Contents
About This Report 01
Message from the Chairman 03
About C&D Inc. 05
GOVERNANCE
ENVIRONMENTAL
Governance for Sustainable 107
Addressing Climate Change 11 Development
Pollution Prevention and 31 Prevent Commercial Bribery 121
Ecosystem Protection and Unfair Competition
Re source Utilization and 39
Circular Economy
Appendix
127
SOCAIL Data Overview
133
GRI Standards Index
143
ISDS Index
Rural Revitalization and 49
SASB Index 147
Public Service
Innovation-Driven, Suppliers, 60 Indicators Reference for ESG Reports 149
and Customers of Listed Chinese Central State-Owned
People 76 Enterprises
Independent Limited Assurance Report 159
Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
About This Report Abbreviation Full Name
C&D Inc., or We Xiamen C&D Inc.
C&D Real Estate C&D Real Estate Corp., Ltd., subsidiary of C&D Inc.
Lianfa Group Lianfa Group Co.,Ltd., subsidiary of C&D Inc.
This is the 2023 Sustainability Report ("this report") released by
C&D Property Management Group Co.,Ltd.(Stock Code: 2156.HK),
C&D Property
Xiamen C&D Inc. (referred to as "C&D Inc." or "We"). The purpose of subsidiary of C&D Real Estate.
this report is to provide stakeholders with an overview of C&D Inc.'s
C&D Logistics C&D Logistics Group Co., Ltd., wholly-owned subsidiary of C&D Inc.
management efforts in environmental, social, and governance aspects
One of the seven major specialized groups of C&D Inc., including
in 2023, as well as the initiatives and achievements towards advancing Paper & Pulp Group
Xiamen C&D Paper & Pulp Co., Ltd..
the United Nations Sustainable Development Goals.
One of the seven major specialized groups of C&D Inc., including
Agricultural Products Group
Xiamen C&D Commodities Limited.
One of the seven major specialized groups of C&D Inc., including
Explanatory C&D Automobile Group
Xiamen C&D Automobile Co., Ltd
Note C&D Newin Paper & Pulp Corporation Limited (Stock Code: 0731.HK),
C&D Newin
subsidiary of C&D Inc.
We prepare this report in accordance with the "Global Reporting Initiative Standards"
(GRI Standards), and "Sustainability Accounting Standards Board Standards" (SASB Universal Pulp and Paper Universal Pulp and Paper (Shandong) Co., Ltd., subsidiary of C&D Inc.
Standards). The report also takes into account the disclosure requirements of the
Nanjing C&D Clean Energy Co.,Ltd., wholly-owned subsidiary of C&D
C&D Clean Energy
"Guidelines No. 1 for Application of Self-Regulation Rules for Companies Listed on the Inc.
Shanghai Stock Exchange- Standardized Operation", "Guidelines No. 14 of shanghai
Reference C&D Clenergy Xiamen C&D Clenergy New Energy Co.,Ltd., subsidiary of C&D Inc.
stock Exchange for self-Requlation of listed Companies-sustainability Report (Trial)",
Guidelines
IFRS Sustainability Disclosure Standards developed by the International Sustainability C&D (Guangzhou) C&D (Guangzhou) Co., Ltd., wholly-owned subsidiary of C&D Inc.
Standards Board (ISSB), SASAC Research Center’s "Indicators Reference Systems for
Yijiayuan (Xiamen) Property Management Co., Ltd., subsidiary of C&D
ESG Reports of Listed Chinese Central State-Owned Enterprises", and the United Yijiayuan Property
Real Estate.
Nations Sustainable Development Goals (SDGs).
MACALLINE Red Star Macalline Group Corporation Ltd. (Stock Code: 601828.SH)
Sichuan Yongfeng Pulp and Paper Co., Ltd., shareholding company of
Yongfeng Pulp and Paper
C&D Inc.
The reporting period is between January 1, 2023, and December 31, 2023, and some IPCC Intergovernmental Panel on Climate Change
parts of the report may be beyond the aforementioned scope considering the continuity
Reporting
IEA International Energy Agency
and comparability of disclosures. The ESG data disclosed in this report includes all
Scope
enterprises within the scope of the consolidated statement of Xiamen C&D Inc.
We released this report in electronic format in both Simplified Chinese and English. In case
of any inconsistencies between the Chinese and English versions, the Chinese version
Report
shall prevail. The electronic version of the report is available on our official website, www.
External RSM China CPA LLP independently guarantees the environmental, social and corporate Availability
chinacnd.com, and the Shanghai Stock Exchange website (www.sse.com.cn). We are
Assurance governance performance key indicators in this report.
and Feedback committed to improving our environmental, social and corporate governance performance,
and if you have any comments or suggestions on this report, please get in touch with us at
compliance@chinacnd.com.
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Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Message from the Chairman
In the face of multiple challenges from the volatile global situation, complex market environment, and economic In 2023, we positioned ourselves to serve the real economy and social well-being, actively integrated into the national
slowdown, C&D Inc. firmly preserves the brand philosophy of "Together Go Beyond." We integrate sustainable creation and local development agenda, and fostered the co-prosperity and symbiosis of individuals and society. We diligently
of social value into business practices, pursue the maximization of comprehensive economic, social, and environmental implemented industry support policies leveraging our industrial resources, tapped into the diverse value of rural areas,
value, and honor commitment to our social responsibilities. promoted rural industrial upgrading, and supported the comprehensive advancement of national rural revitalization
As a globally positioned company, we are rooted in professionalism and committed to core business development. policies. Through the establishment of a globalized supply chain service system, we merged into the new development
Our supply chain operations span multiple segments including steel and iron, pulp and paper, automobile, agricultural paradigm of dual circulation at home and abroad, ensuring the supply chain security for the national agricultural products
products, consumer goods, minerals, and energy and chemicals. We strive to excel in each of these segments, leverage and energy resources. Furthermore, we fulfilled the mission and responsibilities of state-owned enterprises in cultural
our expertise to drive industrial progress, and dedicate ourselves to becoming a leading international supply chain preservation, caring for children, and social welfare, and facilitated the parallel development of the enterprise with urban
operator. In real estate, we have set up a holistic real estate service system, offering full-lifecycle real estate support growth. We endeavored to accomplish people's longing for a better life and to exploit new value for more people to live a
services to governments, enterprises, and residents, with the aspiration of becoming China’s outstanding real estate superior life.
operator. We always believe that talent drives the sustainable development of the company. The trust in our company’s culture
In 2023, we actively responded to the national carbon peaking and net zero emissions strategy and global temperature is the key to our employees' enthusiasm and sincerity for C&D Inc. We uphold cultural leadership, shape a culture of
control goals under the Paris Agreement, and consistently invested in research and innovation in digital technology "determined progress and integrity," and concentrate on the growth of every employee. We strive to create a fair, just,
applications. We profoundly incorporated digital solutions with traditional industry development, made digitalization harmonious, and inclusive working environment, allowing talent to be an inexhaustible driving force for the company's
a driving force for achieving carbon net zero emissions, and enabled traditional industries to undergo green sustainable development.
transformation. We persistently explored the design and development of sustainable products such as green materials Currently, we find ourselves amidst China's third wave of development. Confronted by the challenges of energy structural
and green buildings to promote the sustainable development of living environments with green concepts. Engaging transformation and intelligent manufacturing brought by this wave, we integrate the United Nations Sustainable
in green circular economy businesses, we enhanced resource utilization efficiency and contributed to the construction Development Goals into our corporate sustainable development framework. We actively spearhead the green
of a national green, low-carbon, and circular economic system. We established our presence in the new energy sector, transformation of industries, foster the development of a circular economy, embark on a journey of growth with our
vigorously expanded upstream and downstream supply chain operations in the new energy industry, and offered service shareholders, customers, and society, and seek harmony and symbiosis as we stride confidently forward.
solutions for various segments of the new energy industry chain. We advocated for energy conservation and emission
reduction actions, urging stakeholders to take collective action to contribute to mitigating climate change. Chairman of Xiamen C&D Inc.
Zheng Yongda
03 04
Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
About C&D Inc. Set up over
30
ove r s e a s c o m pa n i e s a n d
offices
Deployed over
300
employees overseas, including local
staff and expatriates
Established business relations
with
170
countries and regions
Achieving an
annual international trade
volume exceeding
43.8 billion US Dollars
C&D Inc. is a modern service-oriented enterprise with dual main businesses in supply chain operations and real estate. With the central and western regions. We have established 15 platform companies in core cities nationwide. Meanwhile, we seize
mission of "To exploit new value for more people to live a superior life," and the brand philosophy of “Together Go Beyond”, we the development opportunities of the "Belt and Road" Initiative to accelerate international layout and have set up over
aim to become a leading international supply chain operator and a distinguished real estate developer in China. We are dedicated 30 overseas companies and offices in RCEP member countries, BRICS countries, and countries along the "Belt and Road,"
to being an exceptional enterprise that fosters employee satisfaction, customer delight, and societal respect. including Vietnam, Malaysia, Indonesia, Japan, South Korea, and Brazil. We have deployed over 300 employees overseas,
We continue to explore domestic and international markets and construct a global supply chain service system to support including local staff and expatriates, and established business relations with 170 countries and regions. In 2023, we achieved
the construction of an efficient and smooth international circulation system in China. We actively integrate into the unified a total import and export volume and international business volume of $43.8 billion, representing a year-on-year growth rate
national market, continuously cultivate the markets in the East and South China regions, and vigorously expand into the of 8.38%.
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Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Highlights of C&D Inc. in 2023
Awards Related to Economy, Society, and Environment Sustainable Development Impact
Total Asset Operating revenue
82,085,187 Ten-thousand RMB 76,367,815 Ten-thousand RMB
C&D Inc. C&D Inc.
Economic
640th 11th Impact
Net profit attributable Operating costs
on 2023 Forbes Global on Fortune China to shareholders of the parent
Top 2000 Enterprises Listed Companies
company 73,040,774Ten-thousand RMB
1,310,400 Ten-thousand RMB
C&D Inc.
C&D Inc.
"Best Listed Company" and
"2023 Top 100 Chinese Listed Total social contributions Total tax payment：1,674,762 Ten-thousand RMB
"Best ESG Practice Award"
Companies in ESG" received from 3,833,466 Ten-thousand RMB Employee compensation：939,078 Ten-thousand RMB
awarded by Securities Times the 5th New Wealth
Dividends paid to shareholders：478,299 Ten-thousand RMB
Interests paid to creditors：828,988 Ten-thousand RMB
Social donations： 2,633 Ten-thousand RMB
C&D Inc.
C&D Inc. Fiscal subsidies received：90,294 Ten-thousand RMB
"Guoxin CupESG Golden Bull Award"
2022 Wind ESG Industry Social
granted by
China Securities Journal Best Practice Award Impact
Total safety input Number of employees
436 Ten-thousand RMB 49,752 persons
C&D Inc.
C&D Inc.
Volunteer service hours Total employee training hours
55th "China Business Top 100 Best
on "Top 100 Brand Value List of Management and Operations Award" 9,984 hours 2,138,972 hours
Chinese Listed Companies"
awarded by National Business Daily
granted by the
China Business Top 100 Forum
Total environmental protection input GHG emissions
Environmental
3,789 Ten-thousand RMB 973,719 tCO e 2
Impact
GHG emission Total water
intensity consumption
128 tCO e / hundred million RMB of operating revenue
2 3,281,383 m 3
Note: Data in Social Impact is from audited balance sheets, income statements, or internally audited management reports.
07 08
ENVIRONMENTAL
Environmental Performance Targets in 2023 Completion Status
Organize annual inventory of GHG emissions (Scope 1, Scope 2), and commission a third-party
1 agency to conduct verification of GHG (Scope 1, Scope 2) emission data
100% of subordinate production enterprises pass the ISO14001 environmental management
2 system certification and gradually increase the proportion of entities covered by the ISO14001
environmental management system certification
3 No major environmental pollution accidents occur
The subordinate production enterprises all achieve the annual target for water consumption per unit
4 of product
Develop green circular economy business, with a minimum of 450,000 tons of waste steel
5 resources recycled, a minimum of 35,000 tons of waste aluminum resources recycled, and a
minimum of 350,000 tons of waste paper recycled
Promote energy transformation and upgrading, invest in the photovoltaic power station
6 business,and promote the development of the new energy vehicle business
Completed In Progress Unfinished
Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Addressing Climate Change Sustainable Development Framework
We value the harmonious development between humans and nature, actively research and develop innovative digital technology We uphold the new development concept of "Innovative, Coordinated, Green, Open, and Shared Development", and actively
applications, deeply integrate digital solutions with traditional industrial development, empower traditional industries to achieve respond to the national carbon peaking and net zero strategy. We commit to achieving carbon peak by 2030 and net zero emissions
by 2060. We incorporate the development of clean technologies into our company's strategy and invest in clean technology research
green transformation, reduce their energy and resource consumption, and make digitization a solution to promote carbon net zero
and development. Through the investment in R&D of clean technology and the development of innovative digital technology
emissions. We continuously explore the design and research and development of sustainable products such as green materials and applications, we aim to achieve cost reduction and efficiency enhancement, empower traditional industries for low-carbon
green buildings, promote the sustainable development of the human living environment with green concepts, advocate for energy transformation, and drive the green development of the industrial chain while contributing to the global temperature control goals
conservation and emission reduction actions, and endeavor to mitigate climate change. under the Paris Agreement.
Sustainable Development Policies Sustainable Development Practices
Actively research and develop innovative digital
technology applications, empower the low-carbon
transformation of traditional industries, and drive
the green development of industrial chains.
Develop
Clean Technology Unlock Employee Value Proactively engage in green circular economy
business, promote recycling of scrap steel,
aluminum scrap, waste paper, etc., enhance
resource utilization efficiency, and minimize carbon
emissions throughout the lifecycle of materials and
products.
Environment Society Environment Xiamen C&D Inc. Environmental Protection Research and design green products, invest
Environment in new energy industries, and promote energy
Policy
Sustainable conservation and emission reduction.
Supply Chain Optimize water resource management measures,
Implement Circular Economy Practices improve water utilization efficiency, standardize
the management of pollutants such as waste gas,
wastewater, and waste, and ensure compliant
discharge.
Refrain from undertaking projects in significant
ecological conservation areas and their vicinity in
Community Welfare Contribution business operations, and practice the principle of
Protect the Ecological Environment Together biodiversity conservation.
Go Beyond Xiamen C&D Inc. Human Rights Policy
Cultivate a global supply chain layout, establish
a responsible supply chain management system,
Xiamen C&D Inc. Anti-Discrimination and provide high-quality and sustainable products and
services to global customers, and enable more
Anti-Harassment Policy people to live a superior life.
Xiamen C&D Inc. Community Policy Protect human rights, create an inclusive, safe, and
Society Society
Xiamen C&D Inc. Occupational Health and healthy work environment, along with competitive
Governance compensation and benefits.
