厦门国贸：Xiamen ITG Group2023Sustainability Report

About This ReportMessage from theChairman2023 Honors andAwardsEnvironmentSocietyGovernanceAppendix

Contents

Climate Response

Pollution Control and Ecosystem Protection

Resource Utilization and Circular Economy

Sustainability-Related Governance Mechanisms

Anti-Commercial Bribery and Anti-Unfair Competition

Employees

Innovation-driven Development, Suppliers and Clients

Rural Revitalization and Social Contribution

About This Report

Message from the Chairman

2023 Honors and Awards

Data Overview

GRI Index

ISDS Index

SASB Index

Indicators Reference for ESG Report of Listed Chinese

Central State-Owned Enterprises

Environment

Governance

Appendix

Society

About This Report

We prepare this report in accordance with the "GlobalReporting Initiative Standards" (GRI Standards), and "Sus-tainability Accounting Standards Board Standards" (SASBStandards). The report also takes into account the disclosurerequirements of the "Guidelines No. 1 of Shanghai StockExchange for Self-Regulation of Listed Companies - Stan-dardized Operation", "Guidelines No. 14 of Shanghai StockExchange for Self-Regulation of Listed Companies-Sustain-ability Report (Trial)", SASAC Research Center's "IndicatorsReference Systems for ESG Reports of Listed Chinese CentralState-Owned Enterprises", IFRS Sustainability DisclosureStandards(ISDS) developed by International SustainabilityStandards Board(ISSB), and the United Nations SustainableDevelopment Goals (SDGs).

The reporting period is between January 1, 2023, and De-cember 31, 2023 and some parts of the report are beyond theaforementioned scope. Unless otherwise speci?ed, the envi-ronmental, social, and economic data disclosed in this reportincludes all enterprises within the scope of the consolidatedstatement of Xiamen ITG Group Corp., Ltd.

We released this report in electronic format in both Simpli?edChinese and English. In case of any inconsistencies betweenthe Chinese and English versions, the Chinese version shallprevail. The electronic version of the report is available onour o?cial website (www.itg.com.cn) and the Shanghai StockExchange website (www.sse.com.cn). If you have any com-ments or suggestions on our economic, environmental, andsocial performance, please contact [e-mail].

Reference GuidelinesReporting ScopeReport Availability and Feedback

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This is the 2023 Sustainability Report ("this report") released by XiamenITG Group Corp., Ltd. (referred to as " Xiamen ITG Group" or "We").This report aims to provide stakeholders with an overview of 2023Sustainability performance and initiatives in Xiamen ITG Group.

AbbreviationFull NameXiamen ITG GroupXiamen ITG Group Corp., Ltd.IPCCIntergovernmental Panel on Climate ChangeIEAInternational Energy AgencyISOInternational Organization for StandardizationXiamen Keerun OCSMARTERXiamen Keerun OCSMARTER Technology Co., Ltd.Keerun Tire (Rizhao)Keerun Tire (Rizhao) Co., Ltd.Ningbo Zhencheng MiningNingbo Zhencheng Mining Co., Ltd.Hainan ITG LogisticsHainan ITG Logistics Co., Ltd.Keerun Tire (Dezhou)Keerun Tire (Dezhou) Co., Ltd.ITG Health TechnologyXiamen ITG Health Technology Co., Ltd.Hubei ITG Supply ChainHubei ITG Supply Chain Group Co., Ltd.ITG PetrochemicalITG Petrochemical Co., Ltd.

AbbreviationFull NameITG PaperXiamen ITG Paper Co.,LTD.Keerun Medical TechnologyKeerun Medical Technology (Xiamen) Co., Ltd.ITG Baokang Medicine Tech-nology

Xiamen ITG Baokang MedicineTechnology Co., Ltd.Xiamen ITG New Energy Sup-ply Chain

Xiamen ITG (Shanghai) New Energy Development Co, LtdITG Elderly CareXiamen ITG Health Care Technology Co.,Ltd.ITG Agricultural ProductsXiamen ITG Agricultural Products Co.,Ltd.ITG Agriculture and ForestryXiamen ITG Agriculture and Forestry Co., Ltd.ITG Tidak LogisticsXiamen ITG Tidak Logistics Co., Ltd.Heilongjiang Runda XiangyunLogistics

Heilongjiang Runda Xiangyun Logistics Co., Ltd.Hainan ITGHainan ITG Co., Ltd.ITG Resources(Singapore)ITG Resources(Singapore) Pte.Ltd.Xiamen ITG ShippingXiamen ITG Shipping Co., Ltd.

Explanatory Note

* The abbreviations above are arranged in the order of appearance.

About This Report

Message from theChairman2023 Honors andAwardsEnvironmentSocietyGovernanceAppendix

Message from the Chairman

We have always been exploring possibilities to create value for customers, employees, shareholders and investors, and society.Since 2005, we have incorporated "value" and "growth" into our corporate philosophy. Today, amidst an increasingly uncertainexternal environment and the reshaping of the global value chain, we, guided by our brand mission of "Integrate Industry toConnect. 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 theconcept of sustainable development can we maximize social value. Value creation requires support from a sound corporategovernance system and a conscious sense of responsibility, as well as guidance from a stronger environmental awareness anda 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

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services of ITG Solutions. Committed to creating more valuefor customers, we advanced the upgrade of the supply chainbusiness model over the past year, enhancing service, indus-trial investment, and operational capabilities. We establisheda "Three-chain Integration" new development model, withfull-process supply chain services as the core, internationalindustrial chain operation as the driving force, and e?cientvalue chain collaboration as the guarantee, contributing to thesecurity and stability of the global industrial supply chain.In 2023, we not only practiced the concept of green devel-opment but also contributed to the low-carbonization andintelligence of the industrial chain. We formulated goals forcarbon peak and net zero, exploring the path to carbon peakthrough ?ve aspects: designing sustainable products, facilitat-ing supply chain decarbonization, utilizing renewable energy,developing sustainable industries, and executing sustainableactions. We actively promoted the development of the circulareconomy, focused on new energy supply chain businessessuch as the "battery industry chain," "photovoltaic wind powerindustry chain," "new materials and new products industrychain," and the "hydrogen energy, energy storage, and wastebattery recycling industry chain," and optimized the industrialand energy structures. We iterated on multiple digital projectsto enhance the digital intelligence operation capabilities ofthe supply chain. We emphasized on upgrading the "medicaldevice" business in the ?eld of health technology, steadilyexpanding coverage in elderly care services, and continuouslyexploring normalization models for the transaction value ofhealth and medical data.In 2023, we not only expanded our presence internationally

but also established ourselves ?rmly in markets along theBelt and Road Initiative. Since the establishment of PointerInvestment (Hong Kong) Limited in 1984, we have set up over20 overseas branches, with operations covering more than 170countries and regions, thus building comprehensive interna-tional industrial service capabilities. In the past year, we haveexpanded both the depth and breadth of our global opera-tions, responded to the demands of local industry partners,and implemented multiple projects in Southeast Asia, CentralAsia, the Middle East, West Africa, South America, and otherregions. Additionally, we have been serving national regionalstrategies by launching projects in the silicon and phosphoruschemical industries in key areas, including the central andwestern regions of China. This has resulted in win-win collab-orations and value enhancement, integrating into the newdevelopment paradigm of dual circulation, both domesticallyand internationally.In 2023, we went beyond attracting and nurturing talent togrow with our employees. Guided by our core values of "Lead-ership, Responsibility, Hardworking, Partnership," our 6900+employees around the world are working with determinationand pioneering spirit to solve problems and provide servicesto our partners. It is also them who are driving the transforma-tion and development of our company continuously. Over thepast year, we optimized our organizational structure, iteratedon talent development systems, designed di?erential compen-sation and performance schemes, and built an employee caresystem, ensuring that "those who strive will always gain." Weconducted a series of "Pioneering Culture" activities, enrichedcultural life, promoted the construction of a healthy enterprise,

and created a safe, healthy, fair, just, harmonious, and inclu-sive working environment for our employees.Our sustainability report is an annual answer sheet from over6900 employees, conveying the values, responsibilities, andfuture plans behind our company's performance. This answersheet will extend beyond just this year, and become our dailyguide for responsibilities, embodying Xiamen ITG Group'scommitment to numerous stakeholders and the future of theindustry.We deeply understand that actions speak louder than words.As responsible corporate citizens, we will uphold a long-termvision and unwavering resilience to do what is right, what isdi?cult, and what requires time to accumulate. Furthermore,we will continue to ful?ll our commitment to working hand inhand with industry partners, understand their needs, connectindustries, and jointly create more enduring and far-reachingvalue.

Gao ShaoyongThe chairman of Xiamen ITG Group

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2023 Honors and Awards

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EnvironmentSocietyGovernanceAppendix

1,214th26thon Forbes Global 2,000

in the "China Listed Companies Brand Value

Vitality Ranking"by National Business Daily

on Fortune China 500 (Listed Companies)Ranked

60thRankedBrand value reached 40.9 billion RMB

Ranked

Awarded"2023 Learn from Lei Feng Model Site"

by Xiamen City

Awarded"Supply and Demand Matching Employmentand Education Project" Excellent Case

by the Ministry of Education

"ITG ATLAS" was awarded the "OutstandingCases of Commercial TechnologyInnovative Application for the Year 2022"

by the Ministry of Commerce

Selected as"Outstanding Case for ESG Practice of

Listed Companies in 2023"

by CAPCO

Awarded"Best Board of Directors"in the "Gold Prize of Round Table"of Chinese

Listed Company

*"ITG ATLAS" Award Explanation: The award was announced in 2022 and awarded in 2023

Awarded"5A-level Supply Chain Service Enterprise"by China Federation of Logistics and Purchasing

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Awarded"Best Board of Directors of Listed

Companies"in the 13th Prestigious Charts of Chinese

Listed Companiesby the National Business Daily

Selected as"Best Practice Case of Board of Directors of

Listed Companies" in 2023

by CAPCO"ITG IRSP" Grain Silo Solution wasawarded "Excellent Case of Logisticsand Supply Chain Digitization for 2023"

by China Federation of Logistics and

Purchasing

Awarded"Leading Enterprise in Logistics and SupplyChain Digital Transformation for 2023"by China Federation of Logistics and

Purchasing

Rank 1st in both the Building Steel and Metal

Sheet Categorieson the "Top 100 Chinese Steel Trading

Enterprises" listissued by the China Steel DevelopmentResearch Institute and Mysteel

Ranked80thin the "Top 100 Chinese Enterprises for Social

Responsibility 2022"issued by the Southern Weekly

Awarded"Xiamen Talent Scout Enterprise"by the Xiamen Municipal HumanResources and Social Security Bureau

* Southern Weekly Award Explanation: Results announced in 2023

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Awared"2023 Long-term Trusted Service

Provider for Iron Ore"

and"2023 China's Excellent Coal and Coke

Supplier"by MySteel

Awarded"Top 10 Talent Work BenchmarkEnterprises in Xiamen"by Xiamen High-level Talent Development

Center

Awarded"China Outstanding Employer Award"

from 51job

Awarded"Best Employer in 2023"

by CHIRC

Awarded"2023 Mysteel Iron Ore Long-Term SpotPrice Index Integrity Pricing Unit"

and"Integrity Pricing Unit for the 2022-2023Mysteel Coal and Coke Price Index"

by Mysteel

Awarded"Outstanding Employer Award"jointly presented by Aimsen, Best Roi, and TC

Consulting

"ITG Carbon Chain" was awarded"2023 Excellent Case of Digital Intelligence

in Supply Chain"

Awarded"Top 100 Chinese Listed Companies Award 2023"

by Warton Economic Institute

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EnvironmentClimate ResponsePollution Control andEcosystem ProtectionResource Utilization andCircular EconomySocietyGovernanceAppendix

Environment

1.1

1.2

1.3

Climate ResponsePollution Control and Ecosystem ProtectionResource Utilization and Circular Economy

2023 Environmental Impact

Total environ-mental protec-tion input

2.27

GHG emissionintensity

76.26

Energy con-sumptionintensity

24.61

Water con-sumptiondensity

84.19

million RMB

tCO

e / hundred-million RMB ofoperating revenue

tons of coal equivalent /hundred-mil-lion RMB of operating revenue

m?/hundred-million RMB of oper-ating revenue

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Climate ResponsePollution Control andEcosystem ProtectionResource Utilization andCircular Economy

SocietyGovernanceAppendix

Climate Response

In recent years, the risks brought by climate changehave posed severe challenges to business operationsand development, making addressing climate changea common topic for human society. As a leading do-mestic comprehensive supply chain service provider,we respect the temperature control agreementsof the "Paris Agreement." Through technologicalinnovation, we integrate digital intelligence productswith the concepts of green development and productlifecycle into comprehensive supply chain services.We provide integrated industry services to upstreamand downstream partners, actively taking actionsto promote our own operations and the low-carbontransformation of the entire value chain.

We adhere to the mission of "Integrate Industry to Connect. Cre-ate Value to Share." and the core values of "Leadership, Respon-sibility, Hardworking, Partnership." Aligned closely with nationalstrategic planning, we strive to be a trusted industry partner withglobal vision, contributing to the achievement of the United Na-tions Sustainable Development Goals (SDGs) and the country's"dual-carbon goals."

We have set carbon peak and net zero action goals:

to peakcarbon emissions by 2030 and to reach the netzero emissions goal by 2060.Guided by the "Corpo-rate Net Zero Pathway - Delivering the Paris Agreement and theSustainable Development Goals" released by the United NationsGlobal Compact (UNGC), we have formulated ?ve initiatives toachieve net zero strategy. We are actively exploring a unique"dual-carbon" path with characteristics of our company.

2023 Management TargetsCompletion Status

Complete annual GHG(Scope 1, Scope 2) inventory work

Set carbon peak and net zero action goals: To peak carbon emissions by 2030 and to reach the netzero emissions goal by 2060

Increase the utilization of clean energy and progressively raise the proportion of green and cleanenergy year by year

Net Zero Strategy

1.1

Completed In Progress

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Environment

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Designing sustainable productsThrough technological innovation, we integrate digital intelli-gence products with green development and the concept of theproduct lifecycle into comprehensive supply chain services, pro-viding integrated industry services to upstream and downstreampartners.

Facilitating supply chain decarbonizationWe adopt sustainable materials and logistics methods in produc-tion and operations, collaborating with supply chain partners tobuild a sustainable supply chain, collectively promoting the over-all green and low-carbon transformation of the industry chain.

Utilizing renewable energy

We promote the use of renewable energy sources such as solarand wind power in production and operations, gradually reduc-ing the proportion of non-renewable energy sources such asfossil fuels, to drive energy transition.

Developing Sustainable industries

Seizing the opportunities for green and low-carbon transforma-tional development, we actively engage in initiatives such aspromoting the circular economy and enhancing the well-being ofthe people, thereby contributing to the sustainable developmentof cities.

Executing sustainable actions

Under the theme of "Passion for Nature and Dreams for Future,"we carry out a series of activities to advocate for nationwidegreen movement with everyone's participation, collaboration,and sharing, aiming to collectively safeguard the Earth.

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Climate ResponsePollution Control andEcosystem ProtectionResource Utilization andCircular Economy

SocietyGovernanceAppendixAccording to the ?ve scenarios under the IPCC's Shared So-cioeconomic Pathways (SSP), we have selected the very lowGHG emissions scenario (SSP1-1.9) and the very high GHGemissions scenario (SSP5-8.5) to conduct Near term, Mid-term, and Long term climate disaster risk identi?cation andassessment on our company's business and asset operations.

Climate change presents humanity with severe and long-term adjustment challenges. We integrate sustainabledevelopment risk management into a comprehensive riskmanagement framework. Referencing scenario models fromthe Intergovernmental Panel on Climate Change (IPCC), weidentify and assess near-term, medium-term, and long-termphysical risks. Likewise, referencing scenario models fromthe International Energy Agency (IEA), we identify and assessshort-term, medium-term, and long-term transition risksand opportunities. We then formulate corresponding riskresponse and strategic adjustment strategies to continuouslyenhance our strategic resilience under sustainable devel-opment risks, ensuring the sustainable development of ourcompany.

Sustainable Development RiskManagement

According to the IPCC's Sixth Assessment Report: Compared to 1850–1900, global surface temperature averaged over 2081–2100is 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 globalmean sea level rise is 0.28–0.55 meters, and the average annual global land precipitation is projected to increase by 0–5%. Com-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 GHGemissions scenario (SSP5-8.5), the likely global mean sea level rise is 0.63-1.01 meters, and the average annual global land precip-itation is projected to increase by 1-13%.

Physical Risks

Climate-related disaster risks

CurrentState

20302050SSP1-1.9SSP5-8.5SSP1-1.9SSP5-8.5Floods and TyphoonsThe destruction of urban infrastructure and its impact onhuman welfare and health, especially in coastal cities andresidential areas.Biodiversity loss and habitat displacementRisks of degradation in marine, coastal, and terrestrial eco-systems, including the loss of biodiversity, functionality, andprotective services.Sea Level RiseThe loss of human and natural systems in low-lying coastalareas, reduction in coastal ?sheries resources, decrease inprecipitation, and rise in temperatures.

Extreme HeatThe increase in temperature and extreme heat impose stressand lead to deaths, with an increase in heat-related mortalityand morbidity rates among both humans and wildlife. Foodand water security are at risk.DroughtsFreshwater scarcity, with a decrease in surface water supplyfor irrigation in agriculture and other human purposes.

Extreme Low Impact Low Impact Medium Impact High Impact Extreme High Impact

·Physical Risk Assessment

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Physical RisksImpact periodCoping MechanismFloods and TyphoonsThe destruction of urban infrastructure and itsimpact on human welfare and health, especially incoastal cities and residential areas.

Near, Mid & Long term

Establish a comprehensive emergency management mechanism, formulate emergency plans, take correspond-ing measures according to di?erent levels of warnings; regularly conduct emergency drills to enhance the abilityto respond to ?oods and typhoons; ensure that the company's equipment and buildings can withstand theimpact of super typhoons.Biodiversity Loss and HabitatDisplacementRisks of degradation in marine, coastal, and terres-trial ecosystems, including the loss of biodiversity,functionality, and protective services.

Mid & Long term

Actively take sustainable development actions, advocate for everyone's participation, mutual bene?t, andco-creation in the nationwide green action, jointly protecting the ecosystem.Sea Level RiseThe loss of human and natural systems in low-lyingcoastal areas, reduction in coastal ?sheries resourc-es, decrease in precipitation, and rise in tempera-tures.

Mid & Long termMonitor meteorological and oceanic changes to promptly adjust response strategies.Extreme HeatThe increase in temperature and extreme heat im-pose stress and lead to deaths, with an increase inheat-related mortality and morbidity rates amongboth humans and wildlife. Food and water securityare at risk.

Near, Mid & Long term

Monitor temperature conditions and provide employees with health and safety protection measures in high-tem-perature working environments; upgrade equipment with heat-insulating materials to enhance heat resistanceand conduct regular maintenance to proactively address extreme heat risks.DroughtsFreshwater scarcity, with a decrease in surfacewater supply for irrigation in agriculture and otherhuman purposes.

Near, Mid & Long term

Advocate for water conservation principles, promote water-saving appliances, and reduce water resource con-sumption.

·Physical Risk Management

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Transition RisksImpact periodCoping Mechanism

Geopolitical con?ictNear, Mid & Long term

Seize key areas in the domestic "East, West, South, North, and Central" for layout, accelerate overseas market expansion,increase internationalization e?orts, actively build a dual-cycle development pattern domestically and internationally; driveinnovation in business models, strengthen penetration along the entire industry chain, continuously build core competi-tiveness in investment and operation along the industry chain, large customer management, and one-stop services, relyon integrated channel resource integration capabilities to deeply penetrate the upstream and downstream of the industrychain, and maintain close strategic cooperation with industry chain customers based on mutual assistance and trust.Pressure from greenhouse gas emissionreduction policies

Mid & Long term

Adhere to the concept of green development, formulate net zero strategies and emission reduction targets, actively practicecarbon reduction actions; contribute to the low-carbon or decarbonization development of the industry chain by imple-menting technology innovation, actively researching and developing iterative digital products, while reducing greenhousegas emissions generated by our own operations.Growing market demand for sustainableproducts and services

Near, Mid & Long term

Utilize global resources to acquire and establish distribution channels, enhance professional and e?ective risk manage-ment capabilities, build a 5A-grade logistics distribution network, and vertically expand the industry chain upstream anddownstream. Horizontally enrich supply chain service content, provide customers with customized, integrated supply chainservice solutions, continuously enhance the innovation vitality of the industry chain, and nurture business growth.Demands for clean technology innovationand energy transition

Mid & Long term

Continuously advance digitalization strategy by innovating with technology, actively researching and developing iterativedigital products, empowering the industry chain to achieve green transformation. Accelerate expansion into new ?elds suchas new energy, new materials, information technology, and life sciences. Actively explore new energy materials businesssuch as cobalt and lithium.

·Transition Risk Management

According to the IEA's World Energy Outlook" (WEO): Under Net Zero Emissions by 2050 (NZE) Scenario, theGlobal energy-related carbon emissions reach net zero by 2050, limiting the rise in global temperatures to

1.5 °C. Under the Stated Policies Scenario (STEPS), which considers only speci?c policies already enacted

or announced by governments, annual carbon emissions from energy and industrial processes will increasefrom 34 gigatonnes in 2020 to 36 gigatonnes in 2030, remaining at roughly the same level until 2050. Ifemissions continue along this trajectory and non-energy-related greenhouse gas emissions follow a similartrend, the temperature will rise by approximately 2.7°C by 2100 (with a 50% probability). By 2050, the shareof renewable energy in global electricity generation will be close to 55%.We combine the Net Zero Emissions by 2050 Scenario (NZE) and the Stated PoliciesScenario (STEPS) within the IEA scenario model to assess the transition risks andopportunities for our development posed by climate change. Corresponding strate-gies are formulated to enhance the strategic resilience of our company and achievesustainable development.

Transition Risks

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GHGCategory

De?nitionPrimary GHG activities

Scope 1

Direct Greenhouse Gas Emis-sions refer to the greenhousegas emissions produced bythe organization itself, includ-ing the emissions producedby burning fossil fuels andindustrial processes. They aredivided into stationary com-bustion emissions, mobilecombustion emissions, pro-cess emissions, and fugitiveemissions.

? Natural gas stove? LPG stove? Diesel generator? Gasoline business vehicles? Diesel business vehicles? Diesel forklift and other on-site vehicles? Marine transportation? Operation of air condi-tioners and other coolingequipment

Scope 2

Indirect Greenhouse GasEmissions refer to the green-house gas emissions generat-ed from the energy consumedby the organization, such aselectricity and thermal ener-gy. This includes purchasedelectricity, purchased steam,and others.

? Electricity for production? Electricity for o?ce use? Purchased steam

To strengthen greenhouse gas emissions and energy management, the Strategic and Sustainable DevelopmentCommittee has designated individuals responsible for exploring research directions in energy conservation and car-bon reduction as well as providing operational and maintenance services related to energy-saving and carbon-re-duction e?orts. We aim to systematically advance greenhouse gas emissions and energy management initiatives.In accordance with the requirements of the ISO 14064-1:2018 standard, we conducted a greenhouse gas inventoryfor the following entities that have operational control in 2023 using the operational control method:

Our GHG inventory scope for 2023 includes Scope 1 direct emission sourcesand Scope 2 indirect emission sources. Scope 1 includes emission sourcesfrom natural gas boiler combustion, ships/vehicles combustion facilities,and fugitive emissions from equipment like air conditioning, while Scope 2includes GHG emissions generated from purchased electricity, heat, and oth-er energy sources.

GHG Emissions Control

·Description of GHG inventory scope for 2023Xiamen ITG Group Corp., Ltd.

OrganizationalBoundaries

OperationalBoundaries

Owned and Leased BuildingsO?ce Vehicles

Xiamen ITG InvestmentCo., Ltd.

Owned and Leased BuildingsO?ce Vehicles

Functional ManagementDepartments

Owned and Leased BuildingsO?ce Vehicles

Xiamen ITG Health TechnologyCo., Ltd.

Owned and Leased BuildingsO?ce VehiclesWarehouse Operations Equipment

Other Regional Companies

Owned and Leased BuildingsO?ce Vehicles

Xiamen ITG Digital TechnologyCo., Ltd.

Owned and Leased BuildingsO?ce Vehicles

ITG KEERUN(Shanghai)Co., Ltd.Supply Chain Business Clustersand Segments

Owned and Leased BuildingsO?ce VehiclesWarehouse Operations EquipmentOperating Cruise Ships

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·GHG Emissions

0.00

50,000.00100,000.00150,000.00

114,173.40

63,177.34

242,920.21

183,283.14200,000.00

300,000.00

250,000.00

20232022 Scope 1: Direct Emissions Scope 2: Indirect Emissions

Total GHG Emissions357,093.61tCO

e

The GHG emission intensity was

76.26

tCO

e/hundred million RMB.

GHG Emissions

In 2023, our total GHGemissions amounted to357,093.61 tCO

e

In 2023, the GHG emissionintensity was 76.26 tCO

e/hundred million RMB

tCO

e/hundred million RMB of revenuetCO

e

Direct GHG emissions (Scope 1)

114,173.40tCO

e

Energy indirect GHG emissions (Scope 2)242,920.21tCO

e

32%

68%

Scope 1Scope 2GHG Ratio

Category20232022Scope 1: Direct Emissions

（tCO

e）

114,173.4063,177.34Scope 2: Indirect Emissions

（tCO

e）

242,920.21183,283.14Total（tCO

e）

357,093.61246,460.48GHG Emission Intensity（tCO

e/hundred million RMB of revenue）

76.2647.22

·2023 GHG Emissions

47.22

76.26

GHG Emission Intensity

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EnvironmentClimate ResponsePollution Control andEcosystem ProtectionResource Utilization andCircular EconomySocietyGovernanceAppendix

Energy Type

2023 EnergyConsumption

2022 EnergyConsumption

Total comprehensive energy con-

sumption in 2023(tons of coal equivalent)

Total comprehensive energy con-

sumption in 2022(tons of coal equivalent)

Energy consumptionpercentage in 2023(%)Electricity (kWh)342,095,277.67271,331,451.2042,043.5133,346.6436.48Natural Gas (m?)1,169,092.15/1,554.89/1.35

Diesel (L)8,156,804.168,346,273.3910,221.3510,458.768.87Gasoline (L)433,068.61/465.17/0.40Lique?ed Petroleum

Gas (kg)

11,120.104,268.8019.067.320.02

Steam (t)139,112.8174,541.4513,173.987,059.0811.43Marine Fuel Oil (t)28,432.67/40,618.91/35.25Thermal Coal (t)10,007.038,012.847,148.025,723.576.20Thermal Energy (GJ)/3,204.96/109,353.27/

Total115,244.89100.00

·2023 Energy Consumption

·Energy Structure

ElectricityGasolineDieselNatural GasLique?ed Petroleum Gas Steam Thermal Coal Marine Fuel Oil

35.25%

6.20%

11.43%

0.02%

1.35%

8.87%

0.40%

36.48%

During the reporting period, our comprehensive energy consumption amountedto approximately 115,244.89 metric tons of coal equivalent. In terms of energy con-sumption structure, the highest proportion of comprehensive energy consumption isaccounted for by electricity and marine fuel, totaling approximately 71.73%. Regardinggreenhouse gas emissions generated from energy consumption, electricity contributessigni?cantly, accounting for 58% of the total greenhouse gas emissions produced fromenergy consumption throughout the year.

