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建发股份:C&D Inc. 2020 Corporate Social Responsibility Report & ESG Report2021-04-20  

                        About this Report
Report Notes                                                                                           Reporting Principles
This report is the annual social responsibility report issued by the Company for the thirteenth        This report has been prepared with reference to the "core programme" of the Global Sustainability
consecutive year. Based on the principles of objectivity, standardization, transparency and            Standards Board (GSSB) “GRI standards”, and has made extensive reference to the Guidelines on
comprehensiveness, our report aims to truly reflect the practice and development of corporate social   Environmental Information Disclosure of Listed Companies issued by the Shanghai Stock Exchange
responsibility of the Company in 2020. It mainly expounds the practice and performance of the          and the Appendix 27 of "Environmental, Social and Governance Reporting Guide" of the Main
Company in corporate governance, social responsibility and environmental protection in the past year   Board Listing Rules issued by the Stock Exchange of Hong Kong Ltd..
from various angles related to social responsibility.

The last report was issued on April 17, 2020.
                                                                                                       Report Data Description
Scope of Reporting                                                                                     The financial data of this report are from the annual report for 2020 and the annual reports over the
                                                                                                       years prepared by C&D Inc. in accordance with the accounting standards of China. Other data are
This report takes Xiamen C&D Incorporated as the major body, including all wholly-owned subsidiaries   mainly for 2020, and include some data for previous years. The currency of measurement in this
and holding subsidiaries. The reporting period is from January 1, 2020 to December 31, 2020. In view   report is CNY unless otherwise specified.
of the continuity and comparability of disclosures, the content of some information is appropriately
extended forward or backward.
                                                                                                       Report Release Form
Report Specifications                                                                                  This report is distributed in the form of an electronic document. Readers can visit the Shanghai Stack
                                                                                                       Exchange website (http://www.sse.com.cn) and the official website of the Company (http://www.
Unless otherwise specified, Xiamen C&D Incorporated is referred to as “C&D Inc.”, "the Company",     chinacnd.com).
or "we". C&D Realty Corp., Ltd., our holding subsidiary company, is referred to as "C&D Realty", and
Lianfa Group Co.,Ltd.,our holding subsidiary company, is referred to as "Lianfa Group".




                                                                                                                                       01   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
厦门建发股份有限公司 2020 社会责任报告   02
Letter from the Chairman



In 2020, the international and domestic environment was
complicated. The international and domestic environment
                                                                                                      The operation revenue reaching                        Raising by
was complicated, and the unstable and uncertain elements
obviously added. Faced with the risks and challenges that never
occurred, C&D Inc. had met our challenges head-on, moved                                              432.9            billion CNY                          28.38%
determinedly forward, and worked hard and fought adversity                                                                                                  compared with last year
in close solidarity. We made efforts to provide our clients with
professional service, reciprocate for our shareholders, grow
up with our partners, unlock the development potential of the
                                                                                                        Ranked by
                                                                                                                                                                           3
employees, and create social values that in accordance with
ethics. In 2020, the Company had stably realized business
development, with the operation revenue reaching 432.9 billion                                          31       th
                                                                                                        in the “ Top 500 of China Listed
                                                                                                                                                             Raising by
                                                                                                                                                             compared to last year
CNY, which raised by 28.38% compared with last year. We
                                                                                                        Company in 2020”
were selected on the Fortune's List for consecutive 20 years,
and ranked by 31st on the Top 500 of China Listed Company of
2020, which raised by 3 compared with last year.




                                                                   We committed to social responsibility by actively taking the responsibility of related stakeholders, and marching froward the
                                                                   harmonious development with the clients, shareholders, partners, employees and the society:

                                                                   We coordinated epidemic control with business growth, actively ensured stability on six fronts and maintained security in six areas,
                                                                   and guaranteed the stabilization of industry chain and supply chain. Apart from serving the real economy, the Company kept enhance
                                                                   the internal driving force. In 2020, the business operation scope of supply chain and the sales amount of real estate business had hit
                                                                   another record high.

                                                                                                                                     03   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                                                                                             talents together.
We actively responded to the Belt and Road Initiative, and continuously promoted the strategy of
globalization. We helped to guarantee China’s food security, actively organized importing goods, with       We carry out the green and low-carbon strategy, making every effort for marching toward an
the annual operation amount of agriculture goods reaching more than 20 million tons and increased            energy saving and green enterprise. The Company adheres to the concept of “lucid waters and
by more the 120%. We took the responsibility of critical battles against the epidemic by adding the          lush mountains are invaluable assets” by actively responding to the climate change, strengthening
number of C&D Inc. special trains of China-Europe freight trains, and transporting more than 10,000          monitoring on wastes discharge, implementing garbage sorting, and promoting paperless office during
masks to support overseas fighting the pandemic. The stable operation of C&D Inc. special trains of          the operation of daily work; In the process of architectural design and construction, we integrate
China-Europe freight trains had built an important logistic channel for guaranteeing the trades and          the design concept of green and environmental, carry out renovation to save energy and reduce
international cooperation between China and Russia. By diversified business model, we provided our           consumption, and use energy-saving and environmental protection materials, to improve the energy
clients with supply chain solution that gathering business service, logistic service, information service,   efficiency and continuously develop green construction. In 2020, C&D Realty obtained several green
financial service, and have achieved strategic cooperation with several large domestic and foreign           construction certificates in national wide, continuously promoting green operation.
enterprises, boosting economic development and industry progress.
                                                                                                             We keep social responsibility in mind and actively devote into returning society. During the epidemic,
We enhance the upgrade of products and promote operation innovation by data. The Company has                 the Company formulated all-round strategy on epidemic prevention and control, fully played our role
broken the information barriers of supply chain upstream and downstream by adopting the Intelligence         in the battle against COVID-19. We participated in the community development, organized volunteers
Compass, the supply chain big data analysis platform that developed the Company, and some other              among employees, achieving the glory of 7,932 hours volunteer service accumulatively of the year.
digital applications such as E-signing and E-trading that newly came online in 2020, to reduce cost
and improve efficiency throughout the whole process of the supply chain. C&D. Inc has established            Looking backward on 2020, we kept the mission of "exploring new values, enabling more people to
the five systems, two evaluation systems and 20 management behaviors on safety and quality                   live a more quality life" firmly in mind, effectively integrated sustainable development with enterprise
management. The smart project has been implemented in 61 projects nationwide, with the overall               development strategy, and insisted on the concepts of innovative, coordinated, green, open, and
customer satisfaction graded 93 out of 100, which is a leading score in the industry. We organize            inclusive development. Looking forward on 2021, our steps are still strong and firm. We will, under
open days on the construction sites of Lianfa Group Inc., promote the establishment of humanistic            the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, ground
communities, and have launched 434 activities accumulatively.                                                our efforts in the new development stage, apply the new development philosophy, and create a new
                                                                                                             pattern of development, to devote full energy to promoting reform, innovation, and breaking through in
We implement the national strategies thoroughly and attach great importance to safety production and         the operation of supply chain and real-estate business.
sustainable development. The Company has built high-effective and responsible development path in
three aspects of safety production, information safety and supplier management. In 2020, we obtained
the National Information System Security Level II Certification, introduced the network analysis
and traceability system, established the Internet mobile video conferencing platform, carried out
information safety publicity and emergency drills; set up the Red and Yellow Card Warning System,
strengthened the suppliers management, and insisted on the core concept of safety development.

We adhere to the coordinated development of employees and enterprise to guarantee the                                                                                                   Chariman Yongda Zheng
development and reserve of talents. The Company has formulated clear promotion path for
employees, set up a dual-channel career development system of management and profession, and
established the employees training system which includes the five plans; We have built a long-term
cooperation with more than 10 colleges inside or outside Fujian province to cultivate professional

                                                                                                                                          04    Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
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About Us
                                                                                                                           Business Field
C&D Inc. (stock code: 600153) is a modern service-type enterprise with supply chain operation and
                                                                                                                          With the mission of "exploring new values, enabling more people to live a more quality
real-estate business as its dual main businesses. Its businesses starting in 1980, the Company was
                                                                                                                          life" and the brand core value of "integrating resources and creating added value",
established exclusively by Xiamen C&D Group Co., Ltd. and listed at Shanghai Stock Exchange in
                                                                                                                          C&D Inc. provides customers with supply chain operation services and comprehensive
June 1998.
                                                                                                                          real estate services. The business scope of the Company and its subsidiaries covers
                                                                                                                          supply chain comprehensive services, real estate development and operation, etc.
Since listed, the Company has developed rapidly over consecutive years with its operating revenue,
                                                                                                                          The main industries involved in supply chain business are as follows:
net profit, net assets and other key economic indicators growing at annual average rate of 30% or so.
In 2020, the Company realized business revenue of 432.949 billion CNY and net profit after-tax of
8.182 billion CNY. As of the end of 2020, the total asset was 387.157 billion CNY and net asset was
86.058 billion CNY.                                                                                                                           Metal Material                                Pulp & Paper
                                                                                                                                                Industry                                      Industry


                                                                                                                                   Emerging                                                                 Mineral
                                                                                                                                    Industry                                                               Industry

    In 2020, it realized business revenue of                 net profit after-tax of


    432.949                 billion CNY                      8.182             billion CNY
                                                                                                                                 Food                                                                          Agriculture
                                                                                                                               Industry                                                                         Industry




                                                                                                                                 Automobile                                                                Textile Industry
    As of the end of 2020, its total asset was              net asset was


    387.157                 billion CNY                     86.058                 billion CNY
                                                                                                                                             Mechanical
                                                                                                                                          Electronic Industry
                                                                                                                                                                                              Energy And
                                                                                                                                                                                            Chemical Industry




                                                                                                                                                       05       Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                           About Us     Contribution & Development      Service & Value    High Efficiency & Reliability      Cooperation and Growth                 Low Carbon & Green               Dedication & Obligation




In regard to real estate business, the Company has built two major brands of "C&D Realty" and
"Lianfa Realty". Detailed business information are as follows.

                                                                                                                             Corporate Culture
    Agent Construction                                                     Real Estate
       Operation                                                          Development
                                                                                                                                                                       To become a leading international supply
                                                                                                                                                                                   chain operator.
                                                                                                                                                                         To become China's outstanding real-
                                                                                                                                                                                   estate operator.
   Property                                                                           Related Industry
  Management                                                                            Investment                                    To be simple, respectful,
                                                                                                                                            responsible.
                                                                                                                                                                                                                           To exploit new value
                                                                                                                                       Corporate interests are
                                                                                                                                      paramount and personal
                                                                                                                                                                               Corporate Vision                         for more people to live
                                                                                                                                          income is legal.                                                                    a superior life.


      Business                                                                       Urban Renewal
                                                                                                                                                           Corporate                                           Corporate
     Management                                                                         Provider                                                           Codes of                                            Mission
                                                                                                                                                           Conduct



C&D Inc. is committed to value-added supply chain, the pursuit of resource sharing, and win-win
cooperation. As a supply chain operator, the Company provides customers with "LIFT supply chain
                                                                                                                                                            Core Value                                    Corporate
services" , which is composed of the initials of "Logistics services""Information services"" Finance                                 Integrate resources     of Brand                                      Culture      Solidarity Devotedness
services" and "Trading services". Based on the four service elements, we integrate the resources                                     Create added value                                                                Integrity Enterprisingness
required by customers in the operation process, plan operation solutions of supply chain, and provide
operation services.                                                                                                                                                          Enterprise Core Values


The Company's supply chain operation services have formed advantages in the metal materials
industry, pulp and paper industry, agricultural and sideline industry, mining industry, energy and
                                                                                                                                                                           Positive aggressiveness
chemical industry, mechanical and electrical industry, light textile industry, food industry, automobile
                                                                                                                                                                          Harmonious development
industry, emerging industries and other business areas, and established business relations with more
than 170 countries and regions.

Regarding real estate development, the Company has built two major brands of "C&D Realty" and
"Lianfa Realty". At present, the Company has carried out real estate development in more than 40
cities in China, which initially forming a national strategic layout.


                                                                                                                                                              06       Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                                      About Us     Contribution & Development             Service & Value   High Efficiency & Reliability      Cooperation and Growth     Low Carbon & Green         Dedication & Obligation




Honors



                                                                                                              Winning                                                                                                                   Winning
                     Institution                                            Awards                                                                          Institution                                  Awards
                                                                                                             Corporate                                                                                                                 Corporate
                                                                                                                                                                                          30 years of capital marketleader of
Fortune Chinese Edition                                     ranked 31st of Fortune China top 500               C&D Inc.               Sponsored by Securities Times and Egsea                                                            C&D Inc.
                                                                                                                                                                                          regional economy
China Association for Foreign Economic and                  ranked 23rd of China's top 500 Foreign                                                                                        Rated "AAA"; ranked 14th in A-share
                                                                                                               C&D Inc.               China Securities Index                                                                             C&D Inc.
Trade Statistics                                            Trade Companies                                                                                                               companies of ESG
                                                            ranked 686th of Forbes Global Top 2000
Forbes Magazine                                                                                                C&D Inc.
                                                            Enterprises                                                               China Real Estate Association, China Real           2020 China's top 50 real estate
                                                                                                                                      Estate Evaluation Center of Shanghai Yiju Realty    development enterprises, ranked 37th         C&D Realty
MSCI                                                        Constituent Stock of MSCI Index System             C&D Inc.
                                                                                                                                      Research Institute                                  (shortlisted for nine consecutive years)
                                                            Constituent Stock of FTSE Global Equity
FTSE                                                                                                           C&D Inc.               China Real Estate Association, China Realty
                                                            Index Series                                                                                                                  Top 10, No. 4 of China's real estate
                                                                                                                                      Evaluation Center of Shanghai Yiju Realty                                                        C&D Realty
                                                                                                                                                                                          development enterprises
Standard & Poor's                                           Constituent Stock of S&P Emerging BMI              C&D Inc.               Research Institute

                                                                                                                                                                                          Title of "China Charity Outstanding
Shanghai and Shenzhen Stock Exchange                        Constituent Stock of CSI Smallcap 500 Index        C&D Inc.               China Charity Federation                                                                         C&D Realty
                                                                                                                                                                                          Contribution Unit Award"

Shanghai and Shenzhen Stock Exchange                        Constituent Stock of CSI Dividend Index            C&D Inc.
                                                                                                                                      China Federation of Enterprises, China              Top 500 Chinese Service Enterprises in
                                                                                                                                                                                                                                     Lianfa Group Inc.
                                                            Sample Stock of SSE Corporate                                             Entrepreneurs Association                           2020 (ranked 253rd)
Shanghai Stock Exchange                                                                                        C&D Inc.
                                                            Governance Index
                                                                                                                                      Enterprise Research Institute of Development
The 11th Tianma AwardInvestor Relations
                                                            Best Board of Directors Award                      C&D Inc.               Research Center of the State Council, Realty        Top 100 Real Estate Enterprises China
Selection of Listed Companies in China                                                                                                                                                                                               Lianfa Group Inc.
                                                                                                                                      Research Institute of Tsinghua University and       2020 (ranked 45th)
                                                            The China IR Best Information                                             China Index Research Institute
"The third China outstanding IR" Selection Activity                                                            C&D Inc.
                                                            Disclosure Award
Organizing Committee of Top 100 Summit Forum                                                                                                                                              2020 top 10 brand value of China Real
                                                            Top 100 Enterprises Award of China                                        China Real Estate TOP10 Research Group                                                         Lianfa Group Inc.
of China listed companies, Warton Economic                                                                     C&D Inc.                                                                   Estate Company (state-owned)
                                                            Listed Companies in 2020
Institute
                                                            "Caijing" Evergreen Award- Benefit
Caijing Magazine                                                                                               C&D Inc.
                                                            Award of Sustainable Development




                                                                                                                                                                          07   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                               About Us      Contribution & Development      Service & Value        High Efficiency & Reliability    Cooperation and Growth         Low Carbon & Green          Dedication & Obligation




Corporate Governance
                                                                                                                            (2) Controlling Shareholders and Listed Companies


Organizational Structure                                                                                                    The Company's controlling shareholders shall be standardized in conduct, exercise their rights through the
                                                                                                                            General Meeting of Shareholders, and directly interfere with the decisions and operations of the Company
                                                                                                                            without exceeding the General Meeting of Shareholders; The Company shall be independent and complete
                                                                                                                            relative to the controlling shareholders in terms of business, personnel, assets, institutions, finance, etc. The
In strict accordance with the requirements of relevant laws and regulations such as the Company Law, the                    Board of Directors, the Board of Supervisors, and various internal functional departments of the Company can
Securities Law, Code of Corporate Governance for Listed Companies, and the Rules for the Listing of Shares                  operate independently to ensure that major decisions of the Company are made by the General Meeting of
in Shanghai Stock Exchange, the Company has continuously improved the corporate governance structure.                       Shareholders and the Board of Directors of the Company in accordance with the law.
The rights and responsibilities of the decision-making body, supervision body and operation management
of the Company are clear and the operation is standardized. The Board of Directors regards corporate
                                                                                                                            (3) Directors and Board of Directors
governance as a long-term system engineering, and continuously improves and promotes it in daily operation.
With the expansion of the Company's operation scale year by year, the Board of Directors focuses on the
                                                                                                                            There is a total number of 9 directors in the Board of Directors of the Company, including 3 independent
risk management and internal control work, urges the management team to continuously strengthen internal
                                                                                                                            directors. The Board of Directors consists of Audit Committee, Remuneration and Appraisal Committee,
management and risk prevention to ensure the a safe, standardized, and steady development.
                                                                                                                            Strategic Management Committee, Risk Management Committee, and Investment and Policy-making
The Company has established a corporate governance structure of General Meeting of Shareholders, Board of                   Committee, all whose directors are shouldered by the Board of Directors, and the chairman of the Audit
Directors, and Board of Supervisors. The Company has established Operation Management Department, Credit                    Committee is an independent director with professional accounting qualification.
Management Department, Logistics Management Department, Enterprise Development Department, and Legal
                                                                                                                            The directors and independent directors of the Company shall conscientiously perform their duties, and attend
Affairs Department, etc., and it owns various subsidiaries in the supply chain business segment and real estate
                                                                                                                            each Board of Directors in a serious and responsible manner in accordance with the Articles of Association, the
subsidiaries such as C&D Real Estate and Lianfa Group.
                                                                                                                            Rules of Procedure of the Board of Directors and the Work System of Independent Directors and other relevant
                                                                                                                            requirements. We carefully review various proposals, fully discuss, and make scientific decisions, and there
(1) Shareholders and General Meeting of Shareholders                                                                        shall be no violation of laws or regulations or damage to the interests of the Company and shareholders. During
                                                                                                                            the reporting period, all directors shall earnestly perform their duties, be diligent and familiar with relevant laws
The Company shall ensure that all shareholders, especially small and medium-sized shareholders, can fully                   and regulations, understand the rights, obligations and responsibilities of directors, correctly exercise their rights,
exercise their legal rights in strict accordance with the relevant provisions and requirements of the Articles of           ensure the efficient operation of the Board of Directors, and safeguard the legitimate rights and interests of the
Association and the Rules of the General Meeting of Shareholders. During the reporting period, the Company                  Company and all shareholders.
has standardized the convening and convening procedures of each General Meeting of Shareholders, and has
ensured that all shareholders, especially small and medium-sized shareholders, enjoy equal status and fully
exercise their rights, ensuring that the legitimate rights and interests of shareholders when voting on important           (4) Supervisors and Board of Supervisors
matters. The General Meeting of Shareholders of the Company shall be witnessed by lawyers on-site, and legal
opinions shall be issued on its legality.                                                                                   There are 3 supervisors in the Board of Supervisors of the Company, one of whom is an employee supervisor.
                                                                                                                            The supervisors of the Company shall conscientiously perform their duties in strict accordance with the Articles
The Company maintains effective communication with shareholders through various channels such as investor                   of Association and the Rules of Procedure of the Board of Supervisors and other relevant provisions and
relations column, investor hotline, investor mailbox, and the interactive platform of Stock Exchange on our                 requirements, supervise the legality and compliance of the directors and senior managers of the Company in
E interaction platform. The Company takes the visits and consultations of shareholders seriously, so that                   performing their duties, inspect and supervise the financial situation of the company, and express independent
shareholders can have a better understanding of the operation of the Company.                                               opinions on relevant major matters.