Safety Policy
Conduct community dialogue, establish
Xiamen C&D Inc. Supplier Code of Conduct mutually beneficial relationships for prosperity
Xiamen C&D Inc. Information Security Policy and coordinated development, support rural
revitalization, and fulfill social responsibilities.
Ethical and Compliant
Operations Establish a sound ESG governance mechanism,
Xiamen C&D Inc. Business Code of Conduct improve risk management systems, adhere to
Governance high ethical standards in business operations,
Xiamen C&D Inc. Anti-Corruption and Anti- Governance
and uphold integrity, freedom, and fairness in
Bribery Policy the business environment.
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Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Sustainable Development Risk Management Physical Risk Assessment
2030 2050
Current
Climate-related Disaster Risks
We attach great importance to the challenges and transformation opportunities brought by climate change to human society, and Status SSP1-1.9 SSP5-8.5 SSP1-1.9 SSP5-8.5
incorporate climate change-related risks into our enterprise risk management process. We combine our business characteristics and
Typhoon and Flood
conduct identification and analysis of climate change risks based on different climate scenarios under the IPCC and IEA scenario Typhoons may bring strong winds, heavy rain, and storm
models. We identify and assess the physical risks and transition risks and opportunities in the short, medium, and long term, actively surges, while floods can result in catastrophic damage
to the company's buildings, equipment, and inventory.
explore development strategies, business plans, and management measures to address climate change risks, continuously improve This could lead to injuries or entrapment of company
employees and surrounding residents, and may even trigger
our sustainable risk response capabilities, and promote sustainable, high-quality development of the company.
secondary disasters such as landslides. It could also result
in transportation disruptions, port closures, power outages,
and other issues, causing suppliers to be unable to deliver
Physical Risks goods on time or facing transportation hindrances, thus
affecting the company's normal operations.
We have selected the very low GHG emissions scenario (SSP1-1.9) and the very high GHG emissions scenario (SSP5-8.5) Sea Level Rise
Our headquarters are located in coastal areas, and our
from the five scenarios under the IPCC's Shared Socioeconomic Pathways (SSP) to conduct Near term, Medium term, assets or real estate projects may face risks of being eroded
and Long term identification and assessment of climate disaster risks affecting our supply chain operations and real by seawater or decreasing in value. Rising sea levels may
disrupt transportation systems, leading to interruptions in
estate business.
our supply chain, adversely affecting the procurement of raw
According to the IPCC's sixth assessment report, compared to 1850–1900, global surface temperature averaged over materials and transportation of products, thereby impacting
2081–2100 is very likely to be higher by 1.0°C to 1.8°C under the very low GHG emissions scenario considered (SSP1-1.9), production schedules and delivery capabilities.
by 2.1°C to 3.5°C in the intermediate GHG emissions scenario (SSP2-4.5) and by 3.3°C to 5.7°C under the very high GHG
Loss of Biodiversity and Habitat Displacement
emissions scenario (SSP5-8.5).The last time global surface temperature was sustained at or above 2.5°C higher than
Degradation of marine, coastal, and terrestrial ecosystems,
1850–1900 was over 3 million years ago (medium confidence). species extinction, and irreversible loss of ecosystems and
Relative to 1995–2014, the likely global mean sea level rise by 2100 is 0.28–0.55 m under the very low GHG emissions their services (including freshwater, terrestrial, and marine
ecosystems).
scenario (SSP1-1.9); 0.32–0.62 m under the low GHG emissions scenario (SSP1-2.6); 0.44–0.76 m under the
intermediate GHG emissions scenario (SSP2-4.5); and 0.63–1.01 m under the very high GHG emissions scenario (SSP5-
Extreme High and Low Temperatures
8.5). Extreme high temperatures may lead to heatstroke, fatigue,
The average annual global land precipitation is projected to increase by 0–5% under the very low GHG emissions and increased health problems among employees, reduce
work efficiency and productivity, and affect the normal
scenario (SSP1-1.9), 1.5–8% for the intermediate GHG emissions scenario (SSP2-4.5) and 1–13% under the very high operation of the enterprise. Equipment may be damaged
GHG emissions scenario (SSP5-8.5) by 2081–2100 relative to 1995–2014 (likely ranges). or malfunction due to overheating in high-temperature
environments, resulting in production interruptions. To cope
with high temperatures, it may be necessary to increase the
use of air conditioning, refrigeration, and other equipment,
leading to increased energy consumption and rising
operating costs.
Water Scarcity Caused by Drought
This could potentially lead to insufficient supply of water
resources for production and daily life during business
operations. To mitigate the impact of water pressure and
drought on business operations, it may be necessary to
allocate additional funds to acquire water resources, such as
constructing water treatment facilities, thereby increasing
the operational costs of the enterprise.
Extreme Low Impact Low Impact Medium Impact High Impact Extreme High Impact
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Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Physical Risk Management
Transition Risks
Physical Risks Impact Period Mitigation Plan
With reference to the IEA’s scenario model, we selected the Net Zero Emissions by 2050 (NZE) Scenario, where the global energy-
Conduct risk assessments in areas that may be affected by typhoons
Typhoon and Flood in advance, and take reinforcement and protective measures for related CO2 emissions are expected to reach net zero by 2050, offering the world a chance to limit the global temperature rise
Typhoons may bring strong winds, heavy rain, and storm important equipment and inventory. Develop emergency plans for
to within 1.5 °C. We also choose the Stated Policies Scenario (STEPS), which considers only specific policies already enacted or
surges, while floods can result in catastrophic damage typhoon and flood prevention, conduct regular safety training and
to the company's buildings, equipment, and inventory. emergency drills for employees, and enhance disaster awareness announced by governments, and annual CO2 emissions from energy-related and industrial processes are projected to increase from
This could lead to injuries or entrapment of company and self-rescue capabilities. Establish close cooperation with the
employees and surrounding residents, and may even Near Term, Mid-Term government and communities to collectively address the challenges 34 gigatons in 2020 to 36 gigatons in 2030, and remain at approximately the same level until 2050. If emissions continue along this
trigger secondary disasters such as landslides. It could and Long Term posed by typhoons and ensure the safety and health of employees trajectory and non-energy-related greenhouse gas emissions follow a similar trend, the global temperature is estimated to rise by
also result in transportation disruptions, port closures, and the lives of surrounding community residents. Prior to the arrival
power outages, and other issues, causing suppliers to be of typhoons and heavy rain, communicate in advance with suppliers around 2.7°C by 2100 (with a 50% probability). By 2050, the share of renewable energy in global electricity generation is projected
unable to deliver goods on time or facing transportation and logistics companies to ensure their understanding of the typhoon to approach 55%. Over the period from 2020 to 2050, global coal consumption is expected to decrease by 15%, oil consumption
hindrances, thus affecting the company's normal situation and make corresponding preparations. Pre-stock necessary
operations. production materials and raw materials in advance to cope with to increase by 15%, and natural gas consumption to increase by nearly 50%. We conducted short-term, medium-term, and long-
potential supply chain interruptions.
term identification and assessment of the transition risks to our supply chain operations and real estate business, and formulated
Comprehensively assess the risk of sea level rise in the company's corresponding measures to enhance the company's ability for sustainable development.
Seal Level Rise
location, carefully evaluate new investments or constructions in
Our headquarters are located in coastal areas, and our
low-lying areas or areas vulnerable to sea level rise. Take protective
assets or real estate projects may face risks of being
measures such as reinforcing embankments, constructing floodgates,
eroded by seawater or decreasing in value. Rising sea
Mid-Term and Long and upgrading drainage systems for existing facilities to enhance
levels may disrupt transportation systems, leading to
Term their ability to resist disasters such as floods and seawater intrusion.
interruptions in our supply chain, adversely affecting
Regularly inspect and maintain these facilities to ensure their normal
the procurement of raw materials and transportation of
operation. Establish a diversified supply chain to reduce reliance on a
products, thereby impacting production schedules and
single supplier and mitigate supply chain risks resulting from sea level
delivery capabilities.
rise.
Loss of Biodiversity and Habitat Displacement Conduct environmental assessments and strive to minimize the Transition Risks Impact Period Mitigation Plans
Degradation of marine, coastal, and terrestrial ecosystems, Mid-Term and Long negative impact of enterprise production and operations on
species extinction, and irreversible loss of ecosystems and Term ecosystems. Advocate for biodiversity conservation actions to protect
their services (including freshwater, terrestrial, and. the ecological environment of the local community. Uphold a strategy of specialized operation, improve the construction and management of professional
groups and business units, and promote the specialized development of each operating unit. Support the
expansion of core business operations, consolidation of market position, and enhancement of industry
Extreme High and Low Temperatures
status and core competitiveness from aspects such as resource allocation, management mechanisms, and
Extreme high temperatures may lead to heatstroke, Provide necessary cooling or warming equipment to ensure the health
industrial investment.
fatigue, and increased health problems among employees, and safety of employees in high or low temperature environments.
reduce work efficiency and productivity, and affect the Additionally, schedule work hours sensibly to avoid outdoor tasks
Speed up the "going global" layout, grounded on the domestic and international dual circulation
normal operation of the enterprise. Equipment may be during periods of extreme temperatures, reducing employee exposure development pattern, continuously cultivate the advantageous regional markets such as East China and
damaged or malfunction due to overheating in high- Near Term, Mid-Term to such conditions. Regularly maintain and inspect critical equipment to South China domestically, actively expand the markets in the central and western regions, integrate into
temperature environments, resulting in production and Long Term ensure its proper functioning in extreme temperatures. Optimize office the countries that have signed the RCEP agreement overseas, establish local teams and channels, and
Geopolitical Near Term, Mid-Term and Long
interruptions. To cope with high temperatures, it may environment design with natural ventilation and shading measures to proactively build a global supply chain system.
Conflict Term
be necessary to increase the use of air conditioning, reduce air conditioning load. Actively seek renewable energy sources
refrigeration, and other equipment, leading to increased and energy-saving technologies to reduce energy consumption and Bolster the technological and financial empowerment, accelerate the application of digital technology,
and realize the online, digital, mobile, and visual operation of supply chain operations. Explore various
energy consumption and rising operating costs. operational costs. financing channels, optimize the financing structure, flexibly use various financial products and tools,
reasonably hedge against exchange rate risks, reduce financing costs, and improve profitability.
Develop a comprehensive water resource management strategy, Strengthen investment support on the basis of specialized operations, seek cooperation opportunities
including water-saving measures, water recycling, rainwater harvesting, with industry-leading enterprises, extend the layout of core businesses to the upstream and downstream
etc., to reduce reliance on external water resources. Conduct regular industrial chains, and continuously enhance the competitiveness of core businesses through resource
sharing.
Water Scarcity Caused by Drought assessments of water resource risks and implement corresponding
This could potentially lead to insufficient supply of water response measures, such as establishing emergency water reserves
resources for production and daily life during business and formulating contingency plans. Organize regular employee
operations. To mitigate the impact of water pressure and Near Term, Mid-Term awareness campaigns and training on water resource conservation
drought on business operations, it may be necessary and Long Term to enhance water-saving awareness. Adopt advanced water-saving Closely monitor the macroeconomic situation and track industry regulatory dynamics, follow the direction
of macro-control policies, and promptly formulate response measures in accordance with policy changes.
to allocate additional funds to acquire water resources, technologies and processes to improve water resource utilization Macroeconomic Fully consider policy risks in land acquisition and reserve sufficient safety margins.
such as constructing water treatment facilities, thereby efficiency. Avoid water conservation areas as much as possible before Near Term, Mid-Term and
Policy
Long Term
increasing the operational costs of the enterprise. project construction or acquisition, and collaborate with governments
Adjustment Systematically enhance operational efficiency, balance growth speed with development quality, improve
and communities to participate in water resource conservation and the quality of products and services, and actively establish a diversified matrix of real estate-related
governance efforts, and jointly promote the sustainable utilization of businesses to cope with external uncertainties.
water resources.
15 16
Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
GHG Emissions Management
Actively research and develop innovative digital technology applications, continuously promote the
development and innovation of digital application in the supply chain, integrate digital solutions with
traditional industrial development, empower traditional industries to achieve green transformation, reduce
their energy and resource consumption, promote overall energy saving, cost reduction, quality improvement, In compliance with the ISO14064-1:2018 standard, we conducted a greenhouse gas inventory for entities within the consolidation
and enhance the competitiveness of products and sustainable development capabilities.
scope using the operational control approach in 2023. In 2023, our total greenhouse gas emissions (Scope 1 + Scope 2) amounted to
Actively explore the research and design of green materials through research and innovation in green
environmental protection technology, provide environmental protection solutions for footwear and bags 973,719 tCO2e, representing an increase compared to 2022 mainly due to the acquisition of Meikailong during the reporting period.
Energy products, and empower the green development of upstream and downstream enterprises.
Near Term, Mid-Term and Long
Technology If we exclude the GHG emission data from Macalline during the reporting period and maintain a consistent comparison between
Term
Transformation Inject green ecological concepts into urban architectural practice through innovative research and
development of the fourth generation of residential buildings to achieve harmonious development between 2022 and 2023, the company's total greenhouse gas emissions (Scope 1 + Scope 2) would be 490,542 tCO2e. This reflects a decrease
buildings and the environment.
of 15,628 tCO2e compared to 2022, representing a year-on-year decline of 3.1%.
Develop new energy businesses and markets, cooperate in the construction and operation of photovoltaic
power stations in multiple regions domestically, invest in and operate various new energy brand 4S stores,
promote the development of new energy public service vehicle businesses, continuously develop the
photovoltaic, energy storage, and new energy vehicle industry chains, expand overseas markets, and Category 2023 2022
accelerate integration into the global new energy value chain.
Scope 1：Direct GHG Emissions（tCO2e） 434,139 285,727
Implement corresponding management measures based on different commodities and
business models:
Scope 2：Indirect GHG Emissions（tCO2e） 539,580 220,443
For agency business and transactions involving locked-in customers, mitigate certain
risks in the initial contract phase by selecting high-quality clients and collecting deposits.
After business commencement, track and control risks through methods such as price
Total GHG Emissions（tCO2e） 973,719 506,170
Market Price Near Term, Mid-Term and Long adjustments.
Fluctuations Term Carbon Emissions Intensity（tCO2e/
For proprietary operations, implement unilateral exposure volume control. Utilize floating
pricing and index pricing settlement methods during business operations. Additionally, hundred million RMB of operating 128 61
hedge against price risks through reasonable futures or options protection.
revenue）
Closely monitor changes in relevant commodity market prices and external situations.
Encourage operational units to expedite turnover and reduce price risks through real-time
price monitoring.
Our GHG Emissions
1,200,000
Combine years of deep experience with accumulated channel and brand advantages to
establish a multi-category supply chain service business matrix, forming a competitive 1,000,000
advantage through scale and specialization.
Promptly engage with national policies, expedite expansion into the "Belt and Road" initiative
800,000
and other global markets, explore novel models and new business sectors, and continuously
enlarge the business footprint and market reach.
