ContentsAbout This RepoMessage from the ChairmanAbout C&D Inc.
Appendix
Addressing Climate ChangePollution Prevention andEcosystem ProtectionResource Utilization andCircular Economy
Governance for SustainableDevelopmentPrevent Commercial Bribeand Unfair Competition
Data OveiewGRI Standards IndexISDS IndexSASB IndexIndicators Reference for ESG Reposof Listed Chinese Central State-OwnedEnterprisesIndependent Limited Assurance Repo
ENVIRONMENTAL
Rural Revitalization andPublic SeiceInnovation-Driven, Suppliers,and CustomersPeople
SOCAIL
GOVERNANCE
About This Repo
ExplanatoNote
RepoAvailabilityand Feedback
We prepare this repo in accordance with the "Global Repoing Initiative Standards"(GRI Standards), and "Sustainability Accounting Standards Board Standards" (SASBStandards). The repo also takes into account the disclosure requirements of the"Guidelines No. 1 for Application of Self-Regulation Rules for Companies Listed on theShanghai Stock Exchange- Standardized Operation", "Guidelines No. 14 of shanghaistock Exchange for self-Requlation of listed Companies-sustainability Repo (Trial)",IFRS Sustainability Disclosure Standards developed by the International SustainabilityStandards Board (ISSB), SASAC Research Center’s "Indicators Reference Systems forESG Repos of Listed Chinese Central State-Owned Enterprises", and the UnitedNations Sustainable Development Goals (SDGs).
RSM China CPA LLP independently guarantees the environmental, social and corporategovernance peormance key indicators in this repo.
The repoing period is between Janua 1, 2023, and December 31, 2023, and somepas of the repo may be beyond the aforementioned scope considering the continuityand comparability of disclosures. The ESG data disclosed in this repo includes allenterprises within the scope of the consolidated statement of Xiamen C&D Inc.
We released this repo in electronic format in both Simplied Chinese and English. In caseof any inconsistencies between the Chinese and English versions, the Chinese versionshall prevail. The electronic version of the repo is available on our ocial website, www.chinacnd.com, and the Shanghai Stock Exchange website (www.sse.com.cn). We arecommitted to improving our environmental, social and corporate governance peormance,and if you have any comments or suggestions on this repo, please get in touch with us atcompliance@chinacnd.com.
This is the 2023 Sustainability Repo ("this repo") released byXiamen C&D Inc. (referred to as "C&D Inc." or "We"). The purpose ofthis repo is to provide stakeholders with an oveiew of C&D Inc.'smanagement eos in environmental, social, and governance aspectsin 2023, as well as the initiatives and achievements towards advancingthe United Nations Sustainable Development Goals.
AbbreviationFull NameC&D Inc., or WeXiamen C&D Inc.C&D Real EstateC&D Real Estate Corp., Ltd., subsidia of C&D Inc.Lianfa GroupLianfa Group Co.,Ltd., subsidia of C&D Inc.C&D Propey
C&D Propey Management Group Co.,Ltd.(Stock Code: 2156.HK),subsidia of C&D Real Estate.C&D LogisticsC&D Logistics Group Co., Ltd., wholly-owned subsidia of C&D Inc.Paper & Pulp Group
One of the seven major specialized groups of C&D Inc., includingXiamen C&D Paper & Pulp Co., Ltd..Agricultural Products Group
One of the seven major specialized groups of C&D Inc., includingXiamen C&D Commodities Limited.C&D Automobile Group
One of the seven major specialized groups of C&D Inc., includingXiamen C&D Automobile Co., LtdC&D Newin
C&D Newin Paper & Pulp Corporation Limited (Stock Code: 0731.HK),subsidia of C&D Inc.Universal Pulp and PaperUniversal Pulp and Paper (Shandong) Co., Ltd., subsidia of C&D Inc.C&D Clean Energy
Nanjing C&D Clean Energy Co.,Ltd., wholly-owned subsidia of C&DInc.C&D ClenergyXiamen C&D Clenergy New Energy Co.,Ltd., subsidia of C&D Inc.C&D (Guangzhou)C&D (Guangzhou) Co., Ltd., wholly-owned subsidia of C&D Inc.Yijiayuan Propey
Yijiayuan (Xiamen) Propey Management Co., Ltd., subsidia of C&DReal Estate.MACALLINERed Star Macalline Group Corporation Ltd. (Stock Code: 601828.SH)Yongfeng Pulp and Paper
Sichuan Yongfeng Pulp and Paper Co., Ltd., shareholding company ofC&D Inc.IPCCIntergovernmental Panel on Climate ChangeIEAInternational Energy Agency
ReferenceGuidelines
ExternalAssurance
RepoingScope
0102
Xiamen C&D Inc. 2023 Sustainability Report
，
About This ReportMessage from the ChairmanAbout C&D Inc.AppendixEnvironmentalSocialGovernance
Message from the Chairman
0304
Chairman of Xiamen C&D Inc. Zheng Yongda
In the face of multiple challenges from the volatile global situation, complex market environment, and economicslowdown, C&D Inc. rmly presees the brand philosophy of "Together Go Beyond." We integrate sustainable creationof social value into business practices, pursue the maximization of comprehensive economic, social, and environmentalvalue, and honor commitment to our social responsibilities.As a globally positioned company, we are rooted in professionalism and committed to core business development.Our supply chain operations span multiple segments including steel and iron, pulp and paper, automobile, agriculturalproducts, consumer goods, minerals, and energy and chemicals. We strive to excel in each of these segments, leverageour expeise to drive industrial progress, and dedicate ourselves to becoming a leading international supply chainoperator. In real estate, we have set up a holistic real estate seice system, oering full-lifecycle real estate supposeices to governments, enterprises, and residents, with the aspiration of becoming China’s outstanding real estateoperator.In 2023, we actively responded to the national carbon peaking and net zero emissions strategy and global temperaturecontrol goals under the Paris Agreement, and consistently invested in research and innovation in digital technologyapplications. We profoundly incorporated digital solutions with traditional indust development, made digitalizationa driving force for achieving carbon net zero emissions, and enabled traditional industries to undergo greentransformation. We persistently explored the design and development of sustainable products such as green materialsand green buildings to promote the sustainable development of living environments with green concepts. Engagingin green circular economy businesses, we enhanced resource utilization eciency and contributed to the constructionof a national green, low-carbon, and circular economic system. We established our presence in the new energy sector,vigorously expanded upstream and downstream supply chain operations in the new energy indust, and oered seicesolutions for various segments of the new energy indust chain. We advocated for energy conseation and emissionreduction actions, urging stakeholders to take collective action to contribute to mitigating climate change.
In 2023, we positioned ourselves to see the real economy and social well-being, actively integrated into the nationaland local development agenda, and fostered the co-prosperity and symbiosis of individuals and society. We diligentlyimplemented indust suppo policies leveraging our industrial resources, tapped into the diverse value of rural areas,promoted rural industrial upgrading, and suppoed the comprehensive advancement of national rural revitalizationpolicies. Through the establishment of a globalized supply chain seice system, we merged into the new developmentparadigm of dual circulation at home and abroad, ensuring the supply chain security for the national agricultural productsand energy resources. Fuhermore, we fullled the mission and responsibilities of state-owned enterprises in culturalpreseation, caring for children, and social welfare, and facilitated the parallel development of the enterprise with urbangrowth. We endeavored to accomplish people's longing for a better life and to exploit new value for more people to live asuperior life.We always believe that talent drives the sustainable development of the company. The trust in our company’s cultureis the key to our employees' enthusiasm and sincerity for C&D Inc. We uphold cultural leadership, shape a culture of"determined progress and integrity," and concentrate on the growth of eve employee. We strive to create a fair, just,harmonious, and inclusive working environment, allowing talent to be an inexhaustible driving force for the company'ssustainable development.Currently, we nd ourselves amidst China's third wave of development. Confronted by the challenges of energy structuraltransformation and intelligent manufacturing brought by this wave, we integrate the United Nations SustainableDevelopment Goals into our corporate sustainable development framework. We actively spearhead the greentransformation of industries, foster the development of a circular economy, embark on a journey of growth with ourshareholders, customers, and society, and seek harmony and symbiosis as we stride condently forward.
Xiamen C&D Inc. 2023 Sustainability ReportAbout This ReportMessage from the ChairmanAbout C&D Inc.AppendixEnvironmentalSocialGovernance
C&D Inc. is a modern seice-oriented enterprise with dual main businesses in supply chain operations and real estate. With themission of "To exploit new value for more people to live a superior life," and the brand philosophy of “Together Go Beyond”, weaim to become a leading international supply chain operator and a distinguished real estate developer in China. We are dedicatedto being an exceptional enterprise that fosters employee satisfaction, customer delight, and societal respect.We continue to explore domestic and international markets and construct a global supply chain seice system to suppothe construction of an ecient and smooth international circulation system in China. We actively integrate into the uniednational market, continuously cultivate the markets in the East and South China regions, and vigorously expand into the
central and western regions. We have established 15 platform companies in core cities nationwide. Meanwhile, we seizethe development oppounities of the "Belt and Road" Initiative to accelerate international layout and have set up over30 overseas companies and oces in RCEP member countries, BRICS countries, and countries along the "Belt and Road,"including Vietnam, Malaysia, Indonesia, Japan, South Korea, and Brazil. We have deployed over 300 employees overseas,including local sta and expatriates, and established business relations with 170 countries and regions. In 2023, we achieveda total impo and expo volume and international business volume of $43.8 billion, representing a year-on-year growth rateof 8.38%.
About C&D Inc.
Set up over
overseas companies andoces
Deployed over
employees overseas, including localsta and expatriates
Established business relationswith
countries and regions
Achieving anannual international tradevolume exceeding
43.8
billion US Dollars
0506
Xiamen C&D Inc. 2023 Sustainability ReportAbout This ReportMessage from the ChairmanAbout C&D Inc.AppendixEnvironmentalSocialGovernance
C&D Inc.
"Guoxin Cup·ESG Golden Bull Award"
granted byChina Securities Journal
C&D Inc.
55thon "Top 100 Brand Value List ofChinese Listed Companies"
awarded by National Business Daily
C&D Inc."China Business Top 100 BestManagement and Operations Award"
granted by the China Business Top 100 Forum
C&D Inc."2023 Top 100 Chinese ListedCompanies in ESG"awarded by Securities Times
C&D Inc."Best Listed Company" and"Best ESG Practice Award"received fromthe 5th New Wealth
Highlights of C&D Inc. in 2023
C&D Inc.640thon 2023 Forbes GlobalTop 2000 Enterprises
C&D Inc.11th
on Foune ChinaListed Companies
C&D Inc.2022 Wind ESG IndustBest Practice Award
Awards Related to Economy, Society, and Environment
Total environmental protection input
3,789
Ten-thousand RMB
Total social contributions
3,833,466
Ten-thousand RMB
Total safety input
Ten-thousand RMB
Number of employees
49,752
personsVolunteer seice hours
9,984
hours
Total employee training hours
2,138,972
hours
GHG emissionintensity
tCO
e / hundred million RMB of operating revenue
Total water
consumption
3,281,383
m
GHG emissions
973,719
tCO
e
Sustainable Development Impact
·Total tax payment：
1,674,762Ten-thousand RMB·Employee compensation：
939,078Ten-thousand RMB·Dividends paid to shareholders：
478,299Ten-thousand RMB·Interests paid to creditors：
828,988Ten-thousand RMB·Social donations：
2,633Ten-thousand RMB·Fiscal subsidies received：
90,294Ten-thousand RMB
Environmental Impact
Social
Impact
Economic
Impact
Note: Data in Social Impact is from audited balance sheets, income statements, or internally audited management repos.
Xiamen C&D Inc. 2023 Sustainability Report
Total Asset
82,085,187
Ten-thousand RMB
Net pro?t attributableto shareholders of the parentcompany1,310,400
Ten-thousand RMB
Operating revenue
76,367,815
Ten-thousand RMBOperating costs
73,040,774
Ten-thousand RMB
About This ReportMessage from the ChairmanAbout C&D Inc.AppendixEnvironmentalSocialGovernance
ENVIRONMENTAL
Environmental Peormance Targets in 2023Completion Status
Organize annual inventory of GHG emissions (Scope 1, Scope 2), and commission a third-partyagency to conduct verication of GHG (Scope 1, Scope 2) emission data
100% of subordinate production enterprises pass the ISO14001 environmental managementsystem certification and gradually increase the proportion of entities covered by the ISO14001environmental management system ceication
No major environmental pollution accidents occur
The subordinate production enterprises all achieve the annual target for water consumption per unitof product
Develop green circular economy business, with a minimum of 450,000 tons of waste steelresources recycled, a minimum of 35,000 tons of waste aluminum resources recycled, and aminimum of 350,000 tons of waste paper recycled
Promote energy transformation and upgrading, invest in the photovoltaic power stationbusiness,and promote the development of the new energy vehicle businessCompleted In ProgressUn?nished
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TogetherGo Beyond
DevelopClean Technology
Implement Circular Economy Practices
Protect the Ecological Environment
Ethical and CompliantOperations
Unlock Employee Value
SustainableSupply Chain
Community Welfare Contribution
Environment
Governance
Society
Addressing Climate ChangeWe value the harmonious development between humans and nature, actively research and develop innovative digital technologyapplications, deeply integrate digital solutions with traditional industrial development, empower traditional industries to achievegreen transformation, reduce their energy and resource consumption, and make digitization a solution to promote carbon net zeroemissions. We continuously explore the design and research and development of sustainable products such as green materials andgreen buildings, promote the sustainable development of the human living environment with green concepts, advocate for energyconseation and emission reduction actions, and endeavor to mitigate climate change.
We uphold the new development concept of "Innovative, Coordinated, Green, Open, and Shared Development", and activelyrespond to the national carbon peaking and net zero strategy. We commit to achieving carbon peak by 2030 and net zero emissionsby 2060. We incorporate the development of clean technologies into our company's strategy and invest in clean technology researchand development. Through the investment in R&D of clean technology and the development of innovative digital technologyapplications, we aim to achieve cost reduction and eciency enhancement, empower traditional industries for low-carbontransformation, and drive the green development of the industrial chain while contributing to the global temperature control goalsunder the Paris Agreement.
Sustainable Development Framework
Sustainable Development Policies
EnvironmentXiamen C&D Inc. Environmental ProtectionPolicy
Society
Xiamen C&D Inc. Human Rights PolicyXiamen C&D Inc. Anti-Discrimination andAnti-Harassment PolicyXiamen C&D Inc. Community PolicyXiamen C&D Inc. Occupational Health andSafety PolicyXiamen C&D Inc. Supplier Code of ConductXiamen C&D Inc. Information Security Policy
Governance
Xiamen C&D Inc. Business Code of ConductXiamen C&D Inc. Anti-Corruption and Anti-Bribe Policy
Sustainable Development Practices
Environment
Actively research and develop innovative digitaltechnology applications, empower the low-carbontransformation of traditional industries, and drivethe green development of industrial chains.Proactively engage in green circular economybusiness, promote recycling of scrap steel,aluminum scrap, waste paper, etc., enhanceresource utilization eciency, and minimize carbonemissions throughout the lifecycle of materials andproducts.Research and design green products, investin new energy industries, and promote energyconseation and emission reduction.Optimize water resource management measures,improve water utilization eciency, standardizethe management of pollutants such as waste gas,wastewater, and waste, and ensure compliantdischarge.Refrain from undeaking projects in signicantecological conseation areas and their vicinity inbusiness operations, and practice the principle ofbiodiversity conseation.
Society
Cultivate a global supply chain layout, establisha responsible supply chain management system,provide high-quality and sustainable products andseices to global customers, and enable morepeople to live a superior life.Protect human rights, create an inclusive, safe, andhealthy work environment, along with competitivecompensation and benets.Conduct community dialogue, establishmutually benecial relationships for prosperityand coordinated development, suppo ruralrevitalization, and fulll social responsibilities.
Governance
Establish a sound ESG governance mechanism,improve risk management systems, adhere tohigh ethical standards in business operations,and uphold integrity, freedom, and fairness inthe business environment.
·
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···
·····
··
·
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Sustainable Development Risk Management
We have selected the ve low GHG emissions scenario (SSP1-1.9) and the ve high GHG emissions scenario (SSP5-8.5)from the ve scenarios under the IPCC's Shared Socioeconomic Pathways (SSP) to conduct Near term, Medium term,and Long term identication and assessment of climate disaster risks aecting our supply chain operations and realestate business.According to the IPCC's sixth assessment repo, compared to 1850–1900, global suace temperature averaged over2081–2100 is ve likely to be higher by 1.0°C to 1.8°C under the ve low GHG emissions scenario considered (SSP1-1.9),by 2.1°C to 3.5°C in the intermediate GHG emissions scenario (SSP2-4.5) and by 3.3°C to 5.7°C under the ve high GHGemissions scenario (SSP5-8.5).The last time global suace temperature was sustained at or above 2.5°C higher than1850–1900 was over 3 million years ago (medium condence).Relative to 1995–2014, the likely global mean sea level rise by 2100 is 0.28–0.55 m under the ve low GHG emissionsscenario (SSP1-1.9); 0.32–0.62 m under the low GHG emissions scenario (SSP1-2.6); 0.44–0.76 m under theintermediate GHG emissions scenario (SSP2-4.5); and 0.63–1.01 m under the ve high GHG emissions scenario (SSP5-
8.5).
The average annual global land precipitation is projected to increase by 0–5% under the ve low GHG emissionsscenario (SSP1-1.9), 1.5–8% for the intermediate GHG emissions scenario (SSP2-4.5) and 1–13% under the ve highGHG emissions scenario (SSP5-8.5) by 2081–2100 relative to 1995–2014 (likely ranges).
We attach great impoance to the challenges and transformation oppounities brought by climate change to human society, andincorporate climate change-related risks into our enterprise risk management process. We combine our business characteristics andconduct identication and analysis of climate change risks based on dierent climate scenarios under the IPCC and IEA scenariomodels. We identify and assess the physical risks and transition risks and oppounities in the sho, medium, and long term, activelyexplore development strategies, business plans, and management measures to address climate change risks, continuously improveour sustainable risk response capabilities, and promote sustainable, high-quality development of the company.
Physical Risk Assessment
Climate-related Disaster Risks
CurrentStatus
20302050SSP1-1.9SSP5-8.5SSP1-1.9SSP5-8.5
Typhoon and Flood
Typhoons may bring strong winds, heavy rain, and stormsurges, while floods can result in catastrophic damageto the company's buildings, equipment, and inventory.This could lead to injuries or entrapment of companyemployees and surrounding residents, and may even triggersecondary disasters such as landslides. It could also resultin transpoation disruptions, po closures, power outages,and other issues, causing suppliers to be unable to delivergoods on time or facing transportation hindrances, thusaecting the company's normal operations.Sea Level RiseOur headquarters are located in coastal areas, and ourassets or real estate projects may face risks of being erodedby seawater or decreasing in value. Rising sea levels maydisrupt transportation systems, leading to interruptions inour supply chain, adversely aecting the procurement of rawmaterials and transpoation of products, thereby impactingproduction schedules and delive capabilities.Loss of Biodiversity and Habitat DisplacementDegradation of marine, coastal, and terrestrial ecosystems,species extinction, and irreversible loss of ecosystems andtheir services (including freshwater, terrestrial, and marineecosystems).Extreme High and Low TemperaturesExtreme high temperatures may lead to heatstroke, fatigue,and increased health problems among employees, reducework efficiency and productivity, and affect the normaloperation of the enterprise. Equipment may be damagedor malfunction due to overheating in high-temperatureenvironments, resulting in production interruptions. To copewith high temperatures, it may be necessa to increase theuse of air conditioning, refrigeration, and other equipment,leading to increased energy consumption and risingoperating costs.Water Scarcity Caused by DroughtThis could potentially lead to insufficient supply of waterresources for production and daily life during businessoperations. To mitigate the impact of water pressure anddrought on business operations, it may be necessary toallocate additional funds to acquire water resources, such asconstructing water treatment facilities, thereby increasingthe operational costs of the enterprise.
Physical Risks
Extreme High ImpactExtreme Low ImpactLow ImpactMedium ImpactHigh Impact
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Physical Risk Management
Physical Risks Impact PeriodMitigation Plan
Typhoon and FloodTyphoons may bring strong winds, heavy rain, and stormsurges, while floods can result in catastrophic damageto the company's buildings, equipment, and inventory.This could lead to injuries or entrapment of companyemployees and surrounding residents, and may eventrigger secondary disasters such as landslides. It couldalso result in transportation disruptions, port closures,power outages, and other issues, causing suppliers to beunable to deliver goods on time or facing transpoationhindrances, thus affecting the company's normaloperations.
Near Term, Mid-Termand Long Term
Conduct risk assessments in areas that may be aected by typhoonsin advance, and take reinforcement and protective measures forimportant equipment and inventory. Develop emergency plans fortyphoon and flood prevention, conduct regular safety training andemergency drills for employees, and enhance disaster awarenessand self-rescue capabilities. Establish close cooperation with thegovernment and communities to collectively address the challengesposed by typhoons and ensure the safety and health of employeesand the lives of surrounding community residents. Prior to the arrivalof typhoons and heavy rain, communicate in advance with suppliersand logistics companies to ensure their understanding of the typhoonsituation and make corresponding preparations. Pre-stock necessaproduction materials and raw materials in advance to cope withpotential supply chain interruptions.Seal Level RiseOur headquarters are located in coastal areas, and ourassets or real estate projects may face risks of beingeroded by seawater or decreasing in value. Rising sealevels may disrupt transportation systems, leading tointerruptions in our supply chain, adversely affectingthe procurement of raw materials and transportation ofproducts, thereby impacting production schedules anddelive capabilities.
Mid-Term and LongTerm
Comprehensively assess the risk of sea level rise in the company'slocation, carefully evaluate new investments or constructions inlow-lying areas or areas vulnerable to sea level rise. Take protectivemeasures such as reinforcing embankments, constructing oodgates,and upgrading drainage systems for existing facilities to enhancetheir ability to resist disasters such as oods and seawater intrusion.Regularly inspect and maintain these facilities to ensure their normaloperation. Establish a diversied supply chain to reduce reliance on asingle supplier and mitigate supply chain risks resulting from sea levelrise.Loss of Biodiversity and Habitat DisplacementDegradation of marine, coastal, and terrestrial ecosystems,species extinction, and irreversible loss of ecosystems andtheir seices (including freshwater, terrestrial, and.
Mid-Term and LongTerm
Conduct environmental assessments and strive to minimize thenegative impact of enterprise production and operations onecosystems. Advocate for biodiversity conseation actions to protectthe ecological environment of the local community.Extreme High and Low TemperaturesExtreme high temperatures may lead to heatstroke,fatigue, and increased health problems among employees,reduce work efficiency and productivity, and affect thenormal operation of the enterprise. Equipment may bedamaged or malfunction due to overheating in high-temperature environments, resulting in productioninterruptions. To cope with high temperatures, it maybe necessary to increase the use of air conditioning,refrigeration, and other equipment, leading to increasedenergy consumption and rising operating costs.
Near Term, Mid-Termand Long Term
Provide necessa cooling or warming equipment to ensure the healthand safety of employees in high or low temperature environments.Additionally, schedule work hours sensibly to avoid outdoor tasksduring periods of extreme temperatures, reducing employee exposureto such conditions. Regularly maintain and inspect critical equipment toensure its proper functioning in extreme temperatures. Optimize oceenvironment design with natural ventilation and shading measures toreduce air conditioning load. Actively seek renewable energy sourcesand energy-saving technologies to reduce energy consumption andoperational costs.
Water Scarcity Caused by DroughtThis could potentially lead to insucient supply of waterresources for production and daily life during businessoperations. To mitigate the impact of water pressure anddrought on business operations, it may be necessaryto allocate additional funds to acquire water resources,such as constructing water treatment facilities, therebyincreasing the operational costs of the enterprise.
Near Term, Mid-Termand Long Term
Develop a comprehensive water resource management strategy,including water-saving measures, water recycling, rainwater haesting,etc., to reduce reliance on external water resources. Conduct regularassessments of water resource risks and implement correspondingresponse measures, such as establishing emergency water reservesand formulating contingency plans. Organize regular employeeawareness campaigns and training on water resource conservationto enhance water-saving awareness. Adopt advanced water-savingtechnologies and processes to improve water resource utilizationeciency. Avoid water conseation areas as much as possible beforeproject construction or acquisition, and collaborate with governmentsand communities to participate in water resource conservation andgovernance eos, and jointly promote the sustainable utilization ofwater resources.
With reference to the IEA’s scenario model, we selected the Net Zero Emissions by 2050 (NZE) Scenario, where the global energy-related CO2 emissions are expected to reach net zero by 2050, oering the world a chance to limit the global temperature riseto within 1.5 °C. We also choose the Stated Policies Scenario (STEPS), which considers only specic policies already enacted orannounced by governments, and annual CO2 emissions from energy-related and industrial processes are projected to increase from34 gigatons in 2020 to 36 gigatons in 2030, and remain at approximately the same level until 2050. If emissions continue along thistrajecto and non-energy-related greenhouse gas emissions follow a similar trend, the global temperature is estimated to rise byaround 2.7°C by 2100 (with a 50% probability). By 2050, the share of renewable energy in global electricity generation is projectedto approach 55%. Over the period from 2020 to 2050, global coal consumption is expected to decrease by 15%, oil consumptionto increase by 15%, and natural gas consumption to increase by nearly 50%. We conducted sho-term, medium-term, and long-term identication and assessment of the transition risks to our supply chain operations and real estate business, and formulatedcorresponding measures to enhance the company's ability for sustainable development.
Transition Risks
Transition RisksImpact PeriodMitigation Plans
GeopoliticalConict
Near Term, Mid-Term and Long
Term
Uphold a strategy of specialized operation, improve the construction and management of professionalgroups and business units, and promote the specialized development of each operating unit. Suppo theexpansion of core business operations, consolidation of market position, and enhancement of induststatus and core competitiveness from aspects such as resource allocation, management mechanisms, andindustrial investment.Speed up the "going global" layout, grounded on the domestic and international dual circulationdevelopment pattern, continuously cultivate the advantageous regional markets such as East China andSouth China domestically, actively expand the markets in the central and western regions, integrate intothe countries that have signed the RCEP agreement overseas, establish local teams and channels, andproactively build a global supply chain system.Bolster the technological and nancial empowerment, accelerate the application of digital technology,and realize the online, digital, mobile, and visual operation of supply chain operations. Explore variousnancing channels, optimize the nancing structure, exibly use various nancial products and tools,reasonably hedge against exchange rate risks, reduce nancing costs, and improve protability.Strengthen investment suppo on the basis of specialized operations, seek cooperation oppounitieswith indust-leading enterprises, extend the layout of core businesses to the upstream and downstreamindustrial chains, and continuously enhance the competitiveness of core businesses through resourcesharing.
MacroeconomicPolicyAdjustment
Near Term, Mid-Term and
Long Term
Closely monitor the macroeconomic situation and track indust regulato dynamics, follow the directionof macro-control policies, and promptly formulate response measures in accordance with policy changes.Fully consider policy risks in land acquisition and resee sucient safety margins.Systematically enhance operational eciency, balance growth speed with development quality, improvethe quality of products and seices, and actively establish a diversied matrix of real estate-relatedbusinesses to cope with external unceainties.
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··
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EnergyTechnologyTransformation
Near Term, Mid-Term and Long
Term
Actively research and develop innovative digital technology applications, continuously promote thedevelopment and innovation of digital application in the supply chain, integrate digital solutions withtraditional industrial development, empower traditional industries to achieve green transformation, reducetheir energy and resource consumption, promote overall energy saving, cost reduction, quality improvement,and enhance the competitiveness of products and sustainable development capabilities.Actively explore the research and design of green materials through research and innovation in greenenvironmental protection technology, provide environmental protection solutions for footwear and bagsproducts, and empower the green development of upstream and downstream enterprises.Inject green ecological concepts into urban architectural practice through innovative research anddevelopment of the fouh generation of residential buildings to achieve harmonious development betweenbuildings and the environment.Develop new energy businesses and markets, cooperate in the construction and operation of photovoltaicpower stations in multiple regions domestically, invest in and operate various new energy brand 4S stores,promote the development of new energy public service vehicle businesses, continuously develop thephotovoltaic, energy storage, and new energy vehicle industry chains, expand overseas markets, andaccelerate integration into the global new energy value chain.
Market PriceFluctuations
Near Term, Mid-Term and Long
Term
Implement corresponding management measures based on different commodities andbusiness models:
·For agency business and transactions involving locked-in customers, mitigate certainrisks in the initial contract phase by selecting high-quality clients and collecting deposits.After business commencement, track and control risks through methods such as priceadjustments.·For proprieta operations, implement unilateral exposure volume control. Utilize oating
pricing and index pricing settlement methods during business operations. Additionally,hedge against price risks through reasonable futures or options protection.·Closely monitor changes in relevant commodity market prices and external situations.Encourage operational units to expedite turnover and reduce price risks through real-timeprice monitoring.
Intensicationof industcompetition
Near Term, Mid-Term and Long
Term
Combine years of deep experience with accumulated channel and brand advantages toestablish a multi-category supply chain service business matrix, forming a competitiveadvantage through scale and specialization.Promptly engage with national policies, expedite expansion into the "Belt and Road" initiativeand other global markets, explore novel models and new business sectors, and continuouslyenlarge the business footprint and market reach.Strengthen information technology construction to accelerate business operation eciency.Enhance the value-added service solutions, increase customer stickiness, and enhanceindust inuence to strengthen overall business competitiveness.Continue to optimize real estate projects, intensify the focus on existing key regions, andsteadily expand into promising cities.Continuously develop distinctive products, strengthen brand characteristics, tailorbenchmark projects for key cities according to local conditions, and leverage the value ofreal estate-related commercial seices such as "real estate +" to enhance dierentiationcompetitive advantages.
GHG Emissions ManagementIn compliance with the ISO14064-1:2018 standard, we conducted a greenhouse gas invento for entities within the consolidationscope using the operational control approach in 2023. In 2023, our total greenhouse gas emissions (Scope 1 + Scope 2) amounted to973,719 tCO
e, representing an increase compared to 2022 mainly due to the acquisition of Meikailong during the repoing period.If we exclude the GHG emission data from Macalline during the repoing period and maintain a consistent comparison between2022 and 2023, the company's total greenhouse gas emissions (Scope 1 + Scope 2) would be 490,542 tCO
e. This reects a decreaseof 15,628 tCO
e compared to 2022, representing a year-on-year decline of 3.1%.
Our GHG Emissions1,200,0001,000,000800,000600,000400,000200,000
Scope 1（tCO
e)
Scope 2（tCO
e)20222023
Scope 1：
Direct GHG Emissions（tCO
e）434,139285,727Scope 2：
Indirect GHG Emissions（tCO
e）539,580220,443Total GHG Emissions（tCO
e）973,719506,170Carbon Emissions Intensity（tCO
e/hundred million RMB of operatingrevenue）
12861
2023Catego
2022
220,443
285,727
539,580
434,139
······
····
1920
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2023 Energy Consumption
Xiamen C&D Inc.
FunctionalManagement Depament
Supply ChainOperations Segment
C&D RealEstate Corp., Ltd.
Lianfa Group
Co.,Ltd
Real EstateOperations Segment
Owned and LeasedBuildings
Owned and LeasedBuildings
Owned and LeasedBuildings
Owned and LeasedBuildings
Oce Vehicles
Oce Vehicles
Oce VehiclesOce VehiclesWarehouse OperationsEquipment
Seven Major Specialized Groups andEmerging Business DivisionMACALLINE
Organizational Bounda
OperationalBounda
Our greenhouse gas invento scope for 2023 includes Scope 1 direct emission sources and Scope 2 indirect emission sources.Specically, Scope 1 encompasses emission sources such as natural gas boiler combustion, vehicle combustion facilities, as well asfugitive emissions from air conditioning units, re extinguishers, etc. Scope 2 includes greenhouse gas emissions generated frompurchased electricity, heat, and other sources.
