20232023Sustainability ReportSustainability Report
About This ReportAbout This ReportThis report is an authentic reflection of Shenzhen Lions King Environmental Group Company Limited("Lions King Group", "the Group", or "we") actively practicing the concept of sustainable development andpromoting high-quality development. The forward-looking descriptions in the report, such as business plansand development strategies, do not constitute substantive commitments by the Group to investors.Reporting PeriodReporting PeriodThis is the Group's first sustainability report, reflecting our performance in sustainability governance andESG (Environmental, Social, Governance). This report is an annual report covering the financial year fromJanuary 1, 2023, to December 31, 2023. To enhance the comparability and forward-looking nature of thisreport, some content may appropriately reference past years or include forward-looking descriptions. Thereport is published annually, in line with the financial year.Reporting ScopeReporting Scope
The organizational scope of this report includes Shenzhen Lions King Environmental Group CompanyLimited (stock code: 301305.SZ) and its subsidiaries.Reporting FrameworkReporting FrameworkThis report is prepared with reference to the Guidelines of Shenzhen Stock Exchange ("SZSE”) forSelf-discipline Supervision of Listed Companies No.2 - Standardized Operation of GEM Board ListedCompanies (2023 Revision Version), No. 17 - Sustainability Reporting (Pilot Version), and the "GRIStandards 2021" issued by the Global Reporting Initiative. It also references and responds to the UnitedNation’s Sustainable Development Goals (SDGs) and combines the Group's current situation in sustainabledevelopment and ESG.Data Sources and Reliability AssuranceData Sources and Reliability AssuranceAll information, data, and cases cited in this report come from the Group's official documents, as well asenvironment, social, and governance information compiled, summarized, and reviewed by the Group. Unlessotherwise specified, the currency units involved in the report are in CNY. Lions King Group guaranteesthat the contents of this report do not contain any false records, misleading statements, or significantomissions.Feedback and OpinionsFeedback and OpinionsPlease contact us by phone, email, or mail using the contact information provided below.Contact Address: Lions King Technology Park, No. 2, Pingqiao Road, Gaoqiao Community, Pingdi Street,Longgang District, ShenzhenPhone: 0755-89890997Email: dongmiban@leoking.comOfficial Website: www.leoking.com
GovernanceSustainability Governance SystemSustainability Governance SystemCompliance Management and ESG Risk Compliance Management and ESG RiskManagementManagementStrategic Sustainability GoalsStrategic Sustainability GoalsCommunication with Our StakeholdersCommunication with Our StakeholdersMateriality AssessmentMateriality Assessment
About Lions King GroupGroup OverviewGroup OverviewCore BusinessCore BusinessFuture PlansFuture PlansOur CultureOur CultureAnnual HighlightsAnnual HighlightsAnnual HonorsAnnual Honors
EnvironmentalResponse to Climate ChangeResponse to Climate ChangeTurning Waste into TreasureTurning Waste into TreasurePollutant Prevention and Ecological ProtectionPollutant Prevention and Ecological Protection
SocialPeople-oriented Approach Caring for EmployeesPeople-oriented Approach Caring for EmployeesSupply Optimization and Quality ControlSupply Optimization and Quality ControlCo-creating Health and Common WelfareCo-creating Health and Common WelfarePublic Welfare and Social ContributionPublic Welfare and Social Contribution
CONTENTSCONTENTS
About this ReportAbout this ReportMessage from the ChairmanMessage from the ChairmanAppendix I: Index TableAppendix I: Index TableAppendix II: Sustainability PerformanceAppendix II: Sustainability PerformanceAppendix III: Readers’ FeedbackAppendix III: Readers’ Feedback
Our Focus: New Quality Productive ForcesStrong Research Focus on High-tech IndustriesStrong Research Focus on High-tech IndustriesFuture Orientation in Intelligent Synthetic BiologyFuture Orientation in Intelligent Synthetic BiologyEmbrace Digitalization with Smart Information Embrace Digitalization with Smart InformationSystemsSystems
National Intelligent Synthetic Biology Industry Innovation Center ("National Innovation Center") with the ShenzhenInstitute of Advanced Technology. Our deep research into gene technology, microbial technology, and dropletmicrofluidics technology is leading the way in intelligent synthetic biology. We launched an independent subsidiaryand brand, Zhongke Langjian, and successfully started the human milk oligosaccharides ("HMOs") production line inZhuhai.Our HMOs production strains received safety certifications from the Ministry of Agricultureand Rural Affairs("MOARA"). Lions King Group is in the pioneer position in China producing the series of tetracycline and newtetracycline HMOs products. We were the first in China to achieve pilot scale-up of these products, with high-quality products meeting strict industry standards.Each innovation strengthens our intelligent synthetic biology business. Using synthetic biology technology,we create advanced health products, drive industry development, and explore high-value areas, boosting themomentum of New Quality Productive Forces.In 2023, Lions King Group sticked to long-termism with our foundation on corporate governance. We are advancing In 2023, Lions King Group sticked to long-termism with our foundation on corporate governance. We are advancingsteadily in creating value to society, our shareholders, customers, and employees.steadily in creating value to society, our shareholders, customers, and employees.We actively participated in charitable and public welfare activities, contributing to the social and economicdevelopment of impoverished areas, disaster reconstruction, and educational advancement. Lions King Group wasamong the first listed biotechnology companies to contribute to public welfare in the Tibetan region, supportinglocal cultural education and tourism, and exploring effective mechanisms for poverty alleviation and industrydevelopment.We also focused on internal corporate governance, fulfilling our social responsibilities as a listed company. Weprovided a fair, harmonious, and healthy working environment, helping employees achieve self-worth. In thereporting period, we were recognized by Forbes as "China's Top 50 ESG Innovative Enterprise". On our ESG journey,we are committed and strive for excellence.With determination, no goal is out of reach.With determination, no goal is out of reach.The next ten years are crucial for achieving sustainable development of our planet. Lions King Group will continueto optimize and explore diverse ESG practices, focusing on biotechnology, and making more positive contributionsin environmental protection, social responsibility, and corporate governance.We firmly believe that we will find partners with shared goals in our journey to benefit humankind and the planetwith biotechnology and our solutions. Together, we will make the most of our time, travel far, and create lastingvalue.In 2024, we are eager to join hands with you to build dreams and create a better life together!
Dr. Jianxiang ChenDr. Jianxiang ChenChairman, Shenzhen Lions King Environmental Group Company LimitedChairman, Shenzhen Lions King Environmental Group Company Limited
Message from the ChairmanMessage from the Chairman
With a strong commitment to fostering New Quality Productive Forces and high-quality development, LionsKing Group has made significant strides in the intelligent synthetic biology industry, progressing steadily andconfidently.Highlighted in the Central Economic Work Conference and the 2024 Government Work Report, the intelligentsynthetic biology industry is pivotal for promoting sustainable social and economic development and ensuringthe nation's well-being.Given the promising outlook of this industry, Lions King Group, with over 20 years of experience inbiotechnology resource utilization, continues to refine its business model and enhance its product offerings.We are strengthening and expanding our two main businesses, including "Biomass resource regeneration" and"Intelligent synthetic biology". On our journey to becoming a "world-class intelligent biotechnology enterprise",we remain determined and relentless.
In 2023, we focused on technological innovation to drive sustainable value growth.In 2023, we focused on technological innovation to drive sustainable value growth.
Our independently developed strain construction technology, microbial fermentation technology, and bio-enzyme technology were applied more effectively in our resource regeneration centers, resulting in a 30%increase in biomass waste treatment efficiency, a 25% rise in methane production, and a biodiesel yieldimprovement to 94%. We expanded the Shenzhen Project from 230 tons/day to 600 tons/day and expect theGuangzhou Project to grow from 2,040 tons/day to 3,100 tons/day, achieving the highest market share infirst-tier cities nationwide...These solid achievements help us expand our biomass resource regeneration business, turning biomass wasteinto valuable resources and promoting bioenergy globally, steadily advancing high-quality development.This year, we established a high-standard synthetic biology experimental platform and co-established the
0101
About About
Lions King GroupLions King Group
Group OverviewGroup OverviewCore BusinessCore BusinessFuture PlansFuture PlansOur CultureOur CultureAnnual HighlightsAnnual HighlightsAnnual HonorsAnnual Honors
About Lions King GroupAbout Lions King GroupGroup OverviewGroup OverviewLions King Group, established in 2001, aims to become a world-class intelligent biotechnology company.Lions King Group was listed on the SZSE GEM Board on May 23, 2023, with stock code 301305.Currently, the Group is a leading enterprise in biotechnology resource utilization in China and a national high-tech enterprise. The Group ranks among the "Top 70 Innovative Enterprises in Shenzhen" alongside Huaweiand DJI, and has been recognized by E20 with "Annual Benchmark for Organic Waste Treatment Investmentand Operation" Award for 7 years. In November 2023, we were honored by Forbes as "China's Top 50 ESGInnovative Enterprise".As of the end of the reporting period, the Group has 34 biomass resource regeneration centers nationwide.We use advanced microbial technology and biocatalysis technology to realize the resource recovery ofbiomass wastes into green energy products such as biodisel, clean energy, and mathane.At the meantime, Lions King Group has vigorously invested in the intelligent synthetic biology field. Relyingon our independently-developed synthetic biological technology, and combining with AI, we safeguardhuman life and health with advanced health products like HMOs.Core BusinessCore Business
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability ReportAbout Lions King GroupAbout Lions King Group
Biomass Resource Regeneration BusinessBiomass Resource Regeneration BusinessTurning Waste into Treasure through Turning Waste into Treasure throughBiotechnology with a Higher Economic ValueBiotechnology with a Higher Economic Value
Top Ranking in Market Share in China's Top Ranking in Market Share in China'sFirst-tier Cities and Access to Global MarketFirst-tier Cities and Access to Global Market
Effectively Addressing Pain Points and Effectively Addressing Pain Points andDifficulties at Government CustomersDifficulties at Government Customers
Significantly Contributing to Carbon Significantly Contributing to Carbon
ReductionReduction
In the reporting period, Lions King Group has focused on cultivating New Quality Productive Forcesand achieving high-quality development with technological innovation as core driver. Based on a singletechnology platform, that is the Integrated Innovation Center for Intelligent Synthetic Biology, the Group hasdeveloped two main businesses including "Biomass resource regeneration" and "Intelligent synthetic biology"Biomass Resource Regeneration BusinessBiomass Resource Regeneration BusinessLions King Group's biomass resource regeneration business operates and managing high-standard biomassresource regeneration centers. Enabled with biotechnology, we uniformly plan and construct facilities forprocessing various types of biomass waste, such as food waste, kitchen waste, and waste oil, and achievesynergistical processing and deep resource recovery of various biomass wastes. This business modeleffectively realizes the transition from "biological waste treatment" to "intelligent synthetic biology" withfolloing 4 significant breakthroughs during the reporting period.
Turning Waste into Treasure through Biotechnology with a Higher Economic ValueTurning Waste into Treasure through Biotechnology with a Higher Economic Value
Our biomass resource regeneration centers usemicrobial fermentation technology to cultivatehigh-quality methanogenic bacteria, treatbiomass liquid waste, and produce methanestably. This technology achieved a 30% increasein biomass waste treatment efficiency, and a25% rise in methane production.Microbial purification technology is adoptedto cultivat thiobacter to purify methane. Theremoval rate of hydrogen sulfide reached 98%.This technology has strong adaptability andlower operating cost.
