Group) exploited its industry
Highlight
Environment "Belt and Road" Init i ative: influence and professional service capabilities and
Highlight
Cooperation in the New Energy Sector brought together nearly 800 industry elites, including
Participation in Standard Setting
with South Africa industry partners, renowned scholars, and domain
and Active Involvement in Lithium
Society experts, to collectively focus on the development Carbonate Futures Market
From September 18th to 21st, the "Refreshing Fujian, trends of the metallurgical industry and explore the
Employees
Where Maritimes Silk Road Begins" cultural tourism new prospects for the industry and market under
Innovation-driven In December, Xiamen ITG Group successfully ob-
promotion event was held in South Africa. Witnessed emerging circumstances.
Development, Suppliers tained approval to serve as a designated delivery
and Clients by the Fujian provincial delegation, Xiamen ITG
warehouse for lithium carbonate futures. As an active
Rural Revitalization and Group Co., Ltd. signed an agreement with the South
participant in the lithium carbonate futures market,
Social Contribution African national power company, reaching consensus
Xiamen ITG New Energy Supply Chain actively coop-
on jointly promoting the construction of renewable
erated with Dalian Commodity Exchange in setting
Governance energy projects, the supply of renewable energy
standards before the launch of lithium carbonate
equipment, fostering technology sharing and inno-
futures, and even became one of the first traders on
vation, and advancing comprehensive governance.
Appendix the day lithium carbonate futures and options were
This agreement will further strengthen cooperation
listed. Subsequently, it also actively participated
in international trade, warehousing logistics, project
in simulated deliveries, assisted the exchange in
investment, and other fields related to new energy,
investor education, and prepared for the smooth
promoting the application of new energy, renewable
implementation of the first lithium carbonate futures
energy, and clean energy, alleviating South Africa's
delivery.
power shortage, and enhancing the reliability and
stability of the power system.
About This Report
Message from the
Rural Revitalization and Social Contribution
Chairman
Awards
In response to the national call, we uphold the ethos of corporate responsibility as a cornerstone of our state-owned enterprise, with the harmo- Support Rural
nious values of corporate citizenship guiding our direction. We integrate corporate production and operations with societal development by le-
Environment
veraging our industrial resource advantages, aligning our efforts with the national development agenda, supporting rural revitalization strategies,
Revitalization Strategies
and fostering sustainable development across both enterprise and socio-economic realms. with Industrial Resource
Society Achieved In Progress
Advantages
Employees
Innovation-driven We base our actions on the national development
Development, Suppliers
Position in the agricultural industry chain to support the high-quality development of agriculture and agenda, leveraging our industrial resource advan-
and Clients 1 ensure national food security, starting with grains and agricultural materials fields tages to actively implement various requirements
Rural Revitalization and
Social Contribution of the national rural revitalization strategy. We
Carry out paired assistance work to support the implementation of the national rural revitalization
actions like industrial revitalization and cultural
Governance
The annual local employee hiring ratio should not be less than 60% resurgence, expressing our gratitude to society
with compassion and dedication.
Appendix The annual organization of volunteer activities should not be less than 80 events, with a minimum of
About This Report
Enhance the Agricultural Product
Our subsidiaries, such as Xiamen ITG Tidak Logistics
Industry Chain for National Food Security
and Heilongjiang Runda Xiangyun Logistics, align
Message from the their services closely with the rural revitalization
Chairman The agricultural sector is one of the pivotal development focuses out- strategy. They establish an industry chain layout
lined in our company's "14th Five-Year Plan" strategy. Leveraging our encompassing "agricultural production areas-lo-
extensive experience in the agricultural industry, our subsidiaries, ITG gistics bases-direct sales cities," aiming to enhance
Awards
collaborative partnerships for contract farming in key grain-producing and meet customer demands.
regions such as Northeast China and Inner Mongolia. Through tailored
Environment models like "Company + Base + Farmers" and "Enterprise + Cooperative
+ Base + Farmers," ITG Agricultural Products has forged agricultural pro- Purchase corn and rice in major grain-producing areas
duction alliances with professional cooperatives and joint societies. By such as eastern Inner Mongolia and northeastern
Society establishing mechanisms that align interests with farmers, ITG Agricul- China. The grains meet the national storage standards
tural Products has streamlined the entire supply chain—from seedling after undergoing drying, moisture-proofing, and pest
Employees
cultivation and planting to procurement and processing—effectively control operations. This not only ensures local grain
Innovation-driven
addressing the challenge of "production without market access" for supply and contributes to national grain reserves but
Development, Suppliers
and Clients agricultural products while ensuring the quality and quantity of raw ma- also addresses the issue of difficulty in drying wet
Rural Revitalization and terials required for production. Additionally, ITG Agricultural Products grains, thereby promoting increased income for farm-
Social Contribution has formed a dedicated grain procurement team, engaging deeply with ers.
local farmers in Northeast China's grain-producing heartlands, conduct-
Governance ing comprehensive market assessments, and upholding a "no price sup-
pression, no bargaining" policy to safeguard farmers' interests. Through
Grains collected and stored locally are mainly utilized
the industry support and sales empowerment init i atives, the company
Appendix is bolstering local grain production and income, enabling farmers to
for feed processing and transported to enterprises na-
tionwide through various means such as automobiles,
market their products domestically and internationally, supporting the
railways, and vessels, to ensure the supply of raw
smooth functioning of domestic and global grain markets, and contrib-
materials for the breeding industry across the country.
uting to the stability of the domestic grain industry supply chain and
facilitating unimpeded import and export flows.
About This Report
Message from the Paired Assistance for Rural Secure Stability in Supply and Pricing
Chairman Development within the Silicon Industry
In 2023, with the advent of the rainy season, market supply rapidly
Awards with Xishan Village in Xinmin Street, Tong'an District, increased due to a temporary downturn in downstream demand and
Xiamen, Fujian Province. We are actively exploring new high social inventories. Consequently, the price of industrial silicon
models for state-owned enterprises to empower rural experienced a rapid decline. Most smelting enterprises in Yunnan and
Environment Sichuan chose to delay their planned start-ups. We init i ated the use
revitalization, solidly advancing the assistance work for
villages with relatively weak collective economic income. of futures risk management tools in our industrial silicon smelting
We delve into the industrial advantages and development plant in the Nujiang region of Yunnan, leading neighboring factories
Society
potent i al of Xishan Village, aiming to stimulate the init i a- to actively sell forward production capacity. This action effectively
Employees tive, enthusiasm, and creativity of villagers by analyzing locked in profits from production during the rainy season, resulting
resource endowments and refining assistance needs, in an overall operational rate of over 90% for enterprises in the Nuji-
Innovation-driven
Development, Suppliers thereby activating the endogenous vitality of the collective ang region of Yunnan during the peak water period. It ensured stable
and Clients production during the rainy season and secured the stability of the
economy in Xishan Village. During this reporting period,
Rural Revitalization and entire supply chain in the industry.
the Labor Union procured agricultural products from local
Social Contribution
regions of Pengyang County, Jingyuan County, and Min-
ning Town in Ningxia, Zuogong County in Tibet, Jimusaer
Governance
County in Xinjiang, and Pingnan County in Fujian, with the
total amount exceeding 1 million RMB.
Appendix
Promote Health and
Education, Support Urban
Sustainable Development
About
关于本报告 This Report "Flying Love and Dream" Public Welfare Brand
We firmly believe that the prosperity of our business is intri- In 2005, we established the "Flying Love and Dream" public welfare brand, focusing on carrying out public welfare activities to care for the
董事长致辞
Message from the cately linked with the well-being of the cities and communi- healthy growth of adolescents and children, and launched the cartoon image "AMO" for the public welfare brand. Over the past 19 years,
Chairman
ties where we operate. In our pursuit of sustainable business the footsteps of "AMO" have spread across cities and villages in Xiamen and surrounding areas, delivering care to rural left-behind children,
stakeholders to support local employment, urban economic
Awards development, and improvements in health and education,
环境 thus creating a more vibrant and fulfilling urban life.
Highlight
Environment We actively adhere to the requirements of the United Na-
Flying Love and Dream Charity Sale
社会 tions Sustainable Development Goal 11 (Sustainable Cities
and Communities) by formulating the "Community Policy,"
Society
员工 In 2023, the "Flying Love and Dream " public welfare brand
committing to building positive community relations, and
responded to the call of "Love Xiamen" and launched the
创新驱动、供应商与客户 respecting the rights and cultural diversity of indigenous
Employees "Flying Love and Dream Charity Sale- Passion for Nature
乡村振兴与社会贡献 peoples. We are dedicated to supporting local communities
Innovation-driven and Dreams for Future" exhibition on the 33rd "National
in areas such as healthy living, equitable healthcare, quality
Development, Suppliers
Disability Day". The exhibition showcased oil paintings
and Clients education, dignified employment, volunteer services, chari-
公司治理 and handicrafts created by students from Xiamen Special
Rural Revitalization and table relief, rural revitalization, and sustainable urban devel-
Social Contribution Education School for a charity sale.
opment, to foster the prosperity and development of local
communities.
On the occasion of the International Children's Day in
Governance 2023, the "Flying Love and Dream " public welfare brand
We have established a dedicated department responsible
journeyed to Hainan, collaborating with the Xingyan
for community communication, receiving and addressing
Special Education Center in Qiongshan District, Haikou
Appendix feedback and complaints from the local community to build
City, for the charity event of "Children's Hearts Unite with
mutually beneficial community relationships. We conduct
Love and Dreams Take Flight". Our employees in Hainan
community risk assessments in our business development
brought supplies to the special education center and
to minimize any negative impacts on the local community,
comfort to children with autism. Engaging in activities like
integrating community development considerations into
origami and painting together with the "Children of the
investment project planning. For instance, we ensure the
Stars," they illuminated the children's spirits, with the glow
respect and protection of rights of indigenous communities,
of goodwill candles mingling with the hopeful sparkle of
their cultural customs, and heritage before investment.
stars.
Innovation of Elderly Care Service "Yellow Handrail" Init i ative
Our subsidiary Xiamen ITG Elderly Care Industry Co., Ltd. (ITG Elderly According to statistics, falling is the leading cause of injury among
About This Report Urban Health and Care) innovates elderly care service model and explores the mar- elderly people over 65 in China. On average, 3 to 4 out of every 10
Well-being ket-oriented "property + elderly care" service. Through high-stan- elderly individuals over 65 have experienced a fall, with more than
dard project configuration and standardized operation concepts, half of these falls occurring at home, especially in the bathroom and
Message from the
it provides diversified, high-quality services for the elderly in the toilet, typically when getting up or squatting down. In 2023, ITG El-
Chairman Collective Wealth, Leading with
community, including day care, respite care, health management, derly Care init i ated the "Yellow Handrail" program for the age-friend-
Health. With the exacerbation of urban
public welfare meals, cultural and recreational activities, and policy ly renovation of daily living facilities, providing home age-friendly
population aging and the increasing
awareness of residents' health, the
Awards grating functions such as smart elderly care, health management, installed yellow handrails free of charge for 25 elderly individuals
demand for the health and elderly
daily living assistance, spiritual and cultural enrichment, and elderly living alone, reducing safety hazards for indoor walking, bathing, and
care industry is also growing rapid-
volunteer assistance, dedicated to ensuring that every elderly person toileting, and improved the living environment for elderly individuals
Environment ly. Our health technology business
enjoys a healthy and happy life in their later years. at home.
focuses on the core medical device
industry, synergizing with three key
Society supporting industries: elderly care
services, medical and health big data,
Employees
and health services. We continue to
Innovation-driven
Development, Suppliers uphold the mission of "Technology
and Clients and Care Enrich life with Health and
Rural Revitalization and Happiness," actively responding to the
Social Contribution call for "Healthy China," and promot-
ing medical technology innovation by
Governance constructing a large health industry
ecosystem. This helps to facilitate
the construction of urban health and
Appendix
elderly care service systems and im-
prove social well-being.
Public Health Services
In 2023, leveraging our business advantages in the field of health technology, we conducted Cardiovascular Hospital Xiamen University granted our company the title of "Best Volun-
About This Report over 20 medical consultations in communities such as Jinlin, Jinhai, Wutong, and Haicang teer Service Team."
Street's elderly care service center in Xiamen. Through a combination of traditional Chinese
In 2023, our employee volunteers went to Houbu Public Welfare Library in Huli District to
and Western medical therapies, physical examinations, and rehabilitation guidance, we
Message from the organize a public welfare event on children's health education and donated a series of
provided the public with diagnosis and treatment plans, as well as consultations on daily
Chairman books. We invited medical experts to provide professional guidance on the prevention and
rehabilitation and health care knowledge.
emergency treatment of common childhood illnesses on-site.
Since signing a co-construction agreement with Xiamen Cardiovascular Hospital Xiamen
Awards University in 2020, we have consistently organized volunteers to provide convenient guid-
ance services at the hospital during the weekend, directing patients to medication pickup
and registration, as well as offering on-site consultation services. For this purpose, Xiamen
Environment
Society
Employees
Innovation-driven
Development, Suppliers
and Clients
Rural Revitalization and
Social Contribution
Governance
Appendix
Highlight Highlight
University-Enterprise Cooperation with Singaporean Supply-Demand Matching Employment and
Boost School- Universities Education Project by the Ministry of Education
About This Report
Enterprise
Cooperation with ITG Resources (Singapore) regards social responsibility as a pivotal element in We collaborate with Zhongnan University of Economics and
Message from the its growth strategy. By closely partnering with the Singaporean government, Law to implement the Supply-Demand Matching Employment
Chairman More Local Job
the company facilitates cooperation between school and enterprise, offering and Education Project, establishing a joint educational
Offerings internships, training programs, and employment opportunities to local col- platform between the university and the enterprise. We
lege students, assisting them in successfully transitioning into the workforce. organize expert personnel to serve as career mentors for
Awards We closely track developments in the Furthermore, the company is committed to localization, with a high percentage university students and use the ITG major experimental class
job market and regard local employ- of local employees and salary packages aligned with Singaporean regulations, as a pilot. The init i ative involves bringing enterprises into the
ment needs as a key consideration fostering a strong sense of job security and cohesion among its workforce. classroom through a combination of "offline + online" methods,
Environment in our talent recruitment process, These endeavors not only inject vitality into the company itself but also create creating a talent cultivation model that integrates "economics,
striving to generate more high-quality additional avenues for employment and development within Singaporean so- law, and management" with a combination of "theory and
job opportunities locally and fulfill ciety, making significant and sustained contributions to the country's economic practice." Through organizing a series of commercial planning
Society
greater social responsibilities. During prosperity and social stability. As of 2023, approximately 90% of the workforce competitions and lectures on career planning and employment
Employees the reporting period, the proportion consists of local employees, with 13 local employees recruited during the year. guidance, the project provides students with opportunities
of locally hired employees in our com- In 2023, the company also participated in career fairs at the National University for social practice, corporate visits, and internships. This joint
Innovation-driven
Development, Suppliers pany was approximately 63.54%. of Singapore and Nanyang Technological University, and collaborated with university-enterprise init i ative cultivates potent i al talents and
and Clients both institutions to host inaugural corporate presentations which attracted helps students with career positioning and planning. Zhongnan
Rural Revitalization and We adhere to the concept of "bringing nearly a thousand students. University of Economics and Law organizes teachers and
Social Contribution in and going out" in university-enter- students to visit the Xiamen ITG Group to participate in an OPEN
prise cooperation, advocate collabo- DAY event, deepening the "co-education of talents" through
Governance ration with local universities to jointly face-to-face interaction and cooperation between the school
promote the coordinated cultivation and the enterprise. During the collaboration period, we host
of talents in enterprises, universities, annual campus recruitment events. Over the past two years, a
Appendix
and research institutions, and facili-
total of 24 graduates from Zhongnan University of Economics
tate the development of local young and Law have joined usthrough campus recruitment.
talents.