539,580
Intensification Strengthen information technology construction to accelerate business operation efficiency. 600,000
Near Term, Mid-Term and Long
of industry Enhance the value-added service solutions, increase customer stickiness, and enhance
Term
competition industry influence to strengthen overall business competitiveness.
400,000 220,443
Continue to optimize real estate projects, intensify the focus on existing key regions, and
steadily expand into promising cities.
200,000 434,139
Continuously develop distinctive products, strengthen brand characteristics, tailor
benchmark projects for key cities according to local conditions, and leverage the value of
285,727
real estate-related commercial services such as "real estate +" to enhance differentiation
competitive advantages.
0
2022 2023
Scope 1（tCO2e) Scope 2（tCO2e)
17 18
Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Elaboration on Energy Consumption in 2023
Organizational Boundary of 2023 GHG Inventory
In 2023, our primary energy sources were coal and electricity. The specific energy consumption breakdown is as follows:
2023 Energy Consumption
Xiamen C&D Inc.
2023 Energy 2022 Energy 2023 Energy
consumption in 2023 consumption consumption
Energy Type 2023 2022
(tonnes of standard (tonnes of standard proportion
coal) coal) (%)
Functional
Management Department
Supply Chain
Operations Segment
Real Estate Coal (t) 166,254 137,412 118,755 98,153 40.920
Operations Segment
Organizational
Electricity (kWh) 947,373,073 259,624,703 116,432 46,739 40.119
Boundary
Seven Major Specialized Groups and C&D Real
Emerging Business Division
Lianfa Group MACALLINE Natural Gas (m) 39,117,790 105,488 52,027 140 17.927
Estate Corp., Ltd. Co.,Ltd
Thermal (GJ) 27,266 16,482 930 562 0.320
Gasoline (L) 701,654 914,023 754 982 0.260
Owned and Leased
Owned and Leased
Owned and Leased
Owned and Leased
Warehouse Operations
Operational
Office Vehicles
Office Vehicles
Office Vehicles
Office Vehicles
Boundary
Steam (t) 7,193 / 746 / 0.257
Buildings
Buildings
Buildings
Buildings
Equipment
Diesel (L) 446,758 494,618 560 620 0.193
Liquefied Petroleum Gas
(kg) 6,560 1,323,280 11 2,269 0.004
Total 290,215 149,465 100
0.320%
40.920%
40.119%
2023 GHG Inventory Scope Energy
Structure
Our greenhouse gas inventory scope for 2023 includes Scope 1 direct emission sources and Scope 2 indirect emission sources.
Specifically, Scope 1 encompasses emission sources such as natural gas boiler combustion, vehicle combustion facilities, as well as
0.004%
fugitive emissions from air conditioning units, fire extinguishers, etc. Scope 2 includes greenhouse gas emissions generated from
0.193% 0.257%
0.260%
purchased electricity, heat, and other sources. 17.927%
Electricity Steam Natural Gas Gasoline Diesel Liquefied Petroleum Gas Coal Thermal
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Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
GHG Emissions Reduction Schemes Highlight
Internet Platform for the Pulp and Paper Industry
We proactively align with the national carbon peaking and net zero strategy and draw insights from the "Corporate Net Zero
Pathway - Delivering the Paris Agreement and the Sustainable Development Goals," released by the United Nations Global Compact The pulp and paper industry chain encompasses upstream international pulp
(UNGC). Through the adoption of digital technology research and innovation, green product development and design, and advocacy mills, midstream paper mills, as well as downstream printing and packaging 2023
factories, with tens of thousands of enterprises involved. Leveraging our
for energy conservation and emissions reduction, we aim to not only reduce GHG emissions from our own operations but also
innovative "LIFT Supply Chain Services" system, we have developed a leading Our pulp and paper industry internet
facilitate the low-carbon transformation of traditional industries and drive the green development of the industrial chain. platform was awarded
pulp and paper industry internet platform, with core products including
"E-Pulp" and "PaperSource". Through technologies such as artificial intelligence,
the second prize
blockchain, cloud computing, and big data, we have introduced a digital holistic in the
solution centered around information, storage and transportation, finance, and "First State-owned Enterprise Digital
Scenario Innovation Professional
Research and Application of Digital Technology risk control, achieving efficient linkage between online and offline scenarios
Competition" by the SASAC,
and resources. This has addressed the high costs, logistical challenges, and
recognized our company's proactive
The application of digital technology, through enhancing resource utilization efficiency, reducing pollution funding shortages traditionally faced in the pulp and paper industry. We have exploration and leading role in the
emissions, promoting green consumption, and minimizing carbon emissions, serves as a pivotal clean digital transformation of the pulp
propelled the transformation and upgrading of the entire industry chain, and
and paper industry
technology in realizing carbon peak and net zero objectives and advancing sustainable development achieved cost reduction and efficiency enhancement by providing customers
across the economy and society. We keep innovating digital technology applications, continuously with comprehensive, high-quality, and customized supply chain services. We
We ranked
deepen the development and innovation of digital application scenarios within the supply chain. We have also introduced artificial intelligence technologies such as digital human 9th
intricately integrate digital solutions with the evolution of traditional industries, empowering them to technology to enrich the content of information programs, and created a series on the
undergo a green transformation while curbing their energy and resource consumption. This fosters " China Industrial Internet
of popular audio and video programs to tackle the information barriers and
Top 100 List"
comprehensive energy savings, cost reductions, quality enhancements, and efficiency improvements scattered information sources in the pulp and paper industry. In promoting
throughout the industrial chain, thus collectively propelling green and low-carbon development within the digitization of international business, the pulp and paper industry internet
We received the honor of the
the industry. platform collaborates with upstream suppliers in the international pulp supply
"2021-2023 Enterprises with Outstanding
chain to explore paperless transactions in the global pulp and paper industry. Contributions to the Tenth Anniversary of
This has facilitated the rapid circulation of electronic documents globally, China Industrial Internet Development"
enabled the full digitization of business processes, saved resources, and
improved the efficiency and security of transactions.
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Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Highlight ● Green Pulp and Paper
C&D Esteellink
We innovate by using bamboo instead of wood to produce our own brand "Choice of Purity" Natural Bamboo Pulp
Paper. The "Choice of Purity" Natural Bamboo Pulp Paper adheres to the principle of purity, with no fluorescent
Drawing on the demand for high-quality supply chain services from ecological agents, bleaching agents, sterile, or harmful additives. The COD emissions during the production process are only
2023
partners across the upstream and downstream of the steel industry chain, we half of those of white paper. Additionally, it has passed international food-grade tests such as those from the U.S.
have launched the "C&D Esteellink" collaborative platform. This platform, built FDA and the EU's AP.
upon the "LIFT Supply Chain Services," integrates key elements such as logistics,
In 2023, at the 6th Digital China
information, finance, and business to revamp traditional supply chain operation Summit, the " C&D Esteellink" platform
service processes with optimized management and services model. It improves was awarded the second prize in the
competition for its use of technology
operational efficiency and user experience for the steel industry clients through
to empower supply chain operations,
offering online contract signing, logistics tracking, self-service delivery, and reduce costs, increase efficiency, and Raw Materials Sourcing
promote low-carbon transformation
intelligent settlement reconciliation, improving quality and efficiency for both
and development. It won the award The "Choice of Purity" Natural Bamboo Pulp Paper is sourced from the bamboo forests of Muchuan, where the unique fiber of the local
upstream and downstream stakeholders in the steel industry. for its digital application scenario Bambusa Emeiensis is ideal for papermaking. Bambusa Emeiensis is a typical cluster plant, maturing in three years, and after maturity, the old
of "Create an Internet platform
for the steel industry to empower bamboo can be harvested annually, leaving new shoots to grow. Proper harvesting promotes the healthy growth of bamboo forests, ensuring
collaborative development in the steel lush greenery in the mountains and effectively preventing soil erosion and loss of water and soil.
industry."
Environmental-friendly Technology
Compared to traditional chemical pulping, modern bamboo pulp production technology
places greater emphasis on environmental protection. The pulping production line for
"Choice of Purity" bamboo pulp adopts advanced international technologies such as
Displacement Digester System and Closed Screening. The extended delignification
of bamboo pulp and related clean technologies have been included in the National
Development and Reform Commission's major industrial technology development
special projects. Advanced pulping technology provides support for product quality.
The leading product, high-grade bamboo pulp board, features high strength, good air
permeability, absorbency, and significant antibacterial properties. It is environmentally
friendly, free from toxic elements, and suitable for the production of household paper
and high-quality paper. Compared to wood pulp papermaking, every ton of bamboo
pulp paper saves one ton of steam consumption. The energy consumption of "Choice of
Purity" bamboo pulp paper is about 300 kilograms of standard coal per ton of product,
which is approximately 350 kilograms lower than the national clean standard (650
kilograms of standard coal). Additionally, bamboo pulp waste residue is processed into
Green Products Design and R&D mushroom planting fertilizers to promote local economic development and protect the
local ecology.
Over the past decade, the total production capacity of bamboo pulp at the pulp The total production capacity of bamboo pulp
mill we invested in has reached 3.60 million tons. While catalyzing the development at the pulp mill we invested in has reached
We continuously explore the design and R&D of green products such as green materials and green buildings
in our supply chain operations and real estate business, and promote the sustainable development of living
of industries worth 4 billion RMB in Muchuan County, Sichuan Province, we have
also contributed to raising the forest coverage rate from 13.8% to 77.34%. The area
3.60million tons
environments with green concepts. The cumulative substitution of wood pulp
of bamboo forests has expanded from 20,000 mu in the 1980s to 800,000 mu. The resources is equivalent to saving the logging of
cumulative substitution of wood pulp resources is equivalent to saving the logging of
1 million mu of forests.
1 million mu of forests.
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Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
● Green Material ● Green Building
We incorporate environmentally friendly materials
such as SORONA, CELYS, and PRIMALOFT BIO
It is a crucial initiative to develop green and low-carbon buildings
for conserving resources, protecting the environment, and achieving
2023
sustainable development. We abide by national and industry
11
into our product designs. We present a green
and eco-friendly design concept by employing requirements for green buildings, such as the "Assessment Standard for We completed new
Green Building," "Code for Green Design of Civil Buildings," and "Design
green materials, printing and dyeing techniques, green building projects
Standard for Energy Efficiency of Public Buildings." We rigorously
2
and production processes. We are committed to
manage environmental protection throughout the entire lifecycle of with projects obtained
transforming the traditional textile fabric production
buildings, from design to operation, promoting practices in green
process that generates carbon dioxide emissions. the one-star green building
building design, sponge city design, prefabricated building technology,
For different markets and certification standards, we BIM technology, and ultra-low energy consumption buildings. This certification.
rigorously select suppliers based on four dimensions: enhances project quality, construction efficiency, maximizes resource
product recycling, production and sales supervision, conservation, reduces negative environmental impacts, and constructs
social and environmental practices, and chemical safe and comfortable green and low-carbon buildings, to establish
restrictions. We also provide various certifications harmonious coexistence between buildings and nature. In 2023, we
such as GRS, GOTS, OEKO-TEX, BCI, and RCS. completed 11 new green building projects with 2 projects obtained the
We actively explore and utilize recycled polyester, one-star green building certification.
recycled cotton, plant fibers, biodegradable
biomaterials, and carbon-negative materials, offer
sustainable development solutions for clothing and
textile products, and empower green and sustainable
development across the entire industry chain. Highlight
"C&DMan Yun" Project in Fuzhou
In the field of bio-based outsoles, we have conducted in-depth
As the first residential project with three-
research on sustainable solutions utilizing sugarcane, corn,
dimensional greening in Fuzhou, the "C&DMan
soybeans, and straw for bio-fermentation, and customized
Yun" project integrates the concept of "sky gardens"
production of bio-based outsoles and raw materials with
and "sky garden streets" into the traditional large
content ranging from 20% to 90% for our clients. By replacing
flat layout. It introduces vertical greening, forming
petroleum-based materials with bio-based ones in outsole
an architectural form of "streets and lanes on each
production, we have fully achieved material recyclability,
floor, courtyard for each household." While ensuring
biodegradability, and ecological sustainability.
building quality and safety, this design enhances
the greening rate of the community and the comfort
of residents, achieving harmonious development
between architecture and the environment.
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Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Highlight ● Green Office Practices
Projects of “C&DMan Yun” and “C&DJing Yuan” in Shanghai
We are comprehensively advancing the digitalization of office systems, providing online services for administrative
management, personnel management, financial management, and business applications, among other office scenarios,
The Man Yun Project in Minhang District, to enhance operational efficiency, unleash collaborative value, and create a paperless intelligent office environment.
Ultra-low energy buildings have become one of the important
Shanghai, is expected to save
trends in building development today. Not only do they help reduce
energy consumption and environmental pollution, but they also
enhance the comfort and quality of buildings, creating healthier, more
745,700 kWh
In our efforts towards energy conservation and emission reduction in the workplace, we have formulated the "Xiamen
C&D International Building Daily Safety, Energy Saving, and Environmental Hygiene Management Measures." The
comfortable, and livable living environments. We actively promote the of electricity annually Green Office Working Group conducts daily inspections on energy-saving measures in the office building to ensure
construction of ultra-low energy buildings and employ technologies
their effective implementation. For instance, we post energy-saving signs in public areas, encouraging employees to
equivalent to saving turn off power when leaving work. We install smart motion sensors in staircases, bathrooms, and other public areas
such as external sun shading, energy-efficient doors and windows,
insulation of building envelopes, and efficient heat recovery in project
construction to reduce the demand for building heating and cooling.
215.3 tons
to automatically turn off lights when unoccupied, eliminating the phenomenon of "long-term lighting". We reduce the
number of lighting fixtures in office areas with sufficient natural sunlight, minimizing energy consumption. We prioritize
We optimize heating, ventilation, and air conditioning (HVAC) systems of standard coal the use of fans during weekend overtime shifts and strictly control additional requests for air conditioning usage. In
to improve energy efficiency and fully utilize renewable energy sources
our real estate business, the construction project departments strictly control air conditioning usage, ensuring indoor
such as solar energy. By providing comfortable indoor environments
temperatures do not fall below 26°C in summer and do not exceed 20°C in winter. We primarily rely on solar energy
The Jing Yuan Project in Shanghai
with less energy consumption and meeting the basic requirements of
for hot water supply in workers' bathrooms at construction sites, with electricity serving as a backup to reduce energy
is expected to save
consumption. Maintenance, repair, and inspection systems are established for construction machinery and equipment
913,200
green buildings, we effectively reduce building energy consumption
and achieve sustainable development in construction. In 2023, we kWh to optimize their utilization and load capacity through reasonable process arrangements. Energy-saving signs are
developed multiple ultra-low energy or nearly zero energy projects
prominently placed at power sources to remind employees to adopt electricity conservation habits.
of electricity annually
in cities like Shanghai and Hefei. Among them, the Man Yun Project
in Minhang District, Shanghai, is expected to save 745,700 kWh
equivalent to saving
of electricity annually, equivalent to saving 215.3 tons of standard
coal, representing approximately 50% energy savings compared to
conventional residential projects. The Jing Yuan Project in Shanghai
723.34 tons
● Eco-friendly Transport
is expected to save 913,200 kWh of electricity annually, equivalent to of standard coal
saving 723.34 tons of standard coal, representing approximately 60% We advocate for daily work communication and collaboration through video conferences and remote work to reduce
energy savings compared to conventional residential projects. greenhouse gas emissions generated by business trips. We encourage employees to carpool for necessary official trips
to achieve a low-carbon commuting.