One FoundationOne FoundationTwo Blooming FlowersTwo Blooming Flowers
Biomass Resource Biomass ResourceRegeneration BusinessRegeneration Business
Intelligent Synthetic Intelligent SyntheticBiology BusinessBiology BusinessHigh-standard Integrated High-standard IntegratedInnovation PlatformInnovation Platform
A Fully Traceable, Ultra-low Carbon Business System for the Entire A Fully Traceable, Ultra-low Carbon Business System for the EntireSupply Chain of the Bottle Cap Industry, Covering Upstream, Supply Chain of the Bottle Cap Industry, Covering Upstream,
Midstream, and Downstream SectorsMidstream, and Downstream Sectors
0202
Midstream MidstreamProductionProduction0101Upstream Collection and Upstream Collection and
TransportationTransportationAI Digitized Collection and AI Digitized Collection andTransportationTransportation
0303
Downstream Downstream
ProductsProducts
Biotechnological Resource Biotechnological Resource
UtilizationUtilization
Green Energy Products with Green Energy Products withUltra-low Carbon EmissionsUltra-low Carbon Emissions
Methane is also used to produce clean electricity. Besides daily production and operation use of our biomassresource regeneration centers, the surplus power can be incorporated into the grid to create economicvalue.Lions King Group adopts biocatalysis technology to produce biodisel from waste oil recycling, and we arethe first in China to use this advanced technology for large-scale biodiesel production. This approach can beoperated in normal temperature and pressure, and is environmentally friendly, and higher in yield.Currently, the combined production capacity of the Group's Guangzhou, Shenzhen, and Beijing Tongzhoubioenergy projects is 420,000 tons per year. The Beijing production base under construction is plannedto have a capacity of 200,000 tons/year, placing it at the forefront domestically. Guangzhou Project wasshortlisted in the first batch of pilot biodisel projects publicized by the National Energy Administration inApril 2024.With the same business model, Lions King Group's landmark biomass resource regeneration centerprojects nationwide has effectively supported local socio-economic development and the biomass resourceregeneration industry. Take Guangzhou Project as example, it has realized over 3 times of operating incomeand over 8 times of tax amount compared with similar projects, whereas the cost is less than 20% of theproject revenue.The Group has built a traceable, ultra-carbon-reducing business model covering the entire industry chain,establishing itself as a leader in the biomass resource regeneration field.Top Ranking in Market Share in China’s First-tier Cities and Access to Global MarketTop Ranking in Market Share in China’s First-tier Cities and Access to Global Market
By the end of the reporting period, Lions King Group's biomass resource regeneration business focuseson key economic zones such as the Guangdong-Hong Kong-Macao Greater Bay Area, Beijing-Tianjin-Hebei,and the Yangtze River Delta. The Group has invested in, constructed, and operated 34 biomass resourceregeneration centers nationwide. Our processing scale in first-tier cities ranks first, and our total processingscale is also among the top in China, in which 5 projects’ daily processing capacity already exceed 1,000tons.At the same time, Lions King Group's biodiesel sales are transitioning from traditional traders to internationalenergy clients. The Group is expanding large-scale partnerships both domestically and internationally,with rapid business growth in the EU, United States, and Japan. During the reporting period, the Group'sbioenergy business system and product capabilities continued to upgrade, adding 105 new procurementand sales partners throughout the year, with stable growth in biodiesel sales. The Group signed a "StrategicCooperation Framework Agreement" with Sinopec CNOOC Marine Fuel Supply Co., Ltd. to jointly preparethe application for the promotion and application project of B24 biodiesel (fuel oil) for international maritimevessels in the Nansha New Area of China (Guangzhou) Pilot Free Trade Zone.Effectively Addressing Pain Points and Difculties at Government CustomersEffectively Addressing Pain Points and Difculties at Government Customers
Lions King Group has pioneered the "centralized, large-scale, high-standard" biomass resource regenerationcenter model that offers one-station solutions to customers. This creative model simplifies the planningand mangement procedures, saves financial investments as well as land spaces. It also drives industrialdevelopment and create green benefits, and can avoid food safety issues to a great extent.Signicantly Contributing to Carbon ReductionSignicantly Contributing to Carbon Reduction
By the end of the reporting period, Lions King Group achieved over 1.226 million tons of carbon reduction through deeprecycling of organic waste like kitchen and food waste using biotechnology. The biodiesel and other recyclable productsthe Group produced have achieved over 777,000 tons of carbon reduction, totaling approximately 2.003 million tons.
BeijingBeijingJiangsuJiangsuJiangxiJiangxiFujianFujianGuangdongGuangdongHunanHunanGuangxiGuangxiGuizhouGuizhouSichuanSichuanYunnanYunnan
SingaporeSingaporeMalaysiaMalaysiaIndonesiaIndonesia
National FootprintsNational Footprints
30+30+
Franchise FranchiseProjectsProjects
CircularCircularEconomyEconomyIndustrialIndustrialParksParks
BiodieselBiodieselProjectsProjects
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability ReportAbout Lions King GroupAbout Lions King Group
Landmark ProjectsLandmark Projects
Beijing Tongzhou ProjectBeijing Tongzhou ProjectWWorld's leading, high-standard ultra carbon reduction bioenergy plantorld's leading, high-standard ultra carbon reduction bioenergy plantProcessing capacity: 2,100 tons per dayProcessing capacity: 2,100 tons per day
Guangzhou ProjectGuangzhou ProjectChina's largest biotechnology resource benchmarking projectChina's largest biotechnology resource benchmarking projectProcessing capacity: 2,040 tons per dayProcessing capacity: 2,040 tons per day
Zhongshan ProjectZhongshan ProjectThird generation synthetic biology technologyThird generation synthetic biology technologyProcessing capacity: 1,004 tons per dayProcessing capacity: 1,004 tons per day
Shenzhen ProjectShenzhen ProjectOne of the rst biomass waste treatment pilot projectsOne of the rst biomass waste treatment pilot projectsOur rst modern science and education base of biomass resource Our rst modern science and education base of biomass resourceregenerationregeneration
Maoming ProjectMaoming ProjectOil-electric hybrid process modelOil-electric hybrid process model100% resource regeneration of the biomass waste and household waste100% resource regeneration of the biomass waste and household waste
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Intelligent Synthetic Biology BusinessIntelligent Synthetic Biology BusinessSynthetic biology, being a highly disruptive and cutting-edge, is a key leverage point for high-qualityeconomic development in China and is becoming a major focus. China's14th Five-Year Planfor BiologicalEconomy Development aims for a total bio-economy output of 22 trillion CNY by 2025.In the reporting period, Lions King Group established an independent subsidiary and brand, ZhongkeLangjian, focusing on HMOs research, production, and sales. This business had two main achievements in2023 as following.One High-standard Integrated Innovation PlatformOne High-standard Integrated Innovation Platform
Future PlansFuture Plans
Initiate SAF ProjectsInitiate SAF ProjectsDomestically, we will focuson key cities like Beijing,Guangzhou, and Shenzhen.Internationally, we will targetregions with abundantwaste oil resources, suchas Malaysia, Indonesia, andBrazil, especially in SoutheastAsia and South America.We aim to accelerate theestablishment of SAFproduction demonstrationprojects in these regions.
Expand Bio-marine Fuel Expand Bio-marine Fuel
ApplicationsApplications
Lions King Group will activelyrespond to the NationalEnergy Administration'snotice on promotingbiodiesel application pilotdemonstrations. We aim topromote the use of biodieselin marine fuel oil, expandingthe green value of biodieseland other renewable liquidfuels, and helping reduceemissions in China's shippingindustry.
Enhance Industry Enhance IndustryCollaborationCollaborationWe will deepen cooperationwith leading enterprises likePetroChina and Sinopec.This collaboration will coveroil raw material supply, SAFproduction, and marinefuel oil, achieving resourcesharing and complementaryadvantages. Additionally,our Singapore subsidiarywill strengthen ties withinternational customers andparticipate in internationaltrade competition.
High Value-added High Value-addedResource Product Resource Product
SystemSystem
SAFSAF
BiogasBiogas
Bio-marine FuelBio-marine FuelBiodieselBiodiesel
Green ElectricityGreen Electricity
Since 2023, driven by technological innovation, Lions King Group has built an industry-leading integratedinnovation center for synthetic biology. This includes a high-throughput screening platform based onmicrofluidics, a bioinformatics + AI technology platform, a molecular biology (genetic engineering) platform,and a fermentation and testing platform. These facilities drive the development of synthetic biology and thecreation of various HMOs production strains and fermentation processes.During the reporting period, Lions King Group co-founded the National Innovation Center with the ShenzhenInstitutes of Advanced Technology, to promote the development and application of synthetic biologicaltechnology.Industry-leading Position in HMOs Research OutcomeIndustry-leading Position in HMOs Research Outcome
Currently, Lions King Group is the first in China to achieve pilot scale-up of LNT (lacto-N-tetraose) and LNnT(lacto-N-neotetraose) in HMOs, with industry-leading product purity. As result, our Zhuhai HMOs project hasbecome the first industrialized LNT and LNnT production project in China.
In January 2024, multiple HMOs production strains independently developed by Lions King Group obtainedsafety certification from MOARA. Regulatory approvals from the National Health Commission are expectedwithin a year.
Biomass Resource Regeneration BusinessBiomass Resource Regeneration Business
High value-added products with signicant economic benetsHigh value-added products with signicant economic benets
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Our Philosophy Our Philosophy
Our Spirits Our Spirits
MissionMissionFocus on Top Customers’Needs and Challenges.ProvideCompetitive Solutions, CreateMaximum Value for Customers.
Contribute to A Better Life inHuman Society
ValueValueCustomer-centricityStriver OrientedCriticism and Self-criticismInnovation and ExcellenceHonesty, Integrity, Cooperation,and Mutual BenetsHappy Work and Happy Life
VisionVisionBecome a World-class IntelligentBiotechnology EnterpriseThrive for Over 100 Years
The Group's English name Lions King has the meaning of a lion king. It conveys the belief and execution inbecoming a leader in the industry, as well as the courage, boldness, and strength in pursuit of excellenceand value creation.
IntelligenceIntelligenceCourageCourage
LoyaltyLoyaltyTeamworkTeamworkActionActionResponsibilityResponsibilityLion Culture and King Lion Culture and King
PowerPower
Respect for Nature and Respect for Nature andLove for MankindLove for Mankind
Chivalrous SpiritChivalrous Spirit
Our CultureOur Culture
Lions King Group's wholly-owned subsidiary, Zhuhai Langjian Biotechnology Co., Ltd. ("ZhuhaiLangjian"), is accelerating the construction of its HMOs project production base. The firstphase, with an annual capacity of 260 tons, is expected to be completed in the second half of2024. The second phase, with an annual output of 740 tons, is expected to operate in 2026,bringing the annual capacity to 1,000 tons.The Group will continue to increase investment in research and development ("R&D"). Wewill collaborate with the Shenzhen Institutes of Advanced Technology, Chinese Academy ofSciences, and invest in the construction of the National Innovation Center. By partnering withleading biotechnology companies, research institutions, and other stakeholders, Lions KingGroup aims to create an open, shared, forward-looking, and interdisciplinary innovation platform.This will accelerate the advancement of basic research, platform construction, and translationalapplications in synthetic biology. We will steadily promote the basic research, implementation,and production of various projects in the field of synthetic biology.
Intelligent Synthetic Biology BusinessIntelligent Synthetic Biology Business
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability ReportAbout Lions King GroupAbout Lions King Group
NovemberNovember
Chairman Chen Jianxiang was invited to attend the 26th Beijing-Hong Kong Economic
Cooperation SymposiumGuangzhou biodiesel project started direct export business with FOB trade modelCommenced construction of the Beijing Tongzhou Biomass Resource Regeneration Center
("Beijing Tongzhou Project") Partnered with Shenzhen Institutes of Advanced Technology, Chinese Academy of Sciences
Become a partner in the Xingbo Shenghui Private Equity Fund
DecemberDecemberSuccessfully promoted Guangdong Province's biodiesel pilot program to be submitted
to the National Energy AdministrationSigned a "Strategic Cooperation Framework Agreement" with Sinopec CNOOC Marine
Fuel Supply Co., Ltd.Established new subsidiaries Lions King Asia Development Holdings Pte Ltd inSingapore and Huarong International Investment (Hong Kong) Co., Ltd. in Hong Kong
Annual HighlightsAnnual Highlights
FebruaryFebruary
Established Lions King International Technology Group Co., Ltd. in Hong Kong
MayMayListed on the SZSE GEM Board
AugustAugustEstablished Shenzhen Zhongke Langjian Biotechnology Co., Ltd.