                                                                                                                                                                 08     Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                         About Us   Contribution & Development    Service & Value    High Efficiency & Reliability   Cooperation and Growth      Low Carbon & Green        Dedication & Obligation




Anti-corruption




                                                    C&D Inc. abide by the business ethics of honesty, truth worthiness, and self-            of the Eight-point Regulations around the functional orientation of "re-
                                                    discipline, and strictly abide by the Supervision Law of the People's Republic           supervision of supervision". All relevant functional units actively perform the
                                                    of China, the Criminal Law of the People's Republic of China, the Anti-Money             responsibility of implementing functional management, formulate norms,


                          81
                                                    Laundering Law of the People's Republic of China, the Regulations On                     carry out regular supervision on the implementation of the spirit of the
 held a total number of                             Disciplinary Measures of the Communist Party of China, the Code of Honesty               Eight-point Regulations, and have no tolerance for corruption, fraud, and
 anti-corruption training activities;              and Self-discipline of the Communist Party of China, the Regulations on                  other immoral behaviors within the scope.
                                                    Inner-party Supervision of the Communist Party of China, the Regulations on
                                                    Accountability of the Communist Party of China, and other relevant laws and              The Company actively carries out anti-corruption training to enhance the

 organized   4,270                                  regulations. The Company internally adjusts the working group of honesty and
                                                    law-abiding supervision, establishes the Audit Department, and formulates the
                                                                                                                                             employees' awareness of clean employment and compliance operation. In
                                                                                                                                             2020, the Company carried out one audit investigation activity on internal anti-
 hours of anti-corruption training.                                                                                                          corruption risk or related internal, held a total number of 81 anti-corruption
                                                    "1+x" Special Supervision Linkage Work System. The Discipline Inspection
                                                    Commission of the Discipline Inspection Committee of Xiamen C&D Co., Ltd.                training activities for management cadres, department heads and ordinary
                                                    of the Communist Party of China supervises the implementation of the spirit              employees, and organized 4,270 hours of anti-corruption training.




                                                                                                                                                09   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                      About Us      Contribution & Development       Service & Value   High Efficiency & Reliability   Cooperation and Growth     Low Carbon & Green       Dedication & Obligation




C&D Realty Carried Out Anti-Corruption Construction                                                                    C&D Realty organized employees to carry out integrity
Training                                                                                                               publicity activities

On September 1, 2020, the C&D Realty Committee of the Communist Party of China and                                     From mid-August to the end of September 2020, nearly 1200 people from 28 party branches
the Discipline Inspection Commission of C&D Realty of the Communist Party of China, jointly                            of C&D Realty carefully watched the three clean government education films, "The Price
organized a special lecture on honesty and self-discipline. A total number of more than 400                            of Desire," "State-owned Enterprises are Public but not Private," and "From "Refusing", "
major cadres and employees at all levels of C&D Realty attended the special lecture. The                               'Accepting' to 'Asking.' " The participants included personnel from other key positions such
topic of this lecture is "performing duties according to law, exercising public rights and taking                      as party branch members, cadres, backbone, financial marketing from the operating units
the initiative to stay away from job-related crimes." From the aspects of basic situation of anti-                     covered by the branch. At the same time, all party branches and all first-level business units
corruption investigation and handling cases, the enlightenment of accurate anti-corruption in                          organize 800 party members and key personnel to learn the warning records of bribery cases
different fields, and the prevention suggestions of job-related crimes, combined with actual                           so as to take the case as a warning and raise the awareness of integrity.
cases, the lecture gave a profound analysis of the impact caused by job-related crimes, and
required employees to abide by the moral bottom line and discipline requirements.




                                                                                                                                                  10   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                       About Us      Contribution & Development      Service & Value    High Efficiency & Reliability   Cooperation and Growth        Low Carbon & Green       Dedication & Obligation




Compliance Operation



  C&D Inc. adheres to the principle of honesty, and the belief of abiding by the law and compliance in the
  process of creating excellent goodwill, and continuously strengthens the construction of related system.
  The Company sets up the "Regulations on Honest Operation and Management of Employees" and
                                                                                                                                                                          Training activities for common letter
  requires all employees to strictly abide by them, to comprehensively improve the ability of managing
                                                                                                                                                                          models of C&D Inc.
  enterprises according to law. At the same time, in order to avoid all kinds of job-related crimes and
                                                     建发股份坚持诚信为本,在打造卓越商誉
  strengthen the construction of the legal system, C&D Inc. organized a series of legal education activities
  for different objects in 2020.
                                                     过程中恪守守法合规的信念,持续加强制
    Carry out basic legal training on supply chain for度建设。公司设定《员工诚信经营管理条例》
                                                        all employees of C&D Inc., including basic training
    on contract negotiation (customer credit, business model, commodity selection, communication
                                                    并要求所有员工严格遵守,全面提高依法
    channel), contract signing (signing subject, signing content, signing form), contract performance
                                                    治企的能力。同时,为规避各类职务犯罪、
    (performance subject, performance according to contract, performance notice, acquisition of
    performance documents, property settlement link, change and dissolution, dispute settlement), etc.
                                                     加强法制建设,建发股份在 2020 年针对不

                                                       同对象组织了一系列法制教育活动:
    Organize “E-signing” training activities for personnel and business personnel related to the contract
    review of each business unit of C&D Inc., introduce legal background of “E-signing” platform and
    train on recent risk cases.                                                                                     Poster for legal publicity week

    Organize training on common letter models for personnel related to contract review and other
    business personnel of C&D Inc..

    Hold activities on legal publicity week for related personnel of each business unit of C&D Inc..

    Carry out case sharing activities for employees of all stores of the C&D automobile company.




                                                                                                                                                      11   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                            About Us     Contribution & Development    Service & Value       High Efficiency & Reliability     Cooperation and Growth          Low Carbon & Green         Dedication & Obligation




Sustainable Development Management                                                                                        Stakeholders         Expectations and Demand                     Communication and Response

                                                                                                                                                                                  Customized "LIFT Supply Chain Service"
                                                                                                                                                 Customer service quality
                                                                                                                                                                                  Own the diamond-like brand
As sustainable development has become the common language of international enterprises’                                                         Product Quality
                                                                                                                                                                                  Ensure service stability and safety
communication, C&D Inc. attaches more and more importance to the sustainable development by                                                      Customer information
                                                                                                                                                 security                         Improve customer data confidentiality related systems
systematically assessing the needs of stakeholders, establishing complete framework, and optimizing the                     Customer
                                                                                                                                                 Customer rights protection       Compliance marketing, build a convenient supply chain
performance as well as improving the content and quality of the disclosure of sustainable development.                                                                            operation network

In 2020, C&D Inc. initially established a sustainable development working group at the company level,                                            Career development
                                                                                                                                                 platform                         Perfect career promotion mechanism
with members including the company's senior management levels and management personnel of various                                                Compensation and benefits        Competitive pay and benefits
related functional departments. The establishment of the working group will provide the basis for the                                            Safe working condition           Implement safety management system
                                                                                                                               Staff
company to carry out sustainable development actions, and also establish a communication channel for                                             Consider employees'              Equal communication and complaint mechanism
further meeting the inquiries of shareholders, investors, customers, and other stakeholders on sustainable                                       opinions

development. In addition, the sustainable development management network of C&D Inc. will be further                                                                              Improve profitability
                                                                                                                                                 Return on investment
expanded at the business level to realize the deep combination with enterprise operation, which will be an                                                                        Maintain cash dividend policy
                                                                                                                                                 Rights and interest's
important direction of sustainable development work in the future.                                                                                                                Convene a General Meeting of Shareholders
                                                                                                                        Shareholders and         protection
                                                                                                                                                                                  Daily information disclosure
                                                                                                                            investors            Enterprise transparency
                                                                                                                                                                                  Optimize internal control and risk management
                                                                                                                                                 Honest cooperation

Stakeholder
                                                                                                                                                                                  Establish supplier management system
                                                                                                                                                 Information sharing
                                                                                                                                                                                  Promote daily communication
                                                                                                                                                 Win-win cooperation
Engagement                                                                                                            Suppliers and partners     Business ethics and
                                                                                                                                                 reputation
                                                                                                                                                                                  Project cooperation
                                                                                                                                                                                  Perform contract and supplier evaluation according to law

                                                                                                                                                 Compliance operation
                                                                                                                                                                                  Tax payment in full and on time, anti-corruption
As various groups that interact with the Company                                                                                                 In response to that call of      management
                                                                                                                                                 the state
and are closely related to development, the                                                                              Government and                                           Actively implement relevant policies
                                                                                                                                                 Support for local
expectations and demands of stakeholders are an                                                                        regulatory agencies                                        Take the initiative to assume social responsibility
                                                                                                                                                 development
important reference for the sustainable development
of C&D Inc.. We will continue to understand feedback                                                                                                                              Dedicate to philanthropy
                                                                                                                                                 Support social welfare
                                                                                                                                                                                  Adhere to green operation
from all parties through different communication                                                                                                 Protection of the natural
                                                                                                                      Society and the public                                      Promotion of social progress
channels, and regularly summarize and report to the                                                                                              environment
                                                                                                                                                                                  Sharing results of development
Company's management for final decision-making.




                                                                                                                                                           12      Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                                                                  About Us              Contribution & Development                          Service & Value   High Efficiency & Reliability   Cooperation and Growth     Low Carbon & Green      Dedication & Obligation




Assessment of Major Issues
Through comprehensive evaluation of the importance of each topic to business development and the
attention of the stakeholders, the Company ranked the importance of the report topics, and determined
the disclosure priorities of the report. In 2020, a total number of 138 questionnaires from stakeholders
were collected, which will provide important basis and guidance for the company's future sustainable
development management.


                                                2020 C&D Inc. ESG Key Issue Matrix
                                          Moderate Importance Subjects                             Highly Important Subjects
                                                                                                                                     Health and safety of staff
                                                                                                                  Quality of product
                                                                                                                  and service        Operation in accordance
                                                                                                                                     with the law and rule
                                                                                                                                     Business ethics
                                                                                                            Internal control
                                                                                                            fo the risk                 Anti-corruption

                                                                                     Protection of
                                                                                     employees' interests
         The Importance of Stakeholders




                                                                                                                                       Response to the
                                                                                                                                       national strategy
                                                                                           Environment in accordance with the rule

                                                                                                                   Emission            Push forward the
                                                                                              Management
                                                                                                                   reduction           collaboration among
                                                                                              and control of
                                                                                                                                       enterprises
                                                                                              the supply chain
                                                                                                                                       Training of the
                                                                                                                                       employees

                                                                                               Resource-saving use

                                                                           Coping              Local development
                                                                           with climate
                                                                           change
                                                                                               Public benefit of the community



                                                    Participation of the
                                                    community
                                                                                                                                                                                      This is the first comprehensive and systematic stakeholder participation procedure that the Company
                                                                                                                                                                                      has carried out. During the investigation, various stakeholder evaluated the sustainable development
                                                                                                                                                                                      performance of C&D Inc., and put forward valuable opinions and suggestions, which will become
                                          Low-importance Subjects                                                                                                                     the driving force for the Company to continuously complete the sustainable development and ESG
                                                                                                                                                                                      management system.
                                               Environmental Issues                  Social Issues               Corporate Governance Issues


                                               The Importance of Sustainable Development of the C&D Inc.
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                                           About Us     Contribution & Development    Service & Value      High Efficiency & Reliability   Cooperation and Growth       Low Carbon & Green    Dedication & Obligation




Support for National Development
China has proposed the Belt and Road Initiative, created a new pattern of China's all-round
opening to the outside world, promoted the common development of countries along the line, and
provided a new attempt to improve the global economic governance system. C&D Inc. actively
responds to the initiative of the state, adheres to the principle of "co-discussion, co-construction                                                                                            with a value of US
                                                                                                                                                                        11,016
                                                                                                                     Till December 31, 2020, a

                                                                                                                                                                                                $691
and sharing", relys on its own supply chain advantages, and drives the growth of commodity                                                                 a total of
trade and investment of countries along the line.                                                                    total of
                                                                                                                                275        CRE C&D
                                                                                                                                                           freights had been shipped
                                                                                                                                                                                                                 million

                                                                                                                                                                                                and approximately CNY
                                                                                                                     Special Train schedules had

Link the World with Mutual Benefits and
                                                                                                                     been operated
                                                                                                                                                                                                4.751             billion

Win-win Cooperation
Based on the "LIFT supply chain service," C&D Inc. actively serves foreign businessmen with
comprehensive strength to explore the domestic market, taps potential value-added opportunities
in the supply chain operation link, assists foreign businessmen to improve the operation efficiency,
creates value-added for customers, and jointly strives to create a win-win industrial ecological circle
with customers.

In August 2017, Xiamen's first regular two-way International train ferry, China-Europe train,
operated by C&D Inc., was officially opened, aiming to provide international transportation services
to customers and help to reduce logistics costs. Based on the customer resources and service
experience accumulated in the supply chain operation sector for many years. C&D Inc. provides
customers with integrated and customized supply chain solutions, and builds an important logistics
channel for unimpeded international cooperation. Till December 31, 2020, a total of 275 CRE C&D
Special Train schedules had been operated and a total of 11,016 freights had been shipped, with a
value of US $691 million and approximately CNY 4.751 billion.

In 2020, under the background of the spread of the epidemic to the world, the stable operation of
CRE C&D Special Train was of great significance to consolidate stable foreign trade relations. C&D
Inc. took the initiative to apply for a temporary increase in the railway transportation plan, which was
increased to two trains a week in March. At the same time, the CRE C&D Special Train shoulders
the responsibility of epidemic prevention, carrying tens of thousands of epidemic prevention masks
to help overseas to fight the epidemic.




                                                                                                                                                      15   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                                         About Us         Contribution & Development   Service & Value   High Efficiency & Reliability   Cooperation and Growth     Low Carbon & Green      Dedication & Obligation




Deepen Cooperation for
the Benefit of China
The Belt and Road Initiative not only helps the c ommon
development of c ountr ies along the line, but also br ings
C h i n a t h e c r y s t a l l i z a t i o n o f i n n ova t i ve w i s d o m f r o m a l l
countries in the world. From November 4 to 10, 2020, during
the third Import Expo, C&D Inc. held a total of 8 session of
"impor t cooperation signing ceremonies" and 1 session of
"milestone verification ceremony for 10 billion cooperation
achievements". The partners included many of multinational
e n t e r p r i s e s i n t h e w o r l d ’s t o p 5 0 0 , w i t h a c u m u l a t i v e
amount of intention impor t cooperation agreements signed
                                                                                                                                        Shanghai C&D Materials contributes to the construction of
exceeding 4 billion US dollars.                                                                                                         Xiongan New Area
C&D Inc. has deepened and expanded c ooperation f ields with global customers. The                                                      The construction of Xiongan New Area is a millennium plan and a national event.
Company has expanded supply chain business cooperation in the fields of agricultural                                                    Xiongan K1 Expressway (Phase I) construction project has tight construction
products, metal and mineral products, chemicals, food, consumer commodity and other                                                     period, heavy tasks and high requirements. As the winning unit of the steel
commodities, introduced new products, technologies and services from the Import Expo,                                                   procurement project in bid Phase I of the project, Shanghai C&D Material
and provided strong support for the domestic and international dual cycle system .                                                      Co., Ltd., a wholly-owned subsidiary of C&D Inc., fully evaluated the available
                                                                                                                                        resources in production, transportation, storage, and other links, formulated
                                                                                                                                        a procurement plan with optimal cost and reasonable rhythm, and designed
                                                                                                                                        a dynamic inventory management mode in combination with the long-term
                                                                                                                                        accumulated steel supply chain operation. We adjusted the goods delivery and
                                                                                                                                        transportation plan in real-time according to the construction progress of the
                                                                                    Signing Intended Import
           During the third Import Expo,                                                                                                project, provided stable and timely raw material supply, effectively ensured the
                                                                                    Cooperation Agreement
           C&D. Inc held a total of                                                                                                     timely completion of the project, and helped the construction and development
                                                                                    exceeding
                                                                                                                                        of Xiongan New Area. The completion of Xiongan K1 Expressway (Phase I) not

           8     "import cooperation signing
                 ceremony "                                                         $4 billion                                          only marks the first newly built urban expressway in Xiongan New Area, but also
                                                                                                                                        plays a positive role in promoting the transportation development, economic
                                                                                                                                        interchange and social and economic development of Xiongan New Area.




