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联合水务:2023Environmental,Social and Governance(ESG)Report 下载公告
公告日期:2024-04-29

About United Water

Vision

Jiangsu United Water Technology Co., Ltd. (Stock Code: 603291.SH) is a comprehensive water utility company with a broad range of operations that include tap water production and supply, sewagetreatment, resource recovery, and the management of water environments and aquatic ecosystems in river and lake basins. Through investment, construction, and management that span from thesource to the tap, the Company has established a complete industrial chain within the water utility sector.

At present, United Water boasts agreements and planned processing capabilities for tap water supply, sewage treatment, and resource recovery projects that total approximately 2.7 million tons perday. These projects span 9 provinces and 16 cities in China, encompassing 26 operating companies and a water supply operation in Dhaka, the capital of Bangladesh.

United Water champions a win-win model that aligns the interests of society, investors, employees, and customers to foster reforms and growth within China's water utility industry. The Companyconsistently applies an investment philosophy that merges Eastern and Western management ideals, places a high value on human resources, and underlines the importance of efficiency andconservation. This approach ensures the provision of high-quality water to consumers and eco-friendly water treatment services that contribute to environmental protection.

United Water strives to be a great company!

Corporate Core Values

Unity, Integrity, Endeavor, and Mutual SuccessGrowthReturnExcellenceAmbitionTalents

Table of Contents

?

1?41?71?81?9

2?1

?

3?1

Green PlanetReliable Partner Excellence in OperationsAdvanced Technology

?

Message from the ChairmanOur 20-Year JourneyCorporate Core ValuesBusiness Overview

Our Achievements in 2023ESG Management

United Water: Twenty KeyFigures in Two DecadesAppendix

Transcending Borders,United by Water

Water Resource ManagementStable Water SupplyCorporate GovernanceSmart Water UtilitiesEco-Environmental ProtectionPremium ServicesBusiness EthicsR&D InnovationClimate ActionCommunity InvolvementResponsible ProcurementIntellectual Property Rights

Talent Oriented

Employment & Protectionof Employee Rights

Diversity & Employee CareTalent Cultivation &DevelopmentWaste ManagementLine of Safety DefenseGreen Philosophy AdvocacyEnhanced EnvironmentalManagement

Message from the ChairmanOur 20-Year Journey03Corporate Core ValuesESG ManagementOur Achievements in 2023Business OverviewJiangsu United Water Technology Co., Ltd.

Sustainability: Bringing "Greatness" Within Reach

Chairman and CEO of United Water

Phillip

Weijing Yu

Message from the Chairman

The year 2023 has been a landmark year for United Water, highlighted by our successfuldebut on the Shanghai Stock Exchange, ascending to a new level of high-qualitydevelopment. Spanning two decades from its inception to growth, we have adhered tothe service philosophy of "providing high-quality water and environmentally friendly watertreatment services." In areas such as investment, construction, operation, and technicalservices within the water utility industry, the Company has cultivated unique core competitivestrengths. As a publicly-listed company, we are committed to continuing regulatedoperations, constantly enhancing our corporate governance and operational efficiency andachieving a harmonious integration of maximizing social contributions, shareholder interests,and customer value.In our operational sphere and along our value chain, United Water has consistently upheldresponsible practices, contributing positively to the economy, the environment, and societyat large. Regarding environmental protection, in response to goals aimed at reaching acarbon peak and achieving carbon neutrality, we pursue environmentally sound water utilityoperation models, embrace cutting-edge water treatment technologies and equipment, andenhance the efficiency and reuse of water resources. These efforts minimize wastewaterdischarge and pollution, improve aquatic ecosystems, and safeguard water environments.From a social perspective, our management ethos of "delivering high-quality water andservices with integrity" drives us to continually elevate service standards and fostercustomer trust and satisfaction. Our active participation in community building, publicservice initiatives, and support of education, healthcare, and poverty eradication reflects ourdedication to social stewardship. Since inception, we have prioritized our employees' rights

and welfare, fostering an engaging work atmosphere, refining training and rewards systems,and amplifying our workforce's sense of fulfillment and contentment.Since going public, we have steadfastly adhered to the tenets of standardization, transparency,efficiency and responsible governance. We've consistently enhanced our governance structuresand systems, reinforced internal controls and risk management and protected the legitimaterights and interests of our shareholders. Our commitment to fair competition has resulted inthe continuous improvement of our corporate governance standards. As part of our dedicationto better integrate Environmental, Social, and Governance (ESG) initiatives, we've transformedthe "Strategic Committee" into the "Strategy and ESG Committee," thereby establishing arobust framework for ESG management and decision-making. Moreover, we've established anESG working group dedicated to ensuring that our ESG goals are not only set but effectivelyrealized and implemented.As a demand of our era, sustainable development provides us with the "broadest perspective"to scrutinize our corporate strategy and actions, standing as a crucial cornerstone on our pathto "Greatness". In 2024, United Water welcomes the dawn of another two decades. Guided byprinciples of sustainability and a commitment to responsibility, we are steadfast in our journeytowards realizing our vision of becoming a GREAT water utility company. With unwaveringdedication, we embark on the next twenty years of excellence and success.

Message from the ChairmanOur 20-Year Journey

Corporate Core ValuesESG ManagementOur Achievements in 2023Business OverviewJiangsu United Water Technology Co., Ltd.

?United Water was established.2003

2011

2015

2020

2023

2008

2014

2018

2022

2019

2004

2012

2016

2017

2021

2013

2009

2006

Our 20-Year Journey

Over the past two decades, United Water has bravely navigated the industry's challenging currents and confronted its formidablewaves. With the cutting of a red ribbon twenty years ago, we embarked on an ambitious journey, bringing a newcomer's enthusiasmand a commitment to evolve with the times. Reflecting on our journey, we've advanced with resolve, overcome obstacles, andcelebrated significant achievements, broadening our reach throughout numerous provinces in China and other Belt and Roadcountries in South and Southeast Asia. These twenty years represent the vibrancy of our youth and the foundation from which wesoar to new heights!

?

Signed the first water utility project – the urbanwater supply project in Suqian City, JiangsuProvince.

?

Became a member of the Shanghai Water ResourcesFoundation (SWRF).

?The IFC of the World Bank Group became a newshareholder in United Water.

?

Featured on the "Sullivan 2020 China NewInfrastructure Enterprise List".

?Ventured into water environment management withthe north moat ecological restoration project inJingzhou City, Hubei Province.?Signed the industrial and domestic wastewatertreatment project in Jingzhou Economic andTechnological Development Zone, Hubei Province.Signed the wastewater treatment project inNuanquan Industrial Park, Ningxia.?Signed the water supply EPC+O project in XinmiCity, Henan Province.

?Signed the urban sewage treatment and reclaimedwater reuse project in Quwo County, ShanxiProvince.

?Initiated the process for listing A-shares; engagedin the sewage treatment project in Xinjiang CountyCoal Chemical Industrial Park, Shanxi Province;acquired the Siyuan water supply project inXianning City, Hubei Province.

?Signed the first integrated urban water supply anddrainage project – the water supply and drainage PPPproject in Jishan County, Shanxi Province.

?Established Shanghai Boruisi Environmental TechnologyCo., Ltd.

?Listed on the main board of A-sharesat the Shanghai Stock Exchange..

?

Signed the urban and rural integrated water supplyEPC+O projects in Pinghe County and Nanjing County,Fujian Province.?Began water operational services for the Dhaka NewTown PPP water supply project in Bangladesh.?Signed the first overseas water utility project – the DhakaNew Town PPP water supply project in Bangladesh.

?Received the International Finance Corporation (IFC) of the World BankGroup's "2014 Business of Change Award".

?

Recognized as the "Annual Growth Enterprise in Water Services for Smalland Medium Cities" by China Water Network.?Signed the industrial cluster water supply project in Sanmenxia City,Henan Province.?Signed the coal chemical industrial park water supply project in XinjiangCounty, Shanxi Province.

?Signed the Gengche sewage treatment project in Suqian City,Jiangsu Province, and acquired the urban sewage treatmentproject in Ruichang City, Jiangxi Province.

?Signed the sewage treatment and reclaimed water reuseproject in Ningxia Ecological Textile Demonstration Park.?Signed the first sewage treatment endeavor –the wastewater treatment project in TongxiangEconomic Development Zone, Zhejiang Province.

?Signed the urban sewage treatment project in SuizhouCity, Hubei Province.

?Signed the urban water supply project in Xianning City,Hubei Province.

Message from the ChairmanOur 20-Year Journey

Corporate Core ValuesESG ManagementOur Achievements in 2023Business OverviewJiangsu United Water Technology Co., Ltd.

Corporate Core Values

"Unity, Integrity, Striving, and Mutual Success" represent the essence ofUnited Water, forged through practical actions over its 20-year journey ofrobust development. They are the guiding principles and core values thathave driven United Water employees to strive for the Company's sustaineddevelopment since its inception.In 2014, these four core values were first announced and disseminatedthroughout the Group after being initiated by Group headquarters, craftedthrough a collective writing process and refined discussions. In July 2023,Mr. Phillip Weijing Yu, the Chairman and President of the Group, led seniormanagement from the headquarters and key regional managers to revisit thecore values of "Unity, Integrity, Striving, and Mutual Success," and initiated adiscussion on specific behaviors guided by these values."I am part of United Water, and this is how we understand and embody ourcorporate culture values!" After extensive internal discussions, United Waterfinalized its definition of the core values of corporate culture, along with thebehaviors "What We Advocate" and "What We Oppose," serving as guidelinesand standards for the daily actions of all United Water employees. Followingthe announcement of the core values and behavioral descriptions acrossthe entire group, a surge of enthusiasm for learning about these core valuesswept through the Company's Shanghai headquarters and all the regionalcompanies and departments.Recalling past achievements, we're inspired; facing the future's grand plans,we're ready to lead. To truly embody our core corporate values, we mustengage "wholeheartedly" in understanding and practicing them, allowingthese values to become the powerful motivational force that drives all of usat United Water. This is the real significance behind our exploration of thecore values' definitions and associated behaviors. Moving forward, UnitedWater will further cultivate a positive learning environment throughout thecompany, continually expanding the variety of learning methods. Our goal isto deepen, actualize, and personalize the learning of the corporate culture,boosting every employee's sense of identity, belonging, and happiness. Bysolidifying our spiritual foundation and steering our collective mindset, weaim to contribute to high-quality growth, adding a significant chapter in thewater services industry in this new era.

A commitment tothe collectiveinterest and a broad

perspective

Mutual respect,active communication,and embracing diversity

Close collaboration,

striving togetherto achieve shared goals

Embrace the corporate culture and implement the Company's vision and mission.Keep pace with the Company's development, integrating personal work objectives withthe Company's goals, striving to align individual actions with the collective interests.Possess a strong sense of ownership, ensuring any actions detrimental to the Company'sinterests are promptly reported and resolutely prevented to safeguard the Company'sbenefits.

Placing personal or narrow interests first, showing indifference to the Company'sobjectives and collective benefits.Ignoring behaviors that harm the Company's interests or tarnish its image, notreporting or addressing issues and allowing situations to worsen.

Fail to communicate or seek help when unable to complete tasks on one's own,resulting in working in isolation and merely going through the motions.Overly concerned with delineating responsibilities, passing the buck when dutiesoverlap or problems arise, yet claiming credit alone when it comes to honors. Whenconflicts occur in work, consider issues solely from an individual perspective anddisregard the overall work goals.Exhibiting misguided individualism, considering oneself as the core and crucialelement, and emphasizing one's own role above all.

Disregarding constructive feedback, interpreting alternative viewpoints as personalcriticism and even retaliating against them.When facing problems, lacking constructive, clear opinions or suggestions, and notactively seeking solutions. Instead, engaging in private complaints and spreadingnegative sentiments.Forming cliques and causing divisions, criticizing colleagues behind their backs,spreading rumors and trouble, and undermining unity.Insulting, threatening, harassing colleagues, or even engaging in physical altercations.

Listen attentively to the views of others, think from their perspective, communicateactively, and make positive changes aligned with the actual situation.Understand others' work, acknowledge their contributions, support their growth, andexpress gratitude for their help.During company meetings, actively contribute ideas and share personal thoughts, andfirmly carry out the decisions made.

Coordinate seamlessly between processes and collaborate effectively. Proactively fillroles in work gaps and fully leverage individual strengths. Mobilize resources from allparties to address issues and accomplish work goals.Comply with job allocations, and ensure thorough and comprehensive handovers in linewith procedures and processes.Engage actively in mentorship and readily share experiences and information. Offeradvice and support to others and assist in overcoming difficulties and challenges, helpingthem enhance work quality.

SupportRejectUnity

Message from the ChairmanOur 20-Year Journey

Corporate Core ValuesESG ManagementOur Achievements in 2023Business Overview

Jiangsu United Water Technology Co., Ltd.

Integrity

Endeavor

Mutual Success

SupportSupport

Support

Reject Reject

Reject

Strictly comply with

national laws andregulations as well ascompany policies and

procedures

Proactive,pioneering, andinnovative

By sharing successesand challenges,employees and theCompany empowereach other and fostercollective growth

Benefit each other,develop throughcooperation, andcontribute to society

Facing difficultiesfearlessly, confrontingchallenges head-on,embracing significantresponsibilities withcourage, and striving

tirelesslyBe pragmatic andconsistent in words and

actions

Adhere to professional

ethics and faithfullyfulfill job responsibilities

Engaging in illegal or disorderly conduct, failing to learn,adhere to company regulations, or fulfill job duties.Taking advantage of loopholes in company policies,engaging in fraud or deception for personal gain.

Fabricating or utilizing false data to create fictitious workachievements. Deliberately distorting, exaggerating, orfabricating facts, generating or spreading rumors.

Ignoring, concealing, or covering up fraudulent activities.

Utilizing deceptive tactics to mislead and fostercooperation between the Company and unqualifiedsuppliers or clients. Encouraging or enticing suppliers,distributors, intermediaries, clients, or partners tocollaborate with competitors or peers in the industry.

Violating professional ethics by leveraging one's positionfor personal gain.

Unauthorized probing, leaking, disseminating, orspreading the Company's trade secrets and confidentialinformation.

Establishing employment relationships with othercompanies without the Company's consent, directly orindirectly investing, operating, holding positions, owningshares, or serving as a representative or advisor in othercompanies or organizations that have business relationswith or are in direct or indirect competition with theCompany.

Abide by laws and regulations, diligentlystudy and strictly follow company rules andprocedures and fulfill job responsibilitiesas per position requirements.Remind and stop any behavior thatviolates rules and regulations immediately.

Engage deeply in acquiring business expertise and skillenhancement, focusing on practical application, embracinginnovation and constantly improving work performance.Conduct regular retrospectives to gather insights andlessons learned and persistently refine work practices andprocesses.

Value and protect the Company’s reputation and image.Actively embody the corporate culture and values,and inspire colleagues to have positive ideas and takeconstructive actions.Have a strong sense of collective pride, strive for honorsfor the Company, care for, and contribute to its long-termdevelopment, achieving mutual success with the Company.

Securing benefits for the Company while ensuring amutually beneficial relationship and long-term cooperationwith suppliers and clients.Actively participate in social welfare activities and servecommunity groups. This not only contributes to societybut also increases corporate reputation and recognition,enhancing the Company's public image.

Eagerly challenge oneself with higher work goals andwelcome new tasks with enthusiasm.When faced with difficulties and challenges, embrace themdirectly, make bold breakthroughs, dedicate completeefforts to resolving issues and seek solutions to fulfill tasks.When multitasking, prioritize tasks based on urgency andimportance, plan work schedules logically and completetasks in an organized and effective manner.

Refusing to learn and improve, stagnating in past achievements, adheringto old ways and being stubbornly conservative, content with the statusquo and giving up on making an effort.Facing issues without in-depth understanding or research, settling forsuperficial solutions.Lacking work enthusiasm, procrastinating, passively underperforming,and completing tasks only under direct supervision. Demonstrating inertiain thought, excessive reliance on the direction of others, and a lack ofinitiative in problem-solving.

Withholding information and failing in communication and reportingduties, which delays the opportunity to solve problems.Putting off tasks at the sign of trouble, making excuses when heldaccountable, procrastinating, being overly cautious and showing fear incritical moments.Blindly charging ahead, boasting about oneself and being overlyambitious for grand achievements.

Turning a blind eye to behaviors and remarks that damage theCompany's image or even endorsing them.

Focusing solely on short-term gains, lacking team spirit and long-termvision, and pursuing individual agendas.Setting corporate profits against social contributions, demonstratingnarrow-minded thinking.

Not adhering to strict personal conduct, making statements or actionsthat bring negative consequences to the Company, or even spreadingremarks that undermine the Company's image.Showing disinterest in the Company's business and development,not actively participating in company-organized activities, and oftenremaining detached from the group.

Follow up on work progress promptly,complete tasks on time, and ensure workdata and results are accurate and reliable.Be consistent in words and actions, andtreat suppliers, clients, superiors, and othercolleagues with sincerity.

Fulfill work responsibilities as per jobrequirements without seeking personal gain.Demonstrate a strong commitment toexecution, ensuring tasks are completed ontime without compromise.

Promptly and truthfully inform the companyof any positions or job changes of parents,spouses, children, or other relatives incompanies with potential conflicts of interest,as well as any other situations that may posea conflict of interest.

Business Overview

Key Operational Details

Water supply plants

Sewage treatment plants

2,100,000

tons per day

Water supply contractual capacity

905,000

tons per day

Completed water supply capacity

1,231,738.82

square meters

Water environment treatment

Total active patents

483,000

tons per day

Completed sewage treatment capacity

600,000

tons per day

Sewage treatment contractual capacity

As of the end of 2023,

Overseas

Shanghai, China(Headquarters)

China

OverseasBangladesh

2.7

million tons per day

Contractual capacity: Approximately

1.4

million tons per day

Completed capacity

Helan, NingxiaHongze, NingxiaSanmenxia, HenanHenan, XinmiLinfen, ShanxiXinjiang,ShanxiJishan,ShanxiSuqian, JiangsuXianning, HubeiSuizhou, HubeiJingzhou, HubeiTongxiang,ZhejiangRuichang, JiangxiZhangzhou, FujianHuaibei, AnhuiShenzhen, Guangdong

Message from the ChairmanOur 20-Year Journey

Corporate Core ValuesESG ManagementOur Achievements in 2023Business OverviewJiangsu United Water Technology Co., Ltd.