OctoberOctoberSuccessfully won the bid for Beijing Tongzhou ProjectInvested 40 million CNY to establish Zhuhai Langjian Biotechnology Co.,Ltd., focusing on HMOs business
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Annual HonorsAnnual Honors
National High-tech Enterprise
R&D and Innovation HonorsR&D and Innovation Honors
Shenzhen Specialized and Special New SMEsKey Enterprise of Shenlong Talent
ESG HonorsESG Honors
Technical Project HonorsTechnical Project Honors
Environmental Benchmark HonorsEnvironmental Benchmark Honors
Top 70 Innovative Enterprises in Shenzhen
Shenzhen Innovative SMEs
2023 Forbes China ESG Innovative Enterprise2023 ESG Model Enterprise Award in Shenzhen
Leading Enterprise in Organic Waste Field 2023Guangdong Province Key Environmental Protection Enterprise during the 13th Five-Year PlanE20 "Annual Benchmark for Organic Waste Treatment Investment and Operation" Award
Environmental Integrity Enterprise Rating "Blue Label"Guangzhou Project - Guangzhou Green Factory
Urban Environment Industry Innovation AwardGuangzhou Project - Pioneer Practice Project of 2023 Qingxin AwardsZhongshan Project - Excellent Case of Organic Waste TreatmentGuangzhou Project - Excellent Case of Organic Waste TreatmentMaoming Project - Excellent Case of Municipal Solid Waste Treatment
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability ReportAbout Lions King GroupAbout Lions King Group
Strong Research Focus on High-tech Strong Research Focus on High-techIndustriesIndustriesFuture Orientation in Intelligent Future Orientation in IntelligentSynthetic BiologySynthetic BiologyEmbrace Digitalization with Smart Embrace Digitalization with SmartInformation SystemsInformation Systems
6,0726,072
Million CNY R&D Investment
105105
R&D personnel totaled
30.5% 30.5%
R&D personnel holding Masterdegree or above168 168
patents
Our Focus: Our Focus:
New Quality New Quality
Productive ForcesProductive Forces
Our Focus: Our Focus:
New Quality Productive ForcesNew Quality Productive ForcesLions King Group is involved in the synthetic biology industry, advanced environmental protection industry,resource regeneration industry, other resource regeneration activities, and biodiesel production. The nationalfocus on high-end manufacturing industries, represented by bioenergy and synthetic biology, along with thegoals of high-quality development and carbon neutrality, indicates a broad future for us.Strong Research Focus on High-tech IndustriesStrong Research Focus on High-tech IndustriesAs a national high-tech enterprise, Lions King Group has established a comprehensive technologicalinnovation system and industry-leading innovation capabilities. We have built an enterprise innovationplatform that includes process design research, mechanical design research, pipeline design research,thermal resource design research, and microbiological laboratories.We continuously increase our investment in biotechnology research and development. We recruit top talentsin biotechnology from world-renowned universities and collaborate with institutions like Harvard Universityand the Chinese Academy of Sciences. We have built a high-standard, industry-leading biotechnologyresearch center to ensure our biotechnologies remain at the forefront. During the reporting period, theGroup's R&D investment exceeded 60 million CNY, accounting for 3.5% of revenue. The R&D personneltotaled 105, accounting for 6.5% of the workforce, with 32 holding master's degrees or higher. Over thepast three years, both the amount of R&D investment and its proportion of revenue have increased tovarying degrees.The Group has established a professional design and R&D team, possessing independent intellectualproperty rights for core technologies such as LCJ anaerobic microbiological technology, LBD biocatalyticdiesel production technology, and HMOs biosynthesis technology, with several technologies leadingdomestically. During the reporting period, the Group owned 168 patents, with 14 patent applications inprocess, many of which are leading domestically.Annual R&D investment (Million CNY) and Weight in Annual R&D investment (Million CNY) and Weight in
Total RevenueTotal Revenue
2021
Number of R&D Staff and Proportion in Total StaffNumber of R&D Staff and Proportion in Total Staff
2.2%2.2%
58.358.3
60.760.7
35.535.5
3.2%3.2%
3.5%3.5%
2022
9797
105105
6.4%6.4%
6.5%6.5%
202220232023
50.5%
19.0%
6.7%
23.8%
28.6%
19.0%
52.4%
Distribution of R&D Personnel by Educational Background and Age Group in 2023Distribution of R&D Personnel by Educational Background and Age Group in 2023
BachelorMasterDoctorOthers
40 and above30 and below30-40
Future Orientation in Intelligent Synthetic BiologyFuture Orientation in Intelligent Synthetic Biology
Centered on synthetic biology, the Group has built a high-standard integrated innovation platform at theheadquarters.Microuidic High-throughput Screening PlatformMicrouidic High-throughput Screening PlatformWe have a gene construction platform based on high-throughput flow imaging driven by data,featuring high throughput, automation, and high sensitivity. By using CRISPR high-throughputgenotype construction and droplet microfluidic, ultra-high-throughput characterization and testingtechnology, it enables comprehensive exploration of the relationship among the phenotypic genes,metabolism, and their correlation across the whole genome.Platform AdvantagesPlatform Advantages
Compatible with flow detection and analysis microfluidic chips and static co-culture micro-well chips.Capable of high-throughput flow imaging and static scanning, brightfield + multi-channel fluorescence,coaxial near-coherent light instantaneous focusing, etc.Supportive of single-cell PCR experiments.
Bioinformatics + AI Technology PlatformBioinformatics + AI Technology PlatformThe combination of bioinformatics and AI technology plays a synergistic role in enzyme research andproteomics research, providing powerful tools and methods for understanding enzyme functions andproperties and protein spatial structure simulation. The breakthrough in generative AI technologyfully unleashes the value of biological big data, creating a complete data closed loop constructed by"generation-feedback-optimization", breaking through the human computing limit and bringing bio-computing into the AI era.Platform AdvantagesPlatform AdvantagesUpstream optimization enhanced by AI algorithm enhances upstream optimization, with comprehensiveadvantages such as reducing by-products, impurities, downstream separation and purificationpressure, and saving raw material costs.
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability ReportOur FocusOur Focus
Molecular Biology (Genetic Engineering) Experimental PlatformMolecular Biology (Genetic Engineering) Experimental PlatformUsing gene editing technology, we introduce desired functional DNA fragments into model engineeringbacteria such as Escherichia coli and Pichia pastoris, altering the genetic information of strains at thegene level to regulate their production capacity and target product diversity.
Platform AdvantagesPlatform Advantages
The main research objects include true oxygen alkali-producing bacteria, E. coli, hydrolytic acid bacteria,yeast, lactic acid bacteria, spore bacteria, and photosynthetic bacteria. Notably, E. coli producing HMOsprovides more breast milk-like nutrients for infant formula, supporting early-life health.Fermentation and Testing PlatformFermentation and Testing Platform
It consists of fermentation and testing laboratories, equipped with fermenters of various volumes(5L-50L-100L-1,000L), enabling fermentation process scaling from 0-1-10, laying the foundation forindustrial production. The testing laboratory is equipped with various precision instruments, developingmultiple testing methods to complete the detection and separation of target product concentration,impurities, and isomers, achieving optimized strain metabolic pathways, high-density fermentation, high-purity separation and purification, and product quality control.Platform AdvantagesPlatform AdvantagesCapable of high-density fermentation and high-purity purification.100L-1,000L fermenters can meet sample mass production needs for other high-value biologicalproducts, providing conditions for industrializing other biological product incubation.
Embrace Digitalization with Smart Information SystemsEmbrace Digitalization with Smart Information SystemsLeveraging artificial intelligence and big data cloud platforms, Lions King Group independently developedan intelligent collection and transportation system, as well as an intelligent management platform for theentire chain of organic solid waste production, collection, and treatment, realizing data interconnectionamong waste-producing ends, collection and transportation ends, and production and management ends,forming comprehensive intelligent control over the entire process of kitchen waste generation, collection, andproduction.The intelligent collection and transportation system comprehensively utilizes core technologies such as theInternet of Things, artificial intelligence, and cloud computing to strengthen standardized management,improve collection and transportation efficiency, and provide effective data support for the Group's operationmanagement and the supervision of collection and transportation by regulatory authorities.The intelligent collection and transportation platform ensures system regulatory effectiveness acrossfour major application platforms, maximizing conflict resolution and eliminating non-standard operations,promoting seamless management.
PracticalityPracticality
Aim to achieve automatedand visualized monitoring andassessment methods
UsabilityUsabilityFully consider user experience,capable of integratingwith smart city systems,and compliant with unifiedmanagement
AdvancementAdvancementIntegrates multiple technologiessuch as AI weighing, AIrecognition, and AI planning,avoiding manual data tampering;data is transmitted in real-timeat the second level
MaturityMaturityEmploys mature, reliable,and high-performancetechnologies and products,aligning with currenttechnological developmentsand future trends
SecuritySecurityFinancial-grade networksecurity management, withsystem deployment divided byfunction and strong networkisolation between regions;core data is encrypted anddisplayed in a desensitizedmanner; disaster recovery databackup
Internet of Things (IoT)Internet of Things (IoT)Arti?cial Intelligence (AI)Arti?cial Intelligence (AI)Cloud ComputingCloud Computing
Four Major Application PlatformsFour Major Application PlatformsRegulatory PlatformRegulatory PlatformProvides regulators with a set of 24/7, seamless regulatorytools
System Implementation ResultsSystem Implementation ResultsThrough the exploration and practice of digital intelligence, Lions King Group further enhances the precisionand intelligent management of collection and transportation, provides better customized services to customers,and injects more "technological content".
Collection and Transportation PlatformCollection and Transportation PlatformProvides drivers with intelligent collection and transportationassistance tools
Central Management PlatformCentral Management PlatformAI and cloud computing empower streamlined and intelligentcollection and transportation workMerchant PlatformMerchant PlatformOffers merchants convenient query service tools
Monitor the complaint ratedescended90%90%
Recovery efficiency100%100%
Online signing efficiencyIncreased by2-3 times2-3 times
Receiving and transporting personnel
Decreased20%20%
Vehicle energy consumptionDecreased15%15%
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability ReportOur FocusOur Focus
2023 "China’s Top 50 ESG Innovative2023 "China’s Top 50 ESG InnovativeEnterprise" Award by ForbesEnterprise" Award by Forbes
major internal control deficiencies in financialreporting and non-financial reporting
major safety accidents and environmentalpollution incidents
0202
GovernanceGovernance
Sustainability Governance SystemSustainability Governance SystemCompliance Management and ESG Compliance Management and ESGRisk ManagementRisk ManagementStrategic Sustainability GoalsStrategic Sustainability GoalsCommunication with Our StakeholdersCommunication with Our StakeholdersMateriality AssessmentMateriality Assessment
Strengthening Sustainability Governance Strengthening Sustainability Governanceand Promoting High-quality Developmentand Promoting High-quality DevelopmentLions King Group continuously improves its corporate governance structure, establishes a sound internal controlsystem, strengthens management norms, strictly adheres to business ethics, enhances risk management. Iteffectively promotes standardized operations, continuously improve the Group's governance level, and ensuresustainable, stable, healthy, and high-quality development.Sustainability Governance SystemSustainability Governance System
The Group strictly follows laws and regulations, as well as the "Articles of Association", to establish acomprehensive corporate governance structure, including the shareholders' meeting, Board of Directors, andboard of supervisors. It has formulated various procedural rules, clarifying the responsibilities and operatingprocedures of the shareholders' meeting, Board of Directors, board of supervisors, and general manager,thereby standardizing the corporate governance structure. In accordance with revisions to the "Company Law"and the "Shenzhen Stock Exchange GEM Listing Rules", the Group timely revises its systems to continuallyimprove its internal control management mechanism, promoting steady and continuous development.The Group has established functional departments compatible with its management framework and operationalrequirements, clearly defining the main responsibilities of each department. The Group strengthens themanagement, control, and coordination of each business unit and subsidiaries across various sectors such ashuman resources, finance, legal affairs, market, and procurement. This fully mobilizes the enthusiasm of Groupmembers, enhances their operational autonomy, and strengthens the strategic management and professionalcontrol capabilities of the headquarters, ensuring orderly and healthy business operations.