                                                                                                                                                                    16   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                          About Us    Contribution & Development   Service & Value      High Efficiency & Reliability   Cooperation and Growth     Low Carbon & Green      Dedication & Obligation




Promotion of Local Construction
For a long time, C&D Inc. has actively promoted Xiamen's social and economic development,                       Help Urban Renewal and Promote Industrial Upgrading
deepened cooperation with its partners, integrated various resources, realized industrial upgrading,
jointly created a competitive industrial ecology, and promoted tax revenue and social and economic
construction, and promoted local employment and talent training through joint school running, to                With the responsibility of promoting the transformation and upgrading of urban industries and urban
empower the future development of the city.                                                                     function transformation, Lianfa Group seized the opportunity of the economic construction of Xiamen
                                                                                                                special zone and the adjustment of the industrial structure in the island, actively responded to the
                                                                                                                development strategy of Xiamen City Huli District Party Committee and district government to build the
Enable Multiple Formats to Promote Urban Prosperity                                                             "Special Zone 1980 Huli Creative Industry Park", built the creative park represented by Huamei Space,
                                                                                                                Strait Design, Cultural and Creative Port and Southeast World, led Xiamen's Cultural and Creative
                                                                                                                Industry, and made great contributions to Xiamen's urban renewal. By the end of 2020, the rental rate
C&D Inc. is committed to promoting regional economic development and realizing common prosperity
                                                                                                                of Lianfa Cultural and Creative Park had reached 90%, with nearly 500 small and micro enterprises
of the city.
                                                                                                                and individuals, and about 5000 people were employed. Lianfa Huamei Space has been rated as a
                                                                                                                provincial modern service industry agglomeration demonstration zone in Fujian Province, a small and
Since its establishment in 2002, C&D (Shanghai) Co., Ltd. has made rapid development in supply
                                                                                                                micro enterprise Innovation demonstration base in Xiamen City, and a small and micro enterprise
chain operation services in metal materials, electromechanical and other industry areas with the help
                                                                                                                innovation and entrepreneurship demonstration base in Fujian Province.
of Pudong New District area's advantages in the six major hard core industrial clusters and talent
highland, created far-reaching industrial values for East China and won the " 2019 Pudong New Area
                                                                                                                Lianfa Group continues to inject vitality into the upgrading of the city. While meeting the needs of the
Economic Outstanding Contribution Award."
                                                                                                                regional people for quality of life, it creates a professional window for cultural export, consolidates
                                                                                                                Xiamen's image and status as an international city, and drives Xiamen's cultural prosperity. Lianfa
On December 8,2020, C&D Inc. and Zhangjiagang Free Trade Zone Administrative Committee held
                                                                                                                Southeast World, the culture innovation industry park themed with film and television that opened in
a signing ceremony for strategic cooperation. This cooperation signing was an in-depth combination
                                                                                                                2019, has fully implemented the advantage of Xiamen as a tourist city. With the help of Golden Rooster
of supply chain pilot cities and pilot enterprises. The two sides would provide more experience
                                                                                                                and Hundred Flowers Film Festival, it has helped the integrative development of the film and television
and practices for other pilot cities and enterprises in the country through continuous innovative
                                                                                                                industry, promoted the cross-industry development to achieve the resource integration. It has attracted
development, create a supply chain industrial ecology, and finally empower small and micro
                                                                                                                the head well-known enterprises of film and television shooting, video production, MCN agencies
enterprises and the real economy, and contribute to industrial transformation and upgrading.
                                                                                                                and industry to build the version 3.0 of culture innovative industry park to accelerate Xiamen film and
                                                                                                                television industry development, enhance the height of Hercynian concept culture connotation, and
                                                                                                                display the new style of Xiamen film and television industry to Hercynian and even the world.




                                                                                                                                                   17   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                    About Us     Contribution & Development    Service & Value   High Efficiency & Reliability    Cooperation and Growth          Low Carbon & Green          Dedication & Obligation




                                                                                                         Strengthen the Training of Applied Talents and Promote
                                                                                                         the Development of Regional Characteristic Industries


                                                                                                         C&D Inc. actively explores the talent training mechanism and builds up the talent pool in
                                                                                                         the supply chain through school-enterprise collaboration. C&D Inc., together with Xiamen
                                                                                                         University, Dalian Maritime University, Central South University, and other universities,
                                                                                                         have built a "school-enterprise practice base", aiming to provide more practice platforms
                                                                                                         and internship opportunities for college students through school-enterprise collaboration.
The whole village of the old village in the east area of Hubian
                                                                                                         C & D Re alt y has e st ab li sh e d in - de pt h in dust r y - uni ve r sit y - re s e arc h c o o p e r at i o n w it h
reservoir is renovated to show the new look of the city
                                                                                                         Xiamen Academy of Ar ts and Crafts of Fuzhou University and Civil Engineering College
                                                                                                         of Fuzhou University. According to the business characteristics of C&D Realty, it plans to
As the specific implementation unit of the renovation project of the whole village of the                build special plans for talent training and expor t such as "practice base""environmental
old village in the east area of Xiamen hubian reservoir, Lianfa group was responsible                    ar t creation class" "intelligent c onstr uction and building industr ialization c ollaborative
for coordinating the overall old village renovation, planning, and construction of the                   innovation center," to transport more professional and practical talents for enterprises with
area. During the renovation, Lianfa Group also focused on improving the life value of                    regional characteristics and serve the regional economic development.
residents, integrating cultural concepts into the planning process, vigorously promoting
                                                                                                         In addition, the Lianfa Group and the Fujian Province Education Depar tment jointly host
the development and construction of various livelihood projects in the area, and doing a
                                                                                                         a f ull - time C ollege —X iamen Sof t ware Voc ational and Tec hnic al C ollege. By the end
good job in the cultural inheritance of the projects. In 2020, the project's renovation work
                                                                                                         of Dec ember 31, 2020, the school has 3 67 staf f and a total number of 8,63 6 full -time
has made positive progress.
                                                                                                         students. This joint school-running has greatly promoted the training of applied talents,
After the project is transformed according to the plan, it will build a pleasant urban                   continuously transpor ted professional talents for regional characteristic industries and
residential area with waterfront residence, leisure and commerce as the leading factors                  served the regional economic development. It has been selected as the first "China High-
and complete supporting facilities, build high-end residential areas, office buildings,                  tech Zone Talent Training and Sending Base" and the "Fujian Province Key Training Base
business circles and other multiple formats, fundamentally change the backward                           for Software Applicable Talents."
appearance of the area, improve the living environment of the area, enhance the image
of image value in the central urban area, drive the leapfrog development of the social
economy of Huli District, and contribute to the economic development of Xiamen City.




                                                                                                                                               18     Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                           About Us    Contribution & Development    Service & Value      High Efficiency & Reliability   Cooperation and Growth      Low Carbon & Green      Dedication & Obligation




Promote Industry Progress Together
As a national supply chain innovation and application pilot enterprise, C&D Inc. focuses on the
Company's main business, is committed to supply chain value-added, pursues industry resource
sharing, and cooperates with the upstream and downstream of the supply chain to jointly develop                           C&D Inc. and the School of Economics, Xiamen University
innovation. C&D Inc. has strengthened industry-university-research collaboration innovation, signed                       jointly build innovative education practice base
strategic cooperation agreements with enterprises, universities, research institutes and other parties
                                                                                                                          On December 19, 2020, C&D Inc., the School of Economics, Xiamen University
to jointly promote the transformation of innovation achievements and cultivate outstanding talents;
                                                                                                                          (hereinafter referred to as "SOE") established the "C&D Co., Ltd. Practice Base," which
actively participated in and hosted industry conferences, built a bridge for in-depth communication for
                                                                                                                          helps students of SOE to deeply understand the demand direction of enterprises for
the industry, linked the industry ecological circle and led the common development of the industry.
                                                                                                                          International Business talents in practical operation, provides valuable opportunities for
Supply chain talents are the core competitiveness of supply chain. On July 17, 2020, C&D Inc.,                            face-to-face exchange and interaction with industry experts, and helps students to clearly
and the procurement and supply chain management professional committee of China logistics and                             plan their career. The signing and round table of the innovation education base also
procurement Federation jointly held a series of training activities for the Supply Chain Management                       discussed the topic of "Enterprise Development Countermeasures Under the Influence of
Expert Project (SCMP) of C&D Inc. on "Focusing on Industry and Commerce, Innovating and
                                                                                                                          the Epidemic Situation and
Developing." Through professional study and discussion, the purpose is to systematically improve
                                                                                                                          the Prospect of international
the intellection of professional supply chain management for those supply chain practitioners in C&D
                                                                                                                          business Talents Demands".
Inc., expand the international vision, and strengthen the cultivation of supply chain talents.
                                                                                                                          Through the brainstorming
                                                                                                                          and exchange of ideas of
                                                                                                                          students and experts, new
                                                                                                                          intellection and thinking
                                                                                                                          were injected into the
                                                                                                                          development of companies
                                                                                                                          after the epidemic situation,
                                                                                                                          and new ideas were also
                                                                                                                          provided for the multi-
                                                                                                                          dimensional training of
                                                                                                                          international trade talents on
                                                                                                                          campus.



    Group photo of "Focusing on Industry and Commerce, Innovating and Developing" training activity


                                                                                                                                                     19    Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                        About Us      Contribution & Development   Service & Value   High Efficiency & Reliability   Cooperation and Growth     Low Carbon & Green      Dedication & Obligation




C&D Logistics leads industry development                                                                            C&D Realty sets up a new Chinese industry benchmark
                                                                                                                    Adhering to the brand concept of "creating a diamond life and achieving bright value",
C&D Logistics has always adhered to the corporate culture spirit
                                                                                                                    C&D Realty has always adhered to the product quality and service standards as its
of "responsibility, honesty and trustworthiness", adhered to the
                                                                                                                    core competitiveness, devoted all its energy to quality control, technical research and
brand concept of "no value-added, no service", provided one-stop
                                                                                                                    development and the promotion of internal management system.
service on professional supply chain operation and management
for domestic and foreign customers, and established a good                                                          In recent years, C&D Realty has focused on making the whole line of products with the
reputation and corporate image in the industry. C&D Logistics won                                                   new Chinese style, refined the exclusive craftsmanship concept of "Confucian school,
the title of "Top Ten Honest Enterprises in China's Titanium and                                                    Taoist garden, Tang style and Chinese pattern". It has successively crafted several
Zirconium Industry of 2020" at the annual conference of titanium                                                    local new Chinese style benchmark projects in Shanghai, Suzhou, Hefei, Changsha,
and zirconium industry in 2020 and the summit Forum on the                                                          Xiamen, and other places, won amount of industry awards. C&D Realty has been highly
development China titanium and zirconium industry in China. In                                                      recognized and trusted by government departments by virtue of its efforts to stick to the
addition, C&D Logistics has also won the title of " 2020 China's                                                    quality reputation , and successfully built many public construction projects on behalf of
excellent nickel-chromium stainless steel supply chain enterprise."                                                 it. In addition, C&D Realty, as the construction and reconstruction unit of the main venue
                                                                                                                    of the "ninth BRICS leaders meeting", has won the recognition of national leaders and
                                                                                                                    guests at home and abroad.




C&D Metal actively helps steel supply chain increase its value
C&D Metal focuses on the operation of steel
supply chain. It is a long-term partner of large and
medium-sized steel mills such as Baowu, Hegang,
Angang, Shougang, Jianlong and DeLong. Its
operating varieties cover all kinds of steel and
steel-making raw materials, and its service outlets are all over the major regions of the
country. C&D Metal won the title of " 2020-2021 excellent supplier of China's sheet metal
industry" at the 14th Annual Conference of China's sheet metal industry chain in 2020.



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                                                     About Us        Contribution & Development            Service & Value          High Efficiency & Reliability    Cooperation and Growth          Low Carbon & Green          Dedication & Obligation




Smart Supply Chain                                                                                                                          "E-signing" Electronic Signing Platform

In recent years, C&D Inc. has been vigorously driving digital innovation, empowering                                                        The "E-signing" is an electronic signing platform developed by C&D Inc., the leading cloud platform for
multiple links in the smart supply chain, and striving to provide customers with transparent                                                electronic signatures and electronic contracts in China. "E-signing" platform was customized for our supply
and efficient supply chain services. At the same time, we pay attention to the protection of                                                chain operation business. Relying on our experiences in operating supply chain in multiple industries,
intellectual property rights to create a good innovation environment.                                                                       and making use of advanced digital techniques such as digital signature, blockchain and encryption and
                                                                                                                                            decryption algorithms, "E-signing" ensures the authenticity, effectiveness, legality, and compliance of
T h e t h r e e c o r e t a s k s o f t h e " LI F T s u p p l y c h a i n s e r v i c e" o f C & D I n c . a r e r e s o u r c e           online signings, based on which C&D Inc. provides efficient, safe and environmentally-friendly online
integration, solution planning, and operation ser vice. Its name “ LIF T ” is composed of                                                 signing services for the upstream and the downstream customers of the supply chain and promotes the
English initials of Logistics, Information, Finance, and Trading. Each of them is a basic                                                   business efficiency in transaction and circulation. As of December 31, 2020, "E-signing" has obtained
ser vice in supply chain operation and contains multiple ser vice elements. Based on the                                                    the third-party CA certification and had more than 4,300 registered users, covering the upstream and
ser vic e elements, C&D Inc. integrates f ive major resourc es for customers, which are                                                     the downstream customers in the supply chain of pulp and paper, steel, electromechanics, energy and
logistics, information, finance, commodities, and market, and plans supply chain solutions                                                  chemicals, textile, agriculture, food and other industries, and has witnessed the signing of more than
and provides operation services.                                                                                                            110,000 contracts.

Based on the " LIF T supply c hain ser vic e", C &D Inc. c ombines big dat a and Inter net                                                  With the following four advantages, the "E-signing" provides customers with more secure and convenient
technologies to build the leading "smart supply chain". In 2020, the company developed a                                                    digital signing based on legal compliance:
variety of digital application products, empowering all links in the supply chain, breaking
the information barriers between the upstream and the downstream of the supply chain,                                                          Provide customized development for supply chain business
realizing cost reduction and efficiency increase for upstream and downstream customers                                                         with a more professional process design;
in the industry chain.
                                                                                                                                               Put an end to identity fraud and ensure that signatures, seals,
                                                                                                                                               and actual subjects are corresponding with the real ones;

                                                                                                                                               Provide unique "data fingerprint" to prevent content and
                                                                                                                                               signature from being tampered with;

                                                                                                                                               Provide prestige and independent third-party authentication                        “E-signing” Platform
                                                                                                                                               and supervision to ensure data security and privacy.




                                                                                                                                            1
                                                                                                                                             Electronic certification service, referring to the authenticity and reliability verification for all parties involved in
                                                                                                                                            electronic signing.

                                                                                                                                                                                  22     Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                          About Us    Contribution & Development     Service & Value    High Efficiency & Reliability                     Cooperation and Growth                                                          Low Carbon & Green                                       Dedication & Obligation




"E-trading" Online Purchasing and Sales Service Platform
                                                                                                                                                                                                                                 Product Display
In August 2020, by making use of information exchange technology, C&D Inc. Food Supply Chain
launched "E-trading", an online purchasing and sales service platform for consumer goods supply
                                                                                                                                             Billing management                                                                                                           Order and purchase
chain, which broke the information barrier in commodity transaction, promoted the convenient
transaction and efficient circulation of commodities and empowered the innovative development of
supply chain business. As of December 31, 2020 , about 300 companies have been registered on the                                                                                                                                           Main
                                                                                                                                                    Invoice download                                                                                                               Order processing
platform, and there were more than 3,000 orders in a month.                                                                                                                                                                              functions

By virtue of the following four advantages, "E-trading" integrates resources from all parties in the
                                                                                                                                                    Online accounting                                                                                                             Logistics tracking
supply chain to achieve sustainable and high-quality ecological construction of the industry chain of
consumer goods:
                                                                                                                                                                                        Electronic receipt                                       Inventory checking


   Fully display the commodity                                        Dock ERP port, proofread
                                                                                                                                                                                                              Main functions of “E-trading”
   information and price                                              inventory automatically,
   in a standardized and                                              and deliver products
   transparent form, which                                            quickly and accurately
   enables downstream
                                                                                                                                                   TRADITIONAL DELIVERY
   customers to make orders
                                                                                                                                                                                                                                                        seller          Order confirmation

   at any time
                                                                                                                                sellerI      nventory searching Inventory con      Order collecting                                                                                 Automatically
                                                                                                                                                                                                                                                                                    connected to
                                                                                                                                                                                                       order creating                                                              clients’ system




                                                                                                                                                                                                                                                     C&D Inc. food        Order receiving             Order processing     delivering
                                                                                                                                                                                                                                                     supply chain

                                                                                                                             C&D Inc. food   Inventory checking                                       Order processing         Order                                                   ERP
                                                                                                                                                                                                                            processing                                             automatically
                                                                                                                             supply chain                                                                                                                                           importing




   Track the real-time order                                            Integrate order data
                                                                                                                                                                    Making order via E-mails                             Goods received                 buyer        Making orders on the platform                       Goods received
                                                                                                                                buyer
   status, and process the                                              from the platform, help
   orders transparently and                                             sellers analyze their
   efficiently                                                          order preferences for
                                                                        downstream customers
                                                                        and help adjust sales
                                                                                                                           The comparison between "E-trading" mode and traditional delivery mode
                                                                        strategies



                                                                                                                                                                                          23                Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                         About Us    Contribution & Development   Service & Value     High Efficiency & Reliability   Cooperation and Growth     Low Carbon & Green      Dedication & Obligation




“Smart Compass” Big Data Analysis Platform for
Supply Chain ——Plus BI
Plus BI, “Smart Compass” Big Data Analysis Platform for Supply Chain, is independently developed
by C&D Inc. It deeply integrates the core operation data of enterprises by applying information
technologies such as big data and cloud computing. Plus BI visualizes supply chain operations,                          Besides, Plus BI also derived the financial product "E-Finance", which integrates three
including thematic analysis like contract signing, macro analysis of risks, and international trade                     advanced sectors: scene, finance, and technology, and innovatively proposed a business
statistics, and industry data analysis such as steel, paper, and imported dairy products. As of                         model of "scene+finance+technology". Relying on big data and intelligent risk control
December 31, 2020, the number of users within the company of the Plus BI has increased to 866                           technologies, “E-Finance” combines the smart credit evaluation system of C&D Inc. with
people; visits per capita has reached 35 times; and visit frequency has increased by 64% compared                       the risk control system of banks. As a result, it provides more convenient and preferential
to the former year. In 2020, Plus BI was entitled " Application Scenes of Digital Economy Top 100                       business financing services for reliable small and medium-sized enterprises.
in Fujian Province", which was recognized by the Ministry of Industry and Information Technology
of the People's Republic of China, and was nominated as a classic case of "Application Scenes of
Digital Economy Top 100" selected by the Digital Fujian Construction Leading Group Office.