The trade union of Xianning United Water Co., Ltd. was commendedas an "Advanced Collective of City's Trade Unions for 2022" by theXianning Municipal Federation of Trade Unions.

Xianning United Water Co., Ltd. and Xianning United MunicipalEngineering Co., Ltd. were put on the "Xianning City CredibleEnterprises" list for 2022.

Xianning United Water Co., Ltd. and Xianning Siyuan Water Co., Ltd.achieved third place in a ranking of water usage efficiency among 19national high-tech zones in Hubei Province.

Sanmenxia United Water Co., Ltd. was awarded the title of"Sanmenxia City Garden Unit" by the Sanmenxia Municipal UrbanManagement Bureau.

Sanmenxia United Water Co., Ltd. received commendation as an"Advanced Unit in Urban Water Supply and Sanitation Management"from the Sanmenxia Municipal Health and Family PlanningSupervision Bureau.

Our Achievements

in 2023

United Water was honored with the title of "Model Workers'Home of Jiangsu Province" by the Jiangsu Provincial Federationof Trade Unions.

United Water garnered the "2023 Suqian City Mayor QualityAward" and the "2023 Suqian City Quality ManagementExcellence Award".

United Water Suqian Water Supply Company won the titlesof "Harmonious Labor Enterprise of Jiangsu Province" and"Advanced Mass Sports Unit of Suqian City" .

The wastewater treatment plant renovation project in NuanquanIndustrial Park, Helan County, with a capacity of 25,000 tons/day, undertaken by Suqian United Municipal Engineering Co.,Ltd., was lauded with the "2023 Suqian City 'Xiangyu Cup'Quality Engineering Award".

Suqian Gengche Wastewater Treatment Co., Ltd. was recognizedas a "2023 Municipal Water-Saving Enterprise" by the SuqianMunicipal Water Resources Bureau and the Suqian MunicipalIndustry and Information Technology Bureau.

Xianning United Water Co., Ltd. was bestowed the title of "2022Loving Enterprise" by the Xianning Volunteer Association.

Total assets

RMB3,635.14million

Operating income

RMB

1,127.81

million

Operating profit

RMB

214.44

million

Total tax

RMB

109.87

million

Message from the ChairmanOur 20-Year Journey

Corporate Core ValuesESG ManagementOur Achievements in 2023Business Overview

Jiangsu United Water Technology Co., Ltd.

Message from the ChairmanOur 20-Year Journey

Corporate Core ValuesESG ManagementOur Achievements in 2023Business OverviewJiangsu United Water Technology Co., Ltd.

ESG ManagementTo elevate our ESG governance, United Water has instituted a three-tiered structure comprising supervision,management, and implementation, with clearly defined roles and responsibilities. We have also established a Strategyand ESG Committee at the board level, ensuring the effective enactment of ESG initiatives.

United Water is deeply committed to engaging with all stakeholders. By analyzing our operational and managerial spectrum, issue relevance, and a multitude of impact factors,we pinpoint and engage with key internal and external stakeholders. Through diverse communication channels, we grasp stakeholder expectations and needs, thereby fosteringharmonious and mutually beneficial relationships.

Government &Regulatory BodiesOversee and approve ESG-related policies and programs.

Steer the Company by formulating ESG strategies, monitoring progress, and evaluating effectiveness;Report to the board and aid in the identification and assessment of ESG-related risks and opportunities.

Under the Strategic and ESG Committee's guidance, engage with the Securities Affairs Department,various functional departments, and project companies to advance the actualization of ESG objectives.

United Water Board of Directors

Strategy and ESG Committee

ESG Working Group

Stakeholder Engagement

StakeholdersExpectations & RequirementsCommunication MethodsResponse Measures

Shareholders &Investors

Suppliers &Partners

Employees

NaturalEnvironment

Communities & theGeneral Public

Customers

?Operate within legal and compliance frameworks?Generate social value

?Align with national strategies

?Deliver consistent and reliable returns?Maintain transparency and openness in information?Mitigate operational risks

?Provide a reliable water supply of high quality

?Ensure up-to-standard discharge of wastewater

?Cultivate a favorable business climate?Offer exceptional customer service

?Uphold openness, transparency, and ethical standards?Supply high-quality products and services?Pursue mutual benefits and collaborative success

?Safeguard fundamental rights and interests?Promote occupational health and workplace safety?Encourage professional growth and skill development?Emphasize employee well-being and opencommunication

?Regular exchanges and updates?Timely reporting schedules?Comprehensive site evaluations

?Compliance-focused operational management?Welcoming of regulatory oversight?Fulfillment of governmental managementdirectives?Proactive engagement with national strategies?Prudent business operations?Exploration of profit enhancement possibilities?Consistent dissemination of reports andcorporate updates?Intensified investor relations

?Commitment to excellence in products andservices?Attentiveness to customer needs?Defense of consumer rights

?Strengthening of supplier management?Establishment of a responsible supply chain?Encouragement of supplier development?Offering a competitive compensation andbenefits package?Provision of opportunities for learning andcareer advancement?Guaranteeing employee health and safety?Prioritizing employee engagement and dialogue?Advancement of water treatment services?Promotion of water resource recycling?Innovation in eco-friendly technologies?Adoption of low-carbon and sustainablepractices?Advocacy for water conservation awareness

?Management of rural water environments?Participation in charitable and volunteer services?Contributions to philanthropy and communitysupport

?Transparent disclosure of information?Inclusive shareholder assemblies?Detailed performance briefing events?Interactive investor relations platforms

?Customer satisfaction polling?Efficient feedback and grievance resolutionprocesses?Personalized customer outreach communications?Accessibility to open information

?Daily dialogues and interactions?Strategic collaborative efforts?Sector-specific networking events

?Accessible communication mailbox?Representation in employee congress?Employee activities

?Thorough environmental impact evaluations?Publicly accessible environmental data?Campaigns to raise environmental consciousness

?Dissemination of public advisories?Initiatives for community volunteerism

?Conserve water resources?Improve ecological environment?Address climate change challenges?Promote resource recycling

?Support initiatives for rural revitalization?Engage in philanthropic endeavors?Support community development

Message from the ChairmanOur 20-Year Journey

Corporate Core ValuesESG ManagementOur Achievements in 2023Business OverviewJiangsu United Water Technology Co., Ltd.

Governance DimensionEnvironmental DimensionSocial Dimension

Sustainability Materiality Assessment

Approach

Materiality Matrix

United Water employs a rigorous issue analysis process toprecisely identify and assess critical issues relevant to its owndevelopment. Considering the Company's current businesstrajectory, macroeconomic policies, peer benchmarks, andglobal capital market trends in ESG ratings, United Waterhas methodically identified 26 key issues that affect boththe organization and its stakeholders. The Company has alsogathered pertinent feedback from various stakeholders—including employees, investors, industry partners, regulatorybodies and non-governmental organizations—throughcomprehensive surveys. This feedback is used to pinpoint andprioritize substantive issues, which are then addressed in thisreport with clear management strategies designed to enhancethe Company's ESG performance and better meet stakeholderexpectations and needs.

Importance to stakeholders

Importance to United Water’s sustainable development

Identify and catalog significant sustainability concernswithin the Company and analyze stakeholder interest tocompile a list of 26 critical issues.

Conduct stakeholder surveys to merge the perspectivesof the "importance to United Water’s sustainabledevelopment" with the "importance to stakeholders," aidingin issue prioritization.

Determine the significance of substantive issues throughthorough evaluation and analysis, articulate variousmanagement strategies, and concentrate on transparentreporting and responses.

Identification

Evaluation

Response

Governance

Environmental

Enhance governance levelProtect investor rightsEnsure compliance and robust operationsPromote fair competitionCombat corruption and fraudManage supply chain effectively

Social

Boost technological innovationSafeguard intellectual property rightsImprove water quality managementMaintain pipeline network operationalImprove the business environmentEnhance privacy and information securityUphold employee rightsFocus on employee care and developmentEnsure occupational health and safetyFoster collaborative success and establish win-win partnershipsAlign with national strategiesEncourage volunteerism and public welfare

Strengthen the environmental management systemAddress climate change challengesManage water resources effectivelyPromote energy efficiency and reduce consumptionImplement effective waste managementInvest in green technology research and developmentConserve biodiversityPromote green environmental practices

Ensuring a stable water supply is a fundamental aspect of public welfare. At the dawn of 2023, Dhaka's Purbachal new township,Bangladesh's bustling capital, witnessed the inauguration of a pristine and reliable water ?ow. This initiative stands as a testament to theexpertise and dedication of United Water's international construction team, propelling a sustained impetus for enhanced living standardsand the economic growth of local communities and enterprises.

In alignment with The Purbachal New Township is immediate and long-term water requirements, the projectprovides a designed capacity of 340,000 tons of water daily. The initial phase involves sourcing from 15 deep tubewells, each over 250 meters deep, with subsequent phases planning to incorporate water from treatment plantsto guarantee superior water extraction standards. The project includes a state-of-the-art water quality testingcenter capable of conducting 10 routine tests for microbial indicators, residual chlorine, and turbidity, as well asover 50 other water quality parameters, thereby setting a new benchmark for water quality testing in Bangladesh.Throughout its operations, the Company diligently complies with contractual testing protocols and schedules,fine-tunes dosing concentrations to meet user distribution needs, routinely purges the network, and ensures thedelivery of potable water that meets all quality criteria.Committed to the ethos of "delivering high-quality water and services with integrity," the Company has assembleda proficient installation team to oversee the full spectrum of user services—from application and survey toinstallation, approval, and water delivery—often completing the process within the same day to amplify customersatisfaction. United Water has established a customer service and billing center to offer comprehensive services,including consultations, transaction management and payments. It has also introduced a user-friendly website forstreamlined online transactions. A responsive hotline has been implemented, along with a work order processingsystem, to guarantee resolutions to customer issues within a 24-hour timeframe. Furthermore, the Companyproactively facilitates door-to-door outreach to gauge customer needs and address any concerns related to waterusage, taking customer satisfaction as the benchmark for its service quality.

Phase I Project Completion Ceremony

340,000

Designing water treatmentfor a capacity of

tons per day

The Bangladesh Water Supply Project

Transcending Borders, United by Water

On-site signing of PPP contract

Launching the First Water Utility Public-Private Partnership (PPP) Project

Origin

On November 11, 2019, United Water formally entered intoa PPP agreement with the Government of Bangladeshin Dhaka to develop water supply and distributioninfrastructure in Purbachal new township. This venture, acollaborative investment, construction, and managementeffort in the partnership with Bangladesh's Delcot Group,represents the country's inaugural venture into water-related PPP projects. It is also United Water's first foray intointernational investment, construction, and management ofa water supply initiative. The project celebrated the receiptof its Phase I Commercial Operation Certificate on January30, 2023, meeting the objective of launching the project'sPhase I while simultaneously laying the groundwork forPhase II.

The successful conclusion of Phase I signifies United Water's progression from the construction to the operational stage, epitomizing theCompany's commitment to international projects. This milestone has enriched the Company's experience in global market expansion andproject establishment.

Ensuring Clean Tap Water for the New TownshipQuality

hours

Addressing user concernswithin

Special TopicGreen PlanetReliable Partner Excellent OperationAdvanced TechnologyTalent Oriented

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

"For the past year, I've been immersed in this incredible team, and it has been an immensely fulfilling journey. As anengineer, being part of such a dynamic group is the ideal setting to deepen my understanding of water supply projects andfurther develop my professional skills."

—Habibur Rahman, Project Production Supervisor

The year 2023 marks the decade milestone of the Belt and Road Initiative, with Bangladesh standing as the first South Asian nationto engage with this cooperative endeavor. Reflecting on this moment, the successful launch of the Purbachal new township watersupply project takes on special importance. The principles of harmony, coexistence, and mutual benefit, long cherished by the Chinese,have been fundamental to the triumph of United Water' inaugural international PPP venture. The Company is confident that trust andcollaboration will pave the way for greater opportunities and shared prosperity, charting an improved course for development.

Fostering Deep Community Sentiments

Connection

With the completion of the Purbachal New Town water supply and distribution project, over two millionresidents will enjoy access to high-quality water services. This transition from previous challenges inaccessing potable water to the provision of safe and reliable water marks a significant uplift in theresidents' quality of life. This public utility project has not only improved the standard of living but hasalso bolstered social welfare and development, sparking optimism for the future among both residentsand business owners. Although the complex network of water pipelines is hidden underground, theprofound impact on the well-being and security of the Bangladeshi people is clear and profound.2,000,000residents

Enhancing water access for

United Water, committed to the principles of mutual growth and prosperity, has created 601 localjobs through its recruitment and construction endeavors. Throughout the project, the Companyhas prioritized fostering a workplace that values diversity and inclusivity, offering cultural sensitivitytraining to enhance communication and teamwork.The project's long-term impact is far-reaching, extending beyond immediate infrastructureenhancements and community enrichment. It serves as a conduit for nurturing local talent withinthe water utility industry. Habibur Rahman, a local project hire, has benefited from extensivetechnical support and knowledge exchange. Moreover, United Water has formed a collaborativeeffort with Yangzhou University, appointing two Bangladeshi students in China as managementinterns. After completing a year of rotational training at the Company's domestic projects, thesestudents will return to contribute to the New Town water supply project, equipped with cutting-edge management insights and experiences.

job opportunities

Creating

Chairman and CEO of United Water Phillip Weijing Yu and his delegation were at the Bangladesh project site

Green PlanetReliable Partner Excellent OperationAdvanced TechnologyTalent Oriented

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Special Topic

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Special TopicGreen PlanetReliable Partner Excellence in OperationsAdvanced TechnologyTalent Oriented

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

reen

Planet

G

RMB

141.739

million

Annual environmental protection investments

144.19

million tons

Annual wastewater treatment volume

0.67

tons of CO

equivalent per RMB 10,000

CO

emissions per economic output unit

Contributing to UN SDGs

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Water Resource Management

Water resources are crucial for the socio-economic progression of a nation. United Water dedicates itself todelivering superior water treatment services, advancing water resource management, elevating water useefficiency, and advocating for the conservation, safeguarding, and scientific stewardship of water resources.These efforts are aimed at enhancing the water environment and ensuring the perpetual flow of clean riversthat sustain life.

Water Resource Risk AnalysisTo enhance our understanding and control of water resource security, and to swiftly identify and mitigatepotential risks and hidden dangers, United Water has mandated its subsidiaries to perform thorough waterresource risk analyses. This process includes evaluating potential threats, such as water pollution andscarcity, and formulating practical risk response strategies based on these assessments. These strategiesguide the prevention of water resource risks and foster the scientific and systematic management of theCompany's water resources.

CaseWater Quality Enhancement Project by United Water Jingzhou Shenlian Environmental Technology Co., Ltd.

United Water Jingzhou Shenlian Environmental Technology Co., Ltd. has garnered significant expertise in wastewatertreatment over the years. It employs a highly effective treatment process encompassing "coagulation sedimentation,primary sedimentation tanks, hydrolysis acidification, AAO, and Fenton oxidation" to ensure that the quality of dischargedeffluent consistently meets the set standards. With an investment of RMB 215 million in the second phase of theirstandard-upgrading project for industrial wastewater, the Company has expanded its treatment capabilities from 30,000tons to 52,000 tons per day. This expansion has not only elevated the wastewater treatment capacity but has also securedLevel A standard compliance for effluent discharge, significantly mitigating the environmental impact of domestic andindustrial wastewater in Jingzhou Economic and Technological Development Zone.

CaseJishan United Water Co., Ltd.'s Contribution to the Sustainable Development of Jishan Date Industry

Jishan County, Shanxi Province, known for its concentration of date processing enterprises, has faced serious wastewater discharge as a byproduct of economicgrowth. To tackle the pollution from date processing, Jishan United Water Co., Ltd. established a local wastewater treatment facility dedicated to the date processingindustry. This facility treats the wastewater centrally before transferring it to the Jishan County wastewater treatment plant for further purification to meet dischargestandards. The initiative has significantly bettered the local environment, improved the water quality of the Fen River in Jishan, and guaranteed that "clear watersflow into the Yellow River." Moreover, the treated wastewater from the date processing can replace carbon source agents in the sewage plant, reducing the need foradditional agents and aiding the Jishan County plant in decreasing operational expenses. This project exemplifies the harmonious balance of economic advancement,environmental protection, and societal welfare.

The United Water Suqian Water Supply Company conducts an annual water resource risk analysis,culminating in the Water Resource Risk Analysis Report. This report focuses on two primary risks:

raw water pollution and shortages. For each risk, appropriate measures are implemented.

CaseUnited Water Ongoing Water Resource Risk Analysis

Raw Water Pollution

Involves on-site investigations of potentialcontamination sources, the creation of aPollution Source Investigation Report forthe Catchment Area, and the developmentof specific plans to address differentpollution risks.

Raw Water Shortages

Features a canal reserve that is kept in"hot standby" mode, enabling the switchto alternative water sources within 30minutes. The Company also collaboratesclosely with the Water Resources Bureauto monitor and regulate the primary watersource, ensuring prompt action against anyshortfall in raw water.

Long-term Water Quality Enhancement

United Water prioritizes sewage treatment and is committed to the continual upgrading of sewage treatment plants, addressingsubstandard water bodies, and other related initiatives. The Company is dedicated to fostering innovation and application insewage treatment technologies, refining treatment processes, and boosting the treatment capacity and efficiency to ensurethat effluent quality consistently meets regulatory standards. By curtailing pollutant discharges at the source, United Waterconsiderably reduces the risk of environmental water pollution.