● Equipment Energy-saving Upgrades
We are implementing management measures aimed at "reducing unnecessary energy consumption and implementing energy-saving
Energy-saving and Emission-reduction Actions technology upgrades" and "developing low-energy office equipment and everyday appliances to decrease office power consumption." We
actively advocate for the adoption of environmentally friendly and energy-efficient appliances and facilities to achieve our energy-saving
objectives. For instance, in office areas, we utilize energy-efficient lighting and make optimal use of natural site conditions, ensuring a well-
designed layout for office and temporary living facilities that considers proper orientation, spacing, and window-to-wall ratio. Temporary
As a responsible enterprise, we actively promote energy-saving and emission-reduction facilities are constructed with color steel composite walls for insulation, insulated roofs, and sealed doors and windows with excellent
actions. We rigorously regulate the utilization of energy and resources in the workplace heat insulation properties to ensure effective insulation and minimize energy wastage. Energy-efficient lighting is employed extensively in
through green office practices, eco-friendly transport, equipment energy-saving construction sites, office areas, and living quarters, both indoors and outdoors. Specific on and off timings are established for lighting in
upgrades, and other methods. We also strengthen employees' awareness of resource tower crane lights, office areas, and living quarters, with adjustments made according to seasonal requirements to reduce energy losses.
conservation and environmental protection, aiming to improve the efficiency of energy We have established lighting operation maintenance and management systems and continually enhance energy-saving rates through
and resource utilization and achieve energy-saving and emission-reduction goals. electricity consumption tracking and comparative analysis. Automatic opening and closing times for various light sources, such as light
strips in public office areas, are shortened to minimize energy consumption.
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Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Highlight Highlight
Cost Control and Efficiency Enhancement Human-Machine Collaboration for Energy Efficiency
Based on the energy consumption data for the year 2022 and the expected increase in project area for the takeover C&D Property implemented a human-machine collaboration work mode in the After optimization, one machine only needed
to operate four times per month to complete
project in 2023, our subsidiary C&D Property and its business units jointly set the energy-saving target for the year Walton 1275 project, achieving a high equipment coverage rate of up to 90% the cleaning of
2023, aiming for a 5% improvement in energy efficiency. C&D Property requires all business units and projects to in the park. All of the aforementioned equipment operated on electric power
strictly adhere to the "Energy Conservation and Control Standard in Public Area" and "Energy Saving Management
Operation Guide," continuously improve and implement the water and electricity management system in office areas,
and abandoned traditional fuel-based equipment. Combined with standardized
equipment management, it ensured efficient and energy-saving operation of
1,640 parking spaces,
which significantly improved
and start implementing energy-saving measures from the initial stage of budget formulation through adjusting cost the equipment, achieving a 46% increase in equipment utilization efficiency work efficiency and
budgets to ensure the smooth achievement of energy-saving targets. Each business unit has formulated energy-saving and effective carbon emissions reduction. Taking the floor scrubber in the reduced energy
consumption.
plans based on the actual situation of their respective projects, detailing energy-saving modules, methods, monthly underground garage as an example, after optimization, one machine only
projected energy-saving data, completion time of energy-saving plans, and responsible personnel from multiple needed to operate four times per month to complete the cleaning of 1,640
dimensions. At the same time, energy-saving indicators have been included in the quarterly assessment of business parking spaces, which significantly improved work efficiency and reduced energy
unit functions as bonus points to encourage active participation in energy-saving work by all business units. consumption.
Completed the local temperature control transformation of 320 elevator machine rooms, achieved Highlight
automatic adjustment of air conditioning and fans based on room temperature, and significantly
improved the energy-saving effects. Equipment Renovation for Energy Conservation
Replaced the lighting fixtures in the underground garage with dual-brightness radar induction lighting
fixtures, automatically adjusted brightness based on pedestrian and vehicle flow in the garage, and
In 2023, MACALLINE completed the transformation of six ultra-low nitrogen burners in two of its shopping malls. After
supported regional networking to meet the travel needs of owners. The energy-saving effect of a single
the transformation, the air-fuel ratio and gas efficiency of the boilers reached their highest levels, with a combustion
project achieved at 20% approximately.
efficiency of up to 99.9%. Emissions of nitrogen oxides and other pollutants met environmental protection standards.
Strengthened the requirements for temperature settings and switch-off times for office area air Additionally, MACALLINE replaced and repaired 172,000 LED energy-saving lamps in the shopping malls, achieving a
conditioning, formulated relevant management systems, implemented energy-saving measures in office coverage rate of 99% with the LED energy-saving lamps which effectively reduced the energy consumption of the malls.
areas, and posted conspicuous reminder signs at air conditioning switches, and saved approximately 5,600
kWh of electricity per month. Replaced and repaired Achieving a coverage rate of
Optimized the automatic switch-off time and temperature of terminal fan coils or air conditioning 172,000 99%
subunits based on the number of personnel in office area, and saved approximately 6,200 kWh of LED energy-saving lamps in the shopping malls with the LED energy-saving lamps
electricity per month.
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Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Pollution Prevention and Ecosystem Protection
Exhaust Gas Management
We select decoration materials that have been tested and certified by statutory testing units, and conduct assessments
As a leading domestic supply chain operator and real estate
of hazardous substances in accordance with relevant national regulations and standards. We prohibit the burning of
developer, we are committed to creating an environmentally friendly
construction waste and other materials that produce toxic, harmful smoke, and foul odors within the construction area to
and comfortable business and living environment for stakeholders
minimize environmental pollution.
worldwide. We strive to minimize the environmental impact of our
operations. We have formulated an "Environmental Protection
Policy" that sets forth standardized requirements for our company
and its subsidiaries in reducing pollutant emissions, conserving
water resources, and protecting biodiversity, among other aspects.
Our company's management is responsible for environmental issue Dust Management
management objectives and pledges to oversee the implementation
Dust identification signs are installed on the construction site to identify dust generation during various stages and
of environmental management policies and the improvement of
processes of construction, enabling precise management by classifying pollution levels in advance.
environmental performance. Our production-oriented enterprises
under the company have obtained ISO14001 environmental Early overall planning is conducted for site leveling, and concrete hardening is applied to construction roads.
management system certification.
Dedicated personnel are assigned to perform daily cleaning, and water trucks are deployed for regular watering to keep
the roads moist.
Uncovered soil is managed by a combination of planting grass and using green nets to control dust, ensuring
comprehensive coverage of site management without leaving any blind spots.
Sprinklers are installed at fencing, scaffolding, mixing sheds, and tower crane locations, equipped with mist cannons,
water trucks, and portable dust prevention devices to establish a comprehensive and multi-level dust control system.
According to pollution weather response notifications issued by government departments, the sprinkler system is
activated at specified intervals throughout the day to reduce dust.
Pollutants Emissions Control Monitoring points are set up for the main sprinkler systems of each project, utilizing wireless sensor technology and laser
dust testing equipment to monitor PM2.5 levels online. The sprinkler system is activated in real-time when PM2.5 levels
exceed 75μg/m, automatically spraying until PM2.5 returns to normal levels.
We strictly adhere to relevant laws and regulations such as the "Air Pollution Prevention and Control Law of the People's Republic
Mortar mixing operations are centralized within enclosed mixing sheds, with sprinkler systems installed around the
of China," the "Water Pollution Prevention and Control Law of the People's Republic of China," the " Law of the People's Republic perimeter of the shed roof.
of China on Prevention and Control of Environmental Pollution by Solid Waste," and the "Law of the People's Republic of China
on Prevention and Control of Environmental Noise Pollution." We regulate the management of pollutants such as exhaust gases, The design of discharge outlets in garbage recycling channels is optimized, with spray systems installed to prevent dust
wastewater, solid waste, and noise to minimize the negative impact of emissions from our business operations on the surrounding pollution.
environment. In 2023, we did not experience any significant environmental pollution incidents and did not receive any related
penalties. Automatic high-pressure water systems are installed at the washing bay to ensure that vehicles leaving the construction
site are cleaned, reducing road pollution.
● Exhaust Gas Emission Management
In the operation of shopping malls under our company, we attach great importance to the issue of kitchen fume emissions
in the catering industry. We have implemented practical and effective measures to comprehensively manage kitchen fume
In the real estate business, construction exhaust gases and dust are common pollutants during the construction
emissions in the malls we operate. This includes establishing strict standards for kitchen fume emissions, regulating the
process, which can have a certain impact on the surrounding environment and human health. We have implemented
design of kitchen fume ducts, and installing fume purifiers in the catering outlets of the malls to ensure that fumes are
a series of proactive measures to manage and control the emissions of construction exhaust gases and dust during
project construction: emitted only after meeting the standards. Additionally, we have undertaken renovations on the slag bin bag dust removal
system, replacing filter bags for the bag filter, actively improving dust removal efficiency, and reducing exhaust gas emissions.
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Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
● Wastewater Discharge Management
Fixed garbage collection points are set up within the community, equipped with clearly labeled and color-
coded waste sorting containers to ensure residents dispose of garbage correctly. Hazardous waste collection
In the real estate business, we have implemented strict measures for wastewater discharge management during project Household bins are also treated to prevent leakage, avoiding secondary pollution. Property management is responsible for
construction, ensuring efficient treatment and environmentally friendly discharge of wastewater. Waste
coordinating and managing various aspects of community household waste classification, including collection,
transportation, and disposal. In office buildings, garbage sorting bins are placed in pantries and elevator lobbies
to encourage employees to actively participate in and correctly carry out waste sorting.
Each project site is equipped with three-stage sedimentation discharge facilities, with sedimentation tanks
installed at the front of mixers, concrete conveying pumps, and cleaning areas for transportation vehicles.
Sediments in the tanks are regularly removed.
Efficient sewage discharge systems are established on construction sites to ensure separate use of
Mall We use classified garbage bins to sort and store waste, and have signed waste removal contracts with waste disposal
rainwater and sewage networks. It is strictly prohibited to discharge non-rainwater into municipal
rainwater pipelines. Waste companies to ensure compliant handling of building waste.
Temporary roads and material storage areas on site are planned with drainage ditches to control sewage
flow. Sewage is directed into municipal sewage pipelines after sedimentation to prevent construction
sewage from directly entering municipal sewage pipelines or polluting the environment.
Cafeterias in living areas are equipped with grease traps. Oil residues are treated through sedimentation During the pulp and paper production process, we have established a "Responsibility System for Prevention and
and grease separation before being discharged into municipal sewage pipelines. Food residue bins are
provided to handle food residues properly, and it is strictly prohibited for food residues to flow into Control of Hazardous Waste Pollution" to strengthen the management of the entire process of solid waste generation,
municipal pipelines. storage, utilization, and disposal. Hazardous waste is entrusted to qualified companies for disposal. General solid waste
Paper Mill such as fly ash, slag, and desulfurization gypsum are utilized as raw materials by building material companies. Paper
Toilets in living areas are equipped with septic tanks. Sewage is decomposed and settled before being
Waste mill waste is utilized as raw materials for comprehensive utilization projects of paper mill waste. Waste plastics, waste
discharged into municipal sewage pipelines through on-site pipelines, and regular cleaning is conducted
pulp, and waste metals are sold as production raw materials externally. Unusable bottom slag and sludge are entrusted
using cleaning vehicles.
to qualified companies for incineration. Additionally, a small amount of sludge is co-fired with coal in the company's
Special storage rooms and ground sealing measures are implemented to strengthen the management of boilers for fuel utilization.
oil and chemical storage on site, and arbitrary dumping of oil is strictly prohibited to ensure that water and
soil resources are not polluted.
Establish dedicated temporary storage sites for waste and store them separately, especially those that may cause
Our company's production factories actively carry out projects to upgrade sewage treatment pump stations, along secondary pollution. Implement safety precautions and prominent signage.
with constructing anaerobic tanks and supporting facilities, aiming to enhance sewage treatment capacity and reduce Set up enclosed garbage stations on construction sites for timely sorting and recycling of waste materials. Special
wastewater discharge. Additionally, we utilize grease traps to purify and treat kitchen wastewater generated by the malls living and office areas are equipped with designated waste recycling stations, cleaned daily by assigned personnel.
operated under our company, ensuring that the wastewater meets the required standards before discharge.
Sign environmental agreements with local waste disposal centers for timely disposal of construction and household
waste.
● Waste Discharge Management Immediately cover non-toxic and harmless waste such as construction leftovers with soil and regularly remove them.
Construction Classify recyclable waste and store it properly in designated bins or containers, managed centrally by warehouse
Waste
administrators.
We implement measures for classified management of household waste, mall waste, as well as general and hazardous
Non-recyclable waste should be piled up at designated locations for timely removal.
waste generated during paper mill operations and real estate construction projects, aiming to minimize waste generation
and discharge. Additionally, we have developed comprehensive emergency plans such as the "Comprehensive Emergency Ensure no littering or mixing of waste during transportation.
Plan for Sudden Environmental Incidents" and the "Special Emergency Plan for Sudden Environmental Incidents of
Transport toxic and hazardous waste to specialized centers for disposal.
Hazardous Waste," and actively conduct emergency drills for sudden environmental incidents. These drills focus on
emergencies such as hazardous chemical spills and waste oil leaks, aiming to prevent and mitigate the harm caused by Prohibit the melting of asphalt or burning of waste materials containing toxic and harmful substances on
sudden environmental incidents, and safeguard public health and environmental safety. construction sites.
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Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
● Noise Pollution Management
In our real estate business, we integrate the concept of sponge cities into the
planning and construction processes of residential projects. Through techniques
2023
such as rain gardens, sunken green spaces, rainwater storage and reuse We completed the construction of
We actively implement corresponding measures to control the noise generated at construction sites, ensuring that noise
management complies with the standards and requirements set by national and regional regulations.
systems, permeable paving, and vegetated swales, we effectively manage on-
site stormwater runoff, reduce pressure on stormwater networks, and mitigate
1
surface pollution. During the pre-application phase for construction project new sponge city project
planning permits, we thoroughly discuss and refine the sponge city construction
For high-noise equipment such as mixers, we install enclosed soundproof enclosures to mitigate noise. implementation plan and develop detailed management strategies to ensure with an area of
6,000
During the interior decoration phase of commercial complexes and small businesses, we implement fully smooth project progress. In the design phase, we closely integrate building
enclosed construction practices. square meters
and landscape design schemes with factors such as rainwater collection and
Depending on the specific circumstances of nearby schools, hospitals, residential areas, and other facilities, we schedule utilization, roof greening ratio, green space sinking ratio, permeable surface ratio,
bringing the total number of
construction activities during reasonable time periods and prohibit nighttime construction. In case of exceptional low-impact development indicators for roads, rainwater runoff pollution and total completed sponge city projects to
7
circumstances requiring nighttime construction, we obtain the necessary permits and inform nearby community residents. runoff control, and delineation and protection of water systems. Our construction
projects respect the original terrain and landforms, prioritizing the design of
Prior to conducting cutting, vibration, or other noisy construction activities in densely populated residential and
sunken and sunken green spaces, rational plant allocation, and the installation of with a total area of
commercial areas, we not only obtain the necessary approvals but also inform nearby residents and businesses about the
rainwater storage facilities. We also develop rainwater collection and utilization
planned operations, their potential impacts, and the measures taken to mitigate noise.
facilities, guiding rainwater from hardened areas such as roofs and roads into 561,000
sponge facilities through measures such as rainwater pipe connections and
square meters
vertical optimization, comprehensively utilizing rainwater resources.