     Through data accumulation, Plus BI can digitally empower
     multiple business scenes:
        Tool-based empowerment: improve the efficiency of daily business processes based
        on various convenient data processing interfaces and templated data analysis
        functions in information systems;

        Resource-based empowerment: provide more reliable and accurate data for business
        based on data accumulation;

        Service-based empowerment: provide personalized data analysis services according
        to business characteristics; propose improvement schemes for business processes
        from the perspective of data; expand internal and external service modes of
        enterprises while lower the cost of key nodes;

        Knowledge-based empowerment: based on data, organize the business knowledge
        map, and improve the comprehensive capability for business.




                                                                                                                                                 24   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                    About Us     Contribution & Development    Service & Value   High Efficiency & Reliability   Cooperation and Growth     Low Carbon & Green      Dedication & Obligation




The first intelligent warehousing decision-making project                                                         C&D Mineral Resources completed the first cross-border
launched by C&D Logistics                                                                                         paperless RMB settlement business
In December 2020, C&D Logistics - Polixir intelligent warehousing decision-making
                                                                                                                  In 2020, Xiamen C&D Mineral Resources Co., Ltd., a wholly-owned subsidiary of
project, cooperated by C&D Logistics Group Co., Ltd. and Polixir Technology Co., Ltd.,
                                                                                                                  C&D Inc., and a long-term partner conducted the first cross-border paperless RMB
was officially launched for trial operation. In this project, both parties took the medical
                                                                                                                  settlement business using the block-chain technology. Paperless RMB settlement
device project of C&D Shanghai Logistics Center as the example, took the global design
                                                                                                                  business shortened the time of trade documents circulation, the circulation time of trade
and process reengineering as the foundation, and made use of AI technology. By doing
                                                                                                                  documents, promoted the transparency of the business process and brought more
so, this project changed the management model from "people heading for goods" to
                                                                                                                  accurate and efficient communication among all parties. In the future, C&D Mineral
"goods automatically delivered to people". After the project was launched, it was expected
                                                                                                                  Resources will continue to deepen the application of blockchain technology and work
that the efficiency of warehouse picking would increase by more than 50% compared
                                                                                                                  with major mines and customers to jointly optimize the bulk commodity trade process to
with the original, and the efficiency would be further improved with the increase of order
                                                                                                                  promote efficiency through digitalization.
quantity and the continuous optimization of the AI algorithm after its superposition.

This project is the first intelligent transformation project of C&D Shanghai Logistics
Center. In 2020, following the trend of digital transformation, C&D Logistics actively
carried out the intelligent transformation of warehouse management. With innovation in its
supply chain and high-quality operation services, C&D Logistics won the two prizes of "
2020 Excellent Procurement Case" and " 2020 Excellent Procurement Service Provider",
                                                                                                         Intellectual Property Rights Protection
and was listed in the first Pilot List of National Digital Warehouse Enterprises of CFLP.
                                                                                                         C&D Inc. abides by “Patent Law of the People's Republic of China”, “Trademark Law of the People's
                                                                                                         Republic of China” and other related laws and regulations, prescribes the company's brand
                                                                                                         management rules and regulations, and strengthens the standard management of the company's
                                                                                                         registered trademarks, enterprise names, patents, professional techniques, and other intellectual
                                                                                                         property rights. The brand management department was specially set up to manage the company's
                                                                                                         trademarks, promotion names of commercial housing projects, brands, and other intellectual property
                                                                                                         rights. Additionally, the company pays attention to avoid infringing on others’ intellectual property
                                                                                                         rights. All units are required to strictly ensure the copyright ownership of materials used in daily
                                                                                                         operation and external promotion, and never to use materials without copyright or whose copyright
                                                                                                         ownership is unknown. Besides, we also introduced clauses about the liability and protection of
                                                                                                         intellectual property in the company’s contract templates. As of December 31, 2020, C&D Inc. has
                                                                                                         applied for 120 patents and has obtained 88 authorizations.


                                                                                                                                            25   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                          About Us   Contribution & Development        Service & Value        High Efficiency & Reliability   Cooperation and Growth           Low Carbon & Green                   Dedication & Obligation




High-Quality Product
                                                            C&D Inc. participates in all links of products and controls them strictly. We specify the regulations from the aspects of the distribution
Adhering to the brand core value of "                       process, quality control, and nonconforming product control, and implement management on quality.
integrating resources and creating added
value", C&D Inc. strictly abides by “Quality               Identification and traceability of liquor products: In order to ensure the quality of the products in the whole distribution process, C&D Wine, a
Law of the People's Republic of China”, “Real             subsidiary of C&D Inc., has established a sophisticated distribution and tracing platform, which has become a benchmark for the traceability
Estate Management Law of the People's                       of liquor products, won the “Certification for Traceability Systems”, and successfully passed the project acceptance inspection of the Ministry
Republic of China” and ot her laws and                     of Commerce of the People's Republic of China. Its score in the inspection was ranked the first among the liquor trial enterprises.
regulations. C&D Inc. has formulated a series
of internal policies on the management of
product quality to ensure that customers can
enjoy high-quality products.
                                                                                      Development and
                                                                                     chaos coexist in the

Supply Chain Quality                                                                        industry
                                                                                     Potential safety risks
                                                                                                                                                                   Information center


Control                                                                              exist for consumers
                                                                                                                                                        Data sharing           Goods fleeing
                                                                                                                                                                                                Market checking
                                                                                                                                                                                                              Counterfeiting
                                                                                                                                                                                                                                      consumers

                                                                                                                                                                               checking
                                                               Lack of tracking                                   Lack of effective                                            Information of
                                                                                                                                                                               selling beyond                         promotion management
C&D Inc. formulated “The Regulations on                       technologies for                                   management of                                                agreed areas                             point management
                                                              the sold products                                   dealers and the
Process Management of Supply Chain” and                                                                                                                                                                                market investigating
                                                                in the internal                                  support of market
Regulations on “Operation Management of                                                                         regulation system                          Sales department
                                                                    system
Supply Chain” to standardize the concrete
                                                                                                                                                                                                                      Upload sales
business operations in business units and                                                                                                                                                                                              dealer
                                                                                                                                                                                                     Mobile           and inventory

management departments and the management                                                                                                             factory            warehouse                                    data
                                                                                                                                                                                                    network/
process of the supply chain                                                                                                                                                                         Internet
                                                                                                                                                                                                                                               delivery
                                                                                                                                                                                  Goods out of
to build a sophisticated                                                 Lack of effective             Lack of information
                                                                                                                                                                                  warehouse
                                                                                                       exchange platform
product quality assurance                                                big data analysis
                                                                             to support                which can interact                                                                 Monitor and management of logistics
system. In 2020, C&D Inc.                                                                              favorably with end
                                                                              decisions
was selected as “China’s                                                                                consumers
pilot enterprise for the
innovative and applied
supply chain”. Since 2012,
C&D Inc. has continuously
                                                                                                                        C&D Wine products tracing process
obtained ISO9001 quality      ISO 9001
                            Quality System
system certifications.
                             Certification

                                                                                                                                                         26     Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
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  Nonconforming mineral products control: In the supplier introducing stage, C&D Inc. listed " energy
  and mineral products that contain harmful elements" in the clauses for rejection. C&D Inc. rejects
  the products from suppliers who violated the clauses and terminates the trade with such suppliers.                                                                  Project
                                                                                                                                                                   collaborative
                                                                                                                                                                      system
  Food quality and safety: It is clearly stipulated in the repurchase clause for food contracts that
  suppliers shall ensure that the quality of their products conforms to the national policies and
  regulations of China, and that goods shall be sold out within 60 days after the product is delivered
  to the designated warehouse or before the remaining shelf life of the product is less than one                                                                                               Real-time
  third (up to which time is earlier). If the goods are not sold within the agreed time, the supplier                                    Smart project                                          house-
                                                                                                                                           system
                                                                                                                                                                   Five systems
                                                                                                                                                                                               checking
  shall return the payment made by C&D Inc. and retrieve the goods within 20 days.                                                                                   of quality                 system
                                                                                                                                                                  management of
                                                                                                                                                                   C&D Realty

Project Quality
                                                                                                                                                400 after-sales
Lianfa Group has formulated internal rules and regulations to ensure the quality of drawings and                                                 maintenance                       House delivery
                                                                                                                                                   system                             system
projects, such as “Lianfa Group Regulations on the Management of Construction Drawings of Real
Estate Projects”, “Lianfa Group Guidelines for the Use of Engineering Construction Standards”,
and “Key Technical Standards for Sample Process Display”. According to the "Regulations
on Engineering Quality and Safety", we construct and inspect the samples first, so that the
unreasonable items in design, structures, materials, construction technologies, and management
are avoided. Besides, in order to strengthen the pre-project quality control, the quality of sample is                                               Process              Construction Project

taken as the standard and basis for project acceptance inspections. According to “Lianfa’s Quarterly                                              Evaluation            Decoration Project
Joint Inspection Project Management Behavior Checklist”, activities are carried out for all projects
under construction to ensure the project quality, such as third-party inspections, internal quarterly                                         Unannounced Inspections
inspections, and open days on Lianfa construction sites.                                                             Two Evaluation
                                                                                                                       Systems
Being aware of the importance of product quality to customers, C&D Realty has formulated safety                                                                           Systematic risk evaluation of leakage prevention,
                                                                                                                                                     Delivery
and quality management systems and standards such as “Engineering Management Instruction                                                           Evaluation            functions, progresses and quality
Manual”, “Standard Techniques Atlas of Residential Engineering”, “Standardization Guidelines
for Safe and Civilized Construction”, and “Compilation of Residential Leak-proof Design and
Construction Requirements”. With five systems, two evaluation systems and 20 management                                        Two evaluation systems of quality management of C&D Realty
behaviors, they cover all key links in the whole process from project commencement to delivery and
after-sales services to improve product quality and the satisfaction of property owners.


                                                                                                                                                    27    Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                    About Us     Contribution & Development   Service & Value   High Efficiency & Reliability   Cooperation and Growth       Low Carbon & Green                     Dedication & Obligation




                                                                                                        Smart Project
The "Open Day on Construction Site" of Lianfa Junyue
Refined decoration Site                                                                                 C&D Realty promotes intelligent engineering
                                                                                                                                                                                   Smart Project Structure
                                                                                                        construction. Through using information
In June 2020, Lianfa Junyue Project launched an "Open Day on Construction Site".                        technologies, it combines the site monitoring
In the activity, the site was inspected by more than 200 property owners openly and                     system at the site with safety management to                                        Smart Project System in
transparently. On the site, professional engineers provided the property owners with                    build a sophisticated personnel management                                         C&D Inc. Real Estate Group
                                                                                                                                                                                                 Company Ltd.
professional explanation and introduction throughout the whole process, so that the                     and safety risk treatment mechanism to
owners can inspect and have an intuitive experience in all aspects, including building                  ensure the project quality. Aiming at solving          Room for safety education                                   Smart project
materials, houses interior, walls, kitchen, closed water in bathroom, public areas,                     project management issues, C&D Realty
landscaping, supporting facilities in the community, and property service standards. The                sorted out the business process, upgraded
                                                                                                                                                               Information registration for                             Hawk Eye monitoring
                                                                                                                                                                     new entrants
accompanying engineers answered questions from property owners on site, recorded the                    the Smart Project 2.0 system, and improved                                                                  Personnel management
                                                                                                                                                             Safety explanation for operators                              system
customers’ opinions and followed up in time for feedback. As for the problems on the open              the safety management module in 2020.
day and customers’ questions, Lianfa Group held a special meeting in time to discuss                   By December 31, 2020, Smart Project had
                                                                                                                                                              Safety training for managers                         Safety concerns picturing

solutions, truly creating a "quality life" for customers.                                               been implemented in 61 projects nationwide.            Safety training for violators                     Education system for violators




                                                                                                                                Smart Project Management Platform of C&D Realty




                                                                                                                                           28     Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                         About Us        Contribution & Development       Service & Value   High Efficiency & Reliability     Cooperation and Growth         Low Carbon & Green        Dedication & Obligation




Prevention and Control of Quality Risks                                                                             Architecture Design
C&D Realty has established a whole-chain management procedure covering “Front-end examination–                    While the quality is guaranteed, C&D Realty and Lianfa Group value the innovative design of the
Delivering assessment– Fault analysis” to strictly prevent and control the quality of real estate                 fine decoration of residences and the improvement of the residences’ functions to provide a more
products and systematically control the quality risks.                                                              comfortable and sustainable living space for customers. In 2020, C&D Realty and Lianfa Group won
                                                                                                                    many external design awards:




           Front-end                        Delivering                                 Fault                              Area                          Project                                        Honor
          examination                      assessment                                 analysis
                                                                                                                                                                                 Meishang Award Lightening Design Project/
                                                                                                                                            Guangzhou C&D Yangxi                 Excellence Prize, Meishang Award Cultural Quality
                                                                                                                                                                                 Mansion/ Excellence Prize
                                                                                                                       South China
                                                                                                                                                                                 Excellence Prize for Chinese Residential Projects in
                                                                                                                                            Zhuhai C&D Yangjing
                                                                                                                                                                                 the 6th CREDAWARD Real Estate Design Award
    Carry out floor inspection of    Rank the delivered houses              Build the project fault
    delivered sample houses in       based on “Collections of the          database to analyze and
    all operating items              Unfinished Floor Inspection            solve problems                            Central China         Changsha Jiangshanyue                Gold Plate Award Comprehensive Prize
                                     Examples” and “Collections
                                     of the Decorated Samples                                                                                                                    2020 International Residential Architecture Award,
                                                                                                                                            Wuxi Hexi
                                     Acceptance Inspection”                                                                                                                     2020 America Gold Block Award

                                                                                                                                            Zhangjiagang Shangyuyuan             2020 Comprehensive Award for Classic Residence
                                                                                                                       East China

 C&D Realty’s whole-chain management on the prevention and control of quality risks
                                                                                                                                            Hefei Yonglong Fu                    London Design Excellence Award, UK


Taking preventive measures, C&D Group established a database of product faults to collect problems
                                                                                                                                                                                 Meishang Award Cultural Quality Mansion/
that happen in daily maintenance reports and complaints handling from projects in different areas                                                                                Excellence Prize, CREDAWARD Real Estate
                                                                                                                                            Fuzhou C&D Rongshu Bay
and the inconvenience and unreasonable issues that are found out in the daily work of the customer                                                                               Design Award, International Space Design Award/
                                                                                                                    Southeast China                                              Gold Creation Award Design Prize
relationship department. We analyze and summarize these faults and jointly analyze their causes
and propose solutions with R&D Center, engineering technical department, marketing management
department and the property management company of the Group. By organizing these issues by                                                  Fuzhou C&D Yangzhu                   Meishang Award Landscape Excellence Prize

four categories of planning, design, engineering and sales and feeding them back to the front-end
department, a defective closed-loop system is established to provide reference for later project
development and guarantee the upgrading and iteration of product and service power.                                                                 Honors for designs of C&D Realty in 2020


                                                                                                                                                           29     Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                      About Us       Contribution & Development    Service & Value     High Efficiency & Reliability   Cooperation and Growth      Low Carbon & Green      Dedication & Obligation




      Area                               Project                                               Honor                                         Supply Chain Service
                           Nanjing Lianfa Yunqi                        Gold Plate Award Comprehensive Prize                                  C&D Inc. has been dedicated to providing high-quality LIFT integrated
                                                                                                                                             service supply chain service to the upstream and downstream customers
   East China              Nanjing Lianfa Jadeite Fangshan             Gold Plate Award Comprehensive Prize
                                                                                                                                             in the supply chain. Its subsidiaries organized sophisticated customer
                                                                       The 3rd Award of the 3rd Science and Technology Progress              service management teams and optimized their customer relationship
                           Hangzhou Lianfa Canglong Dajing
                                                                       Assessment of Shanghai Architectural Design Association               management systems to respond to customers’ demands in time, and
                                                                                                                                             meanwhile, to continuously bring values to customers via establishing the
   South China             Nanning Lianfa Zhenjing                     Yuanye Cup Gold Award                                                 long-term cooperation relationship with customers.