2023 GHG Invento Scope
Organizational Bounda of 2023 GHG Invento
Elaboration on Energy Consumption in 2023In 2023, our prima energy sources were coal and electricity. The specic energy consumption breakdown is as follows:
Energy Type20232022
2023 Energyconsumption in 2023(tonnes of standardcoal)
2022 Energyconsumption(tonnes of standardcoal)
2023 Energyconsumption
propoion
(%)Coal (t)166,254137,412118,75598,15340.920Electricity (kWh)947,373,073259,624,703116,43246,73940.119Natural Gas (m?)39,117,790105,48852,02714017.927Thermal (GJ)27,26616,4829305620.320Gasoline (L)701,654914,0237549820.260Steam (t)7,193/746/0.257Diesel (L)446,758494,6185606200.193Liqueed Petroleum Gas
(kg)
6,5601,323,280112,2690.004 Total290,215149,465100
Electricity Steam Natural Gas Gasoline Diesel Liqueed Petroleum Gas Coal Thermal
40.119
%
0.257
%
17.927
%
0.004
%
0.193
%
0.260
%
40.920
%
0.320
%
EnergyStructure
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Research and Application of Digital Technology
The application of digital technology, through enhancing resource utilization eciency, reducing pollutionemissions, promoting green consumption, and minimizing carbon emissions, sees as a pivotal cleantechnology in realizing carbon peak and net zero objectives and advancing sustainable developmentacross the economy and society. We keep innovating digital technology applications, continuouslydeepen the development and innovation of digital application scenarios within the supply chain. Weintricately integrate digital solutions with the evolution of traditional industries, empowering them toundergo a green transformation while curbing their energy and resource consumption. This fosterscomprehensive energy savings, cost reductions, quality enhancements, and eciency improvementsthroughout the industrial chain, thus collectively propelling green and low-carbon development withinthe indust.
GHG Emissions Reduction SchemesWe proactively align with the national carbon peaking and net zero strategy and draw insights from the "Corporate Net ZeroPathway - Delivering the Paris Agreement and the Sustainable Development Goals," released by the United Nations Global Compact(UNGC). Through the adoption of digital technology research and innovation, green product development and design, and advocacyfor energy conseation and emissions reduction, we aim to not only reduce GHG emissions from our own operations but alsofacilitate the low-carbon transformation of traditional industries and drive the green development of the industrial chain.
Our pulp and paper indust internetplatform was awarded
recognized our company's proactiveexploration and leading role in thedigital transformation of the pulpand paper indust
Highlight
Internet Platform for the Pulp and Paper IndustThe pulp and paper indust chain encompasses upstream international pulpmills, midstream paper mills, as well as downstream printing and packagingfactories, with tens of thousands of enterprises involved. Leveraging ourinnovative "LIFT Supply Chain Seices" system, we have developed a leadingpulp and paper indust internet platform, with core products including"E-Pulp" and "PaperSource". Through technologies such as aicial intelligence,blockchain, cloud computing, and big data, we have introduced a digital holisticsolution centered around information, storage and transpoation, nance, andrisk control, achieving ecient linkage between online and oine scenariosand resources. This has addressed the high costs, logistical challenges, andfunding shoages traditionally faced in the pulp and paper indust. We havepropelled the transformation and upgrading of the entire indust chain, andachieved cost reduction and eciency enhancement by providing customerswith comprehensive, high-quality, and customized supply chain seices. Wehave also introduced aicial intelligence technologies such as digital humantechnology to enrich the content of information programs, and created a seriesof popular audio and video programs to tackle the information barriers andscattered information sources in the pulp and paper indust. In promotingthe digitization of international business, the pulp and paper indust internetplatform collaborates with upstream suppliers in the international pulp supplychain to explore paperless transactions in the global pulp and paper indust.This has facilitated the rapid circulation of electronic documents globally,enabled the full digitization of business processes, saved resources, andimproved the eciency and security of transactions.
the second prize
in the"First State-owned Enterprise DigitalScenario Innovation ProfessionalCompetition" by the SASAC,
We ranked
9th
on the" China Industrial InternetTop 100 List"We received the honor of the"2021-2023 Enterprises with OutstandingContributions to the Tenth Anniversa ofChina Industrial Internet Development"
2023
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2023
We innovate by using bamboo instead of wood to produce our own brand "Choice of Purity" Natural Bamboo PulpPaper. The "Choice of Purity" Natural Bamboo Pulp Paper adheres to the principle of purity, with no uorescentagents, bleaching agents, sterile, or harmful additives. The COD emissions during the production process are onlyhalf of those of white paper. Additionally, it has passed international food-grade tests such as those from the U.S.FDA and the EU's AP.
Compared to traditional chemical pulping, modern bamboo pulp production technologyplaces greater emphasis on environmental protection. The pulping production line for"Choice of Purity" bamboo pulp adopts advanced international technologies such asDisplacement Digester System and Closed Screening. The extended delignicationof bamboo pulp and related clean technologies have been included in the NationalDevelopment and Reform Commission's major industrial technology developmentspecial projects. Advanced pulping technology provides suppo for product quality.The leading product, high-grade bamboo pulp board, features high strength, good airpermeability, absorbency, and signicant antibacterial propeies. It is environmentallyfriendly, free from toxic elements, and suitable for the production of household paperand high-quality paper. Compared to wood pulp papermaking, eve ton of bamboopulp paper saves one ton of steam consumption. The energy consumption of "Choice ofPurity" bamboo pulp paper is about 300 kilograms of standard coal per ton of product,which is approximately 350 kilograms lower than the national clean standard (650kilograms of standard coal). Additionally, bamboo pulp waste residue is processed intomushroom planting feilizers to promote local economic development and protect thelocal ecology.
●Green Pulp and PaperC&D Esteellink
Drawing on the demand for high-quality supply chain seices from ecologicalpaners across the upstream and downstream of the steel indust chain, wehave launched the "C&D Esteellink" collaborative platform. This platform, builtupon the "LIFT Supply Chain Seices," integrates key elements such as logistics,information, nance, and business to revamp traditional supply chain operationseice processes with optimized management and seices model. It improvesoperational eciency and user experience for the steel indust clients throughoering online contract signing, logistics tracking, self-seice delive, andintelligent settlement reconciliation, improving quality and eciency for bothupstream and downstream stakeholders in the steel indust.
Green Products Design and R&D
We continuously explore the design and R&D of green products such as green materials and green buildingsin our supply chain operations and real estate business, and promote the sustainable development of livingenvironments with green concepts.
In 2023, at the 6th Digital ChinaSummit, the " C&D Esteellink" platformwas awarded the second prize in thecompetition for its use of technologyto empower supply chain operations,reduce costs, increase eciency, andpromote low-carbon transformationand development. It won the awardfor its digital application scenarioof "Create an Internet platformfor the steel indust to empowercollaborative development in the steelindust."
The "Choice of Purity" Natural Bamboo Pulp Paper is sourced from the bamboo forests of Muchuan, where the unique ber of the localBambusa Emeiensis is ideal for papermaking. Bambusa Emeiensis is a typical cluster plant, maturing in three years, and after maturity, the oldbamboo can be haested annually, leaving new shoots to grow. Proper haesting promotes the healthy growth of bamboo forests, ensuringlush greene in the mountains and eectively preventing soil erosion and loss of water and soil.
Environmental-friendly Technology
Over the past decade, the total production capacity of bamboo pulp at the pulpmill we invested in has reached 3.60 million tons. While catalyzing the developmentof industries worth 4 billion RMB in Muchuan County, Sichuan Province, we havealso contributed to raising the forest coverage rate from 13.8% to 77.34%. The areaof bamboo forests has expanded from 20,000 mu in the 1980s to 800,000 mu. Thecumulative substitution of wood pulp resources is equivalent to saving the logging of1 million mu of forests.
The total production capacity of bamboo pulpat the pulp mill we invested in has reached
3.60
million tonsThe cumulative substitution of wood pulpresources is equivalent to saving the logging of
million mu
of forests.
Highlight
Raw Materials Sourcing
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As the rst residential project with three-dimensional greening in Fuzhou, the "C&D·ManYun" project integrates the concept of "sky gardens"and "sky garden streets" into the traditional largeat layout. It introduces veical greening, formingan architectural form of "streets and lanes on eachoor, couyard for each household." While ensuringbuilding quality and safety, this design enhancesthe greening rate of the community and the comfoof residents, achieving harmonious developmentbetween architecture and the environment.
"C&D·Man Yun" Project in Fuzhou
●Green Building
It is a crucial initiative to develop green and low-carbon buildingsfor conseing resources, protecting the environment, and achievingsustainable development. We abide by national and industrequirements for green buildings, such as the "Assessment Standard forGreen Building," "Code for Green Design of Civil Buildings," and "DesignStandard for Energy Eciency of Public Buildings." We rigorouslymanage environmental protection throughout the entire lifecycle ofbuildings, from design to operation, promoting practices in greenbuilding design, sponge city design, prefabricated building technology,BIM technology, and ultra-low energy consumption buildings. Thisenhances project quality, construction eciency, maximizes resourceconseation, reduces negative environmental impacts, and constructssafe and comfoable green and low-carbon buildings, to establishharmonious coexistence between buildings and nature. In 2023, wecompleted 11 new green building projects with 2 projects obtained theone-star green building ceication.
We incorporate environmentally friendly materialssuch as SORONA, CELYS, and PRIMALOFT BIOinto our product designs. We present a greenand eco-friendly design concept by employinggreen materials, printing and dyeing techniques,and production processes. We are committed totransforming the traditional textile fabric productionprocess that generates carbon dioxide emissions.For dierent markets and ceication standards, werigorously select suppliers based on four dimensions:
product recycling, production and sales supeision,social and environmental practices, and chemicalrestrictions. We also provide various ceicationssuch as GRS, GOTS, OEKO-TEX, BCI, and RCS.We actively explore and utilize recycled polyester,recycled cotton, plant bers, biodegradablebiomaterials, and carbon-negative materials, oersustainable development solutions for clothing andtextile products, and empower green and sustainabledevelopment across the entire indust chain.
●Green Material
In the eld of bio-based outsoles, we have conducted in-depthresearch on sustainable solutions utilizing sugarcane, corn,soybeans, and straw for bio-fermentation, and customizedproduction of bio-based outsoles and raw materials withcontent ranging from 20% to 90% for our clients. By replacingpetroleum-based materials with bio-based ones in outsoleproduction, we have fully achieved material recyclability,biodegradability, and ecological sustainability.
We completed
newgreen building projectswith
projects obtainedthe one-star green buildingceication.
2023
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We advocate for daily work communication and collaboration through video conferences and remote work to reducegreenhouse gas emissions generated by business trips. We encourage employees to carpool for necessa ocial tripsto achieve a low-carbon commuting.
We are implementing management measures aimed at "reducing unnecessa energy consumption and implementing energy-savingtechnology upgrades" and "developing low-energy oce equipment and eveday appliances to decrease oce power consumption." Weactively advocate for the adoption of environmentally friendly and energy-ecient appliances and facilities to achieve our energy-savingobjectives. For instance, in oce areas, we utilize energy-ecient lighting and make optimal use of natural site conditions, ensuring a well-designed layout for oce and tempora living facilities that considers proper orientation, spacing, and window-to-wall ratio. Temporafacilities are constructed with color steel composite walls for insulation, insulated roofs, and sealed doors and windows with excellentheat insulation propeies to ensure eective insulation and minimize energy wastage. Energy-ecient lighting is employed extensively inconstruction sites, oce areas, and living quaers, both indoors and outdoors. Specic on and o timings are established for lighting intower crane lights, oce areas, and living quaers, with adjustments made according to seasonal requirements to reduce energy losses.We have established lighting operation maintenance and management systems and continually enhance energy-saving rates throughelectricity consumption tracking and comparative analysis. Automatic opening and closing times for various light sources, such as lightstrips in public oce areas, are shoened to minimize energy consumption.
Ultra-low energy buildings have become one of the impoanttrends in building development today. Not only do they help reduceenergy consumption and environmental pollution, but they alsoenhance the comfo and quality of buildings, creating healthier, morecomfoable, and livable living environments. We actively promote theconstruction of ultra-low energy buildings and employ technologiessuch as external sun shading, energy-ecient doors and windows,insulation of building envelopes, and ecient heat recove in projectconstruction to reduce the demand for building heating and cooling.We optimize heating, ventilation, and air conditioning (HVAC) systemsto improve energy eciency and fully utilize renewable energy sourcessuch as solar energy. By providing comfoable indoor environmentswith less energy consumption and meeting the basic requirements ofgreen buildings, we eectively reduce building energy consumptionand achieve sustainable development in construction. In 2023, wedeveloped multiple ultra-low energy or nearly zero energy projectsin cities like Shanghai and Hefei. Among them, the Man Yun Projectin Minhang District, Shanghai, is expected to save 745,700 kWhof electricity annually, equivalent to saving 215.3 tons of standardcoal, representing approximately 50% energy savings compared toconventional residential projects. The Jing Yuan Project in Shanghaiis expected to save 913,200 kWh of electricity annually, equivalent tosaving 723.34 tons of standard coal, representing approximately 60%energy savings compared to conventional residential projects.
Projects of “C&D·Man Yun” and “C&D·Jing Yuan” in Shanghai
The Man Yun Project in Minhang District,Shanghai, is expected to save745,700
kWhof electricity annuallyequivalent to saving
215.3
tonsof standard coal
equivalent to saving
723.34
tonsof standard coal
The Jing Yuan Project in Shanghaiis expected to save913,200
kWhof electricity annually
Energy-saving and Emission-reduction ActionsAs a responsible enterprise, we actively promote energy-saving and emission-reductionactions. We rigorously regulate the utilization of energy and resources in the workplacethrough green oce practices, eco-friendly transpo, equipment energy-savingupgrades, and other methods. We also strengthen employees' awareness of resourceconseation and environmental protection, aiming to improve the eciency of energyand resource utilization and achieve energy-saving and emission-reduction goals.
● Green Oce Practices
●Eco-friendly Transpo
●Equipment Energy-saving Upgrades
We are comprehensively advancing the digitalization of oce systems, providing online seices for administrativemanagement, personnel management, nancial management, and business applications, among other oce scenarios,to enhance operational eciency, unleash collaborative value, and create a paperless intelligent oce environment.In our eos towards energy conseation and emission reduction in the workplace, we have formulated the "XiamenC&D International Building Daily Safety, Energy Saving, and Environmental Hygiene Management Measures." TheGreen Oce Working Group conducts daily inspections on energy-saving measures in the oce building to ensuretheir eective implementation. For instance, we post energy-saving signs in public areas, encouraging employees toturn o power when leaving work. We install sma motion sensors in staircases, bathrooms, and other public areasto automatically turn o lights when unoccupied, eliminating the phenomenon of "long-term lighting". We reduce thenumber of lighting xtures in oce areas with sucient natural sunlight, minimizing energy consumption. We prioritizethe use of fans during weekend oveime shifts and strictly control additional requests for air conditioning usage. Inour real estate business, the construction project depaments strictly control air conditioning usage, ensuring indoortemperatures do not fall below 26°C in summer and do not exceed 20°C in winter. We primarily rely on solar energyfor hot water supply in workers' bathrooms at construction sites, with electricity seing as a backup to reduce energyconsumption. Maintenance, repair, and inspection systems are established for construction machine and equipmentto optimize their utilization and load capacity through reasonable process arrangements. Energy-saving signs areprominently placed at power sources to remind employees to adopt electricity conseation habits.
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C&D Propey implemented a human-machine collaboration work mode in theWalton 1275 project, achieving a high equipment coverage rate of up to 90%in the park. All of the aforementioned equipment operated on electric powerand abandoned traditional fuel-based equipment. Combined with standardizedequipment management, it ensured ecient and energy-saving operation ofthe equipment, achieving a 46% increase in equipment utilization eciencyand eective carbon emissions reduction. Taking the oor scrubber in theunderground garage as an example, after optimization, one machine onlyneeded to operate four times per month to complete the cleaning of 1,640parking spaces, which signicantly improved work eciency and reduced energyconsumption.
In 2023, MACALLINE completed the transformation of six ultra-low nitrogen burners in two of its shopping malls. Afterthe transformation, the air-fuel ratio and gas eciency of the boilers reached their highest levels, with a combustioneciency of up to 99.9%. Emissions of nitrogen oxides and other pollutants met environmental protection standards.Additionally, MACALLINE replaced and repaired 172,000 LED energy-saving lamps in the shopping malls, achieving acoverage rate of 99% with the LED energy-saving lamps which eectively reduced the energy consumption of the malls.
Based on the energy consumption data for the year 2022 and the expected increase in project area for the takeoverproject in 2023, our subsidia C&D Propey and its business units jointly set the energy-saving target for the year2023, aiming for a 5% improvement in energy eciency. C&D Propey requires all business units and projects tostrictly adhere to the "Energy Conseation and Control Standard in Public Area" and "Energy Saving ManagementOperation Guide," continuously improve and implement the water and electricity management system in oce areas,and sta implementing energy-saving measures from the initial stage of budget formulation through adjusting costbudgets to ensure the smooth achievement of energy-saving targets. Each business unit has formulated energy-savingplans based on the actual situation of their respective projects, detailing energy-saving modules, methods, monthlyprojected energy-saving data, completion time of energy-saving plans, and responsible personnel from multipledimensions. At the same time, energy-saving indicators have been included in the quaerly assessment of businessunit functions as bonus points to encourage active paicipation in energy-saving work by all business units.
Cost Control and Eciency EnhancementHuman-Machine Collaboration for Energy Eciency
Equipment Renovation for Energy ConseationCompleted the local temperature control transformation of 320 elevator machine rooms, achievedautomatic adjustment of air conditioning and fans based on room temperature, and signicantlyimproved the energy-saving eects.Replaced the lighting xtures in the underground garage with dual-brightness radar induction lightingxtures, automatically adjusted brightness based on pedestrian and vehicle ow in the garage, andsuppoed regional networking to meet the travel needs of owners. The energy-saving eect of a singleproject achieved at 20% approximately.Strengthened the requirements for temperature settings and switch-o times for oce area airconditioning, formulated relevant management systems, implemented energy-saving measures in oceareas, and posted conspicuous reminder signs at air conditioning switches, and saved approximately 5,600kWh of electricity per month.Optimized the automatic switch-o time and temperature of terminal fan coils or air conditioningsubunits based on the number of personnel in oce area, and saved approximately 6,200 kWh ofelectricity per month.
Replaced and repaired
172,000LED energy-saving lamps in the shopping malls
After optimization, one machine only neededto operate four times per month to completethe cleaning of1,640
parking spaces,which signicantly improvedwork eciency andreduced energyconsumption.
Achieving a coverage rate of99%
with the LED energy-saving lamps
HighlightHighlight
Highlight
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Pollution Prevention and Ecosystem Protection
As a leading domestic supply chain operator and real estatedeveloper, we are committed to creating an environmentally friendlyand comfoable business and living environment for stakeholdersworldwide. We strive to minimize the environmental impact of ouroperations. We have formulated an "Environmental ProtectionPolicy" that sets foh standardized requirements for our companyand its subsidiaries in reducing pollutant emissions, conseingwater resources, and protecting biodiversity, among other aspects.Our company's management is responsible for environmental issuemanagement objectives and pledges to oversee the implementationof environmental management policies and the improvement ofenvironmental peormance. Our production-oriented enterprisesunder the company have obtained ISO14001 environmentalmanagement system ceication.
Pollutants Emissions ControlWe strictly adhere to relevant laws and regulations such as the "Air Pollution Prevention and Control Law of the People's Republicof China," the "Water Pollution Prevention and Control Law of the People's Republic of China," the " Law of the People's Republicof China on Prevention and Control of Environmental Pollution by Solid Waste," and the "Law of the People's Republic of Chinaon Prevention and Control of Environmental Noise Pollution." We regulate the management of pollutants such as exhaust gases,wastewater, solid waste, and noise to minimize the negative impact of emissions from our business operations on the surroundingenvironment. In 2023, we did not experience any signicant environmental pollution incidents and did not receive any relatedpenalties.
We select decoration materials that have been tested and ceied by statuto testing units, and conduct assessmentsof hazardous substances in accordance with relevant national regulations and standards. We prohibit the burning ofconstruction waste and other materials that produce toxic, harmful smoke, and foul odors within the construction area tominimize environmental pollution.
Dust identication signs are installed on the construction site to identify dust generation during various stages andprocesses of construction, enabling precise management by classifying pollution levels in advance.Early overall planning is conducted for site leveling, and concrete hardening is applied to construction roads.Dedicated personnel are assigned to peorm daily cleaning, and water trucks are deployed for regular watering to keepthe roads moist.Uncovered soil is managed by a combination of planting grass and using green nets to control dust, ensuringcomprehensive coverage of site management without leaving any blind spots.Sprinklers are installed at fencing, scaolding, mixing sheds, and tower crane locations, equipped with mist cannons,water trucks, and poable dust prevention devices to establish a comprehensive and multi-level dust control system.According to pollution weather response notications issued by government depaments, the sprinkler system isactivated at specied inteals throughout the day to reduce dust.Monitoring points are set up for the main sprinkler systems of each project, utilizing wireless sensor technology and laserdust testing equipment to monitor PM2.5 levels online. The sprinkler system is activated in real-time when PM2.5 levelsexceed 75μg/m?, automatically spraying until PM2.5 returns to normal levels.Moar mixing operations are centralized within enclosed mixing sheds, with sprinkler systems installed around theperimeter of the shed roof.The design of discharge outlets in garbage recycling channels is optimized, with spray systems installed to prevent dustpollution.Automatic high-pressure water systems are installed at the washing bay to ensure that vehicles leaving the constructionsite are cleaned, reducing road pollution.In the operation of shopping malls under our company, we attach great impoance to the issue of kitchen fume emissionsin the catering indust. We have implemented practical and eective measures to comprehensively manage kitchen fumeemissions in the malls we operate. This includes establishing strict standards for kitchen fume emissions, regulating thedesign of kitchen fume ducts, and installing fume puriers in the catering outlets of the malls to ensure that fumes areemitted only after meeting the standards. Additionally, we have undeaken renovations on the slag bin bag dust removalsystem, replacing lter bags for the bag lter, actively improving dust removal eciency, and reducing exhaust gas emissions.
●Exhaust Gas Emission Management
In the real estate business, construction exhaust gases and dust are common pollutants during the constructionprocess, which can have a ceain impact on the surrounding environment and human health. We have implementeda series of proactive measures to manage and control the emissions of construction exhaust gases and dust duringproject construction:
Exhaust Gas Management
Dust Management
·
··
··
····
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●Waste Discharge Management
We implement measures for classied management of household waste, mall waste, as well as general and hazardouswaste generated during paper mill operations and real estate construction projects, aiming to minimize waste generationand discharge. Additionally, we have developed comprehensive emergency plans such as the "Comprehensive EmergencyPlan for Sudden Environmental Incidents" and the "Special Emergency Plan for Sudden Environmental Incidents ofHazardous Waste," and actively conduct emergency drills for sudden environmental incidents. These drills focus onemergencies such as hazardous chemical spills and waste oil leaks, aiming to prevent and mitigate the harm caused bysudden environmental incidents, and safeguard public health and environmental safety.
Our company's production factories actively car out projects to upgrade sewage treatment pump stations, alongwith constructing anaerobic tanks and suppoing facilities, aiming to enhance sewage treatment capacity and reducewastewater discharge. Additionally, we utilize grease traps to purify and treat kitchen wastewater generated by the mallsoperated under our company, ensuring that the wastewater meets the required standards before discharge.
●Wastewater Discharge ManagementIn the real estate business, we have implemented strict measures for wastewater discharge management during projectconstruction, ensuring ecient treatment and environmentally friendly discharge of wastewater.
Each project site is equipped with three-stage sedimentation discharge facilities, with sedimentation tanksinstalled at the front of mixers, concrete conveying pumps, and cleaning areas for transpoation vehicles.Sediments in the tanks are regularly removed.
Tempora roads and material storage areas on site are planned with drainage ditches to control sewageow. Sewage is directed into municipal sewage pipelines after sedimentation to prevent constructionsewage from directly entering municipal sewage pipelines or polluting the environment.
Toilets in living areas are equipped with septic tanks. Sewage is decomposed and settled before beingdischarged into municipal sewage pipelines through on-site pipelines, and regular cleaning is conductedusing cleaning vehicles.
Ecient sewage discharge systems are established on construction sites to ensure separate use ofrainwater and sewage networks. It is strictly prohibited to discharge non-rainwater into municipalrainwater pipelines.
Cafeterias in living areas are equipped with grease traps. Oil residues are treated through sedimentationand grease separation before being discharged into municipal sewage pipelines. Food residue bins areprovided to handle food residues properly, and it is strictly prohibited for food residues to ow intomunicipal pipelines.
Special storage rooms and ground sealing measures are implemented to strengthen the management ofoil and chemical storage on site, and arbitra dumping of oil is strictly prohibited to ensure that water andsoil resources are not polluted.
Establish dedicated tempora storage sites for waste and store them separately, especially those that may causeseconda pollution. Implement safety precautions and prominent signage.Set up enclosed garbage stations on construction sites for timely soing and recycling of waste materials. Specialliving and oce areas are equipped with designated waste recycling stations, cleaned daily by assigned personnel.Sign environmental agreements with local waste disposal centers for timely disposal of construction and householdwaste.Immediately cover non-toxic and harmless waste such as construction leftovers with soil and regularly remove them.Classify recyclable waste and store it properly in designated bins or containers, managed centrally by warehouseadministrators.Non-recyclable waste should be piled up at designated locations for timely removal.Ensure no littering or mixing of waste during transpoation.Transpo toxic and hazardous waste to specialized centers for disposal.Prohibit the melting of asphalt or burning of waste materials containing toxic and harmful substances onconstruction sites.
Fixed garbage collection points are set up within the community, equipped with clearly labeled and color-coded waste soing containers to ensure residents dispose of garbage correctly. Hazardous waste collectionbins are also treated to prevent leakage, avoiding seconda pollution. Propey management is responsible forcoordinating and managing various aspects of community household waste classication, including collection,transpoation, and disposal. In oce buildings, garbage soing bins are placed in pantries and elevator lobbiesto encourage employees to actively paicipate in and correctly car out waste soing.Household
Waste
MallWaste
Paper MillWaste
ConstructionWaste
We use classied garbage bins to so and store waste, and have signed waste removal contracts with waste disposalcompanies to ensure compliant handling of building waste.
During the pulp and paper production process, we have established a "Responsibility System for Prevention andControl of Hazardous Waste Pollution" to strengthen the management of the entire process of solid waste generation,storage, utilization, and disposal. Hazardous waste is entrusted to qualied companies for disposal. General solid wastesuch as y ash, slag, and desulfurization gypsum are utilized as raw materials by building material companies. Papermill waste is utilized as raw materials for comprehensive utilization projects of paper mill waste. Waste plastics, wastepulp, and waste metals are sold as production raw materials externally. Unusable bottom slag and sludge are entrustedto qualied companies for incineration. Additionally, a small amount of sludge is co-red with coal in the company'sboilers for fuel utilization.
·········
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Water Resources ManagementWe prioritize water resource management, adhering to relevant laws and regulationsconcerning water resource protection, and recognizing the signicant impact ofwater consumption on the environment. Throughout our operations, we optimizewater resource management measures to enhance water use eciency, reduce waterconsumption intensity, and ensure the sustainable utilization of water resources.Additionally, we encourage our employees and stakeholders to cultivate a senseof responsible water use, collectively contributing to water resource conseationeos. In 2023, all production-oriented enterprises under our company achievedtheir annual targets for water consumption per unit of product.
●Noise Pollution ManagementWe actively implement corresponding measures to control the noise generated at construction sites, ensuring that noisemanagement complies with the standards and requirements set by national and regional regulations.
For high-noise equipment such as mixers, we install enclosed soundproof enclosures to mitigate noise.During the interior decoration phase of commercial complexes and small businesses, we implement fullyenclosed construction practices.
Prior to conducting cutting, vibration, or other noisy construction activities in densely populated residential andcommercial areas, we not only obtain the necessa approvals but also inform nearby residents and businesses about theplanned operations, their potential impacts, and the measures taken to mitigate noise.
Depending on the specic circumstances of nearby schools, hospitals, residential areas, and other facilities, we scheduleconstruction activities during reasonable time periods and prohibit nighttime construction. In case of exceptionalcircumstances requiring nighttime construction, we obtain the necessa permits and inform nearby community residents.
In 2023, all production-orientedenterprises under our companyachieved their annual targets for waterconsumption per unit of product.
In our real estate business, we integrate the concept of sponge cities into theplanning and construction processes of residential projects. Through techniquessuch as rain gardens, sunken green spaces, rainwater storage and reusesystems, permeable paving, and vegetated swales, we eectively manage on-site stormwater runo, reduce pressure on stormwater networks, and mitigatesuace pollution. During the pre-application phase for construction projectplanning permits, we thoroughly discuss and rene the sponge city constructionimplementation plan and develop detailed management strategies to ensuresmooth project progress. In the design phase, we closely integrate buildingand landscape design schemes with factors such as rainwater collection andutilization, roof greening ratio, green space sinking ratio, permeable suace ratio,low-impact development indicators for roads, rainwater runo pollution and totalruno control, and delineation and protection of water systems. Our constructionprojects respect the original terrain and landforms, prioritizing the design ofsunken and sunken green spaces, rational plant allocation, and the installation ofrainwater storage facilities. We also develop rainwater collection and utilizationfacilities, guiding rainwater from hardened areas such as roofs and roads intosponge facilities through measures such as rainwater pipe connections andveical optimization, comprehensively utilizing rainwater resources.
We completed the construction of
new sponge city projectwith an area of6,000
square meters
We utilized
1.78
million tonsof reclaimed water for pulp andpaper production,reducing the consumption offreshwater resources.
bringing the total number ofcompleted sponge city projects to
with a total area of561,000
square meters
In our pulp and paper production business, we have established a water-saving management system and formed a water-saving leadership teamto oversee water-saving initiatives. Each year, we develop water-savingtargets for various depaments and implement corresponding measures.We set advanced, reasonable, and feasible water consumption quotas,conduct regular assessments to prevent water loss and waste, and activelypromote relevant laws, regulations, and policies on water conseation toraise awareness among employees. We strive to reuse wastewater wheneverpossible, utilizing reclaimed water for activities such as wheel cleaning anddust suppression on-site. In 2023, we utilized 1.78 million tons of reclaimedwater for pulp and paper production, reducing the consumption of freshwaterresources.
At our construction sites, we implement measures to protect groundwater resources by strictly prohibiting the drilling of wellsand extraction of groundwater. We ensure that water used for production and daily activities on construction sites is obtainedfrom water-saving appliances, such as water-saving ush tanks and low-ow faucets in washrooms. Clear signs indicatingwater conseation measures are installed at water sources. We regularly collect water usage data from construction sites,establish water-saving statistics accounts, analyze and compare them to enhance water conseation rates. Routine inspections,maintenance, and replacement of all water supply valves at construction sites are conducted to prevent any leakage or wastageof water.
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To make papermaking more environmentally friendly, our investment in Yongfeng Pulp and Paper achieves an 85%water recycling rate. Wastewater undergoes three-stage biochemical treatment, complying with the latest nationalpollution discharge standards. The emission standards for Yongfeng Pulp and Paper far exceed national cleanlinessstandards, reaching the level two standard of clean production in the international pulp and paper indust.