Energy Consumption

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SocietyGovernanceAppendix

Digital technology is an important clean technology in improving resourceutilization e?ciency, reducing energy consumption, and promoting thelow-carbon transformation of industrial chains. We continue to advanceour digital strategy by innovating and actively developing iterative digitalproducts. While reducing greenhouse gas emissions from our own opera-tions, we contribute to the low-carbon or decarbonization developmentof the industrial chain, thereby driving our business activities to have apositive impact on the environment.

Energy Conservation and Emissions Reduction Action

Intelligent Energy and Carbon Management Platform--"ITG Carbon Chain"

Intelligent Energy and CarbonManagement Platform--"ITGCarbon Chain"

The "ITG Carbon Chain" Intelligent Energy and Carbon ManagementPlatform utilizes the independently developed zero-carbon industrialInternet platform by our subsidiary, Xiamen Keerun OCSMARTER, as itstechnical foundation. It can real-time collect multi-dimensional energyand carbon emission data, construct energy and carbon emission mod-els, and achieve digital intelligence of energy and carbon management inmultiple scenarios, providing technological support for e?cient carbonaccounting and precise energy conservation and emission reduction. Itcan achieve integrated energy management covering "heating, electric-ity, cooling, gas, and water" as well as "source, grid, load, storage, andcharging," empowering users to complete the carbon management cycleof "e?cient carbon calculation, continuous carbon reduction, and scien-ti?c carbon management." The "ITG Carbon Chain" s Intelligent Energyand Carbon Management Platform has been applied in more than 10projects including Keerun Tire (Rizhao) and Zhonghong Kelun Pharma-ceutical Factory.

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The "ITG Carbon Chain" has helped boost theannual production of zero-carbon steam toover 100,000 tons at both Keerun Tire (Rizhao)and Keerun Tire (Dezhou). The combined costreduction for both factories amounts to ap-proximately 7.4 million RMB. Through the "ITGCarbon Chain," tire factories achieve intelligentdigitalization and low-carbon transformation,thereby accomplishing energy-saving, cost-re-duction, quality-enhancing, and e?ciencygoals.

"ITG Carbon Chain" has assisted the subsidiary ofZhonghong Pulin Medical Products Co.,Ltd., Zhong-hong Kelun Pharmaceutical Factory, in achievinglow-carbon transformation and digital intelligencemanagement of its factory. Through equipment up-grades and digital management systems, the opera-tional e?ciency of air compressors and chillers hasbeen signi?cantly improved. This has resulted in anannual reduction of approximately 1,694 tons of emis-sions for the factory, saving nearly 1.37 million RMB incosts.

Keerun Tire (Dezhou) Smart Biomass Thermal Power Station

Smart Air Compressor Station in Zhonghong Kelun Pharmaceutical Factory

HighlightEmpower tire factories for energyconservation and emission reduction

Highlight

Empower Zhonghong KelunPharmaceutical Factory to enhancequality and e?ciency

The "2023 Supply Chain Case of

Digital Intelligence"from the Alliance of Industrial Internetunder the Ministry of Industry andInformation TechnologyThe third prizein the Carbon Peaking and CarbonNeutrality Innovation Competition "NewGreen Cup" held by the China Academyof Information and Communications

Technology under the Ministry ofIndustry and Information TechnologyThe "Qingxin 2023 Practice PioneerDigital Intelligence Project"from the National Business DailyThe "Selected Cases of ExcellentPractice in Green and Low carbonDevelopment of China Enterprises

2023" from the China Enterprise Confederation

During this reporting period, the "ITG Carbon Chain" intelli-gent energy and carbon management platform has receivednumerous awards, including：

"ITG Atlas" Pulp and Paper Industry Solutions - A Pulp andPaper Industry Internet Platform that breaks through industrybarriers, enabling seamless integration with upstream facto-ries' orders. It establishes a complete closed-loop coveringthe entire chain from "upstream raw materials - midstreamproduction - downstream sales," thereby assisting the pulpand paper industry in improving quality and e?ciency."ITG Atlas" Pulp and Paper Industry Solutions utilizes block-chain technology in the pulp industry's Internet platform toaddress challenges such as numerous participants, insuf-?cient trust, and long-term reliance on paper documents.Simultaneously, the tamper-proof nature of blockchain tech-nology ensures the reliability of multi-party collaboration inthe supply chain. Data and documents on the blockchain cancirculate securely, enabling paperless document applicationsand e?ectively reducing carbon emissions generated duringthe use and transmission of paper documents.During this reporting period, "ITG Atlas" Pulp and PaperIndustry Solutions, an Internet platform for the pulp industry,was awarded the third prize in the Industrial Collaborationcategory of the inaugural Professional Competition for DigitalScene Innovation for State-Owned Enterprises. Additionally, itwas selected as a benchmark case in the "Compilation of Dig-ital Supply Chain Benchmarking Cases (2023)" by the ChinaAcademy of Information and Communications Technology.

To promote energy conservation and emission reduction actions and to e?ec-tively implement the Energy E?ciency Existing-Ship Index (EEXI) rules set by theInternational Maritime Organization (IMO), which requires existing bulk carriersto reduce carbon emissions by 20% compared to 2019 levels, we have carried outenergy-saving transformations on our own vessels, namely, the "Bailuzhou" and"Fenghuanghai".

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Flow guide tube: Install guide wheels/guideblades in front of the screw propeller to im-prove the uniformity of in?ow to the screwpropeller and the separation ?ow, generateadditional thrust, reduce the energy loss ofthe wake, and increase sailing distance by3%-7%.Vortex eliminators: Add small ?ns equalto the number of propeller blades on the de-?ector cap of the propeller to eliminate theenergy loss of the hub vortex of the screwpropeller, increasing sailing distance by2%-5%.Rudder bulb: Reduce water resistance,improve rudder e?ciency, increasing sailingdistance by1%-3%.Installation of electric heaters: During theship's anchorage period, use electric heatersfor the auxiliary engine fuel steam heater,the lubricating oil separator steam heater,the main engine cylinder liner steam heat-er, and the domestic water steam heater inparallel. Keep the auxiliary boiler warm andpressurized, and stop supplying steam. Thiscan achieve fuel savings of approximately

ton per day.

"ITG Atlas" Pulp and Paper IndustrySolutions

The Energy-saving Renovation of theVessels "Bailuzhou" and "Fenghuanghai"

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Biodiversity and ecosystems are the foundation of human survival and development. We respect international conventionssuch as the "Declaration of the United Nations Conference on the Human Environment" and the "United Nations FrameworkConvention on Climate Change", and strictly adhere to relevant environmental protection laws and regulations in China,including the "Environmental Protection Law of the People's Republic of China". We have formulated an "EnvironmentalProtection Policy" aimed at minimizing the negative impact on the environment caused by our business operations. We arecommitted to creating an environmentally friendly and comfortable working and living environment for our employees, part-ners, and communities where we operate.

2023 Management TargetsCompletion Status

Promote garbage classi?cation work actively to reduce the use of plastics

Control strictly the use of water resources in production and operation, achievingthe protection and e?cient utilization of water resources

Actively engage in environmental protection public welfare activities, advocating fornationwide green actions

In project investment, design, development, and operation stages, we incor-porate environmental impacts into project assessment and decision-makingprocesses. We avoid engaging in business activities unrelated to ecologicalprotection in important ecological conservation areas and their vicinity,such as World Heritage Sites and protected areas listed in the InternationalUnion for Conservation of Nature (IUCN) Red List of Threatened Species, toensure the integrity and e?ectiveness of habitat and biodiversity protection.We advocate for projects and activities that promote biodiversity protection,aiming to collectively achieve ecological protection.

Biodiversity Protection

Pollution Control andEcosystem Protection

1.2

Completed In Progress

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We strictly adhere to relevant laws and regulations such asthe "Environmental Protection Law of the People's Republicof China," the "Water Pollution Prevention and Control Law ofthe People's Republic of China," the "Air Pollution Preventionand Control Law of the People's Republic of China," and the"Law of the People's Republic of China on Prevention andControl of Environmental Pollution by Solid Waste." Through-out our business operations, we aim to reduce emissions ofair pollutants, hazardous waste, and wastewater.

Pollutants Emissions Control

Our subsidiary, Keerun Tire (Rizhao) Factory, has been included in the list of key environmental supervision units for 2023 by the RizhaoMunicipal Government in Shandong Province. The Rizhao factory currently has 14 air pollutant emission outlets, with the main outletsequipped with online automatic monitoring devices for pollution sources in accordance with regulations, which are connected to thelocal ecological and environmental department. The environmental protection and governance facilities for waste gas treatment currentlyemploy the following technologies: dust removal using bag ?lters, cotton ?ltering, electrostatic oil removal, zeolite adsorption, CO catalyticcombustion, SNCR denitri?cation + 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,the emissions of major air pollutants in 2023 is as follows:

CategoryTest Item

EmissionMethod

Average DailyEmission Con-centration

Permitted Emis-sion Concentra-tion

Excessiveemissions

Emission Vol-ume (Tons)

Permitted An-nual EmissionVolumeWaste Gas

Non-methanetotal hydro-carbons

Compliantemissions aftertreatment

1.35 mg/m

10 mg/m

None0.12869/

Keerun Tire (Rizhao) Factory conducts regular on-site noise emissionmonitoring (commissioned to third-party monitoring agencies) in ac-cordance with the requirements of the environmental impact assess-ment report and approval, and all monitoring results comply withthe relevant requirements of Category 2 of the "Emission standardfor industrial enterprises noise at boundary" (GB12348-2008) and the"Environmental quality standard for noise" (GB3096-2008).

Keerun Tire (Rizhao) Factory has signed hazardous wastetransfer and disposal contracts with quali?ed hazardous wastedisposal units, and has ?led transfer information with theWulian Sub-bureau of the Rizhao Environmental ProtectionBureau to ensure the legal and compliant transfer and disposalof hazardous waste. In 2023, the Keerun Tire (Rizhao) Factorygenerated 29.984 tons of hazardous waste, of which 25.973 tonswere transferred and disposed of.

Waste Gas Emissions Management

Waste ManagementNoise Management

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During this reporting period, we launchedsustainable co?ee cups made from discardedco?ee grounds and "Flying Love and Dream"lifestyle blind boxes made from biodegradableresin materials, in conjunction with the themeof "World Environment Day". Our aim is topromote awareness of "plastic Minimizationand carbon reduction", thereby contributing tosustainable development.Sustainable co?ee cups made from discarded co?ee grounds

The extensive use of plastic will have a serious impact on the ecosystem, particularly onthe habitats of birds and ?sh. We actively advocate for reducing plastic usage to alleviateplastic pollution issues.

In 2023, we did not use any disposable paper cups or plastic cups.Our company's chemical sector provides fully biodegradable plastic PBAT.This plastic can be decomposed through composting after disposal, whichhelps reduce the environmental harm caused by plastic.Our company's paperboard sector integrates resources from sugarcane pulpand bamboo pulp, promoting the use of paper as a substitute for plastic toreduce plastic production and decrease environmental pollution.

To address climate change and support the development of envi-ronmental public welfare initiatives, our "Flying Love and Dream"public welfare brand, building upon its existing ethos, combines ourESG governance objectives. We have selected environmental issuessuch as natural resource conservation, enhancing energy e?ciency,and addressing climate change, along with social issues such ashuman resources, product responsibility, and social responsibility.Under the theme "Passion for Nature and Dreams for Future," we areconducting a series of activities aimed at achieving the green trans-formation of our public welfare brand. Our goal is to engage societyin collectively safeguarding the beauty of our blue skies, green lands,and clear waters through action.

We actively implement household waste classi?cation, continuously improve inspection, promotion, andtraining e?orts, standardize the classi?cation and disposal of household waste, and manage records accord-ingly. We summarize the classi?cation work through monthly reports and other means. Furthermore, wespeci?cally require all departments and operating units to accurately dispose of lunch boxes, o?ce paper,discarded masks, and other waste to avoid secondary pollution. We conduct irregular inspections of wasteclassi?cation on each o?ce ?oor to promptly correct any non-compliant behavior. During this reporting peri-od, our company headquarters conducted a total of 4 training sessions on waste sorting and the explanationof sorting locations. Through these training sessions, we disseminated to all employees the ecological riskscaused by unsorted waste, knowledge on household waste sorting, and the distribution of garbage bins inthe building. This e?ectively enhanced employees' awareness of waste sorting and promoted the improve-ment of waste sorting practices.

Household Waste Classification

"Passion for Nature and Dreams for Future" Environmental Protection Charity

Action of Plastic Minimization and Carbon Reduction

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Resource Utilizationand Circular Economy

Development of a circular economy and promotion of resource con-servation, intensi?cation, and recycling serve as powerful supportsfor the country to achieve its dual-carbon goals. We integrate theperspective of resource conservation, intensi?cation, and recyclinginto our overall development strategy. We actively promote the sus-tainable and circular utilization of resources in investment projectsand throughout the supply chains of traded goods. Our commitmentis to achieve maximum economic and social bene?ts with minimalenvironmental costs, contributing to the construction of a circularsociety.

2023 Management Targets

CompletionStatus

The annual sales volume of recycled pa-per shall not be less than 1.4 million tons

The annual sales volume of scrap steelshall not be less than 700,000 tons

1.3

We strictly adhere to relevant laws and regula-tions such as the "Energy Conservation Law ofthe People's Republic of China," the "RenewableEnergy Law of the People's Republic of China,"and the "Water Law of the People's Republic ofChina" to protect water resources. We developand utilize water resources legally and compli-antly, strengthen water resource management,improve water resource utilization e?ciency,and reduce water waste. In our business opera-tions, we actively promote water conservationand advocate for it, regulating the use andmanagement of water in our internal productionand daily life to reduce water waste. We also ac-tively promote businesses related to recyclableresources such as waste paper to reduce defor-estation, promote soil and water conservation,and protect the ecological environment.

Water Resources Conservation

The design of our headquarter, ITG Center, fully implements green and sustainable conceptsand considers the conservation of energy, water, and materials, thus obtaining the two-starrating of national green building labels. We realized energy conservation by installing HVACand rainwater harvesting systems and launching water-saving products.

Completed In Progress

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By integrating resources across the industrychain, we provide comprehensive integratedsupply chain services to industrial customers.We upgrade the linear "forest-pulp-paper"supply chain to a networked service system,thus promoting the green and high-qualitydevelopment of the "forest-pulp-paper" in-dustry.

"Forest-Pulp-Paper"Industry

In the upstream industry, we prioritize the procurement ofsustainable wood, such as plantation forests in New Zea-land and planned reforestation in Europe and America.These forests, which have been certi?ed or are properlymanaged, have harvesting plans that align with ecologi-cal principles. They also implement timely replanting ofseedlings for replacement and renewal. Additionally, weseek to collaborate with large-scale timber processingsuppliers to maximize the utilization e?ciency of woodthrough production and grading, thereby achieving thegoal of forest protection.

We participate in chemi-mechanial pulp trading in the in-dustry's midstream, which allows high ?ber resource utili-zation and only 1/4 of the pollutant emissions compared totraditional chemical pulping methods. We supply bagassepulp and bamboo pulp for pulp molding, replacing plasticwith paper to reduce plastic production and usage. We tryhard to reduce deforestation by developing various greenpulp markets and leveraging sugarcane pulp and bamboopulp made from bagasse, a sugar production waste.

We collaborate with paper mills downstream of indus-try to sell waste paper and promote resource recycling.During this reporting period, our sales of recycled paperexceeded 1.4 million tons, reducing the felling of around

14.48 million trees and protecting approximately 841

square kilometers of forest.

We actively engage in the trade of recycled steel ma-terials to reduce waste of steel resources. During thisreporting period, our business scale in recycled steelmaterial trading reached2,087million RMB, withsales volume of776,500tons and contract signingvolume of 642,000 tons.

Trade of Recycled SteelMaterials

Sustainable Wood Procurement

Green Pulp SubstitutionRenewable Resources Utilization

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EmployeesInnovation-driven Development, Suppliers and ClientsRural Revitalization and Social Contribution

2.1

2.2

2.3

Society

2023 Social Impact

Total SocialContributions6,637.58million RMBSocial Con-tribution PerShare

3.01

RMBNumber ofEmployees6,947personsTotal Occupa-tional Healthand SafetyInvestmentNumber ofWork-relatedFatalitiesVolunteerServiceHoursTotal Em-ployee Train-ing Hours

38.03

million RMB

persons1,605hours114,431hours

Total TaxPayment2,627.93million RMBEmployeeCompensation1,721.45million RMBDividends Paid toShareholders1,644.54million RMBInterests Paid toCreditors1,208.34million RMBExternalDonations

1.53

million RMBSubtract: Amountof ?scal subsidiesreceived

566.21

million RMB

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Employees

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-ship " as our core values. Guided by the "Pioneering Culture", we empower the development of?rst-class enterprises. By perfecting a "results-oriented" value evaluation mechanism and a "striv-er-oriented" value distribution mechanism, we create a community of interests, providing employ-ees with a fair, healthy, inclusive, and upward-working environment to achieve mutual creation andsharing.

2023 Management GoalsCompletion Status

Formulate"Labor Rights Protection Policy"and "CommunityPolicy", provide equal employment and development oppor-tunities, and create a fair and just professional environment

No incidents of workplace discrimination or harassment oc-curred throughout the year

No penalties incurred due to violations of relevant labor lawsand regulations or employment discrimination

The average training duration provided to employees through-out the year should not less than

hours per person

The number of major accidents or signi?cant incidents shouldbezero

The mortality rate for general accidents should bezero

There should bezeroincident with direct economic lossesexceeding

million RMB

The annual occupational safety and health training for em-ployees and contractors should not be less than20,000

participants and30,000 hours

We adhere to the Universal Declaration of Human Rights, the United Nations Guiding Principles onBusiness and Human Rights, and the International Labor Organization's Declaration on Fundamen-tal Principles and Rights at Work. We strictly comply with the Labor Law of the People's Republic ofChina, the Labor Contract Law of the People's Republic of China, and relevant laws and regulationson 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 ?nancial and operationalcontrol and all employees (including contractors), aiming to fully safeguard the basic rights of em-ployees, such as human rights and occupational health. We provide comprehensive training mech-anisms and fair career development opportunities to employees, thus promoting the sustainabledevelopment of human capital within us. Furthermore, we encourage suppliers, partners, and otherstakeholders to join in implementing the initiatives and requirements proposed in our "Labor RightsProtection Policy".

Human Rights Protection

Completed In Progress

2.1

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62%

62%

5%

8%

45%

38%

30%

95%

10%

30%

70%

45%

Male Female Male Female

Under 30 30-50Over 50

Graduates Undergraduates Others

Employee Gender Ratio

Employee Age Structure

Employee Nationality Structure

Gender Ratio in Management

Employee Education Structure

China Others

During the reporting period, we rigorously enforcedthe "Labor Rights Protection Policy" and other inter-nal regulations related to employee recruitment andbene?ts. No penalties were incurred due to viola-tions of laws and regulations concerning labor rightsprotection in the regions where our business oper-ates. As of December 31, 2023, we had a total of 6,947employees.

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We adhere to the principle of equal employment and are committed tocreating a diverse and inclusive work environment. We practice fairness inemployee recruitment, promotion, and incentives, providing equal opportu-nities without discrimination based on gender, nationality, race, religion, age,disability, sexual orientation, or any other factors for candidates or employ-ees. Any form of discrimination and harassment, including but not limited tosexual harassment, threats, and intimidation, is strictly prohibited.During the reporting period, we did not experience any incidents of discrim-ination, harassment, or violations of compliance and fairness in recruitmentand hiring procedures.

We place great importance on protecting the rights of female employees,ensuring equal pay for equal work, and prohibiting gender discrimination.We have signed a "Special Collective Contract for the Protection of FemaleWorkers' Special Interests," fully guaranteeing female employees' rights topregnancy leave, maternity leave, breastfeeding leave, childcare leave, etc. Wecontinuously improve various welfare programs for female employees, suchas setting up lactation rooms, providing personalized health advice and treat-ment plans through "one-on-one" health consultations, to provide speciallabor protection for female employees, creating a working environment thatrespects 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"

We strongly oppose all forms of forced labor, child labor, slavery, servitude, and human tra?cking.In the "Employee Recruitment Measures" and the "Guidelines for Risk Control of Labor Outsourc-ing, Labor Dispatch Units, and Personnel (Trial)," the ages of candidates and personnel from out-sourcing companies are clearly speci?ed. During the recruitment process, strict age veri?cation isconducted, and we strictly adhere to the minimum working age as stipulated by relevant laws andregulations.During the reporting period, there were no risks of child labor or forced labor in any of our operat-ing locations, and no incidents of child labor, minors in hazardous work, or forced labor occurred.

Anti-discrimination and Anti-harassment

Protection of Women Employees' Rights

Prohibition of Forced Labor and Child Labor

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Employee Satisfaction Survey Employee Complaints and Protection

Protection of Employee Democratic RightsWe respect the democratic rights and freedom of speech granted to employeesby the constitution and laws, fully guaranteeing employees' rights to be informed,participate, express, and supervise. We value employee communication, activelypromote collective bargaining and mediation mechanisms, and provide diversi?edchannels for employees to express their opinions and grievances. In the demo-cratic formulation, modi?cation, negotiation, and decision-making processes ofregulations and systems involving employee rights, we fully solicit the opinions ofemployee representatives. We have signed Collective Contract, Special CollectiveContract for the Protection of Women Workers' Special Interests, and Wage Collec-tive Contract to fully protect employees' democratic rights.

We conduct democratic assessments to e?ectively understand em-ployees' demands regarding career development, occupational health,compensation and bene?ts, and other aspects. We manage potentialhuman rights risks such as workplace discrimination, harassment, andoverwork, and take preventive and corrective measures to promotea more inclusive, healthy, and diverse work environment. During thereporting period, we conducted an employee satisfaction survey cov-ering85%of employees. The average satisfaction score of surveyedemployees was 8.98out of 10, representing a6%increase comparedto the same period last year. Among the surveyed employees,87%reported high levels of happiness.

In response to violations of human rights protection, we have established corresponding complaintchannels and implemented e?ective procedures to ensure prompt and comprehensive investigation.If any employee encounters situations that violate human rights protection, they can ?le a complaintwith the Human Resources Department or Labor Union. The CEO O?ce, Human Resources Depart-ment, and Risk Compliance Department collaborate to handle complaints, including labor disputesand violations of human rights protection.If the investigation con?rms the validity of the allegations, in accordance with relevant laws, regu-lations, and internal policies, we take necessary punitive actions against the implicated employeesand provide necessary comfort to the victims and their families, ensuring that the rights of thevictims or complainants are protected. All information about victims or complainants is kept con?-dential to prevent retaliation.

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We adhere to the principles of "fairness, performance linkage, incentive, and talent attraction" inemployee compensation. Employee compensation consists of ?xed wages (including basic wagesand position wages), allowances, variable pay, and bene?ts. By signing the "Wage Collective Con-tract," we commit to implementing minimum wage standards not lower than the requirements oflaws and regulations. We also reference local and industry wage levels and relevant wage collectivebargaining situations to determine personnel income standards based on factors such as job attri-butes and competency levels. Employee grading and salary determination are conducted annually,considering factors such as employee capabilities. Additionally, a review of employee salary levelsand compensation matching is carried out each year.

We have formulated internal management systems such as the "Salary Management System,""Performance Management Regulations," "Salary and Bene?ts Management Regulations for Over-seas Employees," and "Implementation Rules for Enterprise Pension Schemes" in accordance withrelevant laws and regulations such as the "Contract Law of the People's Republic of China", "TheRegulation on the Implementation of the Contract Law of the People's Republic of China", and "TheCompany Law of the People's Republic of China". These systems provide employees with compet-itive, fair, and reasonable compensation and bene?ts, and we commit to implementing minimumwage standards not lower than the requirements of laws and regulations to ensure equal pay forequal work. We implement open, fair, and just principles of employee promotion management.During the reporting period, we revised the "Career Management Regulations," "Employee Rota-tion Management Measures," and "Internal Examination Management Measures," implementinga dual-track career development system for management and professional roles. By establishingobjective, speci?c, and uni?ed promotion standards and evaluation methods, we strive to provideemployees with comprehensive training mechanisms and fair career development opportunities,providing diverse employee training through the establishment of a scienti?c promotion manage-ment process, creating a fair and just talent environment. Additionally, through the implementationof employee stock ownership plans, we are committed to achieving mutual creation and sharing ofpersonal and corporate values.

Smooth Career Development Pathways

We have established and continuously optimized a scienti?c performance management system,utilizing comprehensive performance evaluation methods such as "KPI (Key PerformanceIndicators) + 360-degree performance appraisal." We implement performance assessmentcycles such as quarterly, semi-annually, and annually. Combining departmental and individualperformance plans, we apply performance evaluation results to aspects such as bonus distribution,salary adjustments, job grade adjustments, training, career development, and commendation,fully leveraging performance management to guide and motivate employee development.Performance communication is integrated throughout the entire performance managementprocess. performance interviews are conducted at least once a year. The interviews are conductedto discuss the assessed individual's work performance, behavioral performance, next year's workgoals, and improvement plans. Regular reporting and periodic guidance are provided, reviewingperformance indicator completion, conducting performance reinforcement and ongoing tracking,assisting in implementing improvement measures, ensuring closed-loop management, achievingscienti?c evaluation, rational allocation, and motivating employees to create value, forming a vir-tuous cycle. If the assessed individual disagrees with the performance evaluation results, they canappeal to the performance assessment group or relevant departments. The relevant departmentsmust ensure that within 10 working days of the appeal being ?led, the employee receives a fair andobjective assessment and response, ensuring the legitimate rights and interests of the appellantare respected.