                              Honors for designs of Lianfa Group in 2020
                                                                                                                                                  Assisting Alliance Steel Project to Go
                                                                                                                                                  Overseas
High-Quality Service                                                                                                                               C&D Inc. has been operating in the steel industry for years.
                                                                                                                                                   By virtue of its abundant experience in cross-border supply
                                                                                                                                                   operation and its professional service teams, the company
Following the concept of “exploring new values, enabling                                                                                          launched the“Alliance Steel Project”(short reference: AS
more people to live a more quality life”, we pay close                                                                                            Project”) to help Chinese steel factories to enter into Malaysian
attention to the customers’ feelings to details, strictly                                                                                         market to realize the China-Malaysia productivity cooperation
abide by the "Law of the People’s Republic of China                                                                                               and facilitate the “Belt and Road Initiative”.
on Safeguarding the Consumer Rights and Interests",
and formulated internal rules and regulations. In doing                                                                                            With its advantages in the global layout, the company
so, we str ive to provide high - qualit y supply c hain                                                                                            integrates channels and resources and analyzes the supply-
operation services, real estate development projects and                                                                                           and-demand in the global market to collect orders for AS
comprehensive services of the real estate industry chain to                                                                                        Project and reversely makes plans of production and delivery
customers. We also analyze and improve key performance                                                                                             to achieve the strategy of producing according to sales.
indicators, such as service satisfaction and the satisfaction                                                                                      In analyzing markets, the company ranks and classifies
of complaint handling, which helps to continuously improve                                                                                         downstream customers based on their demands to maximize
our ability to manage customer relationships.                                                                                                      the revenue of AS Project through differentiated pricing.




                                                                                                                                                  30   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                     About Us     Contribution & Development    Service & Value   High Efficiency & Reliability   Cooperation and Growth        Low Carbon & Green        Dedication & Obligation




                                                                                                          Service for Property Owner
Providing Service to Fonterra to Explore Domestic Market
                                                                                                          In 2020, C&D Realty conducted a full-year dynamic satisfaction survey from January to December. Such
By virtue of our abundant operation experience in the food supply chain                                   a survey covered the overall satisfaction, loyalty, delivery service, property quality, maintenance, property
accumulated in years, we have become the strategic cooperation partner                                    design, the green in community, community landscape, community plans, and community facilities, as well
of Fonterra, the New Zealand dairy corporation. With our operation service                                as the complaints handling. During the COVID19 pandemic, bearing the customer-oriented awareness in
for the whole supply chain, we helped Fonterra to deliver their products                                  mind from top to down, C&D Realty proactively conducted protection and disinfection works, which greatly
effectively and safely from import to consumers.                                                          improved customer satisfaction. In 2020, the overall customer satisfaction was graded 93 out of 100, which
                                                                                                          is a leading score in the real estate industry.
Based on our food supply chain, we designed a system for supply chain management
and delivery information management for Fonterra. Via the real-time interaction of order,                 Lianfa Group has formulated internal regulations like "Lianfa Group Customer Service Management
inventory, and other data, smart management of the sales and operation procedures and                     Standard" and "Lianfa Group Property Service Standard" to specify the standard of customer service
dynamic inventory management are achieved and the settlement plans for the supplier                       and property service, to comprehensively improve the quality of customer service. In addition,
and consumers are optimized, thus promoting the trading efficiency of the whole supply                    following the concept of “humanization”, Lianfa Group has established a full-cycle customer service
chain and lower the risk in inventory. Meanwhile, the C&D food supply chain has assisted                  system that covers phases of sales, waiting, delivering, and living in.
Fonterra with its Chinese market exploration and with its continuous business growth in
China and provided better quality import foods for Chinese customers.


                                                                                                                   In the waiting phase for the prospective property owner: Lianfa Group formulated "Lianfa Group
                                                                                                                   Guideline on Service Standard" for the Prospective Property Owner and trained and monitored
                                                                                                                   the performance of 9 standard services for the prospective property owner, such as setting pre-
 Helped ANC to Reform Its Purchase and Sale System                                                                 service managers, manufacturing service cards for the prospective property owner, reporting
                                                                                                                   project progresses(called “Lianfa Family sound project”), caring for property owners’ birthdays and
The industrial chain of nickel mine contains multiple layers of intermediate traders, because
                                                                                                                   so on, to improve the service quality for the prospective property owner.
of whom, suppliers and the consumers cannot effectively integrate their resources. As a
result, the production cost stands high but the service quality is not guaranteed. By virtue
of its abundant operation experience in the supply chain, C&D Inc. explored and proposed
a revolutionary solution for the purchasing and sales system of the ANC, the giant in the
nickel mine industry in the Philippines. In the solution, we are responsible for the market
                                                                                                                   In delivering and living in phase: In 2020, Lianfa promoted the establishment of humanistic
development, product sales, and take care of after-sales service, logistics, quality control,
                                                                                                                   communities nationwide. In 2020, Lianfa launched in total 9 kinds of activities of cultural
settlement, and other procedures, while ANC only needs to focus on production. To
                                                                                                                   activities in communities, including garden parties in Spring Festival, thanks-giving activities
this end, we organized a professional project service team to provide a whole-process
                                                                                                                   on Mother’s Day, and suitcase fairs, etc. In total, Lianfa has launched 434 activities for 81
integrated supply chain service which combines “Logistics, Information, Finance, and
                                                                                                                   projects in 8 areas. Besides, Lianfa organized cultural communities to support art groups
trading”. We helped suppliers and consumers to establish mutual trust, reformed the
                                                                                                                   and interest groups to carry out activities. Lianfa has established 53 communities covering
cooperation channels, and saved the intermediate traders to build a flat purchasing and
                                                                                                                   sports, art and culture, and living sectors and launched 168 activities in total in China.
sales system, achieving win-win cooperation among the suppliers, consumers, and the
supply chain service provider.

                                                                                                                                              31    Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                            About Us      Contribution & Development      Service & Value   High Efficiency & Reliability   Cooperation and Growth       Low Carbon & Green      Dedication & Obligation




Oriented by customers’ needs, and taking the
customers’ satisfaction as the vital measure for
                                                                                                                    Complaints Handling
working performance, Lianfa Group conducted an
annual satisfaction survey. Meanwhile, Lianfa Group
coordinated companies in different areas to develop
and implement customer satisfaction improvement
plan for 2020. In 2020, the customer satisfaction rate
of Lianfa Group in the third-party survey reached
85.1%.
                                                                      Lianfa Activities for Building
                                                                       Humanistic Communities




     “Mysterious Guest Project” launched by Lianfa Group
                                                                                                                    To handle customers’ complaints, C&D Realty set up
     In 2020, Lianfa Group conducted secret investigations on its property services along with China                online (Huishenghuo APP / WeChat official account)
     Index Academy, the prestigious research and data analysis institution in the real estate industry.             and offline complaining channels (400 hotline /
                                                                                                                    customer relationship response). After receiving the
     Such secret investigations mainly consider security service, service to customers, equipment                   complaints, the related staff will confirm, follow up,
     management, cleaning service, greening service, and so on. A mysterious guest will                             deal with the complaints in time and enter the solutions
     comprehensively assess the aspects mentioned in the questionnaire of secret investigation, and                 and the results into the customer complaints system.
     take pictures or record sound. The full score for such investigations is 100.                                  The customer could follow up the dealing process by
                                                                                                                    calling the 400 hotline. After the complaint is handled,
     Lianfa Group carried out 54 mysterious guest investigations on residential projects in the
                                                                                                                    the staff for 400 hotline will in turn call the customer for
     first half of 2020 and scored 89.5, and 57 mysterious guest investigations on residential
                                                                                                                    a satisfaction survey and evaluation. In doing so, the
     projects in the second half of 2020 and scored 90. Meanwhile, Lianfa Group secretly
                                                                                                                    service quality of all processes in handling customers’
     investigated 16 non-residential projects throughout the year, including business buildings,
                                                                                                                    complaints should be guaranteed. Besides, as we
     factories, and schools, in which 12 were business buildings (scored 89.3 and 91.9 in the
                                                                                                                    value the efficiency in dealing with complaints, we
     first and second half of 2020 respectively), 3 were factories (scored 89.2 and 87.8 in the
                                                                                                                    prescribe that the complaints must be solved in 5
     first and second half of 2020 respectively), and 1 was a school (scored 96.7 and 93 in the
                                                                                                                    working days. In August 2020, the annual ISO audit for              ISO Certificate for C&D Realty’s
     first and second half of 2020 respectively).
                                                                                                                    C&D Realty’s 400 hotline center was accomplished and                     400 hotline center
                                                                                                                    the ISO Certificate was therefore issued.


                                                                                                                                                       32     Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
厦门建发股份有限公司 2020 社会责任报告   33
                                          About Us    Contribution & Development       Service & Value     High Efficiency & Reliability   Cooperation and Growth     Low Carbon & Green      Dedication & Obligation




Implementation of Production Safety

                                                                       In 2020, sticking to the core value of putting people first and safe development, keeping the awareness of red line, adhering to the principle
                                                                       of “Safety first, prevention first and comprehensive management”, carrying out the safety production responsibility system of the “party and
                                                                       government accountability, a post taking dual responsibilities, collaborative management and accountability for dereliction”, establishing
C&D Inc. strictly implements the safety                                and improving the strictest safety production system, and implementing the management principles of “Whoever in charge takes
production responsibility system. For reinforcing                      responsibilities”, “Whoever in charge of businesses must be responsible for safety” and “Whoever in charge of production and management
the safety production, preventing accidents                            must be responsible for safety”, the major units affiliated to the Company in charge of safety production developed the standardized safety
and guaranteeing the safety of the Company’s                          production procedures according to the Safety Production Standardization Proposal of Xiamen C&D Inc. and Three Years of Implementation
employees and assets, the Company modifies the                         Plan for Enhanced Safety Production Standardization of C&D Group. By the end of 2020, the investment of the Company for safety
systems including Safety Production Management                         production reached 1.86 million CNY in total, and no one was dead during working.
Regulation, Safety Management Method for
Major Events, Report System on Major Events
in Safety Work, Fire Emergency Plan and others                                                   Leading Group for
                                                                                                                                                                              Group Members
in accordance with the Production Safety Law                                                     Safety Production
of People’s Republic of China, Fujian Production
                                                                                                                                                      Group Leader: General Manager (the first person responsible for
Safety Regulation and Safety Production
Management Regulation of C&D Group to ensure                                       In 2020, a leading group for safety production                     safety production)
the safety production accordingly. If any accident                                 was established according to the responsibility
                                                                                                                                                      Deputy Group Leader: the department head of safety production
happens, it shall be rep o r ted immediately                                       system of “party and government accountability,
according to the Emergency Report System to                                        a post taking dual responsibilities, collaborative
                                                                                                                                                      Group Members:
complete a whole set of procedures including                                       management and accountability for dereliction”.
emergency processing, emergency notification,                                                                                                              The head of each division for safety production in major
investigation, accountability, file preparation and                                                                                                        units taking charge of safety production (C&D Logistics, C&D
documentation, the filing catalogue of which will                                                                                                          Paper and C&D Automobile)
be important for the annual safety evaluation.                                                                                                             The head of Project Management Department
                                                                                                                                                           The head of Logistics Management Department
                                                                                                                                                           The head of front-line warehouses or 4S stores



                                                                                                         C&D Leading Group’s Organizational Structure for Safety Production

                                                                                                                                                      34   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
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                                                                                                             the safety production goals of the project; and, for implementing “information registration, pre-job
   Responsibilities of the leading group for safety production:                                              training, education for violators and closed-loop management for safety hazards” and fundamentally
                                                                                                             improving the safety awareness of primary-level operating personnel and managers, it researched and
        Develop and deploy the annual work plan and priorities for safety production, convene                developed the intelligent project system supported by safety publicity classroom as well. In addition,
        regular safety production meeting at a fixed time, implement any decision made in the                C&D Realty also established a safety inspection system in which the safety levels was divided into
        safety working meeting and included in documents and carry out the Safety Production                 three levels based on the danger level and importance to make double guarantees for the safety
        Responsibility System.                                                                               management in the construction site by self-inspection and third-party inspection.

        Direct each unit to establish and improve the safety production management system                    Lianfa Group formulated the Regulations of Lianfa Group on Safety Production of “party and
        and emergency plan.                                                                                  government accountability and a post taking dual responsibilities, collaborative management
        Inspect the implementation of each safety production measures, and suggest on the                    and accountability for dereliction” according to the Production Safety Law of People’s Republic
        rectification of safety production hazards.                                                          of China, Xiamen Regulation on Safety Production of Party and Government Accountability and
                                                                                                             a Post Taking Dual Responsibilities and the related documents of the Municipal Office of the
        Evaluate the annual safety production performance of each unit and urge them to
                                                                                                             Work Safety Commission and the State Asset Regulatory Commission of the city; in the meantime,
        continuously improve and complete its safety production procedures.
                                                                                                             Lianfa Group also had developed eight rules for the “safety system” covering all aspects of the safety
        Organize trainings for the persons in charge and the management staff of the safety                  management in 2020, including organizational structure, system, objective and letters of responsibility,
        production.                                                                                          plan and summary, meeting, safety education, inspection, rectification and documentation after three
                                                                                                             years of improvement since proposing the concept of “safety system” and issuing the first edition of
        Organize safety inspection seasonally and before the typhoon and flood season, major
                                                                                                             “Guide to Safety System” in 2017.
        holidays and important activities, and take targeted measures for typhoon and flood
        prevention; make suggestions on the hidden safety hazards during the inspection and
        urge them to rectify.

        Check and implement the shift system headed by leaders, and urge each unit to take                         Level of
                                                                                                                                                                             Item
                                                                                                                 Investigation
        proper and sufficient safety measures before the typhoon and flood season and major
                                                                                                                                       It mainly applies to the acceptance and use permit of tower cranes and
        holidays.                                                                                               One-Vote Veto
                                                                                                                                       construction elevator, high and large form board and basket; the score will
                                                                                                                   Clause
                                                                                                                                       be zero if any above mentioned problem occurs.

In 2020, for guaranteeing the safety education for primary-level operating personnel and managers,                                     It mainly applies to frontier protection and external scaffolding; the score will
                                                                                                                 Major Clause
C&D Realty established a three-level control system in the Group which is “the safety production                                      be zero if any single deduction is over 6 points.
management committee of the Group – the leading group of the regional companies for safety –
                                                                                                                                       It mainly applies to the construction elevators, fire-fighting equipment, exit
the working group of municipal companies for safety” to specify the safety production management
                                                                                                               General Clause          passageway, safety helmet and others; the score would be deducted by one
measures, management requirements and appraisal system. Based on the system, each project
                                                                                                                                       point for each violation.
department should assign a safety supervisor in charge of the technical disclosure of the safety
production and the implementation of precautionary measures in the site of Party A’s for ensuring                                   Three-level Safety Supervision System of C&D Realty

                                                                                                                                                  35   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
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Daily Safety Management

In accordance to the laws, regulations, standards, specifications and related requirements of safety
production, C&D Inc. strictly manages and controls the safety production so that each step of the
production and operation complies with the above mentioned provisions, and that the employees,
machinery, materials and environment are under good production condition. Meanwhile, for ensuring
the smooth operation and normal service of such equipment, the Company commits to invest
sufficient fund for safety production, provide adequate fire-fighting equipment of corresponding types,
reinforce the management of fire-fighting equipment and make regular maintenance and inspection,
while making records for the equipment so as to make maintenance accordingly and evaluating the
enforcement of the laws, regulations, standards and specifications of safety production and the rules,
regulations and operating instructions of the Company at least once a year to continuously make
improvement and constantly strengthen the standardization construction of safety production.




     ERP-based safety production management system
     By actively carrying out IT application to enable safety production and developing
     ERP-based safety production management system to improve quality and efficiency
     of technology-based safety management, C&D Inc. is transforming its inspection and                           According to the regulations of the Company, a project shall be delegated to the Party with required
     management procedures from the traditional document-based communication to                                   qualifications or related conditions. When contractually leasing the plant, warehouse, project or
     normalized E-communication.                                                                                  buildings, the Company shall check the safety production conditions or corresponding qualifications
                                                                                                                  of and sign the Safety Production Responsibility Statement with such contractors and leasee to clarify
     In April of 2020, the daily safety report system was introduced to Enterprise WeChat by                      the safety production responsibilities and obligations of both Parties. Also, the Company shall manage
     the leading group for safety production to electronize the safety inspection and normalize                   the safety production, coordinate between the contractor and the leasee and periodically make
     the inspection standard, including the management of doors and windows, flammable                            inspection to find and rectify problems in a timely manner.
     materials, electrical equipment and other contents related to the safety of office space;
     and its characteristic of being easy to use helps to the efficient supervision management                    In 2020, the leading group for safety production of C&D Inc. made site inspection for the safety
     and implementation of inspection for the daily safety in the office space.                                   production of major units according to the annual safety production plan, including the C&D Logistics (7
                                                                                                                  warehouses) and C&D Automobile (10 4S stores) etc.




                                                                                                                                                     36   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
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Safety Training

In 2020, the departments of the education and training for safety production were established by
the major production units of C&D Inc. to formulate and implement the education and training plan                  Company Name                                            Emergency Drill
for safety production based on the regulations and positions, further improve the safety production
                                                                                                                                           Focusing on the improvement of the front-line employees’ professional
awareness of our employees and increase the frequency of trainings and drills for ensuring that the
                                                                                                                                           skills, the Company invited fire protection specialists to carry out public
employees have the knowledge of safety production and the ability to deal with the emergencies,
                                                                                                                                           educations for fire safety concerning the use of fire-fighting equipment
are familiar with the safety production regulations and safety operation rules and master the safety
                                                                                                                                           and others, organized fire-fighting drills, arranged 35 trainings about the
production skills. During the year, we organized 12,091 hours of safety trainings, with 84,029
                                                                                                                                           knowledge on fire-fighting, conducted trainings for all employees every
employees participating in.                                                                                          C&D Logistics
                                                                                                                                           half year, and developed emergency drills and fire evacuations seasonally
                                                                                                                                           during the year, for improving the awareness of fire safety and the ability to
Besides, the Company also built a safety production emergency system by developing emergency
                                                                                                                                           handle with the emergency, self-rescue and escape.
plans for safety production accidents including typhoon and flood prevention and emergency disposal
proposals or measures for major operating units as required, while organizing emergency drills for                                         Concentrating on the practice of fire fighting, the Company organized the
safety production, continuously modifying and completing the emergency plan and reinforcing the                                            activity themed by “concentrating on the joint development of the Party and
emergency management measures. In 2020, a total of 92 emergency and fire-fighting drills were                                              Group organizations, and popularizing the knowledge on people and vehicle
conducted by C&D Inc. and its subsidiaries, including emergent evacuation, fire fighting, flood                                            safety” together with Hongai Hospital in July 1, 2020, invited teachers from
prevention and others for C-class warehouse, 4S stores and office buildings. By focusing on safety                                         fire service center to train for fire safety and arranged trainings and drills for
theories and fire-fighting drills, the major production units of C&D Inc. for safety production always                                     fire escape with the assistance of ex-firefighters who are our employees at
                                                                                                                   C&D Automobile
endeavored to ensure the stability of the safety production based on the actual situation of the                                           present. On this basis, for creating a safe production environment for every
industry.                                                                                                                                  employee, popularizing the knowledge on safety production and enhancing
                                                                                                                                           the ability of front-line employees to handle with the fire emergency, we also
                                                                                                                                           arranged regional safety drills.