At our construction sites, we implement measures to protect groundwater resources by strictly prohibiting the drilling of wells
Water Resources Management
and extraction of groundwater. We ensure that water used for production and daily activities on construction sites is obtained
from water-saving appliances, such as water-saving flush tanks and low-flow faucets in washrooms. Clear signs indicating
water conservation measures are installed at water sources. We regularly collect water usage data from construction sites,
We prioritize water resource management, adhering to relevant laws and regulations 2023 establish water-saving statistics accounts, analyze and compare them to enhance water conservation rates. Routine inspections,
concerning water resource protection, and recognizing the significant impact of maintenance, and replacement of all water supply valves at construction sites are conducted to prevent any leakage or wastage
water consumption on the environment. Throughout our operations, we optimize of water.
In 2023, all production-oriented
water resource management measures to enhance water use efficiency, reduce water enterprises under our company
consumption intensity, and ensure the sustainable utilization of water resources. achieved their annual targets for water
consumption per unit of product.
2023
Additionally, we encourage our employees and stakeholders to cultivate a sense
of responsible water use, collectively contributing to water resource conservation In our pulp and paper production business, we have established a water-
efforts. In 2023, all production-oriented enterprises under our company achieved saving management system and formed a water-saving leadership team We utilized
their annual targets for water consumption per unit of product. to oversee water-saving initiatives. Each year, we develop water-saving
targets for various departments and implement corresponding measures. 1.78 million tons
of reclaimed water for pulp and
We set advanced, reasonable, and feasible water consumption quotas,
paper production,
conduct regular assessments to prevent water loss and waste, and actively reducing the consumption of
promote relevant laws, regulations, and policies on water conservation to freshwater resources.
raise awareness among employees. We strive to reuse wastewater whenever
possible, utilizing reclaimed water for activities such as wheel cleaning and
dust suppression on-site. In 2023, we utilized 1.78 million tons of reclaimed
water for pulp and paper production, reducing the consumption of freshwater
resources.
35 36
Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Highlight Biodiversity Conservation
Choice of Purity": All-Bamboo Pulp Natural Color Paper
We value ecological and biodiversity conservation, avoiding conducting business activities unrelated to ecological protection in
To make papermaking more environmentally friendly, our investment in Yongfeng Pulp and Paper achieves an 85% important ecological conservation areas and their vicinity. Meanwhile, we encourage our subsidiaries and stakeholders not to
water recycling rate. Wastewater undergoes three-stage biochemical treatment, complying with the latest national locate offices or business premises within natural reserves, refrain from using rare plants and animals as raw materials, abstain
pollution discharge standards. The emission standards for Yongfeng Pulp and Paper far exceed national cleanliness from conducting animal experiments with rare animals, and strive to minimize adverse impacts on the ecological environment and
standards, reaching the level two standard of clean production in the international pulp and paper industry. biodiversity in our business development.
Highlight
In the operation of our shopping malls under the company, water faucets are equipped with foamers to effectively
reduce water consumption. Water-saving signs are posted in public areas to enhance water-saving awareness and Protection of Ancient Banyan Trees
regulate water usage behavior.
In the project planning and design process, we adhere to the concept of integrating ecological environmental
protection and actively carry out biodiversity conservation work. In 2023, we successfully protected several ancient
trees in Xiamen, Fuzhou, Chengdu, Nanning, Zhangzhou, Yong'an, and other places, promoting the harmonious
coexistence of cities and nature. In the project site of Xiamen C&D Wuyuan Bay Sea, two hundred-year-old ancient
banyan trees stand tall, witnessing the passage of time and carrying rich cultural memories. In order to fully protect
In office premises, we require employees to handle water appliances with care, prohibiting rough usage to prevent and respect these two ancient banyan trees and their surrounding ecological environment, our landscape design team
damage. Employees are encouraged to minimize water usage by reducing water volume and shortening usage time. carefully planned the design of the Banyan Shade Pavilion under the banyan tree. The banyan shade surrounding the
Water-saving signs are posted in public areas to eliminate serious waste phenomena like continuous or unnecessary ancient banyan tree endows the space with spirituality and vitality. Combining with the atrium bay sea living room, a
water flow. Encouraging the use of personal water bottles during meetings and providing cups and water pitchers in double-layer landscape interactive experience area is created to achieve harmonious coexistence between the project
meeting rooms to reduce unnecessary consumption of bottled water. In 2023, C&D Property actively promoted water- and nature.
saving measures, achieving efficient utilization of water resources:
Adjust the opening and closing times of landscape water features to only operate on holidays, and
redirect the saved water resources for surrounding greenery irrigation, saving approximately 175 tons of
Highlight
water per month.
Tree Planting Volunteer Activity
Optimize and replace the faucets used for cleaning purposes to reduce water output, set up water-saving
reminders, saving approximately 170 tons of water per month.
In 2023, our company's affiliated Lianfa Group actively
organized a tree planting volunteer activity during
the Arbor Day. Over 70 volunteers from the company
Implement high-efficiency secondary water purification equipment to reduce wastewater discharge, went to Xiamen Institute of Software Technology
saving approximately 150 tons of water per month. and planted the "Lianfa Volunteer Forest." Through
hands-on participation, employees gained a deeper
understanding of the importance of environmental
Replace greenery irrigation equipment and change the original manual irrigation method to automatic
protection, enhanced their awareness of ecological
sprinkler irrigation to reduce manual waste, improve irrigation uniformity, saving approximately 140 tons
civilization, and cultivated a sense of environmental
of water per month.
responsibility and action.
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Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Resource Utilization and ● Aluminum Scrap Recycling
We recycled a total of
2023
Circular Economy Promoting the overall low-carbon transformation of the aluminum industry chain
has become the consensus of the global aluminum industry. Aluminum recycling
39,000 tons
enables the reduction of waste emissions and the consumption of energy and of recycled aluminum
We actively promote green circular economy initiatives, aiming to enhance resource utilization efficiency and minimize carbon
and aluminum alloy ingots,
emissions across the entire lifecycle of materials and products. By strategically positioning ourselves in the new energy sector, resources, and effectively lessens greenhouse gas emissions from the aluminum
industry chain, which is of great significance to environmental protection. By with approximately
we vigorously expand operations in the upstream and downstream supply chains of the new energy industry. We provide service
33,000
leveraging our professional expertise in international trade, we actively expand
solutions for various segments of the new energy industry chain, thus contributing to the development of a green, low-carbon tons
our business in recycling and processing of scrap aluminum, contributing to the
circular economic system and mitigating climate change.
development of the circular economy. In 2023, we recycled a total of 39,000 tons
imported to China.
of recycled aluminum and aluminum alloy ingots, with approximately 33,000 tons
imported to China.
Implementation of Circular Economy Practices
● Waste Paper Recycling 2023
We recycled a total of
The development of a circular economy to promote green economic growth and climate goals has become a consensus and
inevitable trend for global economic development. We actively respond to the global temperature control goals of the Paris
We actively engage in paper recycling business, utilizing waste paper 350,000 tons
to produce various types of paper such as coated paper and kraft of waste paper,
Agreement by conducting green circular economy businesses, improving resource utilization efficiency, and minimizing carbon
cardboard, effectively saving the use of natural resources like wood.
emissions throughout the entire lifecycle of materials and products. Our goal is to contribute to mitigating climate change and
For the waste pulp generated during the production process, we reducing deforestation
facilitating the construction of a green, low-carbon, and circular human society.
recycle all of it, replacing primary materials and reducing resource by approximately
waste. In 2023, we recycled a total of 350,000 tons of waste paper,
reducing deforestation by approximately 210 square kilometers. 210 square kilometers
● Scrap Steel Recycling
We focus on the resource utilization of scrap steel, actively engaging in key nodes of ● Waste Resource Recycling
the steel recycling industry chain to address the challenges of scattered, disordered, 2023 2023
We exported
and poor-quality scrap steel supply chains. Our goal is to provide steel mills with We recycled Through providing high-quality services with the LIFT supply chain,
stable, safe, and reliable scrap steel resources to meet their raw material needs. We approximately we have established long-term strategic partnerships with several
200,000 tons
470,000
have strategically partnered with major steel mills in key regions across the country biodiesel and waste oil refining plants in China, enabling comprehensive
tons of industrial-grade mixed oil,
and have planned and constructed scrap steel industrial bases in Benxi, Lanzhou, recycling and utilization of waste resources such as waste cooking oil
reducing deforestation
Baotou, Tianjin, and Tangshan. These bases integrate settlement, warehousing, of scrap steel resources and sewage oil. On one hand, we actively promote solutions to the
issue of sewage oil, aiming to eliminate its return to dining tables and
250,000
processing, and distribution facilities, forming a comprehensive scrap steel recycling
create a healthier living environment. On the other hand, we seek tons
network with an annual processing capacity of 3.5 million tons. We supply stable,
safe, and reliable scrap steel resources to surrounding steel mills such as Benxi environmentally friendly and effective alternative energy sources to
of first-generation biodiesel, and
Steel, Baosteel, and Shougang, thereby assisting industry partners in improving address the depletion of fossil fuels and reduce exhaust emissions.
In 2023, we exported 200,000 tons of industrial-grade mixed oil,
20,000
the utilization rate of recycled scrap steel resources and promoting the green and
250,000 tons of first-generation biodiesel, and 20,000 tons of second- tons
low-carbon development of the steel industry. In 2023, we recycled approximately
470,000 tons of scrap steel resources. generation biodiesel.
of second-generation biodiesel.
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Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Investment in New Energy Industries Highlight
Fujian Xiamen-Jiyuan 2.6MW Project
We actively respond to the national "dual carbon" and "dual reduction" policies, continuously investing in green industries. Over the
In 2023, our investment in the Xiamen Jiyuan 2.6MW distributed
years, we have focused on the wind and photovoltaic industries, leveraging our mature supply chain management capabilities. By
photovoltaic power generation project is located on the roof of the
utilizing financial derivatives and other tools, we integrate various resources along the industrial chain to provide full-cycle supply
Xiamen Jiyuan Enterprise. The project utilizes a total area of 20,000
chain services to our industrial clients. We continuously innovate in areas such as solar photovoltaic power station development
square meters of factory roof space, with the installation of 4,774
and new energy vehicle sales, exploring deeper international cooperation and exchange models in the supply chain operation
high-efficiency photovoltaic modules. The project's electricity
business. This promotes the high-quality and sustainable development of our company's business, while providing global customers
generation capacity can reach 3.12 million kilowatt-hours annually,
with high-quality, cost-effective products and diverse customized, efficient, and reliable supply chain solutions. We contribute to
saving approximately 1,017.1 tons of standard coal per year and
accelerating the global green energy transformation and upgrade.
reducing carbon dioxide emissions by about 2,464.7 tons.
Saving approximately Reducing carbon dioxide emissions
● Distributed Photovoltaic Power Stations
1,017.1 tons
2,464.7 tons
of standard coal per year
In the field of photovoltaic power stations, we have formed a professional team, integrated internal and 2023
external resources, and collaborated with industrial parks, automobile cities, and large industrial and our investment in green
and low-carbon industries
commercial enterprises. We are based in the Jiangsu, Zhejiang, Shanghai, and Fujian regions and steadily
such as photovoltaic power
expanding our presence domestically. We have invested in and constructed high-quality distributed
stations amounted to Highlight
photovoltaic power station projects in multiple regions including Jiangsu, Shanghai, Fujian, and Henan.
By the end of 2023, we had built 14 distributed photovoltaic power stations with a total connected 29.1 million
RMB Henan Jiaozuo - Mingren Pharmaceutical 1.8MW BIPV Project
capacity exceeding 18 MW. These stations were designed to generate an annual output of over
20,550,000 kWh, resulting in the reduction of 16,237 tons of carbon dioxide emissions and saving 6,701
tons of standard coal. Continuously providing enterprises with safe, green, low-cost, and sustainable In 2023, our company invested in the first phase of the 1.8MW BIPV (Building Integrated Photovoltaics) project at Mingren Pharmaceutical in Henan.
clean energy, we have achieved a win-win situation in terms of both economic and ecological benefits. Adopting a self-consumption model with surplus electricity fed into the grid, the designed operational period after grid connection can achieve an
In 2023, our investment in green and low-carbon industries such as photovoltaic power stations average annual electricity generation of 1.94 million kWh. This project can save approximately 633.7 tons of standard coal annually, reducing carbon
amounted to 29.1 million RMB. dioxide emissions by about 1,535.7 tons per year.
Saving approximately
633.7 tons
of standard coal per year
Reducing carbon dioxide emissions
1,535.7 tons
41 42
Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Highlight Highlight
Fujian Xiamen - Xiang'an 1.5MW Project Macalline Photovoltaic Power Station
The 1.5MW distributed photovoltaic project we Ningbo Yaojiang Shopping Mall has constructed a photovoltaic power station in the idle areas of the podium and
invested in is located on the roof of the C&D tower roofs, with a total construction area of 1,400 square meters and an installed capacity of approximately 265 kW;
International Automobile City, a subsidiary of C&D Quzhou Aiqinhai has installed a solar photovoltaic system in the idle areas of the roof, with a total area of 1,600 square
Automobile, in Xiang'an District, Xiamen. After the meters. The proportion of renewable energy provided by the photovoltaic system can reach 2%, and two roof-mounted
project is grid-connected, coupled with energy air-cooled heat pumps provide heating and cooling to the internal theater of the shopping mall, achieving an energy
storage equipment, the average annual electricity efficiency improvement rate of 19.67%. In the residential construction field, Shenzhen Zhenzhu Yaju project plans to
generation can reach 1.8 million kilowatt-hours install a 6.97 kW solar photovoltaic system to meet its 697.2 kW utility electricity demand, and is expected to achieve
during the design and operation period. This the actual application of solar power generation systems by 2025; the residential part of Xi'an Yuechunshan project
translates to an annual saving of approximately uses rooftop solar hot water systems, while commercial and supporting facilities adopt photovoltaic power generation
586.8 tons of standard coal and a reduction of technology.
about 1,422 tons of carbon dioxide emissions.