Employee Compensation

Employee Performance Management

Support LevelP1

Executive LevelP2

Core LevelP3

Senior LevelP4

Expert LevelP5

Junior ManagerM1

Middle ManagerM2

Senior ManagerM3

Strategic ManagerM4

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GovernanceAppendix

"4321" Integrated Talent DevelopmentFramework

Improve Quality and E?ciency,

Empower for Mutual SuccessPursuit of ExcellencePillar 1Pillar 2Pillar 3

Talent Development Institute

Elite PlanNew Talent PlanTalent Development

PlanTalent Reserve Plan

Strategic ManagerMiddle-level CadreOutstanding Young CadreMid-leve Managers inSubaidiaty CompanyEmployees withTwo Years of Tenure

Major TalentTraits

Major Pillars ofCultivation

Support Teams

Digital Platform

North Star Program

Internal KnowledgeInheritanceCase Competition

Empower ProfessionalLinesFunctional DepartmentExternal ExperienceLearningElite Magic Cube

Position-speci?c SkillsTraining

Operating UnitsCo-creation of theAction PlanCultural CurriculumPromotionPromotion ofPioneering Activities

Taking a long-term perspective, we utilize equity incentivesas a mechanism for pro?t sharing, e?ectively aligning the in-terests of shareholders, company, and key team members,thereby supporting sustainable business development.During this reporting period, we implemented a RestrictedStock Incentive Plan, granting a total of 20,677,200 sharesto 397 mid-level management and key employees.

We provide employees with bene?ts such as marriage leave, maternity leave, prenatal examination leave,caregiving leave, breastfeeding breaks and maternity leave, childcare leave, nursing leave, bereavement leave,annual leave, and other statutory holidays; we legally contribute to employees' social insurance and housingprovident fund, and o?er supplementary medical insurance; on-duty employees enjoy bene?ts such as hygiene

We have established and continuously improved the "4321"talent development system, based on the concept of "Pio-neering Culture". We distilled four major talent characteris-tics - "Pursuit of Excellence, Responsibility and Dedication,Preservation and Innovation, E?cient Collaboration" - andfour key abilities, guiding the talent development goals.We established a three-pillar training program system of"Cultural Leadership, Professional Advancement, and Man-agement Progression", emphasizing talent development toensure the capacity building of the HR team and internaltrainers. Centered around the positioning of "the world ofeducation at your ?ngertips", we continuously enhancedthe digital learning platform, ITG WE-Learning.

Employee IncentiveMechanisms

Employee WelfareBenefits

Multi-Dimension TalentDevelopment System

Responsibility andDedication

Preservation andInnovation

E?cient CollaborationCultural LeadershipProfessional AdvanccmentManagemnet Progression

HR Ling Ying PlanLighthouse Plan Internal Trainer SpecializationITG i-School Learning Everywhere, Smart Classroom

allowances, lunch subsidies, transportation allowances, heatstroke prevention allowances, holiday bonuses, year-end double salary, annual healthcheck-ups, etc.; we implement an enterprise annuity system to provide retirement bene?ts for employees through additional pension plans.For expatriate employees, they can choose between two options: remote permanent medical coverage or temporary remote medical coverage. Wepurchase overseas insurance (including overseas emergency medical rescue, coverage for infectious disease death and critical illness, accident andillness outpatient and inpatient allowances, travel property loss, third-party liability, etc.) for expatriate employees (non-residents of the country ofassignment) who apply for it, ensuring the health and safety of expatriates abroad.

6,095with a total ofemployees participated

receivedawardsfrom industry organizationsfor learning initiatives

1,281We organized a total ofemployee trainingsessions

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In 2023, we held our ?rst "InternationalizedTalent Program" specialized in internationaltalent development. The InternationalizedTalent Program aimed to cultivate con?dent,capable, and willing international talentsthrough specialized training. It aimed tostrengthen the understanding of internationalstrategies, enhanced skills in overseas busi-ness expansion, and reinforce cross-culturaladaptability, thereby facilitating the smoothoperation of our international business. Theprogram is designed around talent devel-opment objectives and integrates the entirechain of talent selection, nurturing, andutilization., focusing on empowering trainingwith the main themes of "global perspec-tive, overseas expansion capabilities, andcross-cultural integration." The ?rst batch of

participants entered the internationaltalent pool, receiving priority considerationfor subsequent advanced empowerment andpersonnel deployment.

The "North Star Program" corporate culturespecial training, employing an integratedapproach of "teaching and practice. " Weorganized

sessions to promote the course"Pioneering Excellence" with coverage of near-ly5,000participants, including

sessionsheld remotely. The initiative also launchedthe "Pioneering Declaration SHOW" activity,accumulating over

insights into corpo-rate culture learning. This initiative e?ectivelymobilized employees to participate in onlinecorporate culture learning community activi-ties, deeply embedding the understanding ofthe "Pioneering Culture" within the organiza-tion.

HighlightInternationalized Talent Program

Highlight

North Star Program

The project's training objectives are "roletransformation, management e?ciencyenhancement, and innovation stimulation."It empowers outstanding young cadres totransit into top-notch managers by focusingon four aspects: "management strategy,cross-border communication, strategicorientation, and business thinking." Throughthe implementation of the "InnovationProposal Workshop," participants engage inpractical work scenarios, critically evaluate,re?ect, and propose actionable solutions.This workshop outputs innovative proposalsgrounded in practicality, ensuring seamlessintegration between "learning" and "practicalapplication" to enhance business quality ande?ciency. In 2023, there were a total of

participants in the New Talent Plan, with anaverage satisfaction score of

points.

The plan's training objectives are "breakingstereotypes, transforming and upgrading, andbroadening perspectives." In line with ourrequirements for change and development,the project has devised a four-level cognitivemodel: "self-awareness, understandingothers, understanding the world, andunderstanding wisdom." Following the logicalthread of "leadership - strategic management- management practice focus," the projectsystematically designed empoweringcourses under the themes of "leadership,strategic management, and managementpractice focus." The aim was to assist middle-level cadres in elevating their positions,broadening their horizons, and providing keyinsights on digitalization, internationalization,team management, and other crucialaspects of work. The participants clearlyidenti?ed improvement points in the planand proposed management work plans. In2023, there were

participants in the ElitePlan, with an average satisfaction score of

points.

HighlightNew Talent Plan

HighlightElite Plan

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We strictly adhere to relevant laws and regulations suchas the " Law of the People's Republic of China on WorkSafety " and industry standards, and reference interna-tional standards such as ISO 45001. We continuouslyimprove occupational health and safety managementsystem. Using the " ITG Intelligent Brain - Safety Man-agement System" as a focal point, we strengthen theimplementation of work safety responsibilities, enhanceguidance and supervision of work safety in our subordi-nate business units, e?ectively prevent and resolve vari-ous safety risks, and resolutely prevent the occurrence ofwork safety accidents.During this reporting period, after consulting relevantdepartments, we organized the revision of work safetysystems and emergency plans, including the " Major Safe-ty Risk Announcement and Warning Regulations," " SafetyHazard Investigation and Management Regulations," "Safety Risk Identi?cation, Assessment, Grading, and Con-trol Management Regulations," and " Flood and TyphoonEmergency Plan." We actively urged all units to advancesafety standardization construction, resulting in theaddition of three new Level-3 standard-compliant unitsin work safety within the year, with two units passing thestandard-compliant reexamination.

All-Sta? InvolvedOccupational Health andSafety Management

We have established a Work Safety Committee (hereinafterreferred to as the "Committee") composed of board chairman,senior management, and the principal responsible persons ofsecondary work safety key units. The chairman of the board ofdirectors serves as the director of the Committee, and the presi-dent and deputy secretary of the Party Committee serve as vicedirectors of the Committee. The Committee has set up a WorkSafety Committee O?ce (hereinafter referred to as the "Of-?ce"), with the deputy secretary of the Party Committee servingas the director of the O?ce and the deputy director of the CEOO?ce serving as the vice director of the O?ce. The CEO O?ceis responsible for the daily work of the O?ce, and the membersof the O?ce are composed of full-time safety managementpersonnel from the CEO O?ce and work safety leaders fromvarious key units. We link the performance compensation of themanagements with the safety and environmental performanceof the managed units by formulating regulations and systemssuch as the " Regulations on Work Safety Management" and the" Full Work Safety Responsibility System." If a signi?cant safetyor environmental responsibility incident occurs during theannual performance assessment period, resulting in signi?cantadverse e?ects on us or causing losses to state-owned assets,the annual performance salary and deferred performancesalary of the principal responsible person of the unit shouldbe deducted. We strictly implement the all-sta? work safety re-sponsibility system, signing " Work Safety Target ManagementResponsibility Letters" at all levels to achieve the principle of"work safety, everyone's responsibility," forming a top-down,all-sta? participation work safety management framework.

Work Safety Management

Key Work Safety Units

The Persons in Charge of Various

Key Units

Leaders from Key Units andOther Work Safety Management

Personnel

The First Responsible PersonMembers

Work Safety Committee

O?ce

Deputy Secretary

of the PartyCommittee

Deputy Director of

the CEOO?ce

Work Safety Leaders from

Various Key Units and Full-time

Safety Management Personnelfrom the CEO O?ceDirectorVice DirectorMembers

Work Safety Committee

Chairman of the

Board

President and DeputySecretary of the Party

Committee

Board of Director Members,Senior Management, and the

Principal Persons inCharge of Key UnitsCommittee

Director

Vice CommitteeDirector

Members

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During this reporting period, we organized a total of 7 special work safety meetings, where safety risks werethoroughly analyzed and assessed. Through these meetings, we tightened the work safety responsibilitiesof leaders at all levels and the main responsibilities of various operating units. Functional departments andoperating units were organized to re?ne and decompose work safety objectives and tasks at each level, and" Work Safety Target Management Responsibility Letters" were signed accordingly. Following the principleof "horizontal to the edge, vertical to the bottom," we ensured full coverage across all sta?. Throughoutthe year, there were no fatalities or major work safety accidents, no incidents resulting in severe or aboveinjuries, and the incidence rate of occupational diseases remained at 0.

Digitalization Empowers Work Safety

Identi?cation, Prevention, and Management of Safety Risks

We implemented digital management of work safety through the con-struction of the "ITG Intelligent Brain - Safety Management System".During the use of the system, continuous improvement were carried outin functions such as hazard identi?cation and control, contractor person-nel management, etc., making them more comprehensive and e?cientin serving the work safety management.During this reporting period, we conducted comprehensive safety riskidenti?cation, assessment, grading, control, and the construction of adual prevention mechanism for hazard investigation and recti?cation forseven units including Keerun Tire (Rizhao) Factory. Additionally, the sec-ond phase of the work safety management system was implemented. Weorganized training sessions on system usage for over

employees.Throughout the system implementation process, a total of1,840riskswere identi?ed and assessed, with

hazards detected during inspec-tions, all of which have been recti?ed.

During this reporting period, we revised and improved the " Safety Risk Identi?cation, Assessment,Grading, and Control Management Regulations," "Safety Hazard Investigation and Management Reg-ulations," and " Major Safety Risk Announcement and Warning Regulations" and other regulationsto standardize work safety risk management. Through comprehensive identi?cation and control,we regulated safety risks in various operating units during the production and operation processes,including potential hazards and signi?cant risk sources, limiting possibilities of risks to preventableand controllable ranges, thus enhancing safety management capabilities.

Through annual, quarterly, and dailyhazard identi?cation and risk assess-ment, we carry out hazard identi?ca-tion work for key areas, key locations,key processes, as well as operationalbehaviors, occupational health, envi-ronmental conditions, safety manage-ment, etc.

Based on safety risk assessment andthe types and levels of safety risks, wecategorize them into four hierarchylevels from high to low: operating unit,department, team, position. These areprogressively implemented at each levelof position and management, ensuringthat every risk is managed, monitored,and supervised by individuals.

We use LEC evaluation method, riskmatrix method, and other methodsto identify and assess hazards, andclassify four safety risk levels from highto low: major risk, serious risk, generalrisk, and low risk, indicated respec-tively by the colors red, orange, yellow,and blue.

After the classi?cation is completed,we organize the writing and estab-lishment of a safety risk list and da-tabase, specifying the identi?ed timeand area, existing risks and levels,control measures, and recommenda-tions, to improve safety risk controlmeasures.

The process of identifying hazards and controlling risks

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We implement the regulations for safetyhazard investigation and recti?cation and theregulations for major safety risk announce-ment and warning such as "Safety HazardInvestigation and Management Regulations,""Major Safety Risk Announcement and Warn-ing Regulations", adhering to the principleof "safety must be managed in all businessoperations, industries, and production andoperation activities." We strengthen the workof safety hazard investigation and recti?ca-tion to prevent safety risks.

During the holidays, senior management led teamsto conduct extensive work safety inspections at thegrassroots level. In 2023, a total of

safety inspec-tions were conducted, during which

issues andhazards were identi?ed. All identi?ed issues havebeen recti?ed.

The safety hazard investigations conducted within the year include:

Invited external safety experts, utilizing a "checkwhile guiding, targeted measures" approach, com-prehensively and systematically investigated thesafety risks presented in various key operating units.In 2023, a total of

external experts were invitedto conduct on-site research and diagnosis for

locations with higher work safety risks and denselypopulated areas, including Ningbo Zhencheng Min-ing Co., Ltd., Hainan ITG Logistics Park, and KeerunTire Dezhou Factory. A total of

recti?cationmeasures were proposed, all of which have beencompleted.

Through the " ITG Intelligent Brain - Safety Man-agement System," we carried out safety hazardself-inspection and self-correction work in varioussubordinate operating units. In 2023, the subordi-nate operating units conducted a total of5,627

self-inspections for work safety hazards, all ofwhich have been recti?ed with a completion rateof100%.

By issuing an "Urgent Notice on ConductingEmergency Inspection of Gas Safety Hazards," weinstructed all operating units to conduct comprehensive inspections of bottled gas and pipelinegas. A thorough inspection of gas safety hazardswas carried out in rental properties under thejurisdiction of ITG Health Technology and seniorcare industry to ensure that all procedures relatedto gas usage were complete, legal, and compliant.

Organized and urged subordinate operating unitsto actively participate in

special recti?cationactivities, including "Work Safety Month," specialrecti?cation for gas safety, and "119" ?re safetyawareness month. A total of

reports weresubmitted on the phased progress, summaries,and conclusions of various work safety tasks toensure the e?ective implementation of variousspecial recti?cation activities.

Safety Hazard Investigation andRecti?cation

work safety inspectionsparticipated

recti?cation noticesissued

1,149

recti?cation itemsidenti?ed

1,149

recti?cationscompleted

100.00%

completion rate of

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We have developed systems such asthe " Flood and Typhoon EmergencyPlan" to deploy emergency pre-paredness and response measuresfor potential natural disasters causedby extreme weather due to climatechange. Through regular organizationof environmental emergency drills,we enhance employees' emergencyresponse capabilities.During this reporting period, variousoperating units organized a total of

223 emergency drills according tothe annual drill plan. These drills in-cluded emergency drills for slope col-lapse, ?ood and typhoon prevention,?re safety, crane accident response,vehicle injury response, and electri-cal accident response. A total of 3,951participants took part in these drills,covering 100% of employees.

To safeguard the rights of outsourcing contrac-tors, we have formulated the "Labor Rights Pro-tection Policy" and the "Risk Control Guidelinesfor Labor Outsourcing, Labor Dispatch Units, andPersonnel (Trial Implementation)." We requireoutsourcing agencies to lawfully contribute tosocial insurance and purchase employer liabil-ity insurance for personnel assigned to work atvarious operating unit. They must also provideon-site workers with labor protection equipmentthat meets national or industry standards. Foroutsourced contractors engaged in hazardouswork, regular medical examinations and occupa-tional disease surveys are required, and healthrecords are established to ensure their healthand well-being.Through conducted surveys on the managementof outsourcing agencies and personnel in variousoperating units, the O?ce analyzed and sum-marized the insurance coverage situation andmanagement issues of outsourced personnel ineach operating unit. Through in-depth discus-sions with insurance brokers and other relevantparties, the O?ce explored improvements inoutsourcing personnel management to enhanceoccupational health and safety management foroutsourced personnel.

We advocate organizing occupational health training activities for employees and stakeholders suchas contractors. We encourage suppliers and contractors to conduct occupational health and safetymanagement in accordance with international standards such as ISO45001 Occupational Health andSafety Management System, fostering a healthy and safe working environment together.In terms of safety education and training, we have invited external experts to conduct training on thefull implementation of the all-sta? work safety responsibility system, assessment criteria for major ac-cident hazards, and gas safety education. This initiative comprehensively promoted the constructionof the all-sta? work safety responsibility system, aiming to prevent safety accidents from the source.We urged all operating units to remain vigilant, enhanced safety awareness, acquired necessaryknowledge of work safety, and improved hazard identi?cation capabilities to prevent accidents.Additionally, we actively carried out themed propaganda and education. During Work Safety Monthand Fire Safety Awareness Month, promotional slogans were displayed on the front desk televisions ino?ce building. Propaganda materials were also distributed to various operating units through elec-tronic screens, bulletin boards, banners, o?cial WeChat accounts, and our o?cial website, creating astrong atmosphere of work safety.Moreover, we organized all employees to participate in activities such as the "Work Safety KnowledgeContest" and the "Chain Worker Treasure 2023 National Work Safety Month Knowledge Competition,"aiming to promote our work safety systems and safety knowledge.

During this reporting period, various operating units actively organized

safety training sessionson topics such as "Safety Knowledge Promotion for Working at Heights," "Safety Knowledge Promotionfor On-site Operations," and "Safety Responsibility is Paramount," with a total of24,881 participants.

Environmental EmergencyDrill

Promotion and Training on Occupational Health and Safety Occupational Health and Safety

Management of the OutsourcingParty

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We pay attention to employees' mental health and respect theirpersonal values. We have long been implementing the EmployeeAssistance Program (EAP), aiming to provide care, support, and as-sistance for the psychological health of all employees and their im-mediate family members. We continuously enhanced occupationalhealth service capabilities and protection levels. During this report-ing period, our EAP program conducted over 10 online live coursesessions and provided counseling services to 183 participants. The"All-Sta? Mental Health Check" project attracted 2,811 participants,and 71 employees signed up for the ?rst phase of the "EAP Ambassa-dor" series training.

We strictly implement holiday and working time man-agement in accordance with relevant requirements, en-suring that employees enjoy reasonable and su?cientrest time. Additionally, we provide a healthy workingenvironment for employees and support their mentaland physical health by organizing diverse cultural andsports activities.We advocate for a healthy work-life balance.We implement a professional occupationalhealth consultation system, providing em-ployees with consulting services on diseaseprevention and occupational health protec-tion to avoid the hazards of occupational dis-eases. Regular psychological health tests areprovided to employees to prevent the impactof occupational stress on their mental health,ensuring the physical and mental health andsafety of employees.

Advocate For HealthyWork and Living

Employee Assistance Program Diverse Cultural and Sports Activities

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Innovation-driven Development, Suppliers, and Clients

As a trusted global industrial partner, we focused on full industry chain operations, injecting three "chain dynamics" into the industry and society—integrated ser-vices, industry connectivity, and ecosystem co-creation. We rely on six pillars of support: diverse integration, customized solutions, industry depth, partner empower-ment, cross-border innovation, and sustainable symbiosis. We provide eight types of services to partners, including procurement services, distribution services, pricemanagement, logistics services, ?nancial services, market research and development, digital operations, and industry upgrades. By aggregating deep and multidi-mensional resources, we empower upward development and ecological synergy in the industry, creating a resilient foundation for the industry and society and nur-turing new value in the industry.

2023 Management GoalsCompletion Status

Continuously enhance the supply chain risk management system, establishing due diligence mechanisms for the supply chain, and ensuring no supply chain compliancerisk events occurred throughout the year

Gradually incorporate CSR/ESG evaluation dimensions into the new supplier admission assessment criteria

The signing coverage of the "Integrity Agreement" and the "Labor Compliance Commitment Letter" with suppliers and contractors reach100%

Continuously advance technological innovation and digitalization construction, with the addition of no less than

new intellectual properties throughout the year

Enhance information security management, with no information security incidents or breaches of customer privacy occurring throughout the year

2.2

Completed In Progress

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Integrate Industry to Connect and Create Value to Share

We help clientsaggregate vertical multidi-mensional resources By un-derstanding business neds,empowering industries tomove upward and achieveecological synergy.

We connect Industry

Future and CreateValue Growth through

Integration

We provide e?cientand customized solutionsfor enterprises, coveringvertical and horizontal up-stream and downstreamindustries

We balance short-term bene?ts and long-term development,continue to reap rewardsduring their growth,creating a sustainablebusineess circulationfoundation.

We break the re-strictions between supplyand demand identities,connect cross-border part-ners, and explore ?nancialcollaboration and digitalboundary upgrades.

We rely on core competencies, including access to globalresources and channel layout, professional and agile compre-hensive risk control systems, a 5A-grade logistics distributionnetwork, and comprehensive ?nancial service capabilities. Wedeeply cultivate eight industry chains including "metallurgy,petrochemicals, textiles, non-ferrous metals, pulp and paper,agricultural products, rubber, and new energy". We verticallyexpand the upstream and downstream of the industry chainand horizontally enrich the content of the supply chain ser-vices. From the perspective of full industry chain operation,we provide customized and integrated supply chain servicesolutions, e?ectively addressing the core demands of produc-tion and manufacturing enterprises such as stable sources ofgoods, cost reduction, and risk control. This strengthens andenhances the leading position of the supply chain industry.?On the raw material front, we integrate domestic and for-eign material procurement demands to lock in raw materialprocurement costs for downstream operations and ensurestable supply of goods.?At the production end, we o?er multimodal integrated lo-gistics services, customizing and di?erentiating solutions forfactory raw material blending requirements through ?nancialderivatives such as futures and options.?At the sales end, we leverage global marketing networkto e?ectively align products with channels, empowering theentire industry chain to improve quality and e?ciency.

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At a privately-owned steel mill in Xianning City, a procure-ment order for 80,000 tons was divided into three partsand purchased globally. With signi?cant ?uctuations inmarket prices, this steel mill relied on the global procure-ment network of Hubei ITG Supply Chain. The materialwarehouse was ?lled with iron ore from Australia andBrazil. This ensured the supply of raw materials whilealso reducing procurement costs by three percent.Anchoring bulk commodity procurement, Hubei ITG Sup-ply Chain deeply cultivates the core business of "logistics+ trade + import" in bulk commodities, aiming to becomea leading enterprise in resource-integrated supply chain.It successfully establishes channels for importing coalfrom Indonesia and iron ore from South America intoHubei province. In 2023, Hubei ITG Supply Chain's importscale reached 680 million US Dollars.

HighlightReducing costs and increasing e?ciencyfor manufacturing enterprises

Since 2016, we have seized opportunities and integrat-ed into the development of Central Asia, delving deepinto the cotton spinning industry in Uzbekistan, with thescale of cotton yarn imports ranking ?rst in the countryfor consecutive years. In recent years, we have accu-rately grasped the window of opportunity for reforms inUzbekistan, continuously extending the "textile-clothing"industry chain in conjunction with local raw materialsand industrial advantages, supporting local industrialupgrades. The Boyovut Cotton Textile LLC. In Syrdaryaregion of Uzbekistan, cooperated with us, has created alarge number of employment opportunities and exportscale for the local area, achieving an export value of 6million US dollars in 2023.

HighlightHeading out along the " Belt andRoad," the cultivation of small cottonseeds has led to the growth of a majorindustry.

by the General Manager

Nearly half of our products enter China throughXiamen ITG Group procurement. Currently, we areplanning a phase two factory and discussing withXiamen ITG Group to extend the industry chain,allowing our products to upgrade from cotton yarnto cotton fabric.

A?ected by macro factors, mismatches in PTA supplyand demand in the polyester industry chain have led toissues such as unclear seasonal ?uctuations in demand,resulting in high inventory and poor turnover for a certainpolyester enterprise. ITG Petrochemical Co., Ltd. com-prehensively assessed the short, medium, and long-termneeds of this enterprise and introduced ITG Solutions'comprehensive industry services. Utilizing a combinationof futures and spot trading, the partnership aimed toreduce ?nished product inventory, ensured continuousproduction, optimized raw material inventory structure,reduced costs, and improved e?ciency. By leveragingour supply chain management advantages and hedgingfunctions in the ?nancial derivatives market, this solutionlocked in processing pro?ts for the polyester enterpriseand activated working capital. This initiative helped theenterprise avoid losses, saved costs exceeding 15 millionRMB, assisted in navigating industry cycles, ensuredstable supply to safeguard people's livelihoods, and hasreceived positive social feedback locally.

HighlightITG Solutions comprehensiveservices in the polyester industrychain to enhance resilience.

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DigitalIntelligenceEmpowerment

R&D Support

The "ITG ATLAS" is a supply chain intelligent platform that integrates electronic signatures,smart logistics, supply chain ?nance, and other functions. It achieves ?exible supply chainmanagement, addressing issues such as the complexity of traditional supply chain serviceprocesses, lack of agility in operations, mismatch between supply and demand, and lack ofsynchronization in information. As the "chain leader" enterprise, we utilize the "ITG ATLAS"supply chain intelligent platform to bridge the information silos between factories andlogistics, facilitating e?cient circulation of contracts, information, funds, and logistics. Thispromotes e?cient communication and helps upstream and downstream customers reducecosts and improve e?ciency.During this reporting period, the "ITG ATLAS" supply chain intelligent platform has coveredover2,200 customers, processed over40,000orders, and accumulated a total transac-tion amount exceeding

12.5

billion.In 2023, the "ITG ATLAS" supply chain intelligent platform was honored with the " Innova-tion Case of National Smart Enterprise Construction" award by the China Enterprise Confed-eration.