In the project planning and design process, we adhere to the concept of integrating ecological environmentalprotection and actively car out biodiversity conseation work. In 2023, we successfully protected several ancienttrees in Xiamen, Fuzhou, Chengdu, Nanning, Zhangzhou, Yong'an, and other places, promoting the harmoniouscoexistence of cities and nature. In the project site of Xiamen C&D Wuyuan Bay Sea, two hundred-year-old ancientbanyan trees stand tall, witnessing the passage of time and caring rich cultural memories. In order to fully protectand respect these two ancient banyan trees and their surrounding ecological environment, our landscape design teamcarefully planned the design of the Banyan Shade Pavilion under the banyan tree. The banyan shade surrounding theancient banyan tree endows the space with spirituality and vitality. Combining with the atrium bay sea living room, adouble-layer landscape interactive experience area is created to achieve harmonious coexistence between the projectand nature.
In 2023, our company's aliated Lianfa Group activelyorganized a tree planting volunteer activity duringthe Arbor Day. Over 70 volunteers from the companywent to Xiamen Institute of Software Technologyand planted the "Lianfa Volunteer Forest." Throughhands-on paicipation, employees gained a deeperunderstanding of the impoance of environmentalprotection, enhanced their awareness of ecologicalcivilization, and cultivated a sense of environmentalresponsibility and action.
Biodiversity Conseation
We value ecological and biodiversity conseation, avoiding conducting business activities unrelated to ecological protection inimpoant ecological conseation areas and their vicinity. Meanwhile, we encourage our subsidiaries and stakeholders not tolocate oces or business premises within natural resees, refrain from using rare plants and animals as raw materials, abstainfrom conducting animal experiments with rare animals, and strive to minimize adverse impacts on the ecological environment andbiodiversity in our business development.
Choice of Purity": All-Bamboo Pulp Natural Color Paper
Protection of Ancient Banyan Trees
Tree Planting Volunteer ActivityAdjust the opening and closing times of landscape water features to only operate on holidays, andredirect the saved water resources for surrounding greene irrigation, saving approximately 175 tons ofwater per month.Optimize and replace the faucets used for cleaning purposes to reduce water output, set up water-savingreminders, saving approximately 170 tons of water per month.Implement high-eciency seconda water purication equipment to reduce wastewater discharge,saving approximately 150 tons of water per month.Replace greene irrigation equipment and change the original manual irrigation method to automaticsprinkler irrigation to reduce manual waste, improve irrigation uniformity, saving approximately 140 tonsof water per month.
In oce premises, we require employees to handle water appliances with care, prohibiting rough usage to preventdamage. Employees are encouraged to minimize water usage by reducing water volume and shoening usage time.Water-saving signs are posted in public areas to eliminate serious waste phenomena like continuous or unnecessawater ow. Encouraging the use of personal water bottles during meetings and providing cups and water pitchers inmeeting rooms to reduce unnecessa consumption of bottled water. In 2023, C&D Propey actively promoted water-saving measures, achieving ecient utilization of water resources:
In the operation of our shopping malls under the company, water faucets are equipped with foamers to eectivelyreduce water consumption. Water-saving signs are posted in public areas to enhance water-saving awareness andregulate water usage behavior.
Highlight
Highlight
Highlight
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●Aluminum Scrap Recycling
●Waste Paper Recycling
●Waste Resource Recycling
Resource Utilization andCircular EconomyWe actively promote green circular economy initiatives, aiming to enhance resource utilization eciency and minimize carbonemissions across the entire lifecycle of materials and products. By strategically positioning ourselves in the new energy sector,we vigorously expand operations in the upstream and downstream supply chains of the new energy indust. We provide seicesolutions for various segments of the new energy indust chain, thus contributing to the development of a green, low-carboncircular economic system and mitigating climate change.
Implementation of Circular Economy PracticesThe development of a circular economy to promote green economic growth and climate goals has become a consensus andinevitable trend for global economic development. We actively respond to the global temperature control goals of the ParisAgreement by conducting green circular economy businesses, improving resource utilization eciency, and minimizing carbonemissions throughout the entire lifecycle of materials and products. Our goal is to contribute to mitigating climate change andfacilitating the construction of a green, low-carbon, and circular human society.
Promoting the overall low-carbon transformation of the aluminum indust chainhas become the consensus of the global aluminum indust. Aluminum recyclingenables the reduction of waste emissions and the consumption of energy andresources, and eectively lessens greenhouse gas emissions from the aluminumindust chain, which is of great signicance to environmental protection. Byleveraging our professional expeise in international trade, we actively expandour business in recycling and processing of scrap aluminum, contributing to thedevelopment of the circular economy. In 2023, we recycled a total of 39,000 tonsof recycled aluminum and aluminum alloy ingots, with approximately 33,000 tonsimpoed to China.
We actively engage in paper recycling business, utilizing waste paperto produce various types of paper such as coated paper and kraftcardboard, eectively saving the use of natural resources like wood.For the waste pulp generated during the production process, werecycle all of it, replacing prima materials and reducing resourcewaste. In 2023, we recycled a total of 350,000 tons of waste paper,reducing deforestation by approximately 210 square kilometers.
Through providing high-quality seices with the LIFT supply chain,we have established long-term strategic panerships with severalbiodiesel and waste oil rening plants in China, enabling comprehensiverecycling and utilization of waste resources such as waste cooking oiland sewage oil. On one hand, we actively promote solutions to theissue of sewage oil, aiming to eliminate its return to dining tables andcreate a healthier living environment. On the other hand, we seekenvironmentally friendly and eective alternative energy sources toaddress the depletion of fossil fuels and reduce exhaust emissions.In 2023, we expoed 200,000 tons of industrial-grade mixed oil,250,000 tons of rst-generation biodiesel, and 20,000 tons of second-generation biodiesel.
●Scrap Steel RecyclingWe focus on the resource utilization of scrap steel, actively engaging in key nodes ofthe steel recycling indust chain to address the challenges of scattered, disordered,and poor-quality scrap steel supply chains. Our goal is to provide steel mills withstable, safe, and reliable scrap steel resources to meet their raw material needs. Wehave strategically panered with major steel mills in key regions across the countand have planned and constructed scrap steel industrial bases in Benxi, Lanzhou,Baotou, Tianjin, and Tangshan. These bases integrate settlement, warehousing,processing, and distribution facilities, forming a comprehensive scrap steel recyclingnetwork with an annual processing capacity of 3.5 million tons. We supply stable,safe, and reliable scrap steel resources to surrounding steel mills such as BenxiSteel, Baosteel, and Shougang, thereby assisting indust paners in improvingthe utilization rate of recycled scrap steel resources and promoting the green andlow-carbon development of the steel indust. In 2023, we recycled approximately470,000 tons of scrap steel resources.
We recycledapproximately470,000
tonsof scrap steel resources
We recycled a total of39,000
tonsof recycled aluminumand aluminum alloy ingots,with approximately33,000
tonsimpoed to China.
We recycled a total of350,000
tonsof waste paper,reducing deforestationby approximately
square kilometers
We expoed200,000
tonsof industrial-grade mixed oil,reducing deforestation250,000
tonsof rst-generation biodiesel, and20,000
tonsof second-generation biodiesel.
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●Distributed Photovoltaic Power Stations
Investment in New Energy Industries
We actively respond to the national "dual carbon" and "dual reduction" policies, continuously investing in green industries. Over theyears, we have focused on the wind and photovoltaic industries, leveraging our mature supply chain management capabilities. Byutilizing nancial derivatives and other tools, we integrate various resources along the industrial chain to provide full-cycle supplychain seices to our industrial clients. We continuously innovate in areas such as solar photovoltaic power station developmentand new energy vehicle sales, exploring deeper international cooperation and exchange models in the supply chain operationbusiness. This promotes the high-quality and sustainable development of our company's business, while providing global customerswith high-quality, cost-eective products and diverse customized, ecient, and reliable supply chain solutions. We contribute toaccelerating the global green energy transformation and upgrade.
In the eld of photovoltaic power stations, we have formed a professional team, integrated internal andexternal resources, and collaborated with industrial parks, automobile cities, and large industrial andcommercial enterprises. We are based in the Jiangsu, Zhejiang, Shanghai, and Fujian regions and steadilyexpanding our presence domestically. We have invested in and constructed high-quality distributedphotovoltaic power station projects in multiple regions including Jiangsu, Shanghai, Fujian, and Henan.By the end of 2023, we had built 14 distributed photovoltaic power stations with a total connectedcapacity exceeding 18 MW. These stations were designed to generate an annual output of over20,550,000 kWh, resulting in the reduction of 16,237 tons of carbon dioxide emissions and saving 6,701tons of standard coal. Continuously providing enterprises with safe, green, low-cost, and sustainableclean energy, we have achieved a win-win situation in terms of both economic and ecological benets.In 2023, our investment in green and low-carbon industries such as photovoltaic power stationsamounted to 29.1 million RMB.
In 2023, our investment in the Xiamen Jiyuan 2.6MW distributedphotovoltaic power generation project is located on the roof of theXiamen Jiyuan Enterprise. The project utilizes a total area of 20,000square meters of facto roof space, with the installation of 4,774high-eciency photovoltaic modules. The project's electricitygeneration capacity can reach 3.12 million kilowatt-hours annually,saving approximately 1,017.1 tons of standard coal per year andreducing carbon dioxide emissions by about 2,464.7 tons.
In 2023, our company invested in the rst phase of the 1.8MW BIPV (Building Integrated Photovoltaics) project at Mingren Pharmaceutical in Henan.Adopting a self-consumption model with surplus electricity fed into the grid, the designed operational period after grid connection can achieve anaverage annual electricity generation of 1.94 million kWh. This project can save approximately 633.7 tons of standard coal annually, reducing carbondioxide emissions by about 1,535.7 tons per year.
our investment in greenand low-carbon industriessuch as photovoltaic powerstations amounted to
29.1
Saving approximately1,017.1
tonsof standard coal per year
Saving approximately
633.7
tonsof standard coal per yearReducing carbon dioxide emissions1,535.7
tons
Reducing carbon dioxide emissions2,464.7
tons
Highlight
Fujian Xiamen-Jiyuan 2.6MW Project
Henan Jiaozuo - Mingren Pharmaceutical 1.8MW BIPV Project
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HighlightHighlight
In 2023, our Jiangsu Suzhou - Kingswood 1.5MW Project is located in the Xiangcheng District. Utilizing the factorypremises of Suzhou Kingswood Education, the project installs a total of 1.5MW photovoltaic power generation systemwith a construction area of 17,000 square meters. After the grid connection, it is expected to generate an average annualelectricity of 1.59 million kWh over the 25-year design and operation period. The project will adopt a "self-use" mode,with 95% of the generated electricity consumed by the owner unit. It is estimated to save about 518.3 tons of standardcoal and reduce carbon dioxide emissions by about 1,256.1 tons annually.
Ningbo Yaojiang Shopping Mall has constructed a photovoltaic power station in the idle areas of the podium andtower roofs, with a total construction area of 1,400 square meters and an installed capacity of approximately 265 kW;Quzhou Aiqinhai has installed a solar photovoltaic system in the idle areas of the roof, with a total area of 1,600 squaremeters. The propoion of renewable energy provided by the photovoltaic system can reach 2%, and two roof-mountedair-cooled heat pumps provide heating and cooling to the internal theater of the shopping mall, achieving an energyeciency improvement rate of 19.67%. In the residential construction eld, Shenzhen Zhenzhu Yaju project plans toinstall a 6.97 kW solar photovoltaic system to meet its 697.2 kW utility electricity demand, and is expected to achievethe actual application of solar power generation systems by 2025; the residential pa of Xi'an Yuechunshan projectuses rooftop solar hot water systems, while commercial and suppoing facilities adopt photovoltaic power generationtechnology.
The 1.5MW distributed photovoltaic project weinvested in is located on the roof of the C&DInternational Automobile City, a subsidia of C&DAutomobile, in Xiang'an District, Xiamen. After theproject is grid-connected, coupled with energystorage equipment, the average annual electricitygeneration can reach 1.8 million kilowatt-hoursduring the design and operation period. Thistranslates to an annual saving of approximately
586.8 tons of standard coal and a reduction of
about 1,422 tons of carbon dioxide emissions.
Fujian Xiamen - Xiang'an 1.5MW ProjectMacalline Photovoltaic Power Station
Jiangsu Suzhou - Kingswood 1.5MW Project
The average annual electricity generation can reach
1.8
million kilowatt-hoursduring the design and operation period
An annual saving of approximately
586.8
tonsof standard coal
Save about
518.3
tonsof standard coalReduce carbon dioxideemissions by about1,256.1
tonsannually
A reduction of about1,422
tonsof carbon dioxide emissions
Ningbo YaojiangHome FurnishingShopping MallRooftop PhotovoltaicPower Station
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Highlight
● The Lithium Batte Business
Resource Recycling
In our office, we advocate for the use of paperless office systems toreduce paper consumption and ink usage while simplifying officeprocesses and improving eciency. We actively promote black and whiteprinting and double-sided printing, and have established dedicated binsfor recycling paper, encouraging employees to use recycled paper. Ourpropey management regularly inspects communal areas such as ocesand meeting rooms, recycling and redistributing reusable oce suppliesto promote resource reuse. We conduct regular warehouse inventories,repairing and repackaging old or damaged items that are still usablefor reintegration into our operations. For items with low utilization orthat are idle, we consider donating them to charity or using them foremployee activities to increase their utility.
"Lianfa Cloud Store Mini Program" sees as the ocial designated online marketing platform for Lianfa Group. Throughits systematic online platform construction and functional suppo, it eectively saves or replaces the consumption oftraditional oine promotional materials for project marketing, including printed materials such as paper posters, projectbrochures, and oor plans.
In the lithium batte sector, we collaborate with several leading enterprises across the indust's upstream anddownstream sectors. We establish a comprehensive seice layout covering the entire indust chain, from overseas rawmaterials to processing plants and then to batte production. Tailoring to the diverse needs of customers along theindust chain, we oer professional supply chain seices for lithium batte materials such as cobalt sulfate, cobalthydroxide, cobalt oxide, lithium carbonate, and others.
●
The New Energy Vehicle Business
In the eld of new energy vehicles, we have been deepening our cooperation with leading or emerging enterprisesin the market in recent years. We invest in and build 4S stores or provide brand after-sales seices for new energybrands such as Lotus, sma, AVATR, Dongfeng Mengshi, ZEEKR, and Galaxy, aiming to provide consumers with lower-carbon and higher-quality travel seices. At the same time, we have established a heavy-duty truck batte swappingstation in Zhangzhou, and reached supply chain cooperation with companies like DST and Geely Commercial Vehicle.We are actively exploring business oppounities in new energy commercial vehicles to suppo the transformation anddevelopment of commercial vehicles towards new energy.We established a joint venture company to engage in new energy logistics business, using pure electric heavy-dutytrucks as the transpoation carrier, replacing diesel trucks in specic transpoation scenarios. During the repoingperiod, we have cumulatively transpoed goods using pure electric heavy-duty trucks for over 1.15 million kilometers.After deducting the emission factors of electricity, it is estimated to have reduced carbon dioxide emissions by over200 tons. In the future, if clean energy generation is introduced to supplement power, the carbon reduction ratio isexpected to fuher increase.
Green Marketing
●Empty Bottle Recycling ProgramIn 2023, our company ocially launched the C&D Zunyaempty bottle recycling program under our proprietaliquor brand. This initiative allows consumers to returntheir used Zunya bottles to Happywine in exchangefor incentives, promoting repeat purchases. Uponreceiving the empty bottles, the company sterilizesand repurposes them into tea canisters, contributingto waste reduction and promoting the concept of acircular economy. Additionally, we collaborated withour in-house digital platform, C&D E-learning, topromote tips for low-carbon living in daily work and lifethrough online channels and oce elevator displays.The campaign successfully collected over 1,000 emptybottles and reached an audience of 10,000 throughtargeted promotional posters.Collected over
1,000
empty bottles
Reached an audience of10,000through targeted promotional posters
Social Performance Targets in 2023
CompletionStatus
Active community dialogues are conducted, and the proportion of local communitycommunication initiatives organized annually stands at 100%.2The annual ratio of locally hired employees should not be less than 60%.
The annual number of volunta activities conducted should not be fewer than250, with a minimum of 3,000 volunteer seice hours provided.
Construct a supply chain risk management framework, identify and assess supplychain risks, and formulate eective response strategies.
The number of punitive incidents related to the health and safety impact ofproducts and seices should be zero.
The average annual training hours provided to employees should not be less than10 hours per person.7The number of extraordina major accidents or major accidents should be zero.8The moality rate for general accidents should be zero.
100% of subordinate production enterprises should obtain the ISO 45001Occupational Health and Safety Management System Ceication.10Safety training organized during the year covers 100% of the employees.
CSR/ESG requirements are gradually being integrated into supplier admissioncriteria.Completed In progress Unnished
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`
Highlight
Rural Revitalization and Public Seice
We consistently adhere to the mission of "To exploit new value for more people to live a superior life," following internationalstandards and norms such as "The Ten Principles of the UN Global Compact." We have formulated a "Community Policy" to activelyintegrate into the overall development of the count and localities, focusing on the co-prosperity and symbiosis of people andsociety. We actively fulll the mission of state-owned enterprises in rural revitalization, ensuring supply and stable prices, culturalpreseation, caring for children, and social welfare. We integrate the United Nations Sustainable Development Goals such as nopovey, quality education, decent work and economic growth, sustainable cities and communities into our corporate productionand operations. We are committed to promoting the establishment of mutually beneficial and symbiotic relationships with thecommunities in which we operate during the business development process, enabling the growth of our enterprises to resonate withurban development.
The issues concerning agriculture, rural areas, and farmers are fundamental to the nation's economy and people's livelihoods.Comprehensive advancement of rural revitalization is a crucial task in building a strong agricultural nation in the new era. Weleverage our industrial resource advantages and actively implement industry support policies to explore the diverse value ofrural areas, promote the upgrading of rural industries, and contribute to the comprehensive advancement of the national ruralrevitalization policy.
Promote Viuous Deeds and Revitalize Rural Areas
In 2006, we invested in Muchuan County, Sichuan Province to establish Yongfeng Pulpand Paper. We built an advanced production line capable of producing 450,000 tonsof bamboo pulp and paper annually, accounting for approximately 30% of the nationalbamboo pulp production capacity. Yongfeng Pulp and Paper holds a leading positionin terms of production scale, technological processes, and product quality in the eldof bamboo pulp papermaking, making it an impoant supplier in China and evenglobally. One mu (about 0.067 hectares) of bamboo forest can produce one ton of Omeimountain bamboo. One ton of Omei mountain bamboo can bring several hundred RMBof net income to bamboo farmers. Omei mountain bamboo regenerates eve yearand matures annually. Yongfeng Pulp and Paper adheres to purchasing raw bamboomanually haested by bamboo farmers, thus promoting local economic development.
"Bamboo pulp paper" from Muchuan County
Currently, Yongfeng Pulp and Paper's annual sales revenue exceeds 1.9 billion RMB, with over 800 employees. It contributes approximately50 million RMB in tax revenue annually and directly employs over 13,000 people, It also promotes the coordinated development of localtranspoation, energy, manufacturing, tourism, and other industries in Muchuan, as well as the gradual return of young labor force. Tosome extent, it addresses social issues such as left-behind elderly and children in rural areas. In July 2018, Muchuan County was removedfrom the povey-stricken county list, becoming the rst county in Leshan City, Sichuan Province to "shake o povey," and Yongfeng Pulpand Paper was honored with the title of "Provincial Povey Alleviation Leading Enterprise" as a result.
Built an advanced production linecapable of producing450,000
tons
of bamboo pulp
Yongfeng Pulp and Paper's annualsales revenue exceeds
1.9
billion RMB
Employeesover
Total taxpayment
million RMB
accounting for approximately
%of the national bamboo pulp production capacity
Provincial PoveyAlleviation LeadingEnterprise
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HighlightHighlightWe have established a paired assistance relationshipwith Renshe Village in Tingxi Town, Tong'an District,Xiamen City. Our focus is on industrial revitalization,guiding Renshe Village to explore and developits own advantages. We assist in promoting theimplementation of village-level collective economicdevelopment projects, fuher revitalizing collectiveassets, enhancing the overall economic benetsof the collective, and increasing farmers' income.Through on-site investigations, we emphasizepromoting agricultural product processing andsales and have planned the "Rice Caring Care"subscription project to attract investment for ruraldevelopment.
We have conducted in-depth cooperationwith Zuogong County, Tibet, to assist in theimplementation of the Wild Walnut Oil projecton the Zuogong plateau. In this project, weprovide suppo in product development,renement of product cultural connotations,and upgrade of product packaging design.We also enhance the "Yuqulu" brand toincrease product added value, and assist inbuilding logistics, customer seice, and after-sales systems to help agricultural and specialproducts from Zuogong County reach abroader market.
"Rice Caring Care" from Renshe VillageWild Walnut Oil from Zuogong County
Due to the impacts of climate change, global food and energy security are facing severe crises and challenges. Leveraging our richexperience in supply chain operations, global network layout, specialized seice capabilities, and indust-leading risk managementsystem, we actively paicipate in China's manufacturing green transformation and upgrade. We have built a global supply chainseice system, actively integrating into the new development pattern of dual circulation, both domestically and internationally, toensure the security of the national agricultural products and energy resources supply chain.
Suppo Livelihoods with Stabilized Supply
●
Seice to Guarantee Food Supply●Seice to Ensure Resources SupplyIn the agricultural products eld, we have beencontinuously cultivating a global supply chain layoutfor many years. We have logistics nodes in key grainproduction and sales areas worldwide, including SouthAmerica, Noh America, the Black Sea, and along the"Belt and Road". By establishing long-term and stablepanerships with major shipping companies suchas Maersk, COSCO Shipping, CMA CGM, and MSC,we have built a secure and controllable internationaltrade shipping system for agricultural products. Thiseectively enhances the security level of the count'soverseas grain supply chain and ensures the securityof the agricultural products supply chain.
Staing from market demand, we are expandingchannels for high-quality resource supply in regionssuch as South America, Africa, and Central Asia. Weactively cooperate in prima industrial productioncapacities, including copper mines and lithium minesin Chile, chromium, manganese, and zinc minesin South Africa, and copper mines in Kazakhstan.Additionally, we are actively promoting cooperationin Southeast Asia for prima industrial productssuch as crude copper, alumina, ferro-nickel, and steelbillets. Our aim is to provide domestic manufacturingenterprises with a wider range of resource and energysupplies, suppoing the development of the industrialsector.
Renshe Village has now been designated as ademonstration village for rural revitalization inXiamen City and has also been selected for theprovincial-level demonstration village creation list.
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We are deeply aware that establishing mutually benecial relationships with the communities in which we operate is crucial for thesustainable development of our business. We have established proactive and eective dialogue mechanisms with local communities,with each operational site having a depament responsible for community communication. We provide stakeholders with accessiblechannels for negotiation, appeals, and consultations, ensuring that any reasonable opinions, suggestions, issues, or complaints arereceived, recorded, and promptly addressed with appropriate feedback and resolutions.In our business development, we conduct community risk assessments, engage in eective stakeholder communication, andincorporate priority issues for community development into our corporate development plans. This includes, but is not limited to,respecting and protecting the rights of local communities, indigenous peoples, cultural customs, cultural heritage, and ecologicalenvironment. We aim to paicipate in the construction of business operation sites as welcomed paners, making eve eo toreduce and mitigate the risks arising from our operations and minimize the negative impacts on the community. We adhere to theprinciple of "localization" and, in line with our "going global" strategy, prioritize the employment of local sta at our operational sites.We conduct localized recruitment initiatives targeting specic regions and schools to promote local employment. Additionally, weprioritize oppounities for local businesses in terms of raw material procurement, technical suppo, and business contracting tosuppo local economic development.
Engage in Community and Presee Cultural Heritage
In a construction project in Nanning, Guangxi, there isa nearly 400-year-old Ming and Qing dynasty ancientmansion. Such ancient buildings, which have stood thetest of time and weather, symbolize the unique culturalheritage and the longing for peaceful life among thegenerations of people in the East. To relocate the mainhall of the ancient mansion, we specically invited expesin ancient building restoration to oversee the restorationwork, making eve eo to protect the ancient dwelling.The team of restoration expes used traditional methodsfor the restoration, ensuring that eve detail, fromthe tiles to the beams and rafters, was repaired usingmaterials sourced from ancient wood, with meticulousattention to craftsmanship. The restoration work lastedfor nearly half a year, and upon completion, the overallrestoration eect was excellent, with harmonious andunied materials and a serene and rustic charm.
In real estate development projects, there are cases where ancient trees grow within the designated construction area. If these ancienttrees are preseed, it may aect the construction plans. However, if the original plans are followed, it could result in the destruction ofthe city's historical memo. Faced with the decision of whether to remove or presee the ancient trees, we choose to respect the culturalheritage of the city, prioritizing the preseation of ancient trees over the convenience of construction. This decision allows us to safeguardthe memories of the local community and uphold the historical signicance of the old city, even if it means making concessions in theconstruction process.
In the Wuyuan Bay project in Xiamen, there are two ancientbanyan trees with histories of 107 and 177 years respectively.Lush and verdant, these trees complement each other from adistance. We aim to enhance the quality of community livingthrough thoughtful design, allowing residents to experiencethe tranquility of rustling leaves amidst their busy lives. Toachieve this, we have created the Banyan Shade Pavilion,oering residents oppounities for scenic views, relaxation,socializing, open-air theater peormances, lawn activities,and connecting with nature. Through these dynamic livingspaces, we seek to raise awareness about the impoance oftree conseation.
Highlight
Protection of Ancient Dwellings
Protection of Ancient Trees
Note: This is a conceptual rendering as the project is still under construction.
The project in Huangshi, Hubei, is situated on the former siteof the Old Huangmei Cotton Facto, where three centu-old camphor trees grow. Adhering to the principle of adaptingto local conditions, we have decided to use the crown of thetrees as a reference point and design the suppo structuresto bypass the ancient trees. The design of the undergroundfacilities will also be adjusted to avoid disturbing the roots ofthese trees. This approach not only ensures their suival butalso integrates them into the design of a traditional Chinesegarden landscape, allowing them to continue bearing witnessto the "memo of Huangshi" through the changes of the pastcentu.In the "Xihu Wangyue" project in Zhangzhou, there is acentu-old banyan tree within the construction area. Inorder to protect the growth of the banyan tree and preseethe landscape, ensuring it continues to car the legacy ofthis land, our planning process involved continuous design,revision, and redesign over a period of 2 months. Ultimately,we decided to make a 15-meter concession, sacricing someland, and relocating the main entrance from the west sideto the south side. This allowed us to create a pocket parkwithin the urban area, fostering a warm and comfoableatmosphere, where visitors can feel at home as they arrive atthe gate beside the grand banyan tree.
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Children are the future of the nation and the hope of the nation. Our company has long been committed to caring for the growthof children. Through initiatives such as building the "Love Has a Future" youth public welfare brand and implementing projects like"Nourishing Youth" and "Let Your Dreams Go," we aim to safeguard the growth of children and let them feel the "C&D Warmth."
C&D Warmth Conveying to Children
●"Hand in Hand" Education Assistance
●The "Nourishing Youth" Assistance Project
In 2023, it will be the eleventh year of our friendly cooperation withXiamen Ding'an Elementa School. Over the past eleven years, wehave carried out volunteer seice activities and long-term educationassistance for students at Ding'an Elementa School with our coreconcept of "Warming Education." At the beginning of the cooperation,this school located on Zhongshan Road in Xiamen only had 12 classes,and 95% of the students were children of migrant workers from outsideXiamen. The Youth League Committee formed 12 volunteer teams, eachpairing up with one class to form a "mutual aid alliance." Over the pasteleven years, education assistance activities have seed over 6,100teachers and students paicipants, totaling over 631.5 hours and 202seice events. In 2023, two volunteer seice activities were carried out,with over 100 paicipants.
The C&D Propey Charity Foundation's "Nourishing Youth" project has beencontinuously focused on paicular groups since 2012, explicitly assistingunderprivileged children under 16, In May 2023, the company paicipated in the"Nourishing Youth" pairing assistance activity jointly organized by the DatongStreet Oce of Tong'an District and the Xiamen Charity Federation, providingassistance to nearly 100 students from Tong'an District and Huli District. As of2023, the "Nourishing Youth" project has cumulatively provided assistance tonearly 200 underprivileged children.
Conduct various themed classmeetings, such as scienceknowledge, environmentalprotection, and patriotic education,to engage students in diverseeducational topics and activities.
Volunteer seice activities
times
the "Nourishing Youth" projecthas cumulatively providedassistance to nearly 200
underprivileged children
Over
paicipants
Collaborate with schools and localjudicial institutions to organize"Learning Law" themed educationalactivities, guiding children toenhance their safety awareness andself-protection capabilities.
Organize "Dragon Soars, JadePavilion Shines: Enjoying New Year'sDay" traditional games in schools,fuher enriching campus cultural lifeand passing on traditional Chineseculture.
2023
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●The "Let Your Dreams Go" Education Assistance Project
●Activities for Impoverished Women and Children
"Let Your Dreams Go" is a charitable education assistance project led by the Xiamen Charity Federation andimplemented by the C&D Real Estate Charity Fund. Through donations for education, the company encourages currentcandidates and students to overcome life diculties and successfully complete their studies, conveying care, givingback to others, and creating value for society. In August 2023, C&D Real Estate, in collaboration with the XiamenCharity Federation, conducted the "Let Your Dreams Go" charity assistance activity. They provided condolences to someneedy families and distributed consolation money, gifts, and inspirational books to 92 impoverished students. By theend of 2023, the "Let Your Dreams Go" project had cumulatively sponsored nearly 3,300 college students.
Lianfa Group paired up with Tulou Village in Tong'an District, Xiamen City, the Women’s Children DevelopmentFoundation of Xiamen has focused on caring for impoverished women and children for three consecutive years. Throughactivities such as home visits, donations, and school-enterprise cooperation, practical diculties of local impoverishedwomen and children have been addressed.
The "Connected Hea and Drawn Dreams" School-Enterprise Cooperation Activity with Xinmei Central Prima School in Tulou Village.
the "Let Your Dreams Go" project hadcumulatively sponsored nearly
3,300college students
We continue to explore models of community-business collaboration by working hand in hand with our local community. Throughvolunteer seice activities closely related to residents' lives, such as creating a civilized and clean environment and conductingcaring visits, we actively practice social responsibility. In 2023, we initiated the "Global Charity Action Plan" initiative and developedthe LIFT Volunteer Action Mini Program. We have conducted more than 280 public welfare activities, with over 8,800 volunteerpaicipants and a cumulative volunteer seice duration exceeding 3,400 hours.
Go Beyond in Social Welfare
●Community Elderly Care Activities
Our volunteer seice team organizes community elderly careactivities during holidays such as World Environment Day,Double Ninth Festival, and Chinese New Year. For example,we conduct "Company's Festival · Chinese New Year" caringvisits, bringing rice, noodles, grains, and cooking oil as gifts,and visiting elderly individuals in the community who areunder the care of the community, those who are widowed,living alone, or from disadvantaged families. During theDouble Ninth Festival, we deliver carefully prepared giftsand holiday blessings to the elderly in the community facingdiculties.
Public welfare activities
times
Volunteer over
8,800
paicipants
Cumulative volunteer seice duration exceeding
3,400
hours
2023
2023
By the end of
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●Progress Together, Go Beyond" Volunteering Seice
Our pay member volunteer seice team, in collaboration with the Jinjiting Community in Xiamen, organized the"Love and Progress, Endless Vitality" Volunteering Seice. Activities included free medical consultations, anti-fraudawareness campaigns, waste soing workshops, and paired assistance and condolence visits. We also invited pairedassistance groups from the Jinjiting Community to enjoy a private screening of the movie "Ping Pong: The Triumph" atthe cinema, enriching the spiritual and cultural lives of community residents, especially the elderly population. In 2023,we conducted over 20 joint activities with the Jinjiting Community, with over 500 volunteer paicipants, and providedpaired assistance to more than 80 households in need.