Highlight
Team up with Xiamen University and Sun Yat-sen University to Provide Professional Ship Management Services for University Oceanographic
Research Vessels
About This Report
Leveraging its extensive expertise in commercial ship management, Xiamen ITG Shipping, a subsidiary of the Xiamen ITG Group, offers vessel management and operational services for the
oceanographic research vessels "TAN KAH KEE" of Xiamen University and "ZHONG SHAN DA XUE" of Sun Yat-sen University. From ship construction, engineering maintenance, and management
Message from the mechanism establishment to meteorological services, shore-based support, and vessel maintenance, Xiamen ITG Shipping delivers premium services to ensure the smooth operation of oceano-
Chairman graphic research, thereby supporting China's marine scientific research efforts and maritime power construction.
Awards "The 'ZHONG SHAN DA XUE' is the ocean comprehensive scientific research training vessel with the largest
domestically designed displacement, the strongest comprehensive scientific research performance, and
the most innovative design highlights, equipped with the ability to conduct multidisciplinary, multisource
Environment observations, sampling, and experiments from an altitude of 10,000 meters to a depth of 10,000 meters.
Since 2021, Xiamen ITG Shipping has provided specialized ship management and crew support services for
the ' ZHONG SHAN DA XUE,' consistently integrating the concepts of greening and intelligent ship construc-
Society
tion to ensure the safe and efficient operation of the vessel, successfully completing various marine scien-
Employees tific research missions. In the future, the Sun Yat-sen University Marine Science Exploration Center will work
more closely with the management team, continuously explore and promote the green, digital, and intelli-
Innovation-driven
Development, Suppliers gent transformation of ship management, provide strong support for the high-quality development of Sun
and Clients Yat-sen University's marine cause, and demonstrate greater responsibility and contribution in serving the
Rural Revitalization and "Since the inception of the planning for the construction of the scientific research vessel at country's major development strategies."
Social Contribution
Xiamen University, Xiamen ITG Group has maintained close communication with us, provid-
ing necessary assistance and support in shipping technology and shipbuilding supervision — Wu Haiming, Deputy Director of the Sun Yat-sen University Center of Ocean
Governance information. Xiamen ITG Group, through its subsidiary Xiamen ITG Shipping , has been Expedition
involved in the daily management of the 'TAN KAH KEE' research vessel, contributing to the
development of a high-level crew talent pool and the 'TAN KAH KEE' vessel management
Appendix
system. Over the years, they have provided strong support for marine scientific research
with their high-quality services. We look forward to further strengthening the collaboration
between our center and Xiamen ITG Group, leveraging each other's strengths to advance
China's marine scientific research to new heights."
— Wang Haili, Director of the Xiamen University Research Vessel Op-
erations Management Center
About This Report
Message from the
Chairman
Awards
Environment
Society
Volunteers of XIAMEN ITG Group visited the Jiangtou Community and Meiren Community in Xiamen City to guide participants, distribute
Employees materials, and maintain order during festival activities. Highlight
Innovation-driven
Urban Life Experience Summer Camp
Development, Suppliers
and Clients In 2023, we collaborated with the
Rural Revitalization and Jinlin Community in Xiamen to or-
Social Contribution
ganize the "Urban Life Experience
Governance Volunteer Activities for Public 87 Summer Camp." Led by company
volunteers, children from the com-
volunteer service
Welfare activities munity visited the Fire Science
and Technology Education Center
Appendix We advocate for a culture of public welfare and contribute
for experient i al education, which
to our local communities and society by regularly organizing
volunteer service activities such as cleaning neighborhoods,
participants
traffic guidance, legal education and publicity, safety aware- with their living environment,
ness training, tree planting, blood donation, and exhibition further improved urban life skills,
and stimulated children's enthusi-
services. During this reporting period, we organized a total of
of voluntary service
uting a combined total of 1,605 hours of voluntary service.
Governance
Total Assets
million RMB
Operating
revenue 468,246.88
million RMB
Net profit
attributable to 1,914.87
shareholders million RMB
of the parent
company
About This Report
Message from the Achieved In Progress
Sustainability-Related
Chairman
Awards
nisms 2
To strengthen and revise sustainable development policies in accordance with the needs of
business development
Environment
We integrate the concept of sustainable development into the
core and development of our enterprise. By embodying the ESG
Society principles in our governance practices, we continuously enhance
our corporate governance mechanisms and improve our man-
agement capabilities in various sustainable development issues Governance Structure
Governance to drive forward the sustainable development of our company
We have established a standardized, scientifically structured, op- ters, and effectively safeguard the rights and interests of minority
Sustainability-Related
erationally efficient, and clearly delineated corporate governance shareholders.
Governance Mechanisms
framework comprising the Shareholders' Meeting, the Board of
Anti-Commercial As the company's decision-making body, the Board of Directors
Bribery and Anti-Unfair Directors, the Board of Supervisors, and the Management Team
Competition diligently fulfills its duties in accordance with relevant laws,
to ensure effective checks and balances within the company. We
have established and improved an internal institutional system regulations, regulatory rules, and internal regulations, and is
based on the Company's Articles of Association, defining the accountable to the shareholders' meeting. The Board of Directors
responsibilities and authorities of the Shareholders' Meeting, establishes six specialized committees including the Strategy and
Appendix Sustainable Development Committee, the Risk Control Commit-
the Board of Directors, the Board of Supervisors, and the Man-
agement Team. We strictly adhere to relevant laws, regulations, tee, the Compensation and Appraisal Committee, the Budget
regulatory rules, and internal regulations, standardizing proce- Committee, the Nomination Committee, and the Audit Commit-
dures for convening, holding, and voting at shareholders' meet- tee, which provide professional advice for the Board of Directors'
ings. We fully respect and treat all shareholders equally, ensure decision-making processes. Among these committees, a majority
that all shareholders can fully exercise their right to information, of independent directors serve as chairpersons in three commit-
participation, voting, and supervision over major company mat- tees, all of which are composed of independent directors.
During the reporting period, we convened a total
Strategic and Sustainable Our sustainable
Development Committee development policies of 19 Board of Directors meetings, deliberating
Shareholders' on 87 proposals. Additionally, we held 21 board
Meeting Code of Business Conduct committee meetings, discussing 41 proposals.
About This Report Risk Control Committee One independent director meeting was convened,
Supplier Code of Conduct addressing one proposal. Independent directors
Board of
Supervisors provided independent opinions on significant
Message from the Remuneration and Environmental Protection Policy matters 19 times. Our Board of Directors was
Chairman Appraisal Committee
recognized for its scientific, professional, and ef-
Board of
Directors Labor Rights Protection Policy ficient governance practices, and was selected as
Awards Community Policy of Directors" by the China Association for Public
Management
Team Companies in 2023. We were also honored with
the "Best Board of Directors" title in the "Gold
Environment Nomination Committee
Prize of Round Table" of Chinese Boards of Listed
Company by the Magazine "Board of Directors"
Society and were recognized as the "Best Board of Direc-
Audit Committee
Board of Directors proposals Charts of Chinese Listed Companies by the Na-
meetings
Governance tional Business Daily.
Sustainability-Related
Governance Mechanisms
Anti-Commercial Board committee proposals "Best Practice Case of Listed Company
Bribery and Anti-Unfair meetings Boards of Directors"in 2023
Competition
The Board of Directors establishes a Strategic and Sustainable Development Commit-
Magazine "Board of Directors"
tee, responsible for researching, proposing recommendations, and tracking evalua-
tions on our company's sustainable development, as well as the strategic objectives
Appendix Independent proposal Chinese Boards of Listed Company
concerning environmental, social, and governance (ESG) factors. The Strategy and director meeting "Best Board of Directors"
Sustainable Development Committee, along with other specialized committees such
as the Risk Control Committee, Audit Committee, and Compensation and Appraisal National Business Daily
Committee, collectively guide the company's sustainable development efforts. They 19 times the 13th Prestigious Charts of Chinese
supervise and facilitate the effective implementation of relevant init i atives to ensure Independent directors provid- Listed Companies
that our ESG strategies are fully integrated into daily operations. ed independent opinions on "Best Board of Directors of Listed
significant matters Companies"
Diversity and Professionalism
The Board of Directors consists of nine members with diverse gender and age representation,
Selection and Appointment of Directors and encompassing various professional backgrounds including economics, law, management, finance,
About This Report Senior Management and accounting. Among them, there are three independent directors, and one female director.
Board members possess extensive industry and corporate management experience, with all inde-
pendent directors being seasoned experts in their respective fields. Additionally, over 50% of the
Message from the We actively promote the diversification and professionalization of the Board of
Chairman Directors and management team, ensuring continuous enhancement of the compa- directors hold doctoral degrees. The professionalism and diversity of the board members provide
ny's governance standards. To ensure the fairness and transparency of the nomina- vital assurance for the board's informed decision-making.
tion and appointment procedures for directors and senior management, our Com-
Our senior management team boasts expertise in diverse fields such as economics, accounting,
Awards and business administration, with extensive experience in corporate management, financial man-
clearly define the nomination and election processes. The Nomination Committee
agement, and risk management. Additionally, our senior management team includes two female
is responsible for advising the Board on matters concerning the composition of the
executives, representing 40% of the team.
Environment Board and the appointment criteria for directors and senior management, consider-
ing diverse factors such as gender, age, educational and professional backgrounds,
experience, character, reputation, and other service roles. Our independent direc-
Society tors provide independent and unequivocal assessments of the legality and compli-
over
ance of procedures related to the nomination or dismissal of directors, as well as the
appointment or dismissal of senior management, and express their opinions after
Governance independent of the directors hold
assessing these procedures. Director candidates are presented to the shareholders' directors doctoral degrees
Sustainability-Related meeting for voting after approval by the Board of Directors, while senior manage-
Governance Mechanisms ment are appointed upon approval by the Board of Directors.
Anti-Commercial
Bribery and Anti-Unfair
Competition
Appendix
Professional Competence Board Committees
Attendance
（Board
meetings
Name Position Age Strategic and Remuneration
Industry
Operations Risk Control
Financial Sustainable Risk Control and Budget Nomination Audit and Board
About This Report Experience
Manage-
ment
and
Compliance
Accounting Development Committee Appraisal Committee Committee Committee committee
Committee Committee
meetings）
Message from the Gao Shaoyong
Chairman 51 100%
Chairman (Male)
Xu Xiaoxi
Director 54 100%
(Male)
Wu Yunxuan
Awards Vice Chairman 51 100%
(Female)
Xiao Wei
Director 58 100%
Environment (Male)
Zeng Yuan
Director 42 100%
(Male)
Society
Zhan Zhidong
Director 49 100%
(Male)
Liu Feng
Governance Independent Director 57 100%
(Male)
Sustainability-Related Dai Yiyi
Governance Mechanisms Independent Director 56 100%
(Male)
Anti-Commercial
Peng Shuijun
Bribery and Anti-Unfair Independent Director 48 100%
(Male)
Competition
Cai Yingbin
CEO 44 /
(Male)
Fan Dan Vice President and
Appendix (Female) Board Secretary
Yu Lijie Vice President and
(Female) CFO
Wang Xiaofeng
Vice President 53 /
(Male)
Wang Yongqing
Vice President 43 /
(Male)
We prioritize the continuous enhancement of the perfor-
mance capabilities of directors, supervisors, and senior man-
agement. Regularly, we provide the latest regulatory rules
issued by the China Securities Regulatory Commission and
About This Report Stock Exchanges to directors, supervisors, and senior man-
agement for learning purposes. Additionally, we proactively
arrange them to training sessions on new regulations and
Message from the
Chairman duties hosted by stock exchanges, associations, and external
institutions, to continually improve the company's standard-
ized operations management. To enhance the professional
Awards management, and relevant department staff in ESG areas and
consistently improve our ESG management level, in 2023, we
invited external professional institutions to conduct training
Environment
on the theme of "ESG and Long-Term Value Creation for En-
terprises". This training covered the topics of the importance
Society of ESG construction and information disclosure, the method- Compensation of Director and Senior Management
ology for implementing ESG init i atives, and the case studies
from world-class companies. During this reporting period, The Remuneration and Appraisal Committee is responsible for reviewing and examining the compensation policies and assess-
Governance a total of 51 directors, supervisors, and senior management ment schemes for directors and senior management, as well as supervising the implementation of compensation systems and
participants joined in varied professional training sessions. assessment processes. In accordance with the Company's Articles of Association and the Implementation Rules of the Remuner-
Sustainability-Related
Governance Mechanisms ation and Appraisal Committee, the compensation plan for directors is proposed by the Remuneration and Appraisal Committee,
Anti-Commercial approved by the Board of Directors, and then subject to review and approval by the shareholders' meeting before implementa-
Bribery and Anti-Unfair
Competition 51 tion. The compensation schemes for senior management are proposed by the Remuneration and Appraisal Committee, subject to
review and approval by the Board of Directors before implementation.
directors, supervisors, and senior man-
agement participants
The compensation for independent directors is provided in the form of allowances, while the Chairman of the Board and senior
joined in varied professional training
sessions management are subject to an annual salary system. We have established the "Chairman and Senior Management Compensation
Appendix
and Performance Management System" to clearly define matters related to the compensation and performance management of
the Chairman and senior management. The compensation structure for the Chairman and senior management comprises two
parts: basic annual salary and performance-based annual salary. It employs a comprehensive evaluation method that benchmarks
operational performance indicators and shareholder return, and is linked to operational performance and the safety and envi-
ronmental performance of the units under their responsibility. The Chairman of the Board and senior management are eligible to
participate in the welfare programs established by the company for union members, and upon reaching the statutory retirement
age, they may receive pensions according to regulations upon retirement.