144.19

million tons

Annual wastewater treatment volume

44,894tons

Annual reduction in pollutants, quantifiedby Chemical Oxygen Demand (COD)

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Recycled water reuse

Strategic water supply managementWater balance assessments

Process and facility enhancements

Our efforts are directed toward repurposing wastewater intoa valuable resource. We are reusing treated water in industrialoperations, urban landscape irrigation, and street cleaning, thusactively promoting the cycle of water resource recycling.

By meticulously managing the allocation of unprocessedwater in accordance with demand, we maintain an equilibriumbetween water input and output, avert the overtopping ofpurification facilities, and enhance the utilization efficiency ofraw water.

Through consistent water balance evaluations, we gain insightsinto our water consumption patterns, identify opportunities forconservation, and reinforce our water management practices, allof which advance our water usage efficacy.

We have deployed advanced technology to improve ourwater treatment processes and infrastructure, including theconstruction of a process effluent water recycling system, toenhance water reuse efficiency.

推动污水资源化利用,将再生水回用于企业生产、绿化灌溉、道路保洁等,大力推进水资源循环利用。

Efficient Utilization of Water Sources

United Water is committed to the judicious use of water resources and is proactively engaging in the recycling and reuse of water. The Companyis devoted to enhancing production processes to minimize water wastage, aiming to mitigate the impacts of water scarcity and to guarantee thesustainable consumption of these vital resources.

CaseEfficient Process Discharge Water Reuse by Xianning United Water Co., Ltd.Xianning United Water Co., Ltd. has exemplified efficient water resource management and environmental stewardship by establishingrecovery and treatment systems for process discharge at Wangying and Panwan water plants. The Panwan water plant has attainedfull reuse and zero discharge of its process discharge water, including from backwash, sand traps, flocculation, sedimentation, andsludge dewatering processes. Meanwhile, the Wangying water plant has successfully repurposed backwash water. These systems havenot only curtailed water plant process consumption, elevated the reuse rate, and improved water supply capacity but also safeguardedriver waters from contamination, thus making a significant ecological contribution. In 2023, these two plants recycled a combined totalof 837,000 tons of process discharge water.

CaseSecondary Water Reuse Project by Suizhou United Water Co., Ltd.In alignment with national water conservation objectives, Suizhou United Water Co., Ltd. has been delivering reclaimed water to theSuizhou High-Tech Zone since 2019 for urban greening and street sanitation. The Company extended its services in 2023, supplyingtreated wastewater to the Guodian Changyuan Suizhou Power Plant for cooling purposes. The secondary water reuse systemsupports a daily delivery of approximately 50,000 to 60,000 tons of reclaimed water, depending on the secondary water pump house'sequipment. This proactive approach has significantly boosted water resource efficiency and is contributing to the collaborativedevelopment of a water-conserving society.

224.9646

million tons

Freshwater withdrawals

4.3996

million tons

Water plant self-consumption

1.96

%

Water plant self-consumption rate

49.9427

million tons

Recycled water output

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Pipeline Network Leakage and Loss ManagementEffective management of pipeline network leakage and losses is crucial for water conservation. United Water is dedicated to continuouslyimproving its oversight and mitigation strategies for leaks and losses within the network. By implementing advanced monitoring and comprehensivemanagement practices, the company systematically reduces water wastage attributable to leakage, thereby contributing significantly to waterconservation.

Equipment maintenance andrenewal

Pipeline network surveillanceand upkeep

Optimized water pressureregulation

Meticulous valve managementSmart leakage detection

We prioritize regular upkeep andmodernization of productionfacilities and aging pipelines. Bymaintaining the integrity of storagestructures and systematicallyreplacing worn components suchas valves, pipes, and meters, wesignificantly cut down on water lossduring distribution.

A comprehensive patrol plan hasbeen established for the watersupply network to detect andaddress leaks. By intensifyinginspections of critical pipelines andvalves, we curb physical losses likeleaks and overflows, and boostemergency response and repairefficiency to forestall substantialwater resource depletion.

We maintain scientificallydetermined pressure levels withinthe pipeline network, carefullymodulating the water pressuredispatched from the plant. Thestrategic use of variable frequencydrives for pressure managementfurther prevents pipeline rupturesand system failures.

Leveraging data from flow andpressure monitoring stations,we specifically target the oldersegments of the network with valveadjustments to control flow andpressure. This approach is aimed atfurther reducing leakage, while stillensuring essential water supply inthe areas with the lowest pressure.

By enhancing our GIS and DMA systems, we achievereal-time monitoring of flow and pressure at keypoints, areas, major nodes, end-users, and largeconsumers in plants and the entire pipeline network,allowing for the swift identification and repair ofleaks. A comprehensive management ledger forpipeline network leakage has been created, offeringa detailed analysis for informed decision-making inour water-saving and leak prevention initiatives.

Case

Integrated Approach to Managing PipelineNetwork Leakage and Losses

In 2023, Jishan United Water Co., Ltd. embarked on an ambitiousproject to renovate its water distribution network, investingupwards of RMB 60 million to modernize aging pipelines. Theinitiative saw an overhaul of 43.8 kilometers of water supplyinfrastructure and the installation of individual meters for 8,144households. Following the upgrades, the Company swiftly createddetailed maps of the new pipelines and implemented real-timemonitoring systems for water volume and pressure to optimizedistribution and minimize the risk of pipeline bursts acrossvarious zones. To further enhance network integrity, proceduresfor regular mainline inspections, centralized leak reporting, andthe strategic dispatch of repair teams were established. Theintroduction of a rewards program for leak detection galvanizedthe participation of all stakeholders, contributing to a dramaticreduction in water network losses. This multifaceted strategyyielded a substantial decrease in the Company's network leakagerate in 2023.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Eco-Environmental Protection

United Water embraces a philosophy centered on "natural recovery and ecological restoration," with a steadfast commitment to "improve waterenvironment quality" through the "establishment of ecological habitats" aimed at "reinvigorating biodiversity." This approach has cultivated acomprehensive technical framework encompassing "source control, ecological construction, energy optimization, and smart operations." TheCompany employs a holistic and methodical strategy for "water management," "environment building," and "empowerment," taking proactive stepsin the ecological restoration and safeguarding of rivers, lakes, pivotal water bodies, and rural water environments. These efforts are instrumental increating conducive habitats for aquatic life, continuously enriching the diversity of biological communities and biodiversity, and elevating the qualityof the water ecosystem.

Implementation of Water Environment ManagementThe stewardship of water resources is a commitment that spans decades. Confronted with acute challenges in water pollution and ecologicalrestoration, United Water utilizes its cutting-edge technologies in water pollution mitigation and aquatic ecosystem rehabilitation to activelyparticipate in the governance and ecological revitalization of river and lake basins, thus enhancing the aquatic environment's quality and promotingthe sustainable development of ecological habitats.

Biodiversity ProtectionUnited Water is dedicated to the promotion of aquatic ecological conservation, enhancing the management and protection of water catchment areasand ecological buffer zones. Through refining the food chain and optimizing the distribution of aquatic flora and fauna—particularly by creatinghabitats and strategically designing food-producing plants—we provide suitable environments for aquatic organisms. Our ongoing enhancement ofbiological community diversity and ecosystem biodiversity boosts the self-purification ability of rivers and lakes, effectively increasing the ecologicalcapacity of the aquatic environment. This endeavor is in line with our vision to foster a harmonious coexistence between humanity and nature.

River and lake ecological restoration and protection efforts

United Water has achieved notable success in mitigating water pollution in river and lake basins, rejuvenating numerous aquatic ecosystems, andformulating a vision for aquatic ecological restoration.

Rural water environment managementIn alignment with theAction Plan for the Battle Against Agricultural and Rural Pollution, United Water is committed to the ongoing suppression andmanagement of water pollution in agricultural and rural areas, bolstering the ecological rejuvenation of the countryside.

Case

Ecological Restoration of Jingzhou North Moat

The Jingzhou North Moat, traversing densely inhabited historicalurban areas, had suffered from significant sedimentation due tocombined sewer overflows, unregulated domestic wastewaterdischarge, and diminished ecological variety. In an effort torevitalize the Jingzhou North Moat's ecology, United Wateremployed on-site purification technology at points of dischargeto capture suspended particles and reduce murkiness, therebylessening the inflow of pollutants into the river. Water qualityassessments revealed a stark contrast; where untreated waterfailed to meet basic standards, treated water achieved the GradeV designation for surface water environmental quality, substantiallycurtailing pollution from heavily tainted sources and fostering theholistic management of Jingzhou's urban water environment.

CaseWater Quality Improvement Project at Dayan Lake (Ganjia Pond Outlet Channel) in Jiayu County

Dayan Lake in Hubei Province had, over an extended periodof external management, seen an accumulation of excessivephosphorus, nitrogen, and organic content in its sediment due tothe overuse of fertilizers and feeds, which severely compromisedthe water quality. The Ganjia Pond outlet channel, situated at thenortheastern fringe of Dayan Lake, showcases a model project forthe treatment of aquaculture effluent. With a focus on ecologicalrestoration to safeguard water quality, improve contaminatedwater bodies, and protect the integrity of the lake's environment,United Water has implemented a series of restoration measures,including the creation of serpentine wetlands, the installation ofeco-friendly phosphorus removal barriers, the establishment ofdeep purification ponds, and the development of river cleaningzones. These initiatives have not only enhanced the water qualityof the Ganjia Pond outlet channel but also mitigated the influx ofpollutants into Dayan Lake, setting a precedent for the effectivetreatment of aquaculture water pollution in the region andcontributing to the enhancement of rural life.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

CaseYangjia Lake Aquatic Ecology Remediation Project in Chibi City

Yangjia Lake, spanning 122,940 square meters, is the sole large urban park water body in Chibi City. Asa critical component of the city's ecological space planning, it is essential for linking the upstream anddownstream water systems. In recent years, due to insufficient governance, the lake experienced serioussediment accumulation, complications from an obsolete pipeline network, and widespread unauthorizedconnections, resulting in frequent leaks and contamination. Furthermore, stormwater discharges duringrainfall events severely degraded the water quality to below Grade V standards. With the lakebed largelydesolate, the edge of ecosystem collapse called for immediate ecological restoration.In restoring Yangjia Lake's ecology, United Water implemented foundational strategies of "watermanagement" and "environment building." Through exogenous control and endogenous reduction, wefirst established riparian wetlands, ecological revetments, and tiered enhanced wetlands using naturalmethods, significantly relieving environmental pressure from initial rainwater, runoff, and sewage. Wethen reshaped the terrain and improved the composition of animal habitats to foster a robust underwaterforest, thus bolstering the lake's self-purification capabilities and resilience. Moreover, we transformed theonce-uniform shoreline into a dynamic one that adapts to water level changes, supports natural filtration,maintains biological habitats, and accommodates a range of activities.The project profoundly diminished pollutant inflow into the water system and bolstered the water's naturalself-cleaning properties. The waters of the river and lake reclaimed their natural states and ecologicalfunctions, evidenced by increased vegetation cover and a richer diversity of species, including birds andaquatic life. We achieved comprehensive three-dimensional ecological restoration, realizing our ecologicalvision of "waterways teeming with life, supporting both flora and fauna, and harmoniously coexisting withhuman activity."

Climate Action

United Water recognizes the threats posed by climate change and proactively addresses various extreme weather events. Our commitment to energy conservation and emissionreduction supports the broader objective of mitigating global warming and aligns with the national ambitions of achieving carbon peak and carbon neutrality.

Responding to Extreme WeatherUnited Water has developed comprehensive emergency plans and proactive measures to address different extreme weather scenarios, ensuring business continuity andreducing the adverse effects of climate change.

Cold Wave and Low-Temperature

Conditions

Extreme Precipitation Events

High-Temperature Conditions

? We have implemented an emergency repair strategy for anti-freezing in the water supply network, featuring a tiered response mechanism, thesimulation of anti-freeze repairs, and specific operational guidelines for real-world incidents.? A specialized cold weather inspection team performs regional assessments to identify potential risks and vulnerabilities, guaranteeing the properfunctioning of equipment.? Our team is ready and equipped to quickly resolve any issues related to water usage that arise during cold waves and low-temperature events.

? We have developed a high-temperature prevention plan for equipment, incorporating cooling measures such as additional tubular and plate heat

exchangers. We also increased equipment inspections to ensure the stable operation of core facilities within the plant during hot weather? To mitigate high-temperature impacts on wastewater treatment, we consistently monitor and analyze water quality, adjusting treatment processes inline with seasonal variations to maintain optimal efficiency.? The safety of outdoor personnel is a priority; work schedules are adjusted to minimize heat exposure, and a range of measures to prevent heatstroke

and provide cooling are in place.

? Our emergency response strategy for flood risks includes ongoing training and education on drainage practices for staff, enhancing their flood

prevention capabilities and emergency response skills.

? Drainage networks and related infrastructure undergo rigorous inspections. In the event of potential hazards, we swiftly coordinate emergency

repairs.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Waste Management

United Water rigorously complies with theLaw of the People's Republic of China on the Prevention and Control of Water Pollution, Law of the People's Republic of China on the Prevention and Controlof Solid Waste Environmental Pollution, Law of the People's Republic of China on the Prevention and Control of Air Pollution, Law of the People's Republic of China on the Prevention and Controlof Environmental Noise Pollution, among other legal requirements. The Company has crafted internal protocols includingWastewater Generation and Treatment Management Procedures, SolidWaste Management Procedures, Waste Gas Generation and Treatment Management Procedures,and Noise Generation and Treatment Management Procedures. Employing thorough managementpractices and operating techniques, the Company ensures that all wastewater, solid waste, hazardous gases, and noise generated during operations are within regulatory discharge limits.

Treatment methodsWe adopt bespoke treatment and disposalstrategies for various solid waste categories tominimize waste, recover resources, and ensuresafe disposal, thereby effectively managingdiverse waste types within the Company.

Treatment methodsWaste liquids generated during water quality testing arecollected by the water quality testing center and disposedof by qualified waste disposal companies. Domesticwastewater is treated in septic tanks before it joins themunicipal sewage network, whereas wastewater fromcleaning during water production is discharged directlyinto the municipal sewage system. Rainwater is channeledinto the municipal stormwater system after collecting inthe plant's stormwater network.

Treatment methodsWe utilize advanced low-noise equipment.In cases where production site boundariesare close to sensitive areas, additionalequipment soundproof covers and noisebarriers are installed. Inspection andmaintenance personnel are equipped withthe appropriate protective gear.

NoiseWastewaterSolid Waste

The Company's solid waste predominantly consistsof sludge, chemical packaging bags, waste oil drumsfrom machinery, oil-saturated cotton yarn, scrapparts from equipment servicing, and refuse from thedaily operations and offices of the production staff.

The Company's wastewater primarily consists of cleanwastewater from sewage treatment projects, sludge filterwater from water supply projects, and domestic wastewaterfrom production staff.

Production-related noise primarily originatesfrom equipment such as horizontal centrifugalpumps and ambient noise at the plantboundaries.

CaseSludge Resource Utilization

In an effort to mitigate sludge-induced environmental pollution and enhance resource efficiency, Jingzhou Shenlian Water Co., Ltd. processed a total of 18,110.50 tons of sludge in 2023,all of which was repurposed by brick manufacturers for brick production, thereby neutralizing harmful substances and reducing ecological harm. Ningxia Helan United Water Co., Ltd.managed 28,266.90 tons of sludge in the same year, with approximately 30% processed by professional companies for land improvement and afforestation, significantly advancing theresourceful use of sludge.

Promoting Energy Conservation &Emission Reduction

United Water is dedicated to refining its energy management system. Byimplementing energy-efficient designs and equipment, embracing the developmentof clean energy, and enhancing the management of energy consumption, theCompany proactively pursues initiatives for energy conservation and emissionreduction to foster sustainable, low-carbon growth.

The Company has implemented anEnergy Management Systemand convenesregular meetings focused on energy-saving and consumption reduction toscrutinize and refine the Company's energy use, thus bolstering our management ofenergy consumption.

Our engineering construction integrates design strategies that prioritize low energyconsumption and high energy efficiency, actively employing state-of-the-art processesand equipment to target prudent energy use and conservation from the outset.

In line with national standards, the Company is committed to the acquisition ofhigh-efficiency equipment, opting for devices that minimize energy loss and offersuperior environmental benefits, such as air suspension blowers, modern energy-efficient transformers, and variable frequency water pumps, to curtail energy usage.

Leveraging the smart water utility platform, the Company conducts comprehensivemonitoring and analysis of electricity use across the production cycle, optimizesscheduling plans, enhances the efficiency of operational units, diminishes energyuse in production, and fine-tunes the input of raw materials. This leads to thesmart and calculated addition of reagents, reducing both reagents and energyconsumption.

Enhancing energy management

Implementing energy-saving designs

Utilizing energy-saving equipment

Intensifying energy consumption management

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Paper ConservationWe are transitioning to modernconferencing systems tofacilitate paperless operationsand promote the dual-sideduse of paper and recyclingefforts to diminish paper waste.

Water Conservation

We foster a culture ofwater conservation, urgingemployees to promptly turnoff taps to significantly reducewater wastage.

Electricity Conservation

We endorse the practiceof promptly switching offvarious electrical appliancesand carefully managing airconditioning temperaturesin office spaces to curtailelectricity consumption.

Low-Carbon Commuting

We support our employees'efforts to commute in eco-friendly ways, such as utilizingpublic transportation, to activelylower energy use and shrink ourcarbon footprint.

Green Philosophy Advocacy

Leveraging its sectoral strengths, United Water actively embraces its environmental obligations, endorses eco-friendly practices, engages in greencommunity initiatives, and educates the public on the importance of water conservation and environmental stewardship. The Company fosterscommunity involvement in protecting the environment, thereby contributing to the building of an ecological civilization.

Green & Low-Carbon Office Practices

At United Water, we actively champion the adoption of eco-friendly office and lifestyle habits among our employees. We encourage our staff tominimize resource and energy consumption in their daily activities and simultaneously amplify our environmental protection initiatives. We driveour subsidiary companies to initiate green public welfare projects, thereby raising our employees' environmental consciousness. Through tangibleactions, our employees demonstrate their commitment to sustainable development and contribute to preserving the natural ecosystem.