●"The Yellow Bracelet Campaign"
Our pay member volunteer seice team, in collaboration with public welfare organizations, conducted "The YellowBracelet Campaign – Sharing Love in Jinjiting, Warming the Heas of the Elderly" activity in the Jinjiting GardenCommunity in Xiamen, in response to the call for the "30th World Alzheimer's Day". Through various on-site activitiessuch as distributing yellow bracelets, providing medical consultations and haircuts, organizing traditional mooncakegambling games for the Mid-Autumn Festival, educating about nancial consumer protection, and promotingknowledge about waste soing, we aimed to show care and suppo to the elderly residents of the Jinjitingcommunity and raise awareness about preventing Alzheimer's disease among them.
Conducted over
joint activitieswith the Jinjiting Community
Volunteer over
paicipants
Provided paired assistance to more than
householdsin need
Innovation-Driven, Suppliers, andCustomersAs a leading international supply chain operator and an outstanding real estate operator in China, we adhere to the brandphilosophy of "Together Go Beyond." Founded on professionalism and sta from "mutual benet", we seek improvement internallywhile continuously empowering external indust paners towards green transformation and development, and aid the supply chainin achieving green and high-quality growth.
With the growing maturity of advanced technological applications such as big data, cloud computing, aicial intelligence,the Internet of Things, blockchain, and 5G, a new round of technology revolution dominated by digitalization, networking, andintelligence is inevitable and accelerating its penetration from the consumer market to all aspects of the supply chain. We elevatetechnological empowerment to the strategic level for planning, actively innovate in digital technology applications to create a supplychain seice system with unique characteristics, enhancing our business operations. By deeply integrating digital solutions withtraditional indust development, we aim to build a sma supply chain ecosystem to empower a transformation and upgrade oftraditional industries.
Product Development and Innovation
We have launched platforms such as the"E-Inspection" remote invento managementplatform and the "CND Pricing APP" online futurespricing and trading platform, advancing businesstowards ecient online, digital, and visual operations.Currently, we have essentially achieved connectivity with futures, banks, industrial and commercial, customs data, and areprogressively advancing the digitalization and integration of supply chain transactions and customer data. Through the digitalizationof business processes and data, our supply chain seice system can eectively integrate indust information, commodity indices,corporate credit data, and design processes according to the business models of dierent commodities. We have launched internetplatforms for various industries, such as "PaperSource" and "E-Pulp," for the pulp and paper indust, "C&D Cloud Steel (E-SteelLink)" for the steel indust, "EasyAgri" customer seice platform for the agricultural products indust, an online food supply chainseice platform "E-Order" for the consumer goods indust, and digital operation solutions for the automotive indust, including aprivate domain customer digital operation solution "Yujian" platform and a "EasyDeal" Intelligent Used Car Trading Center, to providemore ecient and comprehensive seices for customers in dierent industries.
We have essentially achieved internal business dataintegration and continuously connect with upstreamand downstream customers, logistics, warehousing,capital, and credit data, and striving to build anintegrated big data ecosystem for indust linkage.
In terms of business process online transformation
In terms of data digitalization
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Market Prima
Selection
We actively practice responsible procurement by establishing a "Supplier Code of Conduct," which sets requirements in areas suchas business ethics, human rights, environment, and occupational health and safety, for all suppliers and contractors including thoseof us and our subsidiaries. Our management team is responsible for guiding and supeising the management of responsible supplychain management issues. In procurement contracts, we require paners to commit to compliance with business ethics regulations,environmental protection laws, and internationally recognized human rights standards, and pay attention to suppliers' employee workhours, living conditions, minimum wage, and situations regarding corporal/disciplina punishment. We value supplier integrity managementand advocate establishing long-term, stable, and honest cooperation with suppliers. Before commencing business, suppliers must sign an"Integrity Agreement" and a "Commitment to Honesty and Law-Abiding," pledge to comply with all applicable laws and regulations and notto request or give any nancial or other forms of kickbacks or fees to any entity or individual, and promote business in an environmentallysustainable and ethically compliant manner throughout the supply chain.
Responsible Procurement
Highlight
C&D Consumer Goods Supply Chain Online Seice Platform "E-Order"
Supplier ManagementWe implement strict supplier admission and evaluation processes to ensure all suppliers comply with our responsibleprocurement policy, including requirements on business ethics and environmental protection. We monitor supplierpeormance through regular or irregular online and oine audits and assessments to ensure compliance with the"Supplier Code of Conduct."To enhance supplier management, we have established a tiered and categorized management system for suppliers andcombined with the specic indust conditions of dierent business elds to implement dynamic re-evaluations. We andour subsidiaries have developed respective supplier classication qualication review and assessment standards basedon our indust characteristics and select suppliers with sustainable cooperation advantages to continuously improve ourresponsible and precise management of suppliers.
We strictly implement supply chain control processes, conduct due diligence on supplier admission,identify and select high-quality suppliers, and include suppliers’ environmental and quality systemconstruction into the comprehensive evaluation for admission. We focus on metrics such as facto brandrecognition, quality standards, production capacity advantages, green factories, and energy consumptionqualications. We oer extra points for admission to state-suppoed environmental projects like wastealuminum recycling.
We use the "E-Zhangxin" platform to dynamically monitor suppliers, and push daily updates on external negative information aboutsuppliers and focus on operational and judicial risks, including but not limited to issues like untrustwohiness, height restrictions, litigation,environmental penalties, etc. For suppliers with anomalies, fuher research is conducted in accordance with our control requirements toassess the actual situation of suppliers. We will timely implement checks and feedback, and issue warnings or terminating cooperationwhen appropriate.
Repo through ERP system.Conduct credit investigation and closely track changes, and repo any abnormalities in a timely manner.Comprehensive assessment based on credit management, creditworthiness, performance capability,business qualication, and other related risks.Conrmation and admission assessment of the results of the comprehensive evaluation of suppliers.OverallRatingSupplierConrmation
BusinessDeclaration
With the continuous development of the "dual circulation"economic pattern domestically and internationally, the consumergoods indust is experiencing a resurgence. To address thechallenges and diculties faced by the consumer goods supplychain operation, such as long operational chains, multiple levels,rapidly changing consumer demands, product and inventoturnover risks, "black box" logistics information leading totranspoation supeision and food traceability challenges, aswell as the higher requirements for eciency and managementlevels in business aspects like contracting, ordering, and documentcirculation due to signicantly increased transaction frequencies,we launched the "E-Order" online seice platform for consumergoods supply chains. This platform oers a digital full-processtrading solution for upstream and downstream indust chains tomeet dierent transaction scenarios. The "E-Order" platform uses internet platform information interaction technology to link brand owners andtheir downstream customers to oer seices such as product display, order processing, logistics tracking, electronic receipt, online reconciliation,and rebate inqui. The Platform breaks down barriers to commodity transaction information, integrating data across supply chain segments, andprovides a one-stop trading seice experience for purchasers.
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Wage Arrears Prevention Mechanism
We manage suppliers by grading them based on their peormance in fullling contracts and conduct comprehensive investigations intoour business operations, personnel, work conditions, product quality, seice quality, professional capabilities, and cooperative relationships.If suppliers are found engaging in commercial bribe, signicant quality issues, occupational health and safety issues, or failing to paymigrant worker wages, their peormance evaluation will be deemed unsatisfacto. For non-compliant suppliers, we will not renew orinitiate new cooperation and will require them not to paicipate in any of our tendering and procurement activities for two years from thedate of public announcement.
The contract species terms for project quality, schedule, materials, safety, management, etc. We require quality that supplier delivered tomeet national technical regulations and environmental standards. Suppliers must ensure project materials and personnel safety by insuringthe lives and propey of their own and third-pay personnel at construction sites before staing work. We strengthen project assuranceby insuring "all risks for construction projects." For safety issues of supplier/contractor employees, besides daily inspections by the projectdepament, third-pay assessments are conducted for ongoing projects using "spot inspections + accompanied by expe system," withour expes forming an accompanying expe pool and strictly follow or exceeding national standards for inspections, ranking results, andmaking announcements.SupplierInspection
Collect information from potential suppliers through channels such as publishing source searchinformation, market search, internal and external recommendations, and media.Set up inspection teams to review supplier information and conduct site visits.The inspection team, according to the inspection content for scoring assessment, lls out the "supplierinspection and evaluation form" suppliers with more than 60 points will qualify for the supplier pool.The inspection team will initiate online supplier ent applications based on the assessment. Afterapproval at all levels, the inspection team will register supplier information and prices and sign thecontracts and integrity agreements with suppliers.
SupplierRatingEntReview
SupplierSourcing
Establish a "Blacklist" System
Quality and Safety Assurance
According to the "Implementation Measures for Project Bidding," suppliers with breaches of contract, multiple safety accidents, poor internalinspection results, or ethical issues are temporarily suspended from qualication. Suppliers are evaluated monthly and feedback is provided,assessment includes the perspectives of engineering (quality, safety production, civilized construction, progress), warranty (warrantytimeliness, rectication completion rate, repair satisfaction), cooperation (site management, cost cooperation, design cooperation), andother special matters. If bid-rigging, falsication, or other deceitful actions are discovered, legal responsibilities will be pursued for those
involved, and they will be added to the supplier blacklist, with corresponding company personnel held accountable. Major quality accidentsand group complaints caused by the supplier will result in blacklisting.
Establish a coordination mechanism for migrant worker wage payment and a wage arrears prevention mechanism by project, and urgegeneral contracting units to strengthen labor employment management and properly handle disputes related to migrant worker wagepayments. A special account for migrant worker wages is set up to allocate project funds in accordance with the contract in a timely mannerand ensure timely and full payment of labor costs to the special account for migrant worker wages. We supese general contracting unitsto pay migrant worker wages on time and in full and ensure migrant workers' rights and preventing wage arrears by suppliers.
We strictly follow national, provincial, and indust-specic regulations and standards, implement the"Supplier Code of Conduct" and actively promote suppliers to fulll social responsibilities regardingsafety, environment, and employee rights, including rights protection for labor outsourcing,explicitly prohibiting child labor, opposing forced labor and discrimination, adhering to minimumwage standards, etc. All bidding suppliers are required to sign a "Commitment to Honesty andLaw-Abiding". During the bidding stage, suppliers are audited according to "bidder qualicationrequirements," to assess their qualications based on the validity, completeness, and substantiality ofbidding documents.
In real estate
operations
Macalline is committed to cooperating with domestic and foreign enterprises capable of high-standardsupply, managing and evaluating suppliers from the perspectives of image, seice, price, quality, integrity,and blacklist behavior. Suppliers must demonstrate sucient proof of supply or seice, such as successfulcases and nancial proof, and ensure no legal violations or untrustwohy records, not being blacklisted,having no major quality or business integrity issues, complying with national policies, regulations,United Nations Convention trade regulations, and meeting indust standards. For suppliers with annualframework contracts, group and regional negotiated business suppliers, top-ranked suppliers, and thosewith potential risks, third-pay institutions or internal depaments jointly conduct regular or irregularassessments through on-site evaluations and comprehensive seice quality reviews, and ensure supplierquality, seice, delive timeliness, and after-sales seice meet standards. Suppliers violating the "SupplierIntegrity Commitment" agreement, failing product and seice quality assessments and rectication,harming the company’s interests, or engaging in illegal activities will have their cooperation terminatedand be added to the blacklist.
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Supplier Training
To strengthen the collaboration within the supply chain and optimize operational eciency, we employ a variety ofmethods, including e-commerce systems, supply chain management software, and regular meetings, to discuss currentpeormance and future issues with suppliers and communicate our ESG principles. This ensures that suppliers alignwith the conduct guidelines advocated by us throughout the collaboration process.
C&D Real Estate continuously carries out engineering inspections during project construction and sales phases, and hirethird-pay inspection agencies to systematically evaluate and inspect various stages of ongoing and on-sale projects.Regular communications are held with suppliers regarding issues identied during inspections to convey our qualitymanagement and risk control requirements, ensuring timely rectication of issues.
Highlight
Highlight
Annually, we organize relevant personnel to visit brand factories for learning exchanges, study advanced productionprocesses and engage in deep communication with brands. In 2023, Macalline hosted a supplier conference thatspecically recognized suppliers who demonstrated exceptional resilience in the face of challenges, provided additionalvalue to the company, or made key contributions to specic projects. This fuher solidied the cooperative relationshipwith suppliers and motivated all suppliers to continue striving for excellence in the future, working together with thecompany towards achieving higher business objectives and long-term sustainable development.
With the deepening globalization of us and the continuous evolution of technology and market demands, the risks faced by supply chainshave become increasingly complex and variable. We proactively establish a comprehensive supply chain risk management framework toidentify and assess supply chain risks and develop eective response strategies to enhance the resilience of the supply chain for sustainabledevelopment. Our Board of Directors' Risk Control Committee is responsible for guiding and overseeing supply chain risk managementeos and have formulated the "Risk Control Committee Composition, Responsibilities, and Approval Control Methods." The CommitteeChair convenes and presides over regular quaerly meetings and irregular meetings, and oversee the approval of major commodity andlarge-scale supply chain operation transactions.
Supply Chain Risk Management
开展供应链运营业务风险防范大练兵、二级运管培训、运管沙龙交流、外部讲师专题培训等供应商风险管理培训和宣导，提升公司员工整体供应链风险管理意识。
In 2023
We revised the "Supply Chain Operation Management Regulations" and "Supply Chain OperationProcess Management Regulations," to enhance the management of compliance risks such asinternational sanctions and strengthening the assessment of creditwohiness and peormancecapabilities for signicant non-credit transactions.We strengthened key risk control and international business compliance management, enhancedaudits of business rationality and compliance, paid attention to the authenticity of businessbackgrounds and sources, and set stringent controls in the ERP system for new businesses (involvingnew clients, new varieties), to review business source documentation.The Credit Management Depament and authorized depaments evaluated credit customerrisk information collected from the E-Zhangxin platform and other online channels, to issue a"Signicant Risk Warning Letter" for clients with signicant risk anomalies. Operational units weretasked with designating personnel to promptly implement and provide feedback on risk warninginformation and "Signicant Risk Warning Letters" issued by the Credit Management Depament.We conducted supply chain operation business risk prevention drills, second-level operationmanagement training, operation management salons, external lecturer specialized training, andother supplier risk management training and advocacy to enhance overall company employeeawareness of supply chain risk management.
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We always regard product quality management as the core of its business development, committed to providing responsible products andseices. By establishing strict quality control processes, we ensure our products and seices meet the highest indust standards andethical codes, committing to the safety of its products and seices.
Product Quality Management
We adhere to the "quality rst" principle, strictly comply with nationallaws and regulations. We have established and peected systems suchas the "Project Operation System," "Project Full Cycle Guide Manual,""Design Work Standards," "Display Area Work Standards," "HandoverWork Standards," "Project Operation Inspection and EvaluationStandards," to implement a standardized quality management system.We established the "9A Delive System," and hire professional third-pay companies to conduct comprehensive inspections of projectsfrom the customer's perspective before delive. They conduct checkson promise consistency, product comfo, external acceptance andprogress, facade appearance, one-room-one-inspection, public areatakeover risk inspection and leakage prevention, appearance, hollowing/cracking special inspections to ensure high-quality product delive.C&D Real Estate, C&D Propey, and Lianfa Group under us have allbeen ceied by the ISO9001 quality management system.
Macalline has set standards for renovation projects such as the "Seven Management Standards forConstruction Sites," "Construction Site Quality Inspection Sheet," "Internal Pre-handover and ConstructionSite Handover Work Regulations," "Quality Assurance Nine Prevention Projects," "40 Exclusive Processesfor Luxu Houses," and conducts strict inspections of products to ensure that home products not onlymeet customers' aesthetic expectations but also reach the highest standards of durability and safety. Thecompany’s home renovation depament has been ceied by the ISO9001 quality management system.
Excellence in customer seice is key to winning market competition and customer loyalty. We continually enhance our customer seicesystem, committed to providing timely and comprehensive seices. Simultaneously, we actively incorporate customer feedback tocontinually improve seice processes and product quality, eectively protect customer rights and establish long-term and stable trustrelationships.
We place a high emphasis on customer satisfaction, actively conduct core customer visits, and standardizecustomer satisfaction sueys. We gradually advance customer grading, classication, and customizedseice management across our units, proactively collect seice cases, continuously optimize seiceprocesses, and peect the seice chain to ensure customer needs are met promptly. We continuallyconduct customer satisfaction sueys among upstream and downstream customers, focus on trendsin supply chain seice needs, process satisfaction diagnostics, and insights into seitization andsystematization demands. The suey covers our main business models, including domestic trade,impo/expo, and re-expo trade, employing a combination of qualitative inteiews and quantitativequestionnaires. We visit multiple strategic paners and collect questionnaires from customer depamentsresponsible for procurement, sales, nance, logistics, and documentation. Upon project completion, aroundfour core customer seice management areas—seice monitoring, demand management, standardmanagement, and guarantee management—we continually improve customer satisfaction through internalmanagement optimization, enhancement, and seice capability building.we practice the "customer-centered" and "dedicated seice to customers" business philosophy, strictlyadhere to the standards of 30-minute response, professionalized seice, and customer satisfaction.Through immediate callbacks for customer repos and repairs, regular sueys, and internal assessments,we continuously monitor and optimize seice quality. Customer research is conducted annually throughthird-pay sueys, internal milestone customer sueys, and daily instant sueys, to reach customers frommultiple perspectives to collect their opinions and suggestions and ensure continuous improvement ofproducts and seices. Third-pay research companies conduct monthly customer satisfaction sueys viaphone calls, covering 10 indicators including overall evaluation, product metrics, and seice metrics.Regarding customer complaints, a systematic complaint handling process and straightforward complaintchannels have been established. Customers can le complaints through national seice hotlines, theDiamond Club APP's online channels, customer relationship hotlines, customer ambassador WeChat,and propey consultant WeChat, among other oine channels. Upon receiving a complaint, we contactthe customer within 2 hours to formulate a plan (within 24 hours for major complaints) and resolves thecomplaint within 3 days, and conduct a satisfaction callback within 48 hours of resolution. Monthly, weanalyze complaint volumes, trends in common issues, and complaint resolution statuses, urge relevantdepaments to improve, and ensure swift and eective handling of eve customer feedback.
Customer Rights Protection
We adhere to the principles of "professionalism, eciency, quality, and integrity," with product qualitymanagement at the core, pas of our supply chain operation have been ceied by the ISO9001 qualitymanagement system, ensuring eve link from procurement to product delive meets the highest qualitystandards.In supply
chainoperations
In supplychainoperations
In real estateoperations
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In real estateoperations
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Macalline upholds a "customer-rst" seice philosophy, dedicated to providing customers withone-stop, comprehensive home solution seices. The company establishes long-term stablecustomer relationships, promotes the continuous development of the home business, and enhancesbrand reputation. The company values eve customer seice oppounity and oers professionalconsultation and design solutions before sales, quality products and considerate seices duringsales, and comprehensive after-sales suppo and assurances to satisfy eve customer need.For customer complaints, multiple channels have been established, including on-site mall reception,400 hotlines, and ocial Weibo, providing full-scale online and oine complaint acceptance. Aftercomplaint acceptance, coordination among the group, malls, and merchants ensures timely feedbackto customer appeals. All customers shopping in the mall are subject to random sueys, measuringseice experience, delive installation, product quality, and mall environment across fourdimensions to understand the comprehensive pre-sale, sale, and after-sale shopping experience.Final results are fed back to the malls for review and comparison, with each mall focusing on areasof improvement to continuously enhance reputation across various dimensions. In 2023, customersatisfaction reached 95.92%.
We place a high priority on information security protection, strictly adhere to laws and regulations such as the Cybersecurity Lawof the People's Republic of China, the Data Security Law of the People's Republic of China, and the Personal Information ProtectionLaw of the People's Republic of China. We are committed to maintaining cyber and network security by continuously enhancingour information security management system, improving our information security management level, and ensuring the security ofcorporate information. In 2023, we introduced a "Cybersecurity Management System" to fuher specify the main objectives andbasic requirements of cybersecurity work, implementing comprehensive management measures such as information system securityassurance, information content security, terminal host security, routine network maintenance, emergency handling of securityincidents, and comprehensive security awareness training for all employees. Pas of our information systems have passed level 2and 3 ceications for graded protection.
Information Security Protection
Information Security Management Structure
Our cybersecurity work leadership group oversees, guides, and supeises information security management work, led by theDeputy General Manager with the General Manager of the Digital Center as the deputy leader. This group is responsible forformulating basic information security management systems, improving the information security protection system, decision-making on signicant information security management issues, network security assurance and early warning monitoring,and organizing information security inspections and follow-up rectication supeision. Information managers or specialistsfrom subsidiaries see as cybersecurity liaisons, executes cybersecurity management regulations and measures, inspectsand repos cybersecurity risks, and implements rectications, as well as enhance employee awareness and skills in networksecurity. Annually, we set information security goals and benchmarks, assessing depament personnel through self-evaluationand superior evaluations. Subsidiaries formulate information security benchmarks aligned with their business realities,incorporating information security peormance into the annual assessment of responsible personnel. We also encourageemployees to repo any information security issues to their direct leaders or relevant depaments.In 2023, we built a network security situationawareness system, addressed over 500security threats involving more than 350terminal devices, eectively preventing virusspread within the network from infectedcomputers. We have established a networkaccess control system, enhanced accesscontrol, covered 90 remote sites, and seedover 2,600 users.
Addressed over
security threats
Involving more than
terminal devicesCovered
remote sites
Seed over2,600
users
20232023
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2023
2023
Information Security Emergency Management
Information Security Supeision and Inspection
Customer Privacy Information Protection
Information Security Education and Training
We have established the "Emergency Response and Management Measures of Network Security Incidents," creating ascientic, eective, and rapidly responsive emergency mechanism. It species the emergency response procedures forinformation security incidents that could cause signicant or major harm to the company. In such cases, the incident must berepoed immediately to the information security leadership team, and eective technical measures must be taken promptlyto address and manage the sudden information security incident. After the incident has been handled, a timely analysis andsumma are conducted to repo the causes, handling, improvement measures, and other relevant details, ensuring thatcorrective actions are implemented. We regularly organize emergency drills, including at least once a year data recoveverication and emergency drills for information systems classied under "graded protection" levels two and three, tocontinuously enhance our ability to handle information security incidents.
Our strengthens information security supeision and inspectionthrough regular network security checks and commissioningthird-pay institutions for IT audits, aiming to prevent andaddress information security risks.In 2023, we conducted 20 information system security checks,14 penetration tests, 342 vulnerability scans, identied andaddressed over 400 high-risk vulnerabilities, automaticallyintercepted over 50,000 network scanning attacks, zombiehost connections, and system vulnerability attacks, eectivelyidentied and addressed information security risks. We alsocommissioned external professional institutions to audit theeectiveness of the internal controls of information systems.
Recognizing the sensitivity and impoance of customer information, westrictly adhere to relevant laws and regulations, implementing stringentmeasures to ensure the security and condentiality of all customer data. Allnew employees undergo training related to data and company informationcondentiality, are required to strictly prohibit the disclosure of customerinformation, and sign condentiality agreements, thereby strengtheningtheir awareness and responsibility towards protecting customer privacy. Wehave developed a "Privacy Statement" in accordance with the CybersecurityLaw of the People's Republic of China, the Regulations on the SecurityProtection of Computer Information Systems, the Personal InformationProtection Law, and other applicable laws. This statement clearly denesthe scope of customer information usage and commits to storing customerinformation for the period stipulated by relevant regulations, ensuring thatcustomer data is not provided to third paies without legal circumstancesor explicit consent from relevant stakeholders.
We employ multiple channels and forms of publicity andtraining to disseminate information security knowledge amongall employees, enhance their awareness and ensure the deepunderstanding and implementation of our information securitypolicies. Through internal network postings, corporate WeChatmini-programs, and E-learning platforms, we share cases ofnetwork security incidents and personal cyber hygiene withemployees. In collaboration with C&D Group and professionalsecurity vendors, specialized training sessions on the evolutionof network security architecture and security strategies duringthe development process are provided for those directlyresponsible for our network security. We actively paicipatingin Xiamen City's Cybersecurity Week, organize extensivetraining for employees, especially those responsible for networksecurity, in cybersecurity awareness and technical skills. In 2023,we organized 6 information security education and trainingsessions.
In 2023, we conducted cyber security attack and defense drills to continuously improve our capability to handle cybersecurityemergencies. We invited attack teams from third-pay national-level cybersecurity rms to simulate real attack and defensescenarios, peorming security tests on our information systems and conducting phishing email tests on employees. Throughthese attack and defense exercises and debriengs, we objectively assessed our level of security protection, raised employees'awareness of security precautions, and eectively enhanced the overall coordination and level of our network securitydefenses.
Information system security checks
times
Information security education and training sessions
times
Penetration tests
times
Vulnerability scans
times
Identied and addressed over
high-risk vulnerabilitiesIntercepted Networkscanning attacks over
50,000
times
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Forest Stewardship
Council(FSC)
International Sustainabilityand Carbon Ceication
(ISCC)
Programme for the Endorsementof Forest Ceication
(PEFC)
We adhere to the "Regulations on the Management of Retail Promotion Activities," "Anti-Unfair Competition Law of the People’sRepublic of China," "Adveising Law of the People’s Republic of China," and other marketing-related laws and regulations in ourcount and region. We insist on honest and transparent information dissemination and communication to ensure marketingactivities truly reect product features and seice quality. In formulating marketing strategies, we always prioritize consumer needsand welfare, avoid misleading promotions, and actively advocates for environmental protection and social responsibility.
We maintain an open cooperation attitude and a commitment to sustainable development, actively paicipate in internationalenvironmental cooperation frameworks and initiatives, strengthen close cooperation with indust paners, share corporate andindust experiences and achievements, and jointly promote high-quality development in the indust.
Main Indust Associations Involved
We are committed to honest and transparent communication strategies to ensure customers accuratelyunderstand the value and characteristics of our projects. We have established "Marketing Work Standards,""Marketing Inspection and Evaluation Standards," "Marketing and Customer Relations Brand TenderingMethods," "Regulations on Clarifying Product Output Content (Trial)," and "Notices on Customer PaymentRefunds and Special Marketing Payment Requirements" to ensure the compliance of marketing activities.
According to the "MarketingInspection and EvaluationStandards," the Group's MarketDevelopment Depamentconducts quaerly complianceinspections, the results ofwhich are used in the annualassessment of marketingmanagers.
Macalline has established the "Macalline Home Group Unied Marketing Activity Management System,"created a unied public opinion management mechanism, peected the planning, execution, summa, andevaluation of marketing activity schemes, and continuously conduct compliant marketing training to ensureorderly and compliant marketing activities across all units.
Responsible Marketing
Suppo Indust Development
No.Association NamePosition
1China Federation of Logistics & PurchasingVice President Unit
Modern Supply Chain Research Institute of China Federation ofLogistics & Purchasing
Vice Director Unit3Xiamen Modern Supply Chain AssociationPresident Unit4China Chamber of Commerce for Impo and Expo of TextilesExecutive Director Unit
China Chamber of Commerce of Metals, Minerals & ChemicalsImpoers & Expoers
Director Unit
China Chamber of Commerce for Impo and Expo of Machineand Electronic Products
Director Unit7Xiamen Impo & Expo Chamber of CommerceVice President Unit8Chamber of International Commerce XiamenVice President Unit
China Chamber of Commerce for Impo and Expo of LightIndustrial Products and As-Crafts
Director Unit
Statistical Society for Foreign Economic Relations and Trade ofChina
Director Unit
China Chamber of Commerce of I/E of Foodstus, Native Produceand Animal By-products (CFNA)
Member Unit12China Propey Management InstituteDirector Unit13Fujian Province Estate Management Association
Vice President Unit
Executive Director Unit14Xiamen Propey Management AssociationVice President Unit15Integrity Promotion Association of XiamenExecutive Director Unit16Xiamen Emergency Management AssociationMember Unit
China Association of Highway and Waterway EngineeringConsultants (CAHWEC)
Executive Director Unit18The Civil Engineering and Architecture Association of FujianChair of Supeisors Unit
Each cluster independentlyintroduces third-payinstitutions to conduct salesseice undercover inspections,based on the "C&D RealEstate 2023 Sales SceneSeice Undercover InspectionIndex," adding cluster-specicrequirements for execution.
Risk warnings are placed in salesscenes, display areas, and modelrooms, and all projects displayunfavorable factors inside andoutside the red lines prominently.
Main IndustAssociations Involved
In real estate
operations
Macalline
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We rmly believe that talent is the key force driving sustainable development. Thus, we adhere to a people-oriented philosophy,focus on the growth of eve employee and strive to create a fair, just, and inclusive work environment. This ensures employees haveaccess to decent, dignied work oppounities, making talent a ceaseless driver of our sustainable growth.
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Highlight
Highlight
In September 2023, the "2023 4th China Supply Chain Management AnnualConference" and the "2023 National Supply Chain Management ExcellentAchievements Exhibition," guided by the Minist of Commerce, co-hosted bythe China Federation of Logistics & Purchasing and the People's Government ofXiamen, were held in Xiamen. We showcased its professional operations, globallayout, and dual empowerment and suppo experiences and achievements tothe attending leaders and guests in a scenario-based, immersive multimediaformat. We were awarded the "5A-level Supply Chain Seice Enterprise"ceicate during the Supply Chain Innovation and Development Conference heldsimultaneously by CFLP.
In April 2023, the "China Steel Overseas Development Forum," co-hosted byChangfuli (Xiamen) Company and Shanghai Ganglian E-commerce Company,was held in Xiamen. The forum provided in-depth interpretations of topicsrelated to the Chinese steel indust's "Overseas Steel Capacity Layout,""Overseas Mineral Resource Development," "Overseas Infrastructure SteelDemand," and "Steel International Trade Hotspots," collectively anticipatingthe oppounities for China's steel indust's overseas development.
In April 2023, the 2023 China Pulp Summit (7th Edition), organized bythe China Paper Association and hosted by Xiamen C&D Pulp & PaperGroup, was successfully held, attracting more than 600 indust leaders,entrepreneurs, economists, and academic scholars. The summit facilitatedindust exchanges, consolidated development consensus, and over six yearshas gained recognition and praise from all sides of the indust, becoming animpoant summit for promoting indust exchange.
People
We respect the “International Bill of Human Rights”, follow the “United Nations Guiding Principles on Business and Human Rights”,the “Universal Declaration of Human Rights”, and the International Labour Organization's “Declaration on Fundamental Principlesand Rights at Work”, among other internationally recognized human rights standards and guidelines. We strictly comply withnational laws and regulations to protect and suppo employee rights. To promote the implementation of human rights protection,we have established a "Human Rights Policy" and an "Anti-Discrimination and Anti-Harassment Policy," respect and protect therights of employees, suppliers, community residents, and others potentially impacted by our operations. For potential human rightsimpacts and risk areas in its operations, value chain, and new business relationships, we establish communication mechanisms withlocal communities, employees, government agencies, investors, and other stakeholders to regularly identify potential human rightsrisks, and focus on vulnerable groups. We conduct training on human rights protection for employees and contractors to ensure theimplementation of human rights policies and prevent related risks. In 2023, there were no incidents of child labor, forced labor, orhuman tracking in violation of human rights policies across the company's global operations.