Equity Incentive Shares held at the Shares held at the
Name Position beginning of the year end of the year
（share） （share）
To effectively align the interests of shareholders, the company, and key manage-
Gao Shaoyong Chairman 860,000 860,000
About This Report ment personnel, and to achieve sustainable development, we have implemented
a Restricted Stock Incentive Plan to provide equity incentives to the directors and
Xu Xiaoxi Director 0 0
senior management of the company. As of the end of this reporting period, the
Message from the
directors and senior management have been granted a total of 4,815,000 restricted Wu Yunxuan Vice Chairman 780,000 780,000
Chairman
shares, accounting for 0.22% of the total share capital of the company. Among them,
Zeng Yuan Director 200,000 200,000
Awards
Zhan Zhidong Director 0 0
Granted Released
Environment
restricted shares shares from restrctions
Society Dai Yiyi Independent Director 0 0
Clawback Mechanism Peng Shuijun Independent Director 0 0
Governance
Chairman of Board of
Ma Chenhua 0 0
Sustainability-Related Supervisor
While constructing a competitive compensation system for directors and senior
Governance Mechanisms
executives, we have also established a corresponding clawback mechanism. Spe- Su Yi Supervisor 0 0
Anti-Commercial
Bribery and Anti-Unfair cifically, 70% of the performance-based annual salary for the Chairman and senior
Employee Representa-
Competition management personnel will be settled and paid based on the results of the annual Zeng Jian 0 0
tive Supervisor
assessment at the end of the year, while the remaining 30% will be deferred for set-
tlement based on the results of the tenure assessment after the tenure assessment Cai Yingbin CEO 780,000 780,000
period ends. In cases where the Chairman or senior management personnel are
Appendix Vice President and
found to engage in illegal or improper conduct, mismanagement, financial misrep- Fan Dan 780,000 780,000
Board Secretary
resentation, significant safety or quality incidents, major environmental pollution
incidents, serious disciplinary violations, legal disputes, or any other circumstances Yu Lijie Vice President and CFO 350,000 350,000
that result in negative impacts or losses to the company, corresponding deductions
from performance-based compensation will be made in accordance with internal Wang Xiaofeng Vice President 550,000 550,000
constraint mechanisms such as clawback requirements.
Wang Yongqing Vice President 575,000 575,000
About This Report Related-party Transaction
To standardize corporate related-party transactions, we have formulated the "Related-Party
Message from the
Transaction Management System," which provides clear provisions on the types of relat-
Chairman
ed-party transactions, pricing principles, decision-making procedures, and information dis-
closure. During the reporting period, we revised and improved the aforementioned matters.
Awards ed-Party Transaction Management System," fulfilling the related-party transaction approval
procedures. Independent Directors express independent opinions before submitting them
to the board of directors for review. Related parties abstain from voting during board of
Environment
directors and shareholders' meeting deliberations to ensure that related-party transactions
are fair, just, transparent, and equitable, thereby fully safeguarding the interests of minority
Society shareholders.
Governance
Sustainability-Related
Governance Mechanisms
Anti-Commercial
Bribery and Anti-Unfair Conflicts of Interest
Competition
As stipulated in the Company's Articles of Association, directors, supervisors, and senior
management personnel have a fiduciary duty to the company. Without the consent of
Appendix the shareholders' meeting, they are not allowed to exploit their positions for their own or
others' benefit by seeking business opportunities that rightfully belong to the company or
engaging in self-operated businesses or similar ventures to those of the company. It is the
responsibility of our directors, supervisors, and senior management to report any conflicts
or potent i al conflicts of interest with the company's interests and to comply with the rele-
vant laws, regulations, and internal procedures, ensuring that each director, supervisor, and
senior management personnel can perform their duties without being influenced by any
conflicting interests arising from other positions, activities, or relationships.
Investor Relations Investor hotline and investor email Performance briefings and investor reception days
Participated in investor reception days in Xiamen jurisdiction
About This Report
We fully respect and treat all investors equally. We have established
the "Investor Relations Management System" and strictly adhere
Received over 100 in 2023, hosting three performance briefings, and was select-
calls on the investor hotline ed for the "Best Practice for Annual Performance Briefing"
to relevant laws and regulations, as well as internal management
among listed companies in 2022.
systems such as the "Information Disclosure Affairs Management
Message from the
Chairman
System," "Information Disclosure Deferral and Exemption Business
Responded to over 50
Management System," "Corporate Bond Information Disclosure inquiries from investors on the
Affairs Management System," "Significant Information Internal E-interaction platform
Reporting System," and "External Information User Management
Awards Regulations." We have established effective communication chan-
nels that satisfy requirements such as the scope and timing of Institutional investor conferences
information disclosure outlined in the aforementioned systems.
Environment We have also implemented strict confident i ality mechanisms and
fulfilled our information disclosure obligations through appropri-
Participated in nearly 200
institutional investor conferences
ate channels. This ensures that company information is disclosed
Society Establishment of extensive and multi-level media
truthfully, accurately, completely, timely, and fairly to investors and
other relevant stakeholders, enabling them to timely understand
matrix
WeChat official account, video platform, and other
the company's situation and safeguarding their rights and interests. media platforms
Governance 01. In 2023, participated in national-level exhibitions such as
the China International Import Expo, Supply Chain Achieve-
We have strengthened communication with investors and en- Provided frequent and multi-angle coverage of the com-
Sustainability-Related ments Exhibition, China International Supply Chain Promo-
Governance Mechanisms hanced their understanding of the company by establishing an pany's business dynamics and key projects, such as timely tion Expo, China International Consumer Products Expo, and
Anti-Commercial investor relations management mechanism and employing diverse releases of easy-to-understand "Fast Fact of Annual Report (in The China Import and Export Fair to showcase the company's
Bribery and Anti-Unfair communication methods to ensure that investors can exercise their both Chinese and English)" and " Fast Fact of ESG Report (in development strategy and business highlights in "industrial-
Competition ization, internationalization, and digitization" to the market.
rights fully. The Securities Department of the company, serving as both Chinese and English)."
the functional department for investor relations management, han-
dles the daily affairs in this regard. During the reporting period, we Daily, People's Daily Online, CCTV News, and National Busi-
Appendix received an A-class acknowledgement from the Shanghai Stock Ex- ness Daily conducted in-depth analyses of the company's
change for 2022-2023 annual information disclosure. We were also business model through media interviews and feature films.
Also, introduced the company's typical business projects in
selected as the "2022 Best Practice for Annual Performance Brief-
markets along the "Belt and Road" init i ative on the occasion
ing" by the China Association for Public Companies. Furthermore,
of the tenth anniversary of the init i ative to create a positive
our Securities Department was honored as the "2023 Best Practice brand effect.
Case for BOD Office of Listed Companies " by the China Association
for Public Companies. 03. Conveyed the company's business value to the market
through public roadshows and media live broadcasts.
The Party Development
Endeavors
About This Report We stick to the guidance of Xi Jinping Thought on
Socialism with Chinese Characteristics for a New Era,
uphold the overall leadership of the Party, and focus
Message from the
Chairman on the principal task of "A better-quality and high-ef-
ficiency." We implement the action plan to pursue
excellence by deep learning, bold leadership, and
Awards with corporate operations, planning, deployment,
advancement, and assessment. By empowering busi-
ness with top-tier Party building, we aim to pave the
Environment
way for the company's high-quality development.
During this reporting period, our Party committee
Society
has fully leveraged its leadership role of " Set the
right direction, keep in mind the big picture, ensure
Governance the implementation of Party policies and principles",
and formulated the "List of Annual Exercise Respon-
Sustainability-Related sibilities of the full and strict governance over the
Governance Mechanisms
Party in 2023," further refining the responsibilities of
Anti-Commercial
members of the Party committee. In conjunction with
Bribery and Anti-Unfair
Competition the actual situation of the enterprise, we revised the
system concerning issues of "Major decision-mak-
ing, Major personnel appointments and dismissals, Risk Control and Compliance
Major project investment decisions, and Large Fund
Appendix Utilization" and the list of pre-research matters of We perfect our comprehensive risk management system in accordance with our corporate development plan, enhancing our risk prevention
the Party committee to effectively ensure the unity of capabilities and risk management levels through risk identification, monitoring and early warning, risk review, and response, thereby ensuring
the Party's overall leadership and the improvement stable operations. A risk management framework led by the Board Risk Control Committee, with subsidiaries and functional departments serving
of corporate governance, continuously enhancing as three lines of defense, has been established. This framework operates in coordination to manage all types of risks associated with our opera-
the level of scientific decision-making and corporate tions comprehensively and effectively. The Board Risk Control Committee consists of five directors with expertise in risk management. It super-
governance. vises and guides our risk management efforts through assessing potent i al significant risks to the business, analyzing and summarizing significant
risk events that have occurred, and conducting comprehensive inspections and risk assessments of the operating situation.
·Enterprise Risk Management Framework
Chairman Discipline Inspection Secretary
Audit Department: Deploys audit supervision
About This Report functions to urge subsidiaries to implement risk con-
trol management requirements.
Audit Department Supervision Office Third Defense Line
Supervision Office: Prevents integrity risks
Message from the through disciplinary inspection and supervision
Auditing Supervision functions.
Chairman
Headquarters
Chief Legal Chief Financial Leaders in Charge of Risk Control and Compliance Depart-
Risk Control Committee
Advisor Officer Functional Areas ment:Acts as the executive body of the Risk Control
Awards Committee and is the centralized department for
Executive Body
company risk management.
Risk Control Supply Chain Other Supply Chain Operations Department:Serves
Environment Finance
and Compliance Operations Functional Second Defense Line as the business risk management department, ap-
Deparmtnet
Department Department Department pointing and evaluating the performance of subsidi-
ary operations managers and personnel.
Society Finance Department: Manages financial risks
Supervision and
Centralized Risk
and directly oversees subsidiary financial personnel.
Management
Management
Guidance
Other Functional Departments: Handle other
Control
Line
Line
Governance risk management areas, such as capital risk, HR risk,
etc.
Sustainability-Related
Governance Mechanisms
Deputy General Manager of Risk Control:
Anti-Commercial
Bribery and Anti-Unfair Subsidiary personnel responsible for overall busi-
Competition ness risk management.
Leaders in Charge of
Subsidiary Operations Department:Frontline
Business Segments
General Manager
Subsidiaries
Subsidiary Operations Subsidiary Finance risk control personnel in operations, appointed by
Department Personnel the Operations Department and evaluated for per-
First Defense Line
Deputy General formance.
Appendix Subsidiary Business Subsidiary Other
Manager for Risk Subsidiary Finance Personnel:Frontline finan-
Control Departments Functional Personnel
cial risk control personnel, directly managed by the
Finance Department.
Subsidiary Other Functional Personnel:
Frontline personnel controlling other risks, directly
RISK
managed by the subsidiary's management team
Researches on macro and systemic risks, proposes risk preferences and risk tolerance with oversight and guidance from the headquarters'
level, and determines the overall risk tone. functional departments.
We have formulated various risk management-related
regulations and systems, including the "Risk Indicator
The first defense line con- The second defense line includes our headquarter The third defense line consists of our Monitoring and Management Regulations," "Interim
sists of subsidiary business risk management functional departments, among supervisory inspection functional de- Measures for Customer Negative List Management," as
About This Report departments and other which the Risk Control and Compliance Department partments, including the Audit Depart- well as internal management documents such as the
frontline functional de- serves as the centralized risk management depart- ment and the Supervision Office, led "Internal Control Manual," "Risk Management and Inter-
partments and personnel, ment. The Risk Control and Compliance Department by the Chairman and the Discipline nal Control Matrix," and "Classified Risk Early Warning
Message from the
responsible for identifying, is responsible for collaborating with the Supply Inspection Secretary, respectively. Indicators Table." Functional departments have also
Chairman
assessing, and responding Chain Operations Management Department, Finance They are responsible for conducting integrated risk management requirements into various
to risks during our business Department, and other functional departments to independent inspections of the effec- functional management systems, covering financial risk,
Awards dimensional risk management policies and proce- cesses, urging responsible parties to of risks closely related to our operations and manage-
dures, and report to the Board Risk Control Commit- rectify discovered issues to ensure the ment, forming a comprehensive and executable risk
tee. A non-executive director with risk management effective implementation and timely management system. During this reporting period, we
Environment experience has been appointed as the company's improvement of risk management. revised system documents such as the "Risk Indicator
Chief Legal Officer to provide professional support The Audit Department also regularly Monitoring and Management Regulations," "Guidelines
for risk management and compliance affairs. The reports the results of supervisory for Handling Significant Risks in Supply Chain Business,"
Society
Chief Legal Officer oversees the Risk Management inspections and the urging of rectifica- and "Legal Dispute Case Management Measures," further
and Compliance Department of the company. tions to the Board Audit Committee. solidifying the foundation for compliant operations from
Governance a system perspective.
Sustainability-Related
Governance Mechanisms
Anti-Commercial
Bribery and Anti-Unfair
Competition
Appendix
Risk Type Risk Description Risk Level Control Measures
Monitor the progress of key indicators for relevant
Due to the lack of timely adjustments and
About This Report Risk Identification updates in strategic planning, some contents
departments and business units, conduct annual
strategic checks on the implementation of strategies
Strategic may deviate from the corporate strategic
and business synergy, review the achievement of
We follow the COSO "Enterprise Risk Management Frame- Development goals or cannot be implemented or fail to High
strategic performance, and adjust and update after
Message from the work" and integrate our operational management and
Adjustment Risk adapt to changes in the internal and external
deliberation by the Board of Directors, the Strategy
Chairman business environment. This will affect the
business realities, identify our principal risks. We assess the and Sustainable Development Committee, and the
operational efficacy of overall planning .
specific risk levels associated with the main risks, determine management team.
Awards related responsible departments, and formulate the corre- Unreasonable procurement methods, Specify detailed procurement standards for public
sponding risk inventories. This process results in the creation Procurement unscientific bidding or pricing mechanisms, tendering, invited tendering, inquiry, competitive
of a risk management and internal control matrix, which is Process and irregular authorization approvals may negot i ation, sole sourcing, and direct purchasing.
High
Environment regularly updated. Management lead to purchases of inferior quality at high Except for direct purchasing, other methods should
Risk prices, causing economic losses to the be included in the procurement request and
Taking the risks of strategic development adjustment and enterprise. submitted for approval.
Society procurement process management, which we have already
identified, as examples:
Governance
Sustainability-Related
Governance Mechanisms
In strict adherence to regulations such as the "Risk Indicator Monitoring and Management Regulations," we enforce a risk indicator early warning and risk
Anti-Commercial information reporting mechanism:
Bribery and Anti-Unfair
Competition
Risk For daily risk indicators, our functional departments, and the risk management Regarding specified risk issues, the functional departments of us and each subsidiary,
Reporting departments of each subsidiary are responsible for managing, tracking, handling, in conjunction with their risk policies, determine the business operation risk warning
and timely reporting. The Risk Control and Compliance Department of us ensures the elements. Standards are set reasonably according to different business types and risk
Appendix implementation of risk response measures. The Risk Control and Compliance De- warning elements, and response measures are formulated. Business risks are iden-
partment keeps abreast of significant risk warning issues reported by each business tified, warned, and controlled. Risk issues classified as early warning and response
segment, tracks and compiles the latest progress of each significant risk warning issue levels must be reported to our CEO, Chairman, and Party Secretary within 24 hours.
monthly, analyzes the overall significant risk status of us, and reports risks classified as Dynamic management of risks is practiced, with risk levels, estimated losses, and re-
early warning and response levels to the Risk Control Committee in a bi-weekly report sponse measures re-evaluated every two weeks, and progress reported in a bi-weekly
format. report format.