"ITG IRSP" intelligent warehouse monitoring and management platform connects "people,vehicles, goods, and scenes." By deploying sensors in perimeter security, bulk cargo inven-tory, and other warehousing and logistics scenarios, and through technologies such as IoT,edge computing, and digital twins, the supply chain management becomes more data-driv-en. While ensuring the safety of goods and scenes, it also improves the e?ciency of logisticsmanagement. In addition, the intelligent hardware devices deployed by the "ITG IRSP"intelligent warehouse monitoring and management platform prioritize the use of renewableenergy, with most of them using photovoltaic power generation, e?ectively reducing carbonemissions in warehousing management processes.In 2023, the "ITG IRSP" intelligent warehouse monitoring and management platform washonored with the "Outstanding Case of Innovative Applications in Big Data, Internet ofThings, Blockchain Supply Chain Finance, etc. " at the Xiamen 5G Application Competitionhosted by the Xiamen Industrial and Information Technology Bureau (Big Data ManagementBureau).

HighlightIntelligent Supply Chain Comprehensive Service Platform -"ITG ATLAS"

HighlightIntelligent Warehouse Monitoring and ManagementPlatform - "ITG IRSP"

We have formulated the "Research and Development Management Measures" and estab-lished a collaborative management mechanism for research and development (R&D). TheR&D department serves as the coordinating management department for R&D, responsiblefor improving the R&D system, drafting and revising R&D management regulations, opti-mizing the R&D process, coordinating and guiding R&D-related matters across departmentsand subsidiaries, and facilitating the sharing and e?cient allocation of various R&D resourc-es. We continuously strengthen comprehensive research and analysis on international newmarkets, emerging industries, and new business models, deepen the layout of emerging?elds, and conduct related industrial research on the upgrading of traditional industries, toassist investment decisions.

We prioritize customer-centricity andleverage technological innovation anddigital empowerment to o?er smartsolutions suitable for various bulkcommodity supply chains. These solu-tions aim to facilitate e?cient businesscirculation for industry partners.

Smarter and AdvancedSupply Chain Services

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Supply Chain Human Rights DueDiligence

Violation Reporting Mechanismin Supply ChainWe have formulated the "Compliance Guidelines forPreventing Forced Labor Risks in the Supply Chain," andregularly conducted supply chain due diligence throughmethods such as blacklist screening, information collec-tion, document review, on-site visits, questionnaire sur-veys, data analysis, and compliance audits. We focus onsix indicators of forced labor, including intimidation andthreats, abuse of vulnerable positions, movement restric-tions, isolation, harsh working conditions, and unreason-able working hours. We aimed at e?ectively preventingand controlling human rights risks in the supply chain.

We establish anonymous reporting channels and ave-nues according to suppliers and other stakeholders. Weprovide guidelines to whistleblowers on how to ?ll outreporting forms, how to provide necessary information,and evidence. We and our subsidiaries may adopt mea-sures such as open channel searches, interviews withrelevant personnel of suppliers, or third-party interferenceto appropriately investigate and verify the reported con-tent and respond promptly to the reports. If violations ofhuman rights protection or other non-compliance issuesby suppliers are con?rmed after investigation, we willtake corresponding corrective measures and explain thesubsequent processing steps to the stakeholders.

After years of market operation and continuous im-provement, we have established an e?cient compre-hensive risk management system, continuously iter-ating our multidimensional risk control managementcapabilities such as dynamic credit granting, moni-toring alerts, risk investigation, recti?cation tracking,and post-event review. We possess composite riskmanagement tools including inventory management,position management, credit management, pricemanagement, hedging, and insurance coverage. Em-bedding risk management, risk warning tracking, andpre-control at various critical nodes of the businesschain, we utilize re?ned risk management techniquesto connect revenue with costs, e?ectively operate involatile markets, and avoid negative impacts of majorrisks. Furthermore, we continuously strengthen mar-ket research and analysis, increase the use of digitaltechnology, fully utilize specialized digital meanssuch as research and judgment, dynamic monitor-ing, and intelligent inventory, enhance risk controle?ciency, and achieve comprehensive risk controlcoverage with proactive warning and control, dynam-ic control during events, and normative summaryafterward. Additionally, we provide risk managementservices externally, laying a solid foundation for ourstable and high-quality development as well as thatof industry partners.

Supply Chain RiskManagement

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As a responsible corporate citizen, we are committed to jointlypromoting the high-quality development of the industrial ecosys-tem with our partners. We have formulated the "Supplier Code ofConduct," which sets out requirements for human rights protection,occupational health and safety, business ethics, and environmentalprotection for our supply chain partners.We attach great importance to e?ective communication with suppli-ers and continuously deepen cooperation with them by establish-ing open and transparent communication channels. All suppliersand contractors have signed the "Integrity Agreement" and "LaborCompliance Commitment Letter." Through both online and o?inemeetings, we engage in regular in-depth discussions with supplierson business negotiations, business execution, production and opera-tion conditions, and credit status. This ensures that all suppliers fullyunderstand and comply with requirements outlined in the "SupplierCode of Conduct." By actively practicing responsible supply chainmanagement responsibilities, we collaborate with suppliers to createa fair, transparent, and sustainable business ecosystem.

Responsible Sourcing

We strictly adhere to relevant laws and regulations and haveformulated the "News and Publicity Management Measures"and "New Media Management Measures." We follow theprinciples of "review before release" and "one event, onereview," and implement a strict "three-level review system"for publicity content. We are committed to enhancing themarket in?uence of our brand through the dissemination oftruthful, accurate, and morally appropriate positive informa-tion.

Responsible Marketing

We adhere to a customer-centric approach by implementingmanagement systems such as the "Interim Measures forNegative List Management of Customers" and the "Grey ListManagement Manual" to strengthen credit and risk manage-ment, and enhance our customer management system. Wehave established transparent channels for complaints ande?cient resolution processes, including business liaison,management-level contact, risk control coordination, anddocumentation coordination. Additionally, we providepublicly available contact numbers, emails, and a Chair-man's mailbox to ensure the quality of service to guaranteethat customer complaints and feedback receive prompt andproper responses, fully safeguarding customer rights.

Protection of Customer Rights

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Information Security Management

We strictly adhered to relevant laws and regulations suchas the Cybersecurity Law of the People's Republic of China,and formulated internal management regulations includ-ing the Information Security Management Regulations. Weestablished a clearly de?ned information security manage-ment structure and continuously strengthened informationsecurity management to safeguard network informationsecurity. No information security incidents occurred duringthis reporting period.We have formulated the " Implementation AssessmentSystem of Network Security Management" to enhancesupervision and evaluation of network security manage-ment and ensure e?ective execution of information securitymanagement. Through regular inspections, random checks,investigations, and external audits, we assess the executionof network security policies and control measures, the ful-?llment of network security responsibilities, the handling ofnetwork security incidents, and the e?ectiveness of networksecurity training, and implement corresponding improve-ment measures. Our Digital Management Department linksinformation security work performance to the performanceof each department's employees, incorporating informationsecurity protection into quarterly performance targets for de-partmental sta?. We assess the execution of network securitywork quarterly based on daily work performance and theoverall level of information security protection in positionsand departments.

As the headquarters' responsible department for network security, it is responsiblefor the construction and operation of network security. Every year, it formulates anetwork security implementation plan based on the company's network securitydevelopment strategy and holds regular information security meetings to identifyinformation security vulnerabilities, assign tasks and summarize the outcomes ofregular enhancements in information security.

DigitalManagementDepartment

Network andInformationSecurityLeading Group

CEO serves as the group leader, and the vice president of digital management depart-ment serves as the deputy group leader. Members include leaders of the party com-mittee and the heads in charge of digital construction.The group is responsible for uniformly guiding and coordinating the informationsecurity work of the company and subsidiaries.The members comprise persons in charge of digital construction, heads from theDigital Management Department, and leaders from Xiamen ITG Digital Technology.Network andInformationSecurity O?ce

Serving as a permanent body of the Network and Information Security Leading Group,it is tasked with managing the daily network security operations of the Leading Group.

Subsidiaries

Responsible for the daily construction and operation of information security in eachsubsidiary company.

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Information Security Risk ManagementWe collect feedback from employees on the implementation of information security management systems through surveys, interviews, and other methods. Additionally, we regularly invite external in-dependent cybersecurity experts to assess the rationality and e?ectiveness of our network security management systems to strengthen information security management. We enhance network securityrisk assessment, monitoring, and response through normalized management measures to ensure information security.

Information Security Training

Conducted regular network securitychecks to promptly identify and assessnetwork security risks:

?Daily security checks were performed based on alertsfrom the Security Situation Awareness System, wheresuspected compromised hosts and abnormal attacks werepromptly investigated and handled. Additionally, portalwebsites susceptible to attacks undergone continuoustamper-proof status monitoring and checks, and dailysecurity check reports were submitted accordingly.

?Weekly on-site inspections were carried out by securityservice providers to address risks identi?ed by the SecuritySituation Awareness System, with optimization and improve-ment undertaken based on their recommendations.?Bi-monthly web vulnerability scans were conducted onexternally accessible web site URLs, and any identi?ed high ormedium-risk vulnerabilities were promptly addressed to pre-vent unauthorized exploitation and mitigate risks of networkintrusion and data leakage.?Quarterly host security vulnerability scans were conducted,and the development team was provided with the results fortimely recti?cation of any existing high or medium-risk vul-nerabilities, followed by regular updates on the progress ofvulnerability remediation.

Implemented regular data center andequipment inspections:

?Quarterly security equipment patrols were carried out incoordination with security service providers.?Security equipment con?guration backups were performedat least once per quarter to ensure the security of con?gura-tion data

Conducted regular IT audits:

External agencies were commissioned to audit the information

systems, equipment, as well as the execution and e?ectivenessof information security management systems and contingencyplans.

Executed Critical Network Security ProtectionWork During Key Periods:

?Initiated Sangfor Technologies's Managed Security Serviceduring signi?cant periods such as the 2023 Spring Festival,National People's Congress and Chinese People's PoliticalConsultative Conference sessions, Digital Summit, May Day,Cybersecurity Protection Campaign, and National Day.?Security service providers were commissioned to collaborateon-site to carry out cybersecurity protection work duringother important periods like the Network Security CivilizationConference.

Practice random emergency drills to ensureswift and e?ective response to informationsecurity emergencies:

?Conducted emergency drills for various application systemssuch as the ITG IRSP "Smart Silos Solution", CRM System, HROne-Stop Onboarding System, Enterprise WeChat SessionArchive System, and Datagrand OCR System.?During the arrival of typhoon "Doksuri" in July 2023, theDigital Management Department speci?cally formulated the

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Information Security Emergency Management

We formulate information security emergency plans and clarify the procedures for emergency response to ensurerapid and e?ective handling of such incidents, aiming to minimize losses.

Customer Privacy Protection

We attach great importance to customer privacy protection and strictly manage the collection, use, and storage of custom-er information. Through digitalization, informatization systems, localized information deployment, hierarchical authoriza-tion, internal network management, and other technologies and management methods, we prevent data leakage, misuse,or loss, ensuring that customers' privacy rights are fully respected and protected. During the reporting period, we did notexperience any incidents of customer privacy infringement.

" Typhoon Emergency Response Plan of Data Center ServerRoom", and personnel were assigned for server room inspec-tions and emergency duty.

Organized regular information securitytraining:

?The Digital Management Department collaborated with se-curity service providers and the Human Resources Departmentto conduct network security training courses titled "EnhanceInformation Security Awareness and Build Information Securi-ty Defense Lines" for all employees.?During Network Security Week, articles such as "Build Net-work Security and Strengthen Password and Email Security"were distributed to all employees for intranet publicity.?Through the i- ITG Network Information Security publicaccount, 16 security noti?cation reminders and articles onsecurity knowledge were sent to all employees. Additionally,classi?cation and summarization of frequent phishing andscam email incidents were conducted, and thematic articlessuch as "Tactics of Email Scams" were sent to enhance emailsecurity awareness to ensure that employees have a deepunderstanding of and e?ectively adhere to the regulations andnorms related to information security management, enablingthem to promptly detect and e?ectively respond to potentialinformation security threats.

Established reporting and feedback channels:

Encouraged employees to report any information securityissues to their immediate supervisors or the Digital Manage-ment Department, and monitored daily feedback on networksecurity risks from internal employees.

To ensure the rapid and e?ective implementation of emergency plans, we have established an assessment mech-anism for the execution of security incident emergency response, and organize non-scheduled emergency drillsevery year to continuously improve and re?ne emergency response procedures, ensuring the e?ectiveness andcompliance of emergency response procedures, and continuously enhance the company's ability to respond toinformation security incidents.

InformationSecurityIncidentResponseProcedure

In the event of aninformation securityemergency, it shouldbe immediately report-ed to the emergencyteam. The team leaderwill then initiate theemergency plan basedon the actual situation.

If the emergencyescalates into a majorincident, it should bepromptly reported todepartment heads,and e?ective responsemeasures should betaken in accordancewith the decision in-structions of the emer-gency decision-makingleaders.

After the incident is re-solved, timely analysisand summarizationshould be conducted,and a written reportshould be submitted todepartment heads andunit leaders.

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Guided by the mission of "Integrate Industry to Connect and Create Value to Share" and the corevalues of "Leadership, Responsibility, Hardworking, Partnership," we closely align ourselves withnational strategic planning, respond to the "Belt and Road" initiative, and integrate into the newdevelopment paradigm of "dual circulation". We actively participate in industry innovation and col-laboration, create extensive networking opportunities for industry partners, and strive to become atrusted global industrial partner.

Promote Industry Development

2023 Participation in Industry Associations

China Association for Public Companies Director UnitThe Listed Company Association of XiamenVice President UnitThe Institute of Modern Supply Chain of ChinaFederation of Logistics and Purchasing

Vice Chair UnitChina Customs Brokers AssociationManaging Director UnitChina Chamber of Commerce For Import and Ex-port of Textiles

Director UnitChina Chamber of Commerce of Metals, Minerals &Chemicals Importers & Exporters

Managing Director UnitChina Chamber of Commerce for Import and Ex-port of Light Industrial Products and Arts-Crafts

Director UnitChina Paper Association Xiamen ITG Group Paper-Director UnitXiamen Import & Export Chamber of CommerceVice President UnitXiamen Steel & Iron Trade AssociationVice President UnitXiamen Chamber of International CommercePermanent Vice President UnitXiamen Federation of Modern Supply ChainVice President Unit

2023 Participation in Industry Associations

Xiamen Pilot Free Trade Zone and Customs SpecialSupervision Area Association

Permanent Vice President UnitXiamen Association For Medical DevicesXiamen ITG Group- Vice President UnitXiamen Elderly Care Service Promotion Association

Xiamen ITG Health Technology-Vice Presi-

dent UnitFujian Chamber of Commerce for Medical Equip-ment

Keerun Medical Technology - Vice President

UnitXiamen Health Association

Keerun Medical Technology - Vice President

of the First Council (Supervisory) UnitChina Association For Medical Devices IndustryPanther Healthcare -Association MemberNational Association of Health Industry and En-terprise Management-Hernia and Abdominal WallSurgery Industry and Clinical Research Association

Panther Healthcare-Managing Director UnitPharmaceutical Circulation Professional Commit-tee of Fujiang Pharmacists Association

Xiamen ITG Baokang Medicine Technolo-

gy-Standing Committee Member Unit China Tourist Hotels Association

Sheraton Grand Wuhan Hankou Hotel-Di-

rector UnitHubei Tourist Hotels Association

Sheraton Grand Wuhan Hankou Hotel-Mem-

ber Unit

Honors

Xiamen ITG Group was awarded the "Outstanding Productio-?nance Incubation Base of 2022"

by Dalian Commodity ExchangeITG Petrochemical was approved as one of the ?rst batch of

"Powerful Source for Enterprises" Production-Finance Service Basesby Shanghai Futures Exchange

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From September 18th to 21st, the "Refreshing Fujian,Where Maritimes Silk Road Begins" cultural tourismpromotion event was held in South Africa. Witnessedby the Fujian provincial delegation, Xiamen ITGGroup Co., Ltd. signed an agreement with the SouthAfrican national power company, reaching consensuson jointly promoting the construction of renewableenergy projects, the supply of renewable energyequipment, fostering technology sharing and inno-vation, and advancing comprehensive governance.This agreement will further strengthen cooperationin international trade, warehousing logistics, projectinvestment, and other ?elds related to new energy,promoting the application of new energy, renewableenergy, and clean energy, alleviating South Africa'spower shortage, and enhancing the reliability andstability of the power system.

Highlight"Belt and Road" Initiative:

Cooperation in the New Energy Sectorwith South Africa

In December, Xiamen ITG Group successfully ob-tained approval to serve as a designated deliverywarehouse for lithium carbonate futures. As an activeparticipant in the lithium carbonate futures market,Xiamen ITG New Energy Supply Chain actively coop-erated with Dalian Commodity Exchange in settingstandards before the launch of lithium carbonatefutures, and even became one of the ?rst traders onthe day lithium carbonate futures and options werelisted. Subsequently, it also actively participatedin simulated deliveries, assisted the exchange ininvestor education, and prepared for the smoothimplementation of the ?rst lithium carbonate futuresdelivery.

HighlightParticipation in Standard Settingand Active Involvement in LithiumCarbonate Futures Market

From November 15th to 17th, the 2023 (14th) FerrousDerivatives Summit, jointly organized by the Metallur-gical Industry Branch of China Council for the Promo-tion of International Trade and Shanghai GanglianE-commerce Holdings Co., Ltd, was held in Xiamenwith the Xiamen ITG Group and Fujian Sangang(Group) Co., Ltd., served as the co-host. Xiamen ITGIron Ore BG (Business Group) exploited its industryin?uence and professional service capabilities andbrought together nearly 800 industry elites, includingindustry partners, renowned scholars, and domainexperts, to collectively focus on the developmenttrends of the metallurgical industry and explore thenew prospects for the industry and market underemerging circumstances.

Highlight

Intensi?ed Cooperation in FerrousDerivatives Industry Chain

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Rural Revitalization and Social Contribution

In response to the national call, we uphold the ethos of corporate responsibility as a cornerstone of our state-owned enterprise, with the harmo-nious values of corporate citizenship guiding our direction. We integrate corporate production and operations with societal development by le-veraging our industrial resource advantages, aligning our e?orts with the national development agenda, supporting rural revitalization strategies,and fostering sustainable development across both enterprise and socio-economic realms.

2023 Management ObjectivesPerformance Progress

Position in the agricultural industry chain to support the high-quality development of agriculture andensure national food security, starting with grains and agricultural materials ?elds

Carry out paired assistance work to support the implementation of the national rural revitalizationstrategy

The annual local employee hiring ratio should not be less than60%

The annual organization of volunteer activities should not be less than

events, with a minimum of1,500 volunteer service hours provided

We base our actions on the national developmentagenda, leveraging our industrial resource advan-tages to actively implement various requirementsof the national rural revitalization strategy. Weful?ll our social responsibilities through tangibleactions like industrial revitalization and culturalresurgence, expressing our gratitude to societywith compassion and dedication.

Support RuralRevitalization Strategieswith Industrial ResourceAdvantages

2.3

Achieved In Progress

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Enhance the Agricultural ProductIndustry Chain for National Food SecurityThe agricultural sector is one of the pivotal development focuses out-lined in our company's "14th Five-Year Plan" strategy. Leveraging ourextensive experience in the agricultural industry, our subsidiaries, ITGAgricultural Products and ITG Agriculture and Forestry, have establishedcollaborative partnerships for contract farming in key grain-producingregions such as Northeast China and Inner Mongolia. Through tailoredmodels like "Company + Base + Farmers" and "Enterprise + Cooperative+ Base + Farmers," ITG Agricultural Products has forged agricultural pro-duction alliances with professional cooperatives and joint societies. Byestablishing mechanisms that align interests with farmers, ITG Agricul-tural Products has streamlined the entire supply chain—from seedlingcultivation and planting to procurement and processing—e?ectivelyaddressing the challenge of "production without market access" foragricultural products while ensuring the quality and quantity of raw ma-terials required for production. Additionally, ITG Agricultural Productshas formed a dedicated grain procurement team, engaging deeply withlocal farmers in Northeast China's grain-producing heartlands, conduct-ing comprehensive market assessments, and upholding a "no price sup-pression, no bargaining" policy to safeguard farmers' interests. Throughthe industry support and sales empowerment initiatives, the companyis bolstering local grain production and income, enabling farmers tomarket their products domestically and internationally, supporting thesmooth functioning of domestic and global grain markets, and contrib-uting to the stability of the domestic grain industry supply chain andfacilitating unimpeded import and export ?ows.

Our subsidiaries, such as Xiamen ITG Tidak Logisticsand Heilongjiang Runda Xiangyun Logistics, aligntheir services closely with the rural revitalizationstrategy. They establish an industry chain layoutencompassing "agricultural production areas-lo-gistics bases-direct sales cities," aiming to enhancetransportation e?ciency, ensure product quality,and meet customer demands.Purchase corn and rice in major grain-producing areassuch as eastern Inner Mongolia and northeasternChina. The grains meet the national storage standardsafter undergoing drying, moisture-proo?ng, and pestcontrol operations. This not only ensures local grainsupply and contributes to national grain reserves butalso addresses the issue of di?culty in drying wetgrains, thereby promoting increased income for farm-ers.Grains collected and stored locally are mainly utilizedfor feed processing and transported to enterprises na-tionwide through various means such as automobiles,railways, and vessels, to ensure the supply of rawmaterials for the breeding industry across the country.

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Paired Assistance for RuralDevelopmentWe have established relationships of paired assistancewith Xishan Village in Xinmin Street, Tong'an District,Xiamen, Fujian Province. We are actively exploring newmodels for state-owned enterprises to empower ruralrevitalization, solidly advancing the assistance work forvillages with relatively weak collective economic income.We delve into the industrial advantages and developmentpotential of Xishan Village, aiming to stimulate the initia-tive, enthusiasm, and creativity of villagers by analyzingresource endowments and re?ning assistance needs,thereby activating the endogenous vitality of the collectiveeconomy in Xishan Village. During this reporting period,the Labor Union procured agricultural products from localregions of Pengyang County, Jingyuan County, and Min-ning Town in Ningxia, Zuogong County in Tibet, JimusaerCounty in Xinjiang, and Pingnan County in Fujian, with thetotal amount exceeding 1 million RMB.

Secure Stability in Supply and Pricingwithin the Silicon IndustryIn 2023, with the advent of the rainy season, market supply rapidlyincreased due to a temporary downturn in downstream demand andhigh social inventories. Consequently, the price of industrial siliconexperienced a rapid decline. Most smelting enterprises in Yunnan andSichuan chose to delay their planned start-ups. We initiated the useof futures risk management tools in our industrial silicon smeltingplant in the Nujiang region of Yunnan, leading neighboring factoriesto actively sell forward production capacity. This action e?ectivelylocked in pro?ts from production during the rainy season, resultingin an overall operational rate of over 90% for enterprises in the Nuji-ang region of Yunnan during the peak water period. It ensured stableproduction during the rainy season and secured the stability of theentire supply chain in the industry.

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We ?rmly believe that the prosperity of our business is intri-cately linked with the well-being of the cities and communi-ties where we operate. In our pursuit of sustainable businessgrowth, we actively engage with urban and communitystakeholders to support local employment, urban economicdevelopment, and improvements in health and education,thus creating a more vibrant and ful?lling urban life.We actively adhere to the requirements of the United Na-tions Sustainable Development Goal 11 (Sustainable Citiesand Communities) by formulating the "Community Policy,"committing to building positive community relations, andrespecting the rights and cultural diversity of indigenouspeoples. We are dedicated to supporting local communitiesin areas such as healthy living, equitable healthcare, qualityeducation, digni?ed employment, volunteer services, chari-table relief, rural revitalization, and sustainable urban devel-opment, to foster the prosperity and development of localcommunities.We have established a dedicated department responsiblefor community communication, receiving and addressingfeedback and complaints from the local community to buildmutually bene?cial community relationships. We conductcommunity risk assessments in our business developmentto minimize any negative impacts on the local community,integrating community development considerations intoinvestment project planning. For instance, we ensure therespect and protection of rights of indigenous communities,their cultural customs, and heritage before investment.

Promote Health andEducation, Support UrbanSustainable Development

"Flying Love and Dream" Public Welfare BrandIn 2005, we established the "Flying Love and Dream" public welfare brand, focusing on carrying out public welfare activities to care for thehealthy growth of adolescents and children, and launched the cartoon image "AMO" for the public welfare brand. Over the past 19 years,the footsteps of "AMO" have spread across cities and villages in Xiamen and surrounding areas, delivering care to rural left-behind children,urban migrant children, and special groups of adolescents and children.

In 2023, the "Flying Love and Dream " public welfare brandresponded to the call of "Love Xiamen" and launched the"Flying Love and Dream Charity Sale- Passion for Natureand Dreams for Future" exhibition on the 33rd "NationalDisability Day". The exhibition showcased oil paintingsand handicrafts created by students from Xiamen SpecialEducation School for a charity sale.On the occasion of the International Children's Day in2023, the "Flying Love and Dream " public welfare brandjourneyed to Hainan, collaborating with the XingyanSpecial Education Center in Qiongshan District, HaikouCity, for the charity event of "Children's Hearts Unite withLove and Dreams Take Flight". Our employees in Hainanbrought supplies to the special education center andcomfort to children with autism. Engaging in activities likeorigami and painting together with the "Children of theStars," they illuminated the children's spirits, with the glowof goodwill candles mingling with the hopeful sparkle ofstars.

HighlightFlying Love and Dream Charity Sale

关于本报告董事长致辞2023年可持续发展荣誉环境社会员工创新驱动、供应商与客户乡村振兴与社会贡献公司治理

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Urban Health andWell-beingCollective Wealth, Leading withHealth. With the exacerbation of urbanpopulation aging and the increasingawareness of residents' health, thedemand for the health and elderlycare industry is also growing rapid-ly. Our health technology businessfocuses on the core medical deviceindustry, synergizing with three keysupporting industries: elderly careservices, medical and health big data,and health services. We continue touphold the mission of "Technologyand Care Enrich life with Health andHappiness," actively responding to thecall for "Healthy China," and promot-ing medical technology innovation byconstructing a large health industryecosystem. This helps to facilitatethe construction of urban health andelderly care service systems and im-prove social well-being.