The Board of Directors is responsible for the daily operation and management of the Group, while theshareholders' meeting and the Board of Supervisors supervise the Board's daily operations and majordecisions. Since the establishment of relevant corporate governance frameworks, the Group's threegovernance bodies have operated legally and effectively. They fulfill their duties and provide institutionalfoundation for the Group's efficient, standardized operations and sound development.General Meeting of ShareholdersGeneral Meeting of Shareholders
The Group strictly follows laws and regulations to standardize the convening, holding, and voting proceduresof the shareholders' meeting, ensuring equitable treatment of all shareholders. This approach guaranteesthat shareholders can fully exercise their rights and genuinely protect the interests of minority shareholders.The Group hires lawyers to attend the shareholders' meeting and provide legal opinions on the conveningand voting procedures, fully respecting and protecting the legal rights of all shareholders. During thereporting period, the Group held 6 general meetings of shareholders.Board of DirectorsBoard of DirectorsDuring the reporting period, the Board of Directors comprised seven directors, including three independentones. The size, composition, and qualifications of the Board comply with the laws, regulations, and the"Articles of Association". All appointments and removals strictly follow the nomination committee, Boardof Directors, and shareholders' meeting approval procedures, without any conflict with relevant laws,regulations, or the "Articles of Association".The procedures for convening and holding board meetings comply with the requirements of the "CompanyLaw", "Articles of Association", and "Rules of Procedure for the Board of Directors". The records of boardmeeting are true, accurate, complete, safely stored, and meeting resolutions are disclosed promptly.During the reporting period, the Group held 9 board meetings. The Board has 4 specialized committeesincluding Strategy and Development Committee, Remuneration Committee, Nomination Committee,and Audit Committee. During the reporting period, these committees held a total of 10 meetings. Thespecialized committees fully utilized the professional advantages of each director, playing a significant rolein formulation and implementation of internal audit and control systems, strategic planning, performanceevaluation, independent operation, and more.
IndependenceIndependence
During the reporting period, the Group had three independent directors, accounting for 42.9% of the boardmembers. Since their appointment, the independent directors have exercised their rights and fulfilled theirobligations in strict accordance with the "Articles of Association", "Rules of Procedure for the Board ofDirectors", and "Rules of Procedure for Independent Directors". They have provided independent opinions onrelevant matters, actively contributing to the improvement and standardization of the Group's governancestructure.Board DiversityBoard DiversityThe Group actively practices a board diversity policy, embraces international ESG governance concepts,and elevates the diversity of both the board and the board of supervisors. It comprehensively considers thecontributions and perspectives brought by the board's qualifications, skills, experience, independence, andgender diversity.
Corporate Governance Structure Corporate Governance Structure
General Meeting of General Meeting ofShareholdersShareholders
Board of DirectorsBoard of Directors
Board of SupervisorsBoard of Supervisors
ChairmanChairman
Strategy and Development Strategy and Development
CommitteeCommitteeRemuneration CommitteeRemuneration Committee
Nomination CommitteeNomination Committee
Audit CommitteeAudit Committee
Service Departments at the Service Departments at the
HeadquartersHeadquartersExisting BusinessExisting BusinessNew BusinessNew Business
Secretary General's O?ceSecretary General's O?ce
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability ReportGovernanceGovernance
Compensation of Directors, Supervisors, and Senior Management Compensation of Directors, Supervisors, and Senior Management
Board of SupervisorsBoard of Supervisors
The Group's supervisory board comprises three supervisors, including one chairperson and one employeerepresentative supervisor. The supervisory board performs its supervisory duties in accordance with the"Company Law", "Securities Law", "Articles of Association", and other legal regulations, actively protectingthe interests of all shareholders and the Group. During the reporting period, the Group held 5 Board ofSupervisors meetings.Remuneration of Directors, Supervisors, and Senior ManagementRemuneration of Directors, Supervisors, and Senior ManagementThe remuneration of directors, supervisors, and senior management is composed of salaries, allowances,and bonuses. The Remuneration Committee under the Board of Directors is responsible for formulatingperformance evaluation standards, procedures, systems, and policies. The remuneration schemes fordirectors, supervisors, and senior management are reviewed in accordance with the "Articles of Association"and the "Remuneration Management System for Directors, Supervisors, and Senior Management".
NameNameGenderGenderAgeAgePositionPositionDegreeDegreeJianxiang ChenM53Chairman, General Manager
Doctor, SeniorEngineerYouqiang YangM52
Chairman, Deputy General
Manager
Doctor, SeniorEngineerCunquan ZhouM52
Chairman, Deputy General
Manager
BachelorYun WangF35DirectorAssociateXiaoying FengF44Independent DirectorBachelor
Xing Ji M50Independent DirectorPost-doctorTianyu ZhangM49Independent DirectorDoctor
Composition of Composition ofthe Board of Directorsthe Board of Directors
The board includes two female directors, accounting for 28.6%, with one female director and one femaleindependent director. The current board members have extensive experience in various fields such asenvironmental engineering, chemistry, finance, accounting, and management. The professional structure ofthe board is balanced. The directors are capable of meeting the professional demands of their roles.
NameNameGenderGenderAgeAgePositionPosition
Employment EmploymentStatusStatus
Total Pre-tax Total Pre-taxCompensation CompensationReceived from Received fromthe Group (000 the Group (000CNY)CNY)
Whether WhetherCompensation CompensationWas Received Was Receivedfrom Related from RelatedParties of the Parties of theGroupGroupJIanxiang ChenM53
Chairman, GeneralManager
Incumbent1,545.1NYouqiang Yang M52ChairmanIncumbent864.3NCunquan Zhou M52
Deputy GeneralManager
Incumbent716.4NYun Wang F35DirectorIncumbent86.4NXiaoying Feng F44Independent DirectorIncumbent86.4NXing JiM50Independent DirectorIncumbent86.4NTianyu Zhang M49Independent DirectorIncumbent86.4NXiaoyan Yuan F49
Chairman of theSupervisory Board
Incumbent66.4NLi LiM42
Chairman of theSupervisory Board
Incumbent66.4NKandong Tang M39
EmployeeRepresentativeSupervisor
Incumbent311.3NGuisong Chen M44
Chief FinancialOfficer
Incumbent945.8NXiaofei YangM41
Secretary of theBoard
Resignated1,156.5NWujun Yan M37
Secretary of theBoard
Incumbent419.7NTotalTotal----6,437.56,437.5
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability ReportGovernanceGovernance
ESG Governance StructureESG Governance StructureLions King Group continuously improves its modern corporate governance system, establishing a three-level ESG governance structure from the Board of Directors to the management and execution levels. TheStrategy and Development Committee under the Board of Directors is responsible for coordinating andformulating ESG work directions. A dedicated working group on sustainability coordinates and supervisesthe ESG work of the Group and its subsidiaries. Each business and functional department ensures theimplementation and feedback. Through a professional ESG management system and transparent ESGgovernance structure, the Group fully implements and promotes ESG-related strategies, supporting theGroup's steady and sustainable development. Sustainability (ESG) Governance System Sustainability (ESG) Governance System
Top Leadership - Set the StrategyTop Leadership - Set the Strategy
As the highest decision-making body for the Group's sustainable development, the Board of Directorsis responsible for the strategic formulation and oversight of ESG and sustainability issues. The Group'sstrategic policies must be approved by the Board of Directors.Management - Advance and Guide Daily WorkManagement - Advance and Guide Daily Work
The Strategy and Development Committee is responsible for coordinating and implementing the Group'sESG and sustainability-related activities, thus it ensures effective communication and advancement ofstrategic directions.
Execution - Implement Work EffectivenessExecution - Implement Work Effectiveness
Each business and functional department of the Group should perform their respective tasks accordingto the corresponding management indicators and mechanisms, ensuring the implementation of ESG andsustainable development-related activities. They are also responsible for carrying out specific work plans.Information Disclosure and TransparencyInformation Disclosure and TransparencyThe Group has established the "Information Disclosure Management System" and the "Insider InformationManagement System" to clearly define the scope and content of disclosed information, the proceduresfor preparing, reviewing, and disclosing regular reports and interim announcements. The internal reportingsystem specifies the procedures for reporting, transmitting, reviewing, and disclosing major internal events,as well as confidentiality and penalty measures.During the reporting period, The Group strictly followed the "Company Law", "Administrative Measures forInformation Disclosure of Listed Companies", and other laws, regulations, the "Articles of Association", andThe Group's "Information Disclosure System" to disclose information truthfully, accurately, completely, timely,and fairly. The Group has designated "China Securities Journal", "Shanghai Securities News", "SecuritiesTimes", "Securities Daily", and "Economic Information Daily" as its official print media for informationdisclosure, and the Giant Information Network (www.cninfo.com.cn) as its official online informationdisclosure platform, ensuring that all shareholders have equal access to company information. During thereporting period, The Group was not penalized by regulatory authorities for improper external informationdisclosure.Compliance Management and ESG Risk ManagementCompliance Management and ESG Risk Management
The Group integrates risk management into its global strategy and operational management system,formulates the "Risk Management System", and establishes a risk response mechanism. Based on riskassessment, it develops clear strategies for risk mitigation to ensure stable and long-term development.The Group has an effective risk assessment process and has established departments and personnelsuch as the Strategy and Development Committee, the Audit Committee, the Board Office, and the AuditSupervision Office to identify and respond to significant risks, including environmental risks, safety risks,operational risks, and business conduct risks.The Group determines the main subsidiaries, businesses, and matters, as well as high-risk areas to beincluded in the evaluation scope based on risk-oriented principles. The main units included in the evaluationscope are the parent company and all subsidiaries within the consolidated financial statements. The totalassets of the units included in the evaluation scope account for 100% of The Group's consolidated financialstatement assets, and their combined revenue accounts for 100% of The Group's consolidated financialstatement revenue. According to the internal controls and identification of significant deficiencies, therewere no major internal control deficiencies in financial reporting and non-financial reporting during thereporting period.