Environmental Science and Public Education

United Water is dedicated to disseminating environmental protection principles and actively embraces its social responsibilities. Through variousoutreach efforts and by offering tours of water treatment facilities, we enhance public understanding of environmental stewardship, spurring agreater collective awareness of safeguarding water environments and conserving water resources.

CaseEnergizing Conservation through Employee Incentives

United Water Suqian Water Supply Company has pioneered an energy-saving incentive program that rewards departments for reducingenergy use through technological improvements and managerial innovation. Quarterly, the Company evaluates the actual costs of electricityand chemicals. Departments that spend less than budgeted receive 20% of the cost savings as bonuses for their staff. In 2023, theCompany cut production electricity expenses by RMB 1,769,500, leading to the allocation of RMB 353,900 in energy-saving bonuses, whichsignificantly boosted employee engagement in energy-saving activities.

Case

Promoting Water Stewardship and Fostering Environmental Harmony

On March 25, 2023, Xianning United Water Co., Ltd. engagedin the "World Water Day" and "China Water Week" awarenesscampaigns, hosted by the Xianning Municipal Bureau of WaterResources and Lakes. The Company engaged citizens with hands-on introductions to tap water, consultations on water services,demonstrations of water quality testing, and information sessionson household water metering. This direct engagement equippedthe public with extensive knowledge of responsible water use andconservation, fostering a culture of water-saving practices andnurturing a balanced coexistence between communities, waterresources, and society.

Case

Nurturing Young Ambassadors for Water Conservation

In line with the 32nd "National Urban Water Conservation PromotionWeek," United Water Suqian Water Supply Company organizedan educational event at the Suqian Branch of the Nanjing NormalUniversity Affiliated Elementary School. The theme was "EmbraceYour Role as Water-Saving Guardians, Together We Build a BeautifulCity." Conservation educators enlightened the students about thejourney of tap water from source to tap and the purification processand shared practical water-saving tips. The initiative culminatedwith the students pledging to be eco-friendly "little warriors,"equipped with the knowledge to protect water resources and theresolve to help build a picturesque urban landscape.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Key Environmental Performance

1.Mainlyfromwasteoil,laboratorywasteliquid2.Totalamountofsludgetransportedanddisposedof(Domesticsewageplantandindustrialsewageplantsludgedewatering,dryingafterthesludge

disposalquali?cationofprofessionalcompaniestotreat,powergeneration,brickmaking,etc.)

Enhanced Environmental Management

United Water actively engages with the national mandates on environmental protection and the pursuit of green, low-carbon development, maintainingstrict compliance with laws and regulations such as theEnvironmental Protection Law of the People's Republic of China. Within its operational andproduction realms, the Company upholds its environmental protection duties by crafting and applying policies likeEnvironmental Management ProgramManagement Procedures, Energy Management Regulations, and Environmental, Safety, and Occupational Health Training Regulations. United Wateris dedicated to the continuous enhancement of its environmental management system, underscoring Environmental Impact Assessments (EIAs) forits projects, strengthening control over environmental risks, refining environmental emergency management, consistently undertaking emergencysimulations, and promoting environmental protection education and training. By doing so, the Company is committed to aligning its growth withenvironmental stewardship.

Underscoring EIAs for projects

Emphasizing EIAs for construction projects, the Company thoroughly evaluates thepotential environmental effects during both the construction and operational stages.It gives special attention to soil and water conservation and to landscaping activitiesthroughout the construction phase, rigorously managing construction practices to curtailany adverse environmental consequences resulting from project execution.Refining environmental emergency managementUnited Water is focused on extensively bolstering its environmental emergency responsecapabilities. It encourages its subsidiaries to draftEmergency Response Plans forSudden Environmental Incidents, streamlines the emergency response to unforeseenenvironmental pollution and ecological disruptions, conducts regular simulations in linewith these plans, augments its workforce's emergency handling skills, and ensures swiftand effective reactions to environmental emergencies.

Strengthening environmental hazard prevention and controlThe Company embeds the mitigation of environmental threats into its everydaymanagement, improving the detection, assessment and preliminary control ofenvironmental hazards like noise, dust and water pollution during the execution ofcurrent projects. It maintains a detailed registry of significant risks and regularly performsinspections to guarantee the adherence to hazard mitigation protocols on-site.Promoting environmental protection education and training

United Water actively fosters environmental education and training, systematicallyinstructing its workforce on environmental laws, cutting-edge technologies and the ethosof environmental care to deeply root a culture of environmental mindfulness.

United Water, along with itsthree branches—Suqian Minxin Water Quality Testing Co., Ltd.,Suqian Gengche Wastewater Treatment Co., Ltd.,and Suqian United Municipal Engineering Co.,Ltd.—all achieved ISO 14001 EnvironmentalManagement System certificationand GB/T 24001-2016 EnvironmentalManagement System certification.

RMB

141.739

million

The total investment in environmentalprotection reached

23.87

% of operational revenue

representing

employees

with full participation from

%

reflecting a training coverage rate of

The Company organized

environmental protection trainingsessions throughout the year

IndicatorUnit2023 Values

Energy Consumption

Greenhouse Gas

Emissions

Water ResourceManagement

Exhaust Emissions

Waste Emissions

Electricity ConsumptionGasoline ConsumptionDiesel ConsumptionNatural Gas ConsumptionLPG ConsumptionTotal Energy ConsumptionEnergy Consumption DensityGreenhouse Gas Emissions (Scope 1)Greenhouse Gas Emissions (Scope 2)Total Greenhouse Gas EmissionsCO

Emissions per Unit of OutputRate of Water Used InternallyVolume of Wastewater TreatedReduction in Pollutants (COD)

Volume of Hazardous Waste

Volume of Waste Recycled and Reused

Volume of Nitrogen Oxides EmittedVolume of Sulfur Oxides EmittedVolume of Particulate Matter andSuspended Particles EmittedEmissions of Volatile OrganicCompounds

Percentage (%)TonsTons

TonsTons

TonsTonsTonsTons

Tons of CO

equivalentTons of CO

equivalentTons of CO

equivalentTons of CO

equivalent per RMB 10,000of revenue

130,418,203154,466.5455,535.46135,137.285,64316,451.62

0.15

799.38

74,377.575,176.88

0.67

1.96

144,185,58044,894

12.72

94,891

0.00816

0.000528

0.00504

0.00036

Kilowatt-hours (kWh)Liters (L)Liters (L)Cubic meters (m?)Kilograms (kg)10,000 tons of standard coal equivalent10,000 tons of standard coal equivalentper RMB 10,000 of revenue

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Special TopicGreen PlanetReliable Partner Excellence in OperationsAdvanced TechnologyTalent Oriented

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

2.7

million tons per day

Total water planned treatment capacity

%

Comprehensive compliance rate ofwater supply quality

RMB1,543,300

Charitable contributions

eliable

Partner

R

Contributing to UN SDGs

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

加强水质检测

Stable Water Supply

Water is essential to life, and the integrity of water quality is imperative for people's health and quality of life. United Water dedicates itself toenhancing water quality, boosting water supply capabilities, and refining service levels, ensuring the provision of safer, more reliable and higher-qualityr water to numerous households, thereby increasing consumer satisfaction and well-being.

Ensuring Water Supply QualityThe Company is committed to stringent control over water quality safety, establishing a holistic watersupply security system that extends from the source to the tap. Our goal is to elevate the standard ofour water supply from simply being compliant to being exceptional.

Water treatment process

“Maintaining the standard of water supply quality" is the company's most crucial lifeline. We are dedicated to advancing our water treatmentprocesses, increasing monitoring at all stages, and ensuring 24/7 operations. Our state-of-the-art treatment includes coagulation,sedimentation, filtration, disinfection, and advanced processes like pre- and post-ozone treatment combined with biological activated carbonfiltration to guarantee consistently superior water quality.

ConductingwatersourcemonitoringConductingwatersourcemonitoring

Source control

We have set up a comprehensive emergency planfor water source quality and a rigorous inspectionsystem. We monitor water quality hourly toeffectively preempt water source contamination.For raw water safety, we've established a waterquality linkage mechanism with local ecologicaland water resource departments. Moreover,our water quality testing center intensifies themonitoring of raw water indicators such as odor,dissolved oxygen, UV-245, and algae countaccording to seasonal changes, ensuring waterquality safety.

2.7

million tons per day

Total water planned treatmentcapacity

Strengtheningwaterqualitytesting

Strengthening water quality testing

We have improved the water quality managementand testing framework within our plants, executinga tiered testing strategy and performing ongoingassessments of source water, finished water, anddistribution networks. By enhancing the frequencyand scope of water quality testing, consistentlymonitoring at endpoints and across the network,and intensively scrutinizing any anomalies, weensure that our water quality test results not onlymeet but significantly surpass national standards.

%

Comprehensivecompliance rate of watersupply quality

Case

Xianning Xiangquan Water Quality Testing Co., Ltd. Successfully Passing the Water Supply Sector'sToughest "National Exam" Again

In 2023, Xianning Xiangquan Water Quality Testing Co., Ltd. participated in the 16th National Urban Water Supply and Drainage IndustryInspection and Testing Institution Quality Control Assessment, facilitated by the Water Supply Quality Monitoring Center of the NationalMinistry of Housing and Urban-Rural Development. The Company achieved "Qualified" across all categories. This assessment by the Ministryis widely regarded as the most authoritative in the national water supply and drainage inspection and testing fields, thus being dubbed theindustry's ultimate "National Exam." The Company has consistently showcased excellence by achieving a 100% pass rate in all the eightnational and provincial quality control assessments and capability verifications it has participated in.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Enhancing Water Supply CapabilitiesThe Company persistently channels funds into bolstering our water supply infrastructure, along with the renovation and upkeep of our pipeline network. This strategic investmentpropels the advancement of our water supply capabilities. Through continuous improvements in our water distribution management, we ensure the reliability of the water supply,thereby delivering water that is both high in quality and efficiently distributed.

We are actively improving the water intake systemsat various plants and pumping stations, ramping upinvestments in pipeline construction to enhance thenetwork layout, and reinforcing the infrastructurefor basic rural water supply. These improvementsare fundamental to constructing a durable andsecure water supply network that consistentlydelivers safe and reliable water.

Water supply infrastructure constructionWater distribution managementPipeline facility inspection

Our integration of smart water utility systems enablesus to monitor network pressure across regions inreal time. We handle real-time information regardingwater pressure, quality, energy usage, secondarysupply equipment, and operational data fromwater treatment facilities. Through comprehensivesurveillance using an integrated platform, we gaina profound understanding of the water supplydynamics, enabling us to make informed andjudicious decisions for a stable water supply.

We have intensified the scrutiny and maintenanceof our production equipment and facilities.Personnel are assigned to the 24-hour monitoringof essential areas such as power distribution roomsand pump houses, facilitating the early detectionof issues, swift repair of malfunctions, and thequick resolution of potential risks. The frequencyand thoroughness of inspections of water supplyfacilities have been increased to proactively addressany hidden dangers, ensuring the uninterruptedfunctioning of our water supply systems.

Water supply infrastructure

construction

Optimized water distribution

management

Pipeline network facility

inspection

CaseEnsuring Water Supply Safety: Diligent Valve Inspection during Routine Checks

On January 16, 2023, the pipeline network division of Sanmenxia United Water Co., Ltd. conducted itsroutine inspection of an 8-kilometer raw water pipeline and a 6-kilometer distribution pipeline. TheCompany recognizes the critical nature of these original distribution pipelines, which are predominantlysituated along riverbanks in areas out of reach for vehicles. Consequently, the department mandatesmonthly on-foot patrols to guarantee that every valve receives attention. Adopting a mentorship model,seasoned employees lead the newcomers through the inspection processes, acquainting them with theprecise locations and operational statuses of the valves. This meticulous inspection process, carried outover a day, ensures the safety and reliability of each valve, thereby safeguarding the raw water supplyduring the Spring Festival and maintaining the integrity of the overall water supply.

Staff inspecting the pipeline

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Propelling Urban-Rural Water Supply IntegrationWater safety is crucial for public welfare, rural revitalization, and urban development. The Company is dedicated to enhancing the urban-rural watersupply guarantee system and advancing the integration of urban and rural water supplies. We aim to address the difficulties faced by the public,especially in rural areas, in accessing drinking water, providing improved water services for urban and rural residents.

Emergency Water Supply AssuranceThe Company is dedicated to the continual enhancement of our emergency management systems and protocols. We devise a variety ofemergency water supply strategies and bolster our response capabilities to solidify our emergency water supply assurance.

Case Strategic Planning to Bridge the "Last Mile" in Water Supply

In Jishan County, the uneven distribution of water source locations poses a significant challenge, especially during dry years. To addressissues such as the dispersion of water sources and limited regulation capabilities, Jishan United Water Co., Ltd. implemented a project tointegrate water sources with the supply network. This involved extending the pipeline network and renovating old networks, transformingisolated water supply areas into an interconnected supply system. Efforts were made to bridge the "last mile" of water supply in remoteareas like Dongqu and Qiaokou. This ensures unified scheduling and shared water resources in urban zones, achieving complete urbanwater supply coverage. It effectively resolved the drinking water challenges for Jishan County residents.

CaseAdvancing Urban-Rural Water Supply Integration for Rural Revitalization

On August 18, 2023, Xianning Siyuan WaterCo., Ltd. celebrated the completion of theXian'an District Henggouqiao Town Urban-RuralIntegrated Water Supply Project. With a totalinvestment of RMB 60 million and a constructiontimeline of one year, the project increased thedaily water supply capacity from 20,000 to50,000 tons. Consequently, the service nowreaches 180,000 individuals, up from 110,000,providing them with safe, reliable, and superiorwater, and ushering in a new era of sustainabledevelopment for picturesque rural communities.

Number of annual

emergency drills

Executing operations for emergency water supply assurance

Improving emergency

response capabilities

Strengtheningemergency repairsEquipping emergency

supplies

Our emergency supply stockpile hasbeen meticulously refined to guaranteethe availability of repair materials, tools,and equipment for immediate use.

We have established comprehensivetraining and drill plans tailored foremergency situations, routinelyorchestrating and executing specializedexercises for our emergency plans.These drills and simulated exercisesare meticulously designed andconducted in accordance with well-defined procedures, significantlyimproving our capacity to manageemergency situations effectively.

An emergency water supply repair squadhas been put into place, complete witha 24-hour on-call system. Our customerservice hotline operates around theclock, and our repair teams are alwaysready to respond promptly to anyincidences of pipeline failure, ensuringthat repairs are conducted and normalwater supply is restored as swiftly aspossible.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Premium Services

United Water consistently prioritizes customers, continuously improving the capacity of its water supply services. The Company is committed to fostering a service environment that boasts streamlined processes, affordability, andhigh efficiency. By embedding the concept of optimizing the business environment into all facets of water supply services, United Water is steadfast in its pursuit to enhance the customer service experience and the effectiveness ofits water supply services.

Optimizing Access to Water Services"The business environment is perpetually evolving towards improvement, but never attaining perfection." The Company persistently innovates its offerings to refine the process of securing water services, ensuring moreconvenience, efficiency, and quality for its users. Such relentless enhancement propels the business environment forward, fostering high-quality development within a superior business climate.

?The "One Visit" service policy simplifies

the water supply installation process

considerably.”

Proactive planning of water needshelps businesses accelerate their

operations.

The establishment of a "Water, Electricity,and Gas Shared Service Hall" has introduced

the "110" service model.

Jishan United Water Co., Ltd. focuses on enhancing the efficiencyof water installation as a key breakthrough. Adhering to theprinciples of minimal steps, simplicity, time efficiency, and peakperformance, the Company is on a continuous quest to refinethe installation process. Through its WeChat public account, ithas implemented the "One Visit" service policy. The Companyeven accepts applications when certain documents are absent,striving to fulfill user needs in the quickest possible manner. Forselect customers, a proactive tracking service system addressespotential issues and risks.In the 2022 business environment assessment in Yuncheng City,Shanxi Province, Jishan County excelled, with its "Access to WaterServices" ranking third in the city.

Zhangzhou United Water Co., Ltd. provides industrialenterprises with tailored, and attentive service, asmarket representatives deliver one-on-one, proactiveassistance. By tapping into the "Zhangzhou CityConstruction Project Approval Management System"for early-stage construction project details (includingproject planning, land planning and approval,engineering construction approval, construction permit,etc.), the Company offers preemptive services, grantingpreliminary technical advice and water services at theearliest project stages.

Xianning United Water Co., Ltd. is at the forefront of service innovation.Its shared service hall delivers a seamless "one-stop" service where"water, electricity, and gas" are managed collectively at a single counter,including integrated installation services. The "110" service model forwater installation—signifying 1 working day for application acceptance,survey, design, and connection (excluding the time for road excavation andconstruction approval), 1 step for the water connection, and 0 requireddocuments—streamlines the quality of water services to "50-1U" (with "50"denoting no runaround, applications, materials, approvals, or fees, and "1U"indicating superior service), thereby simplifying and expediting the process.In Hubei Province's 2022 business environment assessment, the XianningHigh-Tech Zone ranked impressively third out of 19 national high-tech zonesfor the "Access to Water Services" indicator.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Upgrading Service ExperienceThe Company is dedicated to refining service mechanisms, spearheading initiatives forpublic benefit, and constantly advancing its service capabilities and standards to ensure usertransactions are both convenient and satisfying.

Safeguarding Customer Rights and InterestsThe Company consistently organizes promotional educational initiatives and customer satisfaction surveys, actively addresses customer complaints, and diligently safeguards the rights and interests ofour clients. Through these efforts, we substantially elevate the quality of our water supply services.

Streamlining service processes

Guaranteeing information transparency

Issuing water outage alerts

The Company simplifies water installation procedures, cuts wait times, and integratesservices for water, electricity, and gas, ultimately reducing the time customers spendobtaining services. Additionally, it facilitates various payment options such as banktransfers, Alipay, WeChat, and others, enabling users to settle their bills convenientlyfrom home.