The average annual electricity generation can reach An annual saving of approximately A reduction of about
1.8 million kilowatt-hours
586.8 tons
1,422 tons
during the design and operation period of standard coal of carbon dioxide emissions
Highlight Ningbo Yaojiang
Home Furnishing
Jiangsu Suzhou - Kingswood 1.5MW Project Shopping Mall
Rooftop Photovoltaic
In 2023, our Jiangsu Suzhou - Kingswood 1.5MW Project is located in the Xiangcheng District. Utilizing the factory Power Station
premises of Suzhou Kingswood Education, the project installs a total of 1.5MW photovoltaic power generation system
with a construction area of 17,000 square meters. After the grid connection, it is expected to generate an average annual
electricity of 1.59 million kWh over the 25-year design and operation period. The project will adopt a "self-use" mode,
with 95% of the generated electricity consumed by the owner unit. It is estimated to save about 518.3 tons of standard
coal and reduce carbon dioxide emissions by about 1,256.1 tons annually.
Save about
518.3 tons
of standard coal
Reduce carbon dioxide
emissions by about
1,256.1 tons
annually
43 44
Xiamen C&D Inc. 2023 Sustainability Report About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
● The New Energy Vehicle Business ● Empty Bottle Recycling Program
In the field of new energy vehicles, we have been deepening our cooperation with leading or emerging enterprises
in the market in recent years. We invest in and build 4S stores or provide brand after-sales services for new energy In 2023, our company officially launched the C&D Zunya
brands such as Lotus, smart, AVATR, Dongfeng Mengshi, ZEEKR, and Galaxy, aiming to provide consumers with lower- empty bottle recycling program under our proprietary
carbon and higher-quality travel services. At the same time, we have established a heavy-duty truck battery swapping liquor brand. This initiative allows consumers to return
station in Zhangzhou, and reached supply chain cooperation with companies like DST and Geely Commercial Vehicle. their used Zunya bottles to Happywine in exchange
We are actively exploring business opportunities in new energy commercial vehicles to support the transformation and for incentives, promoting repeat purchases. Upon
development of commercial vehicles towards new energy. receiving the empty bottles, the company sterilizes
and repurposes them into tea canisters, contributing
We established a joint venture company to engage in new energy logistics business, using pure electric heavy-duty
to waste reduction and promoting the concept of a
trucks as the transportation carrier, replacing diesel trucks in specific transportation scenarios. During the reporting
circular economy. Additionally, we collaborated with
period, we have cumulatively transported goods using pure electric heavy-duty trucks for over 1.15 million kilometers.
our in-house digital platform, C&D E-learning, to
After deducting the emission factors of electricity, it is estimated to have reduced carbon dioxide emissions by over
promote tips for low-carbon living in daily work and life
200 tons. In the future, if clean energy generation is introduced to supplement power, the carbon reduction ratio is
through online channels and office elevator displays.
expected to further increase.
The campaign successfully collected over 1,000 empty
bottles and reached an audience of 10,000 through
targeted promotional posters.
● The Lithium Battery Business
Collected over
In the lithium battery sector, we collaborate with several leading enterprises across the industry's upstream and
downstream sectors. We establish a comprehensive service layout covering the entire industry chain, from overseas raw 1,000 empty bottles
materials to processing plants and then to battery production. Tailoring to the diverse needs of customers along the
industry chain, we offer professional supply chain services for lithium battery materials such as cobalt sulfate, cobalt Reached an audience of
hydroxide, cobalt oxide, lithium carbonate, and others.
10,000
through targeted promotional posters
Resource Recycling
In our office, we advocate for the use of paperless office systems to
reduce paper consumption and ink usage while simplifying office
processes and improving efficiency. We actively promote black and white
printing and double-sided printing, and have established dedicated bins
Highlight
for recycling paper, encouraging employees to use recycled paper. Our
property management regularly inspects communal areas such as offices Green Marketing
and meeting rooms, recycling and redistributing reusable office supplies
to promote resource reuse. We conduct regular warehouse inventories, "Lianfa Cloud Store Mini Program" serves as the official designated online marketing platform for Lianfa Group. Through
repairing and repackaging old or damaged items that are still usable its systematic online platform construction and functional support, it effectively saves or replaces the consumption of
for reintegration into our operations. For items with low utilization or traditional offline promotional materials for project marketing, including printed materials such as paper posters, project
that are idle, we consider donating them to charity or using them for brochures, and floor plans.
employee activities to increase their utility.
45 46
SOCIAL
Completion
Social Performance Targets in 2023
Status
1 Active community dialogues are conducted, and the proportion of local community
communication initiatives organized annually stands at 100%.
2 The annual ratio of locally hired employees should not be less than 60%.
3 The annual number of voluntary activities conducted should not be fewer than
250, with a minimum of 3,000 volunteer service hours provided.
4 Construct a supply chain risk management framework, identify and assess supply
chain risks, and formulate effective response strategies.
5 The number of punitive incidents related to the health and safety impact of
products and services should be zero.
6 The average annual training hours provided to employees should not be less than
10 hours per person.
7 The number of extraordinary major accidents or major accidents should be zero.
8 The mortality rate for general accidents should be zero.
9 100% of subordinate production enterprises should obtain the ISO 45001
Occupational Health and Safety Management System Certification.
10 Safety training organized during the year covers 100% of the employees.
11 CSR/ESG requirements are gradually being integrated into supplier admission
criteria.
Completed In progress Unfinished
2023 建发股份可持续发展报告 About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Rural Revitalization and Public Service Highlight
"Bamboo pulp paper" from Muchuan County
`
In 2006, we invested in Muchuan County, Sichuan Province to establish Yongfeng Pulp Built an advanced production line
We consistently adhere to the mission of "To exploit new value for more people to live a superior life," following international and Paper. We built an advanced production line capable of producing 450,000 tons capable of producing
450,000
standards and norms such as "The Ten Principles of the UN Global Compact." We have formulated a "Community Policy" to actively of bamboo pulp and paper annually, accounting for approximately 30% of the national
tons
bamboo pulp production capacity. Yongfeng Pulp and Paper holds a leading position
integrate into the overall development of the country and localities, focusing on the co-prosperity and symbiosis of people and
in terms of production scale, technological processes, and product quality in the field
of bamboo pulp
society. We actively fulfill the mission of state-owned enterprises in rural revitalization, ensuring supply and stable prices, cultural of bamboo pulp papermaking, making it an important supplier in China and even
preservation, caring for children, and social welfare. We integrate the United Nations Sustainable Development Goals such as no globally. One mu (about 0.067 hectares) of bamboo forest can produce one ton of Omei
accounting for approximately
mountain bamboo. One ton of Omei mountain bamboo can bring several hundred RMB
30
poverty, quality education, decent work and economic growth, sustainable cities and communities into our corporate production
of net income to bamboo farmers. Omei mountain bamboo regenerates every year %
and operations. We are committed to promoting the establishment of mutually beneficial and symbiotic relationships with the and matures annually. Yongfeng Pulp and Paper adheres to purchasing raw bamboo
manually harvested by bamboo farmers, thus promoting local economic development. of the national bamboo pulp production capacity
communities in which we operate during the business development process, enabling the growth of our enterprises to resonate with
urban development. Currently, Yongfeng Pulp and Paper's annual sales revenue exceeds 1.9 billion RMB, with over 800 employees. It contributes approximately
50 million RMB in tax revenue annually and directly employs over 13,000 people, It also promotes the coordinated development of local
transportation, energy, manufacturing, tourism, and other industries in Muchuan, as well as the gradual return of young labor force. To
Promote Virtuous Deeds and Revitalize Rural Areas some extent, it addresses social issues such as left-behind elderly and children in rural areas. In July 2018, Muchuan County was removed
from the poverty-stricken county list, becoming the first county in Leshan City, Sichuan Province to "shake off poverty," and Yongfeng Pulp
and Paper was honored with the title of "Provincial Poverty Alleviation Leading Enterprise" as a result.
The issues concerning agriculture, rural areas, and farmers are fundamental to the nation's economy and people's livelihoods.
Comprehensive advancement of rural revitalization is a crucial task in building a strong agricultural nation in the new era. We
Yongfeng Pulp and Paper's annual Employees Total tax
leverage our industrial resource advantages and actively implement industry support policies to explore the diverse value of
sales revenue exceeds over payment Provincial Poverty
1.9 800 50
rural areas, promote the upgrading of rural industries, and contribute to the comprehensive advancement of the national rural Alleviation Leading
billion RMB million RMB Enterprise
revitalization policy.
49 50
2023 建发股份可持续发展报告 About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Highlight Highlight Support Livelihoods with Stabilized Supply
"Rice Carrying Care" from Renshe Village Wild Walnut Oil from Zuogong County
We have established a paired assistance relationship Due to the impacts of climate change, global food and energy security are facing severe crises and challenges. Leveraging our rich
with Renshe Village in Tingxi Town, Tong'an District, experience in supply chain operations, global network layout, specialized service capabilities, and industry-leading risk management
Xiamen City. Our focus is on industrial revitalization, system, we actively participate in China's manufacturing green transformation and upgrade. We have built a global supply chain
guiding Renshe Village to explore and develop
service system, actively integrating into the new development pattern of dual circulation, both domestically and internationally, to
its own advantages. We assist in promoting the
ensure the security of the national agricultural products and energy resources supply chain.
implementation of village-level collective economic
development projects, further revitalizing collective
assets, enhancing the overall economic benefits
of the collective, and increasing farmers' income. ● Service to Guarantee Food Supply ● Service to Ensure Resources Supply
Through on-site investigations, we emphasize
In the agricultural products field, we have been Starting from market demand, we are expanding
promoting agricultural product processing and
sales and have planned the "Rice Carrying Care" continuously cultivating a global supply chain layout channels for high-quality resource supply in regions
subscription project to attract investment for rural for many years. We have logistics nodes in key grain such as South America, Africa, and Central Asia. We
development. production and sales areas worldwide, including South actively cooperate in primary industrial production
Renshe Village has now been designated as a America, North America, the Black Sea, and along the capacities, including copper mines and lithium mines
demonstration village for rural revitalization in "Belt and Road". By establishing long-term and stable in Chile, chromium, manganese, and zinc mines
Xiamen City and has also been selected for the partnerships with major shipping companies such in South Africa, and copper mines in Kazakhstan.
provincial-level demonstration village creation list.
as Maersk, COSCO Shipping, CMA CGM, and MSC, Additionally, we are actively promoting cooperation
we have built a secure and controllable international in Southeast Asia for primary industrial products
trade shipping system for agricultural products. This such as crude copper, alumina, ferro-nickel, and steel
effectively enhances the security level of the country's billets. Our aim is to provide domestic manufacturing
overseas grain supply chain and ensures the security enterprises with a wider range of resource and energy
We have conducted in-depth cooperation of the agricultural products supply chain. supplies, supporting the development of the industrial
with Zuogong County, Tibet, to assist in the sector.
implementation of the Wild Walnut Oil project
on the Zuogong plateau. In this project, we
provide support in product development,
refinement of product cultural connotations,
and upgrade of product packaging design.
We also enhance the "Yuqulu" brand to
increase product added value, and assist in
building logistics, customer service, and after-
sales systems to help agricultural and special
products from Zuogong County reach a
broader market.
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2023 建发股份可持续发展报告 About This Report Message from the Chairman About C&D Inc. Environmental Social Governance Appendix
Engage in Community and Preserve Cultural Heritage Highlight
Protection of Ancient Trees
We are deeply aware that establishing mutually beneficial relationships with the communities in which we operate is crucial for the In real estate development projects, there are cases where ancient trees grow within the designated construction area. If these ancient
sustainable development of our business. We have established proactive and effective dialogue mechanisms with local communities, trees are preserved, it may affect the construction plans. However, if the original plans are followed, it could result in the destruction of
with each operational site having a department responsible for community communication. We provide stakeholders with accessible the city's historical memory. Faced with the decision of whether to remove or preserve the ancient trees, we choose to respect the cultural
heritage of the city, prioritizing the preservation of ancient trees over the convenience of construction. This decision allows us to safeguard
channels for negotiation, appeals, and consultations, ensuring that any reasonable opinions, suggestions, issues, or complaints are
the memories of the local community and uphold the historical significance of the old city, even if it means making concessions in the
received, recorded, and promptly addressed with appropriate feedback and resolutions.
construction process.
In our business development, we conduct community risk assessments, engage in effective stakeholder communication, and The project in Huangshi, Hubei, is situated on the former site
of the Old Huangmei Cotton Factory, where three century-
incorporate priority issues for community development into our corporate development plans. This includes, but is not limited to,
old camphor trees grow. Adhering to the principle of adapting
respecting and protecting the rights of local communities, indigenous peoples, cultural customs, cultural heritage, and ecological
to local conditions, we have decided to use the crown of the
environment. We aim to participate in the construction of business operation sites as welcomed partners, making every effort to trees as a reference point and design the support structures
reduce and mitigate the risks arising from our operations and minimize the negative impacts on the community. We adhere to the to bypass the ancient trees. The design of the underground
principle of "localization" and, in line with our "going global" strategy, prioritize the employment of local staff at our operational sites. facilities will also be adjusted to avoid disturbing the roots of
We conduct localized recruitment initiatives targeting specific regions and schools to promote local employment. Additionally, we these trees. This approach not only ensures their survival but
also integrates them into the design of a traditional Chinese
prioritize opportunities for local businesses in terms of raw material procurement, technical support, and business contracting to
garden landscape, allowing them to continue bearing witness
support local economic development.
to the "memory of Huangshi" through the changes of the past
Note: This is a conceptual rendering as the project is still under construction.
century.
Highlight
In the "Xihu Wangyue" project in Zhangzhou, there is a
Protection of Ancient Dwellings
century-old banyan tree within the construction area. In
order to protect the growth of the banyan tree and preserve
the landscape, ensuring it continues to carry the legacy of
this land, our planning process involved continuous design,
In a construction project in Nanning, Guangxi, there is revision, and redesign over a period of 2 months. Ultimately,
a nearly 400-year-old Ming and Qing dynasty ancient we decided to make a 15-meter concession, sacrificing some
mansion. Such ancient buildings, which have stood the land, and relocating the main entrance from the west side
to the south side. This allowed us to create a pocket park
test of time and weather, symbolize the unique cultural
within the urban area, fostering a warm and comfortable
heritage and the longing for peaceful life among the
atmosphere, where visitors can feel at home as they arrive at
generations of people in the East. To relocate the main
the gate beside the grand banyan tree.
hall of the ancient mansion, we specifically invited experts
in ancient building restoration to oversee the restoration
In the Wuyuan Bay project in Xiamen, there are two ancient
work, making every effort to protect the ancient dwelling. banyan trees with histories of 107 and 177 years respectively.