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability ReportGovernanceGovernance
Operation RisksOperation Risks
Increase investment in technology research and development,maintain the advanced nature of technology and sustainable andstable operationThrough refined management and continuous technicalimprovement, we can obtain more resource-based products,reduce the financial pressure of the local government, and obtainthe priority right to the project renewalsActively participate in the EU's anti-circumvention and anti-dumping investigation of Chinese biodieselIncrease investment in R&D, take the lead in using biologicalenzyme technology for biodiesel production, aiming to improveyield, reduce production costs, improve product qualityMaintain the robust business strategy, timely adjust theprocurement strategy, and strictly control the procurement risksand costsImprove the construction of raw material procurement andmarketing system, and expand overseas marketsCooperate with Sinopec China Marine Fuel Supply Co., LTD.,PetroChina Fuel Oil Company, and actively declare pilotapplication projects to the National Energy Administration,tapping into the Marine fuel market, and expand sales channelsAdjust the strategic layout of bioenergy industry, pursue productupgrading, and plan new or potential merger and acquisitionsof bio-jet fuel projects in Guangdong, Shandong, Tianjin, Hebei,Southeast Asia and other locationsKeep abreast of the development status and trends ofmainstream technologies in the industryEncourage technological innovation, and attach great importanceto the R&D investment and the trial and promotion of the newtechnology
Safety RisksSafety Risks
Unexpected safety Unexpected safetyaccidents or inadequate accidents or inadequate
safety management safety management
in the operation and in the operation and
production processproduction process
The Group has obtained ISO45001 management systemcertification on occupational health and safetyImprove internal control systems and processes related to safeproduction, implement responsibility systems, strengthen riskprevention, and enhance supervision and rectificationEmphasize the cultivation of safe production awareness so as toprevent and control risks from the source
Environmental RisksEnvironmental Risks
Environmental Environmentalcompliance issuescompliance issues
The Group has passed the ISO14001:2015 environmentalmanagement system certification, and integrated the greendevelopment concept into the daily work of environmentalmanagementAll projects affiliated to the Group have completed thedevelopment of self-monitoring environmental plans, which havebeen submitted to local environmental protection departmentsfor record-keepingThe Group regularly conducts environmental self-monitoringand publicly discloses the results on platforms designated byprovincial and municipal ecological environment authorities
Risk PerformanceRisk PerformanceRisk Mitigation StrategyRisk Mitigation Strategy
Risk PerformanceRisk Performance
Risk Mitigation StrategyRisk Mitigation Strategy
Risk PerformanceRisk PerformanceRisk Mitigation StrategyRisk Mitigation Strategy
Technology upgrade Technology upgradeand renewaland renewal
Bioenergy business Bioenergy business
performance performance
uctuateductuated
The franchise cannot The franchise cannot
be renewed after be renewed after
expirationexpiration
Operation RisksOperation RisksRisk PerformanceRisk Performance
Risk Mitigation StrategyRisk Mitigation Strategy
New business New businessdevelopmentdevelopment
In-depth cooperation with scientific research institutions suchas Shenzhen Advanced Institute of the Chinese Academyof Sciences. By bringing in high-level R&D teams, it steadilypromotes the research and development of various projects inthe field of intelligent synthetic biology
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Business Conduct RisksBusiness Conduct Risks
Project quality, Project quality,schedule and schedule andfunding securityfunding security
Formulate corresponding regulations to standardize theresponsibilities and functions of designers, constructionpersonnel, and project managers. Strengthen pre-tender costcontrol, clarify the duties and authority of relevant departmentsand positions, and enhance monitoring throughout the entireconstruction process
Lions King Group continuously deepens the construction of the compliance system, embedding internalcontrol risks into daily management. In accordance with the "Basic Standards for Corporate InternalControl", "Guidelines for the Application of Corporate Internal Control", and "Guidelines for the Evaluationof Corporate Internal Control", combined with the Group's internal control system and evaluation methods.The Group has formulated a series of comprehensive and effective internal management systems based onthe principles of comprehensiveness, materiality, and balance. The effectiveness of internal controls is alsoevaluated to provide standard guidelines for legal and compliant operations.
Risk PerformanceRisk PerformanceRisk Mitigation StrategyRisk Mitigation Strategy
Audit and Internal ControlAudit and Internal ControlThe Audit Committee has an Audit Supervision Office, which is authorized to comprehensively monitor andevaluate various departments, positions, and business operations. The Audit Supervision Office directlyreports to the Board of Directors or the Audit Committee under it, maintaining independence, and has anestablished correction system to address identified issues promptly.The Audit Supervision Office conducts regular audits and special audits to ensure that all business cyclesoperate strictly in accordance with internal control systems. Based on the Group's criteria for identifyingmajor internal control deficiencies, there were no major internal control deficiencies in financial reportingand non-financial reporting during the reporting period.The Group routinely organizes directors, supervisors, and senior management to participate in compliancetraining, continuously strengthening their internal control awareness and responsibility. Targeted compliancetraining for middle management and general employees enhances compliance awareness, ensuring theeffective implementation of internal control systems, improving standardized operations and promotinghealthy and sustainable company development.
Review internal controlsReview internal controls
Main Responsibilities Main Responsibilitiesof the Audit Committeeof the Audit Committee
Monitor the effective implementation of internal Monitor the effective implementation of internalcontrolscontrolsAssess the internal control self-evaluation processAssess the internal control self-evaluation processCoordinate communication between internal control Coordinate communication between internal controlaudits and external auditsaudits and external auditsSupervise and verify audit-related workSupervise and verify audit-related work
Obtained ISO28000 Supply Chain Security Management Systemcertification, systematically build a comprehensive suppl chain riskmanagement system to improve the overall stability of the supplychain and reduce systemic risksLarge projects will undergo a tendering process, involving pricecomparisons from at least three parties. A "Clean GovernanceAgreement" will be signed to avoid conflicts of interestFormulate procurement and supplier management regulations.The Group categorizes the raw materials that need to bepurchased, extensively collects and screens supplier information,and evaluates their financial strength, quality managementcapability, delivery capability, and supply price. This ensuresthat the suppliers of the purchased raw materials can meet andsupport the Group's operational needsThe Group strictly screens partners and suppliers, formulatessupplier management systems and a list of qualified suppliers,and implements dynamic management. The Group conductsrigorous selection and evaluation among potential suppliers withcorresponding qualifications, inspecting their quality controlprocedures and records. It assesses the suitability and reliabilityof the services and raw materials they provide, ultimatelydetermining the qualified backup suppliers
Loopholes in Loopholes inthe procurement the procurement
processprocess
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Strategic Sustainability GoalsStrategic Sustainability GoalsLions King Group actively responds to the United Nation’s SDGs, and systematically reviews the Group'sdevelopment in relation to the SDGs. It proactively undertakes corporate social responsibility whilepromoting business development.The overall goal of Lions King Group's sustainability strategy is to integrate the principle of sustainabilityinto the Group's development strategy and operational management, continuously strengthen ecologicalenvironmental protection, fulfill social responsibilities, improve corporate governance, enhance thesustainable development level of listed companies, and continuously improve governance, competitiveness,innovation, risk resistance, and return capabilities, promoting sustainable development of the Group andthe economy and society, and gradually strengthening positive impacts on the economy, society, andenvironment.
Anti-corruption and Fair CompetitionAnti-corruption and Fair CompetitionLions King Group strictly abides by laws, regulations, and company rules, participating in market competitionlegally and compliantly. The Group is committed to establishing mutually respectful, beneficial, and win-win relationships with business partners, prohibiting bribery, corruption, monopolistic practices, unfaircompetition, and improper procurement.To prevent undue benefits transfers, conflicts of interest, and to maintain independence, the Group hasformulated the "Related Party Transaction Management System", "External Guarantee Management System",and "External Investment Management System". The "Articles of Association", "Rules of Procedure forShareholders' Meetings", "Rules of Procedure for Board Meetings", "Rules of Procedure for SupervisoryBoard Meetings", and "Rules of Procedure for Independent Directors" stipulate specific procedures forinvestment, transactions, and fund exchanges, effectively preventing competition within the same industryand the benefits transfer, thus protecting the interests of the Group and other shareholders.Environmental Compliance ManagementEnvironmental Compliance ManagementLions King Group is dedicated to the mission of "committing to resource regeneration, creating a beautifulenvironment, and treating Mother Nature with care". The Group places a high priority on environmentalissues in its production and operations, formulating environmental-related systems, upholding highstandards, combining prevention and control, improving resource utilization efficiency, enhancing ecologicalenvironment services, and promoting green development to contribute to ecological civilization construction.In accordance with relevant laws and regulations and ISO14001 requirements, the Group has establishedcomprehensive environmental management system documents, such as the "Environmental ProtectionFacility Management System", "Three Wastes and Noise Pollution Prevention and Control ManagementSystem", "Pollution Source Online Monitoring System Management System", "Environmental MonitoringManagement System", and "Environmental Information Management System", ensuring effectiveidentification and control of environmental risks.During the reporting period, all company projects completed the preparation of emergency response plansfor sudden environmental incidents as required by the Ministry of Ecology and Environment. All projectspassed expert group reviews and completed revisions and filings on schedule. Zhanjiang Lions KingEnvironmental Energy Co., Ltd., Lions King Environmental Energy (Maoming) Co., Ltd., and Shenzhen LionsKing Biomass Energy Co., Ltd. received the "Blue Label" evaluation for environmental integrity enterprisesin the annual environmental credit evaluation. Lions King Group and its subsidiaries faced no administrativepenalties for environmental issues, and no major environmental accidents occurred.
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Voluntary GHG emission reductions
R&D investment ratioNumber and proportion of R&D personnelNumber of inventions and patents grantedISO 14001 certication coverageNumber of environmental incidents above general Class BNumber of environmental events at general C-classNumber of environmental events at general D-class (R)Safety and environmental management personnel on duty rateSafety standardization levelNumber of safety accidents above general B-class (death accidents)Number of safety accidents at general C-class (serious injury accidents)Number of safety accidents at general D-class (minor injury accidents) (R)
Organic solid waste treatment rate
IndexIndex
Coverage of business ethics trainingDiversity and inclusion levelsStrategyStrategyConsolidate Corporate Consolidate CorporateGovernanceGovernance
SDGsSDGsBased on its business characteristics and stakeholders' concerns, the Group has identified its contributions to relevant SDGs, as shown in the table below.
Compliance and Risk Compliance and RiskManagementManagementResponse to Climate Response to ClimateChangeChange
Promote Technological Promote TechnologicalInnovationInnovationEnvironmental EnvironmentalCompliance ComplianceManagementManagementSafeguard Life and Safeguard Life andHealthHealth
Improve Resource Improve ResourceRegenerationRegeneration
Five-year Goals of the GroupFive-year Goals of the GroupProportion of female employees: 20%Directors, supervisors, senior managers: 100%Employee: 100%Supplier: 80%Millions of tons of carbon reduction contribution globally each year100%Weight of R&D investment in total revenue > 4%Proportion of R&D personnel in total staff > 8%Number of authorized patents: 300; Number of invention patents: 5Full coverage of ISO system on key projectsB-class: 0C-class: 0R≤5≥90%DuPont Safety Standardization score of key projects - 2.5 points and above, Level 3Class B:0Class C:0R≤5
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Communication with Our StakeholdersCommunication with Our StakeholdersThe trust and support of stakeholders are crucial for Lions King Group to become a responsible enterprise.The Group fully respects and protects stakeholders' legitimate rights and interests, balances the interests ofshareholders, investors, employees, society, and other parties.Based on its business characteristics and operational status, and drawing on industry experience andpractices, Lions King Group has identified 7 key stakeholders that include corporate shareholders andpotential investors, government and regulators, employees, customers, suppliers, research Institutes andother partners, and community.The Group has established a regular communication mechanism with stakeholders to comprehensively anddeeply understand their expectations and suggestions from the perspectives of sustainable developmentand stakeholder impact.Stakeholder GroupStakeholder GroupMain ConcernsMain Concerns
Main Channels for Main Channels forCommunicationCommunication
Corporate Shareholders and
Potential Investors
Compliance operation and risk managementSustainability management systemNew Quality Productive ForcesInnovation-driven business
Annual general meetingBoard of Directors and General Meeting
of ShareholdersEnterprise announcementsFinancial reports
Government andRegulators
Compliance operation and risk management
Business ethicsSustainability management systemNew Quality Productive ForcesResponse to climate changeEnergy management and conservation
Enterprise announcementsReporting lesOffer advice and suggestionsStrategy and Development Committee
Audit Committee
Employees
Occupational health and safetyEmployee development and trainingDiversity, inclusion and equalityInnovation-driven business
Management meetings and staff
meetingsInternal online communication platform
Staff trainingEmployee activityNomination CommitteeRemuneration CommitteeCustomers
Product and customer service qualityInnovation-driven businessPollutant prevention and ecosystem protectionResource utilization and circular economy
Health and welfare
Ofcial website
Social mediaCustomer visitCustomer service hotlineSuppliers
Supplier managementBusiness ethicsInnovation-driven businessProduct and customer service quality
Supplier visitSupplier conferenceSupplier trainingIndustry exchange
Community
Rural revitalizationSocial contributionHealth and welfarePollutant prevention and ecosystem protection
Community interaction and public
welfare activitiesVolunteer serviceEnvironmental protection educationResearch Institutes and other
partners
New Quality Productive ForcesInnovation-driven business
Technical cooperation and exchange
Scholarships and talent programsMateriality AssessmentMateriality Assessment
Lions King Group deeply understands the signicance of environmental, social, governance (ESG) issues, and economiceffects on the Group and stakeholders, and hence attaches great importance to it. The Group actively identies ESGmaterial issues related to its business. It’s our Strategy and Development Committee’s role to evaluate the annual list ofmaterial issues and submit them to the Board for nal approval.