Our subsidiary Xiamen ITG Elderly Care Industry Co., Ltd. (ITG ElderlyCare) innovates elderly care service model and explores the mar-ket-oriented "property + elderly care" service. Through high-stan-dard project con?guration and standardized operation concepts,it provides diversi?ed, high-quality services for the elderly in thecommunity, including day care, respite care, health management,public welfare meals, cultural and recreational activities, and policyconsultation. It aims to become a nearby elderly care center inte-grating functions such as smart elderly care, health management,daily living assistance, spiritual and cultural enrichment, and elderlyvolunteer assistance, dedicated to ensuring that every elderly personenjoys a healthy and happy life in their later years.

According to statistics, falling is the leading cause of injury amongelderly people over 65 in China. On average, 3 to 4 out of every 10elderly individuals over 65 have experienced a fall, with more thanhalf of these falls occurring at home, especially in the bathroom andtoilet, typically when getting up or squatting down. In 2023, ITG El-derly Care initiated the "Yellow Handrail" program for the age-friend-ly renovation of daily living facilities, providing home age-friendlyrenovation services in Jinlin and Hubian communities. The companyinstalled yellow handrails free of charge for 25 elderly individualsliving alone, reducing safety hazards for indoor walking, bathing, andtoileting, and improved the living environment for elderly individualsat home.

Innovation of Elderly Care Service "Yellow Handrail" Initiative

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Cardiovascular Hospital Xiamen University granted our company the title of "Best Volun-teer Service Team."In 2023, our employee volunteers went to Houbu Public Welfare Library in Huli District toorganize a public welfare event on children's health education and donated a series ofbooks. We invited medical experts to provide professional guidance on the prevention andemergency treatment of common childhood illnesses on-site.

In 2023, leveraging our business advantages in the ?eld of health technology, we conductedover 20 medical consultations in communities such as Jinlin, Jinhai, Wutong, and HaicangStreet's elderly care service center in Xiamen. Through a combination of traditional Chineseand Western medical therapies, physical examinations, and rehabilitation guidance, weprovided the public with diagnosis and treatment plans, as well as consultations on dailyrehabilitation and health care knowledge.Since signing a co-construction agreement with Xiamen Cardiovascular Hospital XiamenUniversity in 2020, we have consistently organized volunteers to provide convenient guid-ance services at the hospital during the weekend, directing patients to medication pickupand registration, as well as o?ering on-site consultation services. For this purpose, Xiamen

Public Health Services

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Boost School-EnterpriseCooperation withMore Local JobOfferingsWe closely track developments in thejob market and regard local employ-ment needs as a key considerationin our talent recruitment process,striving to generate more high-qualityjob opportunities locally and ful?llgreater social responsibilities. Duringthe reporting period, the proportionof locally hired employees in our com-pany was approximately 63.54%.We adhere to the concept of "bringingin and going out" in university-enter-prise cooperation, advocate collabo-ration with local universities to jointlypromote the coordinated cultivationof talents in enterprises, universities,and research institutions, and facili-tate the development of local youngtalents.

We collaborate with Zhongnan University of Economics andLaw to implement the Supply-Demand Matching Employmentand Education Project, establishing a joint educationalplatform between the university and the enterprise. Weorganize expert personnel to serve as career mentors foruniversity students and use the ITG major experimental classas a pilot. The initiative involves bringing enterprises into theclassroom through a combination of "o?ine + online" methods,creating a talent cultivation model that integrates "economics,law, and management" with a combination of "theory andpractice." Through organizing a series of commercial planningcompetitions and lectures on career planning and employmentguidance, the project provides students with opportunitiesfor social practice, corporate visits, and internships. This jointuniversity-enterprise initiative cultivates potential talents andhelps students with career positioning and planning. ZhongnanUniversity of Economics and Law organizes teachers andstudents to visit the Xiamen ITG Group to participate in an OPENDAY event, deepening the "co-education of talents" throughface-to-face interaction and cooperation between the schooland the enterprise. During the collaboration period, we hostannual campus recruitment events. Over the past two years, atotal of

graduates from Zhongnan University of Economicsand Law have joined usthrough campus recruitment.

HighlightSupply-Demand Matching Employment andEducation Project by the Ministry of EducationITG Resources (Singapore) regards social responsibility as a pivotal element inits growth strategy. By closely partnering with the Singaporean government,the company facilitates cooperation between school and enterprise, o?eringinternships, training programs, and employment opportunities to local col-lege students, assisting them in successfully transitioning into the workforce.Furthermore, the company is committed to localization, with a high percentageof local employees and salary packages aligned with Singaporean regulations,fostering a strong sense of job security and cohesion among its workforce.These endeavors not only inject vitality into the company itself but also createadditional avenues for employment and development within Singaporean so-ciety, making signi?cant and sustained contributions to the country's economicprosperity and social stability. As of 2023, approximately 90% of the workforceconsists of local employees, with 13 local employees recruited during the year.In 2023, the company also participated in career fairs at the National Universityof Singapore and Nanyang Technological University, and collaborated withboth institutions to host inaugural corporate presentations which attractednearly a thousand students.

Highlight

University-Enterprise Cooperation with SingaporeanUniversities

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Leveraging its extensive expertise in commercial ship management, Xiamen ITG Shipping, a subsidiary of the Xiamen ITG Group, o?ers vessel management and operational services for theoceanographic research vessels "TAN KAH KEE" of Xiamen University and "ZHONG SHAN DA XUE" of Sun Yat-sen University. From ship construction, engineering maintenance, and managementmechanism establishment to meteorological services, shore-based support, and vessel maintenance, Xiamen ITG Shipping delivers premium services to ensure the smooth operation of oceano-graphic research, thereby supporting China's marine scienti?c research e?orts and maritime power construction.

HighlightTeam up with Xiamen University and Sun Yat-sen University to Provide Professional Ship Management Services for University OceanographicResearch Vessels

"Since the inception of the planning for the construction of the scienti?c research vessel atXiamen University, Xiamen ITG Group has maintained close communication with us, provid-ing necessary assistance and support in shipping technology and shipbuilding supervisioninformation. Xiamen ITG Group, through its subsidiary Xiamen ITG Shipping , has beeninvolved in the daily management of the 'TAN KAH KEE' research vessel, contributing to thedevelopment of a high-level crew talent pool and the 'TAN KAH KEE' vessel managementsystem. Over the years, they have provided strong support for marine scienti?c researchwith their high-quality services. We look forward to further strengthening the collaborationbetween our center and Xiamen ITG Group, leveraging each other's strengths to advanceChina's marine scienti?c research to new heights."— Wang Haili, Director of the Xiamen University Research Vessel Op-

erations Management Center

"The 'ZHONG SHAN DA XUE' is the ocean comprehensive scienti?c research training vessel with the largestdomestically designed displacement, the strongest comprehensive scienti?c research performance, andthe most innovative design highlights, equipped with the ability to conduct multidisciplinary, multisourceobservations, 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 forthe ' ZHONG SHAN DA XUE,' consistently integrating the concepts of greening and intelligent ship construc-tion to ensure the safe and e?cient operation of the vessel, successfully completing various marine scien-ti?c research missions. In the future, the Sun Yat-sen University Marine Science Exploration Center will workmore closely with the management team, continuously explore and promote the green, digital, and intelli-gent transformation of ship management, provide strong support for the high-quality development of SunYat-sen University's marine cause, and demonstrate greater responsibility and contribution in serving thecountry's major development strategies."— Wu Haiming, Deputy Director of the Sun Yat-sen University Center of Ocean

Expedition

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In 2023, we collaborated with theJinlin Community in Xiamen to or-ganize the "Urban Life ExperienceSummer Camp." Led by companyvolunteers, children from the com-munity visited the Fire Scienceand Technology Education Centerfor experiential education, whichenhanced children's interactionwith their living environment,further improved urban life skills,and stimulated children's enthusi-asm for learning and exploration.

HighlightUrban Life Experience Summer Camp

Volunteer Activities for PublicWelfareWe advocate for a culture of public welfare and contributeto our local communities and society by regularly organizingvolunteer service activities such as cleaning neighborhoods,tra?c guidance, legal education and publicity, safety aware-ness training, tree planting, blood donation, and exhibitionservices. During this reporting period, we organized a total of87 volunteer service activities, with 420 participants contrib-uting a combined total of 1,605 hours of voluntary service.

volunteer serviceactivities

participants

1,605of voluntary service

hours

Volunteers of XIAMEN ITG Group visited the Jiangtou Community and Meiren Community in Xiamen City to guide participants, distributematerials, and maintain order during festival activities.

Sustainability-Related Governance MechanismsAnti-Commercial Bribery and Anti-Unfair Competition

3.1

3.2

Governance

2023 Economic Impact

Total Assets

113,126.80

million RMBOperatingrevenue468,246.88million RMBNet pro?tattributable toshareholdersof the parentcompany

1,914.87

million RMB

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Sustainability-RelatedGovernance MechanismsAnti-CommercialBribery and Anti-UnfairCompetition

Appendix

Sustainability-RelatedGovernance Mecha-nisms

3.1

We integrate the concept of sustainable development into thecore and development of our enterprise. By embodying the ESGprinciples in our governance practices, we continuously enhanceour corporate governance mechanisms and improve our man-agement capabilities in various sustainable development issuesto drive forward the sustainable development of our company

2023 Management GoalsCompletion Status

No incidents of con?icts of interest

To strengthen and revise sustainable development policies in accordance with the needs ofbusiness development

To publish the 2023 ESG report by May 2024

We have established a standardized, scienti?cally structured, op-erationally e?cient, and clearly delineated corporate governanceframework comprising the Shareholders' Meeting, the Board ofDirectors, the Board of Supervisors, and the Management Teamto ensure e?ective checks and balances within the company. Wehave established and improved an internal institutional systembased on the Company's Articles of Association, de?ning theresponsibilities and authorities of the Shareholders' Meeting,the Board of Directors, the Board of Supervisors, and the Man-agement Team. We strictly adhere to relevant laws, regulations,regulatory rules, and internal regulations, standardizing proce-dures for convening, holding, and voting at shareholders' meet-ings. We fully respect and treat all shareholders equally, ensurethat all shareholders can fully exercise their right to information,participation, voting, and supervision over major company mat-

ters, and e?ectively safeguard the rights and interests of minorityshareholders.As the company's decision-making body, the Board of Directorsdiligently ful?lls its duties in accordance with relevant laws,regulations, regulatory rules, and internal regulations, and isaccountable to the shareholders' meeting. The Board of Directorsestablishes six specialized committees including the Strategy andSustainable Development Committee, the Risk Control Commit-tee, the Compensation and Appraisal Committee, the BudgetCommittee, the Nomination Committee, and the Audit Commit-tee, which provide professional advice for the Board of Directors'decision-making processes. Among these committees, a majorityof independent directors serve as chairpersons in three commit-tees, all of which are composed of independent directors.

Governance Structure

Achieved In Progress

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The Board of Directors establishes a Strategic and Sustainable Development Commit-tee, responsible for researching, proposing recommendations, and tracking evalua-tions on our company's sustainable development, as well as the strategic objectivesconcerning environmental, social, and governance (ESG) factors. The Strategy andSustainable Development Committee, along with other specialized committees suchas the Risk Control Committee, Audit Committee, and Compensation and AppraisalCommittee, collectively guide the company's sustainable development e?orts. Theysupervise and facilitate the e?ective implementation of relevant initiatives to ensurethat our ESG strategies are fully integrated into daily operations.

Board ofSupervisors

Shareholders'Meeting

Board ofDirectorsManagementTeam

Risk Control CommitteeStrategic and SustainableDevelopment Committee

Remuneration andAppraisal CommitteeBudget CommitteeNomination CommitteeAudit Committee

Our sustainabledevelopment policiesCode of Business ConductSupplier Code of ConductEnvironmental Protection PolicyLabor Rights Protection PolicyCommunity Policy

During the reporting period, we convened a totalof 19 Board of Directors meetings, deliberatingon 87 proposals. Additionally, we held 21 boardcommittee meetings, discussing 41 proposals.One independent director meeting was convened,addressing one proposal. Independent directorsprovided independent opinions on signi?cantmatters 19 times. Our Board of Directors wasrecognized for its scienti?c, professional, and ef-?cient governance practices, and was selected asa "Best Practice Case of Listed Company Boardsof Directors" by the China Association for PublicCompanies in 2023. We were also honored withthe "Best Board of Directors" title in the "GoldPrize of Round Table" of Chinese Boards of ListedCompany by the Magazine "Board of Directors"and were recognized as the "Best Board of Direc-tors of Listed Companies" in the 13th PrestigiousCharts of Chinese Listed Companies by the Na-tional Business Daily.1987

4121

China Association for Public Companies"Best Practice Case of Listed Company

Boards of Directors"in 2023Magazine "Board of Directors"the "Gold Prize of Round Table" ofChinese Boards of Listed Company"Best Board of Directors"National Business Dailythe 13th Prestigious Charts of Chinese

Listed Companies"Best Board of Directors of Listed

Companies"

Board of Directorsmeetings

Board committeemeetings

Independentdirector meeting

Independent directors provid-ed independent opinions onsigni?cant matters

proposals

proposals

proposal

times

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Selection and Appointment of Directors andSenior Management

Diversity and ProfessionalismThe Board of Directors consists of nine members with diverse gender and age representation,encompassing various professional backgrounds including economics, law, management, ?nance,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 ?elds. Additionally, over 50% of thedirectors hold doctoral degrees. The professionalism and diversity of the board members providevital assurance for the board's informed decision-making.Our senior management team boasts expertise in diverse ?elds such as economics, accounting,and business administration, with extensive experience in corporate management, ?nancial man-agement, and risk management. Additionally, our senior management team includes two femaleexecutives, representing 40% of the team.

350%

We actively promote the diversi?cation and professionalization of the Board ofDirectors and management team, ensuring continuous enhancement of the compa-ny's governance standards. To ensure the fairness and transparency of the nomina-tion and appointment procedures for directors and senior management, our Com-pany's Articles of Association and the Nomination Committee Implementation Rulesclearly de?ne the nomination and election processes. The Nomination Committeeis responsible for advising the Board on matters concerning the composition of theBoard 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-tors provide independent and unequivocal assessments of the legality and compli-ance of procedures related to the nomination or dismissal of directors, as well as theappointment or dismissal of senior management, and express their opinions afterassessing these procedures. Director candidates are presented to the shareholders'meeting for voting after approval by the Board of Directors, while senior manage-ment are appointed upon approval by the Board of Directors.

independentdirectors

of the directors holddoctoral degreesover

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Appendix

NamePositionAge

Professional CompetenceBoard Committees

Attendance

（Boardmeetingsand Boardcommitteemeetings）Industry Experience

Operations Manage-ment

Risk Controland Compliance

Financial Accounting

Strategic andSustainableDevelopmentCommittee

Risk ControlCommittee

RemunerationandAppraisalCommittee

BudgetCommittee

NominationCommittee

AuditCommitteeGao Shaoyong(Male)

Chairman51100%Xu Xiaoxi

(Male)

Director54100%Wu Yunxuan

(Female)

Vice Chairman51100%Xiao Wei(Male)

Director58100%Zeng Yuan(Male)

Director42100%Zhan Zhidong(Male)

Director49100%Liu Feng(Male)

Independent Director57100%Dai Yiyi(Male)

Independent Director56100%Peng Shuijun(Male)

Independent Director48100%Cai Yingbin(Male)

CEO44/Fan Dan(Female)

Vice President andBoard Secretary

50/Yu Lijie(Female)

Vice President andCFO

48/Wang Xiaofeng

(Male)

Vice President53/Wang Yongqing(Male)

Vice President43/

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We prioritize the continuous enhancement of the perfor-mance capabilities of directors, supervisors, and senior man-agement. Regularly, we provide the latest regulatory rulesissued by the China Securities Regulatory Commission andStock Exchanges to directors, supervisors, and senior man-agement for learning purposes. Additionally, we proactivelyarrange them to training sessions on new regulations andduties hosted by stock exchanges, associations, and externalinstitutions, to continually improve the company's standard-ized operations management. To enhance the professionalknowledge and performance capabilities of directors, seniormanagement, and relevant department sta? in ESG areas andconsistently improve our ESG management level, in 2023, weinvited external professional institutions to conduct trainingon the theme of "ESG and Long-Term Value Creation for En-terprises". This training covered the topics of the importanceof ESG construction and information disclosure, the method-ology for implementing ESG initiatives, and the case studiesfrom world-class companies. During this reporting period,a total of 51 directors, supervisors, and senior managementparticipants joined in varied professional training sessions.

Compensation of Director and Senior ManagementThe Remuneration and Appraisal Committee is responsible for reviewing and examining the compensation policies and assess-ment schemes for directors and senior management, as well as supervising the implementation of compensation systems andassessment processes. In accordance with the Company's Articles of Association and the Implementation Rules of the Remuner-ation and Appraisal Committee, the compensation plan for directors is proposed by the Remuneration and Appraisal Committee,approved by the Board of Directors, and then subject to review and approval by the shareholders' meeting before implementa-tion. The compensation schemes for senior management are proposed by the Remuneration and Appraisal Committee, subject toreview and approval by the Board of Directors before implementation.The compensation for independent directors is provided in the form of allowances, while the Chairman of the Board and seniormanagement are subject to an annual salary system. We have established the "Chairman and Senior Management Compensationand Performance Management System" to clearly de?ne matters related to the compensation and performance management ofthe Chairman and senior management. The compensation structure for the Chairman and senior management comprises twoparts: basic annual salary and performance-based annual salary. It employs a comprehensive evaluation method that benchmarksoperational 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 toparticipate in the welfare programs established by the company for union members, and upon reaching the statutory retirementage, they may receive pensions according to regulations upon retirement.

directors, supervisors, and senior man-agement participantsjoined in varied professional trainingsessions

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Equity Incentive

To e?ectively align the interests of shareholders, the company, and key manage-ment personnel, and to achieve sustainable development, we have implementeda Restricted Stock Incentive Plan to provide equity incentives to the directors andsenior management of the company. As of the end of this reporting period, thedirectors and senior management have been granted a total of 4,815,000 restrictedshares, accounting for 0.22% of the total share capital of the company. Among them,1,217,700 shares have been released from restrictions, accounting for 0.06% of thecurrent total share capital of the company.

NamePosition

Shares held at thebeginning of the year

（share）

Shares held at theend of the year（share）Gao ShaoyongChairman860,000860,000Xu XiaoxiDirector00Wu YunxuanVice Chairman780,000780,000Xiao WeiDirector00Zeng YuanDirector200,000200,000Zhan ZhidongDirector00

Liu FengIndependent Director00Dai YiyiIndependent Director00Peng ShuijunIndependent Director00Ma Chenhua

Chairman of Board ofSupervisor

Su YiSupervisor00Zeng Jian

Employee Representa-

tive Supervisor

Cai YingbinCEO780,000780,000Fan Dan

Vice President andBoard Secretary

780,000780,000Yu LijieVice President and CFO350,000350,000Wang XiaofengVice President550,000550,000Wang YongqingVice President575,000575,000

Granted4,815,000restricted shares

Released1,217,700shares from restrctions Clawback Mechanism

While constructing a competitive compensation system for directors and seniorexecutives, we have also established a corresponding clawback mechanism. Spe-ci?cally, 70% of the performance-based annual salary for the Chairman and seniormanagement personnel will be settled and paid based on the results of the annualassessment 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 assessmentperiod ends. In cases where the Chairman or senior management personnel arefound to engage in illegal or improper conduct, mismanagement, ?nancial misrep-resentation, signi?cant safety or quality incidents, major environmental pollutionincidents, serious disciplinary violations, legal disputes, or any other circumstancesthat result in negative impacts or losses to the company, corresponding deductionsfrom performance-based compensation will be made in accordance with internalconstraint mechanisms such as clawback requirements.

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Related-party Transaction

Conflicts of Interest

To standardize corporate related-party transactions, we have formulated the "Related-PartyTransaction Management System," which provides clear provisions on the types of relat-ed-party transactions, pricing principles, decision-making procedures, and information dis-closure. During the reporting period, we revised and improved the aforementioned matters.We strictly adhere to relevant laws and regulations as well as the requirements of the "Relat-ed-Party Transaction Management System," ful?lling the related-party transaction approvalprocedures. Independent Directors express independent opinions before submitting themto the board of directors for review. Related parties abstain from voting during board ofdirectors and shareholders' meeting deliberations to ensure that related-party transactionsare fair, just, transparent, and equitable, thereby fully safeguarding the interests of minorityshareholders.

As stipulated in the Company's Articles of Association, directors, supervisors, and seniormanagement personnel have a ?duciary duty to the company. Without the consent ofthe shareholders' meeting, they are not allowed to exploit their positions for their own orothers' bene?t by seeking business opportunities that rightfully belong to the company orengaging in self-operated businesses or similar ventures to those of the company. It is theresponsibility of our directors, supervisors, and senior management to report any con?ictsor potential con?icts of interest with the company's interests and to comply with the rele-vant laws, regulations, and internal procedures, ensuring that each director, supervisor, andsenior management personnel can perform their duties without being in?uenced by anycon?icting interests arising from other positions, activities, or relationships.

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We fully respect and treat all investors equally. We have establishedthe "Investor Relations Management System" and strictly adhereto relevant laws and regulations, as well as internal managementsystems such as the "Information Disclosure A?airs ManagementSystem," "Information Disclosure Deferral and Exemption BusinessManagement System," "Corporate Bond Information DisclosureA?airs Management System," "Signi?cant Information InternalReporting System," and "External Information User ManagementRegulations." We have established e?ective communication chan-nels that satisfy requirements such as the scope and timing ofinformation disclosure outlined in the aforementioned systems.We have also implemented strict con?dentiality mechanisms andful?lled our information disclosure obligations through appropri-ate channels. This ensures that company information is disclosedtruthfully, accurately, completely, timely, and fairly to investors andother relevant stakeholders, enabling them to timely understandthe company's situation and safeguarding their rights and interests.We have strengthened communication with investors and en-hanced their understanding of the company by establishing aninvestor relations management mechanism and employing diversecommunication methods to ensure that investors can exercise theirrights fully. The Securities Department of the company, serving asthe functional department for investor relations management, han-dles the daily a?airs in this regard. During the reporting period, wereceived an A-class acknowledgement from the Shanghai Stock Ex-change for 2022-2023 annual information disclosure. We were alsoselected as the "2022 Best Practice for Annual Performance Brief-ing" by the China Association for Public Companies. Furthermore,our Securities Department was honored as the "2023 Best PracticeCase for BOD O?ce of Listed Companies " by the China Associationfor Public Companies.

Investor RelationsInvestor hotline and investor email

Institutional investor conferences

WeChat o?cial account, video platform, and othermedia platforms

Performance brie?ngs and investor reception days

Establishment of extensive and multi-level mediamatrixProvided frequent and multi-angle coverage of the com-pany's business dynamics and key projects, such as timelyreleases of easy-to-understand "Fast Fact of Annual Report (inboth Chinese and English)" and " Fast Fact of ESG Report (inboth Chinese and English)."

Participated in investor reception days in Xiamen jurisdictionin 2023, hosting three performance brie?ngs, and was select-ed for the "Best Practice for Annual Performance Brie?ng"among listed companies in 2022.

01.In 2023, participated in national-level exhibitions such asthe China International Import Expo, Supply Chain Achieve-ments Exhibition, China International Supply Chain Promo-tion Expo, China International Consumer Products Expo, andThe China Import and Export Fair to showcase the company'sdevelopment strategy and business highlights in "industrial-ization, internationalization, and digitization" to the market.02.Media such as Xinhua News Agency, Xinhua Net, People'sDaily, People's Daily Online, CCTV News, and National Busi-ness Daily conducted in-depth analyses of the company'sbusiness model through media interviews and feature ?lms.Also, introduced the company's typical business projects inmarkets along the "Belt and Road" initiative on the occasionof the tenth anniversary of the initiative to create a positivebrand e?ect.03.Conveyed the company's business value to the marketthrough public roadshows and media live broadcasts.

Received over

calls on the investor hotlineResponded to over

inquiries from investors on theE-interaction platform

Participated in nearly

institutional investor conferences

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We stick to the guidance of Xi Jinping Thought onSocialism with Chinese Characteristics for a New Era,uphold the overall leadership of the Party, and focuson the principal task of "A better-quality and high-ef-?ciency." We implement the action plan to pursueexcellence by deep learning, bold leadership, andpractical e?orts while integrating Party building workwith corporate operations, planning, deployment,advancement, and assessment. By empowering busi-ness with top-tier Party building, we aim to pave theway for the company's high-quality development.During this reporting period, our Party committeehas fully leveraged its leadership role of " Set theright direction, keep in mind the big picture, ensurethe implementation of Party policies and principles",and formulated the "List of Annual Exercise Respon-sibilities of the full and strict governance over theParty in 2023," further re?ning the responsibilities ofmembers of the Party committee. In conjunction withthe actual situation of the enterprise, we revised thesystem concerning issues of "Major decision-mak-ing, Major personnel appointments and dismissals,Major project investment decisions, and Large FundUtilization" and the list of pre-research matters ofthe Party committee to e?ectively ensure the unity ofthe Party's overall leadership and the improvementof corporate governance, continuously enhancingthe level of scienti?c decision-making and corporategovernance.

We perfect our comprehensive risk management system in accordance with our corporate development plan, enhancing our risk preventioncapabilities and risk management levels through risk identi?cation, monitoring and early warning, risk review, and response, thereby ensuringstable operations. A risk management framework led by the Board Risk Control Committee, with subsidiaries and functional departments servingas three lines of defense, has been established. This framework operates in coordination to manage all types of risks associated with our opera-tions comprehensively and e?ectively. The Board Risk Control Committee consists of ?ve directors with expertise in risk management. It super-vises and guides our risk management e?orts through assessing potential signi?cant risks to the business, analyzing and summarizing signi?cantrisk events that have occurred, and conducting comprehensive inspections and risk assessments of the operating situation.

The Party DevelopmentEndeavors

Risk Control and Compliance

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Centralized RiskControl

LineManagement

LineManagement

Supervision andGuidance

Risk Controland ComplianceDepartment

Supply ChainOperationsDepartment

FinanceDeparmtnet

OtherFunctionalDepartment

Chief LegalAdvisor

Chief FinancialO?cer

Leaders in Charge ofFunctional Areas

Leaders in Charge ofBusiness Segments

Deputy GeneralManager for RiskControl

Subsidiary Operations

Department

Subsidiary FinancePersonnelSubsidiary OtherFunctional Personnel

General Manager

Subsidiary BusinessDepartments

Researches on macro and systemic risks, proposes risk preferences and risk tolerancelevel, and determines the overall risk tone.