The Company openly shares details regarding residential water prices, non-residentialwater rates, and special industry tariffs through multiple channels, including serviceoutlets, WeChat public accounts, and government websites. This approach notonly protects the rights of businesses accessing water services but also instills userconfidence in water usage and service consumption.

The Company swiftly circulates notifications and updates on water supply servicesthrough official websites, WeChat public accounts, community WeChat groups, and masstext messages. This proactive communication ensures that users are well-informed aboutthe latest service developments and can access water services promptly.

%

United Water Suqian Water SupplyCompany boasts a customercomplaint resolution rate of

%

Xianning United Water Co., Ltd.maintains a customer complaintresolution rate of

%

with a customersatisfaction rate of

%

with a customersatisfaction rate of

Promotional educational activitiesInformation security measuresCustomer satisfaction surveys

We proactively carry out a variety of promotional andeducational activities, ensuring extensive disseminationof knowledge, providing counsel on consumer rightsprotection, and bolstering customer comprehension ofour products and services.

We have established robust methods for managinginformation security and systems to maintain theconfidentiality of customer data. Regular trainingon customer information security management isconducted to guarantee the protection of customerinformation effectively.

We routinely perform water service satisfaction surveysand hold customer forums, gathering feedback andsuggestions to create targeted improvement actionsand plans, thereby enhancing our interaction andcommunication with customers.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

UnitedWatercontributesfundstotheSuqianTownshipAssociation

JishanUnitedWaterCo.,Ltd.conductsacomfortingvisittoanursinghome

UnitedWaterSuqianWaterSupplyCompanyengagesinvolunteertreeplanting

SanmenxiaUnitedWaterCo.,Ltd.organizesemployeeblooddonationdrive

Community Involvement

The development of a company is inextricably linked to the support and understanding of the community. United Water leverages its corporatestrengths and industry characteristics to actively integrate into local communities, focusing on public welfare volunteering, cultural heritage, anddevelopment needs. By building positive community relations, the Company aids in fostering a healthy and harmonious social development, committingto being a responsible and caring enterprise.

Public Welfare VolunteeringUnited Water is dedicated to contributing to the public good and engaging in community development activities. Our active participation incharitable efforts, including educational donations, compassionate outreach, and support in volunteer services, reflects our commitment to serve,contribute to, and reciprocate the goodwill of the community while striving to create a harmonious homeland.

Heritage PreservationIn response to the national call for rural revitalization, United Water actively focuses on supporting rural revitalization industry projects. The Companysupports agricultural and rural development through the procurement of agricultural products, thereby aiding in the expansion of rural revitalizationefforts and contributing to local intangible cultural heritage protection projects.

RMB1,543,300

Charitable donations

1,389.5hours

Employee volunteer service hours

Instances of employee participationin volunteer activities

CaseUpholding the Tradition of Reverence for the Elderly during the Double Ninth Festival

On the Double Ninth Festival in 2023, the volunteer service team fromTongxiang Shenhe Water Co., Ltd., led by the Company's Senior VicePresident and Tongxiang General Manager, Luo Bin, visited a localnursing home to extend holiday wishes to the seniors. Volunteersspent time engaging with the elderly, expressing concern for theirhealth, offering holiday blessings, and advising them on staying warmand healthy. Additionally, they distributed fruits, bread, milk, and othercomforting items to provide care and assistance, embodying thetraditional virtue of respecting the elderly.

CaseSupporting Intangible Cultural Heritage Projects to Boost Rural Industrial Revitalization

Tangerine peel ginger candy, originating from Guangdong, is partof the third batch of municipal-level intangible cultural heritageprotection projects in Meizhou City. In 2023, in collaboration withFengshun County Gold Food Factory in Guangdong Province, UnitedWater customized tangerine peel ginger candy gift boxes for theMid-Autumn Festival for its employees and customers, embodyingthe motto "United Water's spirited journey enriches Fengshun."United Water actively supports the development of town and villageenterprises in Fengshun County, invigorating the "driving force"for rural revitalization and painting a beautiful landscape of ruralprosperity!

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Chairman and President Phillip Weijing Yu (first from the right) presentingawards to the winners

142 United Water employees participated in the race, forming a "hundred-person team"

United Water team secured second place in the competition

Event SupportOver the years, United Water has consistently acknowledged the close connection between water utility enterprises and social development,engaging in various public welfare activities and sports events. Leading with sports culture, we actively sponsor and participate in major sports events,contributing to the development of sports in its localities. The Company places great importance on each sports event, encouraging its employees todemonstrate their skills and spirit, thus promoting the balanced, high-quality, and vigorous development of mass sports.

Supporting the Passionate Launch of the Suqian MarathonIn 2023, United Water partnered again with the Suqian Marathon, jointly witnessing this high-profile, high-quality event. On April 2, the JingdongSuqian Marathon officially started, with 12,000 runners gathering in this City of Water Charm, running from the Ancestral Home of Xiang Wang tothe Suqian Olympic Sports Center along the most beautiful track. As official sponsor of the 2023 Jingdong Suqian Marathon, United Water fullysupported and serviced the event, dispatching a 22-member staff service team to designated service points, preparing small gifts like sun hatsand arm packs for participants. In this Suqian Marathon, the Company innovatively introduced the "United Water New Journey Race within a Race"segment, inviting marathon runners to participate in teams through various channels, attracting more participants to the event, and injecting robust"momentum" into the marathon.

The marathon ethos of "self-challenge, surpassing limits, and relentless perseverance" is deeply embedded in the DNA of United Water'sdevelopment, maintained through responsibility and contended for quality. Beyond the perfectly aligned spirit of perseverance, Phillip WeijingYu, Chairman and President of the Company, mentioned "hometown" when discussing the reason behind the renewed collaboration with SuqianMarathon. Twenty years ago, United Water was established in the land of West Chu, and Suqian - a young city blending cultural heritage withmodern progression - provided significant momentum for United Water's inception. Supporting Suqian Marathon signifies backing the cultural andsports industry development in Suqian, represents a gesture of giving back to our hometown, and stands as the best testament to United Water'sactive engagement in social responsibilities.

Competitor and volunteer teams of Jishan United Water Co., Ltd.

Jishan United Water Co., Ltd. Actively Engaged in Jishan Marathon

On May 14, 2023, The 2023 Jishan Marathon kicked off amid a sea of flags and a wave of spectators at the Shanxi Yuncheng Jishan CountyCommittee Square, marking the race's exhilarating start. This event brought together over 3,000 participants from 9 countries and 17 provinces (cities,autonomous regions) within China, all revved up for a spirited competition. Their passionate pursuit of speed beautifully captured the essence of theJishan Marathon's allure.As a significant contributor to Jishan's development, Jishan UnitedWater Co., Ltd. organized a team of 9 competitors and a 40-personvolunteer team to actively partake in this event. On the racecourse,United Water's competitors, with their agile forms, fully demonstratedthe Company's pioneering spirit of perseverance and the marathonspirit of "self-challenge, surpassing limits, unwavering endurance, andrelentless perseverance"; off the course, the volunteers from UnitedWater devoted themselves with the utmost seriousness, sincerestsmiles, and most enthusiastic service, providing support and care tothe participants and spectators.

United Water Dragon Boat Team Clinched Second Place in the 2023 SuqianHarvest Festival Dragon Boat RaceOn September 23, 2023, the much-anticipated "2023 Suqian ' Harvest Festival Dragon Boat Race" heatedly commenced on the ancient Yellow Riverin Suqian, marking the city's first-ever dragon boat race in celebration of the Harvest Festival. Thirty-three dragon boat teams competed fiercely, witheach participant showcasing their best performance and style, presenting a splendid aquatic spectacle to the audience. After intense competition,the United Water team, with high spirits and exceptional cohesion and combativeness, successfully secured second place in the competition. PhillipWeijing Yu, Chairman and President of the Company, along with Liu Meng, Director and Executive Vice President, attended the opening and closingceremonies and watched the race on site.Set against the backdrop of water charm and featuring dragonboats, this aquatic sport celebrating the harvest attracted numerousspectators, making the competition site bustling with activity, and theriverside vibrant with flags and the sound of drums. The spirit of unity,pursuit, and vigorous effort displayed in the dragon boat race, deeplyrooted in the spiritual core of the Chinese nation, aligns closely withthe development DNA of United Water. After a tense competition, theUnited Water team, paddling with passion, achieved second place inthe men's 300 meters straight race with a time of 1 minute 13 seconds

18. In this clash between paddles and water, the United Water spirit of

"unity, integrity, striving and mutual success" was vividly demonstrated.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Special TopicGreen PlanetReliable Partner Excellence in OperationsAdvanced TechnologyTalent Oriented

United Water: Twenty Key Figures

in Two DecadesJiangsu United Water Technology Co., Ltd.

%

Completion of anti-corruption training

RMB6,179,800

Investment in production safety

Number of emergency drills

xcellent in

Operations

E

Contributing to UN SDGs

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Corporate Governance Framework

Diagram of United Water Governance Structure

N

Articles of Association

Rules of Procedure for the General Meeting of Shareholders, Rules of Procedure for the Board of Directors, Rules ofProcedure for the Board of SupervisorsDetailed Work Protocols for the President, Detailed Work Protocols for the Board of Directors' Strategy and ESGCommittee, Detailed Work Protocols for the Board of Directors' Nomination Committee, Detailed Work Protocolsfor the Board of Directors' Audit Committee, Detailed Work Protocols for the Board of Directors' Compensation andAssessment CommitteeA number of supporting systems including the Independent Directors' Work System, Information DisclosureManagement System, etc.

Corporate GovernanceUnited Water rigorously complies with the latest stipulations of theSecurities Law of the People's Republic of China, theCorporate GovernanceGuidelines for Listed Companies, theStock Listing Rules of the Shanghai Stock Exchange,among other pertinent regulations. By upholding the tenetsof transparency, fairness and accountability, and integrating these with the Company's management practices, we have developed a standardizedcorporate governance framework and an advanced risk management system, elevating our governance standards and compliance requirements.

The Company has instituted a comprehensive "1+3+5+N" system of governance structures, creating a clear decision-making process and delineatingauthority with a model known as "Three Meetings and One Layer," thereby ensuring governance consistency and regulatory adherence.The General Meeting of Shareholders is the supreme decision-making entity of the Company, exercising authority over major company matters asprescribed by law. The Board of Directors, accountable to Shareholders and all stakeholders, is the executive decision-making body responsible foroutlining the Company's strategic goals and making key business decisions. Within the Board's structure are four specialized committees—Strategyand ESG Committee, Audit Committee, Nomination Committee and Compensation and Assessment Committee—each of which provides regularreports to the Board.The Board of Supervisors is answerable to all shareholders and operates in accordance with theCompany Law of the People's Republic of China,theSecurities Law of the People's Republic of China, the Corporate Governance Guidelines for Listed Companiesand other relevant legislation. Itsrole is to oversee the conduct of the Board of Directors, the senior management and their respective members, as well as the Company's financialoperations, internal controls, risk management and information disclosure, thereby safeguarding the legal rights and interests of the Company and itsshareholders, employees and other stakeholders.

Strategic and ESG CommitteeNomination Committee

Compensation andAssessment CommitteeAudit Committee

General Meeting of Shareholders

Board of Supervisors

Executive Vice President

Audit DepartmentHuman Resources DepartmentInvestment Development Department

Senior Vice PresidentSenior Vice PresidentSenior Vice PresidentBoard Secretary

Board of Directors

Presidents

Legal DepartmentOverseas Business DepartmentCentral China RegionPresident's OfficeProcurement DepartmentContract Cost DepartmentFinance DepartmentNorth China RegionSouth China RegionSecurities Affairs DepartmentOperations Management DepartmentConstruction Management Department

During the reporting period

times

The General Meeting ofShareholders convened

sessions

The Board of Directorsheld

itemsaddressing

topicsdiscussing

times

The Board ofSupervisors met

meetings

the NominationCommittee

meetings

The Audit Committee

subjectscovering

meetings

the Compensation andAssessment Committee

the Strategy and ESGCommitteemeeting

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Appointed Positions

Gender

Age

Director

Below 46 years46-55 years56-65 yearsAbove 65 years

Independent Director

MaleFemale

Board of Directors' EffectivenessThe Company has developed a well-structured organization andprocedural guidelines for the Board of Directors to guarantee effectiveand systematic managerial decision-making. The current Board iscomposed of nine members (eight males and one female), whichincludes three independent directors with a varied mix of expertise infinance, financial oversight, corporate governance, and environmentalwater services. All members serving on the Board's specializedcommittees are directors, each of the Audit Committee, NominationCommittee, and Compensation and Assessment Committee featuringtwo independent directors, with the Audit Committee including oneindependent director who is a certified accountant.

Investor CommunicationsRisk ManagementUnited Water complies with regulations pertaining to information disclosure by publiclylisted companies, having established internal policies such as Investor RelationsManagement Methods and Information Disclosure Management System. These policiesguarantee investors' rights to receive information and participate in significant companymatters.The Company has produced and released four standard reports and 86 interimannouncement and associated documents, ensuring the information disclosed is timely,accurate, and comprehensive. In addition to extensive information disclosure, UnitedWater prioritizes in-depth communication with investors through various channels,including on-site research meetings, investor inquiries, and the e-interactive platform.In strict accordance with its Articles of Association, United Water safeguards the votingrights of minority shareholders. In 2023, the Company conducted a hybrid shareholders'meeting with both physical and online voting options. Minority shareholders cast theirvotes on several key proposals, such as the 2023 compensation plan for directors,supervisors, and senior executives, authorization of financial and guarantee limits forthe Company and its subsidiaries, the reappointment of the auditor, the 2022 profitdistribution plan, the appointment of additional directors, and the election of the secondBoard of Directors and Board of Supervisors.

Risk management is crucial for the stable operation of an enterprise. United Water has established and continuously refines theCompany's risk management and internal control systems. The Board of Directors is charged with overseeing risk management andgovernance, while the Audit Committee regularly supervises and evaluates the effectiveness of internal controls, reporting their findingsand progress to the Board.United Water is committed to enhancing risk identification, evaluation, and mitigation processes. Regular risk assessments allow theCompany to be aware of potential threats and opportunities, leading to a comprehensive understanding of critical business sectors andthe improvement of risk monitoring and early warning systems. This process improves oversight of market, operational, and regulatoryrisks. Business department heads are required to report financial performance and objectives from short- to long-term perspectivesto the Board, along with potential operational risks. Concurrently, the Company has developed and continuously upgrades its responsestrategies and contingency plans, bolstering employee awareness of risk to ensure swift, orderly, and effective reactions to unforeseenevents.United Water continuously refines its financial internal control management mechanism in compliance with the Company Law of thePeople's Republic of China, Stock Listing Rules of the Shanghai Stock Exchange, Basic Norms for Enterprise Internal Control, andother pertinent regulations, as well as the Company Articles of Association. The Company has developed related systems, such as theFinancial Internal Control Management Manual and Internal Audit System, to advance the standard implementation of financial internalcontrol management. Furthermore, it annually contracts professional accounting firms to audit the effectiveness of internal controls overfinancial reporting, aiming to mitigate potential risks and ensure the Company's compliant and robust operation.

The number of communications withinvestors through various channelsthroughout the year totaled

times

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

To manage business ethics risks effectively, United Water has bolstered its monitoring and detection efforts by establishing a robustinternal reporting and investigation framework. The Company has set up a dedicated reporting mailbox, ensuring that whistleblowers areprotected from unlawful discrimination, retaliation, and any adverse treatment during investigations. This allows employees to report anysuspected ethical violations safely and with ease. The Company also upholds a "zero tolerance" policy toward breaches of business ethics,implementing decisive actions to address misconduct and guarantee prompt resolution of any ethical infractions.

Anti-corruption training

coverage

202120222023

100%100%100%

Business Ethics

Commitment to business ethics is a core responsibility of every company. United Water continuously refines itsbusiness ethics and anti-corruption frameworks, enforces theAnti-Fraud and Reporting System, and firmly opposesall forms of bribery, corruption, fraud, extortion, embezzlement, and other inappropriate conduct that contravenesbusiness ethics standards. Such commitment fosters a culture of integrity and cultivates a reputable and uprightbusiness environment in collaboration with employees, suppliers, and partners.

The Company has established andput into effect theEmployee Code ofConduct, which categorically forbidsbribery and corruption. This codeis integrated into the United WaterEmployee Handbook. Through targetedinternal training and informationdissemination, the Company assures thatall employees understand and adhereto its professional ethics, mandatingcompliance with the code of conduct inall business activities and daily operations.

The Company has heightened theenforcement of business ethics and anti-corruption standards among suppliers,creating a rigorous supplier evaluationsystem and incorporating ethicalrequirements into the supply chainmanagement process. This ensures thatall partners throughout the supply chainadhere to the code of business ethics.

hour

Average anti-corruption trainingduration per employee in 2023

Number of corruption-relatedlawsuits filed in 2023

Implementingemployee codeof conduct

Strengthening

supplieroversight

Refining thereporting and

investigationmechanism

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Responsible Procurement

A stable and sustainable supply chain is the cornerstone of high-quality development. The Company is committed to promoting the standardizedevolution of the supply chain, enhancing the supplier management system, and forging a mutually beneficial procurement relationship with itssuppliers, thus creating a robust sustainable supply chain ecosystem together.

In 2023, the Company updated and refined its internal policies and standardprocurement documentation, including the United Water Group ProcurementManagement System andUnited Water Group Bidding Management System,further streamlining its supply chain management processes.

The Company has implemented strict cross-departmental oversight ofall procurement actions, complete with specific channels for reportinginfractions to guarantee legality, adherence to regulations, and fairness. Inthe reporting period, we blacklisted eight suppliers for breaches of integrity.To prevent such issues, we have introduced a system for diverse bidderrecommendations, including the full disclosure of recommenders' identities.