                                                                                                                                           Since the Company puts more emphasis on the scene simulation drills,
                                                                                                                                           the fire squadron in the jurisdiction was invited by the Company to
                                                                                                                                           explain the knowledge on fire-fighting and the how to use the fire-fighting
                                                                                                                                           equipment, simulate the dangerous cases based on the actual situation
                                                                                                                      C&D Paper
                                                                                                                                           of our warehouses and organize drills for fire evacuation and emergency
                                                                                                                                           treatment, which was helpful to improve the contingency plan.


         Fire-fighting Drill of C&D Inc. for                                                                              Emergency Drill and Fire Drill Organized by the Subsidiaries of C&D Inc.
                Containers in winter                                 Fire Drill by C&D Inc.

                                                                                                                                                     37    Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
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                                                                                                           Guarantee of Information Safety
Safety training of Lianfa Group for Zhangzhou Junling Yihao
Project
                                                                                                           With the quick popularization of information technology in supply chain management, the information
In 2020, according to the safety management system, the construction teams, as                             safety has come to the sight of the practitioners. Complying with the laws and regulations such as
required by Lianfa Group, established safety education and training system for ensuring                    Cybersecurity Law of the People's Republic of China, Management Measures for Classified Protection
that the employees received three-level educations, and that the managers and full-                        of Information Safety, the Company establishes the organization in charge of information safety with
time safety officers were educated and trained annually. During this year, Lianfa Group                    clearly specified duties, and takes safety production measures for guaranteeing the information safety
arranged pre-job safety trainings for the employees of Zhangzhou Junling Yihao project,                    in terms of authority management, network management, equipment management, computer room
while educating the violators in safety production. In addition, based on the principle of                 management, application management, process management, data management, information safety
“safety is the first, and prevention is the most”, the safety education and training system              management and others.
aims to improve the labor security measures, strictly implement the safety operation
regulation and ensure to “not hurt yourself, not hurt others and be not hurt by others”.                 For the application of network security technology, the Company effectively improves the network
And with the assistance of the system, a project department could standardize the safety                   security by adopting a series of managerial and technical measures such as the multi-regional data
production of the project, enhance the knowledge of our employees on safety production                     center, network firewall, virtual network extranet, network behavior auditing, network vulnerability
and improve the safety awareness and safety protection ability of our employees for                        scanning, network intrusion detection, network transmission, data encryption and network
effectively reducing the accidents in the future.                                                          access strategy; signs a Confidentiality Agreement with every new employee or incorporates the
                                                                                                           confidentiality clauses to the labor contract with specified information related to safety responsibilities;
                                                                                                           and focuses on the protection of customer information and privacy to clearly specify that any unit or
                                                                                                           individual violating the regulations on information safety shall be punished on a case-by-case base,
                                                                                                           while the ones with serious circumstances shall be dismissed and be held accountable economically
                                                                                                           and legally.

                                                                                                           In order to guarantee the information safety, the Company signs an Employee Non-disclosure
                                                                                                           Agreement with every employee, covering the management information, financial information and
                                                                                                           technical information etc. In 2020, C&D Inc. obtained Grade II certification for Classified Protection
                                                                                                           of Information System Security, which proves that we are competent to protect the core data of
                                                                                                           production and operation and the privacy of our customers adequately.



            Safety training of Lianfa Group for Zhangzhou Junling Yihao Project




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In 2020, for further reinforcing the construction
of the Company’s information safety system,
the Company improved the effects of video                                                                                  Emergency drill for IDC network core
conferences between different platforms by
building a safe, stable and convenient network-                                                                            In December of 2012, an emergency drill for IDC network core was conducted by the
based video conference platform, while                                                                                     Company to simulate the failure of each network core devices and the switches between
purchasing sd-wan bandwidth for the platform                                                                               equipments and lines based on the Emergency Recovery Plan for IDC Network Core
companies and major overseas points of                                                                                     Devices. Being commenced at 10:30 and completed at 12:00 of the same day, the drill
purchase, for ensuring the high availability of               Grade II certification for Classified                        lasted for 1 hour and 30 minutes, and the active-standby switch with high availability for
the business system. In addition, the network             Protection of Information System Security                        the equipment was completed within 5s to achieve a seamless handover. Part of the
analysis and backtrack system was introduced                                                                               switches between single equipment and line were also completed within 1 minute. The
by the Company to inbuilt probes in the key nodes of the data center and capture and save the data                         whole process of the drill was recorded and videoed strictly, which proves that the plan is
package flow for providing data supports to the future performance analysis, intrusion prevention, non-                    practical to apply and the essential equipment are highly available to use.
authorized access retracing and others, while the backup system for shares was also established to
run backup plans and exercise the data recovery. In addition, the Company also improved the access
rate of users and increased the traffic by programming and developing the storage pool for public
distributed file system, purchasing hardware and replacing the firewall at the entrance of shares office
space, and resolved the existing single-point hidden troubles by adding corresponding redundancy
units or dual-computer hot standby function.

                                                                                                                           Information safety switching drill arranged by the
For minimizing the impact of the emergency on the operation of IDC network core devices and
financial affairs of the Company, the Emergency Recovery Plan for IDC Network Core Devices was                             Company
formulated by the Company to specify the strategies, resources, steps and procedures based on
                                                                                                                           In August of 2020, the Company arranged a switching drill for improving the stability
which the maintenance staffs of IDC network core devices handle with the unexpected emergency
                                                                                                                           and availability of ERP, preventing the system failure caused by software and hardware,
including failure and breakdown of the production system, and interrupted data processing. In addition,
                                                                                                                           quickly responding to the failure and realizing the switching between the production
at the night of every Wednesday, the Company makes recovery tests for backup data to automatically
                                                                                                                           environment of C&D building and the disaster recovery environment of Xiang’an
restore the backup data to the testing environment, and arranges drills for information safety to ensure
                                                                                                                           computer room, including pre-NGINX services, DOCKER cluster service, timed task
the normal operation of ERP system.
                                                                                                                           service, coding service and the verification of ERP system functions.




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                                                                                Promotion of Supplier Management
Inn 2020, the Company tentatively innovated and developed                       The production units of C&D Inc. formulated the Safety Production Responsibility Statement, Bidding
network information safety propaganda. During the safety                        Document of Stock Companies and other regulatory systems to different business characteristics
week, it launched an applet in Enterprise WeChat used to                        based on different business areas in the actual operation for the compliance supplier management.
check if the password was disclosed, which was applied for                      In the process of the bid evaluation, the Company shall make strict evaluation from various aspects
1,595 times at then, effectively preventing the employees                       such as the bidder’s qualification、the environmental protection measures、service capacity、quality
from disclosing password. Meanwhile, two network                                and safety measures input of suppliers、 the major materials and equipment affecting the quality of a
information safety trainings respectively themed by “thoughts                  project, so as to ensure the safe operation of a project.
on enterprise safety construction in the context of attack-
defense confrontation” and “safety development in the
viewpoint of attacker” were held during the year, with 22
employees participating in the training.                                              Red and Yellow Card Warning System of C&D Inc. for
                                                                                      Contractors
                                                                                      For further strengthening the management of the contractors, C&D Inc. developed Red and
                                                                                      Yellow Card Warning System for Project Management for the Company and its ongoing
                                                                                      projects and new projects in the future to clarify the management requirements for the
                                                                                      quality, safety and progress of projects, among which the yellow card would be given if
                                                                                      violating the safety regulation once in a single inspection within any bid phase; the red
                                                                                      card would be given if violating the safety regulation twice accumulatively; the yellow card
                                                                                      would be given if avoiding the joint inspection and the inspection for quality, safety and
                                                                                      progress once within any bid section; the yellow card would be given if the initiating project
                                                                                      collaboration management system behind time or incompletely (the initiation shall be
                                                                                      completed before the commencement of basement’s bottom plate) to result in the abnormal
                                                                                      operation and problems involving quality, safety and progress. In the end, the red and
                                                                                      yellow card warning shall be rechecked during the next season, and the red card would be
                                                                                      given if any warned item violates the safety regulation again.

                                                                                      After giving the red and yellow card, the engineering department of such regional company
                                                                                      shall urge the related departments to make rectifications, analyze underlying causes of the
                          Network Information Safety Training                         hidden hazards and inspect other works for troubleshooting similar problems.



                                                                                                                   40   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
厦门建发股份有限公司 2020 社会责任报告   41
                                         About Us   Contribution & Development   Service & Value   High Efficiency & Reliability   Cooperation and Growth         Low Carbon & Green      Dedication & Obligation




Attraction and Reservation

Strictly according to the Labor Law of the
People’s Republic of China, the Labor Contract
Law of the People’s Republic of China and
other laws and regulations and based on the                       12,752                                                      11,735
principle of fair and legal employment, C&D Inc.                                 8,143                           7,755
improves its compensation plan, safeguards
the rights and interests of employees, cares for                                                                                         1,405
the mental and physical health of employees
and focuses on the democratic management                           Male          Female                     Less than 30     31 ~ 50   51 years old
                                                                                                            years old                   or above
for improving the employees’ enthusiasm and
the group cohesiveness. Meanwhile, in order to            Number of Employees By Gender                       Number of Employees by Age
prohibit and reject child labor and forced labor
in any way, C&D Inc. formulates the Human
Resources Management Regulation, Salary and                                      Employees of C&D Inc. in 2020
Welfare Management Regulation, Intermediate
Managers Management Regulation, Rewards
and Punishments Management Regulation and
other management regulations to ensure that the
employees of different ages, genders, nations
and cultural backgrounds could be treated equally
and enjoy fair job opportunities.

As of December 31, 2020, C&D Inc. had
20,895 employees without any employment
discrimination, child labor and forced labor.




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                                                                                                              Development and Training
     C&D Inc. initially launched restricted shares incentive plan

                                                                                                              Insisting on the concept of growing together with our employees, C&D Inc. constantly completes the
     In 2020, the Company launched restricted shares incentive plan to grant 28.352                           training system and optimizes the employee growth and development system to create opportunities
     million shares in total to 278 employees including directors, senior managers and                        for the continuous growth of employees, widen the channel of promotion, provide a platform for
     intermediate managers, accounting for 1.00% of the Company’s total equity. The                          employees to exercise their special talents and escort for the development and reserve of talents.
     incentive plan is intended to incent the intermediate managers for improving the                         Besides, committing itself to cultivate the excellent leader of the industry and senior managers of
     profitability, growth ability, functional quality and other aspects of the Company                       the industry, the Company also gives direction to the development of employees, while establishing
     and highlighting the confidence of the Company to the future development and                             a dual-channel career development system to provide a broader development space for all of the
     the determination of the Company to share the fruits of development with our                             managers and employees.
     employees.




C&D Realty formulated the Human Resources Management System of C&D Realty Co., Ltd.,
Human Resources Management Manual of C&D Realty Co., Ltd. and others, including the main                                                                          Junior employee
management principle on the recruitment, the recruitment and approval procedures of human
resource, the establishment of nationally shared recruitment channel, system and other platforms,
campus recruitment and others.                                                                                                                           Immediate and senior employee


For ensuring the legality of the employment, Lianfa Group develops the Human Resources
Management Regulation of Lianfa Group. according to the related laws and regulations of the
                                                                                                                                      Specialist                                                   Junior
Government and combining with the actual situations of the Company to safeguard the rights and                                                                                                    manager
interests of employees. Meanwhile, Lianfa Group also implements the Corporation Pension Plan
according to the Measures of Administration of Corporation Pension and purchases “Personal                                            Senior                                                   Intermediate
                                                                                                                                      specialist                                                  manager
Accident Insurance” and “Critical Illness Insurance” for on-the-job employees to guarantee their
benefits and handle with their difficulties resulted from critical illness and accidents.                                                                                                          Senior
                                                                                                                                 Industry leader
                                                                                                                                                                                                  manager


                                                                                                                                               Employees’ Development Path of C&D Inc.


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                                                                                                      Employee Training
2020 Labor Skill Competition of C&D Inc.
                                                                                                      Focusing on the training and career growth of employees, the Company establishes a complete
On May 6 of 2020, C&D Inc. held an online activity themed by “the Laborers are the                   training management system and course system meeting the characteristics and job requirement of
Model of C&D Inc.”. The competition with “small tools and high efficiency” was held                the Company’s business, including basic business training, risk prevention training, new employees
through inner internet, with 109 works from 82 competitors in 24 companies being                      training camp, business mainstay training and the business management training for intermediate
received, including office software tips, information tools promotion and office APP                  and senior managers, the rich training form and training content of which help our employees to keep
recommendations. The works for the competition were browsed by 16,000 people from                     learning and improving so as to jointly create a learning organization forging ahead with determination.
32 companies in 8 cities, with over 150,000 people viewing the works, which set a new
record since the labor skill competition.                                                             In order to take full advantages of the enterprise and universities/colleges to cultivate more applied
                                                                                                      talents with high quality and high professional qualification for enterprises, C&D Inc. establishes a
                                                                                                      long-term cooperation with over 10 universities and colleges, while setting up “joint training classes”
                                                                                                      with Fujian Chuanzheng Communications College, Quanzhou Vocational and Technical University
                                                                                                      and Xiamen Technical College to jointly train professional talents for satisfying the demands of
                                                                                                      interdisciplinary talents. In 2020, the average number of hours per employee trained of C&D Inc. is
                                                                                                      22.92 hours.


                                                                                                                              Division                            Subdivision             Total training hours

                                                                                                                                                               Senior managers                   2,392

                                                                                                                                    Total training hours
                                                                                                                                                            Intermediate managers              67,554.4
                                                                                                                                    by rank

                                                                                                                                                                  General staff                409,085.6
                                                                                                          Employee Training
                                                                                                                                                                      Male                     296,445.5
                                                                                                                                    Total training hours
                                                                                                                                    by gender
                                                                                                                                                                    Female                     182,586.5
                      2020 Labor Skill Competition of C&D Inc.



                                                                                                                                2020 Total Employee Training Hours of C&D Inc


                                                                                                                                         44   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
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                                                                                                                                       A training for general managers aims to comprehensively
                                                                                                   Zhenshi                             improve the management ability, expand the vision and
                             Training system
                                                                                                    Plan                               enlarge the pattern to reserve forces for senior managers




                                                                                                                                       A training for intermediate and senior executives aims to
                                                                                                    Panshi                             improve the comprehensiveness of professional abilities
                                                                                                     Plan                              (from being proficient in single module to being familiar with
        C&D Inc.                                        Subsidiaries
                                                                                                                                       whole modules) and comprehensively enhance management
Managers training                               Business process training                                                              abilities for reserving forces for intermediate managers
Business backbone training                      Product knowledge training
Risk prevention training                        Job skills training
New employee training                           New employee orientation
management                                                                                           Pushi                             A training for reserve talents aims to develop highly potential
                                                training
                                                                                                     Plan                              talents for intermediate reserve force



                Employee Training System of C&D Inc.
                                                                                                                                       A training for professionals aims to comprehensively improve
                                                                                                    Yaoshi
                                                                                                                                       the ability of professionals and reinforce the construction of
                                                                                                     Plan
                                                                                                                                       professional team




                                                                                                                                       A training for fresh graduates aims to “output” reserve talents
                                                                                                   Qianshi
                                                                                                                                       for the development of the Company based on 1.5 years of
                                                                                                    Plan
                                                                                                                                       training




                                                                                                                            The Talant Traning System of Lianfa Group


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In 2020, C&D Realty, in the way of year-end assessment and professionals counting, checked the
potential reserve talents of different levels and professional emphasis, so that the Human Resources
Department of the Company and the employers could focus on their development, and that the                                   “Zhang Jian Shi” Learning Platform Training of C&D Realty
function center of the Company and the employers could hold trainings for such reserve talents
to reserve executives for the management and professional fields, while identifying and creating
opportunities for such talents by a series of assessment such as performance evaluation, training and                        In 2020, for enhancing the safety awareness of employees, C&D Realty developed and
reply, and internal competition. In addition, the talents training system could be adjusted by the training                  uploaded the safety-related courses to the course center of Zhang Jian Shi learning
center based on the business development for building a business value oriented “3-1-5-2” talents                          platform for all employees to learn. By the end of September, 2020, a total of 219
supply chain.                                                                                                                employees learned and passed the examination for safety training, with accumulated
                                                                                                                             learning time of 110 hours. Besides, C&D Realty also organized safety trainings for
                         “3-1-5-2” Internal Talents Supply Chain of C&D Realty                                             the person in charge of safety and other safety managers, including safety laws and
                                                                                                                             regulations, safety production responsibility, safety behavior, safety management and
                                                                                                                             safety system, with total 47 employees participating the training, among which, 21
                                                                                                                             employees obtained the certificate for the preliminary examination and 27 employees
        Three                         One                       Five                        Two                              obtained the certificate for secondary examination.
       Abilities                  Professional                 Systems                    Platforms




                                 Special Training
     Leadership,                  Project for New          Course, lecturer/             Online learning
  professional ability        Employees (non-fresh       supervisor, operation,         and examination
  and general ability          graduates) to Qualify         qualification                 platform and
                                 for the Positions          and evaluation,                  hardware
                               and “Qi Jian Sheng”          knowledge                   infrastructure
                              Campus Recruitment             management                       platform
                              Plan, a special training
                                 project for young
                                  reserve talents                                                                                                 “Zhang Jian Shi” Learning Platform Training




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Communication and Care

For fully guaranteeing the rights and interests of employees, the Company establishes the labor union
to seek advice (which would be put into practice after agreed by the labor union) from employees
                                                                                                                         SishiDelighted Reading | “Reading Nourishing Youth”
for the issues involving salary, welfare, social insurance and other vital interests of employees. In
addition, according to the Corporation Law and Articles of Incorporation, the employee supervisor                        Reading Club
election system adopted by the Company shall be considered as a guarantee for our employees to                           In September of 2020, for dealing with public
enjoy sufficient rights in the governance of the Company. Meanwhile, the labor union shall also play a                   health issues and economic pressures, the
constructive role in safeguarding employee benefits and coordinating the internal relationship provided                  “Reading Nourishing Youth” Reading Club was
that the Company actively supports the labor union by law and transfers labor union expenditure in a                     established by C&D Inc., in which the honored
timely manner. In addition, the employees are able to directly suggest to the top management of the                      guests from different industries and our young
Company by E-mail and others.                                                                                            employees actively participated to share books              “Reading Nourishing Youth”
                                                                                                                         and feelings & experiences.                                        Reading Club




       2020 Symposium for Ideological Trend
                                                                                                                         Lianfa Group brings warmth to the front-line employees in the
      In April of 2020, for enhancing the communication between the headquarter and its
      subsidiaries, further understanding the basic conditions of each subsidiary and collecting
                                                                                                                         fight against COVID-19
      suggestions and opinions from employees by multi-channels, C&D Inc. organized a                                    In 2020, in the face of COVID-19, sticking to the post with a strong sense of responsibility
      symposium in respect of ideological trend to make a survey of the administration staff and                         and devoting itself to the silent fight against COVID-19, Lianfa Group Real Estate
      local union for taking targeted measures, assisting to resolve problems and difficulties,                          purchased milks, instant noodles and other daily necessities for 93 projects in 12 cities
      directing the improvement of the administration and the construction of enterprise culture                         across the State, bringing warmth to 2,118 front-line employees working in the property
      and facilitating the continuous development of the enterprise.                                                     management companies.