Human Rights Protection
Equal Employment
We comply with “the Labor Law of the People's Republic of China”, “the Labor Contract Law of the People's Republic ofChina”, and employment laws and regulations in other countries and regions where we operate. We insist on compliantemployment, fair employment, equal pay for equal work, and commit to a minimum wage standard not lower than legalrequirements. We strictly prohibit and resist all forms of forced labor, child labor, slave, and human tracking, creatingan equal, inclusive, and diverse work environment. In various employment activities such as recruitment, placement,assessment, and promotion, we do not discriminate based on race, religion, gender, age, sexual orientation, disability,nationality, cultural background, etc., ensure equal pay, benets, and employment oppounities for female employeesand qualied disabled employees, oppose any potential employment discrimination.
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●Recruitment Management
● Exit Management
We have established human resource management regulationslike the "Human Resource Management Regulations,” to insiston compliant recruitment and set policies for avoiding conictsof interest to eliminate recruitment violations. We respectthe dignity of eve candidate, clearly dening inteiew,assessment, background check, and hire approval processes forvarious positions, make hiring decisions based on professionalqualications, personal skills, and overall quality to ensure afair and consistent recruitment process for all candidates andencourage mutual selection.
We have established exit management processes in strict accordance with legal requirements. Upon an employee'sexpression of intent to resign, we arrange for the employee's depament head, direct supeisor, and HR personnel toconduct exit inteiews to understand the reasons and demands for resignation. For high-potential talent, core businesspersonnel, or management sta, we actively coordinate internal communications for retention. Monthly employeeturnover statistics and analyses are conducted to monitor employee stability.
Anti-Harassment and Anti-BullyingWe are dedicated to fostering a diverse and inclusive work environment, eradicate any form of harassment and bullying.We prohibit any kind of violence, insult, defamation, or behavior that disrupts social order, including but not limitedto actions, speech, or practices that infringe upon others' dignity and freedom. Misuse of authority or inteerence inemployees' aairs through improper means is forbidden, with a stance against bullying and harassment, ensuring eveemployee respects individual rights and freedom while fostering a sense of belonging within the collective, enjoying adignied workplace.
■ Male■ Female
■China■ Others■Male■ Female
■Under 30■30-50■ Over 50
■Management■Business■Technical■Financial■ Administrative
38.02
%
3.21
%
4.80
%
6.19
%
18.66
%
67.14
%
61.98
%
62.94
%
7.05
%
99.88
%
0.12
%
71.44
%
28.56
%
30.01
%
·Employee Composition by Nationality··Management Composition by Gender·
·Employee Composition by Age··Employee Composition by Gender·
·Employee Composition by Function·
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Employee Complaints and Protection
Employee Compensation and Benets
Democracy and Freedom
For behaviors suspected of violating the "Anti-Discrimination and Anti-Harassment Policy," we outline channels for publiccomplaints or appeal in the "Human Resource Management Regulations." Employees are encouraged to submit complaints orappeals to the HR depament, the company union, or escalate them directly to related functional depaments or even topmanagement, with the responsible depament organizing an investigation and providing a response within ve working days.We assure that all victims or complainants' information will be protected to avoid retaliation. We safeguard the implementationof the anti-discrimination and anti-harassment policy through strengthening internal management, establish oversight bodies,publicize complaint and appeal channels, conduct eective training, and guide and standardize employee behavior to maintaina positive corporate culture and work atmosphere.
We strictly follow laws and regulations such as the Labor Law of the People's Republic of China and the Labor Contract Law, andestablish "Human Resources Management Regulations," "Compensation and Benets Management Regulations," and "Rewardsand Penalties Management Regulations" to ensure employees' working hours, including special periods for female employees(breastfeeding, pregnancy, and maternity), and work environment meet legal requirements, with sala levels not lower than theminimum wage standards mandated by laws and regulations.
We emphasize communication with employees, respect the democratic rights and freedom granted to employees by theconstitution and laws, and clarify the related basic rights employees enjoy in the "Human Resource Management Regulations."We encourage employees to express diverse opinions and ideas, contribute their wisdom to our sustainable development.We actively implement collective bargaining and mediation mechanisms, legally establish unions, regularly convene employeerepresentative assemblies, and formulate the "C&D Union Federation Management Regulations" to regulate the union'sdaily operations, ensuring employees' rights to information, paicipation, management, and supeision. In 2023, our unionrepresentatives reviewed and signed three collective contracts covering a range of employment agreements on sala systems,minimum wage, social insurance, working hours, safety production, occupational environment, and the protection of womenemployees' rights, extending the collective contract's coverage to 100% of our employees.
If you suer fromdiscrimination orharassment, or witnesssomeone else beingdiscriminated against orharassed.
File a complaint through ourunion or HR depament,or repo to our complaintacceptance email, providingrelevant evidence.
The person in charge willimmediately initiate aninvestigation and providenecessa reassurance tothe victim and their family.
If the investigationresults conrm suspecteddiscrimination orharassment, necessadisciplina measures will betaken against the involvedemployee, inaccordancewith our internal policiesand relevant laws andregulations.
We have implemented the "Compensation and Benets Management Regulations," andcommit to provide employees with competitive compensation and benets. We valuetraining and personal development, adhere to the principle of appointing the viuousand providing ample career development oppounities and learning resources. Forindividual development, we have established "professional + management" dual careerpaths, adhering to the principle of promoting the capable, rewarding the excellent,demoting the mediocre, and dismissing the incompetent, to fully stimulate organizationalvitality and provide a platform for employees to realize their personal value.
Employee Development
●Compensation Peormance
We have established a compensation structure centered on sala, supplementedby allowances, bonuses, and benets. We regularly monitor and evaluate markettrends and indust levels to review the reasonableness of compensation settings,ensuring employees are oered competitive and fair compensation and benets. Ascientic and diverse peormance evaluation system helps employees understandwork targets and expectations, evaluating their peormance, capability, andattitude during the assessment period, identifying weaknesses, and providingguidance and suppo. This aids in planned work improvement and sees asan objective basis for decisions on rewards, promotions, and appointments.Peormance assessment indicators related to sustainable development topicslike innovation, risk management, safety production, and quality improvement areintegrated into depamental and employee peormance assessments, motivatingemployees while ensuring eective implementation of sustainable developmentpolicies.
the total duration ofemployee training in our companyamounted to
2,138,972
hours
Peormance is assessed throughobjective management, settingwork targets and metrics, andevaluating and providing feedbackon outcomes.
Peormance is assessed throughbusiness evaluations, personalrepoing, democratic evaluations,and inteiews.
Management personnel
Other employees
2023
8182
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●
Equity Incentive
●Employee Benets
Through equity incentive plans, we have establishedmedium- and long-term incentive mechanisms for directors,senior management, middle management, and keypersonnel to attract and retain talent, motivating them toalign shareholder, company, and individual interests towardshigh-quality, long-term development. By the end of 2023,1,359 incentivized individuals held a total of 168,769,300restricted shares, with middle management and keypersonnel (1,349 individuals in total) holding 161,669,300shares, accounting for 96% of the incentive shares.
We care for employees' basic needs in aspects such as physical and mental health,serious illness medical care, working conditions, family care, and breastfeeding andparenting, and have established a long-term welfare plan. In addition to the statutobenefits of the "Five Insurances and One Fund," we have also set up a corporateannuity system, purchased group commercial insurance for employees (includingoverseas insurance), and provided various subsidies such as official travel, housing,remote work, communication, professional title/certification, lecturing, part-timework, management trainee, high temperature/cold weather, missed meal, holiday, andspecial position allowances (e.g., night shift). Additionally, diverse welfare benets likehealth management and union team-building activities are oered. Beyond statutoholidays, we provide employees with annual leave, marriage leave, maternity/paternityleave, accompanying leave, parenting leave, breastfeeding leave, bereavement leave,sick leave, personal leave, etc. The duration of these leaves is adjusted based on theemployee's tenure at the company and national laws and regulations to accommodatedifferent needs. Employees are encouraged to take their annual leave as perregulations, and salaries for annual leave, marriage leave, paternity leave, bereavementleave, breastfeeding leave, etc., are paid at the regular working sala rate. In 2023, thetotal duration of paid parental leave taken by employees amounted to 4,787 days.
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We provide a lactationroom for femaleemployees, equippedwith water dispensers,refrigerators, sofas, etc.
We have established a group aid fund to provide necessa economic assistance to employees (or theirspouses, children, parents, parents-in-law, etc.) and retired employees facing family difficulties due tosevere illnesses, major accidents, or severe disabilities, helping them cope with the nancial stress causedby sudden events or major diseases.
Lactation Rooms
Economic Assistance
Talent Quality Cultivation
We continuously enhance and enrich our talent cultivation system and create a proactive learningorganization. We have established an employee training system comprised of capability frameworks,course systems, instructor systems, operation systems, and learning platforms. Training content includesbasic business training, specialized training, risk prevention series training, new employee boot camps,business backbone series training, and mid-to-senior-level management training. A specialized trainingcenter is set up at our headquaers, with numerous training plans formulated to provide employees withvarious training oppounities, and enhance their professional skills, international perspectives, and riskcontrol awareness. Additionally, we organize internal competitions annually based on talent needs incritical positions and new units, and oer new career development oppounities for employees. For thosewho are unsuitable for their current positions but display good peormance and quality, HR depamentsat all levels actively seek other internal development oppounities, to ensure the right t for both positionand person and provide a platform for continuous learning and improvement.
The total duration of paidparental leave taken byemployees amounted to4,787
days
1,359 incentivized individuals held a total of
168.7693
million restricted shares
Middle management and key personnel held
161.6693
million restricted shares
Equity Incentive Grant Ratio
■Middle Management and Key Personnel
■ Directors and Senior Management
%
%
2023
8384
2023建发股份可持续发展报告About This ReportMessage from the ChairmanAbout C&D Inc.AppendixEnvironmentalSocialGovernance
Highlight
Highlight
In 2023, we launched 13 trainingsessions totaling 33 hours under the"Young Cadres Growth CommunityCheung Kong Graduate SchoolBusiness Study Class" and "LateNight Knowledge Hall," involving 67employees from the supply chainoperation business domain. The aimwas to enhance the comprehensivequality and capabilities of youngcadres, cultivating outstandingmanagement and leadership talent forour development.
In 2023, we initiated a 3-day thematiclearning project on investment/industry chain/internationalizationfor official cadres in the supply chainoperation business, with 63 employeesparticipating in learning and industryvisits at Peking University GuanghuaSchool of Management. The sho-termcourses and seminars aimed to helpemployees update their knowledge andimprove their skills.
Young Cadres Growth Community "Youth Gathering" – Cheung Kong Graduate School Business Study Class
Peking University Guanghua School of Management – C&D Management Cadre LearningProject
Highlight
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Focused on corporate culture,professional integrity, teammanagement, and role transitionthemes, this project provided 54hours of oine training for 167 newlyappointed management backbonepersonnel. It aimed to build aworkforce with a high cultural identity,good professional ethics, ecientcollaboration capabilities, and strongadaptability, thereby enhancing ouroverall competitiveness and sustainabledevelopment capability.
This training was designed toaccelerate new management trainees'understanding of our overall situationand culture, assisting in their transitionfrom "campus individuals" to "C&Dpersonnel." The project focuses oncorporate culture, product concepts,and business fundamentals, thecurriculum centered on culturalintegration through lectures, executivesharing, project visits, team-building,knowledge competitions, and more,guiding trainees to perceive and learnthe company culture.
Management Skills Enhancement Series Training Phase III Project
C&D Real Estate · Management Trainee "Flagship Employee" Training Project
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Highlight
Our "E-Learning" online training platform oers high-quality onlineeducational resources, with courses categorized by themes such asmacro trends, financial empowerment, overseas markets, industryinsights, leadership area, international exchange rates, and cutting-edge information. Employees can choose appropriate coursesbased on job requirements, rank, and personal interests for self-directed learning. By the end of 2023, the "E-Learning" platformhad launched 90 online courses, with a total of 306,218 paicipants,averaging 3,402 learners per course.
"E-Learning" Online Training Platform
"E-Learning" platform had launched
online coursesWith a total of306,218
paicipants
School-Enterprise Collaborative CooperationWe continue to deepen our relationships with educational institutions, expanding our network of cooperative colleges and universities yearby year, thereby strengthening mutual understanding, connection, and trust among us, universities, and students. We actively explore andestablish new models of school-enterprise collaboration under the perspective of integration of indust and education, creating practical,eective, and feasible new paths for talent development. Currently, we have signed school-enterprise cooperation agreements with multipleinstitutions, including Peking University, Xiamen University, Dalian Maritime University, Ocean University of China, Fuzhou University, JinanUniversity, Nankai University, Central University of Finance and Economics, and University of International Business and Economics. In 2023,to meet the development needs of key regions such as Southeast Asia, South America, Europe, and Africa, the company strengthenedits overseas recruitment channels through campus, headhunting, and website channels, suppoing units at all levels to recruit foreign orexpatriate talents. Simultaneously, we continue to accumulate overseas employment experience, continually research employment policiesand talent environments in key areas, peect the overseas employee commercial insurance system, and safeguard employees' overseasendeavors.
Highlight
Employees with an international perspectivefrom campus recruitment are crucial forsupporting our future business innovationand success. With our high degree ofopenness and economic vitality, theGuangdong-Hong Kong-Macao GreaterBay Area attracts a large pool of youngtalents. We chose Hong Kong as our firstoverseas recruitment station, where therecruitment team collected resumes fromnearly 600 students from the University ofHong Kong, Chinese University of HongKong, City University of Hong Kong, HongKong Polytechnic University, Hong KongUniversity of Science and Technology, andothers in 2023.
Hong Kong Campus Recruitment
Hong Kong Campus Recruitment
2023
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Highlight
Based on an open, inclusive, and diversified philosophy, we regularly conduct the "Lift Yourself" internship programduring the summer, open to students worldwide without restrictions on nationality or major. In this program, eachintern is paired with a mentor for one-on-one systematic training and extended activities, including capability practiceand site visits. We record, evaluate, and assess interns' performance during the internship. Quali?ed and outstandinginterns may receive campus recruitment opportunities at the end of their internship, along with the chance to becomecampus recruitment ambassadors and internal referral qualifications, plus generous referral bonuses provided by us.In 2023, students from Tsinghua University, Fudan University, Renmin University of China, Xiamen University, CentralSouth University, Beijing Foreign Studies University, Central University of Finance and Economics, and other universitiesparticipated in our program.
"Lift Yourself" Summer Internship Program
Highlight
We have established long-term cooperative relationships with domestic colleges and vocational schools, such as FujianShipbuilding Indust School, Xiamen Technician College, Fujian Water Conseancy and Electric Power Technical College,jointly advance the construction of "C&D classes," improve the evaluation methods for industrial workers' skills, andcar out vocational skill level ceication for "automobile maintenance workers" with C&D. In 2023, over 150 technicalposition interns were accepted, and more than 50 were employed. The teaching reform case developed in cooperationwith Fujian Shipbuilding Indust School—"Research and Practice of the '123' Innovative Talent Cultivation Model Basedon School-Enterprise Cooperation"—was selected as a typical case for the "Double Hundred Plan" of school-enterprisecooperation by the Chinese Society of Higher Education in 2022.
Integration of Indust and Education
"Lift Yourself" Summer Internship Program
Integration of Indust and Education
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We adhere to the policy of "safety rst, prevention-oriented, and comprehensive management," establish the concept of "safetyseice operation, and management closely follows the strategy," and prioritize production safety and employee health. Throughdiscussion, we have formulated the "Occupational Health and Safety Policy", which was approval by the Workers' Congress and theChairman of the Board. We have fuher rened and implemented internal regulations such as the " Regulations on Work SafetyManagement," " Regulations on Repoing Sudden Events and Major Matters concerning Safety and Stability," " Training Systemfor Work Safety Education," " System for Identifying and Treating Hidden Dangers," " Methods for Managing Safety in Large-scaleEvents," and " Regulations on Security Management of Overseas Institutions and Personnel." We were committed to minimizingoccupational health and safety risks in our operations and ensuring the occupational health and safety of our employees. Meanwhile,we encouraged suppliers to establish sound systems for occupational health and safety protection through the "Supplier Code ofConduct," specifying specic preventive measures to reduce the occurrence of occupational diseases or work-related accidents,and safeguarding the health and safety of our employees to ensure that they enjoy the same rights to occupational health andsafety as stipulated in the "Regulations on Work Safety Management." In 2023, we revised the " Guidelines for the Constructionof Work Safety Management System," referring to international standards such as ISO 45001 and OHSAS 18001, continuouslyimproving the occupational health and safety management system. By identifying, assessing, and managing occupational healthand safety risks in the process of business development, we established a dual preventive mechanism for graded control of safetyrisks and investigation and treatment of hidden dangers, and conducted regular reviews and supeision to continuously improveoccupational health and safety management and work standards. In 2023, our production subsidiaries obtained ISO 45001certification for occupational health and safety management system, and no personnel deaths or major work safety accidentsoccurred throughout the year.
Occupational Health and SafetySafety Management Institution
We establish a Safety Management Committee as the institution responsible for work safety management. The committeeis chaired by the CEO, with Deputy General Manager and managers of key safety units serving as vice-directors. Athree-tier safety management structure is established and tailored to the diverse nature, formats, and prima risks ofeach unit. Safety responsibilities are divided among key safety units, general safety units, and safety supeiso units,ensuring comprehensive implementation of the "all-sta work safety responsibility system" and hierarchical accountabilityfor safety. The Chairman and senior management are accountable for major accidents, and the compensation of themanagement is linked to the safety peormance of their respective units.
In 2023, we signed 1,103 safety responsibility agreementswith all safety responsibility units and 284 agreementswith outsourced units (partners, contractors, suppliers,tenants, construction contractors, etc.), achieving acoverage rate of 100%. We set occupational health andsafety management objectives in 2023 work safetyplan, conducting quarterly assessments of work safetyobjectives for each depament and repoing the resultsat safety meetings. The results of work safety assessmentswere linked to the compensation and performance ofrelevant personnel and management.
Safety Management Committee and
Permanent Oce
Safety Management Structure
Key Safety UnitsGeneral Safety UnitsSafety Supeision UnitsUnits with Prima Responsibility
Safety Site Units
We signed with all safety responsibility units
1,103
safety responsibility agreementsAchieved a coverage rate of
%
2023
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Safety Risk Prevention and ControlWe have formulated the "Work Safety Risk Classification Management and Hidden DangerInvestigation and Control System " determining and implementing graded risk control for majorhazards. To improve workplace safety and reduce injuries and accidents, we have identied gas,elevators, high-rise firefighting, and hazardous operations (such as hot work, confined spacework, work at heights, and tempora electrical work) as core risks. We have established controlsystems and management guidelines such as the "Elevator Safety Management System," "High-rise Building Fire Safety Management System," "Gas Safety Management System," and "HazardousOperations Safety Management System," and urged all units to implement them. Each of the keysafety units, in accordance with their own business characteristics, conducts hazard identicationwork. Using the LEC method, they classify risks specic to their respective business types (suchas container risks, warehouse risks, risks in automobile dealerships, etc.) and formulate controlmeasures, conducting regular training and inspections. In 2023, we hired experts from theXiamen Emergency Management Association to assist in hazard identication and control work,identifying a total of 325 hazards and formulating 864 control measures, all of which have beenposted on impoant risk notication cards.
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In the real estate business, regarding engineering emergencies, C&D Propey has formulated and continuously revised the "EngineeringEmergency Repoing and Handling Mechanism" to strengthen the management process of engineering emergencies, standardize therepoing and handling mechanism, ensure the safety of personnel and propey, reduce project operating costs, and achieve eectiveclosed-loop handling of emergencies. After an emergency occurs, each project must strictly follow the emergency response plan templatefor handling and continuously monitor the situation's development, upgrading the response as necessary. Furthermore, each projectmust strictly adhere to the repoing mechanism, with any concealment or omission subject to corresponding penalties. To ensure thatemployees are familiar with and proficient in the reporting process, each business unit leads the organization of systematic trainingsessions.
Our logistics subsidia has selected Changle Logistics Center as a pilot project to achieve automatic alarm for abnormal electricity usageby monitoring voltage, current, phase line temperature, etc. Additionally, at Yibin Logistics Center, infrared thermometers were used toassist electricians in conducting special electrical inspections in key areas. Our automotive group has completed "Smart Firefighting"construction in the Jiemei and Xiang'an districts, strengthening monitoring of water systems and fire systems through the use of IoTtechnology.
In the C&D Xi Yue project in Xiamen, C&D Propey employs sma reghting and water supply and drainage systems to ensure thecontinuous safe and efficient operation of firefighting pipelines, domestic water supply networks, and key equipment. This systemcan real-time monitor the operation data of key facilities and equipment in the project, including water tank levels, pump operationstatus, pipe network pressure, equipment room temperature and humidity, as well as the status of re alarm hosts. Additionally, throughthe intelligent early warning mechanism of this system, C&D Propey can detect abnormal situations in advance and deal with thempromptly, ensuring the normal operation of key facilities and equipment while reducing safety risks.
The C&D Xi Yue project in Xiamen has implemented a Sma Elevator Management System, which not only reduces energy consumptionbut also enhances safety management levels. This system can monitor the temperature of elevator machine rooms and remotely controlventilation fans and air conditioning as needed. Utilizing the AI capabilities of elevator cabins, it accurately identies safety hazardssuch as the ent of electric vehicles into the elevator and prolonged elevator blocking, issuing timely warnings to ensure the safety andconvenience of residents. Fuhermore, the system can detect water ooding in the elevator pit and immediately issue warnings upondetection of anomalies, eectively preventing potential risks.
Macalline is committed to improving workplace safety and continuously optimizing security management in its shopping centers. In2023, it upgraded the inspection system to version 2.0, extending coverage from originally self-operated stores to all shopping centersnationwide, with monthly regulato assessments.
Engineering Emergency Repoing and Handling Mechanism
"Sma Fireghting" Construction
"Sma Fireghting" System
Sma Elevator Management System
Security Management at Macalline Shopping Centers
Identied a total of
hazardsFormulated
control measures
2023
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Workplace Safety InspectionWe actively conduct internal and external safety audits. Our safety committee conducts safety system audits everyquarter according to the "Safety Assessment Plan" and applies the audit results to safety assessments to achievecontinuous improvement of the safety management system. Two stores under the logistics subsidia and automotivegroup paicipate in the standardization rating of work safety. The emergency management depament conducts safetyaudits eve 3 years in accordance with the " Guideline of China occupational safety and health management system "(GB/T33000). In 2023, the safety committee inspected a total of 41 on-site units, discovering and rectifying 103 hiddendangers, with a coverage rate of 100% for inspection formats. The inspection density of each safety key unit signicantlyincreased, with a total of 138 on-site units inspected, discovering and rectifying 989 hidden dangers, and achieving aninspection coverage rate of 86%. In addition, each on-site unit conducts self-inspection monthly, rectifying a total of1,134 hidden dangers.
● Flexible Hidden Hazard Inspection
● Specialized Operation Inspection
●
Gas Usage Inspection
●Real Estate Project Inspection
Building upon the initial phase of addressing rigid hazards,we have identified 14 key risks existing in specializedoperations, maintenance of special equipment, hazardouswaste management, and occupational health management.We have organized special task forces in each safety-focused unit to carry out targeted actions, resulting inthe identication and rectication of a total of 22 hiddenhazards.
A comprehensive inspection of the qualifications of allcompany employees engaged in specialized operations wasconducted. We inspected 212 forklift operators, 37 high-voltage electricians, 219 low-voltage electricians, 63 weldersand hot cutters, and 132 crane operators in total. The dis-qualied employees were promptly isolated and rectied.
To address gas safety concerns, we carried out a special governance initiative. Following a thorough investigation, we found that ve4S stores within automotive group and the liquor company were using gas. Our safety committee allocated a special rectication fundof 56,000 RMB to the automotive group to converse from gas to electricity, thus eliminating gas hazards at once. Due to operationalrestrictions, the liquor company was unable to cease gas usage but we have re-evaluated and ensured its safety.
C&D Property adheres to the safety bottom line of projects, strictly implementing the "Red-Yellow Card SupervisionSystem," and imposing strict nes on personnel responsible for incidents involving red-yellow cards. We are committedto achieving the work safety goal of zero incidents related to re safety, elevator safety, and personal inju.
Additionally, clear regulations have been established for safety rectificationwork: management-related issues must be rectied within 7 working days afterdiscovered by the relevant depament, equipment-related safety issues mustbe rectified within 1 month, with a maximum extension of 3 months underspecial circumstances. Otherwise, it requires hierarchical review and approvalof the General Manager. For safety bottom line issues that cannot be rectiedin a timely manner, the relevant depaments must promptly and proactivelyinform internally and repo to relevant internal and external paies. Within 7working days after repoing, targeted emergency plans must be developed,and relevant personnel must conduct at least one drill. Additionally, emergencyplans must be evaluated and revised annually, with drills conducted at leastsemi-annually. If safety bottom line issues repoed internally are not rectiedwithin the specified time frame, corresponding penalties will be imposedaccording to the human resources reward and punishment system, withquaerly notications issued.
C&D Propey’s Operations Management Center and Cluster Propey Depaments are responsible for organizing joint inspections onceeach year in the rst and second halves of the year, as well as conducting periodic spot checks. Business units/companies are requiredto carry out safety bottom line supervisory inspections once per quarter, while districts/projects are to conduct safety bottom linesupeiso inspections once per month. For newly added external projects (including new construction), business units/companies mustcomplete a safety bottom line self-inspection within three months from the project's occupancy date. Except for special approvals, newlyadded external projects (including new construction) that do not meet the re access conditions are not allowed to repo existing safetybottom line issues.
We cover multiple aspects including re protection systems, elevator systems, public facilities, operational management,and past rectication, ensuring that each safety aspect receives sucient attention and eective control.
The safety committeeinspected a total of
on-site units
With a coverage rate of
%
Each on-site unitrectifys a total of1,134
hidden dangersDiscovered andrectied
hidden dangers
Inspection Methods
Inspection Content
2023
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●Community Safety Inspection●Mall Safety InspectionC&D Propey attaches great impoance to community safety management. Through the formulation of an annual worksafety plan, organization of work safety inspections, and conducting training on key points of annual safety hazardidentication, we enhance employees' awareness of safety hazards and their ability to handle them, thereby establishinga solid community safety system. We hold monthly safety meetings to thoroughly review the safety situation of theprevious month and plan work safety work for the next month. Monthly online hazard inspections are implemented,utilizing the PMS work order system to ensure comprehensive and meticulous inspections of public areas by the orderand customer seice teams. Additionally, self-inspection and self-correction activities are conducted before impoantholidays such as New Year's Day, Spring Festival, Labor’s Day, and National Day, ensuring work safety during the holidayperiod.
Eve year, Macalline conducts two rounds of safety risk inspections for all opened malls nationwide, covering 13 itemsincluding building structures, facilities and equipment, operating booths, decoration booths, vacant booths, cross-industry dining, emergency response, and non-business hour control. It implements district-based management forsafety personnel, with each responsible for supervising the safety of malls in their respective districts, achieving fullcoverage within six months. At the regional level, quaerly inspections and mutual inspections between mall generalmanagers are conducted. At the mall level, weekly and monthly self-inspections and rectication work are carried out tocomprehensively promote the identication and rectication of safety hazards in the malls.In addition, C&D Propey strictly adheres to the guidelines of the " C&D Real Estate Propey Project Safety HazardInspection Manual". It implements corresponding standards in key safety areas such as fire protection, elevators,swimming pools, water features, fall prevention facilities (including children's recreational facilities), electric vehicles, andgas, and provides specic explanations of the potential harm of various safety hazards to enhance safety awareness. Toaddress two major key issues of high-altitude throwing and elevator safety, C&D Propey has taken a series of eectivemeasures:
Detailed inspection plans are formulated tocomprehensively cover all areas within thecommunity, with a focus on checking publicareas and monitoring facilities where risksmay exist. Inspection and rectication workfor strengthening protective measures areintensied, and targeted special inspectionsare conducted. Through educationalcampaigns, residents' awareness andunderstanding of high-altitude throwingare raised to enhance safety consciousness.
C&D Propey strengthens the quality and safetylevel of elevators by implementing bi-monthlyinspections and intercom communication teststo ensure safe operation. It promotes safetyelevator knowledge and rescues skills throughelevator car culture construction and centralizedpublicity activities, guiding residents to takeelevators safely and courteously. At the sametime, semi-annual emergency rescue drills forelevator entrapment are conducted to enhancethe ability of property management andmaintenance units to respond to emergencies.
Throwing objects from heightElevator safety
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Emergency Safety Management
In managing sudden production safety incidents, we follow the principle of "quick response and hierarchical reporting ". Work Safetyleaders in each unit repo incidents step by step, and in cases of special urgency, they may directly repo to the leader of our work safetyworking group or the chairman. Once a sudden incident or accident occurs, the work safety working group immediately initiates relevantemergency plans, actively conducts accident rescue operations, and ensures that unit leaders arrive at the scene promptly. Effectivemeasures are swiftly taken to organize rescue eos, prevent the incident from escalating, and minimize casualties, propey damage, ordamage to our reputation to the greatest extent possible.
Highlight
Highlight
To address emergencies such as typhoons, heavy rainfall, and ooding, C&D Propey has developed a "Typhoon and Flood PreventionPlan." Prior to the rainy season, the plan generates specialized inspection work orders through the PMS system, which are then carriedout by various departments and projects. Concurrently, on-site drills for typhoon and flood prevention are conducted to enhanceresponse capabilities. In 2023, one week before the arrival of Super Typhoon "Doksuri" in Quanzhou, C&D Propey issued a typhoonemergency warning and organized depaments and projects to conduct specialized inspections and material preparations according tothe requirements of the typhoon and ood prevention emergency plan. During the typhoon, paicular attention was paid to key areassuch as garages, rooftops, equipment rooms, and low-lying areas with regular inspections to promptly identify and address potentialhazards. After the typhoon, quick action was taken to clear fallen trees, remove water accumulation, and inspect facilities and equipmentto restore order to the community as quickly as possible. Despite the impact of the typhoon and heavy rainfall, cities such as Quanzhou,Xiamen, and Fuzhou experienced urban ooding and fallen trees, C&D Propey’s managed projects did not experience undergroundooding.
In 2023, relying on Fire Prevention Day (April 19th) andFirefighting Day (November 9th), Macalline conducted variousemergency plan drills and specialized assessments. A total of322 malls nationwide paicipated in the drills, organizing a totalof 14,939 emergency drills, with 147,979 paicipants. Local redepartments were invited to participate in 705 mall plan drills,covering scenarios such as emergency evacuation, firefighting,elevator entrapment, sprinkler burst, counter-terrorism incidentresponse, and sudden event response, involving 100% of thecompany's employees. Additionally, the company conductedemergency plan drills for malls in 62 cities nationwide, totaling124 drills throughout the year, comprehensively enhancing thecollaborative emergency response capabilities of shopping malls.
Emergency Drills for Typhoon and Flood Prevention
Fire Emergency Drills in Shopping Malls
Based on the emergency plansystem,our key safety unitsconducted a total of16,704
emergency drillsWith a total of158,370
paicipants
We have formulated the "Emergency Management Regulations for Work Safety Accidents,"which specifies requirements for contingency plan formulation, team building, materialallocation, and drill execution. Each key safety unit, considering its own business characteristics,has developed an emergency plan system for high-risk scenarios such as re evacuation, safetyaccidents, and typhoons. Periodically, safety re drills and emergency exercises are organizedfor employees to enhance their emergency response capabilities. Currently, we have developed29 types of emergency plans and 37 operating standards, covering all aspects of businessoperations. In 2023, our key safety units conducted a total of 16,704 emergency drills based onthe emergency plan system, with 158,370 paicipants. The drill themes included scenarios suchas typhoon and ood prevention, re prevention, falls from height, mechanical injuries, chemicalburns, hazardous material leaks, and heatstroke in high-temperature weather, among others.