The Company has developed a professional centralized procurementplatform, enabling it to manage unified bidding for bulk materials and theprocurement of materials and services required by various operating entitieswithin the Group. This approach significantly enhances procurement qualityand efficiency, reduces costs, and lessens procurement risks. During thereporting period, purchases led by the Procurement Department accountedfor over 70% of the Group's total procurement volume.

The Company ensures that procurement contracts clearly define material technicalstandards and outline procedures and penalties for non-compliance. Key Quality ControlPoints (QCPs) are established for critical equipment to oversee production processes andpre-shipment inspections. The quality inspection team conducts tests in accordance withcontractual stipulations before warehousing materials. For materials like activated carbonand certain chemicals that require off-site testing, we employ third-party inspections.Additionally, all stored materials are covered by a warranty period.

Standardized ProcurementUnited Water is committed to strict adherence to laws and regulations, including thePeople's Republic of China Bidding Lawand its implementingregulations. This commitment drives the continuous enhancement of our procurement management system, contributing to a robust procurementmanagement framework that bolsters the standardization and professionalization of our supply chain management.

Constantly improving systems and normsReinforcing supply chain integrity

Developing centralized procurement platforms.Advancing quality control measures

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Comprehensive Process ControlThe Company maintains an extensive management system covering supplier admission, evaluation, rectification, and removal. This system ensures a standardized approach to managing and dynamicallyupdating our supplier list, guaranteeing that suppliers fulfill their obligations satisfactorily. In the reporting period, we collaborated with 498 suppliers.

Enhanced Growth for Mutual Benefit

?We encourage and mandate that suppliers engagedin long-term partnerships for critical equipment andmaterials acquire certifications in quality, environmental,and health and safety management systems, thusimproving their ESG management practices.

During on-site visits, our expert team offers specificrecommendations for improving production quality,safety and business management, aiding suppliers inreaching elevated operational standards.Enhancing sustainablecapabilities

Promoting sustainablecertification

We exercise stringent control over the selection ofsuppliers, leveraging various departments and channelsto identify candidates, reviewing their qualificationsmeticulously, and performing on-site verificationsto ensure authenticity. We strictly bar any affiliatedcompanies from the bidding process and applysanctions and warnings where deception or collusivebidding is detected.

We have instituted a detailed assessment mechanismwhere each department evaluates suppliers annually.Suppliers are rated as "Excellent," "Good," "Fair," or"Poor" during collective reviews, and these evaluationsare integrated into an annual supplier performancereport, which informs updates to the Group SupplierDirectory. Actions corresponding to their ratings aretaken, ranging from prioritizing purchases to mandatingimprovements, or ceasing procurement activities.

Suppliers who receive a "Poor" rating in annualevaluations, or those identified with substantial quality,safety, environmental, or integrity failings, will havetheir contracts discontinued. They will also be removedfrom the supplier list and barred from quoting orparticipating in bids for a period of three years.

Supplier Selection and AdmissionSupplier Evaluation and RectificationSupplier Removal

41.96

%

Suppliers obtained qualitymanagement systemcertification

22.69

%

Suppliers obtainedenvironmental managementsystem certification

22.69

%

Suppliers obtained occupationalhealth and safety managementsystem certification

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Upgradingsecurity systems

Augmenting on-

site monitoring

Strengthening

hazardous

chemicalsmanagement

Strengthening Safety System Building

Safety Production Management

Line of Safety DefenseSafety is paramount. United Water forges a unanimous commitmentto safety and significantly enhances the safety infrastructure.We build a strong physical safety base and augment informationsecurity measures, thereby reinforcing comprehensive security inthe digital era and endeavoring to foster a secure, dependable, andstable operational environment, thoroughly reinforcing our line ofsafety defense.

The Company commits to the ethos of "safety first, preventionas a priority, and comprehensive management," emphasizing theimportance of safety in production activities, consistently advancingour safety production management system, affirming the fundamentalresponsibility for safety in production, and bolstering capabilities toidentify and mitigate safety risks, all to safeguard the welfare andsafety of every individual at production and operational locations.

Adhering strictly to the Safety Production Law of the People's Republic of China and supplementarylegal and regulatory stipulations, and guided by the Guideline of China Occupational Safety andHealth Management System (GB/T33000-2016), the Company has instituted a suite of safetyproduction management protocols, including Safety Production Control Procedures, Fire SafetyManagement Procedures, and Chemical Management Procedures, to certify the efficacy anduniformity of our safety management processes.A Safety Production Committee, presided over by the President, has been formed as the primarygoverning entity for safety production management. The committee is supported by a SafetyProduction Office responsible for providing safety guidance, while safety production teams andofficers at various operational entities execute safety-related duties. A monthly safety productionreporting system ensures integrated and effective safety management, guaranteeing rigorousadherence to safety norms.

Driving Safety Risk Prevention and ControlIn 2023, the Company developed the Hazard Identification and Risk Assessment System, concentratingon preemptive safety measures at production facilities. Assessments of current safety conditionswere conducted across various operational entities, a dual-prevention mechanism encompassing riskcategorization, control and the investigation and resolution of potential hazards was established, andthe perpetual effectiveness of risk management was upheld through the following initiatives:

The Company enhanced its security video surveillance to encompass all vital riskareas, enabling real-time risk oversight, swift detection, and immediate action.

Custom safety inspection protocols were crafted for distinct sectors within ourwater plants, certifying compliance with safety management standards andreinforcing our capacity to prevent and manage safety risks.

The Company consistently observed theRegulations on the Safe Managementof Hazardous Chemicalsamong other pertinent statutes. Policies likeHazardousWaste Management, Hazardous Material Storage Management, andHazardousSubstances Usage Managementwere instituted to oversee a comprehensivemanagement cycle from the acquisition, storage, and distribution, to the disposal ofhazardous substances. Leveraging theHazard Identification and Risk AssessmentSystem,routine identification and evaluation of major hazard sources wereexecuted with prompt documentation. We also compiled a hazardous chemicalsdirectory and set up a specialized warehouse for these substances, managed byqualified professionals. Furthermore, we intensified safety training for laboratorypersonnel to enhance the management of hazardous substances.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Ensuring On-site SafetyEmbracing the "prevention-first, self-rescue, unifiedcommand and clear-cut responsibility" ethos, theCompany has developedEmergency Response Plansfor Production Safety Incidents and On-site ProductionSafety Incident Handling Protocols. These documentsspecify baseline emergency response procedures, outlineorganizational roles and responsibilities, and mandateemergency response actions. We also regularly conductvaried emergency response drills to evaluate and refinethe effectiveness of our emergency plans, bolstering ourability to manage diverse emergencies and protect ouremployees' well-being and property.

Ensuring On-site Safety

The Company adheres to a comprehensive set of engineeringsafety protocols, including Safety Education Training and Safety Technical Disclosure Management, Safety Inspectionand Correction Management, and DetailedRules for Safety Management and Performance Assessment. These protocols encompass safety standards, technical disclosures, performance evaluations, and corrective actions. We employ multiple safety managementstrategies to ensure the effective execution of engineering safety management tasks.

The Company mandates specific safety productionqualifications for contractors, entering into safetycommitment letters and agreements that addressenvironmental protection, occupational health, andsafe construction. These agreements integrate safetymanagement responsibilities into the contractors'performance criteria, promoting an enhancement of theirsafety management practices.

In 2023, United Water and its three subsidiaries,Suqian Gengche Wastewater Treatment Co., Ltd.,Suqian Minxin Water Quality Testing Co., Ltd., andSuqian United Municipal Engineering Co., Ltd., werecertified under the ISO 45001 Occupational Healthand Safety Management System.

Regulations such as Safety Signage Management,SafetyProtective and Emergency Equipment Management,

Safety Tag Usage, and Construction Site SafetyStandardization have been instituted. These guidelinesdetail the requirements for safety equipment, cultivatea safety-aware culture, and set standards for civilconstruction, thereby streamlining the management ofconstruction site safety.

The Company maintains a consistent inspection andoversight routine for construction sites. Regular on-sitereviews and safety disclosures are conducted to monitoradherence to safety practices, ensuring the safety ofpersonnel on all active projects.

Defining safety responsibilitiesStandardizing safety standardsConducting safety inspections

RMB6,179,800

Total safety production investment

None

Fatalities from safety incidents

Safety inspections conducted

Emergency drills performed

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

In 2023, there were

2,742participants

accumulating

589.25

hours of instructionin safety training programs,

In 2023

Developing of Safety CultureThe Company is proactive in fostering a robust safety culture through targeted safetytraining sessions, safety knowledge contests, the display of safety slogans, and banners.Such efforts disseminate a comprehensive understanding of production safety amongstaff members, enhance safety consciousness, and meld safety culture into everydaypractices, thus cultivating an environment where "safety is everyone's concern, and thecompany guarantees it".

Occupational Health and SafetyUnited Water prioritizes the safety and health of its employees, rigorously complies with laws and regulations suchas theLaw of the People's Republic of China on the Prevention and Treatment of Occupational Diseasesand the

Management Methods for Reporting Occupational Disease Hazards,and is dedicated to advancing its occupationalhealth and safety management system to provide comprehensive safeguards for the physical and mental well-being of employees within a secure work environment.

Improving working

conditions

Prioritizing healthmanagement

Strengthening safety

coverage

Occupational Health and Safety Measures

United Water Suqian WaterSupply Company engagedin exhaustive safety audits,focusing on essential areas,specialized departmentalsafety checks, and thoroughmaintenance of productioninfrastructure to mitigate risks.It also hosted safety knowledgetests for its leadership,leveraging assessmentsas tools for learning andapplication.

The Company arranges regularoccupational health checksfor employees, maintainshealth records and establishesmonitoring files, ensuringongoing vigilance over theirhealth status.

Employees are offered arange of insurances, includingemployer liability, personalaccident and production safety,to provide extensive safetycoverage.

CaseEmbracing "Safety Production Month" to Reinforce Safety Awareness

HubeiJiangsuShanxiNingxia

In June 2023, the 22nd National "Safety Production Month" was observed. United Water, aligning with the theme "Safety is Everyone's Business, Everyone is Ready forEmergencies," undertook a duty to assure production safety and initiated an array of activities that significantly contributed to the overall enhancement of safety protocols.

United Water's six Xianning-basedsubsidiaries executed theSafetyProduction Month Activity Plan,conducting training, weekly caseanalyses, first-aid instruction, emergencyexercises and public safety lectures.These initiatives merged theoretical andpractical learning, fostering unity andcollaboration in our safety endeavors.

United Water Suqian Water SupplyCompany engaged in exhaustive safetyaudits, focusing on essential areas,specialized departmental safety checks,and thorough maintenance of productioninfrastructure to mitigate risks. It alsohosted safety knowledge tests for itsleadership, leveraging assessments astools for learning and application.

Jishan United Water Co., Ltd. arrangeda series of "Emergency Drills," includingsimulations for escaping a buildingfire, handling fire-fighting gear, andnavigating confined spaces. These drillsmarkedly improved safety consciousnessand emergency preparedness amongemployees.

Ningxia Hongze Water PurificationCo., Ltd. carried out fire safety mockdrills. Participants rigorously followedemergency protocols, while evaluatorsprovided real-time feedback, pinpointingareas for improvement to enhance futurereadiness.

%

Occupational diseaseincidence rate

Total days lost to workinjuries

0.075

Days lost per million inrevenue due to work injuries

0.73

Injury rate per millionhours worked

Number of work injurycases among employees

0.21

%

Employee workinjury rate

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Physical Security

Host Security

Data Security

Implement compartmentalization and manage access to various zones with physicalbarriers.Install fundamental safeguarding systems and devices, including electronic accesscontrols, surveillance and alarm systems, UPS power supplies, electromagneticinterference prevention, lightning protection, fire suppression and water damageprevention.

Utilize network infrastructure like routers, switches, firewalls, antivirus barriers and audit logs.Strengthen network equipment security by employing both technical and managerial methods to verify useridentities using multi-factor authentication.

InformationSecurity Assurance

Measures

Information Security

Implement systems that require identity verification, ensure user ID uniqueness, validateauthentication information complexity and monitor unsuccessful login attempts.

Establish a Personnel Security Management System to oversee recruitment, evaluations,confidentiality agreements, training and exit procedures.Conduct regular security awareness and skill evaluations and execute training programs toboost information security consciousness among employees.Manage third-party personnel with distinct security responsibility agreements, delineate theirpermitted areas of activity and ensure they are escorted by appointed staff.

Application Security

Personnel Security

Ensure user access to operating and database systems isauthenticated and uniquely identified to avert the use of sharedaccounts.Adopt remote management protocols to safeguard authenticationdata from interception over networks.

Methodically back up business application data and systemconfigurations.Diversify storage of backup data, with routine transfers to alternateservers and cloud storage for off-site backups.

Information Security ProtectionIn response to the growing threat landscape in cyber security, United Water places significantemphasis on information security within its operational safety strategy. The Company is relentlessin refining its information security management system, implementing a variety of securitymeasures and establishing a formidable defense to shield vital corporate data and businesssystems from threats.

Information Security System ConstructionUnited Water strictly abides by theData Security Law of the People's Republic of Chinaand other information securityregulations, has formed an information security leadership team, and has crafted and implemented 18 information anddata security management protocols, including the Information Security Management Method. These protocols coverstrategic and organizational structure, document control, security audits, asset protection, crisis management, and more,to execute comprehensive information security oversight. Throughout the reporting period, there were no occurrencesof information breaches.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Informationsecurity attack

and defense

drills

Informationsecuritycompliancemanagement

Informationsecurityawarenesspromotion

The Company proactively conducts attack anddefense drills to identify network vulnerabilities,swiftly addresses potential security risks,and increases our team's awareness andresponsiveness to security threats. Over thereporting period, we successfully completed foursuch exercises.

Working in tandem with the water serviceproduction control system, the Companyhas achieved a Level Three network securityprotection rating, continually enhancing thesecurity and manageability of our informationsystems in accordance with legal and regulatoryrequirements.

The Company prioritizes strengthening networksecurity incident awareness and risk identificationskills among employees by mandating annualinformation security training for all managementlevels. Additionally, key personnel are selectedfor specialized external training in informationnetwork security management to deepen theirunderstanding and commitment to informationsecurity.

In an effort to elevate the information security consciousness among all staff members, UnitedWater launched a "Network Security Publicity Week" in September 2023. Partnering with externalexpert agencies, we hosted a series of informative activities, including network security workshops,case study discussions and skill-building training. These targeted and hands-on events servedto enrich our employees' understanding of network security, data security management, andemergency network security responses, fostering a shared responsibility for the collectivereinforcement of our network security "firewall."

Case

"Combining Forces" in Promotion and Education to Construct aNetwork Security "Firewall"

Information Security Protection Measures

The Company is committed to continually enhancing its information security infrastructure and implementingdiverse measures to ensure the effective functioning of our information security management system. The goalis to establish a secure, controllable, and actively managed information system security environment, therebysignificantly improving our digital security posture.

Number of on-site/networksafety training sessions

Number of participantsin training

In 2023

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Number of R&D personnel

RMB1,763,000

R&D investment

Achievement of intellectual propertymanagement system certification

dvanced

Technology

A

Contributing to UN SDGs

Special TopicGreen PlanetReliable Partner Excellence in OperationsAdvanced TechnologyTalent Oriented

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

CaseElevating Customer Experience in Water Usage with a Smart HubNanjing County United Water Co., Ltd. has developed a comprehensive smart water dispatch center that integrates multiple functionalities:

a smart water platform, production dispatching system, revenue system, hotline system, SMS platform, installation management, metering,equipment management, DMA district control, laboratory management, electronic archiving and an online customer service center. Utilizinginformation technology, this center delivers prompt and precise macro-level data concerning both urban and rural water supplies, whichaids in decision-making to ensure the safety of drinking water, enhance regulatory capabilities within the industry and contribute to thepublic good. Moreover, the dispatch center has the ability to monitor the operational status of the water supply system in real-time andprecisely regulate the production, management and service operations, thereby concurrently improving the Company's managementeffectiveness and service quality.

Smart Water UtilitiesThe development of smart water utilities is essential for the standardization and efficiency of water utility management. In response tothe growing requirements imposed by an expanding supply and drainage network, United Water is leveraging advanced technologies toenhance the GIS system and establish a DMA (District Metered Area) metering platform. These initiatives aim to refine the digitalizationof pipeline network operations and boost network management efficiency. Our progressive expansion in both the scope and sophisticationof smart water utilities marks our steady advancement towards their full realization.

Comprehensive Information CollectionBy employing a variety of sensors, networks, platforms, and applicationsystems, we collect detailed, real-time data on the operational statusof the water utility infrastructure, water resource distribution andusage, as well as water environment quality and risks. This enables usto perform intelligent analysis and decision-making, leading to moreeffective management and optimization of water services.

Real-Time Service ProcessingWe motivate our subsidiaries to adopt cutting-edge technological methods in creating an "Internet + Water Service" smart platform. This initiativefacilitates real-time online management of various services, including water bill payments, applications for new connections, changes in accountnames, inquiries about water quality and pressure, service suspensions or terminations, user information updates, alterations in water usagepatterns, repair services, as well as handling complaints and suggestions. The platform is designed to offer users a more streamlined and efficientservice experience.

Intelligent Analysis & Decision-MakingUtilizing our dispatch system operation platform, we maintain aclear and comprehensive view of water supply and demand acrossall serviced areas. Monitoring water usage data and analyzing bothreal-time and historical data allow us to swiftly refine our dispatchingstrategies. Critical water quality indicators, such as turbidity and pHlevels, are centrally monitored around the clock, ensuring continuousoversight of water safety.