      The survey shows that each company widely knows and highly recognizes the business
      development, management mechanism and enterprise culture of C&D Inc.; the majority
      of the companies develops steadily and globally, making a remarkable achievement
      of “Go Global”; and most companies and labor unions make efforts on the internally
      systematic and compliance management, employee care, employees’ rights and interests
      maintenance, culture activities, welfare, logistical support and others.                                              Lianfa Group brings warmth to the front-line employees in the fight against COVID-19



                                                                                                                                                     47   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                             About Us        Contribution & Development   Service & Value   High Efficiency & Reliability   Cooperation and Growth     Low Carbon & Green      Dedication & Obligation




In 2020, C&D Realty actively developed colorful and healthy culture and care activities, organized                  In 2020, for a better understanding the internal management and existing problems and listening
“Online Cooking Contest” in March - “the month of employee care” for the construction of family                 to the voice and suggestions of our employees, C&D Realty conducted employee satisfaction and
culture, encouraged the groups to clock for the daily fitness by developing the activity themed by “Keen           engagement survey, which included the enterprise culture, teamwork and communication, salary
on Fitness” to promote public fitness program, establishing C&D Realty Art Group made up of vocal                  and performance evaluation, job instruction and assistance, training and job feedback, work and life
music club, painting club, dancing club, instrument club, literature club, language club and movie club             balance and others, with total 3,346 employees involved and the participation rate reaching 99.4%.
to further explore the talent and skill of our employees and build a stage for them to show themselves,             After publishing the evaluation results, a meeting was held by each company so as to investigate and
assisting the families of our employees with financial difficulty and caring for the front-line employees           rectify the main problems concerned based on the evaluation results.
to build a “heart-warming” organization, and setting up “work card convenience shop” so that the
employees could enjoy the exclusive discounts provided by self-support shops, Hyatt Hotels, nursing
homes and others.




     Employee Care Month of C&D Realty
    From May to June in 2020, the labor unions
    of C&D Realty at different cities organized
    distinctive activities of “Happy Family Day” full of
    childishness for our employees. The labor union
    directly affiliated to the Company developed
    the activity of “Online Performance Contest” to
    show talent and share family time. Nanning labor
    union organized a series of activities including
    handwork for promoting communication between
    parents and children. And Hefei labor union,
    centering on “I love you”, delivered secret gift
    to the family of our employees for improving the
    happiness of our employees.




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                                          About Us     Contribution & Development    Service & Value      High Efficiency & Reliability     Cooperation and Growth            Low Carbon & Green      Dedication & Obligation




Addressing Climate Change                                                                                             Risk
                                                                                                                     Sources
                                                                                                                                                           Risk Description                                     Solutions


                                                                                                                                     The Ministry of Ecology and Environment of the People’s
                                                                                                                                     Republic of China established the Department of Climate
Extreme weather caused by climate change has brought lots of challenges for water resource, ecology                                  Change to actively facilitate the policies and laws of climate
environment and energy development. C&D Inc. has actively responded to the national development                                      change

strategy by formulating and implementing the Contingency Plan for Emergency Management, the                                          Legal documents and supporting system of the carbon
Preplan for Typhoon and Flood Prevention and the Contingency Plan for Earthquake. The Company                                        emissions trading system
                                                                                                                   Policies and                                                                       Actively explore relevant
organizes the subsidiary corporations and warehouses to carry out self-examinations annually on                       Laws           In 2020, the Ministry of Ecology and Environment of the          business opportunities
typhoon and flood prevention, which focusing on whether the facilities are complete, whether the                                     People’s Republic of China released news on implementing
                                                                                                                                     the Interim Measures for the Management of Carbon
drainage system in the site can work properly, whether there are hanging objects in the field that are                               Emission Rights Trading in 2021 to launch the carbon
at risk of falling, and whether there are hidden dangers of mountain torrents, landslides and mudslides                              emission rights trading system
around the site.                                                                                                                     China aims to have CO2 emissions peak before 2030 and
                                                                                                                                     achieve carbon neutrality before 2060
For contributing to the national low-carbon development and ecology environment improvement, the
Company fully recognizes the impact of climate change, and identifies and analyzes the risks and
                                                                                                                                                                                                      Eliminate and timely update
challenges of it to take solutions.                                                                                                                                                                   the old-fashioned equipment
                                                                                                                                     Judgement on the characteristic and adaptability of the new
                                                                                                                                                                                                      and process
                                                                                                                                     technology and process as well as elimination of backward
                                                                                                                                     processes and equipment will probably lead to an increase        Improve the efficiency and
                                                                                                                                     in enterprise costs,                                             speed up by new process
                                                                                                                  Technology                                                                          and technology, such as
                                                                                                                                     The whole operation efficiency of the facilities is relatively
                                                                                                                                                                                                      promote the aluminium
                                                                                                                                     low
                                                                                                                                                                                                      film climbing scaffold and
                                                                                                                                                                                                      prefabricated building


                                                                                                                                                                                                      Establish a statistical
                                                                                                                                     The Company predicts that the greenhouse gas emission            mechanism of greenhouse gas
                                                                                                                                     will grow up along with the business growth                      emission, and compare the
                                                                                                                  Reputation                                                                          trends


                                                                                                                                     The increase of extreme weather in local areas caused by
                                                                                                                                     global climate change such as typhoon, rainstorm, hail,          Continuously complete the
                                                                                                                                     etc., may have potential impact on external facilities such      contingency system
                                                                                                                  Real Forms         as company offices, warehouses




                                                                                                                                                         50     Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                          About Us     Contribution & Development    Service & Value      High Efficiency & Reliability   Cooperation and Growth           Low Carbon & Green    Dedication & Obligation




Optimize Resource Utilization

C&D Inc. fully implements the relevant laws, regulations and rules of the Environmental Protection                The resources used in the Company’s business mainly include water, electricity, gasoline, diesel
Law of the People's Republic of China and the Law of the People's Republic of China on Conserving                 and natural gas. As for water resource, the Company mainly uses water from the municipal pipeline
Energy to advance energy conservation in all aspects, respond to the national call of “green and envir           network within its office, construction and operation. By the measures of using energy-saving and
onmental protection,and low-carbon lifestyle”, and take the corporate responsibility of environmental           water-saving equipment, the renovation of green irrigation system, the design of rainwater and
protection by fully integrating the awareness of open-source and energy-saving into the environmental             sewage diversion, and the configuration of medium water recovery system, we have lowered the
management. We formulate the internal systems of the Energy Conservation Management System,                       water consumption and impact on the water environment in the activities.
the Energy Management System, the Electricity Conservation System, the Gas Conservation System
                                                                                                                                                                 Unit
                                                                                                                                                                                 Supply Chain    Real Estate
and the Fuel Conservation System, etc., and actively carry out renovation to save energy and reduce                              Energy Type
                                                                                                                                                                                   Business       Business
                                                                                                                                                                                                                       Total
consumption, improve the efficiency of resource utilization, reduce greenhouse gas emission, and                           Electricity Consumption               kWh             9,791,866.00    6,058,645.00     15,850,511.00
lower the impact caused by climate change.
                                                                                                                           Gasoline Consumption                    liter          146,289.50     164,034.90         310,324.40

                                                                                                                             Diesel Consumption                    liter           3,111.22        9,433.44         12,544.66
                                                                                                                   Liquefied Petroleum Gas Consumption             m3                 0            5,971.00          5,971.00
                                                                                                                          Natural gas Consumption*                 m3                 0            7,079.00          7,079.00
                                                                                                                             Heat Consumption*                     GJ              46,014.75       1,400.00         47,414.75
                                                                                                                          Fresh Water Consumption                  m3             30,6070.50     22,4911.20         53,0981.70

                                                                                                                    Comprehensive Energy Consumption          ton CO2 e            2,933.29        1,012.31          3,945.60
                                                                                                                                                           kg standard coal/
                                                                                                                             Energy Use Density                                        -              -               9.113
                                                                                                                                                            million revenue

                                                                                                                  *Among which, the consumption of heat and natural gas in the real estate sector only includes the data of Lianfa
                                                                                                                  Group in 2020.


                                                                                                                  Besides, C&D Inc. actively promotes all kinds of energy-saving and environmental protection
                                                                                                                  measures. In 2020, the Company has continuously upgraded energy consumption management of
                                                                                                                  the office building by displaying and analyzing the consumption data in real-time, and enhancing the
                                                                                                                  precision of energy consumption management. The Company continuously promotes the use of LED
                                                                                                                  energy-saving lights, requires employees to timely turn off the electricity device after work. Besides,
                                                                                                                  the Company also encourages employees to take public traffic and arrange commuter shuttles for
                                                                                                                  their work on main traffic routes in Xiamen to reduce the use of private cars for energy conservation
                                                                                                                  and emission reduction.

                                                                                                                                                     51    Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                    About Us      Contribution & Development    Service & Value    High Efficiency & Reliability   Cooperation and Growth     Low Carbon & Green      Dedication & Obligation




The main measures taken by the C&D Realty on lowering the impact of construction projects on                         Carry out noise-reduction process, establish the supervision system of construction
local environment and consumption reduction are as follows.                                                          worksite management, and strictly control the night construction to ensure the noise
                                                                                                                     is under the local environment standards.
Promote and adopt the aluminium scaffolding. The aluminium scaffolding can be used
repeatedly and recycled, which would greatly reduce the usage of wood planking to reduce the                         Development of green buildings: Adhere to the concept of green building design and
resource consumption; It can also rise along with the main structure to reduce the traditional                       obtain a number of green building certifications.
steel scaffolding usage, improve the look-and-feel, and reduce the material loss.

The exterior walls are optimized to be all concrete to avoid dust pollution, plastering, reduce wet
work such as plastering masonry, and control the dust in the worksite. Besides, C&D Realty has
strengthened the civilized construction management and adopted effective measures to avoid
dust flying. The dust control system and spray dedusting system have been adopted in the
worksite. When the dust exceeds the standard, the spray will start automatically to ensure that
the dust on site is strongly controlled; All of the construction vehicle tires must be washed before
entering or exiting in case any mud be carried out from the worksite; All of the main roads of
construction site must be paved and hardened, and the place where the construction materials
set should be as flat as possible; Measures should be taken on the construction site such as
immobilization or green sprinkling to store the construction soil; The construction group should
take a break off when it is windy enough to make dust.                                                                                      The poster of energy conservation
                                                                                                                                                 and emission reduction
As for water resource, we adopt the rainwater and sewage diversion design in the
drainage system; After passing through the septic tank, precipitating by oil removal with the
clean water for automotive equipment, the construction sewage would be discharged into
pipeline after reaching the standards; Besides, the reclaimed water reuse system has been
strongly promoted. The rainwater would be recycled and reused after being collected and filtered
for washing the cars or roads or watering the plants, which would effectively reduce water
consumption.




                                                                                                                                              52   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                                 About Us        Contribution & Development       Service & Value   High Efficiency & Reliability   Cooperation and Growth     Low Carbon & Green      Dedication & Obligation




                                                                                                                                   Lianfa Group responds to the call of energy conservation and emission reduction by
                                                                                                                                   promoting the new technology such as aluminium alloy template, attached lifting scaffold
                                                                                                                                   and pitman style scaffold with detailed measures including:



                                                                                                                                                                                                     Adopting attached lifting
                                                                                                                                                                                                     scaffold. Compared with
                                                                                                                                    Adopting aluminium alloy
                                                                                                                                                                                                     the steel pipe scaffolding,
                                                                                                                                    template, which is made
                                                                                                                                                                                                     it could greatly save
                                                                                                                                    from renewable materials
                                                                                                                                                                                                     amount of steel and is
                                                                                                                                    that are in line with the
                                                                                                                                                                                                     in line with the national
                                                                                Green Building Certificate                          national regulations of
                  C&D Inc.                                                                                                                                                                           development concept
                                                             Name                                                                   energy conservation,
         International Program List                                                                                                                                                                  of energy conservation,
                                                                                 Grade                  Date                        environment protection,
                                                                                                                                                                                                     consumption reduction
                                                                                                                                    low-carbon and emission
1
     Central                      Jinjiang District,         C&D Inc.                                                                                                                                and environmental
                 Chengdu                                                  2-Star Green Building       2020/9/1                      reduction on the
    China Area                        Chengdu                 Yangxi                                                                                                                                 protection
                                                                                                                                    construction projects
2
    East China                         Wuxi,
                   Wuxi                                      Jiuliwan     2-Star Green Building       2020/7/17
      Area                            Jiuliwan
                                                                                                                                                                                                    Promoting the LED lights
3                Hangzhou       Hangzhou 2020-13                         1-Star Green Building       2020/7/13                                                                                     and belts which have
                                                                                                                                     Promoting lightweight                                          significant effects on
4                               Wuyi New Area C10                Hexi     1-Star Green Building       2020/8/20                      interior partition, and                                        energy-saving on the
                 Nanping                                                                                                             reduing the usage of                                           project sites
      The
5   Southeast                     Yanping Xiyue         Yanping Xiyue 1-Star Green Building           2020/5/11                      cement mortar
      Area

6
                                 Lianjiang Liyuejun         Liangjiang
                                                                          1-Star Green Building       2020/5/27
                                      2019-22               Shuxiangfu
                 Liangjiang                                                                                                                                                                          Reducing the dust with
7
                                Liangjiang Yangjun          Liangjiang
                                                                          1-Star Green Building       2020/3/16                                                                                      no dirt covering
                                    (Liyushan)              Shuxiangli



                              Green Buildings Certificate of C&D Realty


                                                                                                                                                               53   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                         About Us     Contribution & Development   Service & Value   High Efficiency & Reliability   Cooperation and Growth        Low Carbon & Green          Dedication & Obligation




Lower Down the Environmental Impacts

                                                           C&D Inc. commits to promote energy                In 2020, the statistics of the general waste and hazardous waste are as follows.
                                                           conservation and environment protection
                                                           by reducing pollutants and hazardous
                                                                                                                                                               Supply Chain         Real Estate
                                                           wastes to decrease the damage to                        Waste Type               Unit                                                                  Total
                                                                                                                                                                 Business            Business*
                                                           environment. Meanwhile, the Company
                                                                                                                                                               General Waste
                                                           disposes the emissions properly and
                                                           conducts systematic monitoring on the                  Kitchen Waste             ton                   100.00                 38.95                   138.95
                                                           discharges to ensure that the solid waste
                                                                                                                  Waste Paper               ton                    40.50                 25.17                    65.67
                                                           is up-to-standards of discharge. Since
                                                           the Company’s business mainly includes
                                                                                                                                                              Hazardous Waste
                                                           trading, real estate, development and
                                                           management, logistics and industrial                 Electronic Waste             kg                     0                   347.24                   347.24
                                                           investment, wasted gas and water are not
                                                                                                                Waste Engine Oil            ton                   309.50                 0.52                    310.02
                                                           involved in the operation process.
                                                                                                                 Waste Car Paint            ton                    9.50                    0                      9.50
As for non-hazardous waste such as kitchen garbage, waste paper, waste plastic, etc., the Company
encourages garbage sorting among the employees. We set different garbage bins for sorted waste
in the office area and the canteen on every floor to require employees to sort the recoverable and           *Among which, apart from the electronic waste generated from the real estate sector, other data of waste only
the unrecoverable things. We print the garbage sorting posters to launch publicity and education on          includes the output of Lianfa Group in 2020.

garbage sorting to achieve greater awareness of environmental protection among the employees.
In addition, the company avoids the generation of waste at the source, such as promoting paperless
office and reducing paper use; encouraging the use of double-sided printing to reduce paper waste. All                                                         Supply Chain         Real Estate
                                                                                                                 GHG Emission               Unit                                                                  Total
                                                                                                                                                                Business             Business
departments are required to collect and pack the unusable waste paper and document shredded paper,
and collect them twice a year in a unified manner to reduce the impact of paper consumption on the                  Scope Ⅰ               tCO2e                  326.32                441.68                   768.00
environment.
                                                                                                                    Scope Ⅱ               tCO2e                 13,174.66              4,979.12                18,153.78