The team of restoration experts used traditional methods Lush and verdant, these trees complement each other from a
for the restoration, ensuring that every detail, from distance. We aim to enhance the quality of community living
through thoughtful design, allowing residents to experience
the tiles to the beams and rafters, was repaired using
the tranquility of rustling leaves amidst their busy lives. To
materials sourced from ancient wood, with meticulous
achieve this, we have created the Banyan Shade Pavilion,
attention to craftsmanship. The restoration work lasted
offering residents opportunities for scenic views, relaxation,
for nearly half a year, and upon completion, the overall socializing, open-air theater performances, lawn activities,
restoration effect was excellent, with harmonious and and connecting with nature. Through these dynamic living
unified materials and a serene and rustic charm. spaces, we seek to raise awareness about the importance of
tree conservation.
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C&D Warmth Conveying to Children
Collaborate with schools and local Organize "Dragon Soars, Jade Conduct various themed class
Children are the future of the nation and the hope of the nation. Our company has long been committed to caring for the growth judicial institutions to organize Pavilion Shines: Enjoying New Year's meetings, such as science
of children. Through initiatives such as building the "Love Has a Future" youth public welfare brand and implementing projects like "Learning Law" themed educational Day" traditional games in schools, knowledge, environmental
"Nourishing Youth" and "Let Your Dreams Go," we aim to safeguard the growth of children and let them feel the "C&D Warmth." activities, guiding children to further enriching campus cultural life protection, and patriotic education,
enhance their safety awareness and and passing on traditional Chinese to engage students in diverse
self-protection capabilities. culture. educational topics and activities.
● "Hand in Hand" Education Assistance
In 2023, it will be the eleventh year of our friendly cooperation with
Xiamen Ding'an Elementary School. Over the past eleven years, we
2023 ● The "Nourishing Youth" Assistance Project
have carried out volunteer service activities and long-term education
Volunteer service activities
assistance for students at Ding'an Elementary School with our core The C&D Property Charity Foundation's "Nourishing Youth" project has been
2023
concept of "Warming Education." At the beginning of the cooperation, 2 times continuously focused on particular groups since 2012, explicitly assisting
this school located on Zhongshan Road in Xiamen only had 12 classes, underprivileged children under 16, In May 2023, the company participated in the
the "Nourishing Youth" project
and 95% of the students were children of migrant workers from outside "Nourishing Youth" pairing assistance activity jointly organized by the Datong has cumulatively provided
Xiamen. The Youth League Committee formed 12 volunteer teams, each Street Office of Tong'an District and the Xiamen Charity Federation, providing assistance to nearly
Over
200
pairing up with one class to form a "mutual aid alliance." Over the past assistance to nearly 100 students from Tong'an District and Huli District. As of
eleven years, education assistance activities have served over 6,100
teachers and students participants, totaling over 631.5 hours and 202
100 participants 2023, the "Nourishing Youth" project has cumulatively provided assistance to
underprivileged children
nearly 200 underprivileged children.
service events. In 2023, two volunteer service activities were carried out,
with over 100 participants.
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● The "Let Your Dreams Go" Education Assistance Project Go Beyond in Social Welfare
By the end of 2023 We continue to explore models of community-business collaboration by working hand in hand with our local community. Through
volunteer service activities closely related to residents' lives, such as creating a civilized and clean environment and conducting
the "Let Your Dreams Go" project had caring visits, we actively practice social responsibility. In 2023, we initiated the "Global Charity Action Plan" initiative and developed
cumulatively sponsored nearly
the LIFT Volunteer Action Mini Program. We have conducted more than 280 public welfare activities, with over 8,800 volunteer
3,300 participants and a cumulative volunteer service duration exceeding 3,400 hours.
college students
2023
Public welfare activities Volunteer over Cumulative volunteer service duration exceeding
"Let Your Dreams Go" is a charitable education assistance project led by the Xiamen Charity Federation and
280 times
8,800 participants 3,400 hours
implemented by the C&D Real Estate Charity Fund. Through donations for education, the company encourages current
candidates and students to overcome life difficulties and successfully complete their studies, conveying care, giving
back to others, and creating value for society. In August 2023, C&D Real Estate, in collaboration with the Xiamen
Charity Federation, conducted the "Let Your Dreams Go" charity assistance activity. They provided condolences to some
needy families and distributed consolation money, gifts, and inspirational books to 92 impoverished students. By the
end of 2023, the "Let Your Dreams Go" project had cumulatively sponsored nearly 3,300 college students.
● Community Elderly Care Activities
Our volunteer service team organizes community elderly care
● Activities for Impoverished Women and Children activities during holidays such as World Environment Day,
Double Ninth Festival, and Chinese New Year. For example,
we conduct "Company's Festival Chinese New Year" caring
visits, bringing rice, noodles, grains, and cooking oil as gifts,
and visiting elderly individuals in the community who are
under the care of the community, those who are widowed,
living alone, or from disadvantaged families. During the
Double Ninth Festival, we deliver carefully prepared gifts
and holiday blessings to the elderly in the community facing
difficulties.
The "Connected Heart and Drawn Dreams" School-Enterprise Cooperation Activity with Xinmei Central Primary School in Tulou Village.
Lianfa Group paired up with Tulou Village in Tong'an District, Xiamen City, the Women’s Children Development
Foundation of Xiamen has focused on caring for impoverished women and children for three consecutive years. Through
activities such as home visits, donations, and school-enterprise cooperation, practical difficulties of local impoverished
women and children have been addressed.
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● "The Yellow Bracelet Campaign"
Innovation-Driven, Suppliers, and
Customers
As a leading international supply chain operator and an outstanding real estate operator in China, we adhere to the brand
philosophy of "Together Go Beyond." Founded on professionalism and start from "mutual benefit", we seek improvement internally
while continuously empowering external industry partners towards green transformation and development, and aid the supply chain
in achieving green and high-quality growth.
Product Development and Innovation
Our party member volunteer service team, in collaboration with public welfare organizations, conducted "The Yellow
Bracelet Campaign – Sharing Love in Jinjiting, Warming the Hearts of the Elderly" activity in the Jinjiting Garden
With the growing maturity of advanced technological applications such as big data, cloud computing, artificial intelligence,
Community in Xiamen, in response to the call for the "30th World Alzheimer's Day". Through various on-site activities
the Internet of Things, blockchain, and 5G, a new round of technology revolution dominated by digitalization, networking, and
such as distributing yellow bracelets, providing medical consultations and haircuts, organizing traditional mooncake
intelligence is inevitable and accelerating its penetration from the consumer market to all aspects of the supply chain. We elevate
gambling games for the Mid-Autumn Festival, educating about financial consumer protection, and promoting
technological empowerment to the strategic level for planning, actively innovate in digital technology applications to create a supply
knowledge about waste sorting, we aimed to show care and support to the elderly residents of the Jinjiting
chain service system with unique characteristics, enhancing our business operations. By deeply integrating digital solutions with
community and raise awareness about preventing Alzheimer's disease among them.
traditional industry development, we aim to build a smart supply chain ecosystem to empower a transformation and upgrade of
traditional industries.
In terms of business process online transformation In terms of data digitalization
● Progress Together, Go Beyond" Volunteering Service
We have launched platforms such as the We have essentially achieved internal business data
Our party member volunteer service team, in collaboration with the Jinjiting Community in Xiamen, organized the
"E-Inspection" remote inventory management integration and continuously connect with upstream
"Love and Progress, Endless Vitality" Volunteering Service. Activities included free medical consultations, anti-fraud
platform and the "CND Pricing APP" online futures and downstream customers, logistics, warehousing,
awareness campaigns, waste sorting workshops, and paired assistance and condolence visits. We also invited paired
pricing and trading platform, advancing business capital, and credit data, and striving to build an
assistance groups from the Jinjiting Community to enjoy a private screening of the movie "Ping Pong: The Triumph" at
towards efficient online, digital, and visual operations. integrated big data ecosystem for industry linkage.
the cinema, enriching the spiritual and cultural lives of community residents, especially the elderly population. In 2023,
we conducted over 20 joint activities with the Jinjiting Community, with over 500 volunteer participants, and provided
paired assistance to more than 80 households in need.
Currently, we have essentially achieved connectivity with futures, banks, industrial and commercial, customs data, and are
2023 progressively advancing the digitalization and integration of supply chain transactions and customer data. Through the digitalization
of business processes and data, our supply chain service system can effectively integrate industry information, commodity indices,
Conducted over Volunteer over Provided paired assistance to more than corporate credit data, and design processes according to the business models of different commodities. We have launched internet
20 joint activities
500 participants
80 households platforms for various industries, such as "PaperSource" and "E-Pulp," for the pulp and paper industry, "C&D Cloud Steel (E-Steel
Link)" for the steel industry, "EasyAgri" customer service platform for the agricultural products industry, an online food supply chain
with the Jinjiting Community in need
service platform "E-Order" for the consumer goods industry, and digital operation solutions for the automotive industry, including a
private domain customer digital operation solution "Yujian" platform and a "EasyDeal" Intelligent Used Car Trading Center, to provide
more efficient and comprehensive services for customers in different industries.
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Highlight Supplier Management
C&D Consumer Goods Supply Chain Online Service Platform "E-Order" We implement strict supplier admission and evaluation processes to ensure all suppliers comply with our responsible
procurement policy, including requirements on business ethics and environmental protection. We monitor supplier
With the continuous development of the "dual circulation" performance through regular or irregular online and offline audits and assessments to ensure compliance with the
economic pattern domestically and internationally, the consumer "Supplier Code of Conduct."
goods industry is experiencing a resurgence. To address the
challenges and difficulties faced by the consumer goods supply To enhance supplier management, we have established a tiered and categorized management system for suppliers and
chain operation, such as long operational chains, multiple levels, combined with the specific industry conditions of different business fields to implement dynamic re-evaluations. We and
rapidly changing consumer demands, product and inventory our subsidiaries have developed respective supplier classification qualification review and assessment standards based
turnover risks, "black box" logistics information leading to on our industry characteristics and select suppliers with sustainable cooperation advantages to continuously improve our
transportation supervision and food traceability challenges, as responsible and precise management of suppliers.
well as the higher requirements for efficiency and management
levels in business aspects like contracting, ordering, and document
circulation due to significantly increased transaction frequencies,
we launched the "E-Order" online service platform for consumer We strictly implement supply chain control processes, conduct due diligence on supplier admission,
goods supply chains. This platform offers a digital full-process In supply identify and select high-quality suppliers, and include suppliers’ environmental and quality system
trading solution for upstream and downstream industry chains to construction into the comprehensive evaluation for admission. We focus on metrics such as factory brand
chain
meet different transaction scenarios. The "E-Order" platform uses internet platform information interaction technology to link brand owners and recognition, quality standards, production capacity advantages, green factories, and energy consumption
their downstream customers to offer services such as product display, order processing, logistics tracking, electronic receipt, online reconciliation, operations qualifications. We offer extra points for admission to state-supported environmental projects like waste
and rebate inquiry. The Platform breaks down barriers to commodity transaction information, integrating data across supply chain segments, and aluminum recycling.
provides a one-stop trading service experience for purchasers.
Business
Report through ERP system.
Declaration
Market Primary
Selection Conduct credit investigation and closely track changes, and report any abnormalities in a timely manner.
Responsible Procurement Overall
Rating
Comprehensive assessment based on credit management, creditworthiness, performance capability,
business qualification, and other related risks.
We actively practice responsible procurement by establishing a "Supplier Code of Conduct," which sets requirements in areas such
as business ethics, human rights, environment, and occupational health and safety, for all suppliers and contractors including those
Supplier
of us and our subsidiaries. Our management team is responsible for guiding and supervising the management of responsible supply Confirmation Confirmation and admission assessment of the results of the comprehensive evaluation of suppliers.
chain management issues. In procurement contracts, we require partners to commit to compliance with business ethics regulations,
environmental protection laws, and internationally recognized human rights standards, and pay attention to suppliers' employee work
hours, living conditions, minimum wage, and situations regarding corporal/disciplinary punishment. We value supplier integrity management We use the "E-Zhangxin" platform to dynamically monitor suppliers, and push daily updates on external negative information about
and advocate establishing long-term, stable, and honest cooperation with suppliers. Before commencing business, suppliers must sign an suppliers and focus on operational and judicial risks, including but not limited to issues like untrustworthiness, height restrictions, litigation,
"Integrity Agreement" and a "Commitment to Honesty and Law-Abiding," pledge to comply with all applicable laws and regulations and not environmental penalties, etc. For suppliers with anomalies, further research is conducted in accordance with our control requirements to
to request or give any financial or other forms of kickbacks or fees to any entity or individual, and promote business in an environmentally assess the actual situation of suppliers. We will timely implement checks and feedback, and issue warnings or terminating cooperation
sustainable and ethically compliant manner throughout the supply chain. when appropriate.
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involved, and they will be added to the supplier blacklist, with corresponding company personnel held accountable. Major quality accidents
We strictly follow national, provincial, and industry-specific regulations and standards, implement the and group complaints caused by the supplier will result in blacklisting.
"Supplier Code of Conduct" and actively promote suppliers to fulfill social responsibilities regarding
safety, environment, and employee rights, including rights protection for labor outsourcing,
In real estate explicitly prohibiting child labor, opposing forced labor and discrimination, adhering to minimum
operations wage standards, etc. All bidding suppliers are required to sign a "Commitment to Honesty and
Quality and Safety Assurance
Law-Abiding". During the bidding stage, suppliers are audited according to "bidder qualification
requirements," to assess their qualifications based on the validity, completeness, and substantiality of
bidding documents. The contract specifies terms for project quality, schedule, materials, safety, management, etc. We require quality that supplier delivered to
meet national technical regulations and environmental standards. Suppliers must ensure project materials and personnel safety by insuring
the lives and property of their own and third-party personnel at construction sites before starting work. We strengthen project assurance
by insuring "all risks for construction projects." For safety issues of supplier/contractor employees, besides daily inspections by the project
department, third-party assessments are conducted for ongoing projects using "spot inspections + accompanied by expert system," with
Supplier Collect information from potential suppliers through channels such as publishing source search our experts forming an accompanying expert pool and strictly follow or exceeding national standards for inspections, ranking results, and
Sourcing information, market search, internal and external recommendations, and media. making announcements.
Supplier
Set up inspection teams to review supplier information and conduct site visits.
Inspection Wage Arrears Prevention Mechanism
Supplier Establish a coordination mechanism for migrant worker wage payment and a wage arrears prevention mechanism by project, and urge
The inspection team, according to the inspection content for scoring assessment, fills out the "supplier
Rating inspection and evaluation form" suppliers with more than 60 points will qualify for the supplier pool. general contracting units to strengthen labor employment management and properly handle disputes related to migrant worker wage
payments. A special account for migrant worker wages is set up to allocate project funds in accordance with the contract in a timely manner
and ensure timely and full payment of labor costs to the special account for migrant worker wages. We supervse general contracting units
Entry The inspection team will initiate online supplier entry applications based on the assessment. After
to pay migrant worker wages on time and in full and ensure migrant workers' rights and preventing wage arrears by suppliers.
Review approval at all levels, the inspection team will register supplier information and prices and sign the
contracts and integrity agreements with suppliers.