Risk Control Committee

Executive Body

Auditing

SupervisionAudit DepartmentChairman

Supervision O?ceDiscipline Inspection Secretary·Enterprise Risk Management Framework

Audit Department:

Deploys audit supervisionfunctions to urge subsidiaries to implement risk con-trol management requirements.Supervision O?ce:

Prevents integrity risksthrough disciplinary inspection and supervisionfunctions.Risk Control and Compliance Depart-ment:

Acts as the executive body of the Risk ControlCommittee and is the centralized department forcompany risk management.Supply Chain Operations Department:

Servesas the business risk management department, ap-pointing and evaluating the performance of subsidi-ary operations managers and personnel.Finance Department:

Manages ?nancial risksand directly oversees subsidiary ?nancial personnel.Other Functional Departments:

Handle otherrisk management areas, such as capital risk, HR risk,etc.Deputy General Manager of Risk Control:

Subsidiary personnel responsible for overall busi-ness risk management.Subsidiary Operations Department:

Frontlinerisk control personnel in operations, appointed bythe Operations Department and evaluated for per-formance.Subsidiary Finance Personnel:

Frontline ?nan-cial risk control personnel, directly managed by theFinance Department.Subsidiary Other Functional Personnel:

Frontline personnel controlling other risks, directlymanaged by the subsidiary's management teamwith oversight and guidance from the headquarters'functional departments.

HeadquartersSubsidiaries

RISK

Third DefenseLine

Second Defense Line

First Defense Line

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We have formulated various risk management-relatedregulations and systems, including the "Risk IndicatorMonitoring and Management Regulations," "InterimMeasures for Customer Negative List Management," aswell as internal management documents such as the"Internal Control Manual," "Risk Management and Inter-nal Control Matrix," and "Classi?ed Risk Early WarningIndicators Table." Functional departments have alsointegrated risk management requirements into variousfunctional management systems, covering ?nancial risk,operational risk, legal risk, safety risk, and other typesof risks closely related to our operations and manage-ment, forming a comprehensive and executable riskmanagement system. During this reporting period, werevised system documents such as the "Risk IndicatorMonitoring and Management Regulations," "Guidelinesfor Handling Signi?cant Risks in Supply Chain Business,"and "Legal Dispute Case Management Measures," furthersolidifying the foundation for compliant operations froma system perspective.

The ?rst defense line con-sists of subsidiary businessdepartments and otherfrontline functional de-partments and personnel,responsible for identifying,assessing, and respondingto risks during our businessoperations.

The second defense line includes our headquarterrisk management functional departments, amongwhich the Risk Control and Compliance Departmentserves as the centralized risk management depart-ment. The Risk Control and Compliance Departmentis responsible for collaborating with the SupplyChain Operations Management Department, FinanceDepartment, and other functional departments toestablish and maintain comprehensive and multi-dimensional risk management policies and proce-dures, and report to the Board Risk Control Commit-tee. A non-executive director with risk managementexperience has been appointed as the company'sChief Legal O?cer to provide professional supportfor risk management and compliance a?airs. TheChief Legal O?cer oversees the Risk Managementand Compliance Department of the company.

The third defense line consists of oursupervisory inspection functional de-partments, including the Audit Depart-ment and the Supervision O?ce, ledby the Chairman and the DisciplineInspection Secretary, respectively.They are responsible for conductingindependent inspections of the e?ec-tiveness of our risk management pro-cesses, urging responsible parties torectify discovered issues to ensure thee?ective implementation and timelyimprovement of risk management.The Audit Department also regularlyreports the results of supervisoryinspections and the urging of recti?ca-tions to the Board Audit Committee.

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Risk IdentificationWe follow the COSO "Enterprise Risk Management Frame-work" and integrate our operational management andbusiness realities, identify our principal risks. We assess thespeci?c risk levels associated with the main risks, determinethe corresponding control measures, types, frequency, andrelated responsible departments, and formulate the corre-sponding risk inventories. This process results in the creationof a risk management and internal control matrix, which isregularly updated.Taking the risks of strategic development adjustment andprocurement process management, which we have alreadyidenti?ed, as examples:

Risk TypeRisk DescriptionRisk LevelControl Measures

StrategicDevelopmentAdjustment Risk

Due to the lack of timely adjustments andupdates in strategic planning, some contentsmay deviate from the corporate strategicgoals or cannot be implemented or fail toadapt to changes in the internal and externalbusiness environment. This will a?ect theoperational e?cacy of overall planning .

High

Monitor the progress of key indicators for relevantdepartments and business units, conduct annualstrategic checks on the implementation of strategiesand business synergy, review the achievement ofstrategic performance, and adjust and update afterdeliberation by the Board of Directors, the Strategyand Sustainable Development Committee, and themanagement team.Procurement

ProcessManagementRisk

Unreasonable procurement methods,unscienti?c bidding or pricing mechanisms,and irregular authorization approvals maylead to purchases of inferior quality at highprices, causing economic losses to theenterprise.

High

Specify detailed procurement standards for publictendering, invited tendering, inquiry, competitivenegotiation, sole sourcing, and direct purchasing.Except for direct purchasing, other methods shouldbe included in the procurement request andsubmitted for approval.

RiskReporting

In strict adherence to regulations such as the "Risk Indicator Monitoring and Management Regulations," we enforce a risk indicator early warning and riskinformation reporting mechanism:

Regarding speci?ed risk issues, the functional departments of us and each subsidiary,in conjunction with their risk policies, determine the business operation risk warningelements. Standards are set reasonably according to di?erent business types and riskwarning elements, and response measures are formulated. Business risks are iden-ti?ed, warned, and controlled. Risk issues classi?ed as early warning and responselevels must be reported to our CEO, Chairman, and Party Secretary within 24 hours.Dynamic management of risks is practiced, with risk levels, estimated losses, and re-sponse measures re-evaluated every two weeks, and progress reported in a bi-weeklyreport format.

For daily risk indicators, our functional departments, and the risk managementdepartments of each subsidiary are responsible for managing, tracking, handling,and timely reporting. The Risk Control and Compliance Department of us ensures theimplementation of risk response measures. The Risk Control and Compliance De-partment keeps abreast of signi?cant risk warning issues reported by each businesssegment, tracks and compiles the latest progress of each signi?cant risk warning issuemonthly, analyzes the overall signi?cant risk status of us, and reports risks classi?ed asearly warning and response levels to the Risk Control Committee in a bi-weekly reportformat.

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Risk Review

Risk Screening Internal Control Audit

Control Evaluation

?To proactively identify potential risks in new business modelslike integrated projects and to mitigate or prevent operational andmanagement risks, integrated project risk screenings were carriedout, including regular site visits and inspections. In 2023, 19 inte-grated projects were inspected, with individual inspection reportsissued for each project. These reports highlighted existing issuesand suggested improvements, tracking the implementation prog-ress of business units to enhance the risk control levels of integrat-ed projects e?ectively.?Two special screenings were conducted on the e?ectivenessof guarantees and some trade business compliance risks. Poten-tial risks in business operations and models were identi?ed, andsolving suggestions and standardized operation guidelines wereprovided to related business departments to help them standard-ize operations and resolve compliance risks.?Project risks were assessed and screened through audit process-es. In 2023, we reviewed key integrated project feasibility studyreports, discussing and analyzing cooperation models, processdesigns, risk exposures, and guarantee measures with functionaldepartments and business units to prevent risks. We approved731 material and service procurement items and 108 engineeringconstruction projects.

We regularly organize risk re-views for each business segmentand subsidiary to timely identifyoperational risks, de?ciency inmanagement processes, and exe-cution. We promote optimization,improvement, and recti?cationby the related units, and assessand evaluate the su?ciency ande?ectiveness of risk managementthrough audit inspections, inter-nal control evaluations, and more,thereby strengthening risk super-vision.

During the reporting period, we conducted a series of risk screen-ing projects to prevent potential risks:

In this reporting period, we conducted internal control auditsand inspection projects according to the annual audit work planand strategic focus areas, including the construction of inter-nal control systems, decision-making and execution of foreigninvestment projects, key control points in the business executionprocess of purchasing and payment, sales and collection, etc. Weraised issues including promoting institutional construction andoptimization, deviations in institutional implementation, andthe requirement for enhanced management re?nement, alongwith corresponding audit opinions. We tracked and ensuredthe implementation of recti?cation measures according to theschedule. We also carried out an internal control e?ectivenessevaluation, covering major businesses and matters like pro-curement, asset management, sales, engineering projects, riskassessment, and internal supervision, focusing on high-risk areassuch as sales and procurement management risks, and engagedthird-party professional institutions to audit the e?ectiveness ofinternal controls.

During the reporting period, we collaborated with third-partyprofessional institutions to advance the construction of a subsid-iary risk control capability evaluation system. We established anindex library for evaluating the risk control capabilities of subsid-iaries, completed the risk control capability evaluation, and usedthe evaluation to promote construction, thereby enhancing thebusiness operation risk prevention capabilities.

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Training on Risk ControlWe place a high value on employee training in risk control and compliance, encouraging em-ployees to proactively identify and report potential risk and compliance issues. This emphasisplays a critical role in leveraging the "?rst line of defense" for contributing intelligence andsuggestions to enterprise risk management. During this reporting period, we conducted variousforms of employee training and dissemination work related to risk control and compliance, in-stilling a sense of risk prevention throughout our operations, enhancing the risk prevention andcompliance awareness of employees, and the relevant personnel:

Our intranet features special columns for risk control observation and complianceperspectives, using a combination of text and images to monthly disseminate infor-mation on risk control and compliance aspects, including risk points, policy regula-tions, cases, and tips. A collection column for State-owned Assets Supervision andAdministration Commission (SASAC) regulations and policies is also available forrelevant personnel to reference and use.Promotional work on risk control themes was carried out through risk control obser-vation platform on the "Fangyuan Lecture", including the wrriten of 14 articles suchas "Interpretation of Central SOEs Comprehensive Risk Management Guidelines"and "Discussion on ESG Risk Management in Supply Chains" through the "FangyuanYoudao" internal public account.Training for all employees on topics including "ESG and Corporate Sustainability,""Key Points in Legal Risk Prevention for Equity Investments by State-owned Enter-prises," "Compliance Risk Prevention in the Health Technology Business," "CaseStudies 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 wereorganized, sharing work experiences and learning insights.

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We maintain positive communication with stakeholders through a diversi?ed communicationmechanism, promptly understand their suggestions and expectations and incorporate them intoour development planning considerations to continuously enhance our sustainability capabilities.

Communications with Stakeholders

StakeholdersConcerning TopicsCommunication Methods

Employees

? Occupational Health andSafety? Equal Employment? Training and Education? Anti-corruption? Tax Compliance

? Employee Feedback Solicitation? Employee Training and Activities? Employee Satisfaction Surveys? Employee Feedback and ComplaintChannels? Workers' Representative Meetings? Company WeChat Public Account andIntranet "Colleague Circle"

Clients

? Responsible Supply Chain? Anti-corruption? Anti-unfair Competition? R&D Innovation? Complaint Mechanism andWhistleblower Protection

? Customer Satisfaction Surveys? Customer Service and ComplaintHandling? Social Media and Company Publications? Exhibitions and Industry Events

Suppliers

? Occupational Health and

Safety? Human Rights Protection? Operations Compliance? Anti-unfair Competition

? Supplier Conferences? Exhibitions and Industry Events? Visits and Research? Discussions and Training? Big Data Monitoring

Investors

? Environmental Compliance? Human Rights Protection? Compliance Operations? Risk Management? Anti-corruption? Anti-unfair Competition? Tax Compliance

? Public Company Information Disclosure? Shareholders' Meetings? Performance Brie?ngs? Investor Surveys? Investor Hotline/Interactive Easy Platform

StakeholdersConcerning TopicsCommunication Methods

MediaInstitutions

? Responsible Supply Chain? R&D Innovation? Environmental Compliance? Energy Management? Customer Rights Protection? Equal Employment? Human Rights Protection? Occupational Health andSafety? Tax Compliance? Complaint Mechanism andWhistleblower Protection

? Social Welfare Activities? Public Company Information Disclosure? Social Media and Media Communications? Public Opinion Monitoring

Governmentand Regulatory

Bodies

? Occupational Health andSafety? Training and Education? Employee Communication? Customer Rights Protection? Operations Compliance? Risk Management? Anti-corruption? Information Security? Complaint Mechanism andWhistleblower Protection

? Online Exchanges? Visits and Research? Participation in Policy Making Suggestions? Government Project Cooperation? Information Disclosure

Banks

? Tax Compliance? Environmental Compliance? Operations Compliance? Risk Management? Anti-corruption

? Site Visits? Online Communication? Project Cooperation? Business TrainingNon-

governmental

Organizations

? Energy Management? Information Security? Tax Compliance

? Site Visits? Company Website? Social Media? Industry Activities and Social WelfareActivities

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Appendix

We pay attention to identifying and managing sustainable development issues, following re-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 toparticipate in the material issue assessment and responds to the content of material issuesin this report based on the assessment results.

Material Issues Assessment

Material IssueIdentification

Issue Importance Ranking

Stakeholder Survey andAssessmentBased on reporting framework require-ments like GRI and SASB, and consideringour business characteristics and exem-plary ESG practices in the industry, wereviewed and analyzed the results of our2022 material issue assessment to identi-fy 26 ESG issues for 2023.

Following the principle of double materiality, issues were analyzed and prioritized basedon their importance to our ?nancial impact and to stakeholders impact, forming a materialissue matrix.

Through material issue survey ques-tionnaires, we invited management andstakeholders to participate in the materialissue assessment work, understandingthe sustainable development issues ofconcern to stakeholders through internaland external surveys.

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Appendix

Importance to Xiamen ITG Group

Importance to Stakeholders

1612

1413

10112518

2019

2324183

Environmental Issues

Environmental Compliance

Greenhouse Gas Emissions

Energy Management

Water Conservation and Wastewater Management

Exhaust Air Management

Waste Management

Biodiversity

Resource Recycling

Social Issues

Equal Employment

Human Rights Protection

Occupational Health and Safety

Training and Education

Compensation and Welfare

Employee Communication

Community Investment

Responsible Supply Chain

Customer Rights Protection

Governance Issues

Operations Compliance

Risk Management

Anti-corruption

Anti-unfair Competition

Research and Development Innovation

Intellectual Property RightsProtection

Infomation Security

Tax Compliance

Whistleblower Protection

Issue Assessment Results Review

The ?nal assessment results of material issues were reviewed and con?rmed by our Strategic and Sustainable Develop-ment Committee and detailed in this report, with special emphasis on the three issues identi?ed as most important in thisassessment (operations compliance, tax compliance, and occupational health and safety).

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Appendix

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-ance of con?icts 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 togetherto build a regulated, harmonious, honest, and transparent business environment.

The Management Objectives for 2023Completion Status

No incidents of commercial bribery or corruption occurred throughout the year

No incidents leading to litigation or administrative penalties due to unfair competition practices occurred throughout the year

100% of employees received training on business ethics within the year

No incidents of infringing on others' intellectual property rights occurred throughout the year

No tax-related violations occurred throughout the year

Anti-Commercial Bribery and Anti-Unfair Competition

3.2

Achieved In Progress

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Business Ethics Supervision SystemWe continuously promote the improvement of specialized supervision by the disciplinary inspection, inter-nal party supervision, integration of various types of supervision mechanisms, and grassroots supervisionsystems, forming a joint supervisory force. A comprehensive business ethics supervision network has beenestablished, led by our Discipline Inspection Committee, executed by the Supervision O?ce, and closely col-laborated with related departments, covering us and our subsidiaries. The Supervision O?ce is responsiblefor party conduct building, integrity education, supervisory management, clue reception, investigation anddisposal, comprehensive coordination, and more, playing a vital role in supervising the implementation andpromoting development. We have also set up a coordination group for party conduction, integrity construc-tion, and anti-corruption to coordinate and support among departments like organization, audit, ?nance,assisting in the advancement of party conduct, integrity construction, and anti-corruption coordinatione?orts. Furthermore, we continuously push the deep implementation of the "1+X" special inspection mecha-nism, integrating specialized supervision with functional supervision, encouraging coordination, informationsharing among the Supervision O?ce, functional departments, and party organization discipline inspectioncommissions at all levels, to enhance the overall e?ectiveness of supervision.

We respect the requirements of relevant internationalconventions and strictly adheres to the laws and reg-ulations of China and the countries (regions) wherewe operate. We oppose monopolistic and unfair com-petitive practices, as well as improper trading thatdisrupts market order. We insist on operating withhonesty to maintain the order of fair market competi-tion.

We adhere to anti-corruption and integrity in practice, upholding a "zero tolerance" principle towards fraudulent activities. We oppose any formof corruption and commercial bribery, committing to strictly comply with the anti-corruption and anti-commercial bribery laws and regulationsof China and the countries (regions) where we operate, as well as the provisions and guidelines related to anti-corruption and anti-commercialbribery of multilateral international ?nancial institutions and our own regulations. Any form of bribery is prohibited, including but not limited to:

providing any improper kickbacks and other forms of bribery to another business or person directly or indirectly; requesting any form of bene?tfrom customers, suppliers, or other stakeholders; o?ering or receiving compensation or other bene?ts that may unfairly a?ect our business. Weintegrate business ethics requirements such as honesty and con?ict of interest avoidance into employee performance assessment indicators tostrengthen employee behavior norms and management.

Anti-Monopoly and Anti-Unfair Competition

Anti-Corruption and Anti-Commercial Bribery

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Business Ethics Risk Prevention and ControlWe integrate business ethics risk control into the operational risk management system, in conjunc-tion with the actual operations of our functional departments and business segments. We target keyareas and critical positions involved in property transactions, bidding, construction projects, andbulk trading. We have developed and improved management systems such as the " Business EthicsRisk Control Embedded in Operational Risk Management Work Procedures (Trial)" and others.By comprehensively utilizing education, early warning, regulatory, and supervisory methods, weconduct early prevention, mid-term monitoring, and post-event handling to e?ectively prevent andinvestigate potential corrupt practices in management and operations.

Collective Discussion Meeting on Business Ethics Risk Control Embedded in Operational Risk Control

For key areas and critical positions, we identify corresponding business ethics risks, like thepotential for interest transfer or collusion with suppliers among personnel related to thesupply chain business unit. We have developed an "Integrity Risk Control Handbook," clari-fying corresponding control measures and implementing dynamic tracking management ofbusiness ethics risks to normalize the investigation of such risks. Regular risk investigationsare conducted, control measures are timely revised, and the integrity risk control mecha-nism is improved. We e?ectively prevent and resolve integrity risks through precise dailysupervision, special supervision, and strengthening grassroots supervision.During the reporting period, we deepened the use of the "1+X" supervision mechanism,strengthening collaboration among related functional departments, conducting specialsupervisory inspections like asset leasing management, business hospitality management,seal usage management for 29 sessions, demanding immediate recti?cation of discoveredissues, urging the perfection of related regulations and systems. The Risk Control and Com-pliance Department organized health technology sector subsidiaries to self-inspect andself-correct potential commercial bribery behaviors and guided relevant practitioners tosign the "Integrity Commitment Letter."

On-site Inspection of the Hainan ITG SmartLogistics Park Project

Carrying out "One Special Supervision andInspection per Quarter"

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The Accountability Mechanism for Violations in Business andInvestment Operations

For actions violating business ethics and integrity standards, we have developed the "Management System forAccountability of Violations in Business and Investment Operations" and "Guidelines for Investigating Cluesof Violations in Business and Investment Operations," establishing a long-term accountability mechanism.We set up a working group for accountability for violations in business and investment operations under theleadership of the party committee, which led by a leader from the Audit Department and with members fromthe Audit Department, Party Committee O?ce, Risk Control and Compliance Department, Supervision O?ce, etc.

Head of Audit DepartmentLeader of auditDepartment

Leader of PartyCommittee O?ce

Leader of Risk Controland Compliance

Department

Leader ofSupervision

O?ce

Leadership Group for Accountability Investigation and Prosecution ofUnauthorized Business Operations and InvestmentsLeaderMemberThe Audit Department is the specialized department responsible for the accountability work of violationsin business and investment operations, undertaking the accountability work according to the procedurefor investigating clues of issues. Upon receiving related complaints, we will initiate an investigation into theviolations in business and investment operations; we may also conduct investigations on our own. The taskforce for checking issue clues will be composed of the specialized institution, relevant functional depart-ments, subsidiary operating units, and personnel from related intermediary organizations, responsible for theactual conduct of the veri?cation work and ultimately forming a veri?cation work report. The task force willpropose 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 andnoti?cation, 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 investmentoperations to eliminate all forms of dereliction of duty and negligence.

Business Ethics Education and Training

We value business ethics education and training. By creating the "Pure Wind Casting Chain" busi-ness ethics culture brand, and disseminating positive messages about integrity through variousforms of education and propaganda, we enhance employees' awareness of laws and integrity, andadvance the construction of corporate integrity culture.In this reporting period, we formulated the "Integrity Culture Publicity and Education Month WorkPlan," organizing "Reading for Integrity, Stories of Integrity, Warnings for Clarity, Letters Home aboutIntegrity, Creative Expressions of Integrity, Media Advocacy for Integrity" six major series of activi-ties. We continuously deepened case-based warnings, holding "Learning from Cases to StrengthenDefenses" warning education exhibitions around "the six disciplines" showing typical cases ofstate-owned enterprises investigated in recent years, and over 1,000 participants attended theexhibitions. We organized integrity party classes like "Party Discipline and State Laws Around Us"and "Deepening the Governance of Corruption in State-owned Enterprises, Firmly Eliminating theBreeding Ground for Corruption," enhancing the speci?city and e?ectiveness of warning education.During the reporting period, no incidents of business ethics violations occurred due to corruptionor bribery .

over1,000participants attendedthe exhibitions

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Appendix

We respect intellectual property rights,striving to protect our Intellectual PropertyRights from infringement while also respect-ing the Intellectual Property Rights of others,committing not to engage in any commercialactivities that infringe upon others' IP rights.We attach great importance to the protec-tion of intellectual property rights and haveestablished a clearly de?ned organizationalstructure for Intellectual Property Rightsmanagement to e?ectively implement theIPR management tasks.

Intellectual PropertyRights Protection

We have developed a "Trademark and Brand Names Management Measures," detailing the responsibilities, management methods, registration andprotection, transfer, and authorized use of trademarks and brand names to strengthen their protection. In the supply chain business, inspections re-lated to brand and IPR products are conducted according to the "Supply Chain Business Management Regulations" to prevent potential infringementrisks during business expansion. The Brand Management Department periodically conducts self-examinations and corrections of promotional chan-nels to address any IPR infringements. Additionally, internal promotional and educational e?orts are made to raise employee awareness about IPRprotection.During this reporting period, we acquired 64 new Intellectual Property Rights, including 32 new trademark registrations, 29 new copyright registra-tions, and 3 new patent authorizations; no IP infringement incidents occurred throughout the year.

Intellectual Property Rights Management Structure

Brand Management

Department

ITG Digital Scienceand TechnologySupply Chain Operations

Department

Legal A?airsDepartment andRisk ManagementProvides legal sup-port for intellectualproperty infringe-ment, disputes, andactions that harmour intellectual prop-erty rights.

Responsible forthe managementof trademarks andbrand names.

Responsible for the intellectu-al property rights compliancemanagement of exported goods,guiding units within a reasonablescope to understand the intel-lectual property status of theirexport goods and submit relevantcerti?cation documents to ensurethe entire chain is smoothly com-pliant.

Responsible for theintellectual proper-ty rights related tocomputer softwarecopyrights duringthe constructionof our informationsystems and dataplatforms.

new intellectualproperty rights

new trademarkregistrations

new copyrightregistrations

new patentauthorizations

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We strictly adhere to the "Enterprise Income Tax Law of the People's Republic of China" and otherrelevant tax regulations of the country and the regions where we operate, insisting on honesty andful?lling tax obligations lawfully.The Finance Department is responsible for tax management and compiles guidelines for daily taxdeclarations and tax calculations to guide and standardize the tax work of us and our subsidiaries.We follow internal control processes to identify, assess, and manage the tax risks that may arisefrom operational activities, appropriately measuring, managing, and controlling these risks tocontinuously improve the level of tax compliance management. At the same time, we stay up-to-date with changes in tax laws and policies to strengthen tax risk prevention and ensure legal andcompliant tax operations; we have signed a "Tax Compliance Cooperation Agreement" with localtax authorities, establishing a relationship of trust and an active and transparent communicationmechanism.In 2023, we released internal dissemination articles such as "Frequent Tax-Related Cases in the FourMajor Foreign Trade Areas: Understanding the Hidden Risks in Business Models," "The Process andChallenges in Handling Abnormal Vouchers," and "Hot Issues in Export Tax Refund (Exemption),"alerting subsidiaries to prevent and respond to daily tax-related risks.Furthermore, through tax training, we strengthened employees' awareness of tax-related risks,maintaining the transparency, integrity, and compliance of corporate taxation. In 2023, we invitedexternal institutions to conduct a themed sharing on "Taxation in Mergers and Acquisitions," cover-ing the main tax issues and challenges involved in corporate restructuring, providing guidance forthe lawful and regulatory handling of such matters through case analysis. Additionally, a themed taxtraining "Vast Seas, Compliance Escort" was held, starting from tax concerns in overseas investmentprojects' investment, ?nancing, and operational structures, conducting framework organization andcase 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.