Achieved Effect

Underlying Technical Support

Improvedrationalizationof dispatchoperations

Advanced earlywarning systemsfor enhancedsafety

Increasedoperationalefficiency

Reductionin energyconsumption

Hydraulic model

SCADAMonitoringSystem

GIS PipelineGeographicInformationSystem

ProductionDispatch System

District Metering

System,

EquipmentManagementSystem

LaboratoryManagementSystem

Data Acquisition

System

Security System

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

R&D Innovation

United Water is committed to an innovation-centricdevelopment strategy, promoting the inventiveintegration of scientific research and technologydevelopment, and bolstering collaborative industryexchanges. Leveraging technology as a catalyst, westrive to amplify the core competitiveness of our fieldand capitalize on our subsidiary, Shanghai BoruisiEnvironmental Technology Co., Ltd., to fortify, refine,and broaden our business reach.

Talent Team DevelopmentAligned with our corporate growth strategies, the Company seeks to attract and hire elite technical talent withexpertise in both R&D and management. ATechnical Personnel Development, Training and Recruitment Systemhas been established, along with a dedicated funding pool for talent development, enhancing our educationaland training mechanisms. We organize sophisticated training courses for professional technical personnel,conduct expert academic seminars, and offer specialized skill training for various positions. By sending our toptalents to reputable institutions for advanced training, practical business experience, and internships, we ensurethat our professional staff undertakes at least 10 days of diverse training each year. Looking ahead, we plan tofurther enlarge our R&D team through campus recruitment and broader hiring initiatives, to ensure a robust talentinfrastructure that supports our future growth.

Transformation of Innovative AchievementsConfronting three significant challenges in water environment management—ecosystem destruction from external pollution, the inability to recreate habitats for aquatic ecosystems,and the excessive costs and delays of conventional management—the Company harnesses its strengths to offer innovative water management solutions. It zeroes in on "point-sourcein situ purification," "aquatic ecosystem habitat construction," and "smart operation and maintenance," all while spearheading patent-focused R&D in these domains.

Practicalapplicationofthepatentedfloatingwetlandsystem

Practicalapplicationofthepatentedpoint-sourceinsitupuri?cationsystem

Point-source in Situ Purification

The Company has secured intellectual property rightsfor four pioneering technologies: a point-source in situpurification system (ZL202222261868.X), a floating wetlandsystem (ZL202220437968.0), a coastal in situ sewagetreatment device (ZL202220444120.0) and a riverineself-suction trash collection and water purification unit(ZL202221263851.1). Notably, the point-source purificationsystem and the floating wetland have been successfullyimplemented in Jingzhou City's Jingzhou North Moat waterenvironment restoration pilot, demonstrating their efficacyin mitigating source pollution and reducing the river'scontaminant load.

Aquatic Ecosystem Habitat ConstructionSmart Operation and Maintenance

With four proprietary technologies—a modular submerged plant growth unit(ZL202220561971.3), a modular artificial fish habitat (ZL202220422312.1), amodular filler system (ZL202230098727.3) and an avian habitat framework(ZL202220580335.5)—the Company has made strides in ecological restoration.The artificial fish habitat and avian system, in particular, have been deployed inthe Yangjia Lake project in Chibi City, yielding a full-spectrum ecological revivalof the water body. This approach has enhanced vegetation cover, augmentedbird and aquatic populations, and bolstered overall biodiversity.

Smart operation and maintenance come with benefits in two areas. In the initialsurvey phase, it enables rapid data collection on water quality, ecosystems anddischarge points and facilitates targeted technical solutions. In the maintenancephase, this smart approach allows for autonomous monitoring and remoteearly warnings, potentially saving over 80% on labor costs. The Company hasdeveloped ten software copyrights, such as AI-driven water monitoring, big dataanalysis of water environment detection, dynamic collection and management,information management of discharge and 3D visualization detection, and isgearing up to advance the application of these innovations.

Employee Innovation Incentive

The Company has instituted frameworks such as theTechnology Achievement Transformation and IncentiveReward Measures,theR&D Personnel Performance Assessment and Reward Systemand theOpen Innovationand Entrepreneurship Platform Management System. These structures create a well-rounded R&D investmentaccounting model, an organizational mechanism for the implementation of technological advancements, incentiveschemes and an accessible platform promoting innovation and entrepreneurship. A system for evaluating andrewarding talent performance is in place, energizing the inventiveness and inspiration of our scientific andtechnology staff. Building on a foundation of refined R&D management and incentives, we facilitate professionaltraining both internally and externally and motivate our R&D staff to engage in industry expos, technologyexchange summits and technical forums, thereby perpetually advancing our capacity for technological innovation.

Shanghai Boruisi EnvironmentalTechnology Co., Ltd. was recognizedas a high-tech enterprise

Number of R&D personnel

RMB1,763,000ten thousand

R&D investment

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Strengthening Industry-University-ResearchCollaborationThe Company champions industry-university-research synergy, leveragingpartnerships with Shanghai Jiao Tong University, East China University of Scienceand Technology and Donghua University to foster technological collaboration thatbenefits from the channel, talent, and platform of these institutions. Employeesof United Water have been appointed as external graduate advisors at DonghuaUniversity, contributing to the advancement of high-quality specialized education.Its subsidiary, Shanghai Boruisi Environmental Technology Co., Ltd., as a keymember of the Shanghai SME International Cooperation Association DoubleCarbon Development Center, is intensifying collaborations to fuel scientificadvancements toward carbon neutrality.

Case

Synergistic Development through University-Enterprise CollaborationIn order to promote the integration of agricultural non-point sourcepollution control technologies and the replication of models, and facilitatethe organic integration of industry, university and research, Shanghai BoruisiEnvironmental Technology Co., Ltd. and Shanghai Jiao Tong Universityhave forged a partnership on the "Agricultural Non-point Source PollutionControl Project." This alliance draws on the university's rich talent pool andtechnological prowess and combines it with Boruisi's R&D innovation to co-develop new products, technologies, processes, materials, and equipmentfor agricultural pollution mitigation, aiming to deliver superior managementsolutions for non-point source agricultural pollution.

Strengthening Internal Management

Following the Company's internal policies, we continuously fortify the management of intellectualproperty documentation and applications, prompt employees to actively document valuableinnovations, and swiftly proceed with securing patents, trademarks, copyrights and other forms ofintellectual property rights to ensure the Company's innovations are legally safeguarded.

Enhancing Training InitiativesThe Company boosts internal awareness of intellectual property rights through diverse strategiessuch as holding in-house training sessions and inviting external experts to speak. These effortsaim to deepen employees' understanding of intellectual property significance, clarify their roles inprotecting these assets, increase their engagement in application and protection processes, andestablish a robust foundation of knowledge supporting the Company's innovative growth.

Refining Institutional SystemsThe Company has established theIntellectual Property Management System and the Research andDevelopment Organization Management Systemto standardize processes for the review, transfer,commercialization, usage management and the issuance of rewards and penalties for variousintellectual property categories. Additionally, theUnited Water Internal Reward System "GrowingTogether with the Company"has been created to motivate staff to actively engage in patent writingand applications. Furthermore, confidentiality agreements are implemented with both internalpersonnel and external partners to define, protect, and manage trade secrets with clear measures.

Intellectual Property Rights

United Water prioritizes the protection of intellectual property rights, adhering to relevantlaws, including theTrademark Law of the People's Republic of China, Copyright Law of thePeople's Republic of China, Patent Law of the People's Republic of ChinaandOpinions onStrengthening Intellectual Property Rights Protection, and establishing comprehensive internalmanagement protocols to safeguard patents and enhance intellectual property security. TheCompany respects the intellectual property and creativity of others, ensuring lawful and fair useof partners' information, materials, products and intellectual property to foster an environmentconducive to innovation.

The Company was certifiedby the intellectual propertymanagement systemNew patents over the year

Total active patents

In 2023

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Special TopicGreen PlanetReliable Partner Excellence in OperationsAdvanced TechnologyTalent Oriented

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

82.22

%

Localization rate for overseas employment

1,407

Total number of employees

RMB845,000

Investment in employee training

23,768.02

Total hours of employee training

alent

Oriented

T

Contributing to UN SDGs

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Committing to Compliant EmploymentUnited Water rigorously adheres to the Labor Law of the People'sRepublic of China, the Labor Contract Law of the People's Republicof China and other relevant legislation. We are constantly refiningour systems, including the Recruitment Management Methods andRecruitment Management Processes, to maintain lawful employmentpractices, offer equal job opportunities to all applicants, forbidforced and child labor and eliminate discrimination, thus properlytreating employees of different genders, religious beliefs and culturalbackgrounds, and fostering an equitable and respectful workplace.Within the reporting period, the rate of labor contract signings amongemployees reached 100%.The Company is enhancing its talent acquisition strategies by utilizingboth "online and offline" and "external and internal" referral methods toattract exceptional candidates. We engage in active school-enterprisecollaboration, offering internships, management trainee programs, andacademic partnerships to boost our appeal and reach in the talent market.

Employment & Protection

of Employee Rights

United Water is dedicated to protecting employee rights, ensuringlegal and compliant employment practices, providing robust supportand open communication channels and guaranteeing that eachemployee experiences fairness and respect with their legal rightsvigorously upheld.

1,132

Number of new hires

Employee distribution by gender

Employee distributionby region

Employee distribution byage group

Employee distribution bymanagement level

Job seekers hired during thereporting period

Male

China

Under 30 years

Senior management

41-50 years

General staff

New graduate hires

Female

Overseas

31-40 years

Middle management

Over 50 years

Employee distribution byeducation

Associate degree or belowBachelor's degreeGraduate degree/MBA or higher

Proportion of ethnicminority employees

Proportion of employees

with disabilities

1,367

1,001

1.28%0.14%

446961

1,407

Total number of employees

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

We've established a public notice board to freely broadcast information, ensuring thatemployees receive timely updates about company policies and developments, thus aiding theenforcement of internal policies and the oversight role of the workforce.

The creation of symposiums, employee representative councils, suggestion boxes, and other varied,unimpeded channels of feedback, along with staff assigned to aggregate and consider employee suggestions,fosters a culture of active staff participation

We conduct impartial surveys on a range of issues, including the employee canteen services,to gain a full understanding of staff needs and to tailor our work plans accordingly.

Information dissemination:

Feedback mechanism

Democratic surveys

Upgrading Compensation and BenefitsTo attract, motivate, and retain talent, the Company is dedicatedto developing a nuanced compensation management system. Thissystem correlates with the position's value, individual skills, andwork performance contributions. It encompasses year-end bonusesand performance incentives for surpassing goals. Underpinned byfairness and equity, the system serves as a powerful motivator forour employees' enthusiasm.The Company has established a comprehensive welfare andbenefits system, including the United Water Group EmployeeWelfare Policy for Major Holidays. This policy guarantees thatall employees receive paid annual leave, including for marriageand bereavement, and ensures complete and punctual paymentof social insurance and housing fund contributions, in line withnational requirements. Depending on specific circumstances,employees benefit from a variety of welfare options, such asholiday perks, seasonal bonuses, meal vouchers, transportationallowances and condolence payments, providing robust support fortheir professional and personal lives.

Advancing Democratic Management

The Company champions democratic management, endorsing the formation of trade unions in its subsidiaries, and routinely orchestratingemployee dialogue activities. These activities empower employees to voice their unique needs, with the assurance that their feedback will beheard and their rights to information, participation, expression and oversight will be protected.

95.65

%

In 2023,Parental leave return rate

CaseSymposium for New Employees: Engaging with "New Voices" to Propel Growth

In June 2023, the Company convened a symposium for group leaders and newly recruited young employees, attended by the managementcommittee, the Human Resources Department, and 13 new staff members. These fresh recruits shared their experiences and insightssince joining United Water, demonstrating their dedication and concern for the Group's progress. Leadership and HR addressed the newemployees' concerns attentively and methodically, compiling their suggestions to enhance the Company's trajectory and optimize futureoperations. This symposium not only fostered dialogue between the younger workforce and management but also strengthened theseemployees' sense of identity and belonging within the Company.

Number of union members

56.19

%

Rate of union membership

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Diversity & Employee Care

United Water places a high value on addressing the distinct needs of each employee, ensuring that everyone can find their niche, experiencethe Company's compassionate care and fully realize their worth and potential. Together, we strive to maintain a familial, cordial and positiveworkplace atmosphere.

Promoting Equality & InclusionUpholding a "people-first" approach, the Company respects and upholds each employee's rights, actively endorses global human rightsprotocols, such as theUniversal Declaration of Human Rights, and rigorously observes labor laws across all operational territories. Weguarantee equal opportunity and treatment in every professional phase—from hiring and employment to salary, training, and advancement.The United Water Employee Handbook strictly forbids any form of misconduct, including insults, intimidation or harassment, striving tocultivate an equitable, welcoming and transparent work environment.In Bangladesh, our commitment to local employment strategies involves recruiting and nurturing local talent and bolstering their operationalskills through early-stage mentorship with experienced Chinese peers. We also offer a scholarship recruitment initiative for Bangladeshistudents, reserving positions for emerging management prospects and implementing numerous strategies to expedite the goal of a fullylocalized workforce. Additionally, we provide specialized training for internationally stationed staff to ease cultural and linguistic transitionsand to enhance their understanding of local business etiquette, thus improving communication with local colleagues. A variety of languageresources are supplied to accommodate diverse linguistic needs. An Employee Assistance Program (EAP) is launched to provide support forthose dealing with personal or occupational challenges.

Highlighting Employee Care & Support

The Company is deeply invested in employee welfare, striving to fully comprehend and respond to the varied needs of its workforce,both in the workplace and beyond. Steadfast support is extended to employees in challenging situations, with particular attention tothe needs of female employees, retirees, and those in frontline roles. Such compassionate actions reflect the Company's core valuesof humanitarian concern and responsibility, fostering a nurturing environment where every individual feels valued.

CaseFostering International Student Recruitment in China to Forge a Path for Sino-Foreign Exchange

Under the guidance of the Belt and Road Initiative and in collaboration with Yangzhou University's International College, a targeted recruitmentdrive was launched to attract Bangladeshi students in China. The objective was to nurture a reserve of young, local talent for the Group'sinternational endeavors. Following a comprehensive selection process that included informational briefings, preliminary screenings, writtenassessments and final interviews, two exceptional Bangladeshi interns were chosen. They underwent an intensive training regime, providingthem with both theoretical knowledge and practical experience, with the prospect of future employment within the Company

In 2023,

Official local employees in Bangladesh project

82.22

%

Local employment rate

United Water Suqian Water Supply Company rallied to collect overRMB 70,000 in aid for an employee's mother diagnosed with ameningioma, facilitating her successful surgery and recovery.

Suizhou United Water Co., Ltd. commemorated "August 1st" with aveterans' symposium, distributing festive gifts and expressing heartfeltthanks, inspiring them to maintain their outstanding work ethic.

Xinjiang Jinhua Ecological Environment Engineering Co., Ltd. andXinjiang Guolong Sewage Treatment Co., Ltd. hosted a seminar titled"Caring for Women: Creating a 'Heartful' Homeland," focusing onpsychological health and empowering female employees with newperspectives on mental well-being.

Xianning United Water Co., Ltd. provided frontline workers enduringthe summer heat with cooling aids such as watermelons and mineralwater as a gesture of the Company's support.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Annual excursions are arranged to honor theexceptional performance of distinguishedemployees.

Pinghe United Water Co., Ltd. celebrated the Mid-Autumn Festival with "Bo Bing," a cherished regionaltradition and recognized cultural heritage, fosteringcamaraderie and cultural appreciation among staff.s.

Ningxia Helan United Water Co., Ltd. and Ningxia HongzeWater Purification Co., Ltd. periodically stage cultural andsports activities, such as rope skipping, lantern crafting,hot pot gathering, and barbecue events, enhancing theCompany's dynamic ethos.

Jishan United Water Co., Ltd. hosted a mountainclimbing team-building activity themed "LeapingOver the Dragon Gate to Reach New Heights,"which not only bolstered employees' physicalfitness but also enhanced team cohesion.

Xianning United Water Co., Ltd. held the 2023Fun Sports Meeting to offer a blend of friendlycompetition and leisure, boosting team spirit.

Tongxiang Shenhe Water Co., Ltd. and Ruichang UnitedWater Co., Ltd. express gratitude to their employeeswith quarterly birthday events, acknowledging theirdedication and service.

Advancing Work-Life HarmonyThe Company champions the importance of a work-life equilibrium, organizing a rich tapestry of cultural and recreational activities like birthday celebrations, reading initiatives, marathons, sports days and team outings. These events are designed to enhance the quality of leisure time,reduce job-related stress, and inspire a positive, enthusiastic approach to both professional and personal life.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Talent Cultivation & Development

Recognizing that talent is the cornerstone of corporateadvancement, United Water is devoted to the nurturing andprofessional growth of its workforce. A robust training framework,coupled with tailored career trajectories, energizes employees'potential, fostering professional progression and preparing them tonavigate the complexities of the market.

Talent Development Programs

"Stars of Tomorrow"Talent Development

Program

ManagementTrainee Program:

Youth TalentProgram

CareerDevelopment &

Growth

This program fortifies the management and technical talent pipeline, targeting young internal talents. Itprovides systematic training encompassing job rotation, vocational skills, specialized intensive courses,and practical research, thus preparing these young talents to become the next generation of leaders inmanagement and technology. As of 2023, 18 participants have completed two sessions.

Tailored for management trainees, this program titled "To be Professional at Enterprises" offers a suite ofprofessional training that includes modules on corporate etiquette, industry-specific knowledge in WaterQuality Engineering and hands-on learning through job rotation. This approach ensures trainees are well-acquainted with the Company's operations and can effectively translate their knowledge into practicalapplications. As of 2023, this program has successfully run two sessions with 18 participants.

This initiative, designed in partnership with United Water Suqian Water Supply Company, aims to refinethe skills of young professionals by integrating intensive training with broad-based quality enhancement.A combination of team training, job rotations, specialized studies, experiential learning and online courseseffectively bolsters the all-around capabilities of promising young employees.

Improving Training & PromotionProgramsThe Company leverages training and promotion to enhance itsinternal training system continually, focusing on nurturing keytalent through multi-level, distinctive training programs. Integrationtraining for new employees facilitates rapid assimilation into thecorporate culture, ensures understanding of business processes,and aids in role adaptation. For managers, leadership developmentcontent is crafted to refine leadership and decision-making skills.Through the consistent nurturing of high-quality, professionaltalent, the Company fosters a learning organization and guaranteescomprehensive support and development for employees at variouscareer stages.