We strictly followed the principles of double-materiality from GRI standards relating to material issues. Based on theGroup's business characteristics, Lions King Group has identified top 17 material issues. Furthermore, the Grouphas prioritized them according to stakeholders’ feedback and impact assessment. Lions King Group highlights themanagement progress of material issues in the annual sustainability report, and communicates with internal and externalstakeholders through other specic methods and channels, to constantly improve sustainability management.During the reporting period, Lions King Group has identied high-impact material issues such as "New Quality ProductiveForces", "resource utilization and circular economy", "compliance operation and risk management", "innovation-drivenbusiness", "energy management and conservation", and "pollutant prevention and ecosystem protection".Materiality MatrixMateriality Matrix
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0303
EnvironmentalEnvironmental
Response to Climate ChangeResponse to Climate ChangeTurning Waste into TreasureTurning Waste into TreasurePollutant Prevention and Ecological Pollutant Prevention and EcologicalProtectionProtection
Totaling approximately
2.0032.003
million tons ofcarbon reduction
excessive emissions from subsidiaries
Climate RisksClimate Risks
Physical risks arise from climate change impacts on Lions King Group's operations, including acute physicalrisks from sudden climate events e.g. typhoons, heavy rains and chronic physical risks from changes in climatepatterns e.g. rising average temperatures. During the reporting period, the Group screened for acute andchronic physical risks and identified key physical risks affecting the Group.Transition risks are associated with the transition to a low-carbon economy and may arise from changes inpolicies, regulations, technology, and market developments. During the reporting period, the Group analyzedmarket conditions, industry characteristics, and its business model, focusing on policy, regulatory, and technicalrisks.Climate OpportunitiesClimate Opportunities
Global climate change challenges also present new development opportunities for the Group. We activelyrespond to national climate change initiatives, strengthening internal climate risk management, planning low-carbon development paths, and developing new products and businesses to enhance global climate adaptability.In January 2024, the Group assisted Sinopec Fuel Oil in completing the first B5 biodiesel refueling demonstrationin the domestic inland shipping sector. The Group's biodiesel products, meeting EU certification standards, aresold to Europe, the United States, Japan, and Southeast Asia, contributing millions of tons of carbon reductionannually and supporting green initiatives.Compared to traditional aviation kerosene, SAF significantly reduces emissions of particulates, nitrogen oxides,and sulfur compounds. In October 2023, the Ministry of Finance and the Civil Aviation Administration jointlyissued the "Guidelines for the Development of the Green Aviation Manufacturing Industry (2023-2035)",providing guidance and support for the green transformation of the aviation manufacturing industry andencouraging the application of SAF in domestically produced civil aircraft and engines.Lions King Group responds to the national green aviation development initiative by seizing opportunities in SAFdevelopment and promoting the establishment of high-standard SAF production lines, advancing the green andlow-carbon transformation of the aviation manufacturing industry.In September 2023, the Ministry of Ecology and Environment reviewed and approved the "ManagementMeasures for GHG Voluntary Emission Reduction Trading (Pilot Version)", aimed at promoting GHG emissionreduction through market mechanisms as a key measure to achieve carbon peaking and carbon neutrality goals.China Certified Emission Reduction ("CCER") trading market officially launched in January 2024, accelerating theconstruction of a national carbon market.Lions King Group actively participates in establishing a new carbon market order, promoting the implementationof green low-carbon energy carbon reduction methodologies, and leading and regulating the healthydevelopment of the industry. The Group is fully advancing carbon accounting at the project level and hasinitiated product carbon footprint work, laying the foundation for future metrics and targets.As of the end of the reporting period, the Guangzhou, Zhongshan, Gaoyao, and Wuchuan Biomass ResourceRegeneration Center projects have completed GHG voluntary emission reduction measurements. TheGuangzhou Project has been registered under the Verified Carbon Standard ("VCS"), with calculations basedon the Clean Development Mechanism ("CDM") methodology ACM-022, and verified data from April 1, 2020,
Metrics and Metrics andTargetsTargets
Risk RiskManagementManagement
StrategyStrategyGovernanceGovernance
The Group develops policies to address climate-related risks and The Group develops policies to address climate-related risks andopportunitiesopportunitiesThe Group incorporates climate-related risks and opportunities in The Group incorporates climate-related risks and opportunities inthe formulation of its business, development planning and related the formulation of its business, development planning and relatedstrategies to address the risks and opportunities arising from strategies to address the risks and opportunities arising fromclimate changeclimate changeThe Group builds a risk management framework and process to The Group builds a risk management framework and process toidentify, assess and manage the risks associated with climate identify, assess and manage the risks associated with climatechangechangeThe Group sets targets and follows up the progress of climate-risk The Group sets targets and follows up the progress of climate-riskmanagementmanagement
Responding to the "Dual Carbon" Strategy Responding to the "Dual Carbon" Strategyand Upholding Green Technologyand Upholding Green Technology
The global climate change situation is becoming increasingly severe, with long-term and complex impacts andrisks. Sustainable development is crucial for the future of humanity, and actively responding to climate changehas become a global consensus.During the reporting period, the Central government and the State Council issued the "Opinions onComprehensively Promoting the Building of a Beautiful China", with an establishment goal by 2035. Thisincludes integrating ecological civilization construction and green and low-carbon development into national keytasks, encouraging and supporting the development of green industries such as carbon reduction, ecologicalrestoration, waste recycling, and circular economy, while pursuing high-quality development.Response to Climate ChangeResponse to Climate Change
Climate Governance FrameworkClimate Governance Framework
Lions King Group actively responds to national calls, treating climate change response as a crucial sustainabledevelopment issue. The Group continuously improves its climate change response efforts, identifying risksrelated to its business operations, which may negatively impact assets, employees, and the supply chain, andconstitute potential financial risks. At the same time, the Group recognizes the opportunities brought by climatechange, driving sustainable development through climate change response initiatives.
The Group organizes and presents the climate change governance system from four modules, i.e., governance,strategy, risk management, and metrics and targets, effectively addressing the challenges posed by climatechange.Climate Risk and Opportunity AnalysisClimate Risk and Opportunity AnalysisTo further understand the risks and opportunities brought by climate change, Lions King Group activelyconducts climate risk and opportunity assessments. Climate risks are categorized into physical risks andtransition risks. The Group identifies the likelihood and potential impact of these risks and formulatescorresponding response strategies to inform future development decisions.
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability ReportEnvironmentalEnvironmental
to March 31, 2022, cumulating 332,556 tons of CO2 equivalent voluntary emission reductions. The other threeprojects, adopting the CCER methodology CM-072, are expected to achieve a cumulative voluntary emissionreduction of 5,376,366 tons of CO2 equivalent over 10 years starting from 2023.The Group is also actively developing CCER methodologies, having initiated the drafting and submission ofthe "Voluntary Emission Reduction Methodology for GHGs from Kitchen Waste" and the "Voluntary EmissionReduction Methodology for Biodiesel Used as Fuel". Another "Voluntary Emission Reduction Methodology forthe Harmless Disposal of Animal Carcasses" is also in progress.equivalent over 10 years starting from 2023.The Group is also actively developing CCER methodologies, having initiated the drafting and submission ofthe "Voluntary Emission Reduction Methodology for GHGs from Kitchen Waste" and the "Voluntary EmissionReduction Methodology for Biodiesel Used as Fuel". Another "Voluntary Emission Reduction Methodology forthe Harmless Disposal of Animal Carcasses" is also in progress.Turning Waste into TreasureTurning Waste into TreasureLions King Group is committed to its mission of "contributing to green technology and sustainable development",striving to become a resource-saving and environment-friendly enterprise, prioritizing efficient resourceutilization and circular economy. By introducing effective mechanisms, establishing scientific performanceevaluation systems, and increasing financial investment, the Group uses environmentally friendly, efficient, andcarbon-reducing biotechnology to promote the construction of "Zero-waste Cities".Deep Resource UtilizationDeep Resource UtilizationLions King Group has focused on biomass resource regeneration for over two decades. Our biomass resourceregeneration centers uniformly plan and construct facilities for processing various types of biomass waste, suchas food waste, kitchen waste, and waste oil. Using independently developed core technologies, the Group cansynergistically process multiple types of biomass waste, effectively addressing the pain points and difficulties ofgovernment clients, reducing investment and operating costs, and creating more green economic benefits forcustomers.Biogas produced Biogas producedthrough combined through combinedanaerobic digestion is anaerobic digestion isused to generate green used to generate greenelectricity, meeting the electricity, meeting thepower needs of the Eco-power needs of the Eco-Environmental Park.Environmental Park.
During the harmless During the harmlesstreatment of kitchen treatment of kitchenwaste, waste grease can waste, waste grease canbe separated and used be separated and usedas a raw material for as a raw material forbiodiesel processing.biodiesel processing.
Biogas generated Biogas generatedthrough anaerobic through anaerobicfermentation can serve fermentation can serveas an energy source as an energy sourceto meet the heating to meet the heatingneeds for the harmless needs for the harmlesstreatment of animal treatment of animalsolid waste and the solid waste and thepreparation of biodiesel.preparation of biodiesel.
developing new processes to remove moisture and sulfides from biogas to ensure the stability of resourceutilization equipment, improve biogas utilization efficiency, extend the service life of biogas generatorconsumables, and promote the use of clean energy.Pollutant Prevention and Ecological ProtectionPollutant Prevention and Ecological Protection
Lions King Group actively responds to the latest environmental protection policy requirements. The Groupconstantly strengthens the operation adjustments and equipment maintenance management of pollutantprevention facilities, enhances environmental protection technology transformation, improving equipmentoperational efficiency, and ensures that all pollutant emissions comply with national and local environmentalmanagement requirements.The Group's biomass resource regeneration business is not classified as heavy pollution. The main pollutantsemitted during the production process and their treatment methods are as follows.