We welcome stakeholders to report any conduct that violates or may violate our Code of BusinessConduct and relevant laws and regulations, supporting and protecting the rights of all stakeholders tomake complaints and suggestions. By establishing the "Regulations on the Protection of Petitioners andInformants," we commit to strict adherence to con?dentiality obligations and adopt a zero-tolerancepolicy towards retaliatory actions, thus fully safeguarding the legal rights and interests of complainants.According to the "Rules for Handling Reports and Accusations by Disciplinary Inspection and SupervisoryOrganizations" and "Regulations on Letters and Visits," we o?er various channels such as telephone,email, and face-to-face communication. Our Supervision O?ce will handle the reports, initiateinvestigation and processing procedures, and promptly provide feedback on the investigation results andhandling status to the complainants.Per the "Regulations on the Protection of Petitioners and Informants," the Supervision O?ce will maintainstrict con?dentiality when accepting and investigating complaints and reports. Complaint materials areclassi?ed as con?dential; without the consent of the complainant, the identity and information of thecomplainant and the content of their report cannot be disclosed or leaked. Anonymous reporting is per-mitted, and aside from the necessities of case investigation, the Supervision O?ce is not allowed to verifyhandwriting or conduct document examinations on anonymous complaint materials unauthorized. Ifcooperation from other departments is needed to provide materials, a "Con?dentiality Agreement" mustbe signed as per the regulations, clearly de?ning con?dentiality obligations.We strictly prohibit any department or individual from suppressing or obstructing complainants fromlegally ?ling complaints and reports under any pretext. forbid any unauthorized investigation into theidentity of the complainants, and prohibit any form of retaliation against the complainants, their relatives,or presumed complainants by any means or pretext. Individuals who violate con?dentiality obligations orretaliate against complainants will be dealt with severely according to relevant regulations, and their legalresponsibilities will be pursued.

Tax ComplianceComplaint Mechanism and Whistleblower Protection

0592-5898586

ReportAddressComplaintand ReportHotline

26th Floor, ITG Center, 4688 XianyueRoad, Huli District, Xiamen City

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AppendixData OverviewGRI IndexISDS IndexSASB IndexIndicators Referencefor ESG Report of ListedChinese Central State-Owned Enterprises

Data Overview

IndicatorUnit202120222023Environmental InvestmentEnvironmental investment

Ten-thousand

RMB

//226.53Number of environmentalviolations

Time

//0Number of environmentalemergency drills

//21 GHG Emissions

Scope 1: Direct GHG emis-sions

tCO

e

1,274.6463,177.34114,173.40Scope 2: Indirect GHG emis-sions

2,192.67183,283.14242,920.21Total GHG emissions3,467.31246,460.48357,093.61GHG emission intensity

tCO

e/hun-dred-million RMBof operating reve-nue

0.7547.2276.26Air PollutantsNitrogen oxides (NOx)

Ton

//2.99Sulfur oxides (SOx)//1.40Particulate matter (PM)//3.15Non-methane volatile or-ganic compounds (NMVOCs)

//0.13Wastewater PollutantsVolume of wastewater dis-charge

m?//523,389Energy ConsumptionElectricity consumption

kWh3,773,953.58271,331,451.20342,095,277.67

IndicatorUnit202120222023Electricity consumptionintensity

kWh/hundred-mil-lion RMB of oper-ating revenue

812.0351,987.3773,058.74

Steam consumption

Ton

/74,541.45139,112.81Lique?ed gas consumption/4.2711.12Thermal coal consumption/8,012.8410,007.03Natural gas consumptionm?//1,169,092.15Gasoline consumption

Litre

//433,068.61Diesel (mobile sources)consumption

437,563.478,346,273.398,153,634.16Diesel (stationary sources)consumption

//3,170.00Marine fuel for shippingTon//28,432.67Water ResourcesWater withdrawal

m?

//917,616.8Water consumption 51,899.85/394,227.80Water consumption density

m?/hundred-mil-lion RMB of oper-ating revenue

11.17/84.19 Waste Hazardous WasteHazardous waste generation

Ton

//62.81Transfer and disposal vol-ume of hazardous waste

0.30/59.64General WasteDomestic waste generated

Ton

439.24/2,755.04Domestic waste recycled57.05/37.42Packaging MaterialsPlastic products consump-tion

Ton

//63.45Paper products consump-tion

//7.50

Environment

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 reportingperiod. 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.

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Data OverviewGRI IndexISDS IndexSASB IndexIndicators Referencefor ESG Report of ListedChinese Central State-Owned Enterprises

Employment

IndicatorUnit202120222023 Employees Composition Total employeesPerson5,5046,9366,947 Employees Composition by Gender Male

Person

3,3934,1344,305 Female2,1112,8022,642Employees Composition by AgeUnder 30

Person

1,6722,3872,05830-503,3203,9944,303Over 50512555586Employees Composition by Education Master's degree and above

Person

500667725 Bachelor's degree2,2892,9603,101 Others2,7153,3093,121Employees Composition by Nationality China

Person

//6,583 Others//364Employees Composition by FunctionSales

Person

3,6772,8132,876Technical145172369Finance317409430Administrative1,365752800Production/2,7902,472Female production//712Female sales//1,141Female technical//74Female ?nance//300Female administrative//415Number of employees in Science, Tech-nology, Engineering, and Mathematics(STEM) positions

//286

IndicatorUnit202120222023Number of females in Science, Tech-nology, Engineering, and Mathematics(STEM) positions

Person//56Percentage of females in Science, Tech-nology, Engineering, and Mathematics(STEM) positions

%//19.58Employment in Local ProvinceNumber of local employeesPerson//4,414Proportion of local employees%//63.54Number of local female employeesPerson//1,729Proportion of local female employees%//65.44Number of local senior managementpersonnel

Person//5Proportion of local senior managementpersonnel

%//100.00Number of local female senior manage-ment personnel

Person//2Proportion of local female senior man-agement personnel

%//100.00 Employment of People with DisabilitiesNumber of employees with disabilitiesPerson/512Proportion of employees with disabili-ties

%/0.120.17Gender Distribution in Management

Male management

Person

109110310Female management3332138Percentage of female managers%23.2422.5430.80Senior management

Person

//5Including: Female senior management//2Percentage of female senior manage-ment

%//40.00Junior managementPerson//288Notes4:Management refers to mid-level and above managers at the company headquarters, as well as senior management person-nel in each subsidiary company.

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Data OverviewGRI IndexISDS IndexSASB IndexIndicators Referencefor ESG Report of ListedChinese Central State-Owned Enterprises

IndicatorUnit202120222023Employee TrainingTotal investment in employee trainingthroughout the year

Ten-thou-sand RMB

220.50644.00678.60

Total number of employees trainedPerson/5,9336,095Average training cost per employee

Ten-thou-sand RMB

//0.10Number of female employees trained

Person

//2,436Number of male employees trained//3,659Percentage of female employees trained

%

/39.1492.20Employee training coverage rate/ 85.5487.74Total training hours for employees

Hour

/ 73,446114,430.86Average training hours per employee/ 10.5916.47 Employee Training Breakdown by TypeTotal online training hoursHour//86,895.23Employee PerformancePercentage of employees undergoingregular performance and career devel-opment assessments

%//100.00Compensation and Bene?tsMale entry level salary

RMB

//2,600Female entry level salary//2,600Government-mandated local minimumwage for males

//2,030Government-mandated local minimumwage for females

//2,030

IndicatorUnit202120222023

Including: Female junior managementPerson//103Percentage of female junior manage-ment

%

//35.76Percentage of female management inrevenue-generating departments

//28.50Nationality Distribution in Management China

Person

//446 Others//2Employment ContractEmployees with signed labor contractPerson5,5046,9366,947Labor contract signing rate%100.00100.00100.00Employee TurnoverNumber of employees at the beginningof the year

Person

5,2565,5046,936Number of new hires during the year1,1721,6331,657Number of departures924602643Including: Departures of employees

under 30

//267Departures of employeesaged 30 to 50

//358Departures of employeesover 50

//18Including: Departures of Chinese em-

ployees

//642Departures of Non-Chineseemployees

//1Including: Departures of Female em-

ployees

//241Departures of Male employ-ees

//402Annual turnover rate%14.378.437.48

Employment

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IndicatorUnit202120222023Ratio of male entry level salary to localmale minimum wage

%

/ 380.95128.08Ratio of female entry level salary tolocal female minimum wage

/ 380.95128.08Average monthly basic salary for malesenior management

RMB

//40,000Average monthly basic salary for femalesenior management

//40,000Average annual compensation for malesenior management

//1,450,900Average annual compensation for fe-male senior management

//1,016,200Average monthly basic salary for malemanagement

//17,195.00Average monthly basic salary for femalemanagement

//17,195.00Average monthly basic salary fornon-management male employees

//6,455.00Average monthly basic salary fornon-management female employees

//6,455.00Mean wage gap//0Median wage gap//0Mean bonus gap//0Median bonus gap//0 Freedom of Association and Collective BargainingTotal number of employees covered/protected by collective agreements

Person//3,150Percentage of employees covered/pro-tected by collective agreements

%//45.34

IndicatorUnit202120222023Employee Care and WelfareDe?ned bene?t plans and other retire-ment plans

Ten-thou-sand RMB

//2,140.67Company contribution percentage tode?ned bene?t plans and other retire-ment plans

%//3Total duration of paid parental leaverequested by employees

Day

//1,696.67Including: Total duration of paid paren-tal leave requested by employees (asprimary caregivers)

//957.75Total duration of paid parental leave re-quested by employees (as non-primarycaregivers)

//738.92Duration of paid family or caregivingleave excluding maternity leave

//1,402.50Human Rights Impact AssessmentMinimum notice period for operationalchanges

Day//30Security PracticeNumber of security personnel who havereceived training on human rights poli-cies or procedures

Person

//230Total number of security personnelemployed by the company

//17Total number of third-party security per-sonnel

//213Percentage of security personnel whohave received training on human rightspolicies or procedures

%//100.00

Employment

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MarketIndicatorUnit202120222023

Work Safety InputTotal annual investment in occupationalhealth and safety

Ten-thou-sand RMB

//3,803.15 Performance of Occupational Safety TrainingTotal number of participants in occupa-tional safety training

Partici-pant

//24,881Number of safety emergency drillsTime//223Number of participants in safety emer-gency drills

Partici-pant

//3,951Number of o?ine safety training ses-sions

Session//504Number of online safety coursesCourse//39Occupational Health and Safety PerformanceNumber of workers covered by the occu-pational health and safety managementsystem

Person

//7,161Number of occupational injuries//1Number of occupational fatalities//0Occupational fatality rate%//0Total duration of work-related injurylosses

Day//55Total number of occupational injuryincidents

Case//1Total recordable injury frequency rate(TRIFR) - employees

/

//0.08Lost time injury frequency rate (LTIFR) -employees

//4.41

IndicatorUnit202120222023Resolution of ComplaintsTotal number of product or service-re-lated complaints

Case

/3033Total number of resolved product orservice-related complaints

/3033Timeliness rate of responses to productor service-related complaints

%/100.00100.00Information Security and Privacy ProtectionInformation security incidentsCase/00Number of customers a?ected by databreaches

Person

//0Number of employees a?ected by databreaches

//0Incidents of customer privacy infringe-ment

Case//0Research and Development InvestmentTotal investment in science and technol-ogy research and development

Ten-thou-sand RMB

/4905,154.23Intellectual Property RightsNumber of new patent applications

Case

/20Number of new patents granted0/3Number of new copyright applications//8Number of new copyrights registered62129Number of new trademark applications//29Number of new trademarks registered8611232Total new intellectual property rightsacquired in the year

9213564

Occupational Health and Safety

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MarketCorporate Governance

Community

IndicatorUnit202120222023

SupplierTotal number of suppliers

Unit

/47,52548,232Number of suppliers in the provincewhere the company is located

/7,9667,054Number of suppliers in Mainland China/38,37537,992Number of suppliers outside MainlandChina

//10,240Total number of suppliers reviewed bythe company in the year

/8,61713,513Total number of new suppliers admittedafter reviewed by the company in theyear

/6,67310,802

IndicatorUnit202120222023 Business EthicsCommunication and Training on Anti-corruption PoliciesPercentage of directors, supervisors,and senior management who have beenbriefed on anti-corruption policies andprocedures

%

//100.00Percentage of employees briefed onanti-corruption policies and procedures

//100.00Percentage of directors, supervisors,and senior management who havereceived anti-corruption training

//100.00Percentage of employees who havereceived anti-corruption training

//100.00Violations of Business EthicsIncidents of Commercial Bribery andCorruption

Case

//0Con?icts of Interest Incidents//0Money Laundering and Insider TradingIncidents

//0Incidents resulting in litigation or sig-ni?cant administrative penalties dueto unfair competition or monopolisticpractices

//0

IndicatorUnit202120222023Community EngagementAmount of external donations

Ten-thou-sand RMB

943.20151.00153.00

Number of volunteer serviceTime//87Total number of volunteer participants

Partici-pant

/962420Total hours of volunteer serviceHour4,6146,7351,605

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GRI IndexGRI StandardsDisclosuresLocationOmissionGeneral Disclosures

GRI 2:

General Disclosures 2021

2-1 Organizational details

Message from the ChairmanIntegrate Industry to Connect and Create Value toShare2-2 Entities included in the organization's sustainability reportingAbout This Report2-3 Reporting period, frequency and contact pointAbout This Report2-4 Restatements of informationNot Covered In This Report

This report does not involve infor-mation restatement2-5 External assuranceNot Covered In This Report

This report has not undergonethird-party veri?cation2-6 Activities, value chain and other business relationships

Message from the ChairmanIntegrate Industry to Connect and Create Value toShare2-7 Employees

Human Rights ProtectionData Overview2-8 Workers who are not employeesNot Covered In This Report

The Company does not collect rele-vant data during this report period2-9 Governance structure and compositionGovernance Structure2-10 Nomination and selection of the highest governance bodyGovernance Structure2-11 Chair of the highest governance bodyGovernance Structure2-12 Role of the highest governance body in overseeing the managementof impacts

Governance StructureRisk Control and Compliance2-13 Delegation of responsibility for managing impacts

Governance StructureRisk Control and ComplianceAll-Sta? Involved Occupational Health and SafetyManagement

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GRI StandardsDisclosuresLocationOmission

GRI 2:

General Disclosures 2021

2-14 Role of the highest governance body in sustainability reportingGovernance Structure2-15 Con?icts of interestGovernance Structure2-16 Communication of critical concernsCommunications with Stakeholders2-17 Collective knowledge of the highest governance bodyGovernance Structure2-18 Evaluation of the performance of the highest governance bodyNot Covered In This Report

Not implemented during the report-ing period2-19 Remuneration policiesGovernance Structure2-20 Process to determine remunerationGovernance Structure2-21 Annual total compensation ratioData Overview2-22 Statement on sustainable development strategy

Message from the ChairmanNet Zero Strategy

2-23 Policy commitments

Climate ResponsePollution Control and Ecosystem ProtectionResource Utilization and Circular EconomyHuman Rights ProtectionAll-Sta? Involved Occupational Health and SafetyManagementResponsible SourcingProtection of Customer RightsRural Revitalization and Social ContributionAnti-Commercial Bribery and Anti-Unfair Competi-tion

2-24 Embedding policy commitments

Climate ResponsePollution Control and Ecosystem ProtectionResource Utilization and Circular EconomyHuman Rights ProtectionAll-Sta? Involved Occupational Health and SafetyManagementResponsible SourcingProtection of Customer RightsRural Revitalization and Social ContributionRisk Control and ComplianceAnti-Commercial Bribery and Anti-Unfair Competi-tion

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GRI StandardsDisclosuresLocationOmission

GRI 2:

General Disclosures 2021

2-25 Processes to remediate negative impacts

Climate ResponsePollution Control and Ecosystem ProtectionResource Utilization and Circular EconomyHuman Rights ProtectionAll-Sta? Involved Occupational Health and SafetyManagementSupply Chain Risk ManagementResponsible SourcingProtection of Customer RightsRural Revitalization and Social ContributionRisk Control and ComplianceAnti-Commercial Bribery and Anti-Unfair Competi-tion

2-26 Mechanisms for seeking advice and raising concerns

Human Rights ProtectionSupply Chain Risk ManagementResponsible SourcingProtection of Customer RightsRural Revitalization and Social ContributionInverstor RelationsCommunications with StakeholdersComplaint Mechanism and Whistleblower Protec-tion

2-27 Compliance with laws and regulations

Pollution Control and Ecosystem ProtectionHuman Rights ProtectionAll-Sta? Involved Occupational Health and SafetyManagementProtection of Customer RightsResponsible MarketingGovernance StructureInverstor RelationsRisk Control and ComplianceAnti-Commercial Bribery and Anti-Unfair Competi-tion2-28 Membership associationsPromote Industry Development2-29 Approach to stakeholder engagementCommunications with Stakeholders2-30 Collective bargaining agreements

Human Rights ProtectionSmooth Career Development PathwaysData Overview

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GRI StandardsDisclosuresLocationOmission

Material topics

GRI 3:

Material Topics 2021

3-1 Management of material topics

Material Issues AssessmentCommunications with Stakeholders3-2 List of material topicsMaterial Issues Assessment

Economic performance

GRI 3:

Material Topics 2021

3-3 Management of material topics

Sustainable Development Risk ManagementRisk Control and ComplianceGovernance StructureCommunications with Stakeholders

GRI 201:

Economic Performance 2016

201-1 Direct economic value generated and distributedGovernance Structure201-2 Financial implications and other risks and opportunities due to cli-mate change

Sustainable Development Risk Management201-3 De?ned bene?t plan obligations and other retirement plansData Overview201-4 Financial assistance received from government2023 Social ImpactMarket presence

GRI 3:

Material Topics 2021

3-3 Management of material topicsSmooth Career Development PathwaysGRI 202:

Market Presence 2016

202-1 Ratios of standard entry level wage by gender compared to local

minimum wage

Data Overview

202-2 Proportion of senior management hired from the local communityData OverviewIndirect economic impact

GRI 3:

Material Topics 2021

3-3 Management of material topicsRural Revitalization and Social Contribution

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GRI StandardsDisclosuresLocationOmission

GRI 203:

Indirect Economic Impacts 2016

203-1 Infrastructure investments and services supportedRural Revitalization and Social Contribution203-2 Signi?cant indirect economic impactsRural Revitalization and Social Contribution

Procurement practices

GRI 3:

Material Topics 2021

3-3 Management of material topicsResponsible SourcingGRI 204:

Procurement Practices 2016

204-1 Proportion of spending on local suppliers

Support Rural Revitalization Strategies with Indus-trial Resource AdvantagesAnti-corruption

GRI 3:

Material Topics 2021

3-3 Management of material topicsAnti-Corruption and Anti-Commercial Bribery

GRI 205:

Anti-corruption 2016

205-1 Operations assessed for risks related to corruptionAnti-Corruption and Anti-Commercial Bribery

205-2 Communication and training about anti-corruption policies and

procedures

Anti-Corruption and Anti-Commercial BriberyData Overview

205-3 Con?rmed incidents of corruption and actions taken

Anti-Commercial Bribery and Anti-Unfair Competi-tionData OverviewAnti-competitive behavior

GRI 3:

Material Topics 2021

3-3 Management of material topicsAnti-Monopoly and Anti-Unfair CompetitionGRI 206:

Anti-competitive Behavior 2016

206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly

practices

Anti-Commercial Bribery and Anti-Unfair Competi-tionData OverviewTax

GRI 3:

Material Topics 2021

3-3 Management of material topicsTax ComplianceGRI 207:

Tax 2019

207-1 Approach to taxTax Compliance

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GRI StandardsDisclosuresLocationOmission

GRI 207:

Tax 2019

207-2 Tax governance, control, and risk managementTax Compliance207-3 Stakeholder engagement and management of concerns related totax

Tax Compliance207-4 Country-by-country reportingNot Covered In This Report

The Company does not collect rele-vant data during this report periodMaterials

GRI 3:

Material Topics 2021

3-3Management of material topics

Climate Response

Pollution Control and Ecosystem Protection

Resource Utilization and Circular Economy

GRI 301:

Materials 2016

301-1 Materials used by weight or volume

Pollutants Emissions Control

Resource Utilization and Circular Economy

Data Overview301-2 Recycled input materials usedResource Utilization and Circular Economy301-3 Reclaimed products and their packaging materials

Resource Utilization and Circular Economy

Data OverviewEnergy

GRI 3:

Material Topics 2021

3-3 Management of material topicsClimate Response

GRI 302: Energy 2016

302-1 Energy consumption within the organization

GHG Emissions Control

Data Overview302-2 Energy consumption outside of the organizationNot Covered In This Report302-3 Energy intensity

2023 Environmental Impact

Data Overview302-4 Reduction of energy consumption

Energy Conservation and Emissions Reduction

Action302-5 Reductions in energy requirements of products and services

Energy Conservation and Emissions Reduction

ActionWater and e?uents

GRI 3:

Material Topics 2021

3-3 Management of material topicsPollution Control and Ecosystem Protection

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GRI StandardsDisclosuresLocationOmission

GRI 303:

Water and E?uents 2018

303-1 Interactions with water as a shared resourceWater Resources Conservation303-2 Management of water discharge-related impactsPollutants Emissions Control303-3 Water withdrawalData Overview303-4 Water dischargeData Overview303-5 Water consumptionData OverviewBiodiversity

GRI 3:

Material Topics 2021

3-3 Management of material topicsPollution Control and Ecosystem Protection

GRI 304:

Biodiversity 2016

304-1 Operational sites owned, leased, managed in, or adjacent to, protect-ed areas and areas of high biodiversity value outside protected areas

Not Covered In This Report304-2 Signi?cant impacts of activities, products and services on biodiversi-ty

Biodiversity Protection304-3 Habitats protected or restoredNot Covered In This Report304-4 IUCN Red List species and national conservation list species withhabitats in areas a?ected by operations

Not Covered In This ReportEmissions

GRI 3:

Material Topics 2021

3-3 Management of material topics

Climate Response

Pollution Control and Ecosystem Protection

GRI 305:

2016GRI 305: Emissions 2016

305-1 Direct (Scope 1) GHG emissions

GHG Emissions Control

Data Overview305-2 Energy indirect (Scope 2) GHG emissions

GHG Emissions Control

Data Overview305-3 Other indirect (Scope 3) GHG emissionsNot Covered In This Report305-4 GHG emissions intensity

2023 Environmental Impact

GHG Emissions Control

Data Overview

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GRI StandardsDisclosuresLocationOmission

GRI 305:

2016GRI 305: Emissions 2016

305-5 Reduction of GHG emissions

Energy Conservation and Emissions ReductionAction305-6 Emissions of ozone-depleting substances (ODS)Not Covered In This Report305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other signi?cant airemissions

Data OverviewWaste

GRI 3:

Material Topics 2021

3-3 Management of material topicsPollution Control and Ecosystem Protection

GRI 306:

Waste 2020

306-1 Waste generation and signi?cant waste-related impactsPollutants Emissions Control306-2 Management of signi?cant waste-related impactsPollutants Emissions Control306-3 Waste generatedData Overview306-4 Waste diverted from disposalData Overview306-5 Waste directed to disposalData Overview

Supplier environmental assessment

GRI 3:

Material Topics 2021

3-3 Management of material topicsResponsible SourcingGRI 308:

Supplier Environmental Assess-

ment 2016

308-1 New suppliers that were screened using environmental criteriaResponsible Sourcing

308-2 Negative environmental impacts in the supply chain and actions

taken

Responsible Sourcing

Employee

GRI 3:

2021GRI 3: Material Topics 2021

3-3 Management of material topics

Human Rights ProtectionSmooth Career Development Pathways

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GRI StandardsDisclosuresLocationOmission

GRI 401:

Employment 2016

401-1 New employee hires and employee turnoverData Overview401-2 Bene?ts provided to full-time employees that are not provided totemporary or part-time employees

Smooth Career Development Pathways401-3 Parental leaveData OverviewLabor management relations

GRI 3:

Material Topics 2021

3-3 Management of material topicsHuman Rights ProtectionGRI 402:

Labor/Management Relations

2016

402-1 Minimum notice periods regarding operational changesData OverviewOccupational Health and Safety

GRI 3:

Material Topics 2021

3-3 Management of material topics

All-Sta? Involved Occupational Health and SafetyManagement

GRI 403:

Occupational Health and Safety

2018

403-1 Occupational health and safety management system

All-Sta? Involved Occupational Health and SafetyManagement

403-2 Hazard identi?cation, risk assessment, and incident investigation

All-Sta? Involved Occupational Health and SafetyManagement

403-3 Occupational health services

All-Sta? Involved Occupational Health and SafetyManagement

403-4 Worker participation, consultation, and communication on occupa-

tional health and safety

All-Sta? Involved Occupational Health and SafetyManagement

403-5 Worker training on occupational health and safety

All-Sta? Involved Occupational Health and SafetyManagement

403-6 Promotion of worker health

All-Sta? Involved Occupational Health and SafetyManagement

403-7 Prevention and mitigation of occupational health and safety impacts

directly linked by business relationships

All-Sta? Involved Occupational Health and SafetyManagement

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GRI StandardsDisclosuresLocationOmission

GRI 403:

Occupational Health and Safety

2018

403-8 Workers covered by an occupational health and safety managementsystem

All-Sta? Involved Occupational Health and SafetyManagement403-9 Work-related injuries

All-Sta? Involved Occupational Health and SafetyManagementData Overview403-10 Work-related ill health

All-Sta? Involved Occupational Health and SafetyManagementTraining and education

GRI 3:

Material Topics 2021

3-3 Management of material topicsSmooth Career Development PathwaysGRI 404:

Training and Education 2016

404-1 Average hours of training per year per employee

Smooth Career Development PathwaysData Overview

404-2 Programs for upgrading employee skills and transition assistance

programs

Smooth Career Development Pathways

404-3 Percentage of employees receiving regular performance and career

development reviews

Smooth Career Development PathwaysData Overview

Diversity and equal opportunity

GRI 3:

Material Topics 2021

3-3 Management of material topics

Human Rights ProtectionSmooth Career Development PathwaysGRI 405:

Diversity and Equal Opportunity

2016

405-1 Diversity of governance bodies and employees

Human Rights ProtectionData Overview

405-2 Ratio of basic salary and remuneration of women to menData OverviewNon-discrimination

GRI 3:

Material Topics 2021

3-3 Management of material topics

Human Rights ProtectionSmooth Career Development PathwaysGRI 406:

Non-discrimination 2016

406-1 Incidents of discrimination and corrective actions takenHuman Rights ProtectionFreedom of association and collective bargaining

GRI 3:

Material Topics 2021

3-3 Management of material topics

Human Rights ProtectionSmooth Career Development Pathways

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GRI StandardsDisclosuresLocationOmission

GRI 407:

Freedom of Association andCollective Bargaining 2016

407-1 Operations and suppliers in which the right to freedom of associationand collective bargaining may be at risk

Human Rights ProtectionResponsible Sourcing

Child labor

GRI 3:

Material Topics 2021

3-3 Management of material topicsHuman Rights ProtectionGRI 408:

Child Labor 2016

408-1 Operations and suppliers at signi?cant risk for incidents of child

labor

Human Rights ProtectionSupply Chain Risk ManagementResponsible Sourcing

Forced or compulsory labor

GRI 3:

Material Topics 2021

3-3 Management of material topics

Human Rights ProtectionSupply Chain Risk ManagementGRI 409:

Forced or Compulsory Labor

2016

409-1 Operations and suppliers at signi?cant risk for incidents of forced or

compulsory labor

Human Rights ProtectionSupply Chain Risk ManagementResponsible SourcingSecurity practices

GRI 3:

Material Topics 2021

3-3 Management of material topicsData OverviewGRI 410:

Security Practices 2016

410-1 Security personnel trained in human rights policies or proceduresData Overview

Right of indigenous peoples

GRI 3:

Material Topics 2021

3-3 Management of material topicsRural Revitalization and Social ContributionGRI 411:

Rights of Indigenous Peoples 2016

411-1 Incidents of violations involving rights of indigenous peoplesRural Revitalization and Social ContributionLocal communities

GRI 3:

Material Topics 2021

3-3 Management of material topicsRural Revitalization and Social ContributionGRI 413:

Local Communities 2016

413-1 Operations with local community engagement, impact assessments,

and development programs

Rural Revitalization and Social Contribution

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GRI StandardsDisclosuresLocationOmission

413-2 Operations with signi?cant actual and potential negative impacts onlocal communities

Not Covered In This Report

The company is not involved inrelated mattersSupplier social assessment

GRI 3:

Material Topics 2021

3-3 Management of material topics

Supply Chain Risk ManagementResponsible SourcingGRI 414:

Supplier Social Assessment 2016

414-1 New suppliers that were screened using social criteria

Supply Chain Risk ManagementResponsible SourcingData Overview414-2 Negative social impacts in the supply chain and actions taken

Supply Chain Risk ManagementResponsible SourcingPublic policy

GRI 3:

Material Topics 2021

3-3 Management of material topicsNot Covered In This Report

The company is not involved inrelated mattersGRI 415:

Public Policy 2016

415-1 Political contributionsNot Covered In This Report

The company is not involved inrelated matters

Customer health and safety

GRI 3:

Material Topics 2021

3-3 Management of material topicsProtection of Customer RightsGRI 416:

Customer Health and Safety 2016

416-1 Assessment of the health and safety impacts of product and service

categories

Protection of Customer Rights

416-2 Incidents of non-compliance concerning the health and safety im-

pacts of products and services

Protection of Customer RightsData OverviewMarketing and labeling

GRI 3:

Material Topics 2021

3-3 Management of material topicsResponsible MarketingGRI 417:

Marketing and Labeling 2016

417-1 Requirements for product and service information and labelingResponsible Marketing

417-2 Incidents of non-compliance concerning product and service infor-

mation and labeling

Responsible Marketing

417-3 Incidents of non-compliance concerning marketing communicationsResponsible MarketingCustomer privacy

GRI 3:

Material Topics 2021

3-3 Management of material topicsProtection of Customer RightsGRI 418:

Customer Privacy 2016

418-1 Substantiated complaints concerning breaches of customer privacy

and losses of customer data

Protection of Customer RightsData Overview

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ISDS IndexIFRS S1

Core ElementsDisclosure RecommendationsDisclosure Placement

Governance

a) The governance body(s) (which can include aboard, committee or equivalent body charged with governance) or individual(s)responsible for oversight of sustainability-related risks and opportunities.