Organized a total of
14,939
emergency drills
With a total of
147,979
paicipants
2023
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Safety Training Education
We attached great importance to employee occupational health andsafety education, strictly following the requirements of the "Work SafetyEducation and Training System" to provide employees with educationand training in work safety. In order to further strengthen the worksafety for overseas institutions and personnel, we have also formulatedthe " Regulations on Security Management of Overseas Institutions andPersonnel", explicitly requiring sending units to organize overseas safetyeducation and training before personnel are dispatched abroad. In 2023,the we issued the "Safety Training Outline", covering safety managementqualification training, new employee safety training, emergencyfire training, safety management platform training, work safetystandardization thematic training, CPR certification training, onlineoccupational health training, etc. In 2023, we and various safety keyunits conducted safety and occupational health training in accordancewith the safety training outline and job characteristics, with a totalof 31,321 training sessions and drills conducted, involving 373,368paicipants, and achieving a 100% coverage rate among employees.
Highlight
Highlight
To comprehensively enhance employees' safety awareness and improve safety skills, we organize the development of a series of safety-themed courses covering oce safety, re safety, and various professional safety training, etc., and upload them to the " Zhangjianshi" learning platform for all employees to study. Each level of operating unit formulates annual training plans based on businesscharacteristics and actual situations. Through safety knowledge quizzes, firefighting practical competitions, thematic lectures, etc.,work safety, special operations personnel, oce safety, driving safety, and other aspects of safety education and training are providedto employees. Before the sta of the project, operating units coordinate with supeiso units to strictly supeise construction units,ensuring that all incoming construction personnel receive appropriate safety technical measures brieng and pre-job training to preventpotential safety risks. Additionally, we utilize various promotional platforms such as "Weilianfa" and "Lianfa’s windows" to disseminateinformation on current social hot topics or safety knowledge.
C&D Propey places great emphasis on cultivating and enhancing employees' safety awareness. For new employees, tailored inductiontask lists are formulated according to different positions, and through a systematic training process, new employees are assisted ingradually mastering core safety knowledge and skills. Meanwhile, diverse safety training courses are actively organized, covering topicssuch as correct operation of pressure relief valves, emergency plans for engineering management emergencies and sharing of typicalcases, dissemination of safety bottom lines with red and yellow cards and case sharing, and the use of engineering safety protectiveequipment, aiming to comprehensively enhance employees' safety awareness.
Real Estate Construction Safety Training
New Employee Safety Training
Conducted
training sessionsand drills with a total of31,321With a total of373,368
participantsCoverage rate among employees
%
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Highlight
Macalline implements training for its own employees, business clerks, decorators, catering sta, and third-pay personnel. The trainingcontent covers safe electricity use, understanding and maste of the "four understands and four knows" of re safety, re extinguisherusage, decoration management standards, national regulato norms, commercial warning case studies, and various ocial documentnotication standards. Additionally, Macalline actively conducts safety publicity work through a combination of online and oine methodssuch as mall bulletin boards, propaganda columns, and micro-pushes, with a total of 3,312 safety promotions conducted throughout theyear. The safety knowledge dissemination, training, and activities carried out in ongoing projects are divided into regular and irregularcategories. Macalline regularly conducts safety education and training for new workers before they enter the construction site, holdssafety special meetings no less than once a week, and conducts education, training, and publicity activities in line with the theme ofNational Safe Production Month in June each year for all employees. Fuhermore, Macalline organizes special safety knowledge trainingand warning education activities irregularly based on the project situation and on-site safety issues. In 2023, Macalline conducted a totalof 10,676 training sessions, with a total of 201,573 paicipants.
Mall Safety Training
Occupational Health ManagementWe attach great impoance to occupational health management of employees, strictly adhering to the " Law of the People's Republicof China on Prevention and Control of Occupational Diseases," "Provisions on the Administration of Occupational Health at Workplaces,"and "Classication and Catalogue of Occupational Diseases," continuously establishing and improving occupational health managementsystems. We implement reasonable work schedules and exible work arrangements, providing employees with online occupational healthtraining, health check-ups, psychological health assessments, and other seices, aiming to provide a safe, healthy, and pleasant workingenvironment. We achieved a zero occupational disease incidence rate in 2023.
●Employee Assistance Program
●Employee Health Management
We implement an Employee Assistance Program (EAP), providing employees with a comprehensive, long-term professional mental health welfareand support program. Through professional diagnosis, advice, guidance, training, and counseling (both we and third-party institutions arecommitted to strictly protecting the condentiality and privacy of the counseling), we help to address the psychological and behavioral issues ofemployees and their family members.
We mobilize all employees to paicipate in online occupational health training, organize annual comprehensive health check-ups for allemployees, including physical examinations, routine tests, and specialized examinations, to ensure timely detection and inteention ofemployee health conditions. We provide personalized health advice and guidance to help employees focus on and manage their healthcomprehensively.We operate a cafeteria, providing healthy meals for employees with balanced nutrition to improve the health of the workforce throughdieta regulation. We also establish employee tness groups, oering various classes such as yoga and swimming to provide tness andnutrition knowledge, meet the employees' need for physical exercise, improve their mood and mental state, and foster a positive corporateculture, thereby fully suppoing the overall physical and mental health of all employees.Subsidia companies car out free breast and gynecological disease screenings for female employees in dicult circumstances. Theyalso collaborate with Baodao Optical and China Minsheng Banking Corp., Ltd. to provide on-site eye health check-up seices, enhancingemployees' awareness of eye care.
●
Provide 24-hour psychological counseling seices to facilitate problem-solving and stress relief, eectively enhancing employee work enthusiasm and life satisfaction in the sho term.●
Equip with an outstanding team of professional psychological counselors, with nearly 600 counselors available for selection.●
Employees can make appointments for psychological counseling via phone, WeChat ocial account, and enterprise WeChat. Counseling sessions are available in both online and oine formats.
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● Work Schedule Management
● Employee Recreational Activities
We strictly adhere to the requirements of the "Labor Law of the People's Republic of China" and local laws and regulationsregarding working hours, advocating for a balance between work and life. We generally implement a two-day weekendsystem, rigorously control unnecessa oveime, and ensure that employees enjoy statuto rest periods and holidays,thereby guaranteeing that employees do not work overload within prescribed working hours to safeguard their physicaland mental health. For positions implementing flexible or comprehensive working hour systems, we require relevantmanagement personnel to repo according to policy requirements. Through regulating employee attendance, preventingexcessive oveime, promoting work-life balance, and fostering a healthy and safe working environment.
We regularly organize a variety of recreational activities, such as tree planting, collaborative events for festivals, annualsports meetings, and employee basketball games. We also construct beneficial physical and mental recreationalfacilities, such as gyms and staff reading spaces like "WE Reading Space," enriching employees' leisure lives andenhancing collective identity and organizational cohesion.
Highlight
In real estate operations, we organize "Cooling and Warming Activities" for frontline employees. During hot summers,we provide cold drinks, sù-kó-thong, and other cooling foods to employees, while during cold winters, we offerhot tangyuan (glutinous rice balls) and dumplings, ensuring the physical health of employees under high summertemperatures and severe winter conditions.
Cooling and Warming Activities
We establish and continuously improve a corporate governance system that is just, responsible,effective, and inclusive. We consistently enhance the scientific nature and transparency of decision-making, promote the improvement of risk management systems, and adhere to high ethical standardsin business conduct. We establish fair and positive relationships with all stakeholders, thereby ensuringsustainable development and long-term value creation.
Governance Peormance Targets in 2023Completion Status
Revise and enhance sustainable development policies and systemsin conjunction with business operations and development
Zero signicant lawsuits or major administrative penalties throughoutthe year due to unfair competition practices
100% coverage rate of anti-commercial bribe and anti-corruptiontraining for employees during the year4Zero number of tax compliance violations
Disclose the 2023 Sustainable Development Report by May 2024,and repo the ESG governance eectiveness in 2023 to stakeholders
GOVERNANCE
Completed
In Progress
Uninished
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Governancefor SustainableDevelopment
We integrate sustainable development concepts into corporategovernance and gradually establish a top-down sustainabledevelopment management framework. Under the Board of Directors,there are various committees including the Audit Committee, theRemuneration and Appraisal Committee, the Strategic and SustainableDevelopment Committee, the Risk Management Committee, andthe Investment and Policy-making Committee. These committeesprovide professional consultation and advice to guide and supeiseESG (Environmental, Social, and Governance) management work,continuously enhancing our level of sustainable developmentmanagement, and promoting the realization of long-term corporatevalue.
In 2023, we revised the ""Working Rules of the Board of Directors'Strategic and Sustainable Development Committee", specifying thatthe Strategic and Sustainable Development Committee is responsiblefor researching and making recommendations on ESG strategies,as well as ESG issues of stakeholder concern such as environmentalmanagement, greenhouse gas emissions, human rights protection,and responsible supply chains. The committee also reviews ESGrepos and guides and supeises ESG-related work. The committeeholds meetings annually to discuss climate-related issues and reposto the Board of Directors. At the executive level, we have establisheda Sustainable Development Working Group composed of seniormanagement and managers from relevant functional departments.Under the guidance of the Strategic and Sustainable DevelopmentCommittee, this group is responsible for implementing specic ESG-related tasks.
We strictly follow the procedures for the nomination and election ofboard members in accordance with the Aicles of Association, Rulesof Shareholders Meetings, and other regulations. Board membersare elected by the shareholders' meeting. Currently, the board ofdirectors consists of 9 members, including 3 independent directors,all of whom hold doctoral degrees, accounting for 33.33% of the totalnumber of board members.
Sustainable Development Governance Structure
Appointment of Directors and Senior Management
Board of Directors Level
Executive Level
Sustainable DevelopmentWorking Group
NameOccupationAge
ProfessionalismBoard CommitteesIndustExperience
OperationsManagement
RiskControl andCompliance
Accounting& Financial
Strategy andSustainableDevelopmentCommittee
RiskManagementCommittee
Remunerationand AppraisalCommittee
Investmentand Policy-makingCommittee
AuditCommitteeZhengYongda（Male）Chairman
⊙⊙⊙⊙⊙⊙⊙HuangWenzhou（Male）Vice Chairman
⊙⊙⊙⊙⊙⊙⊙⊙⊙Ye Yanliu（Female）Director
⊙⊙⊙⊙⊙⊙⊙ZhouShaorong（Male）
Director
⊙⊙⊙⊙⊙⊙Lin Mao（Male）Director&CEO
⊙⊙⊙⊙⊙⊙⊙ChenDongxu（Male）Director& VicePresident
⊙⊙⊙⊙⊙⊙Lin Tao（Male）IndependentDirector
⊙⊙⊙⊙Chen Shoude（Male）IndependentDirector
⊙⊙⊙⊙⊙Wu Yuhui（Male）
IndependentDirector
⊙⊙⊙⊙
Jiang Guizhi（Female）
Vice President&Board Secreta
⊙⊙⊙⊙Wang Zhibin（Male）
Vice President
⊙⊙⊙⊙
Xu Jiana（Male）Vice President
⊙⊙⊙⊙ChengDongfang（Male）Vice President
⊙⊙⊙⊙Lv Rongdian（Male）Vice President
⊙⊙⊙⊙Wei Zhuo（Female）
CFO
⊙⊙⊙⊙
Strategic and SustainableDevelopment Committee
We strictly adhere to the procedures outlined in the Articles ofAssociation and other regulations for the appointment of seniormanagement personnel. Senior management personnel coverprofessional fields including corporate management, financialmanagement, risk management, etc. Among them, there are 2 femalesenior management personnel, accounting for 25% of the totalnumber of senior management personnel.
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The diversity and professionalism of the Board of Directors and seniormanagement team are important safeguards for corporate decision-making. We highly value the continuous improvement of the professionalcompetence of directors, supeisors, and senior management personnel.Every year, we regularly organize various training sessions related toduties and sustainable development for directors, supeisors, and seniormanagement personnel. In 2023, we organized a total of three trainingsessions for directors, supervisors, and senior management personnel,with a total of 15 paicipants.
Our Board of Directors has established a Remuneration and Appraisal Committee, which operates in accordance with the "WorkingRules of the Board of Directors' Remuneration and Appraisal Committee". It is responsible for providing recommendations on directorcompensation, formulating compensation and peormance assessment plans for senior management personnel, and conductingsalary assessments for senior management personnel. Directors and senior management personnel employed by the companyreceive their compensation on an annual sala basis, determined according to their specic roles. Their annual sala comprisesboth a basic salary and a performance-based component, which is tied to the company's financial performance and individualperformance assessments. They are also entitled to benefits stipulated by the company. Directors no longer receive additionaldirector remuneration for their roles in the company. Compensation or allowances for independent directors of the company aredetermined by the shareholders' general meeting, while the compensation for senior management personnel is proposed by theRemuneration and Appraisal Committee and implemented after approval by the board of directors.
Compensation of Director and Senior Management
Clawback Mechanism
The Shareholding of Directors and Senior Management
For the compensation of the directors and senior management personnel holding specic positions within the company,we reserve a certain proportion of annual performance-based compensation as risk reserve, which is paid out at adeferred schedule. In the event of losses incurred due to improper management or other personal reasons, or violationsof laws and regulations, the corresponding compensation amount will be deducted from the risk resee, aiming toprevent sho-term behavior in management and sala risks. Additionally, we have formulated " Regulations on theManagement of Rewards and Punishments," linking sustainable performance in human capital, safety management,integrity in operation, clean construction, information security, etc., with the compensation peormance of managementand relevant responsible personnel.
We Implement a Restricted Stock Incentive Plan, granting restricted stocks to directors and senior executives toestablish a medium- to long-term incentive constraint mechanism. As of December 31, 2023, directors and seniormanagement personnel collectively held 8,003,006 shares of company stock, accounting for 0.27% of the total sharecapital.
Organized training sessions fordirectors, supervisors, and seniormanagement personnel with a total of
With a total of
paicipants
1Zheng Yong daChairman913,8402Huang WenzhouVice Chairman225,6213Ye YanliuDirector649,7604Zhou ShaorongDirector13,5185Lin MaoDirector & CEO907,0806Chen DongxuDirector & Vice President813,8407Wang ZhibinVice President901,3478Jiang GuizhiVice President& Board Secreta910,0009Xu JianaVice President750,00010Cheng DongfangVice President759,20011Lv rongdianVice President758,80012Wei ZhuoCFO400,000
NumberName持有股份数（股）OccupationNo. of Shares Held (shares)
Table of Shares Held by Directors and Senior Management
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To ensure that our related pay transactions adhere to the principles of fairness, impaiality, and transparency, we strictly complywith relevant laws and regulations. In line with our operational practices, we have established the "Related Party TransactionManagement System," which provides clear regulations on the review and disclosure procedures, pricing principles, and otheraspects related to related party transactions. We strictly implement a mechanism for related party avoidance. During thedeliberation of related party transactions, related directors and shareholders must abstain from voting. Independent directorsexpress independent opinions on related pay transactions requiring disclosure, and they provide pre-approval opinions for relatedparty transactions requiring shareholder approval before board deliberation, fully exercising their supervisory role. Additionally,our "Financial Management Regulations" and "Capital Management Regulations" also stipulate related matters concerning themanagement of funds involving related paies. In 2023, all related pay transactions were conducted in accordance with relevantlaws, regulations, and internal management systems.
In accordance with the Articles of Association, directors and senior management personnel are obligated to act in good faithtowards the company. Without the consent of the shareholders' meeting, they are not allowed to exploit their positions to pursuebusiness opportunities that rightfully belong to the company for themselves or others, engage in self-employment or operatebusinesses similar to those of the company, in order to ensure fairness and transparency in decision-making. We require directorsand senior management personnel to promptly repo any signicant positions held in other entities to us to avoid potential conictwith the interests of the company.
We strictly adhere to the requirements of relevant laws and regulations such as the Company Law of the People's Republic ofChina, Securities Law of the People's Republic of China, and the Code of Corporate Governance for Listed Companies, establishinga sound "three-tiered" corporate governance structure. We continuously improve the governance system based on the Aicles ofAssociation, consisting of internal governance documents such as the Rules of Shareholders Meetings, and other regulations, Rulesof Procedure for Board Meetings, and Rules of Procedure for Board of Supeisors Meetings, clarifying the responsibilities of thepower, decision-making, supeiso, and management bodies to ensure coordinated and standardized operations and promotethe high-quality development of the company. The Board of Supervisors consists of three supervisors, including one employeesupeisor. The Board of Supeisors strictly follows relevant regulations and internal rules such as the Aicles of Association andthe Rules of Procedure for Board of Supeisors Meetings, conscientiously fullling its supeiso duties. It supeises the legalityand compliance of directors and senior management personnel in peorming their duties and the company's nancial condition,and provides opinions on related signicant matters. We strictly follow relevant regulations and internal rules such as the Aiclesof Association and Rules of Shareholders Meetings, standardizing the convocation, holding, and voting procedures of shareholders'meetings, and safeguarding the rights of all shareholders, especially minority shareholders.
In 2023, we convened a total of 6 shareholders' meetings,deliberating on 62 agenda items; held a total of 41 boardmeetings, discussing 110 agenda items, with independentdirectors expressing independent opinions on significantmatters 13 times; convened a total of 85 specialized committeemeetings, discussing 461 agenda items; held and a total of 9Board of Supeisors meetings, discussing 36 agenda items. Theattendance rate of all directors and supeisors was 100%.
Related Pay Transaction
Conict of Interest
Protection of Minority Shareholders'Rights and Interests
Information Disclosure Management
Investor Relations Management
We strictly adhere to the requirements of relevant regulations such as the Rules Governing the Listing of Stocks on Shanghai StockExchange and have formulated a series of regulatory documents including the "Information Disclosure Management System," "DebtFinancing Instrument Information Disclosure Management System for the Interbank Bond Market," "Insider Information HolderRegistration Management System," "External Information User Management System," and "Signicant Information Internal RepoingSystem." These documents clarify the scope, time limits, procedures, and channels for information disclosure, standardizing theinformation disclosure process. Additionally, we actively carry out the registration of insiders and internal reporting of significantinformation to ensure that information disclosure is conducted truthfully, accurately, timely, and completely, thereby fully safeguardingthe right to information of all investors.
We have established the "Investor Relations Management System" andestablished an investor relations management mechanism. The Chairmanof the Board of Directors serves as the primary person responsible forinvestor relations management, while the Securities Department, underthe leadership of the Board Secretary, is responsible for organizing andimplementing investor relations management work. We have establisheddiversied channels of communication with investors, including the InvestorRelations section on the official website, investor hotline, investor email,Shanghai Stock Exchange Interactive Platform, shareholder meetings andpeormance briengs, investor visits and sueys, etc., to maintain eectiveand positive communication with investors. In 2023, we were honored withthe Foueenth "China Listed Company Investor Relations Tianma Award"and the "2022 Outstanding Digital Transformation Case Gold Award."
Convened a total of
shareholders' meetings
The attendance rate of alldirectors and supeisors was
%
The Foueenth"China Listed Company Investor
Relations Tianma Award""2022 Outstanding DigitalTransformation Case Gold Award"
2023
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We place high importance on the demands and expectations of stakeholders, and maintain communication with them throughdiverse channels. By engaging in regular dialogue with stakeholders, we stay informed about their feedback and expectations,integrating them into corporate governance practices. This approach facilitates the continuous enhancement of ESG managementcapabilities and peormance across various ESG issues.
In 2023, we invited both our management teamand stakeholders to participate in material issueassessments. This process aimed to identifymaterial sustainability issues for us. Following theprinciple of double materiality, we establisheda sustainability issue matrix, which will beelaborated upon in this repo.
Based on the results of internal and external research, we followed the double materiality principle to conductcomprehensive analysis and prioritize soing from two dimensions: the impoance of the issue to our nancial impactand the impoance of the issue on stakeholders, forming a material issues matrix.
Stakeholders CommunicationMaterial Issue Assessment
Employees·Environment Compliance·Human Rights Protection·Equal Employment
·Employee Feedback Solicitation·Employee Training and Activities·Company WeChat Public AccountClients·Responsible Supply Chain·Tax Compliance·Customer Rights Protection
·Customer Satisfaction Sueys·Customer Seice and Complaint Handling·Social Media and Company PublicationsSuppliers
·Responsible Supply Chain
·Whistleblower Protection·Anti-corruption
·Supplier Conferences·Conferences·Visits and Research·Discussions and TrainingInvestors
·Risk Management
·Anti-corruption
·Customer Rights Protection
·Public Company Information Disclosure·Shareholders' Meetings·Peormance Briengs·Investor Sueys·Investor Hotline/Interactive Easy PlatformBanks·Operations Compliance·Risk Management·Information Security
·Public Company Information Disclosure·Project CooperationMediaInstitutions
·Customer Rights Protection·Risk Management·Anti-corruption
·Social Welfare Activities·Public Company Information Disclosure·Social Media and Media Communications·Public Opinion MonitoringGovernment andRegulatoBodies
·Community Investment·Environment Compliance·Anti-corruption
·Visits·Paicipation in Policy Making Suggestions·Government Project CooperationNon-governmentalOrganizations
·Community Investment·Environment Compliance·Human Rights Protection
·Visits·Community Seice·Welfare Activities
StakeholdersConcerning TopicsCommunication Methods
We reviewed and analyzed the material issue assessment results in 2022. Based on the requirements of frameworkssuch as GRI and SASB, we combined with the characteristics of our business, and referenced excellent ESG practices ofpeer companies in the same indust to identify and conrm 27 ESG issues.
We sent the 2023 material issue suey questionnaires to the management team and stakeholders separately, andcomprehensively collected and analyzed the priorities of various stakeholders through internal and external researchassessments.
The results of the assessment were reviewed and confirmed by the Board of Directors Strategic and SustainableDevelopment Committee. Addressing the top three issues in terms of their significance, namely risk management,operation compliance, and anti-corruption, identified in this assessment, the report focused on addressingstakeholders' concerns under relevant issue categories to strengthen the ESG issue management.
ESG issueidenticationand update
Internal and
external
researchassessment
Materialissue
analysis
Evaluationresultsreview
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Environment Compliance
GHG Emission
Energy Management
Exhaust Air Management
Waste Management
Biodiversity
Resource Recycling
Equal Employment
Human Rights Protection
Occupational Health and Safety
Training and Education
Compensation and Welfare
Operations Compliance
Risk Management
Anti-corruption
Anti-unfair Competition
Research and Development Innovation
Intellectual Propey Rights Protection
Information Security
Tax Compliance
Whistleblower Protection
Employee Communication
Community Investment
Responsible Supply Chain
Customer Rights Protection
Responsible Marketing
Environment Issues
Society Issues
Governance Issues
High
HighMedium
Impoance to Stakeholders
Impoance to C&D Inc.
Water Protection andWastewater Management
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We have elevated risk management to the strategic level by adopting a "professionalized" operational strategy. We have establishedcorresponding business management frameworks tailored to different industries, integrating risk management deeply intobusiness, market, and indust dynamics. This integration ensured that risk management was incorporated throughout all stages ofoperations, from conceptualization to execution and monitoring. We continuously rened the risk management system, covering allbusiness processes and the entire lifecycle, to construct a "professionalized, hierarchical, and process-oriented" risk managementframework, thereby ensuring our stable operation.
Taking the two categories of credit risk and project management risk that we have already identied as examples:
Risk and Compliance Management
Risk Management Structure
We have established a three-tier risk management framework consisting of the Board of Directors, the headquaers management, andfunctional depaments, as well as subsidia management and related functional depaments. We have formulated and continuouslyrefined internal business management systems such as the "Internal Control Management Manual," "Supply Chain OperationsManagement Regulations," "Logistics Management Regulations," and "Credit Management Regulations." Additionally, we havedeveloped a comprehensive risk control matrix to standardize the management processes of key operational and business segments.We continuously strengthen and optimize process controls and key risk point controls to enhance the prevention of various risks duringoperations, ensuring stable operation.
Three-tier Risk Management Structure
BusinessSegments
Risks TypesDescription of RisksCategoCoping Mechanism
SupplyChainOperations
Credit Risk
Losses incurred due to thecounterparty (supplier orcustomer) failing to fulfillcontractual obligations (such asdelive, receipt, payment, etc.)on time.
Mid-LevelRisk
We establish a trading counterpart admission system that matches thecharacteristics of goods and transaction features of each business sector,conducting comprehensive evaluations of customer qualifications andcredit risks. We have developed comprehensive credit managementmethods, strictly implementing centralized credit approval managed bythe headquaers. We dynamically adjust customer credit strategies andcontrol plans by tracking industry changes and customer informationthrough internal and external channels. Additionally, we utilize variousmeasures such as expo credit insurance and domestic credit insurance tostrictly control credit risks.
Real Estate
ManagementRisk
The development of real estateprojects is characterized bylarge upfront investment,long development cycles,involvement of multiplepaners, among other indust-specific features. Real estatecompanies face significantmanagement pressure in areassuch as project developmentcycles, project sales progress,and engineering quality.
Low LevelRisk
We will fuher enhance the management capabilities of our operationalteam in project operation, continuously refining internal controls.Staing from investment decisions, cost control, process monitoring, andresponsibility assessment, we will strengthen nancial management andengineering control to improve the quality of project management in oursubsidiaries and reduce operational risks. While ensuring project quality,we will optimize the development and operation processes, shoen thedevelopment and operation cycles, strengthen cash ow management,improve operational eciency, and ensure safe and steady growth.
Board of DirectorsRisk Management Committee& Audit Committee
Headquaer’s Management TeamOperations Management Dept., CreditManagement Dept., Legal A?airs Dept.,Risk And Compliance Inspection Dept.,Futures Management Dept. etc.
Management Teams Of SubsidiariesFunctional management depaments
of subsidiaries
·The Risk Management Committee established under the Board of Directors fulfills the responsibility of riskmanagement, controlling and making decisions on signicant business matters, major anomalies, or risk situations,guiding the overall risk management.·The Audit Committee established under the Board of Directors fullls the responsibility of risk oversight, reviewingand supeising the company's risk control, internal control, and compliance.Headquaer’s management and multiple functional depaments fulll the responsibility of risk control as follows:
·Implementing a system of managerial responsibility, where the general manager is authorized by the Risk ManagementCommittee, and fuher delegation is made at each level, clarifying the division of authority and establishing hierarchical risk control.·Various functional management depaments such as Operations Management, Credit Management, Logistics Management,Legal Affairs, Compliance Inspection, and Futures Management undertake risk management responsibilities within theirrespective functional areas. The Operations Management depament coordinates and supeises various functional managementdepaments, repoing to the Risk Management Committee or the general manager within their authorized scope. We also appointa Chief Risk Ocer responsible for overseeing risk-related work and repoing to the chairman of the Board.·The Compliance Inspection depament sees as the supeiso body for risk control, fullling its oversight responsibilitiesthrough inspections, audits, and regular communication, and providing regular repos to the Audit Committee.·The subsidiaries’ management teams and relevant functional departments carry out daily risk managementresponsibilities within the scope of each subsidia's business, conducting risk management activities.
In the risk control process, we continuously adjust key risk indicators quarterlybased on market conditions and actual operational situations. We promptlytake measures and report potential or likely risk or dispute events discoveredduring business operations in accordance with regulations. Additionally, weincorporate various risk control processes into its enterprise management system,clarify the responsibilities of each department and approval decision authority,standardize hierarchical reporting, and strengthen post-process tracking bydepaments to ensure the eective execution of risk control processes, monitor,and prevent potential risks. By implementing regulations such as the " Regulationson the Management of Rewards and Punishments " and the " Measures onthe Management of Risk Funds," we link key risk indicators to managementpersonnel's compensation, thereby enforcing risk management responsibilities.In 2023, we revised the "Composition, Duties, and Approval Control Measures ofthe Risk Management Committee," optimized the authorization items for the RiskManagement Committee 's approval, and improved weak links in risk management.Furthermore, leveraging data mining, machine learning, and other big datatechnologies, we continuously optimize the "Intelligent Risk Control SystemModel," represented by the E-risk control series products, to provide technicalsuppo for the company's risk management and operational decision-making.
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Risk and Compliance InspectionEducation on Risk Control
The Audit Committee established under the Board of Directors is responsible for reviewing and supervising risk management andinternal control compliance. The Risk and Compliance Inspection Department is responsible for conducting risk and complianceinspections, internal control audits, and evaluations on various functional management depaments and operating units. It strengthensthe supeision of risk and compliance, promptly identies issues and deciencies in risk control, internal control system processes, andexecution, and provides relevant improvement suggestions, urging implementation. Continuously enhancing the level of risk managementand control to eectively prevent risks. We regularly entrust external professional institutions to audit the execution and eectiveness ofinternal control processes at the company level, including development strategies, social responsibilities, supply chain operations, realestate development and operations, engineering projects, fund activities, asset management, and other impoant business aspects.
We actively promote various types of risk management and compliance training,disseminating risk and compliance knowledge to employees through various forms,advocating for business management and risk control policy requirements, enhancingemployees' awareness of compliance operation and risk prevention, and strengtheningtheir risk management capabilities. Additionally, we encourage employees to promptlyreport potential risks, establish corresponding preventive or responsive measures, andprovide ceain rewards to employees who timely prevent events harmful to our interests inaccordance with internal regulations. In 2023, our supply chain operations business organizeda total of 92 risk management and compliance training sessions, with a cumulative total of6,283 paicipants attending the training.in 2023, the Risk and Compliance Inspection Depament conducted comprehensive monitoring of378 risk control projects, inspected the business execution of joint ventures and holding companies;organized various functional departments and operating units to conduct self-assessment ofinternal controls, streamlined business management processes, and revised 6 business managementprocesses and corresponding internal control measures.
Lianfa Group focuses on key control points in risk areas such as engineering bidding,project management, marketing business, asset leasing, investment, and fundmanagement. It strengthens daily risk supervision and investigation, audits, andoversight, promptly follows up on identied issues, implements corrective actions, andenhances risk prevention and control.
In thesupply chain
operationsbusiness
In the real
estatebusiness
C&D Real Estate conducted special audits on the management of engineering, design, marketing,and other business lines, based on the actual operational management of its various clusters. Thisaimed to strengthen frontline internal audits and the prevention and control of operational risks.Focusing on key risk control issues such as sales management, marketing expense management,and marketing tender management, random inspections were conducted quarterly on typicalprojects to ensure coverage of all business units throughout the year. Each cluster under C&D RealEstate conducted internal inspections of key projects in its subordinate business units quaerly.External third-party agencies were commissioned to conduct sales risk assessments. Specialcompliance marketing audits were conducted for unsold invento of completed propeies withinspecic timeframes.
Organized risk managementand compliance trainingsessions with a total of
sessionsWith a cumulative total of6,283
paicipants
·Conducted a series of training sessions on risk prevention for supply chain operations
·Provided personalized training for 12 seconda operations management personnel·Organized 5 seconda operations management exchange meetings·Arranged training on international business operations management·Hosted a business risk control audit salon
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Prevent Commercial Bribe and Unfair Competition
We adhere to the corporate spirit of " Solidarity, Devotedness, Integrity, Enterprisingness," strictly comply with relevant domesticlaws and regulations in the countries or regions where we operate, suppo and respect the requirements of relevant internationalconventions and norms, and conduct business with high ethical standards to maintain a free and fair market environment. We haveestablished and continuously improved the " Business Code of Conduct," providing clear behavioral standards and guidance for usand our subsidiaries worldwide in areas such as business ethics and compliance, conict of interest, anti-monopoly and anti-unfaircompetition, insider trading prohibition, anti-money laundering, compliance with international trade rules, protection of propeyrights and interests, complaint mechanisms and protection of complainants, and lawful tax payment, establishing a trustwohycorporate image.