Types of Project in OperationTypes of Project in OperationObjects Processed Objects Processed Major PollutantsMajor PollutantsUtilization and DisposalUtilization and Disposal
Organic Solid Waste Co-treatment Environmental Park
Catering waste, kitchenwaste, animal solid waste,and other organic solid
waste
Solid waste
Entrust a qualied third party to
handle itWastewater
Treated to Meet Discharge
StandardsExhaust gas
Treated to Meet Discharge
Standards
"Organic Solid Waste andHousehold Garbage" Co-treatment Environmental Park
Organic solid waste suchas catering waste, kitchenwaste, animal solid waste,and household garbage(the types of organic solidwaste vary depending on
the project)
Wastewater
Treated to Meet Standards forReuse or DischargeSmoke
Treatment of conforming
dischargeFly ashSolidied landllFurnace slag
Transported for Use as Building
MaterialsAnimal Solid Waste ProjectAnimal solid waste
Wastewater
Treated to Meet Standards forReuse or DischargeExhaust gas
Treated to Meet Discharge
Standards
Household GarbageIncineration Project
Household Waste
Wastewater
Treated to Meet Standards forReuse or DischargeSmoke
Treatment of conforming
dischargeFly ash/ slag
Solidication and Landll/Transportation for Use as Building
MaterialsEnergy ManagementEnergy Management
During the production of biodiesel, a large amount of steam and electricity is required. Lions King Group isstrengthening the research and application of biogas power generation resource utilization technology. They are
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability ReportEnvironmentalEnvironmental
SocialSocial
People-oriented Approach and Caring for People-oriented Approach and Caring forEmployeesEmployeesSupply Optimization and Quality ControlSupply Optimization and Quality ControlCo-creating Health and Common WelfareCo-creating Health and Common WelfarePublic Welfare and Social ContributionPublic Welfare and Social Contribution
Propotion of female staff
15.8%15.8%
Average training hours per employee
7.9 7.9
hours
0 0general Grade D (minor injury accidents)
0 0safety, fire, and occupational health violationsCharitable donations totaling
2.43 2.43
million CNY0404
Lions King Group adheres to principles of fairness, justice, and openness in employment, striving to enhanceworkplace inclusivity. The Group actively maintains a diverse and inclusive employment environment,promoting equality and zero discrimination. The Group strictly prohibits any form of discrimination andharassment during recruitment, promotion, training, and dismissal stages, including but not limited todiscrimination based on gender, race, age, religion, physical condition, and marital status. With the expansionof new business, the proportion of female employees increased in 2023 compared to 2022.Employee Growth PathEmployee Growth Path
Lions King Group emphasizes a people-oriented approach, treating talent strategy as a key focus forcorporate development and valuing talent introduction and cultivation. The Group has established "Lions KingUniversity", developing courses and content based on the actual needs of talent growth. High-frequencytraining and practical exercises are conducted both online and offline, following the "learn, practice, test,and compete" mechanism, to cultivate and replicate cadres and outstanding talents in batches, meeting theneeds of high-quality development of Lions King Group.During the reporting period, Lions King Group conducted two mid-to-high-level management skill trainingsessions, three "Lion Plan" new employee cultural training camps, and organized visiting learning journeys toHuawei and Alibaba.Strengthening Safety and Caring for Employee HealthStrengthening Safety and Caring for Employee HealthLions King Group prioritizes health and safety, and strictly adhere to national laws and regulations onemployee health and safety, such as the "Work Safety Law of the People's Republic of China" and othersafety production-related laws and regulations, fully promoting the development of safety and compliancewithin the Group and for its projects.The Group implements a safety culture project in production. With the principle of "safety shapes culture,culture ensures safety" in mind, we combine "rigid" management system and "flexible" cultural constructionto offer strong supports for safe production, safeguarding employees' health and safety.The Group has established a safety production management system and framework, defining goals andassessment methods, implementing a responsibility system to ensure proper management of occupationalhealth and safety. The Group is certified by ISO45001 occupational health and safety management system.During the reporting period, the Group achieved zero general D (minor injury) and above safety accidents,zero safety, fire, and occupational health violations.The Group's safty management follows the systematic, procedural, and standardized approaches,formulating multiple safety management systems to ensure the implementation of safe production andmanagement..
Fullling Corporate Social ResponsibilityFullling Corporate Social Responsibility
Lions King Group actively fulfills its social responsibilities and obligations in daily operations based on nationallaws and regulations, combined with industry characteristics. This approach is fully integrated into theGroup's strategy and daily operations, continuously enhancing the Group's social image and promoting socialresponsibility initiatives.People-oriented Approach and Caring for EmployeesPeople-oriented Approach and Caring for Employees
Lions King Group firmly believes that employees are the cornerstone of corporate development and talent isthe core driving force. The Group has established a systematic and robust employee management system,maintaining harmonious labor relations through legal and compliant management practices.Rights Protection and Employee WelfareRights Protection and Employee Welfare
To protect employees' legal rights and create a positive workplace environment, the Group has establishedhuman resources management and labor employment systems. It complies with national and local labor laws,regulations, and normative documents related to social security. All employees enjoy good welfare, includingsocial insurance, statutory holidays, paid annual leave, sick leave, marriage leave, bereavement leave, andmaternity leave according to national policies. The Group strictly prevents forced labor and other human rightsviolations, effectively safeguarding employees' legal rights.The Group always prioritizes the physical and mental health of employees, providing facilities like employeecafeterias and gyms to ensure their dietary and physical health. The Group also addresses employees' spiritualneeds by continuously organizing various corporate cultural activities through the labor union, enrichingemployees' leisure life, enhancing their sense of belonging, and promoting mutual progress between employeesand the Group.Diversity, Inclusion, and EqualityDiversity, Inclusion, and Equality
85.5%
Gender Ratio of Employees in 2023Gender Ratio of Employees in 2023
14.5%
Gender Ratio of Employees in 2022Gender Ratio of Employees in 2022
84.2%
15.8%
MaleFemale
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability ReportSocialSocial
Supply Optimization and Quality ControlSupply Optimization and Quality ControlThe Group adheres to the business philosophy of "honesty, integrity, cooperation, and mutual benefits",working with partners to enhance quality and promote sustainable supply chain.Lions King Group is certified with ISO28000 supply chain safety management system. The Group conductsqualification reviews for suppliers, assessing environmental performance, benchmark achievements,employee qualifications, and corporate certifications, aligning them with international benchmarks. Dailyprocurement and payment processes are handled by authorized business units, engineering departments,procurement departments, and finance departments, following the Group's procurement processes,payment processes, and operational guidelines, clarifying responsibilities and approval authority at eachstage to ensure comprehensive procurement management.Lions King Group has established a comprehensive online supply chain procurement system, utilizedadvanced information systems and technologies to achieve transparent, automated, and intelligent supplychain management.During the reporting period, the Group held a supplier conference to launch training for exemplary supplierson high-quality development, integrity education, and innovation. Excellent suppliers in 2023 were alsoawarded at the conference.Lions King Group is certified with ISO9001 quality management system, adhering to principles of qualityassurance and service optimization. The Group has established systematic project management systems toensure project service quality.The Group has established and improved independent and complete business system, information systemand management system. Through the Group's intelligent management platform and engineering projectmanagement system, we have been able to improve the enterprise information management ability, realizethe information construction, and continuously track and control the project progress, quality, cost,resources and risks.Co-creating Health and Common WelfareCo-creating Health and Common Welfare
HMOs are naturally occurring nutrients found only in human breast milk, representing the second-largestcarbohydrate component and the third-largest nutritional component after lactose. Adding HMOs to infantformula to precisely mimic breast milk and enhance nutritional value is becoming a promising industry trend.With more global regulatory agencies approving HMOs in infant formula and increasing consumer demandfor health and nutrition, the application of HMOs is expanding beyond infant formula to adult milk powder,functional beverages, and health products.
CategoryCategoryName of the PolicyName of the Policy
Basic Safety
Safety management manualSafety production responsibility system management systemSafety and environmental protection incentive assessment system
Change management systemAccident management systemSafety input management systemSafety training management systemConstruction project "three simultaneous" management system
Emergency management systemStakeholder management systemDual Prevention
Security risk hierarchical management systemHidden danger investigation and management systemFire SafetyFire safety management systemOccupational Health
Occupational health management system
Labor protection articles management systemChemicalsChemical management systemJobHazardous operation management systemTrafc SafetyTrafc safety management system
The Group enhances emergency response capabilities by organizing and conducting typical accidentemergency drills, formulating emergency plans, equipping with emergency supplies, and strengtheningemergency drills. During the reporting period, Lions King Group conducted 541 emergency drills with 6,935participants.In terms of hazardous operations, Lions King Group strengthens hazardous operations managementthrough four dimensions: optimizing hazardous operations management procedures, establishing tool andequipment inspection systems, enforcing strict process safety supervision, and establishing strict contractormanagement. This ensures that the hazardous work is conducted safely under controlled management.The Group enhances emergency response capabilities by organizing and conducting typical accidentemergency drills, formulating emergency plans, equipping with emergency supplies, and strengtheningemergency drills. During the reporting period, Lions King Group conducted 541 emergency drills with 6,935participants.
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability ReportSocialSocial
Currently, Lions King Group's Zhuhai production base, with an annual output of 260 tons of HMOs, isaccelerating the industrialization process. Upon completion and production, the project is expected to stablysupply hundreds of tons of high-purity HMO products to the market annually.In the future, Lions King Group will continue to leverage synthetic biology and AI technologies to drive HMOproduct development and production, diversifying HMO applications in infant foods and other markets,creating greater value for human health and wellbeing, and bringing more innovation and possibilities tothe industry. The Group will meet the high standards of health life demands and fulfill corporate socialresponsibilities.Meanwhile, the Group actively communicates and collaborates with well-known milk powder brands in themarket and plans to officially launch HMO products in 2025 after obtaining approval from the NationalHealth Commission, contributing to the high-quality development of China's health industry and people'slives.
Public Welfare and Social ContributionPublic Welfare and Social ContributionLions King Group consistently adheres to social feedback, actively fulfills corporate social responsibilitiesand promotes the spirit of "benevolence". During the reporting period, the Group made charitable donationstotaling 2.4 million CNY to various organizations, including the Longgang District Charity Association and theSeda County Education and Sports Bureau.Education is one of the most important aspects of human society. As an alumnus of Tsinghua University,Chairman Chen Jianxiang, along with alumni, actively engages in public welfare andchairtable activities,to mobilize social forces to focus on education in Tibetan areas. During the reporting period, Lions KingGroup became the first company to integrate public welfare and support for the cultural and educationaldevelopment of Tibetan areas into its public listing appreciation eventcontributing to the socioeconomicdevelopment of impoverished areas such as Seda through various means, including financial aid foreducation.In November 2023, Lions King Group was named "China’s Top 50 ESG Innovative Enterprise" by Forbes forour innovative performance in the ESG field.
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability ReportSocialSocial
Social: Fullling Corporate Social
Responsibility
People-oriented Approach and Caring
for Employees
2-7; 2-24; 2-27; 201-3; 401-2; 403-1; 403-2; 403-3; 403-4; 403-5; 403-6; 403-7; 404-1; 404-2; 405-1; 406-1;
409-1Supply Optimization and Quality Control
2-6; 2-23; 2-24; 2-27; 308-1; 308-2;
414-1; 414-2Co-creating Health and Common
Welfare
2-27; 416-1; 417-1Public Welfare and Social Contribution2-27; 203-1; 203-2
Omitted GRI IndexsOmitted GRI IndexsExplanationExplanation
2-4; 2-5First disclosure2-18; 2-21; 202-1; 202-2; 204-1; 206-1
Due to the condentiality of information, it is not publicly
disclosed2-19; 2-20; 201-1; 201-4; 207-1; 207-2; 207-3Please refer to the Group’s annual report
304-1; 304-2; 304-3; 304-4The topic is not highly relevant to our core business207-4; 407-1; 411-1; 415-1Not applicable
2-30
Not applicable. There are no formal collective bargainingagreements in place within the Group. The Group and theindividual employee sign a separate labour contract tostipulate the rights and obligations of both parties, and if thereis a change in the policy related to the vital interests of theemployee, it will also be communicated through the employee
representative assembly205-1; 205-3; 402-1; 403-8; 403-9; 403-10; 404-3;
405-2; 410-1; 413-1; 413-2
The information is currently incomplete or unavailable, andthese data are beyond the current scope of the Group's ESGdata management. As we continue to collect more statisticaldata in the future, the scope of our data collection will
gradually expand and be disclosed.205-2; 301-1; 301-2; 301-3; 302-1; 302-2; 302-3;302-4; 302-5; 305-1; 305-2; 305-3; 305-4; 305-5
The Group is currently engaged in the relevant tasks and will
release the data once it is accessible.