Risk Screening Internal Control Audit
Risk Review During the reporting period, we conducted a series of risk screen- In this reporting period, we conducted internal control audits
About This Report ing projects to prevent potent i al risks: and inspection projects according to the annual audit work plan
and strategic focus areas, including the construction of inter-
We regularly organize risk re-
nal control systems, decision-making and execution of foreign
Message from the views for each business segment
? To proactively identify potent i al risks in new business models investment projects, key control points in the business execution
Chairman and subsidiary to timely identify
like integrated projects and to mitigate or prevent operational and process of purchasing and payment, sales and collection, etc. We
operational risks, deficiency in
management risks, integrated project risk screenings were carried raised issues including promoting institutional construction and
management processes, and exe-
cution. We promote optimization,
Awards grated projects were inspected, with individual inspection reports the requirement for enhanced management refinement, along
improvement, and rectification
issued for each project. These reports highlighted existing issues with corresponding audit opinions. We tracked and ensured
by the related units, and assess
and suggested improvements, tracking the implementation prog- the implementation of rectification measures according to the
Environment and evaluate the sufficiency and
ress of business units to enhance the risk control levels of integrat- schedule. We also carried out an internal control effectiveness
effectiveness of risk management
ed projects effectively. evaluation, covering major businesses and matters like pro-
through audit inspections, inter-
curement, asset management, sales, engineering projects, risk
Society nal control evaluations, and more, ? Two special screenings were conducted on the effectiveness
assessment, and internal supervision, focusing on high-risk areas
thereby strengthening risk super- of guarantees and some trade business compliance risks. Poten-
such as sales and procurement management risks, and engaged
vision. t i al risks in business operations and models were identified, and
Governance third-party professional institutions to audit the effectiveness of
solving suggestions and standardized operation guidelines were
internal controls.
Sustainability-Related provided to related business departments to help them standard-
Governance Mechanisms ize operations and resolve compliance risks.
Anti-Commercial
Bribery and Anti-Unfair ? Project risks were assessed and screened through audit process- Control Evaluation
Competition es. In 2023, we reviewed key integrated project feasibility study
reports, discussing and analyzing cooperation models, process
During the reporting period, we collaborated with third-party
designs, risk exposures, and guarantee measures with functional
professional institutions to advance the construction of a subsid-
departments and business units to prevent risks. We approved
Appendix iary risk control capability evaluation system. We established an
index library for evaluating the risk control capabilities of subsid-
construction projects.
iaries, completed the risk control capability evaluation, and used
the evaluation to promote construction, thereby enhancing the
business operation risk prevention capabilities.
About This Report Training on Risk Control
We place a high value on employee training in risk control and compliance, encouraging em-
Message from the
ployees to proactively identify and report potent i al risk and compliance issues. This emphasis
Chairman
plays a critical role in leveraging the "first line of defense" for contributing intelligence and
suggestions to enterprise risk management. During this reporting period, we conducted various
Awards stilling a sense of risk prevention throughout our operations, enhancing the risk prevention and
compliance awareness of employees, and the relevant personnel:
Environment
Our intranet features special columns for risk control observation and compliance
perspectives, using a combination of text and images to monthly disseminate infor-
Society mation on risk control and compliance aspects, including risk points, policy regula-
tions, cases, and tips. A collection column for State-owned Assets Supervision and
Administration Commission (SASAC) regulations and policies is also available for
Governance
relevant personnel to reference and use.
Sustainability-Related
Governance Mechanisms Promotional work on risk control themes was carried out through risk control obser-
Anti-Commercial vation platform on the "Fangyuan Lecture", including the wrriten of 14 articles such
Bribery and Anti-Unfair as "Interpretation of Central SOEs Comprehensive Risk Management Guidelines"
Competition
and "Discussion on ESG Risk Management in Supply Chains" through the "Fangyuan
Youdao" internal public account.
Training for all employees on topics including "ESG and Corporate Sustainability,"
Appendix
"Key Points in Legal Risk Prevention for Equity Investments by State-owned Enter-
prises," "Compliance Risk Prevention in the Health Technology Business," "Case
Studies on Illegal and Unlawful Practices in the Futures Market," and "The Tempta-
tion and Punishment of Insider Trading" were conducted.
Regular collective learning sessions within risk control-related departments were
organized, sharing work experiences and learning insights.
Communications with Stakeholders
We maintain positive communication with stakeholders through a diversified communication Stakeholders Concerning Topics Communication Methods
About This Report mechanism, promptly understand their suggestions and expectations and incorporate them into
• Responsible Supply Chain
our development planning considerations to continuously enhance our sustainability capabilities. • R&D Innovation
• Environmental Compliance
Message from the • Energy Management
Chairman • Customer Rights Protection • Social Welfare Activities
Stakeholders Concerning Topics Communication Methods
Media • Equal Employment • Public Company Information Disclosure
Institutions • Human Rights Protection • Social Media and Media Communications
• Employee Feedback Solicitation
• Occupational Health and • Employee Training and Activities
Awards Safety
Safety • Employee Satisfaction Surveys
• Tax Compliance
• Equal Employment • Employee Feedback and Complaint
Employees • Complaint Mechanism and
• Training and Education Channels
Environment • Anti-corruption • Workers' Representative Meetings
Whistleblower Protection
• Tax Compliance • Company WeChat Public Account and
• Occupational Health and
Intranet "Colleague Circle"
Society Safety
• Training and Education
• Responsible Supply Chain
• Customer Satisfaction Surveys • Employee Communication • Online Exchanges
• Anti-corruption
• Customer Service and Complaint Government • Customer Rights Protection • Visits and Research
Governance • Anti-unfair Competition
Clients Handling and Regulatory • Operations Compliance • Participation in Policy Making Suggestions
• R&D Innovation
Sustainability-Related • Social Media and Company Publications Bodies • Risk Management • Government Project Cooperation
• Complaint Mechanism and
Governance Mechanisms • Exhibitions and Industry Events • Anti-corruption • Information Disclosure
Whistleblower Protection
Anti-Commercial • Information Security
Bribery and Anti-Unfair • Occupational Health and • Supplier Conferences • Complaint Mechanism and
Competition Safety • Exhibitions and Industry Events Whistleblower Protection
Suppliers • Human Rights Protection • Visits and Research
• Operations Compliance • Discussions and Training • Tax Compliance
• Site Visits
• Anti-unfair Competition • Big Data Monitoring • Environmental Compliance
• Online Communication
Appendix Banks • Operations Compliance
• Project Cooperation
• Environmental Compliance • Risk Management
• Business Training
• Human Rights Protection • Public Company Information Disclosure • Anti-corruption
• Compliance Operations • Shareholders' Meetings • Site Visits
Investors • Risk Management • Performance Briefings Non- • Energy Management • Company Website
• Anti-corruption • Investor Surveys governmental • Information Security • Social Media
• Anti-unfair Competition • Investor Hotline/Interactive Easy Platform Organizations • Tax Compliance • Industry Activities and Social Welfare
• Tax Compliance Activities
Material Issues Assessment
We pay attention to identifying and managing sustainable development issues, following re-
About This Report porting frameworks such as GRI, and combining our business operations to form a substan-
tive issue assessment process. Every year, we invite internal and external stakeholders to
participate in the material issue assessment and responds to the content of material issues
Message from the in this report based on the assessment results.
Chairman
Awards
Material Issue Stakeholder Survey and
Environment
Identification Assessment
Society
Based on reporting framework require- Through material issue survey ques-
ments like GRI and SASB, and considering tionnaires, we invited management and
Governance our business characteristics and exem- stakeholders to participate in the material
plary ESG practices in the industry, we issue assessment work, understanding
Sustainability-Related reviewed and analyzed the results of our the sustainable development issues of
Governance Mechanisms
Anti-Commercial fy 26 ESG issues for 2023. and external surveys.
Bribery and Anti-Unfair
Competition
Appendix
Issue Importance Ranking
Following the principle of double materiality, issues were analyzed and prioritized based
on their importance to our financial impact and to stakeholders impact, forming a material
issue matrix.
About This Report Issue Assessment Results Review
Environmental Issues
The final assessment results of material issues were reviewed and confirmed by our Strategic and Sustainable Develop- 1 Environmental Compliance 5 Exhaust Air Management
Message from the
Chairman ment Committee and detailed in this report, with special emphasis on the three issues identified as most important in this
assessment (operations compliance, tax compliance, and occupational health and safety).
Awards
Wastewater Management
Environment
Social Issues
Society 22 19 20 9 Equal Employment 14 Employee Communication
Importance to Xiamen ITG Group
Governance 11 Occupational Health and Safety 16 Responsible Supply Chain
Sustainability-Related 12 Training and Education 17 Customer Rights Protection
Governance Mechanisms
Anti-Commercial
Bribery and Anti-Unfair
Competition
Governance Issues
Appendix Protection
Importance to Stakeholders Innovation
About This Report
Message from the
Anti-Commercial Bribery and Anti-Unfair Competition
Chairman
Awards
We are committed to operate with integrity, cooperate with all relevant parties according to the highest standards of business ethics and corporate governance, thereby establishing a strong corporate repu-
tation. To continuously foster an atmosphere of fair competition and integrity, we have developed a "Code of Business Conduct." This code sets forth norms for anti-corruption, anti-bribery, anti-fraud, avoid-
Environment
ance of conflicts of interest, protection of trade secrets, anti-monopoly, and anti-unfair competition. We encourage suppliers, contractors, and other partners to comply with these standards, working together
to build a regulated, harmonious, honest, and transparent business environment.
Society
Achieved In Progress
Governance
The Management Objectives for 2023 Completion Status
Sustainability-Related
Governance Mechanisms 1 No incidents of commercial bribery or corruption occurred throughout the year
Anti-Commercial
Bribery and Anti-Unfair
Competition
Appendix 4 No incidents of infringing on others' intellectual property rights occurred throughout the year
Anti-Monopoly and Anti- Anti-Corruption and Anti-
Unfair Competition Commercial Bribery
About This Report We respect the requirements of relevant international We adhere to anti-corruption and integrity in practice, upholding a "zero tolerance" principle towards fraudulent activities. We oppose any form
conventions and strictly adheres to the laws and reg- of corruption and commercial bribery, committing to strictly comply with the anti-corruption and anti-commercial bribery laws and regulations
ulations of China and the countries (regions) where of China and the countries (regions) where we operate, as well as the provisions and guidelines related to anti-corruption and anti-commercial
Message from the
Chairman we operate. We oppose monopolistic and unfair com- bribery of multilateral international financial institutions and our own regulations. Any form of bribery is prohibited, including but not limited to:
petitive practices, as well as improper trading that providing any improper kickbacks and other forms of bribery to another business or person directly or indirectly; requesting any form of benefit
disrupts market order. We insist on operating with from customers, suppliers, or other stakeholders; offering or receiving compensation or other benefits that may unfairly affect our business. We
Awards tion. strengthen employee behavior norms and management.
Environment
Society
Business Ethics Supervision System
Governance
We continuously promote the improvement of specialized supervision by the disciplinary inspection, inter-
Sustainability-Related nal party supervision, integration of various types of supervision mechanisms, and grassroots supervision
Governance Mechanisms systems, forming a joint supervisory force. A comprehensive business ethics supervision network has been
Anti-Commercial established, led by our Discipline Inspection Committee, executed by the Supervision Office, and closely col-
Bribery and Anti-Unfair
laborated with related departments, covering us and our subsidiaries. The Supervision Office is responsible
Competition
for party conduct building, integrity education, supervisory management, clue reception, investigation and
disposal, comprehensive coordination, and more, playing a vital role in supervising the implementation and
promoting development. We have also set up a coordination group for party conduction, integrity construc-
Appendix tion, and anti-corruption to coordinate and support among departments like organization, audit, finance,
assisting in the advancement of party conduct, integrity construction, and anti-corruption coordination
efforts. Furthermore, we continuously push the deep implementation of the "1+X" special inspection mecha-
nism, integrating specialized supervision with functional supervision, encouraging coordination, information
sharing among the Supervision Office, functional departments, and party organization discipline inspection
commissions at all levels, to enhance the overall effectiveness of supervision.
About This Report Business Ethics Risk Prevention and Control
We integrate business ethics risk control into the operational risk management system, in conjunc- For key areas and critical positions, we identify corresponding business ethics risks, like the
Message from the
tion with the actual operations of our functional departments and business segments. We target key potent i al for interest transfer or collusion with suppliers among personnel related to the
Chairman
areas and critical positions involved in property transactions, bidding, construction projects, and supply chain business unit. We have developed an "Integrity Risk Control Handbook," clari-
bulk trading. We have developed and improved management systems such as the " Business Ethics fying corresponding control measures and implementing dynamic tracking management of
Awards By comprehensively utilizing education, early warning, regulatory, and supervisory methods, we are conducted, control measures are timely revised, and the integrity risk control mecha-
conduct early prevention, mid-term monitoring, and post-event handling to effectively prevent and nism is improved. We effectively prevent and resolve integrity risks through precise daily
investigate potent i al corrupt practices in management and operations. supervision, special supervision, and strengthening grassroots supervision.
Environment
During the reporting period, we deepened the use of the "1+X" supervision mechanism,
strengthening collaboration among related functional departments, conducting special
Society supervisory inspections like asset leasing management, business hospitality management,
seal usage management for 29 sessions, demanding immediate rectification of discovered
issues, urging the perfection of related regulations and systems. The Risk Control and Com-
Governance
pliance Department organized health technology sector subsidiaries to self-inspect and
Sustainability-Related self-correct potent i al commercial bribery behaviors and guided relevant practitioners to
Governance Mechanisms sign the "Integrity Commitment Letter."
Anti-Commercial
Bribery and Anti-Unfair
Competition
Appendix
Collective Discussion Meeting on Business Ethics Risk Control Embedded in Operational Risk Control On-site Inspection of the Hainan ITG Smart Carrying out "One Special Supervision and
Logistics Park Project Inspection per Quarter"
About This Report The Accountability Mechanism for Violations in Business and Business Ethics Education and Training
Investment Operations
We value business ethics education and training. By creating the "Pure Wind Casting Chain" busi-
Message from the ness ethics culture brand, and disseminating positive messages about integrity through various
For actions violating business ethics and integrity standards, we have developed the "Management System for
Chairman
Accountability of Violations in Business and Investment Operations" and "Guidelines for Investigating Clues forms of education and propaganda, we enhance employees' awareness of laws and integrity, and
of Violations in Business and Investment Operations," establishing a long-term accountability mechanism. advance the construction of corporate integrity culture.