We attach great impoance to the construction of corporate integrity and actively prevent corruption. By formulating the"Anti-Corruption and Anti-Bribe Policy," we clearly dene various corrupt and bribe behaviors prohibited and take eectivemeasures to prevent corruption risks. We have established internal management systems such as the " Employee Honest OperationManagement Regulations (Trial)" to regulate the integrity behavior of employees, ensuring a high degree of consistency betweenemployees' knowledge, speech, and actions, and creating a trustwohy and fair business environment. Additionally, we integrateintegrity requirements into daily employee management through internal management systems such as the " Human ResourcesManagement Regulations," " Regulations on the Management of Rewards and Punishments," and "Supply Chain OperationsManagement Regulations." We impose corresponding penalties on employees who violate business ethics and explicitly deneintegrity-related assessment requirements in the annual peormance appraisal for management.
Anti-Corruption and Anti-Commercial Bribe
Business Ethics Risk Control
Supplier Business Ethics Management
We implement integrity policies such as the "Anti-Corruption and Anti-Bribe Policy," " Employee Integrity and Self-Discipline Regulations" andthe"1 +X Special Inspection and Linkage Work System" to identify integrity risks in critical business areas and key positions and incorporate theminto internal controls. Continuous eos are made to strengthen supeision and inspection mechanisms to promote the integrity and high-qualitydevelopment. To enhance integrity risk control, we have established an Integrity and Compliance Inspection Group responsible for monitoringthe adherence to integrity and compliance principles. Led by the Risk Control Director, the Integrity and Compliance Inspection Group comprisesdepament heads from depaments such as Risk Control Inspection, Operations Management, Credit Management, and Legal Aairs. Additionally,a Business Compliance Management Group has vbeen formed to review various business compliance matters and strengthen integrity and businesscompliance risk management. Both the Integrity and Compliance Inspection Group and the Business Compliance Management Group regularlyrepo the status of integrity risk control to the management, who oversee and guide the integrity risk control objectives.
Our "Supplier Code of Conduct" sets foh clear anti-corruption and anti-bribe requirements for suppliers, strictly prohibiting any formof corruption, extoion, or bribe. It requires suppliers to conduct their business activities in a legal, compliant, and ethical manner. Toaddress integrity risks associated with potential business paners such as suppliers, we conduct due diligence through qualicationverication, on-site inspections, background checks, and risk assessments. This is aimed at examining and preventing supplier integrityrisks. Prior to entering into cooperation with suppliers, relevant compliance depaments are involved in the contract approval process toreview supplier qualications and integrity risks. Suppliers are required to sign integrity agreements or pledges of compliance, explicitlyinforming them of the principles of integrity and compliance, as well as the consequences of violating these principles, to constrain theirbehavior and prevent integrity risks. Throughout the business cooperation process, we continuously monitor and track the businessactivities of suppliers and any external negative information, such as litigation involvement or dishonesty. In the event of corruptionor bribe by a supplier, we will terminate business cooperation, seek compensation, or take other appropriate measures to hold thesupplier accountable for their actions.
Integrity Supeision and InspectionOur disciplina inspection commission (hereinafter referred to as the "Commission ") continuously strengthens routine supeision andinspection, conducts special inspections, and conducts supeision and inspection around key areas and impoant time points. It promptlyidenties problems and deciencies, rigorously urges rectication and implementation to prevent integrity risks, to ensure the eectiveimplementation of integrity systems, and to ensure that integrity building is eectively implemented. For violations related to businessoperations, audits and investigations are conducted by the Integrity and Compliance Inspection Group and the Business ComplianceManagement Group. According to internal regulations such as the "Interim Measures for Holding Accountable for Violations of BusinessConduct" and the " Employee Honest Operation Management Regulations," and the "Employee Integrity and Self-Discipline Regulations,"relevant business units and personnel involved in corrupt practices are punished.
Conducted special supeision on the use of leased assets management to eectively improve the compliance ofasset management.
2023 Integrity Special Inspection:
Organized units to conduct self-examination and self-correction in a timely manner around issues such as receivinggifts, unauthorized banquets, and dereliction of duty, and conducted spot checks on key units.Issued discipline requirements and notication documents before impoant holidays, and organized units toconduct self-discipline and self-examination work on integrity after the holidays.
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Business Ethics Training and EducationWe place great impoance on building a culture of integrity, leveraging the synergy of Enterprise WeChat, theintranet, and E-learning platforms to create an integrity culture brand. In 2023, we conducted various forms ofregular integrity education and training activities, covering 100% of employees, aiming to enhance the integrityawareness of all sta members.
We have consistently advocated for freedom and fair competition, strictly adhering to nationaland regional regulations concerning anti-monopoly and anti-unfair competition laws in areas ofbusiness development, committed to upholding integrity, fairness, and freedom in market orderand commercial environments. Through the "Business Code of Conduct," we set foh regulatorequirements regarding anti-unfair competition and anti-monopoly practices for us and oursubsidiaries. It strictly prohibits the use of illegal or unethical means to obtain information aboutcompetitors or paners and prohibits the creation and dissemination of false information aboutcompetitors. The Integrity and Law Enforcement Supeision Working Group is responsible forsupeising and reviewing compliance with the " Business Code of Conduct," ensuring that businessactivities are conducted in a legal and compliant manner, and making eve eo to prevent andavoid risks related to unfair competition and monopolies.
Anti-Monopoly and Anti-Unfair Competition
%pass rate
we conducted various forms ofregular integrity education and training activities, covering
% employees
We attach great impoance to whistleblower protection In internal policy documents such as the "Business Code of Conduct" and "Anti-Corruptionand Anti-Bribe Policy", we clearly states our attitude towards and measures taken to protect whistleblowers' legitimate rights and interests:
allowing anonymous or named repos, strictly implementing condentiality mechanisms to prohibit the disclosure of whistleblowers' informationand repo contents; prohibiting any retaliation or reprisal against whistleblowers. Anyone found leaking information or engaging in retaliatoactions against whistleblowers will be dealt with seriously according to relevant regulations and held accountable.
We strictly adhere to relevant regulations such as the "Rules for Handling Complaints andAccusations by Disciplina Inspection and Supeision Depaments " and internal policyrequirements such as the "Business Code of Conduct" and "Anti-Corruption and Anti-BribePolicy", establishing a sound complaint and repoing mechanism. We provide employees, suppliers,customers, and other stakeholders with convenient internal and external channels for lodgingcomplaints and repos, encouraging them to promptly and actively provide feedback, complaints,and repos to us when they discover any behavior that may violate business conduct norms,policies, or laws, jointly creating a trustwohy and transparent business environment.
Complaint Mechanism and Whistleblower Protection System
Stakeholders can lodge complaints or reposanonymously or report with their identitydisclosed through the following public channels:
In 2023, the company was notinvolved in any cases related tounfair competition or monopolies.
Complaint and repoing email：
compliance@chinacnd.com
·
··
·
·
Organized activities such as the Integrity Film Week, Carnival, and solicitation of integrity-themed works during theIntegrity Education Month. These activities presented the spirit of integrity in interactive formats, aiming to educate throughenteainment and promote integrity through interaction. The cumulative paicipation exceeded 9,000 people, with over 100pieces of integrity-themed works collected.Leveraged the " Clean C&D " as the main platform for integrity propaganda, utilizing popular formats such as comics andvideos for regular propaganda. This approach closely aligned with the psychological characteristics of employees, enriching thestrategies for integrity education.Conducted integrity-themed lectures for over 2,000 young cadres, key business personnel, and young employees. This includedrecording integrity-themed training videos, conducting integrity education for employees who joined us in the past two yearsthrough the E-learning platform, and conducting exams to evaluate their understanding; provided specialized integrity trainingfor young business backbones to help them clearly understand the bottom line and principles of integrity for state-ownedenterprise business backbones; Conducted integrity education lectures for all employees of subsidiaries such as Xiamen C&DFinancial Leasing Co., Ltd., strengthening their awareness of integrity and self-discipline.C&D Real Estate released WeChat promotional aicles titled "Integrity Book Recommendation - Nourishing the Hea withClean Spirit" and organized an integrity book recommendation activity. Using assessments as a learning tool, we utilizedplatforms such as zhangjianshi, Executive System, and Lexiangla.com to organize nearly 3,000 pay members and cadresfor the online activity "Walking with Clean Spirit - C&D Real Estate Integrity and Self-discipline Knowledge Quiz," fostering apositive atmosphere for clean governance and entrepreneurship.Under the theme "Clear and United Heas," Lianfa Group conducted the Integrity Culture Promotion and Education Month:
18 special sessions on integrity education were held; 1,964 individuals attended screenings of educational documentaries; 39integrity-themed pay classes were conducted through forms like pay lectures and online learning via Pay Building E-Home;integrity knowledge tests were administered to all sta, with a pass rate of 100%; and a themed collection activity titled "ShowFamily Rules, Tell Family Stories" was organized.
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We strictly adhere to relevant laws and regulations such as the "Patent Law of the People'sRepublic of China" and the " Trademark Law of the People's Republic of China," continuouslyimprove our intellectual propey rights management system, and strengthen our intellectualpropey rights protection eos. Our intellectual propey rights include trademarks, patents,copyrights, and trade secrets, which are managed and protected by relevant depaments.We have formulated the " Trademark and Naming Management Measures" to standardizetrademark management practices and utilize trademark strategies eectively to enhancebrand benets. In 2023, we obtained 4 new authorized patents, registered 19 new softwarecopyrights, and secured 90 new trademark registrations.
We strictly adhere to the national tax laws such as the " Enterprise Income Tax Law of the People's Republic of China" and all relevant taxregulations applicable in various business regions, fullling our tax obligations in accordance with the law to ensure tax compliance andtransparency. Tax-related matters are specied in the "Financial Management Regulations," and personnel from relevant depaments areresponsible for daily tax-related work, including regular tax declaration. We continuously monitor changes in tax-related regulations andpolicies in various regions and adjust our tax-related processing accordingly. Adhering to the principles of lawful and honest taxation, wecontribute back to society through tax payment and are recognized as one of the top 100 taxpayers in Fujian Province for multiple consecutiveyears. In 2023, our total tax payment amounted to 1,674,762 Ten-thousand RMB, and no tax-related violations occurred.
Intellectual Propey Rights Protection
Tax Compliance Management
Tax Risk Management
Tax Compliance Training
We incorporate tax risk management into our overall risk control process and establish a full-chain mechanism of "pre-risk reduction,mid-response emphasis, and post-promotion improvement" to eectively manage tax risks. Through proactive dissemination of taxpolicies and regulations, we enhance the sensitivity of all levels of the organization and related personnel to tax risks, identify potentialtax risks in business operations and regulato policies, and implement corresponding control measures. Additionally, we strengthenrisk inspections of various platform companies, conduct timely analysis and summarization of inspection results, implement correctiveactions, and share experiences comprehensively. To ensure the eectiveness of tax management in subsidiaries, we establish a taxliaison mechanism to promptly disseminate various tax policies and requirements downward and repo tax work and inspectionsituations upward. Fuhermore, we implement a system for tax inspections of o-site platforms, with annual assignments of task forcesto audit tax management practices of various platform companies and ensure corrective actions are taken. Additionally, we maintainregular communication and interaction with tax authorities, implementing a centralized commissioner management mechanism forcommunication and consultation on tax matters, thereby enhancing the eciency of tax-enterprise communication.
We conduct regular internal andexternal tax compliance trainingto enhance the awareness oftax compliance among relevanttax personnel and improve theirprofessional capabilities in taxation,ensuring tax compliance. In 2023, weorganized internal training sessionswith themes such as "Supply ChainRisk Prevention System Training - TaxRisk Prevention" and "Promotion thelaunch of Baiwang Digital ElectronicInvoice System". Additionally, externalinstitutions and expes were invitedto conduct seminars on topics like"Construction of Enterprise TaxRisk Compliance with Golden Tax Phase IV" and "Risk Ale for Chinese Enterprises' Outbound Investment", providing guidance andrecommendations for tax risk management and tax-related work. These eos aimed to enhance the awareness of risk prevention amongrelevant personnel and to continually improve our level of tax compliance management.
new authorized patents
new software copyrights
new trademark registrations
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Data Oveiew
Environmental
IndicatorsUnit20222023Environmental investmentAnnual total environmental investmentTen-thousand RMB2,0863,789
Emissions and DischargeGHG
Scope 1 – Direct GHG emissions
tCO2e
285,727434,139Scope 2 – Indirect GHG emissions220,443539,580Scope 3: Other Indirect Emissions- Leased Assets forHousehold Business
/335,525Total GHG emissions (Scope 1+ Scope 2)
506,170973,719Total GHG emissions intensity
tCO2e/ hundred-million RMB ofoperating revenue
61128Air PollutantsNOx emissions
Ton
4449SOx emissions48PM emissions22Wastewater and Related PollutantsTotal wastewater discharges 2m33,149,7698,641,873COD discharge
Ton
347377Ammonia Nitrogen discharge32Total Nitrogen discharge/49WasteHazardous waste generation
Ton
/78Transfer and disposal volume of hazardous waste2363General waste transfer and disposal volume
101,949337,378Including: Industrial waste generation volume/130,772 Household waste generation volume/49,608 Construction waste generation volume/156,998General waste recycling volume30113,500Including: Industrial waste recycled volume/113,079
Household waste recycled volume
Ton
/0Construction waste volume/421Energy ConsumptionElectricity
kWh259,624,703947,373,073 Including: Green electricitykWh392,01010,834,236 Green electricity ratio%0.101.16CoalTon137,412166,254Natural gas
m3105,48839,117,790Thermal
GJ16,48227,266SteamTon/7,193Liqueed petroleum gas
Litre
914,023701,654Diesel（mobile）127,930421,668Diesel（stationa）366,68825,091Liqueed petroleum gasKG1,323,2806,560Water ResourcesWater withdrawalm3/11,923,256Water consumptionm3/3,281,383Water consumption density
m3/ hundred-million RMB ofoperating revenue
/430Recirculating water usagem3/69,500Recirculating water usage percentage%/0.58Packaging MaterialsPackaging materials
Ton
961,000Including: Recyclable packaging materials/200 Non-recyclable packaging materials/800Green Building
Area of green building renovationm2/74,580Basic level of green building
/
/9One-star green building/2Two-star green building/1Three-star green building/0Note1: The increase in our GHG emissions in 2023 compared to 2022 is mainly due to the acquisition of Macalline during the repoing period. If the GHG emissions data from Macalline during the repoing period are excluded and the data for2022 and 2023 are compared on the same basis, the total GHG emissions (Scope 1 + Scope 2) in 2023 decreased by 15,628 tCO2e compared to 2022, a year-on-year decrease of 3.1%.Note2: The increase in wastewater discharge in 2023 compared to 2022 is mainly due to the acquisition of Macalline and the higher production output of Yuantong Paper during the repoing period..Note3.The increase ingeneral waste transfer and disposal volume in 2023 compared to 2022 is mainly due to the acquisition of Macalline and the higher production output of Yuantong Paper during the repoing period.
Note4: The increase in electricity consumption in 2023 compared to 2022 is mainly due to the acquisition of Macalline during the repoing period. If the electricity consumption data from Macalline during the repoing period areexcluded and the data for 2022 and 2023 are compared on the same basis, the electricity consumption in 2023 decreased by 30,207,071 kilowatt-hours compared to 2022, a year-on-year decrease of 11.6%.Note5: The increase in natural gas consumption in 2023 compared to 2022 is primarily attributed to the acquisition of Macalline and the commencement of production at Shandong Jianke Steel during the repoing period.Note6: The increase in heat consumption in 2023 compared to 2022 is mainly due to the acquisition of Macalline during the repoing period. If the heat consumption data from Macalline during the repoing period are excludedand the data for 2022 and 2023 are compared on the same basis, the heat consumption in 2023 is 0, a year-on-year decrease of 100%.
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Market
EmploymentIndicatorsUnit20222023
Total employees
Person32,84749,752Employee CompositionEmployee Composition by GenderMale
Person
20,411 30,837
Female12,436 18,915Employee Composition by Age
Under 30
Person
/ 14,92830-50/ 31,316Over 50/ 3,508
Employee Composition by EducationMasters and above
Person
1,715 2,177Bachelors12,295 19,262
College9,604 13,575Other9,233 14,738Employee Composition by FunctionManagement
Person
1,262 1,596
Technical7,5019,282Business22,090 33,404Financial1,078 3,082Administrative916 2,388Female Management/ 395Female Technical/1,439Female Business/ 13,065Female Financial/ 2,239Female Administrative/ 1,777Management Team CompositionJunior management
Person
/3, 535 Female junior management/1,094 Propoion of female junior management%/31 Management (Mid-level and above)Person/1,517
Female management (Mid-level and above)Person/349Proportion of female management (Mid-level andabove)
%/23Include: Senior management
Person
/8Female senior management/2Propoion of female senior management%/25Local senior managementPerson/6Propoion of local senior management%/75Management Composition by Nationality
ChinaPerson/5,050Other regionsPerson/ 2Labor contractsRatio of signed labor contracts%100100Freedom of Association and Collective BargainingNumber of employees covered by the collectiveagreement
Person/100Employment of Disabled IndividualsNumber of disabled employees hiredPerson526Percentage of disabled employees hired%0.010.05Employee Training (Supply Chain Operations Business)Total annual investment in employee trainingTen-thousand RMB9703,008Total employee training paicipantsPaicipant/209,641Total training hoursHour6,354,3572,138,972Parental LeaveTotal paid parental leave requested by EmployeesDay/4,787
Marlet
IndicatorsUnit20222023
R&D Investment in Science and TechnologyTotal R&D investment amount in science and
technology
Ten-thousand RMB19,06223,651Intellectual Propey RightsNumber of newly registered patentItem1814
Note 7: The increase in the total number of employees in 2023 compared to 2022 is mainly due to the acquisition of Macalline during the repoing period. If the employee data from Macalline during the repoing period areexcluded and the data for 2022 and 2023 are compared on the same basis, the total number of employees in 2023 increased by 2,444 people compared to 2022, a year-on-year growth of 7.44%.
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Work Safety Accident
Extraordina major accident
Case
Major accident00Serious accident00General accident00
GovernanceIndicatorsUnit20222023
Business Ethics
Anti-corruption Advocacy and Training (Supply Chain Operations Business)Propoion of employees briefed on anti-corruptionpolicies and procedures
%
/ 100Proportion of employees received anti-corruptiontraining
/100
Number of shutdownsTime00Hours of shutdownsDay00Occupational Health
Occupational fatalitiesPerson00
Occupational Health & SafetyIndicatorsUnit20222023Work Safety InputTotal annual investment in occupational health andwork safety
Ten-thousand RMB2,388
Safety Training
Total paicipants in occupational safety trainingPaicipant69,356373,368Total paicipant time in occupational safety trainingHour25,69177,558Ratio of attendees for safety training%58100Number of safety emergency drillsTime1,53116,704Number of attendees for safety emergency drillsPaicipant5,594158,370Number of safety oine training sessionTime96131,321Number of safety online training sessionCourse65159
Number of newly registered software copyrights
Item
/19Number of newly registered trademarks/90
Complaint Resolution
Total number of complaints
Case
22,2215,476Total number of complaints resolved22,2205,476Complaint resolution rate%99.99100Supplier Management
Total number of suppliers
Unit
41,397126,728Mainland China/96,415Other regions/30,313Number of new suppliers admitted this year/12,357
Social Contribution
IndicatorsUnit20222023Social ContributionDonations to external organizations
Ten-thousand RMB
3,6122,633Investment in supporting rural revitalization andregional coordinated development
/96Total trade volume among countries along the Beltand Road Initiative
Ten-thousand USD/1,696,078Number of public welfare activities heldTime121348Total volunteer seice paicipantsPaicipant13,09216,204Total volunteer seice hoursHour5,0139,984
133134
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GRI StandardsDisclosuresLocationOmissionGeneral Disclosures
GRI 2: GeneralDisclosures 2021
2-1 Organizational detailsAbout C&D Inc2-2 Entities included in the organization'ssustainability repoing
About This Repo2-3 Repoing period, frequency and contact pointAbout This Repo2-4 Restatements of informationNot Covered In This Repo
This repo does not involverestatements of information2-5 External assurance
About This Repo
Independent Limited Assurance
Repo2-6 Activities, value chain and other businessrelationships
About C&D Inc.
Message from the Chairman
Innovation-Driven, Suppliers, and
Customers2-7 Employees
Human Rights Protection
Data Oveiew2-8 Workers who are not employeesNot Covered In This Repo
The Company does not collectrelevant data during thisrepo period2-9 Governance structure and composition
Sustainable Development
Governance Structure
Appointment of Directors and
Senior Management2-10 Nomination and selection of the highestgovernance body
Appointment of Directors and
Senior Management2-11 Chair of the highest governance body
Appointment of Directors and
Senior Management2-12 Role of the highest governance body inoverseeing the management of impacts
Governance for Sustainable
Development
Material Issue Assessment
Risk and Compliance Management2-13 Delegation of responsibility for managingimpacts
Sustainable Development
Governance Structure
Risk and Compliance Management2-14 Role of the highest governance body insustainability repoing
Sustainable Development
Governance Structure
Material Issue Assessment2-15 Conicts of interestConict of Interest2-16 Communication of critical concernsStakeholders Communication2-17 Collective knowledge of the highest governancebody
Appointment of Directors and
Senior Management2-18 Evaluation of the peormance of the highestgovernance body
Not Covered In This Repo
The Company does not collectrelevant data during thisrepo period2-19 Remuneration policies
Compensation of Director and
Senior Management2-20 Process to determine remuneration
Compensation of Director and
Senior Management2-21 Annual total compensation ratioNot Covered In This Repo
The Company does not collectrelevant data during thisrepo period
GRI StandardsDisclosuresLocationOmission
General Disclosures
GRI 2: GeneralDisclosures 2021
2-22 Statement on sustainable developmentstrategy
Message from the Chairman
2-23 Policy commitments
Addressing Climate ChangePollution Prevention and EcosystemProtectionResource Utilization and CircularEconomyRural Revitalization and PublicSeiceInnovation-Driven, Suppliers, andCustomersHuman Rights ProtectionOccupational Health and SafetyPrevent Commercial Bribe andUnfair Competition
2-24 Embedding policy commitments
Addressing ClimateChangePollution Prevention andEcosystem ProtectionResource Utilization and CircularEconomyRural Revitalization and PublicSeiceInnovation-Driven, Suppliers, andCustomersHuman Rights ProtectionOccupational Health and SafetyPrevent Commercial Bribe andUnfair Competition
2-25 Processes to remediate negativeimpacts
Addressing ClimateChangePollution Prevention andEcosystem ProtectionResource Utilization and CircularEconomyRural Revitalization and PublicSeiceInnovation-Driven, Suppliers, andCustomersHuman Rights ProtectionOccupational Health and SafetyInvestor Relations ManagementRisk and Compliance ManagementPrevent Commercial Bribe andUnfair Competition2-26 Mechanisms for seeking advice andraising concerns
Engage in Community and PreseeCultural HeritageInnovation-Driven, Suppliers, andCustomersHuman Rights ProtectionComplaint Mechanism andWhistleblower Protection SystemStakeholders Communication
2-27 Compliance with laws and regulations
Pollution Prevention and EcosystemProtectionResponsible ProcurementProduct Quality ManagementInformation Security ProtectionResponsible MarketingHuman Rights ProtectionOccupational Health and SafetyRelated Pay TransactionProtection of Minority Shareholders'Rights and InterestsRisk and Compliance ManagementPrevent Commercial Bribe andUnfair Competition
135136
2023建发股份可持续发展报告About This ReportMessage from the ChairmanAbout C&D Inc.AppendixEnvironmentalSocialGovernanceGRI StandardsDisclosuresLocationOmissionGRI 2: GeneralDisclosures 2021
2-28 Membership associations
Suppo IndustDevelopment2-29 Approach to stakeholder engagementStakeholders Communication2-30 Collective bargaining agreementsHuman Rights Protection
Material topicsGRI 3: MaterialTopics 2021
3-1 Management of material topics
Stakeholders CommunicationMaterial Issue Assessment3-2 List of material topicsMaterial Issue Assessment
Economic peormanceGRI 3: MaterialTopics 2021
3-3 Management of material topics
Sustainable DevelopmentGovernance StructureRisk and ComplianceManagement
GRI 201: EconomicPeormance 2016
201-1 Direct economic value generated anddistributed
Sustainable DevelopmentImpact201-2 Financial implications and other risksand oppounities due to climate change
Sustainable DevelopmentRisk Management201-3 Dened benet plan obligations andother retirement plans
Employee Development201-4 Financial assistance received fromgovernment
Employee DevelopmentMarket presenceGRI 3: MaterialTopics 2021
3-3 Management of material topics
Employee Development
Rural Revitalization and Public
SeiceGRI 202: MarketPresence 2016
202-1 Ratios of standard ent level wageby gender compared to local minimum wage
Not Covered In This Repo
The Company does notcollect relevant dataduring this repo period202-2 Propoion of senior managementhired from the local community
Data OveiewIndirect economic impactGRI 3: MaterialTopics 2021
3-3 Management of material topics
Rural Revitalization and Public
SeiceGRI 203: IndirectEconomic Impacts2016
203-1 Infrastructure investments andseices suppoed
Rural Revitalization and Public
Seice203-2 Signicant indirect economic impacts
Rural Revitalization and Public
SeiceProcurement practicesGRI 3: MaterialTopics 2021
3-3 Management of material topics
Responsible Procurement
Promote Viuous Deeds and
Revitalize Rural Areas
GRI StandardsDisclosuresLocationOmission
GRI 204:
ProcurementPractices 2016
204-1 Propoion of spending on localsuppliers
Not Covered In This Repo
The Company does notcollect relevant dataduring this repo periodAnti-corruptionGRI 3: MaterialTopics 2021
3-3 Management of material topics
Anti-Corruption and Anti-Commercial Bribe
GRI 205: Anti-corruption 2016
205-1 Operations assessed for risks relatedto corruption
Anti-Corruption and Anti-Commercial Bribe205-2 Communication and training aboutanti-corruption policies and procedures
Anti-Corruption and Anti-Commercial BribeData Oveiew205-3 Conrmed incidents of corruptionand actions taken
Anti-Corruption and Anti-Commercial BribeData OveiewAnti-competitive behaviorGRI 3: MaterialTopics 2021
3-3 Management of material topics
Anti-Monopoly and Anti-Unfair CompetitionGRI 206: Anti-competitiveBehavior 2016
206-1 Legal actions for anti-competitivebehavior, anti-trust, and monopoly practices
Anti-Monopoly and Anti-Unfair CompetitionData OveiewTaxGRI 3: MaterialTopics 2021
3-3 Management of material topicsTax Compliance Management
GRI 207: Tax 2019
207-1 Approach to taxTax Compliance Management207-2 Tax governance, control, and riskmanagement
Tax Compliance Management207-3 Stakeholder engagement andmanagement of concerns related to tax
Tax Compliance Management207-4 Count-by-count repoingNot Covered In This Repo
The Company does notcollect relevant dataduring this repo periodMaterialsGRI 3: MaterialTopics 2021
3-3 Management of material topics
Addressing Climate
ChangePollution Prevention
and Ecosystem Protection
Resource Utilization and
Circular Economy
GRI 301: Materials2016
301-1 Materials used by weight or volume
GHG Emissions Reduction
Schemes
Implementation of Circular
Economy Practices
Data Oveiew301-2 Recycled input materials used
GHG Emissions Reduction
Schemes
Implementation of Circular
Economy Practices
Data Oveiew301-3 Reclaimed products and theirpackaging materials
GHG Emissions Reduction
Schemes
Implementation of Circular
Economy Practices
Data Oveiew
137138
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GRI StandardsDisclosuresLocationOmissionEnergyGRI 3: MaterialTopics 2021
3-3 Management of material topics
Addressing Climate ChangePollution Prevention andEcosystem ProtectionResource Utilization andCircular Economy
GRI 302: Energy2016
302-1 Energy consumption
Addressing Climate ChangeData Oveiew302-2 Energy consumption outside of theorganization
Addressing Climate ChangeData Oveiew302-3 Energy consumption outside of theorganization
Addressing Climate ChangeData Oveiew302-3 Energy intensity
Addressing Climate ChangeData Oveiew302-4 Reduction of energy consumption
GHG Emissions ReductionSchemesResource Utilization andCircular Economy302-5 Reductions in energy requirements ofproducts and seices
GHG Emissions ReductionSchemesWater and euentsGRI 3: MaterialTopics 2021
3-3 Management of material topics
Pollutants Emissions ControlWater ResourcesManagement
GRI 303: Water andEuents 2018
303-1 Management of water discharge-related impacts
Pollutants Emissions ControlWater ResourcesManagement303-2 Management of water discharge-related impacts
Pollutants Emissions ControlWater ResourcesManagement303-3 Water withdrawalData Oveiew303-4 Water dischargeData Oveiew303-5 Water consumptionData OveiewBiodiversityGRI 3: MaterialTopics 2021
3-3 Management of material topicsBiodiversity Conseation
GRI 304:
Biodiversity 2016
304-1 Operational sites owned, leased,managed in, or adjacent to, protected areasand areas of high biodiversity value outsideprotected areas
Not Covered In This Repo
The company's businessoperation sites areneither within noradjacent to protectedareas and areas of highbiodiversity value outsideprotected areas304-2 Signicant impacts of activities,products and seices on biodiversity
Biodiversity Conseation304-3 Habitats protected or restoredNot Covered In This Repo
The company's businessoperation sites are notlocated within protected orrestored habitats
GRI StandardsDisclosuresLocationOmission
GRI 304:
Biodiversity 2016
304-4 IUCN Red List species and nationalconseation list species with habitats inareas aected by operations
Not Covered In This Repo
The company's businessoperations sites andsurrounding regionsdo not involve aectedhabitatsEmissionsGRI 3: MaterialTopics 2021
3-3 Management of material topics
Addressing Climate ChangePollution Prevention andEcosystem ProtectionData Oveiew
GRI 305: Emissions2016
305-1 Direct (Scope 1) GHG emissions
GHG Emissions ManagementData Oveiew305-2 Energy indirect (Scope 2) GHGemissions
GHG Emissions ManagementData Oveiew305-3 Other indirect (Scope 3) GHGemissions
GHG Emissions ManagementData Oveiew305-4 GHG emissions intensity
GHG Emissions ManagementData Oveiew305-5 Reduction of GHG emissions
GHG Emissions ReductionSchemes305-6 Emissions of ozone-depletingsubstances (ODS)
Not Covered In This Repo
Not involved in relatedemissions305-7 Nitrogen oxides (NOx), sulfur oxides(SOx), and other signicant air emissions
Data Oveiew
Waste
GRI 3: MaterialTopics 2021
3-3 Management of material topicsPollutants Emissions Control
GRI 306: Waste2020
306-1 Waste generation and signicantwaste-related impacts
Pollutants Emissions Control306-2 Management of signicant waste-related impacts
Pollutants Emissions Control
Implementation of Circular
Economy Practices
Resource Recycling306-3 Waste generated
Pollutants Emissions Control
Data Oveiew306-4 Waste diveed from disposal
Pollutants Emissions Control
Implementation of Circular
Economy Practices
Resource Recycling
Data Oveiew306-5 Waste directed to disposal
Pollutants Emissions Control
Data OveiewSupplier environmental assessmentGRI 3: MaterialTopics 2021
3-3 Management of material topicsResponsible Procurement
139140
2023建发股份可持续发展报告About This ReportMessage from the ChairmanAbout C&D Inc.AppendixEnvironmentalSocialGovernanceGRI StandardsDisclosuresLocationOmissionGRI 308: SupplierEnvironmentalAssessment 2016
308-1 New suppliers that were screenedusing environmental criteria
Responsible Procurement308-2 Negative environmental impacts inthe supply chain and actions taken
Responsible Procurement
Employee
GRI 3: MaterialTopics 2021
3-3 Management of material topicsHuman Rights ProtectionGRI 401:
Employment 2016
401-1 New employee hires and employee
turnover
Human Rights ProtectionData Oveiew
401-2 Benets provided to full-time
employees that are not provided to
tempora or pa-time employees
Employee Development
401-3 Parental leave
Employee DevelopmentData Oveiew
Labor management relations
GRI 3: MaterialTopics 2021
3-3 Management of material topicsHuman Rights ProtectionGRI 402: Labor/ManagementRelations 2016
402-1 Minimum notice periods regarding
operational changes
Not Covered In This RepoNot Applicable
Occupational Health and Safety
GRI 3: MaterialTopics 2021
3-3 Management of material topics
Occupational Health andSafety
GRI 403:
Occupational Healthand Safety 2018
403-1 Occupational health and safety
management system
Occupational Health andSafety
403-2 Hazard identication, risk assessment,
and incident investigation
Safety Risk Prevention andControlWorkplace Safety InspectionEmergency SafetyManagement
403-3 Occupational health seices
Employee BenetsOccupational HealthManagementSafety Training Education
403-4 Worker paicipation, consultation,
and communication on occupational health
and safety
Occupational Health andSafety
403-5 Worker training on occupational
health and safety
Safety Training Education
403-6 Promotion of worker health
Employee BenetsOccupational HealthManagementSafety Training Education
403-7 Prevention and mitigation of
occupational health and safety impacts
directly linked by business relationships
Safety Risk Prevention andControlWorkplace Safety InspectionEmergency SafetyManagementSafety Training EducationOccupational HealthManagement
GRI StandardsDisclosuresLocationOmissionGRI 403:
Occupational Healthand Safety 2018
403-8 Workers covered by an occupationalhealth and safety management system
Occupational Health andSafety403-9 Work-related injuries
Occupational HealthManagementData Oveiew403-10 Work-related ill health
Occupational HealthManagementTraining and educationGRI 3: MaterialTopics 2021
3-3 Management of material topicsEmployee Development
GRI 404: Trainingand Education 2016
404-1 Average hours of training per year peremployee
Employee DevelopmentData Oveiew404-2 Programs for upgrading employeeskills and transition assistance programs
Employee Development404-3 Percentage of employeesreceiving regular peormance and careerdevelopment reviews
Employee DevelopmentDiversity and equal oppounityGRI 3: MaterialTopics 2021
3-3 Management of material topicsHuman Rights ProtectionGRI 405: Diversityand EqualOppounity 2016
405-1 Diversity of governance bodies and
employees
Human Rights Protection
405-2 Ratio of basic sala and remuneration
of women to men
Not Covered In This Repo
The Company does notcollect relevant dataduring this repo periodNon-discriminationGRI 3: MaterialTopics 2021
3-3 Management of material topicsHuman Rights ProtectionGRI 406: Non-discrimination 2016
406-1 Incidents of discrimination and
corrective actions taken
Human Rights ProtectionFreedom of association and collective bargainingGRI 3: MaterialTopics 2021
3-3 Management of material topics
Human Rights Protection
Responsible ProcurementGRI 407: Freedomof Associationand CollectiveBargaining 2016
407-1 Operations and suppliers in whichthe right to freedom of association andcollective bargaining may be at risk
Human Rights Protection
Responsible Procurement
Child labor
GRI 3: MaterialTopics 2021
3-3 Management of material topics
Human Rights Protection
Responsible ProcurementGRI 408: ChildLabor 2016
408-1 Operations and suppliers atsignicant risk for incidents of child labor
Human Rights Protection
Responsible Procurement
Forced or compulso labor
GRI 3: MaterialTopics 2021
3-3 Management of material topics
Human Rights Protection
Responsible Procurement
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GRI 409: Forced orCompulso Labor2016
409-1 Operations and suppliers atsignicant risk for incidents of forced orcompulso labor
Human Rights ProtectionResponsible Procurement
Security practicesGRI 3: MaterialTopics 2021
3-3 Management of material topicsHuman Rights ProtectionGRI 410: SecurityPractices 2016
410-1 Security personnel trained in human
rights policies or procedures
Not Covered In This Repo
The Company does notcollect relevant dataduring this repo periodRight of indigenous peoples
GRI 3: MaterialTopics 2021
3-3 Management of material topics
Rural Revitalization and PublicSeiceGRI 411: Rights ofIndigenous Peoples2016
411-1 Incidents of violations involving rights
of indigenous peoples
Engage in Community andPresee Cultural HeritageLocal communitiesGRI 3: MaterialTopics 2021
3-3 Management of material topics
Rural Revitalization and PublicSeiceGRI 413: LocalCommunities 2016
413-1 Operations with local community
engagement, impact assessments, and
development programs
Rural Revitalization and PublicSeice
413-2 Operations with signicant actual
and potential negative impacts on local
communities
Not Covered In This RepoNot ApplicableSupplier social assessmentGRI 3:MaterialTopics 2021
3-3 Management of material topics
Responsible Procurement
Supply Chain Risk
ManagementGRI 414: SupplierSocial Assessment2016
414-1 New suppliers that were screenedusing social criteria
Responsible Procurement
Data Oveiew414-2 Negative social impacts in the supplychain and actions taken
Responsible ProcurementPublic policyGRI 3: MaterialTopics 2021
3-3 Management of material topicsNot Covered In This RepoNot ApplicableGRI 415: PublicPolicy 2016
415-1 Political contributionsNot Covered In This RepoNot ApplicableCustomer health and safetyGRI 3: MaterialTopics 2021
3-3 Management of material topics
Product Quality ManagementCustomer Rights ProtectionGRI 416: CustomerHealth and Safety2016
416-1 Assessment of the health and safety
impacts of product and seice categories
Product Quality ManagementCustomer Rights Protection
416-2 Incidents of non-compliance
concerning the health and safety impacts of
products and seices
Product Quality ManagementCustomer Rights Protection
GRI StandardsDisclosuresLocationOmission
Marketing and labelingGRI 3: MaterialTopics 2021
3-3 Management of material topicsResponsible Marketing
GRI 417: Marketingand Labeling 2016
417-1 Requirements for product and seiceinformation and labeling
Responsible Marketing417-2 Incidents of non-complianceconcerning product and seice informationand labeling
Responsible Marketing417-3 Incidents of non-complianceconcerning marketing communications
Responsible MarketingCustomer privacyGRI 3: MaterialTopics 2021
3-3 Management of material topics
Customer Rights Protection
Information Security
ProtectionGRI 418: CustomerPrivacy 2016
418-1 Substantiated complaints concerningbreaches of customer privacy and losses ofcustomer data
Information Security
Protection
Data Oveiew
143144
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ISDS Index
IFRS S1CoreElements
Disclosure RecommendationsDisclosure Placement
Governance
a) The governance body(s) (which can include aboard,committee or equivalent body charged with governance)or individual(s) responsible for oversight of sustainability-related risks and oppounities.