As for small amount of hazardous waste generated from the process such as waste engine oil and                         Total               tCO2e                 13,500.98              5,420.80                18,921.78
waste car paint, etc., the Company would deliver them together to a qualified company for recycling
treatment. Other recoverable waste such as scrapped equipment and facilities etc. would be
disassembled for recycling to improve the efficiency of resource reusing.
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                                           About Us     Contribution & Development    Service & Value      High Efficiency & Reliability   Cooperation and Growth     Low Carbon & Green      Dedication & Obligation




Actively Fight the Pandemic

After the outbreak of Covid-19, C&D Inc. responded to the call of the Communist Party of China and                 policy to support the tenants of cultural and creative areas, shopping malls and office buildings of
the government by formulating well-rounded and omnidirectional strategy of Covid-19 prevention and                 Lianfa Group’s; body temperature monitoring was step up in every entrance and exit of all the project
control to actively fight the pandemic.                                                                            sites for 24 hours; some communities set up disinfection sheds and shoe sole disinfection sites at the
                                                                                                                   gates pad and wheel disinfection area;for the empty-nest elderly and special owners in the community,
To support the battle against Covid-19, at the beginning of 2020, C&D Inc. adopted the method                      a one-to-one "fixed-point" service was adopted, asking the owners at home and delivering necessary
of overseas purchasing and emergent production transition and exploited its strength of global                     materials, picking up garbage at fixed points, and providing express parcel delivery service; provided
supply chain and operation to mobilize the overseas supply chain resource such as in South Korea,                  masks for our owners from cities such as Wuhan where the epidemic was severe. 133,700 masks
Southeast Asia, the European Union, which successfully helped to purchase important medical                        had been distributed to 18,966 owners just in one week; worked together with the online medical
supplies such as 1.2 million masks and 10,000 protective suits in overseas immediately. The                        service provider, Chun Yu Doctor, to provide free medical consultancy service within 7×24 hours to
company repeatedly helped the government and several enterprises with medical supplies purchase                    alleviate the risks of cross-infection for the non-covid-19 patient who needs to go to hospital, which
negotiation, on-site inspection, customs clearance and transportation overseas, which has strongly                 also reduced the medical pressure for hospital; As for the anti-pandemic work of the real estate sector,
supported the battle against pandemic. Besides, to strictly prevent and control the epidemic and                   Lianfa Group released the Notice on Epidemic Prevention and Control of Engineering Projects, and
ensure the reopening of work and production, the Company managed and updated the activities                        organized safety monitoring in the entrance with registration and management. It also managed
of employees in real-time to safeguard the track management; At the beginning of the year, we                      medical supplies reservation, inspected the implementation regularly on anti-pandemic work, and
promoted the method of working from home and carried on rotational shift for some on-site positions;               strictly supervised the implementation in relevant divisions.
We temporarily closed the staff canteen and other public dining area; purchased and distributed the
medical supplies for employees; formulated strict anti-pandemic management rules, and strengthened
the anti-pandemic management at on-site departments to ensure the anti-pandemic work to be fully
implemented.

C&D Realty adopted series of anti-pandemic work to help the battle against COVID-19. C&D Realty
arranged contingency meetings after the outbreak, purchased medical supplies, collected employees                                                                             One-to-one service such as door-to-door
information to ensure the safety of them. Meanwhile, C&D Realty actively managed to guarantee                           The activity of distributing hearted masks            package delivery and garbage collection
for the supporting work for the resumption of work, sanitized the company all over, consisted on
monitoring and recording the employees’ temperature within one month after the resumption of work,
organized publicity activities for epidemic prevention, arranged three meals per day for staff to ensure
safe dining. In 2020, the total number of masks distributed by C&D Realty was 473,200.

Lianfa Group has actively supported the anti-pandemic work and helped to erect a defensive rampart                                                                                                    Offline publicity on
by strict sanitizing and epidemic control works. In 2020, Lianfa Group used a flexible rent reduction                 24 hours temperature monitoring        Sanitizing through the company          epidemic prevention

                                                                                                                                                      56   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                            About Us        Contribution & Development   Service & Value   High Efficiency & Reliability   Cooperation and Growth       Low Carbon & Green      Dedication & Obligation




                                                                                                                   Both C&D Realty and Lianfa Group show their high attention to community culture and the owners’
                                                                                                                   life quality by building community cultures and focusing on the communication and integration of
      Lianfa Group promoted the non-inductive thermal imaging                                                      culture. Under the guidance of “build a beautiful community with high quality of life”, the Company
      temperature screening system                                                                                 would annually organize more than ten activities for the owners, which include New Year’s party, Good
                                                                                                                   Health activity, outing and hiking, activity on Mother’s Day, public welfare on poverty alleviation with
      Lianfa Group Intelligence, which is a subsidiary
                                                                                                                   the theme of Imaging the Spring, activity on Children’s Day with the theme of Create Happiness for
      of Lianfa Group, promoted the non-inductive
                                                                                                                   Children and Grow Up with the Children, parent-child garden activity, teenage ping-pong competition,
      thermal imaging temperature screening system
                                                                                                                   summer tern activity for children with the theme of Writing Poem with Wonderful Ideas and Painting
      in time. It could reduce unnecessary contact
                                                                                                                   the World With Children’s Mind, Mid-Autumn Day culture activity for neighbors, and Lantern Festival
      and lower the risks of infection by preliminarily
                                                                                                                   party in Fuzhou with the theme of Golden Year of Blessing.
      detecting the surface temperature of human
      body to find subjects with abnormal temperature,
      and then giving a professional temperature test.                                                                  C&D Realty organized charity donation
      The system also has an early warning function
      for AI masks with the accuracy being higher                                                                       In January and June of 2020, C&D Realty respectively
      than 90%. The whole system can be flexibly set                                                                    organized the donation of Helping the Poverty with
      at public or crowded places such as hospitals,                                                                    Warm Heart and the donation of Nourishing the Youth
      schools, airports, banks, government hall, and                                                                    in Guyan of Xiangan District and Xindian Town of
      hotels, etc., which greatly improved the efficiency                                                               Xiangan District in the name of C&D Realty Charity
      of temperature monitoring and guaranteed the                                                                      Fund. In the "Helping the Poverty with Warm Heart
      flow speed of people during the rush hours.                                                                       ”donation activity, it made an accumulated donation of
                                                                                                                                                                                             Helping the Poverty with
                                                                                                                        244,000 CNY to help 244 people in Xiangxindian Town
                                                                                                                                                                                                   Warm Heart
                                                                                                                        with financial difficulties spend a warmhearted spring
                                                                                                                        festival. In the "Nourishing the Youth”donation activity, it
                                                                                                                        made an accumulated donation of 250,000 CNY for 100
                                                                                                                        of poverty-stricken students from primary and middle
                                                                                                                        school in Xiangan District to help them overcoming the
Community Public Welfare                                                                                                difficulties. Futhermore, in August of 2020, C&D Realty
                                                                                                                        held the donation ceremony of Making the Way for
                                                                                                                        Dreams in the name of C&D Realty Charity Fund which
C&D Inc. puts the social public welfare as a part of the enterprise culture by actively participating in                donated 1,120,000 CNY to financially disadvantaged
the community development, helping the local community to improve satisfaction and happiness while                      students including 91 students to be graduated from
                                                                                                                                                                                              Nourishing the Youth
giving play to its social values as an enterprise. In 2020, C&D Inc. accumulatively donated 6,360.49                    high school and 115 college students.
million CNY.

                                                                                                                                                      57    Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                           About Us     Contribution & Development     Service & Value      High Efficiency & Reliability   Cooperation and Growth     Low Carbon & Green      Dedication & Obligation




In 2020, Lianfa Group continuously hold top brand events such as “Lianfa Group Happy Running”
“Lianfa Group NightXiamen Philharmonic Concert”. It also holds the traditional community culture
                                                                                                                    Volunteer Activity
activities with Lianfa Group’s characteristic for over ten years such as Mid-Autumn Cake Culture
Festival to create brand event at city-level and participate in the community development. On
                                                                                                                    C&D Inc. encourages and supports the employees to participate in volunteer activities. We establish
December 6, 2020, Lianfa Group organized the “Lianfa Group Night” Philharmonic Concert to deliver
                                                                                                                    volunteer group and organize volunteer programs and public welfare actions. In 2020, the total
the cultural values and lifestyle of Lianfa Group; On December 26, 2020, Lianfa Group set the Putian
                                                                                                                    volunteer service time reached 7,932 hours.
station of Happy Running event with the inception of the brand new IP image of Lianfa Group Cutie.
The total number of the participants was close to 5,000. The event became one of the famous IP
                                                                                                                    The Company’s volunteer group provide warmhearted service for the athletes of C&D Inc.
events in the city by the ways of healthy exercise and interesting games to achieve the mutual
                                                                                                                    International Marathon competition which is held annually and also help to clean the garbage from
interaction of the citizen, which also delivered healthy and upward value of the Lianfa Group brand,
                                                                                                                    the beach, donate books, money and clothes, and support the poor children for education. Part of the
made the concept of a healthy lifestyle integrated with the city.
                                                                                                                    employees also joined the Xiamen City Volunteers' Association and participate in series of volunteer
                                                                                                                    activities such as “Love Xiamen by Helping Each Other”, “Civilized Xiaman, Every One Participated”,
                                                                                                                    “Building a Beautiful Xiamen Together”, to continuously dedicate love for the society, and highlight the
                                                                                                                    volunteer spirit of “Dedication, Love, Mutual Help and Progress”.



                                                                                                                           C&D Inc. organized the public welfare activity of Happy
                                                                                                                           Growing, Safeguarding the Children
                                                                                                                           2020 marked the 40th anniversary of C&D Inc.’s establishment. The
                                                                                                                           CPC volunteer group of C&D Inc. and Youth Volunteer Service Team
                                                                                                                           organized the special public welfare activity of the 40th anniversary,
                                                                                                                           which focused on the children left behind in the poverty area of
     “Lianfa Group Night”
                                                                                                                           Ningxia to deliver the love of C&D Inc.. The Company organized
     Philharmonic Concert                                Holi Run at Putian Station
                                                                                                                           the activity of Happy Growing, Safeguarding the Children by
                                                                                                                           encouraging donations. All of the money from the donation was used
Besides, Lianfa Group continuously puts forward innovation and upgrading to integrate the traditional                      in buying sneakers, which had customized high-quality sneakers of
culture into the new era with new energy. Lianfa Group implements the brand commitment of “Inherit                        “ the 40th anniversary of C&D Inc.” for 400 poor children or left-behinds to help the as more
the culture with responsibility and deliver happiness with love” by practice. It has been supporting and                  children as possible by implementing the company’s social responsibility. All of the sneakers
building the Dragon Boat Festival across the Taiwan Strait as the independent sponsor for 13 years.                        were donated to the Liancai Central Primary School of Longde county, Guyuan city in
The festival is one of the competitions with brand influence across the Taiwan Strait, and is also an                      Ningxia and the Central Primary School of Shatang. The activity raised 51,800 CNY, among
important platform for carrying forward the Jiageng Spirit and inheriting the Chinese culture.                             which 47,600 was donated by the company employees, and 4,200 by external personnel.



                                                                                                                                                       58   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                            About Us      Contribution & Development      Service & Value   High Efficiency & Reliability     Cooperation and Growth            Low Carbon & Green      Dedication & Obligation




GRI Standard Index

                                 Index                                                   Page                                                                      Index                                               Page

GRI 102                                                                                                               GRI 102

 102-1    Name of the organization                                                About this Report                   102-16        Values, principles, standards, and norms of behavior                             About Us


 102-2    Activities, brands, products, and services                                    About Us                      102-18        Governance structure                                                                P12


 102-3    Location of headquarters                                                     Back Cover                     102-40        List of stakeholder groups                                                          P12


 102-4    Location of operations                                                        About Us                      102-41        Collective bargaining agreements                                                     /


 102-5    Ownership and legal form                                                      About Us                      102-42        Identifying and selecting stakeholders                                              P12

                                                                                                                      102-43        Approach to stakeholder engagement                                                P12-13
 102-6    Markets served                                                                About Us

                                                                                                                      102-44        Key topics and concerns raised                                                    P12-13
 102-7    Scale of the organization                                                     About Us


 102-8    Information on employees and other workers                                      P42                         102-45        Entities included in the consolidated financial statements                   About this Report


 102-9    Supply chain                                                                    P40                         102-46        Defining report content and topic Boundaries                                 About this Report


102-10    Significant changes to the organization and its supply chain                  About Us                      102-47        List of material topics                                                             P13


102-11    Precautionary Principle or approach                                     About this Report                   102-48        Restatements of information                                                        None


102-12    External initiatives                                                    About this Report                   102-49        Changes in reporting                                                         About this Report


102-13    Membership of associations                                                    P19-20                        102-50        Reporting period                                                             About this Report


102-14    Statement from senior decision-maker                                Letter from the Chairman                102-51        Date of most recent report                                                   About this Report




                                                                                                                                                              59     Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                              About Us         Contribution & Development      Service & Value     High Efficiency & Reliability    Cooperation and Growth        Low Carbon & Green        Dedication & Obligation




                                   Index                                                       Page                                                                   Index                                              Page         Omitted

GRI 102                                                                                                                      GRI 205 Anti-corruption 2016

102-52      Reporting cycle                                                                 Once a year
                                                                                                                              205-2        Communication and training about anti-corruption policies and procedures      P9-10          N
102-53      Contact point for questions regarding the report                          Readers Feedback Form
                                                                                                                             GRI 302 Energy 2016
102-54      Claims of reporting in accordance with the GRI Standards                     About this Report

102-55      GRI content index                                                           GRI Standard Index                                Management Approach                                                            P51           N

102-56      External assurance                                                                    None                        302-1        Energy consumption within the organization                                     P51           N

                                                                                                                              302-3        Energy intensity                                                               P51           N

                                      Index                                                 Page         Omitted              302-4        Reduction of energy consumption                                              P51-53          N

GRI 201 Economic Performance 2016
                                                                                                                             GRI 305 Emissions 2016
            Management Approach                                                              P5              N
                                                                                                                                          Management Approach                                                            P54           N
201-1       Direct economic value generated and distributed                                  P5              N
                                                                                                                              305-1        Direct (Scope 1) GHG emissions                                                 P54           N
            Financial implications and other risks and opportunities due to climate
201-2                                                                                        P50             N
            change
                                                                                                                              305-2        Energy indirect (Scope 2) GHG emissions                                        P54           N
GRI 203 Indirect Economic Impacts 2016

   
                                                                                                                              305-4        GHG emissions intensity                                                        P54           N
            Management Approach                                                             P15-18           N

203-1       Infrastructure investments and services supported                               P15-18           N               GRI 306 Effluents and Waste 2016

203-2       Significant indirect economic impacts                                           P15-18           N
                                                                                                                                           Management Approach                                                            P54           N

GRI 204 Procurement Practices 2016
                                                                                                                              306-2        Waste by type and disposal method                                              P54           N
           Management Approach                                                              P40             N
                                                                                                                             GRI 307 Environmental Compliance 2016
204-1       Proportion of spending on local suppliers                                         /              N
                                                                                                                                           Management Approach                                                            P54           N
GRI 205 Anti-corruption 2016

           Management Approach                                                              P9              N                307-1        Non-compliance with environmental laws and regulations                        None           N



                                                                                                                                                                60    Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                             About Us      Contribution & Development    Service & Value      High Efficiency & Reliability   Cooperation and Growth     Low Carbon & Green      Dedication & Obligation




                                       Index                                            Page      Omitted

GRI 401 Employment 2016


            Management Approach                                                          P42          N


401-1       New employee hires and employee turnover                                      /           N


GRI 404 Training and Education 2016

            Management Approach                                                         P44-46        N


404-1       Average hours of training per year per employee                              P44          N


            Programs for upgrading employee skills and transition assistance
404-2                                                                                   P44-46        N
            programs


GRI 405 Diversity and Equal Opportunity 2016

            Management Approach                                                          P42          N


405-1       Diversity of governance bodies and employees                                 P42          N


GRI 418 Customer Privacy 2016


            Management Approach                                                         P38-40        N


            Substantiated complaints concerning breaches of customer privacy and                      Not
418-1                                                                                   None
            losses of customer data                                                                relevant




                                                                                                                                                         61   Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report
                                              About Us   Contribution & Development       Service & Value   High Efficiency & Reliability    Cooperation and Growth       Low Carbon & Green      Dedication & Obligation




Readers Feedback Form


Dear readers,                                                                                                        05        You think the frame of this report is,

Thank you for reading the report. We sincerely expect for your evaluations on this report and ensure                           □quite reasonable □more reasonable □general □not reasonable
continuously improving our service and the ability of exercising the social responsibility.


                                                                                                                     06        You think the layout design and presentation of this report is,
Selective questions ( please check with “√”)

                                                                                                                               □great □good □normal □worse
 01     Your identification to C&D Inc is,

                                                                                                                    What’s your expectation on the work of ESG or social responsibility of C&D Inc.?
        □Government □Investor □Employee □Client □Supplier / Contractor
        □Partnership □Peer □Community And Public □Media □NGO □Others(please specify)


 02     How do you think of the ESG performance of C&D Inc,

        □great □good □normal □worse
                                                                                                                    Please feel free to choose the way as follows,

 03     Your impression on this report is,                                                                          Tel :            0592-2132319

        □great □good □normal □worse                                                                             Fax :            0592-2592459

                                                                                                                    E-mail :         pub@chinacnd.com

 04     Your evaluation on the quality of ESG information disclosure in this report is,                             Address :        F 29, C&D International Building, No.1699 Huandao East Road, Xiamen, China

        □great □good □normal □worse                                                                             Post Code : 361008


                                                                                                                                                         62    Xiamen C&D 2020 Corporate Social Responsibility Report & ESG Report