In this reporting period, we formulated the "Integrity Culture Publicity and Education Month Work
Awards leadership of the party committee, which led by a leader from the Audit Department and with members from
Plan," organizing "Reading for Integrity, Stories of Integrity, Warnings for Clarity, Letters Home about
the Audit Department, Party Committee Office, Risk Control and Compliance Department, Supervision Office, etc.
Integrity, Creative Expressions of Integrity, Media Advocacy for Integrity" six major series of activi-
Environment ties. We continuously deepened case-based warnings, holding "Learning from Cases to Strengthen
Leadership Group for Accountability Investigation and Prosecution of Defenses" warning education exhibitions around "the six disciplines" showing typical cases of
state-owned enterprises investigated in recent years, and over 1,000 participants attended the
Unauthorized Business Operations and Investments
Society exhibitions. We organized integrity party classes like "Party Discipline and State Laws Around Us"
Leader Head of Audit Department and "Deepening the Governance of Corruption in State-owned Enterprises, Firmly Eliminating the
Breeding Ground for Corruption," enhancing the specificity and effectiveness of warning education.
Governance
Leader of Risk Control Leader of During the reporting period, no incidents of business ethics violations occurred due to corruption
Member Leader of audit Leader of Party
Sustainability-Related and Compliance Supervision or bribery .
Department Committee Office
Governance Mechanisms Department Office
Anti-Commercial
Bribery and Anti-Unfair The Audit Department is the specialized department responsible for the accountability work of violations
Competition in business and investment operations, undertaking the accountability work according to the procedure
for investigating clues of issues. Upon receiving related complaints, we will init i ate an investigation into the
over 1,000
participants attended
violations in business and investment operations; we may also conduct investigations on our own. The task
the exhibitions
force for checking issue clues will be composed of the specialized institution, relevant functional depart-
Appendix
ments, subsidiary operating units, and personnel from related intermediary organizations, responsible for the
actual conduct of the verification work and ultimately forming a verification work report. The task force will
propose suggestions for accountability and make processing decisions after review by the appropriate leader-
ship bodies according to cadre management authority. The methods of accountability include criticism and
notification, job adjustment or suspension, termination of employment, and deduction of performance pay,
among others. The task force will also supervise the accountability for violations in business and investment
operations to eliminate all forms of dereliction of duty and negligence.
Intellectual Property
Rights Protection
Intellectual Property Rights Management Structure
About This Report We respect intellectual property rights,
striving to protect our Intellectual Property
Rights from infringement while also respect-
Message from the
ing the Intellectual Property Rights of others, Legal Affairs
Chairman Brand Management Supply Chain Operations ITG Digital Science
Department and
committing not to engage in any commercial Department Department and Technology
Risk Management
activities that infringe upon others' IP rights.
Awards tion of intellectual property rights and have the management al property rights compliance intellectual proper- port for intellectual
established a clearly defined organizational of trademarks and management of exported goods, ty rights related to property infringe-
structure for Intellectual Property Rights brand names. guiding units within a reasonable computer software ment, disputes, and
Environment
management to effectively implement the scope to understand the intel- copyrights during actions that harm
IPR management tasks. lectual property status of their the construction our intellectual prop-
Society export goods and submit relevant of our information erty rights.
certification documents to ensure systems and data
Governance new intellectual
pliant.
property rights
Sustainability-Related
Governance Mechanisms
Anti-Commercial
Bribery and Anti-Unfair new trademark
Competition registrations
We have developed a "Trademark and Brand Names Management Measures," detailing the responsibilities, management methods, registration and
protection, transfer, and authorized use of trademarks and brand names to strengthen their protection. In the supply chain business, inspections re-
new copyright risks during business expansion. The Brand Management Department periodically conducts self-examinations and corrections of promotional chan-
Appendix registrations
nels to address any IPR infringements. Additionally, internal promotional and educational efforts are made to raise employee awareness about IPR
protection.
new patent
authorizations tions, and 3 new patent authorizations; no IP infringement incidents occurred throughout the year.
Tax Compliance Complaint Mechanism and Whistleblower Protection
We strictly adhere to the "Enterprise Income Tax Law of the People's Republic of China" and other We welcome stakeholders to report any conduct that violates or may violate our Code of Business
About This Report relevant tax regulations of the country and the regions where we operate, insisting on honesty and Conduct and relevant laws and regulations, supporting and protecting the rights of all stakeholders to
fulfilling tax obligations lawfully. make complaints and suggestions. By establishing the "Regulations on the Protection of Petitioners and
Informants," we commit to strict adherence to confident i ality obligations and adopt a zero-tolerance
Message from the The Finance Department is responsible for tax management and compiles guidelines for daily tax
policy towards retaliatory actions, thus fully safeguarding the legal rights and interests of complainants.
Chairman declarations and tax calculations to guide and standardize the tax work of us and our subsidiaries.
According to the "Rules for Handling Reports and Accusations by Disciplinary Inspection and Supervisory
We follow internal control processes to identify, assess, and manage the tax risks that may arise
Organizations" and "Regulations on Letters and Visits," we offer various channels such as telephone,
from operational activities, appropriately measuring, managing, and controlling these risks to
email, and face-to-face communication. Our Supervision Office will handle the reports, init i ate
Awards investigation and processing procedures, and promptly provide feedback on the investigation results and
date with changes in tax laws and policies to strengthen tax risk prevention and ensure legal and
handling status to the complainants.
compliant tax operations; we have signed a "Tax Compliance Cooperation Agreement" with local
Environment tax authorities, establishing a relationship of trust and an active and transparent communication Per the "Regulations on the Protection of Petitioners and Informants," the Supervision Office will maintain
mechanism. strict confident i ality when accepting and investigating complaints and reports. Complaint materials are
classified as confident i al; without the consent of the complainant, the identity and information of the
In 2023, we released internal dissemination articles such as "Frequent Tax-Related Cases in the Four
Society complainant and the content of their report cannot be disclosed or leaked. Anonymous reporting is per-
Major Foreign Trade Areas: Understanding the Hidden Risks in Business Models," "The Process and
mitted, and aside from the necessities of case investigation, the Supervision Office is not allowed to verify
Challenges in Handling Abnormal Vouchers," and "Hot Issues in Export Tax Refund (Exemption),"
handwriting or conduct document examinations on anonymous complaint materials unauthorized. If
Governance alerting subsidiaries to prevent and respond to daily tax-related risks.
cooperation from other departments is needed to provide materials, a "Confident i ality Agreement" must
Sustainability-Related Furthermore, through tax training, we strengthened employees' awareness of tax-related risks, be signed as per the regulations, clearly defining confident i ality obligations.
Governance Mechanisms maintaining the transparency, integrity, and compliance of corporate taxation. In 2023, we invited
We strictly prohibit any department or individual from suppressing or obstructing complainants from
Anti-Commercial external institutions to conduct a themed sharing on "Taxation in Mergers and Acquisitions," cover-
Bribery and Anti-Unfair legally filing complaints and reports under any pretext. forbid any unauthorized investigation into the
ing the main tax issues and challenges involved in corporate restructuring, providing guidance for
Competition identity of the complainants, and prohibit any form of retaliation against the complainants, their relatives,
the lawful and regulatory handling of such matters through case analysis. Additionally, a themed tax
or presumed complainants by any means or pretext. Individuals who violate confident i ality obligations or
training "Vast Seas, Compliance Escort" was held, starting from tax concerns in overseas investment
retaliate against complainants will be dealt with severely according to relevant regulations, and their legal
projects' investment, financing, and operational structures, conducting framework organization and
responsibilities will be pursued.
Appendix case sharing, thereby enhancing the overseas tax compliance awareness of relevant employees.
During this reporting period, we paid a total of 2,471,376,100 RMB in taxes, with no tax-related viola-
tions occurred. Complaint
Report 26th Floor, ITG Center, 4688 Xianyue
and Report 0592-5898586
Address Road, Huli District, Xiamen City
Hotline
Data Overview
Indicator Unit 2021 2022 2023
Environment Electricity consumption
kWh/hundred-mil-
About This Report lion RMB of oper- 812.03 51,987.37 73,058.74
intensity
Indicator Unit 2021 2022 2023 ating revenue
Steam consumption3 / 74,541.45 139,112.81
Environmental Investment
Message from the Liquefied gas consumption Ton / 4.27 11.12
Chairman Environmental investment
Ten-thousand
/ / 226.53
RMB Thermal coal consumption / 8,012.84 10,007.03
Natural gas consumption m? / / 1,169,092.15
Number of environmental
/ / 0 Gasoline consumption / / 433,068.61
Time
Awards Number of environmental Diesel (mobile sources)
/ / 21 consumption Litre
emergency drills
GHG Emissions1 Diesel (stationary sources)
/ / 3,170.00
consumption
Environment Scope 1: Direct GHG emis-
sions
Scope 2: Indirect GHG emis- tCO2e Water Resources
sions
Society Water withdrawal / / 917,616.8
m?
Total GHG emissions 3,467.31 246,460.48 357,093.61 Water consumption 51,899.85 / 394,227.80
tCO2e/hun- m?/hundred-mil-
Governance GHG emission intensity
dred-million RMB
Water consumption density lion RMB of oper- 11.17 / 84.19
of operating reve- ating revenue
nue
Waste
Air Pollutants
Appendix Hazardous Waste
Nitrogen oxides (NOx) / / 2.99
Hazardous waste generation / / 62.81
Data Overview Sulfur oxides (SOx) / / 1.40 Ton
Transfer and disposal vol-
GRI Index Particulate matter (PM) Ton / / 3.15 ume of hazardous waste
ISDS Index Non-methane volatile or- General Waste
/ / 0.13
ganic compounds (NMVOCs) Domestic waste generated 439.24 / 2,755.04
SASB Index Ton
Wastewater Pollutants Domestic waste recycled 57.05 / 37.42
Indicators Reference
for ESG Report of Listed Volume of wastewater dis- Packaging Materials
m? / / 523,389
Chinese Central State- charge
Plastic products consump-
Owned Enterprises / / 63.45
Energy Consumption tion
Ton
Paper products consump-
Electricity consumption2 kWh 3,773,953.58 271,331,451.20 342,095,277.67 / / 7.50
tion
Note 1: The primary reasons for the increase in the company's total GHG emissions in 2023 compared to 2022 are as follows: The GHG emissions calculation scope expanded in 2023 due to the acquisition of B.J.ZH.F. Panther Medical Equipment Co., Ltd. during the reporting
period. Additionally, the production capacity increased at the Keerun Tire Factory (Rizhao) and Keerun Tire Factory (Dezhou) during the reporting period, resulting in a corresponding increase in energy consumption.
Note 2 and Note 3:The increase in electricity and steam consumption in 2023 compared to 2022 is mainly attributed to the capacity expansion of the Keerun Tire factories in Rizhao and Dezhou during the reporting period.
Employment
Indicator Unit 2021 2022 2023 Indicator Unit 2021 2022 2023
Employees Composition Number of females in Science, Tech-
About This Report nology, Engineering, and Mathematics Person / / 56
Total employees Person 5,504 6,936 6,947
(STEM) positions
Employees Composition by Gender
Percentage of females in Science, Tech-
Message from the Male 3,393 4,134 4,305 nology, Engineering, and Mathematics % / / 19.58
Person
Chairman Female 2,111 2,802 2,642 (STEM) positions
Employees Composition by Age Employment in Local Province
Under 30 1,672 2,387 2,058 Number of local employees Person / / 4,414
Awards 30-50 Person 3,320 3,994 4,303 Proportion of local employees % / / 63.54
Over 50 512 555 586 Number of local female employees Person / / 1,729
Employees Composition by Education Proportion of local female employees % / / 65.44
Environment
Master's degree and above 500 667 725 Number of local senior management
Person / / 5
personnel
Bachelor's degree Person 2,289 2,960 3,101
Proportion of local senior management
% / / 100.00
Society Others 2,715 3,309 3,121 personnel
Employees Composition by Nationality Number of local female senior manage-
Person / / 2
ment personnel
China / / 6,583
Governance Person Proportion of local female senior man-
% / / 100.00
Others / / 364 agement personnel
Employees Composition by Function Employment of People with Disabilities
Appendix Sales 3,677 2,813 2,876 Number of employees with disabilities Person / 5 12
Technical 145 172 369 Proportion of employees with disabili-
Data Overview % / 0.12 0.17
Finance 317 409 430 ties
GRI Index Administrative 1,365 752 800 Gender Distribution in Management4
ISDS Index Production / 2,790 2,472 Male management 109 110 310
Person
SASB Index Female production / / 712 Female management 33 32 138
Indicators Reference Female sales Person / / 1,141 Percentage of female managers % 23.24 22.54 30.80
for ESG Report of Listed Senior management / / 5
Female technical / / 74
Chinese Central State- Person
Owned Enterprises Female finance / / 300 Including: Female senior management / / 2
Female administrative / / 415 Percentage of female senior manage-
% / / 40.00
ment
Number of employees in Science, Tech-
Junior management Person / / 288
nology, Engineering, and Mathematics / / 286
(STEM) positions Notes4:Management refers to mid-level and above managers at the company headquarters, as well as senior management person-
nel in each subsidiary company.