Sustainable Development GovernanceStructureAppointment of Directors and SeniorManagementRisk and Compliance Managementb) Management’s role in the governance processes,controls and procedures used to monitor, manage andoversee sustainability-related risks and oppounities.
Sustainable Development GovernanceStructureAppointment of Directors and SeniorManagementRisk and Compliance Management
Strategy
a) The sustainability-related risks and oppounitiesthat could reasonably be expected to aect the entity’sprospects within the time horizons—sho, medium or longterm.
Sustainable Development RiskManagementb) The current and anticipated eects of sustainability-related risks and oppounities on the entity’s businessmodel and value chain, and where in the entity’s businessmodel and value chain sustainability-related risks andoppounities are concentrated.
Sustainable Development RiskManagementc) How the entity has responded to, and plans to respondto, sustainability-related risks and oppounities in itsstrategy and decision-making, and the progress againstplans the entity has disclosed in previous repoingperiods, including quantitative and qualitative information,and trade-os between sustainability-related risks andoppounities that the entity considered.
Sustainable Development RiskManagementd) The quantitative and qualitative eects of sustainability-related risks and oppounities on the entity’s nancialposition, nancial peormance and cash ows for therepoing period, and the sustainability-related risks andoppounities identied for which there is a signicant riskof a material adjustment within the next annual repoingperiod to the caring amounts of assets and liabilitiesrepoed in the related nancial statements, and how theentity expects its nancial position, nancial peormanceand cash ows to change over the sho, medium and longterm, given its strategy to manage sustainability-relatedrisks and oppounities.
Not Applicable
e) The resilience of the entity’s strategy and its businessmodel to those sustainability-related risks.
Sustainable Development RiskManagement
CoreElements
Disclosure RecommendationsDisclosure Placement
Risk Management
a) The processes and related policies theentity uses to identify, assess, prioritize andmonitor sustainability-related risks, includinginformation about: the inputs and parametersthe entity uses, whether and how the entity usesscenario analysis to inform its identication ofsustainability-related risks, whether and how theentity prioritizes sustainability-related risks, howthe entity assesses the nature, likelihood andmagnitude of the eects of those risks.
Sustainable Development Risk ManagementRisk and Compliance Management
b) The processes the entity uses to identify,assess, prioritize and monitor sustainability-related oppounities, including: whether andhow the entity uses scenario analysis to informits identication of sustainability-relatedoppounities.
Sustainable Development Risk Management
c) The extent to which, and how, the processesthe entity uses to identify, assess, prioritizeand monitor sustainability-related risks andoppounities are integrated into and inform theentity’s overall risk management process.
Sustainable Development Risk ManagementRisk and Compliance Management
Metrics andtargets
a) Metrics required by an applicable IFRSSustainability Disclosure Standard.
EnvironmentalSocialGovernanceb) Metrics the entity uses to measure and monitorsustainability-related risks or opportunities andits peormance in relation to that sustainability-related risk or oppounity.
EnvironmentalSocialGovernance
c) Any targets the entity has set it is required tomeet by law or regulation.
EnvironmentalSocialGovernance
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2023建发股份可持续发展报告About This ReportMessage from the ChairmanAbout C&D Inc.AppendixEnvironmentalSocialGovernance
IFRS S2CoreElements
Disclosure RecommendationsDisclosure Placement
Governance
a) The governance body(s) (which can include a board,committee or equivalent body charged with governance)or individual(s) responsible for oversight of climate-related risks and oppounities.
Sustainable Development GovernanceStructureAppointment of Directors and SeniorManagementRisk and Compliance Managementb) Management’s role in the governance processes,controls and procedures used to monitor, manage andoversee climate-related risks and oppounities.
Sustainable Development GovernanceStructureAppointment of Directors and SeniorManagementRisk and Compliance Management
Strategy
a) The climate-related risks and oppounities that couldreasonably be expected to aect the entity’s prospectswithin time horizons—sho, medium or long term,whether the entity considers the risk to be a climate-related physical risk or climate-related transition risk.
Sustainable Development RiskManagementb) The current and anticipated eects of climate-relatedrisks and oppounities on the entity’s business modeland value chain, and where in the entity’s business modeland value chain climate-related risks and oppounitiesare concentrated.
Sustainable Development RiskManagementc) Information about how the entity has respondedto, and plans to respond to, climate-related risks andoppounities in its strategy and decision-making,including how the entity sets targets, how the entity isresourcing and quantitative and qualitative informationabout the disclosed progress of plans.
Sustainable Development RiskManagementd) The quantitative and qualitative eects of thoseclimate-related risks and oppounities on the entity’snancial position, nancial peormance and cash owsfor the repoing period, the climate-related risks andoppounities identied in paragraph 16(a) for whichthere is a signicant risk of a material adjustment withinthe next annual repoing period to the caring amountsof assets and liabilities repoed in the related nancialstatements, and how the entity expects its nancialposition, nancial peormance and cash ows to changeover the sho, medium and long term, given its strategyto manage climate-related risks and oppounities.
Not Applicable
e) The entity’s assessment of its climate resilience,including the entity’s assessment for its strategy andbusiness model, the signicant areas of unceaintyconsidered in the entity’s assessment of its climateresilience and the entity’s capacity to adjust or adapt itsstrategy and business model to climate change over thesho, medium and long term. The entity shall use climate-related scenario analysis to assess its climate resilienceand disclose how and when the climate-related scenarioanalysis was carried out, including information about theinputs the entity used, the key assumptions the entitymade in the analysis and the repoing period in whichthe climate-related scenario analysis was carried out.
Sustainable Development RiskManagement
CoreElements
Disclosure RecommendationsDisclosure Placement
Risk Management
d) The processes and related policies the entityuses to identify, assess, prioritize and monitorclimate-related risks, including informationabout: the inputs and parameters the entity uses,whether and how the entity uses climate-relatedscenario analysis to inform its identication ofclimate-related risks, whether and how the entityprioritizes climate-related risks, how the entityassesses the nature, likelihood and magnitude ofthe eects of those risks.
Sustainable Development Risk ManagementRisk and Compliance Management
e) The processes the entity uses to identify,assess, prioritize and monitor climate-relatedoppounities, including information aboutwhether and how the entity uses climate-relatedscenario analysis to inform its identication ofclimate-related oppounities.
Sustainable Development Risk Management
f) The extent to which, and how, the processes foridentifying, assessing, prioritizing and monitoringclimate-related risks and oppounities areintegrated into and inform the entity’s overall riskmanagement process.
Sustainable Development Risk ManagementRisk and Compliance Management
Metrics and
targets
a) The cross-indust metric categories ofgreenhouse gas emissions, internal carbonprices, the percentage of executive managementremuneration recognized in the current periodthat is linked to climate-related considerations,capital deployment towards climate-related risksand oppounities, the amount and percentageof assets or business activities vulnerable toclimate-related risks and oppounities.
GHG Emissions ManagementGHG Emissions Reduction SchemesSustainable Development Risk ManagementSustainable Development Governance Structure
b) Indust-based metrics that are associatedwith one or more paicular business models,activities or other common features thatcharacterize paicipation in an indust.
GHG Emissions Management
c) The quantitative and qualitative climate-relatedtargets the entity has set or it is required to meetby law or regulation, progress towards reachingthe target, information about its peormance,and each greenhouse gas emissions target.
EnvironmentalSocialGovernance
147148
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SASB Index
SASB TopicsAccounting MetricsLocation
Energy Management inRetail & Distribution
CG-MR-130a.1:
(1)Total energy consumed
(2)Percentage grid electricity
(3)Percentage renewable energy
Data Oveiew
Data Security
CG-MR-230a.1:
Discussion of management approach toidentifying and addressing data security risks
Information Security ProtectionCG-MR-230a.2:
(1)Number of data security breaches
(2)Percentage involving customers’personally
identiable information (PII)
(3)Number of customers aected
The Company does not collect
relevant data during this repo period
Fair Labor Practices
CG-MR-310a.1:
(1)Average hourly wage
(2)Percentage of in-store employees earning
minimum wage, by region
Not Covered In This RepoCG-MR-310a.2:
Employee turnover rate for in-store employees
(1)Volunta
(2)Involunta
Not Covered In This Repo
Amount of legal and regulato nes andsettlements associated with labor law violations
Human Rights Protection
Workforce Diversity &Inclusion
CG-MR-330a.1:
Percentage of gender and racial/ethnic grouprepresentation for
(1)Management
(2)All other employees
Human Rights Protection
Data OveiewCG-MR-330a.2:
Amount of legal and regulato nes andsettlementsassociated with employmentdiscrimination
Human Rights Protection
Product sourcing,Packaging, andMarketing
CG-MR-410a.1:
Revenue from products third-pay ceiedto environmental and/or social sustainabilitystandards
The Company does not collect
relevant data during this repo periodCG-MR-410a.2:
Description of processes to assess and managerisks and/or hazards associated with chemicals inproducts
Pollution Prevention and Ecosystem
Protection
SASB TopicsAccounting MetricsLocation
Product sourcing,Packaging, andMarketing
CG-MR-410a.3:
Description of strategies to reduce theenvironmental impact of packaging
Emissions Reduction SchemesCG-MR-000.A:
(1)Number of retail locations
(2)Number of distribution centers
Not ApplicableCG-MR-000.B:
Total area of (m2):
(1)Retail space
(2)Distribution centers
Not Applicable
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2023建发股份可持续发展报告About This ReportMessage from the ChairmanAbout C&D Inc.AppendixEnvironmentalSocialGovernance
Indicators Reference for ESG Repos of ListedChinese Central State-Owned Enterprises
Environment
Prima IndicatorsSeconda IndicatorsTeia IndicatorsLocation
E.1 Resource Consumption
E.1.1 Water Resource
E.1.1.1 Fresh-water consumptionData OveiewE.1.1.2 Circulating water usageData OveiewE.1.1.3 The propoion ofcirculating water usage
Data OveiewE.1.1.4 Water resourceconsumption intensity
Data Oveiew
E.1.2 Materials
E.1.2.1 Consumption of non-renewable materials
Data OveiewE.1.2.2 Consumption of toxic andhazardous materials
Not Covered In This
RepoE.1.2.3 Material consumptionintensity
Data Oveiew
E.1.3 Energy
E.1.3.1 Fossil energy consumption
GHG Emissions
ManagementData
OveiewE.1.3.2 Non-fossil energyconsumption
GHG Emissions
ManagementData
OveiewE.1.3.3 The propoion of non-fossil energy consumption
Data OveiewE.1.3.4 The total energyconsumption
GHG Emissions
ManagementData
OveiewE.1.3.5 The energy consumptionintensity
Data OveiewE.1.4 Packaging materials
E.1.4.1 The amount of packagingmaterials used
Resource Recycling
Data OveiewE.1.4.2 Light-weighting andreduction of packaging materials
Resource RecyclingE.2 Pollution prevention andcontrol
E.2.1 Wastewater
E.2.1.1 The compliance status ofwastewater discharge
Pollutants Emissions
ControlE.2.1.2 Wastewater managementand emission reduction measures
Pollutants Emissions
Control
Prima IndicatorsSeconda IndicatorsTeia IndicatorsLocation
E.2 Pollution prevention andcontrol
E.2.1 Wastewater
E.2.1.3 The compliance status ofwastewater dischargez
Data OveiewE.2.1.4 Volume of pollutantsdischarged in wastewater
Data OveiewE.2.1.5 Concentration of pollutantsdischarged in wastewater
Data Oveiew
E.2.2 Exhaust Air
E.2.2.1 Compliance status ofexhaust gas emissions
Pollutants Emissions
ControlE.2.2.2 Volume of air pollutantsemitted
Data OveiewE.2.2.3 Concentration of airpollutants emitted
Pollutants Emissions
Control
E.2.3 Solid waste
E.2.3.1 Compliance with legalregulations on solid waste disposal
Pollutants Emissions
ControlE.2.3.2 Management of generalindustrial solid waste
Pollutants Emissions
ControlE.2.3.3 Disposal volume of generalindustrial solid waste
Pollutants Emissions
ControlE.2.3.4 Management of hazardouswaste
Pollutants Emissions
ControlE.2.3.5 Volume of hazardous wastedisposed
Data Oveiew
E.3 Climate changeE.3.1 GHG emissions
E.3.1.1 Sources and types of GHGemissions
GHG Emissions
ManagementE.3.1.2 GHG EmissionsManagement Management ofgreenhouse gas emissions
GHG Emissions
ManagementE.3.1.3 Scope 1 emission
GHG Emissions
Management
Data OveiewE.3.1.4 Scope 2 emission
GHG Emissions
Management
Data OveiewE.3.1.5 Scope 3 emissionData OveiewE.3.1.6 GHG emission intensity
GHG Emissions
Management
Data Oveiew
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E.3 Climate change
E.3.2 GHG emissions
E.3.2.1 Sources and types of GHGemissions
GHG EmissionsManagementE.3.2.2 GHG Emissions ManagementManagement of greenhouse gasemissions
GHG EmissionsManagement
E.3.3 Environmental rightstrading
E.3.3.1 Paicipation in the carbonemissions trading market
Not Covered In ThisRepoE.3.3.2 Paicipation in the energyrights, water rights, and pollutionrights trading markets
Not Covered In ThisRepoE.3.3.3 Paicipation in greenelectricity trading
Not Covered In ThisRepoE.3.4 Climate risk managementE.3.4.1 Climate risk management
Sustainable DevelopmentRisk ManagementE.4 Biodiversity
E.4.1 Impact of production,seices, and products onbiodiversity
E.4.1.1 Impacts of production,seices, and products on biodiversity
Biodiversity Conseation
E.5 Measures for resource andenvironmental managementsystems
E.5.1 Setting Low-CarbonDevelopment Goals andStrategic Measures
E.5.1.1 Setting low-carbondevelopment goals and strategicmeasures
Sustainable DevelopmentFramework
E.5.2 Resource managementmeasures
E.5.2.1 Water resource management
Water ResourcesManagementE.5.2.2 Material use management
Green Products Designand R&DImplementation of CircularEconomy PracticesResource RecyclingE.5.2.3 Energy use and energyeciency management
GHG EmissionsManagementGHG Emissions ReductionSchemesE.5.3 Energy-saving and carbonreduction monitoring, statisticalrepoing, and assessmentsystem
E.5.3.1 Energy-saving and carbonreduction monitoring, statisticalrepoing, and assessment system
Energy-saving andEmission-reductionActions
E.5.4 Green environmentalactions and measures
E.5.4.1 Clean production
Green Products Designand R&DPollutants EmissionsControlE.5.4.2 Green technology upgradingand recycling
Pollutants EmissionsControlImplementation of CircularEconomy PracticesResource RecyclingE.5.4.3 Green building renovation
Green Products Designand R&DE.5.4.4 Green oce and operations
Energy-saving andEmission-reductionActionsResource Recycling
Prima IndicatorsSeconda IndicatorsTeia IndicatorsLocation
E.5 Measures for resourceand environmentalmanagement systems
E.5.4 Green environmentalactions and measures
E.5.4.5 Green procurement andgreen supply chain management
Supplier ManagementE.5.4.6 Environmentalconseation public activities
Biodiversity
Conseation
Implementation of
Circular Economy
Practices
Resource Recycling
E.5.5 Green Low-CarbonCeication
E.5.5.1 EnvironmentalManagement SystemCeication
Pollution Prevention and
Ecosystem ProtectionE.5.5.2 Green and Low-CarbonEnterprise Ceication
Not Covered In This
RepoE.5.5.3 Green and Low-CarbonProduct and Seice Ceication
Not Covered In This
RepoE.5.6 Legal compliance inenvironmental matters
E.5.6.1 Emergency Response Planfor Environmental Incidents
Emergency Safety
ManagementE.5.6.2 Environmental violations
Environmental
Peormance
Social
Prima IndicatorsSeconda IndicatorsTeia IndicatorsLocation
S1 Employee rights
S1.1 Employee recruitmentand employment
S1.1.1 Corporate recruitmentpolicy and implementation
Human Rights
Protection
Employee
DevelopmentS1.1.2 Employee structure
Human Rights
Protection
Data OveiewS1.1.3 Avoiding child labor andforced labor
Human Rights
Protection
S1.2 Employeecompensation and benets
S1.2.1 Compensation philosophyand policy
Human Rights
Protection
Employee
DevelopmentS1.2.2 Working hours and restand leave
Employee
Development
Occupational Health
and Safety
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S1 Employee rights
S1.2 Employee compensationand benets
S1.2.3 Compensation and benetssecurity
Employee DevelopmentS1.2.4 Employee democraticmanagement
Human Rights
Protection
S1.3 Employee health andsafety
S1.3.1 Employee occupational healthand safety management
Occupational Health
and SafetyS1.3.2 Employee safety risk prevention
Occupational Health
and SafetyS1.3.3 Response to safety incidentsand work-related injuries
Occupational Health
and SafetyS1.3.4 Employee care and assistance
Occupational Health
and Safety
Employee Development
S1.4 Employee developmentand training
S1.4.1 Employee motivation andpromotion policy
Human Rights
Protection
Employee Development
S1.4.2 Employee education andtraining
Supply Chain Risk
Management
Information Security
Protection
Responsible Marketing
Human Rights
Protection
Employee Development
Occupational Health
and SafetyS1.4.3 Employee career planning andjob change suppo
Employee Development
Data Oveiew
S1.5 Employee satisfaction
S1.5.1 Employee satisfaction sueyNot Covered In this Repo
S1.5.2 Labor disputes
Human Rights
ProtectionS1.5.3 Employee turnover situation
Human Rights
Protection
Data Oveiew
S2 Product and seicemanagement
S2.1 Product safety and quality
S2.1.1 Production standardmanagement policies and measures
Innovation-Driven,
Suppliers, and Customers
Occupational Health and
SafetyS2.1.2 Quality management
Product Quality
Management
Prima IndicatorsSeconda IndicatorsTeia IndicatorsLocation
S2 Product and seicemanagement
S2.1 Product safety andquality
S2.1.3 Product recall and withdrawalNot Covered In this RepoS2.1.4 Negative incidents related toproducts or seices
Product QualityManagementCustomer RightsProtection
S2.2 Customer seice andrights
S2.2.1 Customer satisfaction
Customer RightsProtectionS2.2.2 Customer complaints andhandling
Customer RightsProtectionData OveiewS2.2.3 Customer information andprivacy protection
Customer RightsProtectionInformation SecurityProtection
S2.3 Innovation development
S2.3.1 R&D and innovationmanagement system
Product Developmentand InnovationS2.3.2 R&D investment
Product Developmentand InnovationS2.3.3 Innovation achievements
Product Developmentand InnovationS2.3.4 Intellectual propeyprotection
Intellectual PropeyRights Protection
S3 Supply Chain Safety andManagement
S3.1 Supplier Management
S3.1.1 Supplier selection andmanagement
ResponsibleProcurementS3.1.2 Number and distribution ofsuppliers
Data Oveiew
S3.2 Supply ChainManagement
S3.2.1 Supply chain managementpolicies and measures
Supply Chain RiskManagementS3.2.2 Supply chain securityassurance and emergency plan
ResponsibleProcurementSupply Chain RiskManagementS3.2.3 Major risks and impacts(supply chain)
Supply Chain RiskManagementS4 Social contributionS4.1 Tax payment situationS4.1.1 Tax payment situation
Tax ComplianceManagement
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S4 Social contribution
S4.2 Community co-building
S4.2.1 Policies and measures forpaicipating in local communityconstruction
Rural Revitalizationand Public SeiceS4.2.2 Contribution and impact onthe local community
Rural Revitalizationand Public Seice
S4.3 Social welfare activities
S4.3.1 Policies and measures forpaicipating in social welfareactivities
C&D WarmthConveying toChildrenGo Beyond in SocialWelfareS4.3.2 Investment andeectiveness in paicipating insocial welfare activities
C&D WarmthConveying toChildrenGo Beyond in SocialWelfareData Oveiew
S4.3.3 Construction of anaccessible environment
Engage inCommunity andPresee CulturalHeritageC&D WarmthConveying toChildrenGo Beyond in SocialWelfare
S4.4 National strategyresponse
S4.4.1 Industrial transformation
Suppo Livelihoodswith StabilizedSupplyProduct Developmentand InnovationSuppo IndustDevelopment
S4.4.2 Rural revitalization andregional collaborative development
Promote ViuousDeeds and RevitalizeRural AreasSuppo Livelihoodswith StabilizedSupplyEngage inCommunity andPresee CulturalHeritageData Oveiew
S4.4.3 Belt and Road initiative andoverseas responsibility fulllment
Suppo Livelihoodswith StabilizedSupplyEmployeeDevelopmentSuppo IndustDevelopmentData OveiewS4.4.4 Indust characteristicsand other social responsibilityfulllment situations
Innovation-Driven,Suppliers, andCustomersPromote Viuous Deedsand Revitalize RuralAreasSuppo Livelihoodswith Stabilized SupplyData Oveiew
GovernancePrima IndicatorsSeconda IndicatorsTeia IndicatorsLocation
G1 Governance strategy andorganizational structure
G1.1 Governance strategy andprocesses
G1.1.1 Governance strategyformulation
SustainableDevelopmentGovernance StructureShareholders' Rights andInterestsSustainableDevelopment FrameworkG1.1.2 Governance strategysupeision process
Sustainable DevelopmentGovernance StructureStakeholdersCommunicationRisk and ComplianceManagementG1.1.3 Governance strategyapproval and review process
Protection of MinorityShareholders' Rights andInterestsG1.1.4 Pay-building leadershipNot Covered In This Repo
G1.2 Organizationalcomposition and functions
G1.2.1 Ownership responsibilities
Protection of MinorityShareholders' Rights andInterestsRisk and ComplianceManagementG1.2.2 Board of directors,supeiso board, andmanagement organizationalstructure and functions
Sustainable DevelopmentGovernance StructureAppointment of Directorsand Senior ManagementProtection of MinorityShareholders' Rights andInterestsG1.2.3 Appointment proceduresand composition of the board ofdirectors, supeiso board, andmanagement
Appointment of Directorsand Senior Management
G1.3 Compensationmanagement
G1.3.1 Compensation plan fordirectors and supeisors
Compensation ofDirector and SeniorManagementG1.3.2 Transparency of the board'scompensation
Compensation of Directorand Senior ManagementG1.3.3 Reasonableness ofmanagement compensation
Compensation ofDirector and SeniorManagement
G2 Standardized governanceG2.1 Internal control
G2.1.1 Internal audit
Risk and ComplianceManagementG2.1.2 Internal control structure,mechanisms, and processes
Risk and ComplianceManagement
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G2 Standardized governance
G2.2 Integrity construction
G2.2.1 Integrity construction systemstandards
Anti-Corruption and Anti-Commercial BribeG2.2.2 Eectiveness of integrityconstruction measures
Anti-Corruption and Anti-Commercial Bribe
G2.3 Fair competition
G2.3.1 Fair competition system standards
Anti-Monopoly and Anti-Unfair CompetitionComplaint Mechanism andWhistleblower ProtectionSystemG2.3.2 Eectiveness of fair competitionmeasures
Anti-Monopoly and Anti-Unfair CompetitionAnti-Corruption and Anti-Commercial Bribe
G3 Investor relations managementand shareholder rights
G3.1 Investor relations management
G3.1.1 Investor relations managementstrategy
Protection of MinorityShareholders' Rights andInterestsG3.1.2 Investor communication
Protection of MinorityShareholders' Rights andInterestsG3.1.3 Construction of investor relationsmanagement depament
Protection of MinorityShareholders' Rights andInterests
G3.2 Shareholder rights
G3.2.1 Shareholder (general) meetingsituation
Protection of MinorityShareholders' Rights andInterestsG3.2.2 Shareholder communicationsituation
Protection of MinorityShareholders' Rights andInterestsStakeholders CommunicationG3.2.3 Shareholder's right to know andpaicipate in decision-making
Protection of MinorityShareholders' Rights andInterestsG3.3 Creditor rights
G3.3.1 Credit situationNot Covered In This RepoG3.3.2 Bond market peormance situationNot Covered In this Repo
G4 Information disclosuretransparency
G4.1 Information disclosure system
G4.1.1 Financial information disclosure
Protection of MinorityShareholders' Rights andInterestsG4.1.2 Non-nancial informationdisclosure
Protection of MinorityShareholders' Rights andInterestsG4.2 Quality of informationdisclosure
G4.2.1 Regular supeision, audit, andevaluation of all disclosed information
Not Covered In This RepoG5 Compliant operation and riskmanagement
G5.1 Compliant operationG5.1.1 Compliant operation system
Risk and Compliance
Management
Anti-Corruption and Anti-
Commercial Bribe
Prima IndicatorsSeconda IndicatorsTeia IndicatorsLocation
G5 Compliant operation andrisk management
G5.1 Compliant operation
G5.1.2 Construction status of thecompliance system
Risk and ComplianceManagementG5.1.3 Specic process ofcompliance review
Risk and ComplianceManagement
G5.2 Risk management
G5.2.1 Risk identication andearly warning
Risk and ComplianceManagementSustainableDevelopment RiskManagementG5.2.2 Risk control and tracking
Risk and ComplianceManagementSustainableDevelopment RiskManagementG5.2.3 Risk repoing andmanagement
SustainableDevelopment RiskManagementRisk and ComplianceManagement
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Independent Limited Assurance Report
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