306-3; 306-4; 306-5
The Group's in-house project focuses on the treatment ofenvironmental pollutants, with the primary goal of carrying outnon-hazardous treatment and resource utilization of collectedwaste. The Group's operations include organic solid wastetreatment, domestic waste treatment, and environmentalengineering services, all of which are not classied as heavy
pollution businesses.
Report FrameworkReport FrameworkRelevant ChapterRelevant ChapterGRI Disclosure GRI Disclosure
About This ReportAbout This Report2-1; 2-2; 2-3; 2-6Message from the ChairmanMessage from the Chairman2-22
About Lions King Group
Group Overview2-1; 2-6Core Business416-1Future Plans2-6; 416-1Our Culture2-1Annual Highlights2-6Annual Honors2-27Our Focus: New Quality
Productive Forces
Strong Research Focus on High-tech
Industries
2-12; 2-27; 416-1; 417-1Future Orientation in Intelligent
Synthetic Biology
2-12; 2-27; 416-1; 417-1Embrace Digitalization with SmartInformation Systems
2-12; 2-27; 416-1; 417-1
Governance: StrengtheningCorporate SustainabilityGovernance and Promoting High-quality Development
Sustainability Governance System
2-9; 2-10; 2-11; 2-12; 2-13; 2-14 ;
2-27Compliance Management and ESG
Risk Management
2-12; 2-13; 2-14 ; 2-15; 2-23; 2-24;
2-25; 2-26; 2-27Strategic Sustainability Goals2-12; 2-13; 2-14 ; 2-16; 2-17; 2-22Communication with our Stakeholders2-6; 2-12; 2-14 ; 2-16; 2-29
Materiality Assessment
2-12; 2-14 ; 3-1; 3-2; 3-3; 2-12; 2-16;
2-17; 403-1Environmental: Responding to the"Dual Carbon" Call and Upholdingto Green Technology
Response to Climate Change2-12; 2-27; 201-2Turning Waste into Treasure2-27; 306-1; 306-2Pollutant Prevention and Ecological
Protection
2-27; 303-2; 305-7; 306-1; 306-2
AppendixAppendixAppendix IAppendix I: :
Index TableIndex Table
GRI Content IndexGRI Content IndexStatement of useStatement of useGRI 1 usedGRI 1 used
Shenzhen Lions King Environmental Group Company Limited has reported theinformation cited in this GRI content index for the period from January 1, 2023,to December 31, 2023 with reference to the GRI Standards.GRI 1: Foundation 2021
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability Report
No.No.Full NameFull NameAbbreviationAbbreviation
1Shenzhen Lions King Environmental Group Company LimitedLions King Group, the Group, we2Environmental, Social, GovernanceESG3Shenzhen Stock ExchangeSZSE4Growth Enterprise MarketGEM5CNYChinese Yuan6Ministry of Agriculture and Rural AffairsMOARA7Zhongke Langjian Biotechnology Co., Ltd.Zhongke Langjian8Zhuhai Langjian Biotechnology Co., Ltd.Zhuhai Langjian
National Intelligent Synthetic Biology Industry Innovation
Center
National Innovation Center10Guangzhou Biomass Resource Regeneration CenterGuangzhou Project
Shenzhen Longgang Biomass Resource Regeneration
Center
Shenzhen Project12Zhongshan Biomass Resource Regeneration CenterZhongshan Project13Beijing Tongzhou Biomass Resource Regeneration CenterBeijing Tongzhou Project14Maoming Biomass Resource Regeneration CenterMaoming Project15Articial IntelligenceAI16Human Milk OligosaccharidesHMO17Sustainable Aviation FuelSAF18Greenhouse GasGHG19China Certied Emission ReductionCCER20Veried Carbon StandardVCS21Clean Development MechanismCDM22Research and DevelopmentR&D
AbbreviationAbbreviation
Status of the Three MeetingsStatus of the Three Meetings
Meeting CategoryMeeting CategoryTimesTimesProposals and Reports Reviewed Proposals and Reports ReviewedGeneral Meeting of Shareholders6
Totally 110 proposals and reports weredeliberated, reviewed, examined, or heard,
including repeated items.Board of Director Meeting9Board of Supervisor Meeting5
IndicatorIndicator2023202320222022
Increase/Decrease Increase/DecreaseCompared to Last Compared to Last
YearYear
20212021
Operating Revenue (CNY)1,752,883,083.751,818,564,035.50-3.61%1,618,612,075.60
Net Prot Attributable toShareholders of the Listed
Company (CNY)
178,855,243.12242,534,934.94-26.26%228,073,488.13
Net Prot Attributable toShareholders of the ListedCompany Excluding Non-recurring Gains and Losses
(CNY)
167,205,327.63232,496,682.08-28.08%208,525,520.85Net Cash Flow from Operating
Activities (CNY)
113,040,076.83363,440,658.90-68.90%270,490,640.19Basic Earnings per Share(EPS) (CNY/EPS)
0.8197
1.3277-38.26%1.2485Diluted Earnings per Share(EPS) (CNY/EPS)
0.81971.3277-38.26%1.2485Weighted Average Return on
Equity (ROE)
6.49%14.06%-7.57%15.31%End of 2023End of 2023End of 2022End of 2022
Increase/Decrease Increase/DecreaseCompared to End Compared to Endof Last Yearof Last Year
End of 2021End of 2021Total Assets (CNY)5,956,418,676.154,459,330,126.0633.57%4,135,242,567.74Net Assets Attributable toShareholders of the ListedCompany (CNY)
3,400,817,059.401,845,801,072.9984.25%1,603,266,138.05
Appendix IIAppendix II: Sustainability : SustainabilityPerformancePerformance
Corporate Governance and Economic PerformanceCorporate Governance and Economic PerformanceEconomic PerformanceEconomic Performance
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability Report
Authentication CerticateAuthentication Certicate
Intellectual PropertyIntellectual Property
Key MetricsKey Metrics202320232022202220212021
Number of AuthorizedPatent Projects
168163147Number of Patent Projectsunder Application
Certi?cate TypeCerti?cate TypeIDIDE?ective PeriodE?ective Period
Certi?cate Authority Certi?cate Authority
（CA）（CA）ISO1400100222E34755R1M
2022.12.28 to2026.1.2
China Quality Mark Certication GroupISO900100222Q27688R0M
2022.12.28 to2025.12.27
China Quality Mark Certication GroupISO45001CQM22S24358R1M
2022 .12.28 to2026.1.2
China Quality Mark Certication GroupISO2800069123SCSMS00001R0M
2023.2.17 to2026.2.16
Guangdong Zhongpeng Certication
Co., Ltd.ISO/ IntegrityManagement SystemCertication
69123CMS00001R0M
2023.2.17 to2026.2.16
Guangdong Zhongpeng Certication
Co., Ltd.Intellectual PropertyManagement SystemCertication
181191P1949R0M
2022.4.18 to2025.4.17
Zhonggui (Beijing) Certication Co.,
Ltd.
IndicatorIndicatorUnitUnit20232023CODMetric ton50.70NH3-NMetric ton0.37NOxMetric ton643.22SO2Metric ton130.15PMMetric ton17.00Solid wasteMetric ton272,324.48General industrial solid waste generationMetric ton249,877.86Hazardous waste generatedMetric ton22,446.62
Environmental PerformanceEnvironmental Performance
Emissions and WasteEmissions and Waste
WasteWaste
IndicatorIndicatorUnitUnit20232023
sewage dischargeMetric ton187,936.5
IndicatorIndicatorUnitUnit202320232022202220212021Total Number of StaffTotal Number of StaffPerson1,598 1,527 1,431By GenderBy Gender
Female%15.8%14.5%13.9%Male%84.2%85.5%86.1%By DegreeBy Degree
Master or above%4.4%3.6%3.1%
Bachelor%24.6%22.0%19.8%Associate or below%71.0%74.4%77.1%Total Number of New Total Number of New
HiresHires
Person471 528 618By GenderBy Gender
Female%18.7%11.6%14.0%Male%81.3%88.4%86.0%By DegreeBy Degree
Master or above%6.4%3.4%2.7%Bachelor%30.8%19.7%21.1%Associate or below%62.8%76.9%76.2%Employee TrainingEmployee Training
IndicatorIndicatorUnitUnit202320232022202220212021Employee Training Employee Training
CoverageCoverage
%100%100%100%By GenderBy GenderFemale%15.8%14.5%13.9%Male%84.2%85.5%86.1%Average Duration Average Durationof Training for of Training forEmployeesEmployees
Hour7.90 7.03 6.22By GenderBy Gender
FemaleHour7.90 7.03 6.22MaleHour7.90 7.03 6.22
Social PerformanceSocial Performance
EmploymentEmployment
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Health and SafetyHealth and Safety
Suppliers ManagementSuppliers Management
IndicatorIndicatorUnitUnit202320232022202220212021
Number of majorsafety accidentsand environmentalpollution incidents
Number of accidentsand incidents
0 0 0Number of emergencydrill activities
Times541
Health and safetytraining coverage
%100 100 100
IndicatorIndicatorUnitUnit202320232022202220212021Total number ofsuppliers
Number of suppliers270 361 210By DistrictBy DistrictChinese mainlandNumber of suppliers240 321 150
OverseasNumber of suppliers2 2 2
Environmental Protection Administrative LicensesEnvironmental Protection Administrative Licenses
Lions King Environmental Energy (Maoming) Co., Ltd.Emission Permit Number: 91440981MA52KTFA3N001VIssuance Date: September 9, 2022Validity Period: September 9, 2022 to September 8, 2027Shenzhen Lions King Biomass Energy Co., Ltd.Emission Permit Number: 914403000711003320001VInitial Issuance Date: August 31, 2020Initial Validity Period: August 31, 2020 to August 30, 2023During the reporting period, the certificate expired and was reapplied for.New Issuance Date: August 15, 2023New Validity Period: August 15, 2023 to August 14, 2028Shenzhen Lions King Biomass Energy Co., Ltd.Emission Permit Number: 914403000711003320001VIssuance Date: September 11, 2023Validity Period: September 11, 2023 to September 10, 2028
Appendix IIIAppendix III: Readers' Feedback: Readers' FeedbackDear reader:
Thank you for taking time to read Lions King Group's 2023 Sustainability Report. Toimprove our sustainable development program and this Report, Lions King Group would liketo hear your comments and suggestions.If you have any opinions and suggestions on the report, please use the contact informationprovided below.Contact Address: Lions King Technology Park, No. 2, Pingqiao Road, Gaoqiao Community,Pingdi Street, Longgang District, ShenzhenPhone: 0755-89890997Your evaluation: (Please put a check mark in the corresponding box)
1.What’s your role for the Group?
□Customer □Employee □Partner □Government □Media □Others (Please specify)
2.Do you think this report has highlighted the important sustainability information about the
Group?
□Very Good □Good □Average □Poor
3.Do you think the information and indicators contained in this report are clear, accurate
and complete?
□Very Good □Good □Average □Poor
4.Do you think the content layout and style design of this report make it easy for you to
read?
□Very Good □Good □Average □Poor
5.Which part of the report are you most interested in?
6.What other information do you think needs to be reflected in this report?
7.What suggestions do you have for Lions King Group in terms of its sustainability report?
Shenzhen Lions King Environmental Group Company Limited About Lions King Group Our Focus Governance Environmental Social 2023 Sustainability Report
Head Office Address: Lions King Technology Park, No. 2, Pingqiao Road,Gaoqiao Community, Pingdi Street, Longgang District, ShenzhenPhone: 0755-89891111Recruitment Phone: 0755-89891111-8936Fax Number: 0755-89891888Zip Code: 518117
Shenzhen Lions King Environmental Group Company Limited Shenzhen Lions King Environmental Group Company Limited