Employment
Indicator Unit 2021 2022 2023 Indicator Unit 2021 2022 2023
Including: Female junior management Person / / 103 Employee Training
About This Report
Percentage of female junior manage- Total investment in employee training Ten-thou-
/ / 35.76 220.50 644.00 678.60
ment throughout the year sand RMB
%
Message from the Percentage of female management in
/ / 28.50
Total number of employees trained Person / 5,933 6,095
Chairman revenue-generating departments
Ten-thou-
Nationality Distribution in Management Average training cost per employee / / 0.10
sand RMB
China / / 446
Others / / 2
Awards Person
Employment Contract Number of male employees trained / / 3,659
Employees with signed labor contract Person 5,504 6,936 6,947
Environment Labor contract signing rate % 100.00 100.00 100.00 Percentage of female employees trained / 39.14 92.20
%
Employee Turnover
Employee training coverage rate / 85.54 87.74
Number of employees at the beginning
Society of the year
Total training hours for employees / 73,446 114,430.86
Number of new hires during the year 1,172 1,633 1,657 Hour
Average training hours per employee / 10.59 16.47
Governance Number of departures 924 602 643
Employee Training Breakdown by Type
Including: Departures of employees
/ / 267
under 30
Total online training hours Hour / / 86,895.23
Appendix Departures of employees
/ / 358 Employee Performance
aged 30 to 50
Data Overview
Departures of employees Person
/ / 18 Percentage of employees undergoing
GRI Index over 50 regular performance and career devel- % / / 100.00
ISDS Index Including: Departures of Chinese em- opment assessments
/ / 642
ployees
SASB Index Compensation and Benefits
Departures of Non-Chinese
Indicators Reference / / 1
employees Male entry level salary / / 2,600
for ESG Report of Listed
Chinese Central State- Including: Departures of Female em-
/ / 241
Owned Enterprises ployees Female entry level salary / / 2,600
Departures of Male employ- RMB
/ / 402 Government-mandated local minimum
ees / / 2,030
wage for males
Annual turnover rate % 14.37 8.43 7.48 Government-mandated local minimum
/ / 2,030
wage for females
Employment
Indicator Unit 2021 2022 2023 Indicator Unit 2021 2022 2023
Ratio of male entry level salary to local Employee Care and Welfare
About This Report male minimum wage
/ 380.95 128.08
% Defined benefit plans and other retire- Ten-thou-
Ratio of female entry level salary to / / 2,140.67
/ 380.95 128.08 ment plans sand RMB
local female minimum wage
Message from the
Chairman Average monthly basic salary for male Company contribution percentage to
/ / 40,000
senior management defined benefit plans and other retire- % / / 3
ment plans
Average monthly basic salary for female
/ / 40,000
senior management
Total duration of paid parental leave
Awards Average annual compensation for male
/ / 1,450,900 requested by employees
/ / 1,696.67
senior management
Average annual compensation for fe- Including: Total duration of paid paren-
/ / 1,016,200
Environment male senior management tal leave requested by employees (as / / 957.75
primary caregivers)
Average monthly basic salary for male
/ / 17,195.00 Day
management
Total duration of paid parental leave re-
Society Average monthly basic salary for female quested by employees (as non-primary / / 738.92
/ / 17,195.00 caregivers)
management RMB
Average monthly basic salary for
/ / 6,455.00 Duration of paid family or caregiving
Governance non-management male employees / / 1,402.50
leave excluding maternity leave
Average monthly basic salary for
/ / 6,455.00
non-management female employees Human Rights Impact Assessment
Appendix
Mean wage gap / / 0 Minimum notice period for operational
Day / / 30
changes
Data Overview
Median wage gap / / 0 Security Practice
GRI Index
Number of security personnel who have
ISDS Index Mean bonus gap / / 0 received training on human rights poli- / / 230
cies or procedures
SASB Index
Median bonus gap / / 0
Indicators Reference Total number of security personnel
Person / / 17
for ESG Report of Listed Freedom of Association and Collective Bargaining employed by the company
Chinese Central State-
Owned Enterprises Total number of employees covered/ Total number of third-party security per-
Person / / 3,150 / / 213
protected by collective agreements sonnel
Percentage of security personnel who
Percentage of employees covered/pro-
% / / 45.34 have received training on human rights % / / 100.00
tected by collective agreements
policies or procedures
Occupational Health and Safety Market
Indicator Unit 2021 2022 2023 Indicator Unit 2021 2022 2023
Work Safety Input Resolution of Complaints
About This Report
Total annual investment in occupational Ten-thou- Total number of product or service-re-
/ / 3,803.15 / 30 33
health and safety sand RMB lated complaints
Case
Message from the Performance of Occupational Safety Training Total number of resolved product or
/ 30 33
Chairman service-related complaints
Total number of participants in occupa- Partici-
/ / 24,881
tional safety training pant Timeliness rate of responses to product
% / 100.00 100.00
or service-related complaints
Information Security and Privacy Protection
Awards
Number of participants in safety emer- Partici-
/ / 3,951 Information security incidents Case / 0 0
gency drills pant
Environment Number of offline safety training ses- Number of customers affected by data
Session / / 504 / / 0
sions breaches
Person
Number of online safety courses Course / / 39 Number of employees affected by data
/ / 0
Society breaches
Occupational Health and Safety Performance
Incidents of customer privacy infringe-
Number of workers covered by the occu- Case / / 0
ment
Governance pational health and safety management / / 7,161
system Research and Development Investment
Person Total investment in science and technol- Ten-thou-
Number of occupational injuries / / 1 / 490 5,154.23
Appendix ogy research and development sand RMB
Number of occupational fatalities / / 0 Intellectual Property Rights
Data Overview
GRI Index Number of new patent applications / 2 0
Occupational fatality rate % / / 0
ISDS Index Number of new patents granted 0 / 3
SASB Index Total duration of work-related injury
Day / / 55 Number of new copyright applications / / 8
losses
Indicators Reference
for ESG Report of Listed Number of new copyrights registered 6 21 29
Total number of occupational injury
Case / / 1 Case
Chinese Central State- incidents
Number of new trademark applications / / 29
Owned Enterprises
Total recordable injury frequency rate Number of new trademarks registered 86 112 32
/ / 0.08
(TRIFR) - employees
/
Lost time injury frequency rate (LTIFR) - Total new intellectual property rights
/ / 4.41 92 135 64
employees acquired in the year
Market Corporate Governance
Indicator Unit 2021 2022 2023 Indicator Unit 2021 2022 2023
Supplier Business Ethics
About This Report
Communication and Training on Anti-corruption Policies
Total number of suppliers / 47,525 48,232
Percentage of directors, supervisors,
Message from the and senior management who have been
/ / 100.00
Chairman Number of suppliers in the province briefed on anti-corruption policies and
/ 7,966 7,054 procedures
where the company is located
/ / 100.00
Awards anti-corruption policies and procedures
Unit
Number of suppliers outside Mainland %
/ / 10,240
China Percentage of directors, supervisors,
Environment
and senior management who have / / 100.00
Total number of suppliers reviewed by received anti-corruption training
/ 8,617 13,513
the company in the year
Society
Total number of new suppliers admitted Percentage of employees who have
after reviewed by the company in the / 6,673 10,802 / / 100.00
received anti-corruption training
year
Governance
Violations of Business Ethics
Appendix Community
Incidents of Commercial Bribery and
/ / 0
Corruption
Data Overview Indicator Unit 2021 2022 2023
GRI Index Community Engagement
ISDS Index Ten-thou- Conflicts of Interest Incidents / / 0
Amount of external donations 943.20 151.00 153.00
SASB Index sand RMB
Case
Indicators Reference
for ESG Report of Listed Number of volunteer service Time / / 87
Money Laundering and Insider Trading
Chinese Central State- / / 0
Incidents
Owned Enterprises
Partici-
Total number of volunteer participants / 962 420
pant
Incidents resulting in litigation or sig-
nificant administrative penalties due
/ / 0
Total hours of volunteer service Hour 4,614 6,735 1,605 to unfair competition or monopolistic
practices
GRI Index
About This Report GRI Standards Disclosures Location Omission
General Disclosures
Message from the
Message from the Chairman
Chairman
Share
Awards
Environment This report does not involve infor-
mation restatement
This report has not undergone
Society third-party verification
Message from the Chairman
Governance Share
GRI 2:
Human Rights Protection
General Disclosures 2021 2-7 Employees
Data Overview
Appendix
The Company does not collect rele-
vant data during this report period
Data Overview
GRI Index 2-9 Governance structure and composition Governance Structure
ISDS Index
SASB Index
Indicators Reference 2-11 Chair of the highest governance body Governance Structure
for ESG Report of Listed
Chinese Central State-
Owned Enterprises of impacts Risk Control and Compliance
Governance Structure
Risk Control and Compliance
All-Staff Involved Occupational Health and Safety
Management
GRI Standards Disclosures Location Omission
About This Report
Message from the
Chairman 2-17 Collective knowledge of the highest governance body Governance Structure
Not implemented during the report-
ing period
Awards 2-19 Remuneration policies Governance Structure
Environment 2-21 Annual total compensation ratio Data Overview
Message from the Chairman
Society Net Zero Strategy
Climate Response
GRI 2: Pollution Control and Ecosystem Protection
General Disclosures 2021 Resource Utilization and Circular Economy
Governance Human Rights Protection
All-Staff Involved Occupational Health and Safety
Responsible Sourcing
Appendix Protection of Customer Rights
Rural Revitalization and Social Contribution
Data Overview Anti-Commercial Bribery and Anti-Unfair Competi-
tion
GRI Index
ISDS Index Climate Response
Pollution Control and Ecosystem Protection
SASB Index
Resource Utilization and Circular Economy
Indicators Reference Human Rights Protection
for ESG Report of Listed All-Staff Involved Occupational Health and Safety
Chinese Central State- Management
Owned Enterprises Responsible Sourcing
Protection of Customer Rights
Rural Revitalization and Social Contribution
Risk Control and Compliance
Anti-Commercial Bribery and Anti-Unfair Competi-
tion
GRI Standards Disclosures Location Omission
Climate Response
About This Report Pollution Control and Ecosystem Protection
Resource Utilization and Circular Economy
Human Rights Protection
All-Staff Involved Occupational Health and Safety
Message from the Management
Chairman 2-25 Processes to remediate negative impacts Supply Chain Risk Management
Responsible Sourcing
Protection of Customer Rights
Rural Revitalization and Social Contribution
Awards Anti-Commercial Bribery and Anti-Unfair Competi-
tion
Environment Human Rights Protection
Supply Chain Risk Management
Responsible Sourcing
Protection of Customer Rights
Society
Inverstor Relations
GRI 2:
Communications with Stakeholders
General Disclosures 2021 Complaint Mechanism and Whistleblower Protec-
Governance
tion
Pollution Control and Ecosystem Protection
Human Rights Protection
Appendix All-Staff Involved Occupational Health and Safety
Management
Data Overview Protection of Customer Rights
GRI Index Governance Structure
ISDS Index Inverstor Relations
Risk Control and Compliance
SASB Index
Anti-Commercial Bribery and Anti-Unfair Competi-
Indicators Reference tion
for ESG Report of Listed
Chinese Central State- 2-28 Membership associations Promote Industry Development
Owned Enterprises
Human Rights Protection
Data Overview
GRI Standards Disclosures Location Omission
Material topics
About This Report
Material Issues Assessment
Communications with Stakeholders
GRI 3:
Material Topics 2021
Message from the 3-2 List of material topics Material Issues Assessment
Chairman
Economic performance
GRI 3: Risk Control and Compliance
Awards 3-3 Management of material topics
Material Topics 2021 Governance Structure
Communications with Stakeholders
Environment
Society 201-2 Financial implications and other risks and opportunities due to cli-
Sustainable Development Risk Management
mate change
GRI 201:
Economic Performance 2016
Governance 201-3 Defined benefit plan obligations and other retirement plans Data Overview
Appendix 201-4 Financial assistance received from government 2023 Social Impact
Data Overview Market presence
GRI Index GRI 3:
ISDS Index Material Topics 2021
SASB Index
Data Overview
Indicators Reference minimum wage
GRI 202:
for ESG Report of Listed
Market Presence 2016
Chinese Central State-
Owned Enterprises
Indirect economic impact
GRI 3:
Material Topics 2021
GRI Standards Disclosures Location Omission
GRI 203:
About This Report
Indirect Economic Impacts 2016
Message from the Procurement practices
Chairman
GRI 3:
Material Topics 2021
Awards Procurement Practices 2016 trial Resource Advantages
Anti-corruption
Environment GRI 3:
Material Topics 2021
Society 205-1 Operations assessed for risks related to corruption Anti-Corruption and Anti-Commercial Bribery
GRI 205: 205-2 Communication and training about anti-corruption policies and Anti-Corruption and Anti-Commercial Bribery
Governance procedures Data Overview
Anti-corruption 2016
Anti-Commercial Bribery and Anti-Unfair Competi-
Appendix Data Overview
Data Overview Anti-competitive behavior
GRI Index GRI 3:
ISDS Index Material Topics 2021
SASB Index GRI 206: Anti-Commercial Bribery and Anti-Unfair Competi-
tion
Indicators Reference Anti-competitive Behavior 2016 practices
Data Overview
for ESG Report of Listed
Tax
Chinese Central State-
Owned Enterprises
GRI 3:
Material Topics 2021
GRI 207:
Tax 2019
GRI Standards Disclosures Location Omission
About This Report
GRI 207: 207-3 Stakeholder engagement and management of concerns related to
Tax Compliance
Tax 2019 tax
The Company does not collect rele-
Message from the 207-4 Country-by-country reporting Not Covered In This Report
vant data during this report period
Chairman
Materials
GRI 3: Climate Response
Material Topics 2021 Resource Utilization and Circular Economy
Awards
Pollutants Emissions Control
Data Overview
Environment
GRI 301:
Materials 2016 301-2 Recycled input materials used Resource Utilization and Circular Economy
Society
Resource Utilization and Circular Economy
Data Overview
Governance Energy
GRI 3:
Material Topics 2021
Appendix GHG Emissions Control
Data Overview
Data Overview
GRI Index
ISDS Index 2023 Environmental Impact
GRI 302: Energy 2016 302-3 Energy intensity
Data Overview
SASB Index
Energy Conservation and Emissions Reduction
Indicators Reference 302-4 Reduction of energy consumption
Action
for ESG Report of Listed
Chinese Central State- Energy Conservation and Emissions Reduction
Owned Enterprises Action
Water and effluents
GRI 3:
Material Topics 2021
GRI Standards Disclosures Location Omission
About This Report
GRI 303:
Message from the Water and Effluents 2018
Chairman 303-4 Water discharge Data Overview
Awards Biodiversity
GRI 3:
Material Topics 2021
Environment
Not Covered In This Report
ed areas and areas of high biodiversity value outside protected areas
Society 304-2 Significant impacts of activities, products and services on biodiversi-
Biodiversity Protection
GRI 304: ty
Biodiversity 2016
Governance
Not Covered In This Report
habitats in areas affected by operations
Appendix
Emissions
Data Overview GRI 3: Climate Response
GRI Index Material Topics 2021 Pollution Control and Ecosystem Protection
ISDS Index
GHG Emissions Control
SASB Index Data Overview
Indicators Reference
GHG Emissions Control
for ESG Report of Listed 305-2 Energy indirect (Scope 2) GHG emissions
Data Overview