Governance StructureRisk Control and Complianceb) Management's role in the governance processes, controls and procedures used to monitor, manage and oversee sustainabili-ty-related risks and opportunities.

Risk Control and Compliance

Strategy

a) The sustainability-related risks and opportunities that could reasonably be expected to a?ect the entity's prospects within thetime horizons—short, medium or long term.

Sustainable Development Risk Managementb) The current and anticipated e?ects of sustainability-related risks and opportunities on the entity's business model and valuechain, and where in the entity's business model and value chain sustainability-related risks and opportunities are concentrat-ed

Sustainable Development Risk Managementc) How the entity has responded to, and plans to respond to, sustainability-related risks and opportunities in its strategy anddecision-making, and the progress against plans the entity has disclosed in previous reporting periods, including quantitativeand qualitative information, and trade-o?s between sustainability-related risks and opportunities that the entity considered.

Sustainable Development Risk Managementd) The quantitative and qualitative e?ects of sustainability-related risks and opportunities on the entity's ?nancial position, ?-nancial performance and cash ?ows for the reporting period, and the sustainability-related risks and opportunities identi?edfor which there is a signi?cant risk of a material adjustment within the next annual reporting period to the carrying amountsof assets and liabilities reported in the related ?nancial statements, and how the entity expects its ?nancial position, ?nancialperformance and cash ?ows to change over the short, medium and long term, given its strategy to manage sustainability-re-lated risks and opportunities.

Not covered in the reporte) The resilience of the entity's strategy and its business model to those sustainability-related risksSustainable Development Risk Management

Risk Management

a) The processes and related policies the entity uses to identify, assess, prioritize and monitor sustainability-related risks, in-cluding information about: the inputs and parameters the entity uses，whether and how the entity uses scenario analysis toinform its identi?cation of sustainability-related risks, whether and how the entity prioritizes sustainability-related risks, howthe entity assesses the nature, likelihood and magnitude of the e?ects of those risks.

Sustainable Development Risk Management

Risk Control and Complianceb) The processes the entity uses to identify, assess, prioritize and monitor sustainability-related opportunities, including: wheth-er and how the entity uses scenario analysis to inform its identi?cation of sustainability-related opportunities.

Not covered in the reportc) The extent to which, and how, the processes the entity uses to identify, assess, prioritize and monitor sustainability-relatedrisks and opportunities are integrated into and inform the entity's overall risk management process.

Sustainable Development Risk Management

Risk Control and Compliance

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IFRS S2

Core ElementsDisclosure RecommendationsDisclosure Placement

Metrics and targets

a) Metrics required by an applicable IFRS Sustainability Disclosure Standard.

EnvironmentSocietyGovernanceb) Metrics the entity uses to measure and monitor sustainability-related risks or opportunities and its performance in relation tothat sustainability-related risk or opportunity.

EnvironmentSocietyGovernancec) Any targets the entity has set it is required to meet by law or regulation.

EnvironmentSocietyGovernance

Core ElementsDisclosure RecommendationsDisclosure Placement

Governance

a) The governance body(s) (which can include a board, committee or equivalent body charged with governance) or individual(s)responsible for oversight of climate-related risks and opportunities.

Governance StructureRisk Control and Complianceb) Management's role in the governance processes, controls and procedures used to monitor, manage and oversee climate-re-lated risks and opportunities.

Risk Control and Compliance

Strategy

a) The climate-related risks and opportunities that could reasonably be expected to a?ect the entity's prospects within timehorizons—short, medium or long term, whether the entity considers the risk to be a climate-related physical risk or cli-mate-related transition risk.

Sustainable Development Risk Managementb) The current and anticipated e?ects of climate-related risks and opportunities on the entity's business model and value chain,

and where in the entity's business model and value chain climate-related risks and opportunities are concentrated.

Sustainable Development Risk Managementc) Information about how the entity has responded to, and plans to respond to, climate-related risks and opportunities in itsstrategy and decision-making, including how the entity sets targets, how the entity is resourcing and quantitative and qualita-tive information about the disclosed progress of plans.

Sustainable Development Risk Management

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Core ElementsDisclosure RecommendationsDisclosure Placement

Strategy

d) The quantitative and qualitative e?ects of those climate-related risks and opportunities on the entity's ?nancial position,?nancial performance and cash ?ows for the reporting period, the climate-related risks and opportunities identi?ed inparagraph 16(a) for which there is a signi?cant risk of a material adjustment within the next annual reporting period to thecarrying amounts of assets and liabilities reported in the related ?nancial statements, and how the entity expects its ?nancialposition, ?nancial performance and cash ?ows to change over the short, medium and long term, given its strategy to manageclimate-related risks and opportunities.

Not covered in the report

e) The entity's assessment of its climate resilience, including the entity's assessment for its strategy and business model, thesigni?cant areas of uncertainty considered in the entity's assessment of its climate resilience and the entity's capacity toadjust or adapt its strategy and business model to climate change over the short, medium and long term. The entity shalluse climate-related scenario analysis to assess its climate resilience and disclose how and when the climate-related scenarioanalysis was carried out, including information about the inputs the entity used, the key assumptions the entity made in theanalysis and the reporting period in which the climate-related scenario analysis was carried out.

Sustainable Development Risk Management

Risk Management

a) The processes and related policies the entity uses to identify, assess, prioritize and monitor climate-related risks, includinginformation about: the inputs and parameters the entity uses, whether and how the entity uses climate-related scenario anal-ysis to inform its identi?cation of climate-related risks, whether and how the entity prioritizes climate-related risks, how theentity assesses the nature, likelihood and magnitude of the e?ects of those risks.

Sustainable Development Risk ManagementRisk Control and Complianceb) The processes the entity uses to identify, assess, prioritize and monitor climate-related opportunities, including informationabout whether and how the entity uses climate-related scenario analysis to inform its identi?cation of climate-related oppor-tunities.

Not covered in the reportc) The extent to which, and how, the processes for identifying, assessing, prioritizing and monitoring climate-related risks andopportunities are integrated into and inform the entity's overall risk management process.

Sustainable Development Risk Management

Risk Control and Compliance

Metrics and targets

a) The cross-industry metric categories of greenhouse gas emissions, internal carbon prices, the percentage of executive man-agement remuneration recognized in the current period that is linked to climate-related considerations, capital deploymenttowards climate-related risks and opportunities, the amount and percentage of assets or business activities vulnerable toclimate-related risks and opportunities.

Sustainable Development Risk Management

GHG Emissions Control

Governance Structureb) Industry-based metrics that are associated with one or more particular business models, activities or other common featuresthat characterize participation in an industry.

GHG Emissions Controlc) The quantitative and qualitative climate-related targets the entity has set or it is required to meet by law or regulation, prog-ress towards reaching the target, information about its performance, and each greenhouse gas emissions target.

Environment

Society

Governance

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SASB Index

SASB TopicsAccounting MetricsLocation

Energy Management in

Retail & Distribution

CG-MR-130a.1：

(1)Total energy consumed

(2)Percentage grid electricity

(3)Percentage renewable energy

GHG Emissions ControlData Overview

Data

Security

CG-MR-230a.1：

Discussion of management approach toidentifying and addressing data securityrisks

Protection of CustomerRightsCG-MR-230a.2：

(1) Number of data security breaches

(2) Percentage involving customers'person-

ally identi?able information (PII)

(3) Number of customers a?ected

Protection of CustomerRights

Fair Labor Practices

CG-MR-310a.1：

(1) Average hourly wage

(2) Percentage of in-store employees earning

minimum wage, by region

Not covered in the reportCG-MR-310a.2：

Employee turnover rate for in-store employ-ees

(1) Voluntary

(2) Involuntary

Data Overview

Amount of legal and regulatory ?nes andsettlements associated with labor law viola-tions

Human Rights Protection

SASB TopicsAccounting MetricsLocation

Workforce Diversity &Inclusion

CG-MR-330a.1：

Percentage of gender and racial/ethnicgroup representation for

(1) Management

(2) All other employees

Human Rights ProtectionData OverviewCG-MR-330a.2：

Amount of legal and regulatory ?nes andsettlements associated with employmentdiscrimination

Human Rights Protection

Product sourcing, Pack-aging, and Marketing

CG-MR-410a.1：

Revenue from products third-party certi?edto environmental and/or social sustainabilitystandards

Not covered in the reportCG-MR-410a.2：

Description of processes to assess and man-age risks and/or hazards associated withchemicals in products

Pollution Control and

Ecosystem ProtectionCG-MR-410a.3：

Description of strategies to reduce the envi-ronmental impact of packaging

Pollutants Emissions

ControlCG-MR-000.A：

(1)Number of retail locations

(2)Number of distribution centers

Not applicableCG-MR-000.B：

Total area of (m?):

(1)Retail space

(2)Distribution centers

Not applicable

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Indicators Reference for ESG Report of Listed Chinese CentralState-Owned Enterprises

Primary IndicatorsSecondary IndicatorsTertiary IndicatorsLocation

E.1resource Consump-

tion

E.1.1 Water Resources

E.1.1.1 Fresh-water consumptionData OverviewE.1.1.2 Circulating water consumptionNot Covered In This ReportE.1.1.3 The proportion of circulating water consumptionNot Covered In This ReportE.1.1.4 Water resource consumption intensity

2023 Environmental ImpactData OverviewE.1.2 Materials

E.1.2.1 Consumption of non-renewable materialsNot Covered In This ReportE.1.2.2 Consumption of toxic and hazardous materialsNot Covered In This ReportE.1.2.3 Material consumption intensityNot Covered In This Report

E.1.3 Energy

E.1.3.1 Fossil energy consumption

GHG Emissions ControlData OverviewE.1.3.2 Non-fossil energy consumption

GHG Emissions ControlData OverviewE.1.3.3 The proportion of non-fossil energy consumption

GHG Emissions ControlData OverviewE.1.3.4 The total energy consumption

GHG Emissions ControlData OverviewE.1.3.5 The energy consumption intensity2023 Environmental ImpactE.1.4 Packaging materials

E.1.4.1 The amount of packaging materials usedData OverviewE.1.4.2 Light-weighting and reduction of packaging materialsData Overview

E.2Pollution Control

E.2.1 Wastewater

E.2.1.1 The compliance status of wastewater dischargePollutants Emissions ControlE.2.1.2 Wastewater management and emission reduction measuresPollutants Emissions ControlE.2.1.3 Volume of wastewater dischargeData OverviewE.2.1.4 The discharge volume of wastewater pollutantsData OverviewE.2.1.5 Concentration of pollutants discharged in wastewaterData OverviewE.2.2 Exhaust Air

E.2.2.1 Compliance status of exhaust gas emissionsPollutants Emissions ControlE.2.2.2 Volume of air pollutants emittedData OverviewE.2.2.3 Concentration of air pollutants emittedData OverviewE.2.3 Solid Waste

E.2.3.1 Compliance with legal regulations on solid waste disposalPollutants Emissions ControlE.2.3.2 Management of general industrial solid wastePollutants Emissions ControlE.2.3.3 Disposal volume of general industrial solid wasteData OverviewE.2.3.4 Management of hazardous wastePollutants Emissions ControlE.2.3.5 Volume of hazardous waste disposedData Overview

Environment

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E.3Climate change

E.3.1 GHG Emissions

E.3.1.1 Sources and types of GHG GHG Emissions ControlE.3.1.2 Management of GHG Emissions

Net Zero StrategyGHG Emissions ControlEnergy Conservation and Emissions Reduction ActionPollutants Emissions ControlE.3.1.3 Scope 1 emissions

GHG Emissions ControlData OverviewE.3.1.4 Scope 2 emissions

GHG Emissions ControlData OverviewE.3.1.5 Scope 3 emissionsNot Covered In This ReportE.3.1.6 GHG emission intensity

2023 Environmental ImpactGHG Emissions ControlData OverviewE.3.2 Emission Reduction Man-agement

E.3.2.1 Management of GHG emission reduction

Net Zero StrategyGHG Emissions ControlEnergy Conservation and Emissions Reduction ActionPollutants Emissions ControlE.3.2.2 GHG emission reduction

GHG Emissions ControlData OverviewE.3.3 Environmental Rights Trad-ing

E.3.3.1 Participation in the carbon emissions trading marketNot Covered In This ReportE.3.3.2 Participation in the energy rights, water rights, and pollution rights tradingmarkets

Not Covered In This ReportE.3.3.3 Participation in green electricity tradingNot Covered In This ReportE.3.4 Climate-related Risk Man-agement

E.3.4.1 Climate-related Risk ManagementSustainable Development Risk ManagementE.4Biodiversity

E.4.1 Impact of production, ser-vices, and products on biodiver-sity

E.4.1.1 Impacts of production, services, and products on biodiversity

Biodiversity Protection"Forest-Pulp-Paper" Industry

E.5Measures for resourceand environmentalmanagement systems

E.5.1 Setting Low-Carbon De-velopment Goals and StrategicMeasures

E.5.1.1 Setting low-carbon development goals and strategic measuresNet Zero StrategyE.5.2 Resource managementmeasures

E.5.2.1 Water resource managementWater Resources Conservation

E.5.2.2 Material utilization management

"Forest-Pulp-Paper" IndustryTrade of Recycled Steel Materials

E.5.2.3 Energy utilization and energy e?ciency management

GHG Emissions ControlEnergy Conservation and Emissions Reduction ActionE.5.3 Energy-saving and carbonreduction monitoring, statisti-cal reporting, and assessmentsystem

E.5.3.1 Energy-saving and carbon reduction monitoring, statistical reporting, and

assessment system

GHG Emissions ControlEnergy Conservation and Emissions Reduction Action

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E.5Measures for resourceand environmentalmanagement systems

E.5.4 Green environmental ac-tions and measures

E.5.4.1 Clean productionPollutants Emissions ControlE.5.4.2 Green technology upgrading and recycling

"Forest-Pulp-Paper" IndustryTrade of Recycled Steel MaterialsE.5.4.3 Green building renovationNot Covered In This ReportE.5.4.4 Green o?ce and operations

Energy Conservation and Emissions Reduction ActionPollutants Emissions Control"Forest-Pulp-Paper" IndustryTrade of Recycled Steel MaterialsE.5.4.5 Green procurement and green supply chain management

"Forest-Pulp-Paper" IndustrySmarter and Advanced Supply Chain ServicesResponsible SourcingE.5.4.6 Public activities for environmental protectionPollutants Emissions ControlE.5.5 Green Low-Carbon Certi?-cation

E.5.5.1 Environmental management system certi?cationNot Covered In This ReportE.5.5.2 Green and Low-Carbon Enterprise Certi?cationNot Covered In This ReportE.5.5.3 Green and low-carbon product and service certi?cationEnergy Conservation and Emissions Reduction ActionE.5.6 Legal compliance in envi-ronmental matters

E.5.6.1 Emergency response plan for environmental incidents

All-Sta? Involved Occupational Health and Safety Manage-mentE.5.6.2 Environmental violations2023 Environmental ImpactSocietyPrimary IndicatorsSecondary IndicatorsTertiary IndicatorsLocation

S1Employee rights

S1.1 Employee recruitment andemployment

S1.1.1 Corporate recruitment policy and implementationHuman Rights ProtectionS1.1.2 Employee structure

Human Rights ProtectionData OverviewS1.1.3 Avoiding child labor and forced laborHuman Rights ProtectionS1.2 Employee compensationand bene?ts

S1.2.1 Compensation philosophy and policySmooth Career Development PathwaysS1.2.2 Working hours and rest and leave

Human Rights ProtectionSmooth Career Development PathwaysAll-Sta? Involved Occupational Health and Safety Manage-mentS1.2.3 Compensation and bene?ts guaranteeSmooth Career Development PathwaysS1.2.4 Employee democratic management

Human Rights ProtectionData OverviewS1.3 Employee health and safetyS1.3.1 Employee occupational health and safety management

All-Sta? Involved Occupational Health and Safety Manage-ment

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S1Employee rights

S1.3 Employee health and safety

S1.3.2 Employee safety risk prevention

All-Sta? Involved Occupational Health and Safety Manage-mentS1.3.3 Response to safety incidents and work-related injuries

All-Sta? Involved Occupational Health and Safety Manage-mentS1.3.4 Employee care and assistance

Human Rights ProtectionAll-Sta? Involved Occupational Health and Safety Manage-mentS1.4 Employee developmentand training

S1.4.1 Employee motivation and promotion policySmooth Career Development PathwaysS1.4.2 Employee education and trainingSmooth Career Development PathwaysS1.4.3 Employee career planning and job change supportSmooth Career Development PathwaysS1.5 Employee satisfaction

S1.5.1 Employee satisfaction survey

Human Rights ProtectionData OverviewS1.5.2 Labor disputesHuman Rights ProtectionS1.5.3 Employee turnover Data Overview

S2Product and servicemanagement

S2.1 Product safety and quality

S2.1.1 Production standard management policies and measures

Innovation-driven Development, Suppliers and ClientsSmooth Career Development PathwaysS2.1.2 Quality managementProtection of Customer RightsS2.1.3 Product recall and withdrawalNot Covered In This ReportS2.1.4 Negative incidents related to products or servicesProtection of Customer RightsS2.2 Customer service and rights

S2.2.1 Customer satisfactionProtection of Customer RightsS2.2.2 Customer complaints and handling

Protection of Customer RightsData OverviewS2.2.3 Customer information and privacy protection

Protection of Customer RightsData OverviewS2.3 Innovation development

S2.3.1 R&D and innovation management systemSmarter and Advanced Supply Chain ServicesS2.3.2 R&D investmentSmarter and Advanced Supply Chain ServicesS2.3.3 Innovation achievementsSmarter and Advanced Supply Chain ServicesS2.3.4 Intellectual property protectionSmarter and Advanced Supply Chain Services

S3Supply Chain Safetyand Management

S3.1 Supplier Management

S3.1.1 Supplier selection and managementResponsible SourcingS3.1.2 Number and distribution of suppliersData OverviewS3.2 Supply Chain Management

S3.2.1 Supply chain management policies and measures

Supply Chain Risk ManagementResponsible SourcingS3.2.2 Supply chain security assurance and emergency planSupply Chain Risk ManagementS3.2.3 Major risks and impacts (supply chain)Supply Chain Risk Management

S4Social contribution

S4.1 Tax payment situationS4.1.1 Tax payment 2023 Social Impact

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S4Social contribution

S4.2 Community co-building

S4.2.1 Policies and measures for participating in local community constructionRural Revitalization and Social ContributionS4.2.2 Contribution and impact on the local communityRural Revitalization and Social ContributionS4.3 Social welfare activities

S4.3.1 Policies and measures for participating in social welfare activities

Promote Health and Education, Support Urban SustainableDevelopmentS4.3.2 Investment and e?ectiveness in participating in social welfare activities

Promote Health and Education, Support Urban SustainableDevelopmentData OverviewS4.3.3 Construction of an accessible environmentNot Covered In This Report

S4.4 National strategy response

S4.4.1 Industrial transformation

Energy Conservation and Emissions Reduction ActionInnovation-driven Development, Suppliers and ClientsSupport Rural Revitalization Strategies with Industrial Re-source AdvantagesS4.4.2 Rural revitalization and regional collaborative development

Support Rural Revitalization Strategies with Industrial Re-source AdvantagesS4.4.3 Belt and Road initiative and overseas responsibility ful?llment

Promote Health and Education, Support Urban SustainableDevelopmentS4.4.4 Industry characteristics and other social responsibility ful?llment

Innovation-driven Development, Suppliers and ClientsRural Revitalization and Social Contribution

Primary IndicatorsSecondary IndicatorsTertiary IndicatorsLocation

G1Governance strategyand organizationalstructure

G1.1 Governance strategy andprocesses

G1.1.1 Governance strategy formulationGovernance StructureG1.1.2 Governance strategy supervision processGovernance StructureG1.1.3 Governance strategy approval and review processGovernance StructureG1.1.4 Leadership in Party-building The Party Development EndeavorsG1.2 Organizational structureand functions

G1.2.1 Ownership responsibilities

Governance StructureRisk Control and ComplianceG1.2.2 Board of directors, board of supervisors, and management structure andfunctions

Governance StructureG1.2.3 Appointment procedures and composition of the board of directors, boardof supervisors, and management

Governance StructureG1.3 Compensation manage-ment

G1.3.1 Compensation plan for directors and supervisorsGovernance StructureG1.3.2 Transparency of the board's compensationNot Covered In This ReportG1.3.3 Reasonableness of management compensation

Governance Structure

All-Sta? Involved Occupational Health and Safety Manage-

ment

Governance

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G2Standardized gover-nance

G2.1 Internal control

G2.1.1 Internal auditRisk Control and ComplianceG2.1.2 Internal control structure, mechanisms, and procedures

Risk Control and ComplianceComplaint Mechanism and Whistleblower ProtectionG2.2 Integrity construction

G2.2.1 Integrity construction systems and standards

Anti-Corruption and Anti-Commercial BriberyComplaint Mechanism and Whistleblower ProtectionG2.2.2 E?ectiveness of integrity construction measuresAnti-Corruption and Anti-Commercial BriberyG2.3 Fair competition

G2.3.1 Fair competition system and standards

Anti-Monopoly and Anti-Unfair CompetitionComplaint Mechanism and Whistleblower ProtectionG2.3.2 E?ectiveness of fair competition measuresAnti-Monopoly and Anti-Unfair Competition

G3Investor relationsmanagement andshareholder rights

G3.1 Investor relations manage-ment

G3.1.1 Investor relations management strategyInvestor RelationsG3.1.2 Investor communicationInvestor RelationsG3.1.3 Construction of investor relations management departmentInvestor RelationsG3.2 Shareholder rights

G3.2.1 Shareholders' (general) meeting Governance StructureG3.2.2 Shareholder communication

Investor RelationsCommunications with StakeholdersG3.2.3 Shareholder's right to know and participate in decision-making

Governance StructureInvestor RelationsG3.3 Creditor rights

G3.3.1 Credit situationNot Covered In This ReportG3.3.2 Bond market performance Not Covered In This Report

G4Information disclo-sure transparency

G4.1 Information disclosuresystem

G4.1.1 Financial information disclosureInvestor RelationsG4.1.2 Non-?nancial information disclosureInvestor RelationsG4.2 Quality of information dis-closure

G4.2.1 Regular supervision, audit, and evaluation of all disclosed informationCovered in the 2023 Annual Report

G5Compliant operationand risk management

G5.1 Compliant operation

G5.1.1 Compliant operation system

Risk Control and ComplianceAnti-Corruption and Anti-Commercial BriberyG5.1.2 Construction of the compliance system

Risk Control and ComplianceAnti-Corruption and Anti-Commercial BriberyG5.1.3 Speci?c compliance review procedures

Risk Control and ComplianceAnti-Corruption and Anti-Commercial BriberyG5.2 Risk management

G5.2.1 Risk identi?cation and early warning

Risk Control and ComplianceSustainable Development Risk ManagementG5.2.2 Risk control and tracking

Risk Control and ComplianceSustainable Development Risk ManagementG5.2.3 Risk reporting and management

Risk Control and ComplianceAnti-Commercial Bribery and Anti-Unfair CompetitionData Overview