Reinforcing Talent DevelopmentThe Company places a strong emphasis on constructing a cohesivetalent development framework, offering systematic training for allstaff members. This approach is designed to endow every individualwith the skills, knowledge, and competencies required, unlockingtheir full potential and harmonizing personal ambitions with theCompany's strategic goals.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

"One Book, One Lesson"

Study Program

Key Talent Development

Program

CareerAdvancement &Upgrading

This continuing education initiative includes two courses, "Replicable Leadership" and "Learning TalentManagement from Huawei." High-level personnel such as factory directors and executives are mandated tocomplete these courses, subsequently crafting summaries and actionable plans relevant to their roles. Todate, 236 employees have completed these courses across the Group.

Xianning United Water Co., Ltd. structures its 19 trainees into three specialized groups—production,engineering, and customer service—to provide focused training tailored to the specific needs of eachposition. Training spans three to six months and features a blend of rotational learning, online self-study,and public courses, employing a variety of flexible learning methodologies.

Middle ManagementSpecialized Training

Tongxiang Shenhe Water Co., Ltd. zeroes in on pivotal areas such as role transition, effective staffing andteam motivation to upgrade the management acumen of middle managers. Jingzhou Shenlian EnvironmentalTechnology Co., Ltd. intertwines self-study, team-building exercises and knowledge sharing as corecomponents, deepening middle managers' operational proficiency through courses like "ManagementBasics" and "20 Lectures on Team Management".

Special Meetings andTraining for Functional

Departments

Group Finance department, Human Resources Department, Operation Management Department,Construction Management Department, Procurement Department, etc. take the lead in organizing annualfunctional line special meetings and training every year to conduct work discussion, exchange, summaryand training.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Creating Distinctive Training MechanismsWith the Company's practical business needs in mind, distinctive training mechanisms have beenformulated, incorporating "Internal Trainers" and "Mentor-Apprentice" systems to harness andamalgamate the knowledge of seasoned professionals internally. This strategy promotes knowledgesharing between novices and veterans, fostering a cadre of professionals adept in both expertise andleadership, thus solidifying the talent foundation essential for the Company's sustained growth.

"Internal Trainer" System

Adhering to theUnited Water Internal Trainer Management System, a robust selection,development and reward framework for internal trainers has been instituted. Competitiveevaluations drive annual trainer selections, offering a five-tier progression pathway withcorresponding rewards, perpetuating the fortification of the internal training cadre. As of2023, the Company boasts 17 certified internal trainers and 48 accredited courses.

"Mentor-Apprentice" System

TheUnited Water Group Mentor-Apprentice Management System (Trial)delineatesessential technical roles within subsidiary companies, aligning them with the requisite skillsand experiences of personnel to select mentor-apprentice pairings. This standardizedmentorship process is monitored, evaluated and rewarded by the Human ResourcesDepartment, culminating in the effective transfer of specialized knowledge and experience,thereby elevating the caliber and productivity of professional talent development.

accredited coursesAs of 2023the Company boasts

certified internal trainers

Total employee training

participations

3,338

Average training hoursallocated per employee

17.01

hours

Total investment in employee

training

RMB

845,000

Overall training hours completed

by employees

23,768.02

hours

Rate of employee training

coverage

83.36

%

2023

Breakdown of average training hours byemployee category

Breakdown of average training hours by genderTraining coverage by employee category

Training coverage by employee category

For senior managementHours for senior management

For middle managementHours for middle management

For male employees

For female employeesHours for female employees

Hours for male employees

For general staffHours for general staff

15.78

16.3489.50

81.06

30.21

20.9057.73

9.4960.00

85.33

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

Beyond routine interactions, weconduct quarterly reviews and annualperformance appraisals to provideemployees with timely feedback on theirstrengths and areas for improvement,thus supporting their ongoingdevelopment.

Closed-LoopManagement

RegularCommunication

We have implemented a closed-loopperformance management cycle thatencompasses goal-setting, ongoingfeedback, daily mentoring, performanceevaluations and developmentalenhancements, all of which are designedto help our employees continuouslyrefine their work and boost theircompetitive edge professionally.

Our performance target system operateson three levels—company, department, andindividual—integrating Key Performance(KPIs) and Objectives and Key Results(OKRs) to evaluate performance, criticalevent behavior,t, and skill quality. Thislayered, holistic approach to performanceassessment actively engages and motivatesour employees.

We've established a transparent processfor employees to give feedback on theirperformance evaluations. A dedicatedteam reviews this feedback thoroughly andmakes impartial judgments to enhance ourperformance review system continuously.

Three-Tier

Goals

PerformanceAppeals

Scientific performance management

Career DevelopmentUnited Water places a high value on the outstanding performance of each employee, offering equal opportunities for promotion andextensive possibilities for career development. This commitment is realized through the creation of clear promotion paths, the implementationof standardized performance management systems, the provision of varied growth incentives, and the acknowledgment and rewardingof employee contributions and achievements from a spectrum of perspectives. The aim is for employees to reach new heights in theirprofessional journeys while contributing positively to the Company's enduring success.

Accessible promotion channels

We have established dual career development paths for technical and managerial growth, with annual performance evaluations and promotionopportunities open to all staff members, guaranteeing both lateral and upward mobility within the Company and fostering an equitable,transparent promotion process.

Growth and development incentives

In 2023, we launched the United Water Group "Co-Development with Me and the Company" Internal Reward System, incentivizing employeeswho contribute valuable suggestions, advance their skills or garner external accolades. This initiative motivates our entire workforce to pursuelifelong learning and active engagement, fostering both personal growth and the Company's advancement.

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

WaterProductionConsultantofJiangsuUnited

WaterTechnologyCo.,Ltd.Zhou Yunsheng

GeneralManagerofUnitedWater

GroupSuqianRegion

Zeng Zhen

ProjectManagerofConstructionManagementCenteratUnitedWaterGroup

Shen Wenqi

ManagerofWaterProductionDepartmentat

SanmenxiaUnitedWaterCo.,Ltd.

Xiao Yaya

"Just as when ten thousand archers draw their bows to releasea single arrow, the aim is true and the target always struck." Forover two decades, the team at United Water has banded together,forging excellence through collective effort. In celebration of ourtwentieth year, we have proudly instituted the "United Water TwentyKey Figures in Two Decades Award". This award seeks to honor thededication and relentless endeavors of those within the Companyover this substantial period. We shall reflect upon the growth andheritage of United Water during these two decades, galvanizingour staff to embrace the future with solidarity and tenacity.

GeneralManagerofSuqianUnited

MunicipalEngineeringCo.,Ltd.

Liang Dan

FinanceDirectorofUnitedWater

GroupHubeiRegion

Wei Fen

MaintenanceSupervisorofYangheServiceCenteratJiangsuUnitedWaterTechnology

Co.,Ltd.

Zang Shiwei

DeputyGeneralManagerofSuqianUnited

MunicipalEngineeringCo.,Ltd.

Zhang Dong

ElectricalEngineerofMechanicalandElectricalEquipmentDepartmentatJiangsuUnitedWater

TechnologyCo.,Ltd.

Zhang Xiaochao

SeniorFinanceManagerofUnited

WaterGroup

Mao Shuyun

U

nited

W

ater

Twenty Key

Figures in Two

Decades

United Water: Twenty Key Figures

in Two Decades

Jiangsu United Water Technology Co., Ltd.

DeputyManagerofPipelineDepartmentatJiangsuUnitedWaterTechnologyCo.,Ltd.

Han Chao

WaterQualityTestingSupervisorofSuqian

MinxinWaterQualityTestingCo.,Ltd.

Tu Jinping

SupervisorofMechanicalandElectricalDepartmentatSuizhouUnitedWaterCo.,Ltd.

Zhang Zhengyuan

ManagerofWaterProductionDepartmentIat

XianningUnitedWaterCo.,Ltd.

Huang Wanchun

PipelineMaintenanceWorkerofPipelineDepartmentatXianningSiyuanWaterCo.,Ltd.

Shi Jibing

ElectricalEngineerofMechanicalandElectrical

EquipmentDepartmentatXianningUnited

WaterCo.,Ltd.

Wan Chaowei

ManagerofEngineeringCostDepartmentatXianningUnitedMunicipalEngineeringCo.,Ltd.

Huang Chen

AssistanttotheGeneralManageratRuichang

UnitedWaterCo.,Ltd.

Wang Dingguo

ManagerofPipelineCustomerServiceDepartmentatSanmenxiaUnitedWaterCo.,Ltd.

Zhang Xiaobo

ElectricalEngineerofTechnicalDepartmentatShanxiLianzhuoMunicipalEngineeringCo.,Ltd.

Wang Zhangeng

Appendix

Jiangsu United Water Technology Co., Ltd.

Appendix

About This Report

ThisreportrepresentstheinauguralEnvironmental,Social,andGovernance(ESG)reportofJiangsuUnitedWaterTechnologyCo.,Ltd.ItconveystheCompany'sstance,achievements,andsignificantperformanceinsustainabledevelopment,adequatelyaddressingstakeholderconcerns.

Inthisreport,"JiangsuUnitedWaterTechnologyCo.,Ltd."maybealternativelyreferredtoas"UnitedWater,""theCompany,"or"we"forbrevityandreadability.

ThisreportcoverstheperiodfromJanuary1,2023,toDecember31,2023,althoughsomecontentmaybrie?ycoveractivitiesfromadjacentyears.Thisisanannualreport.

Allinformationand?guresdisclosedhereinaresourcedfromUnitedWateranditssubsidiaries.

Definition of Terms

TheCompanyassertsthatthisreportisfreefromanyfalserecords,misleadingassertions,ormaterialomissions,andweacceptfullresponsibilityforitsveracity,precision,andcomprehensiveness.

DataforthisreportoriginatesfromtheCompany'so?cialrecords,statisticaland?nancialreports,andsustainabilitypracticedocuments,allcompiledandvalidatedbyourESGteam.All?nancial?guresmentionedaredenominatedinRenminbi(RMB),unlessindicatedotherwise.

ThisreportiscomposedinadherencetotheGlobalSustainabilityStandardsBoard'sGRISustainabilityReportingStandards(GRIStandards),theChapter8SocialResponsibilityoftheGuidelinesforSelf-RegulationofListedCompaniesbyShanghaiStockExchange,andthenationalstandardGuidanceonSocialResponsibilityReporting(GB/T36001-2015).

Assurance of Accuracy

Sources of Information

Reporting Principles

BoththeChineseandEnglishversionsofthisreportareaccessibleontheCompany'swebsiteathttp://www.united-water.com.Shouldanydiscrepanciesarisebetweenthetwoversions,theChinesetextwilltakeprecedence.

Report Availability

Inourpursuitofreportingexcellence,wewelcomeyourperspectivesandsuggestions.Foranyinquiriesorproposalsregardingthisreport,pleasecontactusviaemailatIR@united-water.comortelephoneat021-62370178.

Invitation for Feedback

Time Range

Reporting Scope

Appendix

Jiangsu United Water Technology Co., Ltd.

Appendix

Jiangsu United Water Technology Co., Ltd.

IndicatorUnit2023Total assetsMillion RMB3,635.14Operating incomeMillion RMB1,127.81Operating profitMillion RMB214.44Total taxMillion RMB109.87Contractual capacityMillion tons per day2.7Completed capacityMillion tons per day1.4

IndicatorUnit2023

Average anti-corruption training duration per employeeHour1Anti-corruption training%100

IndicatorUnit2023New patents over the year/5Total active patents/14

Coverage rate of environmental protection training %100IndicatorUnit2023

Key performanceEconomic performance

Governance performanceAnti-corruption

IndicatorUnit2023

Environmental protection investmentMillion RMB141.74Proportion of environmental protection investment in operating revenue%12.57Number of environmental trainingTimes22Environmental training personnel/301

Environmental performanceEnvironmental management

Intellectual property protection

IndicatorUnit2023

GasolineLiters (L)154,466.54Diesel ConsumptionLiters (L)55,535.46Natural Gas Consumptionm

135,137.28LPG Consumptionkg5,463Electricity ConsumptionkWh130,418,203Total Energy Consumption

10,000 tons of standard coal

equivalent

16,451.62

Energy Consumption Density

10,000 tons of standard coalequivalent per RMB 10,000 of

revenue

0.15

Energy consumption

IndicatorUnit2023

Freshwater withdrawalsMillion tons224.9646Water plant self-consumptionMillion tons4.3996Rate of Water Used Internally%1.96Recycled water outputMillion tons49.9427Volume of Wastewater TreatedTons144,185,580Reduction in Pollutants (COD)Tons44,894

Water Resource Management

IndicatorUnit2023

Greenhouse Gas Emissions (Scope 1)Tons of CO

e799.38Greenhouse Gas Emissions (Scope 2)Tons of CO

e74,377.5Total Greenhouse Gas EmissionsTons of CO

e75,176.88CO

Emissions per Unit of Output

Tons of CO

e per RMB 10,000 ofrevenue

0.67

Greenhouse Gas Emissions

Appendix

Jiangsu United Water Technology Co., Ltd.

IndicatorUnit2023

VolumeofNitrogenOxidesEmittedTons0.00816VolumeofSulfurOxidesEmittedTons0.000528VolumeofParticulateMatterandSuspendedParticlesEmittedTons0.00504EmissionsofVolatileOrganicCompoundsTons0.00036

IndicatorUnit2023

Suppliers obtained quality management system certification%41.96Suppliers obtained environmental management system certification%22.69Suppliers obtained occupational health and safety management systemcertification

%22.69

IndicatorUnit2023Total number of employeesPersons1,407Job seekers hired during the reporting periodPersons198New graduate hiresPersons14Labor contract signing rate%100Employee union membership rate%56.19Number of employees by genderMalePersons961FemalePersons446Number of employees by age groupUnder 30 yearsPersons33631-40 yearsPersons59341-50 yearsPersons329Over 50 yearsPersons149Number of employees by management levelSenior managementPersons50Middle managementPersons225General staffPersons1,132Employee distribution by educationAssociate degree or belowPersons1,001Bachelor's degreePersons369Graduate degree/MBA or higherPersons37

IndicatorUnit2023

United Water Suqian Water Supply CompanyCustomer complaint resolution rate%100Customer satisfaction rate%98

Xianning United Water Co., Ltd.

Customer complaint resolution rate%100Customer satisfaction rate%96

Exhaust Emissions

IndicatorUnit2023Volume of Hazardous Waste

Tons12.72Volume of Waste Recycled and Reused

Tons94,891

Waste Emissions

Customer equity

Supply chain management

Employment

IndicatorUnit2023

R&D investmentRMB1,763,000Number of R&D personnelpersons7

Social performanceR&D Innovation

Appendix

Jiangsu United Water Technology Co., Ltd.

IndicatorUnit2023Proportion of female employees%31.70Proportion of ethnic minority employees%1.28Proportion of employees with disabilities%0.14Parental leave return rate%95.65

IndicatorUnit2023

Total expenditure on staff trainingRMB845,000Total employee training participations/3,338Overall training hoursHours23,768.02Average training hours allocated per employeeHours17.01Training hours for male employeesHours30.21Training hours for female employeesHours15.78Training hours for senior managementHours9.49Training hours for middle managementHours20.90Training hours for general staffHours16.34Rate of employee training coverage%83.36Training coverage for male employees%85.33Training coverage for female employees%81.06

Employee distribution by regionChinaPersons1,367OverseasPersons40

IndicatorUnit2023IndicatorUnit2023

Training coverage for senior management%60.00Training coverage for middle management%57.73Training coverage for general staff%89.50

DEI

Employee training

IndicatorUnit2023

Total safety production investmentRMB6,179,800Fatalities from safety incidentsPerson0Safety inspectionsTimes294Emergency drillsTimes61Safety trainingParticipants2,742Total duration of safety training Hours589.25Incidence of occupational disease%0Number of work injury cases among employees/3Total days lost to work injuriesDays85Days lost per million in revenue due to work injuriesDays0.075

Occupational health and safety

IndicatorUnit2023

Charitable donationsRMB1543,300Employee volunteer service hoursHours1,389.5Employee participation in volunteer service activities/459

Community engagement

Appendix

Jiangsu United Water Technology Co., Ltd.

ContentsGRI Standards

Message from the Chairman2-6/2-17Our 20-Year Journey2-6/203-2Corporate Core Values-Business Overview2-1/2-6/201-1Our Achievements in 2023201-1ESG Management2-12/2-14/2-26/2-29/3-1/3-2Special Topic203-1/203-2Green PlanetWater Resource Management3-3/303-1/303-2/303-3/303-5Eco-Environmental Protection3-3/304-3Climate Action3-3/203-2/302-5Waste Management3-3/306-1/306-2/Green Philosophy Advocacy3-3/302-4Enhanced Environmental Management3-3/302-1/302-3/305-1/305-2/305-4/305-5/305-7/306-3/306-4Reliable PartnerStable Water Supply3-3/203-1/203-2Premium Services2-6/3-3/417-1Community Involvement203-2

Excellence in Operations

Corporate Governance2-9/2-10/2-16/3-3/405-1Business Ethics3-3/205-2Responsible Procurement3-3/308-1/414-1Line of Safety Defense3-3/403-1/403-2/403-3/403-5/403-6/403-7/403-9/403-10Advanced TechnologySmart Water Utilities3-3/2-23/2-27R&D Innovation3-3/203-2Intellectual Property Rights3-3Talent OrientedEmployment & Protection of Employee Rights2-7/2-30/401-1/405-1Diversity & Employee Care3-3/203-2/401-3Talent Cultivation & Development3-3/404-1United Water: Twenty Key Figures in Two Decades-

Appendix

2-2/2-3/2-7/205-2/302-1/302-3/303-3/305-1/305-2/305-4/305-7/306-3/306-4/308-1/401-1/401-3/403-5/403-9/401-1/405-1/414-1

ContentsGRI Standards

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