Chinese Central State- GRI 305:
Owned Enterprises 2016GRI 305: Emissions 2016
Data Overview
GRI Standards Disclosures Location Omission
Energy Conservation and Emissions Reduction
Action
About This Report
GRI 305:
Message from the
Chairman Data Overview
emissions
Waste
Awards Material Topics 2021
Environment
Society GRI 306:
Waste 2020
Governance
Appendix
Supplier environmental assessment
Data Overview
GRI 3:
GRI Index 3-3 Management of material topics Responsible Sourcing
Material Topics 2021
ISDS Index
SASB Index 308-1 New suppliers that were screened using environmental criteria Responsible Sourcing
GRI 308:
Indicators Reference Supplier Environmental Assess-
for ESG Report of Listed
ment 2016 308-2 Negative environmental impacts in the supply chain and actions
Chinese Central State- Responsible Sourcing
taken
Owned Enterprises
Employee
GRI 3: Human Rights Protection
GRI Standards Disclosures Location Omission
About This Report GRI 401:
Employment 2016 Smooth Career Development Pathways
temporary or part-time employees
Message from the 401-3 Parental leave Data Overview
Chairman
Labor management relations
GRI 3:
Awards GRI 402:
Labor/Management Relations 402-1 Minimum notice periods regarding operational changes Data Overview
Environment Occupational Health and Safety
GRI 3: All-Staff Involved Occupational Health and Safety
Material Topics 2021 Management
Society
All-Staff Involved Occupational Health and Safety
Management
Governance
All-Staff Involved Occupational Health and Safety
Management
Appendix
All-Staff Involved Occupational Health and Safety
Data Overview Management
GRI Index GRI 403:
ISDS Index Occupational Health and Safety
tional health and safety Management
SASB Index
Indicators Reference All-Staff Involved Occupational Health and Safety
for ESG Report of Listed Management
Chinese Central State-
Owned Enterprises All-Staff Involved Occupational Health and Safety
Management
directly linked by business relationships Management
GRI Standards Disclosures Location Omission
system Management
About This Report
GRI 403: All-Staff Involved Occupational Health and Safety
Occupational Health and Safety 403-9 Work-related injuries Management
Message from the
Chairman All-Staff Involved Occupational Health and Safety
Management
Training and education
Awards 3-3 Management of material topics Smooth Career Development Pathways
Material Topics 2021
Smooth Career Development Pathways
Data Overview
Environment
GRI 404: 404-2 Programs for upgrading employee skills and transition assistance
Smooth Career Development Pathways
Training and Education 2016 programs
Society 404-3 Percentage of employees receiving regular performance and career Smooth Career Development Pathways
development reviews Data Overview
Diversity and equal opportunity
Governance
GRI 3: Human Rights Protection
Material Topics 2021 Smooth Career Development Pathways
Appendix GRI 405: 405-1 Diversity of governance bodies and employees
Human Rights Protection
Data Overview
Diversity and Equal Opportunity
Data Overview
GRI Index
ISDS Index Non-discrimination
SASB Index GRI 3: Human Rights Protection
Material Topics 2021 Smooth Career Development Pathways
Indicators Reference
for ESG Report of Listed
Chinese Central State- GRI 406:
Owned Enterprises Non-discrimination 2016
Freedom of association and collective bargaining
GRI 3: Human Rights Protection
Material Topics 2021 Smooth Career Development Pathways
GRI Standards Disclosures Location Omission
GRI 407:
Freedom of Association and
About This Report and collective bargaining may be at risk Responsible Sourcing
Collective Bargaining 2016
Child labor
Message from the
GRI 3:
Chairman 3-3 Management of material topics Human Rights Protection
Material Topics 2021
GRI 408: Human Rights Protection
Child Labor 2016 labor
Responsible Sourcing
Awards
Forced or compulsory labor
GRI 3: Human Rights Protection
Environment 3-3 Management of material topics
Material Topics 2021 Supply Chain Risk Management
GRI 409: Human Rights Protection
Society 409-1 Operations and suppliers at significant risk for incidents of forced or
Forced or Compulsory Labor Supply Chain Risk Management
compulsory labor
Security practices
Governance
GRI 3:
Material Topics 2021
Appendix GRI 410:
Security Practices 2016
Data Overview
Right of indigenous peoples
GRI Index
GRI 3:
ISDS Index 3-3 Management of material topics Rural Revitalization and Social Contribution
Material Topics 2021
SASB Index GRI 411:
Indicators Reference Rights of Indigenous Peoples 2016
for ESG Report of Listed Local communities
Chinese Central State-
Owned Enterprises GRI 3:
Material Topics 2021
GRI 413: 413-1 Operations with local community engagement, impact assessments,
Rural Revitalization and Social Contribution
Local Communities 2016 and development programs
GRI Standards Disclosures Location Omission
Not Covered In This Report
local communities related matters
About This Report
Supplier social assessment
GRI 3: Supply Chain Risk Management
Material Topics 2021 Responsible Sourcing
Message from the
Chairman Supply Chain Risk Management
GRI 414: Data Overview
Supplier Social Assessment 2016
Supply Chain Risk Management
Responsible Sourcing
Awards
Public policy
GRI 3: The company is not involved in
Material Topics 2021 related matters
Environment
GRI 415: The company is not involved in
Public Policy 2016 related matters
Customer health and safety
Society
GRI 3:
Material Topics 2021
Governance 416-1 Assessment of the health and safety impacts of product and service
Protection of Customer Rights
GRI 416: categories
Customer Health and Safety 2016 416-2 Incidents of non-compliance concerning the health and safety im- Protection of Customer Rights
pacts of products and services Data Overview
Appendix
Marketing and labeling
Data Overview GRI 3:
GRI Index Material Topics 2021
ISDS Index 417-1 Requirements for product and service information and labeling Responsible Marketing
SASB Index GRI 417: 417-2 Incidents of non-compliance concerning product and service infor-
Responsible Marketing
Marketing and Labeling 2016 mation and labeling
Indicators Reference
for ESG Report of Listed 417-3 Incidents of non-compliance concerning marketing communications Responsible Marketing
Chinese Central State-
Owned Enterprises Customer privacy
GRI 3:
Material Topics 2021
GRI 418: 418-1 Substant i ated complaints concerning breaches of customer privacy Protection of Customer Rights
Customer Privacy 2016 and losses of customer data Data Overview
ISDS Index
About This Report IFRS S1
Core Elements Disclosure Recommendations Disclosure Placement
Message from the
a) The governance body(s) (which can include aboard, committee or equivalent body charged with governance) or individual(s) Governance Structure
Chairman responsible for oversight of sustainability-related risks and opportunities. Risk Control and Compliance
Governance
b) Management's role in the governance processes, controls and procedures used to monitor, manage and oversee sustainabili-
Risk Control and Compliance
Awards
a) The sustainability-related risks and opportunities that could reasonably be expected to affect the entity's prospects within the
Sustainable Development Risk Management
time horizons—short, medium or long term.
b) The current and anticipated effects of sustainability-related risks and opportunities on the entity's business model and value
Environment chain, and where in the entity's business model and value chain sustainability-related risks and opportunities are concentrat- Sustainable Development Risk Management
ed
c) How the entity has responded to, and plans to respond to, sustainability-related risks and opportunities in its strategy and
Society decision-making, and the progress against plans the entity has disclosed in previous reporting periods, including quantitative Sustainable Development Risk Management
and qualitative information, and trade-offs between sustainability-related risks and opportunities that the entity considered.
Strategy
Governance d) The quantitative and qualitative effects of sustainability-related risks and opportunities on the entity's financial position, fi-
nancial performance and cash flows for the reporting period, and the sustainability-related risks and opportunities identified
for which there is a significant risk of a material adjustment within the next annual reporting period to the carrying amounts
Not covered in the report
of assets and liabilities reported in the related financial statements, and how the entity expects its financial position, financial
Appendix performance and cash flows to change over the short, medium and long term, given its strategy to manage sustainability-re-
lated risks and opportunities.
Data Overview
GRI Index e) The resilience of the entity's strategy and its business model to those sustainability-related risks Sustainable Development Risk Management
ISDS Index a) The processes and related policies the entity uses to identify, assess, prioritize and monitor sustainability-related risks, in-
SASB Index cluding information about: the inputs and parameters the entity uses，whether and how the entity uses scenario analysis to Sustainable Development Risk Management
inform its identification of sustainability-related risks, whether and how the entity prioritizes sustainability-related risks, how Risk Control and Compliance
Indicators Reference the entity assesses the nature, likelihood and magnitude of the effects of those risks.
for ESG Report of Listed
Chinese Central State-
Risk Management b) The processes the entity uses to identify, assess, prioritize and monitor sustainability-related opportunities, including: wheth-
Owned Enterprises Not covered in the report
er and how the entity uses scenario analysis to inform its identification of sustainability-related opportunities.
c) The extent to which, and how, the processes the entity uses to identify, assess, prioritize and monitor sustainability-related Sustainable Development Risk Management
risks and opportunities are integrated into and inform the entity's overall risk management process. Risk Control and Compliance
Core Elements Disclosure Recommendations Disclosure Placement
Environment
a) Metrics required by an applicable IFRS Sustainability Disclosure Standard. Society
About This Report Governance
Environment
Message from the Metrics and targets
b) Metrics the entity uses to measure and monitor sustainability-related risks or opportunities and its performance in relation to
Society
that sustainability-related risk or opportunity.
Chairman Governance
Environment
Awards Governance
Environment
IFRS S2
Society Core Elements Disclosure Recommendations Disclosure Placement
a) The governance body(s) (which can include a board, committee or equivalent body charged with governance) or individual(s) Governance Structure
Governance responsible for oversight of climate-related risks and opportunities. Risk Control and Compliance
Governance
Appendix b) Management's role in the governance processes, controls and procedures used to monitor, manage and oversee climate-re-
Risk Control and Compliance
lated risks and opportunities.
Data Overview
GRI Index
a) The climate-related risks and opportunities that could reasonably be expected to affect the entity's prospects within time
ISDS Index horizons—short, medium or long term, whether the entity considers the risk to be a climate-related physical risk or cli- Sustainable Development Risk Management
mate-related transition risk.
SASB Index
Indicators Reference
for ESG Report of Listed b) The current and anticipated effects of climate-related risks and opportunities on the entity's business model and value chain,
Chinese Central State- Strategy Sustainable Development Risk Management
and where in the entity's business model and value chain climate-related risks and opportunities are concentrated.
Owned Enterprises
c) Information about how the entity has responded to, and plans to respond to, climate-related risks and opportunities in its
strategy and decision-making, including how the entity sets targets, how the entity is resourcing and quantitative and qualita- Sustainable Development Risk Management
tive information about the disclosed progress of plans.
Core Elements Disclosure Recommendations Disclosure Placement
d) The quantitative and qualitative effects of those climate-related risks and opportunities on the entity's financial position,
financial performance and cash flows for the reporting period, the climate-related risks and opportunities identified in
About This Report paragraph 16(a) for which there is a significant risk of a material adjustment within the next annual reporting period to the
Not covered in the report
carrying amounts of assets and liabilities reported in the related financial statements, and how the entity expects its financial
position, financial performance and cash flows to change over the short, medium and long term, given its strategy to manage
climate-related risks and opportunities.
Message from the Strategy
Chairman
e) The entity's assessment of its climate resilience, including the entity's assessment for its strategy and business model, the
significant areas of uncertainty considered in the entity's assessment of its climate resilience and the entity's capacity to
adjust or adapt its strategy and business model to climate change over the short, medium and long term. The entity shall
Sustainable Development Risk Management
analysis was carried out, including information about the inputs the entity used, the key assumptions the entity made in the
Awards analysis and the reporting period in which the climate-related scenario analysis was carried out.
Environment a) The processes and related policies the entity uses to identify, assess, prioritize and monitor climate-related risks, including
information about: the inputs and parameters the entity uses, whether and how the entity uses climate-related scenario anal- Sustainable Development Risk Management
ysis to inform its identification of climate-related risks, whether and how the entity prioritizes climate-related risks, how the Risk Control and Compliance
entity assesses the nature, likelihood and magnitude of the effects of those risks.
Society
Risk Management
b) The processes the entity uses to identify, assess, prioritize and monitor climate-related opportunities, including information
Governance about whether and how the entity uses climate-related scenario analysis to inform its identification of climate-related oppor- Not covered in the report
tunities.
Appendix
c) The extent to which, and how, the processes for identifying, assessing, prioritizing and monitoring climate-related risks and Sustainable Development Risk Management
opportunities are integrated into and inform the entity's overall risk management process. Risk Control and Compliance
Data Overview
GRI Index
a) The cross-industry metric categories of greenhouse gas emissions, internal carbon prices, the percentage of executive man-
ISDS Index Sustainable Development Risk Management
agement remuneration recognized in the current period that is linked to climate-related considerations, capital deployment
GHG Emissions Control
towards climate-related risks and opportunities, the amount and percentage of assets or business activities vulnerable to
SASB Index Governance Structure
climate-related risks and opportunities.
Indicators Reference
for ESG Report of Listed
b) Industry-based metrics that are associated with one or more particular business models, activities or other common features
Chinese Central State- Metrics and targets GHG Emissions Control
that characterize participation in an industry.
Owned Enterprises
Environment
c) The quantitative and qualitative climate-related targets the entity has set or it is required to meet by law or regulation, prog-
Society
ress towards reaching the target, information about its performance, and each greenhouse gas emissions target.
Governance
SASB Index
About This Report SASB Topics Accounting Metrics Location SASB Topics Accounting Metrics Location
CG-MR-330a.1：
CG-MR-130a.1： Percentage of gender and racial/ethnic
Message from the Energy Management in (1)Total energy consumed GHG Emissions Control group representation for
Human Rights Protection
Chairman Data Overview
Retail & Distribution (2)Percentage grid electricity Data Overview (1) Management
(3)Percentage renewable energy (2) All other employees
Workforce Diversity &
Inclusion
Awards Amount of legal and regulatory fines and
CG-MR-230a.1： Human Rights Protection
settlements associated with employment
Discussion of management approach to Protection of Customer
discrimination
identifying and addressing data security Rights
risks
Environment
CG-MR-410a.1：
Data Security
Revenue from products third-party certified
Not covered in the report
CG-MR-230a.2： to environmental and/or social sustainability
Society (1) Number of data security breaches standards
Protection of Customer
(2) Percentage involving customers'person-
Rights
ally identifiable information (PII)
(3) Number of customers affected CG-MR-410a.2：
Governance Description of processes to assess and man- Pollution Control and
age risks and/or hazards associated with Ecosystem Protection
chemicals in products
CG-MR-310a.1：
Appendix (1) Average hourly wage
Not covered in the report
(2) Percentage of in-store employees earning
minimum wage, by region
Data Overview Product sourcing, Pack- CG-MR-410a.3： Pollutants Emissions
Description of strategies to reduce the envi-
aging, and Marketing ronmental impact of packaging Control
GRI Index
ISDS Index CG-MR-310a.2：
Employee turnover rate for in-store employ-
SASB Index Fair Labor Practices ees Data Overview
CG-MR-000.A：
Indicators Reference (1) Voluntary
(1)Number of retail locations Not applicable
for ESG Report of Listed (2) Involuntary
(2)Number of distribution centers
Chinese Central State-
Owned Enterprises
Amount of legal and regulatory fines and CG-MR-000.B：
settlements associated with labor law viola- Human Rights Protection Total area of (m?):
Not applicable
tions (1)Retail space
(2)Distribution centers
Indicators Reference for ESG Report of Listed Chinese Central
About This Report
State-Owned Enterprises
Environment
Message from the
Primary Indicators Secondary Indicators Tert i ary Indicators Location
Chairman
E.1.1.1 Fresh-water consumption Data Overview
E.1.1.2 Circulating water consumption Not Covered In This Report
E.1.1 Water Resources E.1.1.3 The proportion of circulating water consumption Not Covered In This Report
Awards E.1.1.4 Water resource consumption intensity
Data Overview
E.1.2.1 Consumption of non-renewable materials Not Covered In This Report
E.1.2 Materials E.1.2.2 Consumption of toxic and hazardous materials Not Covered In This Report
Environment E.1.2.3 Material consumption intensity Not Covered In This Report
E.1 GHG Emissions Control
E.1.3.1 Fossil energy consumption
resource Consump- Data Overview
tion GHG Emissions Control
Society E.1.3.2 Non-fossil energy consumption
Data Overview
E.1.3 Energy GHG Emissions Control
E.1.3.3 The proportion of non-fossil energy consumption
Data Overview
Governance GHG Emissions Control
E.1.3.4 The total energy consumption
Data Overview
E.1.3.5 The energy consumption intensity 2023 Environmental Impact
E.1.4.1 The amount of packaging materials used Data Overview
Appendix E.1.4 Packaging materials
E.1.4.2 Light-weighting and reduction of packaging materials Data Overview
Data Overview E.2.1.1 The compliance status of wastewater discharge Pollutants Emissions Control
E.2.1.2 Wastewater management and emission reduction measures Pollutants Emissions Control
GRI Index
E.2.1 Wastewater E.2.1.3 Volume of wastewater discharge Data Overview
ISDS Index E.2.1.4 The discharge volume of wastewater pollutants Data Overview
SASB Index E.2.1.5 Concentration of pollutants discharged in wastewater Data Overview
E.2.2.1 Compliance status of exhaust gas emissions Pollutants Emissions Control
Indicators Reference E.2
for ESG Report of Listed E.2.2 Exhaust Air E.2.2.2 Volume of air pollutants emitted Data Overview
Pollution Control
Chinese Central State- E.2.2.3 Concentration of air pollutants emitted Data Overview
Owned Enterprises E.2.3.1 Compliance with legal regulations on solid waste disposal Pollutants Emissions Control
E.2.3.2 Management of general industrial solid waste Pollutants Emissions Control
E.2.3 Solid Waste E.2.3.3 Disposal volume of general industrial solid waste Data Overview
E.2.3.4 Management of hazardous waste Pollutants Emissions Control
E.2.3.5 Volume of hazardous waste disposed Data Overview
Primary Indicators Secondary Indicators Tert i ary Indicators Location
E.3.1.1 Sources and types of GHG GHG Emissions Control
Net Zero Strategy
GHG Emissions Control
About This Report E.3.1.2 Management of GHG Emissions
Energy Conservation and Emissions Reduction Action
Pollutants Emissions Control
GHG Emissions Control
E.3.1.3 Scope 1 emissions
Message from the Data Overview
E.3.1 GHG Emissions
GHG Emissions Control
Chairman E.3.1.4 Scope 2 emissions
Data Overview
E.3.1.5 Scope 3 emissions Not Covered In This Report
Awards E.3.1.6 GHG emission intensity GHG Emissions Control
E.3 Data Overview
Climate change Net Zero Strategy
GHG Emissions Control
E.3.2.1 Management of GHG emission reduction
Environment E.3.2 Emission Reduction Man- Energy Conservation and Emissions Reduction Action
agement Pollutants Emissions Control
GHG Emissions Control
E.3.2.2 GHG emission reduction
Data Overview
Society
E.3.3.1 Participation in the carbon emissions trading market Not Covered In This Report
E.3.3 Environmental Rights Trad- E.3.3.2 Participation in the energy rights, water rights, and pollution rights trading
Not Covered In This Report
ing markets
Governance
E.3.3.3 Participation in green electricity trading Not Covered In This Report
E.3.4 Climate-related Risk Man-
E.3.4.1 Climate-related Risk Management Sustainable Development Risk Management
Appendix agement
E.4 E.4.1 Impact of production, ser-
Biodiversity Protection
Data Overview vices, and products on biodiver- E.4.1.1 Impacts of production, services, and products on biodiversity
Biodiversity "Forest-Pulp-Paper" Industry
sity
GRI Index
E.5.1 Setting Low-Carbon De-
ISDS Index velopment Goals and Strategic E.5.1.1 Setting low-carbon development goals and strategic measures Net Zero Strategy
Measures
SASB Index
E.5.2.1 Water resource management Water Resources Conservation
Indicators Reference E.5
for ESG Report of Listed "Forest-Pulp-Paper" Industry
Measures for resource E.5.2 Resource management E.5.2.2 Material utilization management
Chinese Central State- Trade of Recycled Steel Materials
measures
Owned Enterprises and environmental
GHG Emissions Control
management systems E.5.2.3 Energy utilization and energy efficiency management
Energy Conservation and Emissions Reduction Action
E.5.3 Energy-saving and carbon
reduction monitoring, statisti- E.5.3.1 Energy-saving and carbon reduction monitoring, statistical reporting, and GHG Emissions Control
cal reporting, and assessment assessment system Energy Conservation and Emissions Reduction Action
system
Primary Indicators Secondary Indicators Tert i ary Indicators Location
E.5.4.1 Clean production Pollutants Emissions Control
"Forest-Pulp-Paper" Industry
About This Report E.5.4.2 Green technology upgrading and recycling
Trade of Recycled Steel Materials
E.5.4.3 Green building renovation Not Covered In This Report
Message from the E.5.4 Green environmental ac- Energy Conservation and Emissions Reduction Action
Chairman tions and measures E.5.4.4 Green office and operations
Pollutants Emissions Control
"Forest-Pulp-Paper" Industry
E.5 Trade of Recycled Steel Materials
Measures for resource
"Forest-Pulp-Paper" Industry
Awards management systems Responsible Sourcing
E.5.4.6 Public activities for environmental protection Pollutants Emissions Control
E.5.5.1 Environmental management system certification Not Covered In This Report
Environment E.5.5 Green Low-Carbon Certifi-
E.5.5.2 Green and Low-Carbon Enterprise Certification Not Covered In This Report
cation
E.5.5.3 Green and low-carbon product and service certification Energy Conservation and Emissions Reduction Action
Society All-Staff Involved Occupational Health and Safety Manage-
E.5.6 Legal compliance in envi- E.5.6.1 Emergency response plan for environmental incidents
ment
ronmental matters
E.5.6.2 Environmental violations 2023 Environmental Impact
Governance
Society
Appendix Primary Indicators Secondary Indicators Tert i ary Indicators Location
Data Overview S1.1.1 Corporate recruitment policy and implementation Human Rights Protection
S1.1 Employee recruitment and Human Rights Protection
GRI Index S1.1.2 Employee structure
employment Data Overview
ISDS Index S1.1.3 Avoiding child labor and forced labor Human Rights Protection
SASB Index S1.2.1 Compensation philosophy and policy Smooth Career Development Pathways
Human Rights Protection
Indicators Reference S1 Smooth Career Development Pathways
for ESG Report of Listed S1.2.2 Working hours and rest and leave
Employee rights S1.2 Employee compensation All-Staff Involved Occupational Health and Safety Manage-
Chinese Central State-
and benefits ment
Owned Enterprises
S1.2.3 Compensation and benefits guarantee Smooth Career Development Pathways
Human Rights Protection
S1.2.4 Employee democratic management
Data Overview
All-Staff Involved Occupational Health and Safety Manage-
S1.3 Employee health and safety S1.3.1 Employee occupational health and safety management
ment
Primary Indicators Secondary Indicators Tert i ary Indicators Location
All-Staff Involved Occupational Health and Safety Manage-
S1.3.2 Employee safety risk prevention
ment
All-Staff Involved Occupational Health and Safety Manage-
About This Report S1.3.3 Response to safety incidents and work-related injuries
S1.3 Employee health and safety ment
Human Rights Protection
S1.3.4 Employee care and assistance All-Staff Involved Occupational Health and Safety Manage-
ment
Message from the
Chairman S1 S1.4.1 Employee motivation and promotion policy Smooth Career Development Pathways
Employee rights S1.4 Employee development
S1.4.2 Employee education and training Smooth Career Development Pathways
and training
Awards
Human Rights Protection
S1.5.1 Employee satisfaction survey
Data Overview
S1.5 Employee satisfaction S1.5.2 Labor disputes Human Rights Protection
Environment S1.5.3 Employee turnover Data Overview
Innovation-driven Development, Suppliers and Clients
S2.1.1 Production standard management policies and measures
Smooth Career Development Pathways
Society S2.1.2 Quality management Protection of Customer Rights
S2.1 Product safety and quality
S2.1.3 Product recall and withdrawal Not Covered In This Report
S2.1.4 Negative incidents related to products or services Protection of Customer Rights
Governance
S2.2.1 Customer satisfaction Protection of Customer Rights
S2
Protection of Customer Rights
Product and service S2.2 Customer service and rights S2.2.2 Customer complaints and handling Data Overview
Appendix management Protection of Customer Rights
S2.2.3 Customer information and privacy protection
Data Overview
Data Overview S2.3.1 R&D and innovation management system Smarter and Advanced Supply Chain Services
GRI Index S2.3.2 R&D investment Smarter and Advanced Supply Chain Services
S2.3 Innovation development
ISDS Index S2.3.3 Innovation achievements Smarter and Advanced Supply Chain Services
SASB Index S2.3.4 Intellectual property protection Smarter and Advanced Supply Chain Services
Indicators Reference S3.1.1 Supplier selection and management Responsible Sourcing
S3.1 Supplier Management
for ESG Report of Listed S3.1.2 Number and distribution of suppliers Data Overview
Chinese Central State- S3
Supply Chain Risk Management
Owned Enterprises Supply Chain Safety S3.2.1 Supply chain management policies and measures
Responsible Sourcing
and Management S3.2 Supply Chain Management
S3.2.2 Supply chain security assurance and emergency plan Supply Chain Risk Management
S3.2.3 Major risks and impacts (supply chain) Supply Chain Risk Management
S4
S4.1 Tax payment situation S4.1.1 Tax payment 2023 Social Impact
Social contribution
Primary Indicators Secondary Indicators Tert i ary Indicators Location
S4.2.1 Policies and measures for participating in local community construction Rural Revitalization and Social Contribution
S4.2 Community co-building
S4.2.2 Contribution and impact on the local community Rural Revitalization and Social Contribution
About This Report
Promote Health and Education, Support Urban Sustainable
S4.3.1 Policies and measures for participating in social welfare activities
Development
Promote Health and Education, Support Urban Sustainable
Message from the S4.3 Social welfare activities S4.3.2 Investment and effectiveness in participating in social welfare activities Development
Chairman Data Overview
S4 S4.3.3 Construction of an accessible environment Not Covered In This Report
Social contribution Energy Conservation and Emissions Reduction Action
S4.4.1 Industrial transformation
Awards Support Rural Revitalization Strategies with Industrial Re-
source Advantages
Support Rural Revitalization Strategies with Industrial Re-
S4.4 National strategy response S4.4.2 Rural revitalization and regional collaborative development
source Advantages
Environment
Promote Health and Education, Support Urban Sustainable
S4.4.3 Belt and Road init i ative and overseas responsibility fulfillment
Development
Innovation-driven Development, Suppliers and Clients
S4.4.4 Industry characteristics and other social responsibility fulfillment
Society Rural Revitalization and Social Contribution
Governance Governance
Primary Indicators Secondary Indicators Tert i ary Indicators Location
Appendix
G1.1.1 Governance strategy formulation Governance Structure
Data Overview G1.1.2 Governance strategy supervision process Governance Structure
G1.1 Governance strategy and
GRI Index processes G1.1.3 Governance strategy approval and review process Governance Structure
ISDS Index G1.1.4 Leadership in Party-building The Party Development Endeavors
SASB Index G1 Governance Structure
G1.2.1 Ownership responsibilities
Risk Control and Compliance
Indicators Reference Governance strategy
G1.2 Organizational structure G1.2.2 Board of directors, board of supervisors, and management structure and
for ESG Report of Listed and organizational Governance Structure
and functions functions
Chinese Central State- structure G1.2.3 Appointment procedures and composition of the board of directors, board
Owned Enterprises Governance Structure
of supervisors, and management
G1.3.1 Compensation plan for directors and supervisors Governance Structure
G1.3.2 Transparency of the board's compensation Not Covered In This Report
G1.3 Compensation manage-
ment Governance Structure
G1.3.3 Reasonableness of management compensation All-Staff Involved Occupational Health and Safety Manage-
ment
Primary Indicators Secondary Indicators Tert i ary Indicators Location
G2.1.1 Internal audit Risk Control and Compliance
G2.1 Internal control Risk Control and Compliance
G2.1.2 Internal control structure, mechanisms, and procedures
Complaint Mechanism and Whistleblower Protection
About This Report Anti-Corruption and Anti-Commercial Bribery
G2 G2.2.1 Integrity construction systems and standards
G2.2 Integrity construction Complaint Mechanism and Whistleblower Protection
Standardized gover-
G2.2.2 Effectiveness of integrity construction measures Anti-Corruption and Anti-Commercial Bribery
nance
Message from the Anti-Monopoly and Anti-Unfair Competition
G2.3.1 Fair competition system and standards
Complaint Mechanism and Whistleblower Protection
Chairman G2.3 Fair competition
G2.3.2 Effectiveness of fair competition measures Anti-Monopoly and Anti-Unfair Competition
G3.1.1 Investor relations management strategy Investor Relations
Awards G3.1 Investor relations manage-
G3.1.2 Investor communication Investor Relations
ment
G3.1.3 Construction of investor relations management department Investor Relations
G3
Environment G3.2.1 Shareholders' (general) meeting Governance Structure
Investor relations
management and Investor Relations
G3.2 Shareholder rights G3.2.2 Shareholder communication
shareholder rights Communications with Stakeholders
Society Governance Structure
G3.2.3 Shareholder's right to know and participate in decision-making
Investor Relations
G3.3.1 Credit situation Not Covered In This Report
Governance G3.3 Creditor rights
G3.3.2 Bond market performance Not Covered In This Report
G4.1.1 Financial information disclosure Investor Relations
G4.1 Information disclosure
Appendix G4
system
Information disclo- G4.1.2 Non-financial information disclosure Investor Relations
Data Overview sure transparency G4.2 Quality of information dis-
G4.2.1 Regular supervision, audit, and evaluation of all disclosed information Covered in the 2023 Annual Report
GRI Index closure
Risk Control and Compliance
ISDS Index G5.1.1 Compliant operation system
Anti-Corruption and Anti-Commercial Bribery
SASB Index Risk Control and Compliance
G5.1 Compliant operation G5.1.2 Construction of the compliance system
Anti-Corruption and Anti-Commercial Bribery
Indicators Reference Risk Control and Compliance
for ESG Report of Listed G5.1.3 Specific compliance review procedures
G5 Anti-Corruption and Anti-Commercial Bribery
Chinese Central State- Compliant operation Risk Control and Compliance
Owned Enterprises G5.2.1 Risk identification and early warning
and risk management Sustainable Development Risk Management
Risk Control and Compliance
G5.2.2 Risk control and tracking
G5.2 Risk management Sustainable Development Risk Management
Risk Control and Compliance
G5.2.3 Risk reporting and management Anti-Commercial Bribery and Anti-Unfair Competition
Data Overview
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