We manage suppliers by grading them based on their performance in fulfilling contracts and conduct comprehensive investigations into
our business operations, personnel, work conditions, product quality, service quality, professional capabilities, and cooperative relationships. Macalline is committed to cooperating with domestic and foreign enterprises capable of high-standard
If suppliers are found engaging in commercial bribery, significant quality issues, occupational health and safety issues, or failing to pay supply, managing and evaluating suppliers from the perspectives of image, service, price, quality, integrity,
and blacklist behavior. Suppliers must demonstrate sufficient proof of supply or service, such as successful
migrant worker wages, their performance evaluation will be deemed unsatisfactory. For non-compliant suppliers, we will not renew or
cases and financial proof, and ensure no legal violations or untrustworthy records, not being blacklisted,
initiate new cooperation and will require them not to participate in any of our tendering and procurement activities for two years from the
having no major quality or business integrity issues, complying with national policies, regulations,
date of public announcement.
United Nations Convention trade regulations, and meeting industry standards. For suppliers with annual
Establish a "Blacklist" System Macalline framework contracts, group and regional negotiated business suppliers, top-ranked suppliers, and those
with potential risks, third-party institutions or internal departments jointly conduct regular or irregular
assessments through on-site evaluations and comprehensive service quality reviews, and ensure supplier
According to the "Implementation Measures for Project Bidding," suppliers with breaches of contract, multiple safety accidents, poor internal
quality, service, delivery timeliness, and after-sales service meet standards. Suppliers violating the "Supplier
inspection results, or ethical issues are temporarily suspended from qualification. Suppliers are evaluated monthly and feedback is provided,
Integrity Commitment" agreement, failing product and service quality assessments and rectification,
assessment includes the perspectives of engineering (quality, safety production, civilized construction, progress), warranty (warranty
harming the company’s interests, or engaging in illegal activities will have their cooperation terminated
timeliness, rectification completion rate, repair satisfaction), cooperation (site management, cost cooperation, design cooperation), and and be added to the blacklist.
other special matters. If bid-rigging, falsification, or other deceitful actions are discovered, legal responsibilities will be pursued for those
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Supplier Training Supply Chain Risk Management
To strengthen the collaboration within the supply chain and optimize operational efficiency, we employ a variety of
With the deepening globalization of us and the continuous evolution of technology and market demands, the risks faced by supply chains
methods, including e-commerce systems, supply chain management software, and regular meetings, to discuss current
have become increasingly complex and variable. We proactively establish a comprehensive supply chain risk management framework to
performance and future issues with suppliers and communicate our ESG principles. This ensures that suppliers align identify and assess supply chain risks and develop effective response strategies to enhance the resilience of the supply chain for sustainable
with the conduct guidelines advocated by us throughout the collaboration process. development. Our Board of Directors' Risk Control Committee is responsible for guiding and overseeing supply chain risk management
efforts and have formulated the "Risk Control Committee Composition, Responsibilities, and Approval Control Methods." The Committee
Chair convenes and presides over regular quarterly meetings and irregular meetings, and oversee the approval of major commodity and
large-scale supply chain operation transactions.
Highlight
C&D Real Estate continuously carries out engineering inspections during project construction and sales phases, and hire In 2023
third-party inspection agencies to systematically evaluate and inspect various stages of ongoing and on-sale projects.
Regular communications are held with suppliers regarding issues identified during inspections to convey our quality
We revised the "Supply Chain Operation Management Regulations" and "Supply Chain Operation
management and risk control requirements, ensuring timely rectification of issues.
Process Management Regulations," to enhance the management of compliance risks such as
international sanctions and strengthening the assessment of creditworthiness and performance
capabilities for significant non-credit transactions.
Highlight
We strengthened key risk control and international business compliance management, enhanced
audits of business rationality and compliance, paid attention to the authenticity of business
backgrounds and sources, and set stringent controls in the ERP system for new businesses (involving
new clients, new varieties), to review business source documentation.
The Credit Management Department and authorized departments evaluated credit customer
risk information collected from the E-Zhangxin platform and other online channels, to issue a
"Significant Risk Warning Letter" for clients with significant risk anomalies. Operational units were
开展供应链运营业务风险防范大练兵、二级运管培训、运管沙龙交流、外部讲师专题
tasked with designating personnel to promptly implement and provide feedback on risk warning
培训等供应商风险管理培训和宣导，提升公司员工整体供应链风险管理意识。
information and "Significant Risk Warning Letters" issued by the Credit Management Department.
Annually, we organize relevant personnel to visit brand factories for learning exchanges, study advanced production
We conducted supply chain operation business risk prevention drills, second-level operation
processes and engage in deep communication with brands. In 2023, Macalline hosted a supplier conference that
management training, operation management salons, external lecturer specialized training, and
specifically recognized suppliers who demonstrated exceptional resilience in the face of challenges, provided additional
other supplier risk management training and advocacy to enhance overall company employee
value to the company, or made key contributions to specific projects. This further solidified the cooperative relationship
awareness of supply chain risk management.
with suppliers and motivated all suppliers to continue striving for excellence in the future, working together with the
company towards achieving higher business objectives and long-term sustainable development.
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Product Quality Management Customer Rights Protection
We always regard product quality management as the core of its business development, committed to providing responsible products and Excellence in customer service is key to winning market competition and customer loyalty. We continually enhance our customer service
services. By establishing strict quality control processes, we ensure our products and services meet the highest industry standards and system, committed to providing timely and comprehensive services. Simultaneously, we actively incorporate customer feedback to
ethical codes, committing to the safety of its products and services. continually improve service processes and product quality, effectively protect customer rights and establish long-term and stable trust
relationships.
We place a high emphasis on customer satisfaction, actively conduct core customer visits, and standardize
In supply We adhere to the principles of "professionalism, efficiency, quality, and integrity," with product quality
customer satisfaction surveys. We gradually advance customer grading, classification, and customized
management at the core, parts of our supply chain operation have been certified by the ISO9001 quality
chain service management across our units, proactively collect service cases, continuously optimize service
management system, ensuring every link from procurement to product delivery meets the highest quality
operations processes, and perfect the service chain to ensure customer needs are met promptly. We continually
standards.
conduct customer satisfaction surveys among upstream and downstream customers, focus on trends
In supply
in supply chain service needs, process satisfaction diagnostics, and insights into servitization and
chain systematization demands. The survey covers our main business models, including domestic trade,
operations import/export, and re-export trade, employing a combination of qualitative interviews and quantitative
We adhere to the "quality first" principle, strictly comply with national questionnaires. We visit multiple strategic partners and collect questionnaires from customer departments
laws and regulations. We have established and perfected systems such responsible for procurement, sales, finance, logistics, and documentation. Upon project completion, around
as the "Project Operation System," "Project Full Cycle Guide Manual," four core customer service management areas—service monitoring, demand management, standard
"Design Work Standards," "Display Area Work Standards," "Handover management, and guarantee management—we continually improve customer satisfaction through internal
Work Standards," "Project Operation Inspection and Evaluation management optimization, enhancement, and service capability building.
Standards," to implement a standardized quality management system.
In real estate We established the "9A Delivery System," and hire professional third-
party companies to conduct comprehensive inspections of projects we practice the "customer-centered" and "dedicated service to customers" business philosophy, strictly
operations
from the customer's perspective before delivery. They conduct checks adhere to the standards of 30-minute response, professionalized service, and customer satisfaction.
on promise consistency, product comfort, external acceptance and Through immediate callbacks for customer reports and repairs, regular surveys, and internal assessments,
progress, facade appearance, one-room-one-inspection, public area we continuously monitor and optimize service quality. Customer research is conducted annually through
takeover risk inspection and leakage prevention, appearance, hollowing/
third-party surveys, internal milestone customer surveys, and daily instant surveys, to reach customers from
cracking special inspections to ensure high-quality product delivery.
multiple perspectives to collect their opinions and suggestions and ensure continuous improvement of
C&D Real Estate, C&D Property, and Lianfa Group under us have all
products and services. Third-party research companies conduct monthly customer satisfaction surveys via
been certified by the ISO9001 quality management system.
phone calls, covering 10 indicators including overall evaluation, product metrics, and service metrics.
In real estate
operations Regarding customer complaints, a systematic complaint handling process and straightforward complaint
channels have been established. Customers can file complaints through national service hotlines, the
Macalline has set standards for renovation projects such as the "Seven Management Standards for Diamond Club APP's online channels, customer relationship hotlines, customer ambassador WeChat,
Construction Sites," "Construction Site Quality Inspection Sheet," "Internal Pre-handover and Construction and property consultant WeChat, among other offline channels. Upon receiving a complaint, we contact
the customer within 2 hours to formulate a plan (within 24 hours for major complaints) and resolves the
Macalline Site Handover Work Regulations," "Quality Assurance Nine Prevention Projects," "40 Exclusive Processes
for Luxury Houses," and conducts strict inspections of products to ensure that home products not only complaint within 3 days, and conduct a satisfaction callback within 48 hours of resolution. Monthly, we
meet customers' aesthetic expectations but also reach the highest standards of durability and safety. The analyze complaint volumes, trends in common issues, and complaint resolution statuses, urge relevant
company’s home renovation department has been certified by the ISO9001 quality management system. departments to improve, and ensure swift and effective handling of every customer feedback.
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Information Security Protection
Macalline upholds a "customer-first" service philosophy, dedicated to providing customers with
one-stop, comprehensive home solution services. The company establishes long-term stable We place a high priority on information security protection, strictly adhere to laws and regulations such as the Cybersecurity Law
customer relationships, promotes the continuous development of the home business, and enhances of the People's Republic of China, the Data Security Law of the People's Republic of China, and the Personal Information Protection
brand reputation. The company values every customer service opportunity and offers professional
Law of the People's Republic of China. We are committed to maintaining cyber and network security by continuously enhancing
consultation and design solutions before sales, quality products and considerate services during
our information security management system, improving our information security management level, and ensuring the security of
sales, and comprehensive after-sales support and assurances to satisfy every customer need.
corporate information. In 2023, we introduced a "Cybersecurity Management System" to further specify the main objectives and
For customer complaints, multiple channels have been established, including on-site mall reception, basic requirements of cybersecurity work, implementing comprehensive management measures such as information system security
Macalline assurance, information content security, terminal host security, routine network maintenance, emergency handling of security
400 hotlines, and official Weibo, providing full-scale online and offline complaint acceptance. After
complaint acceptance, coordination among the group, malls, and merchants ensures timely feedback incidents, and comprehensive security awareness training for all employees. Parts of our information systems have passed level 2
to customer appeals. All customers shopping in the mall are subject to random surveys, measuring and 3 certifications for graded protection.
service experience, delivery installation, product quality, and mall environment across four
dimensions to understand the comprehensive pre-sale, sale, and after-sale shopping experience.
Final results are fed back to the malls for review and comparison, with each mall focusing on areas
of improvement to continuously enhance reputation across various dimensions. In 2023, customer
satisfaction reached 95.92%. Information Security Management Structure
Our cybersecurity work leadership group oversees, guides, and supervises information security management work, led by the
Deputy General Manager with the General Manager of the Digital Center as the deputy leader. This group is responsible for
formulating basic information security management systems, improving the information security protection system, decision-
making on significant information security management issues, network security assurance and early warning monitoring,
and organizing information security inspections and follow-up rectification supervision. Information managers or specialists
from subsidiaries serve as cybersecurity liaisons, executes cybersecurity management regulations and measures, inspects
and reports cybersecurity risks, and implements rectifications, as well as enhance employee awareness and skills in network
security. Annually, we set information security goals and benchmarks, assessing department personnel through self-evaluation
and superior evaluations. Subsidiaries formulate information security benchmarks aligned with their business realities,
incorporating information security performance into the annual assessment of responsible personnel. We also encourage
employees to report any information security issues to their direct leaders or relevant departments.
In 2023, we built a network security situation
awareness system, addressed over 500
2023
security threats involving more than 350
Addressed over Involving more than
terminal devices, effectively preventing virus
spread within the network from infected 500 security threats
350 terminal devices
computers. We have established a network
access control system, enhanced access Covered Served over
control, covered 90 remote sites, and served
over 2,600 users.
90 remote sites
2,600 users
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Information Security Emergency Management Information Security Education and Training
We have established the "Emergency Response and Management Measures of Network Security Incidents," creating a We employ multiple channels and forms of publicity and
training to disseminate information security knowledge among
scientific, effective, and rapidly responsive emergency mechanism. It specifies the emergency response procedures for
all employees, enhance their awareness and ensure the deep
information security incidents that could cause significant or major harm to the company. In such cases, the incident must be
understanding and implementation of our information security
reported immediately to the information security leadership team, and effective technical measures must be taken promptly
policies. Through internal network postings, corporate WeChat
to address and manage the sudden information security incident. After the incident has been handled, a timely analysis and
mini-programs, and E-learning platforms, we share cases of
summary are conducted to report the causes, handling, improvement measures, and other relevant details, ensuring that
network security incidents and personal cyber hygiene with
corrective actions are implemented. We regularly organize emergency drills, including at least once a year data recovery
employees. In collaboration with C&D Group and professional
verification and emergency drills for information systems classified under "graded protection" levels two and three, to security vendors, specialized training sessions on the evolution
continuously enhance our ability to handle information security incidents. of network security architecture and security strategies during
In 2023, we conducted cyber security attack and defense drills to continuously improve our capability to handle cybersecurity 2023 the development process are provided for those directly
responsible for our network security. We actively participating
emergencies. We invited attack teams from third-party national-level cybersecurity firms to simulate real attack and defense
in Xiamen City's Cybersecurity Week, organize extensive
scenarios, performing security tests on our information systems and conducting phishing email tests on employees. Through Information security education and training sessions training for employees, especially those responsible for network
6
these attack and defense exercises and debriefings, we objectively assessed our level of security protection, raised employees' security, in cybersecurity awareness and technical skills. In 2023,
times
awareness of security precautions, and effectively enhanced the overall coordination and level of our network security we organized 6 information security education and training
defenses. sessions.
Customer Privacy Information Protection
Information Security Supervision and Inspection
Recognizing the sensitivity and importance of customer information, we
2023
Our strengthens information security supervision and inspection strictly adhere to relevant laws and regulations, implementing stringent
through regular network security checks and commissioning measures to ensure the security and confidentiality of all customer data. All
third-party institutions for IT audits, aiming to prevent and new employees undergo training related to data and company information
Information system security checks
address information security risks. confidentiality, are required to strictly prohibit the disclosure of customer
20 times information, and sign confidentiality agreements, thereby strengthening
their awareness and responsibility towards protecting customer privacy. We
In 2023, we conducted 20 information system security checks,
14 penetration tests, 342 vulnerability scans, identified and have developed a "Privacy Statement" in accordance with the Cybersecurity
Penetration tests Identified and addressed over
Law of the People's Republic of China, the Regulations on the Security
400
addressed over 400 high-risk vulnerabilities, automatically
intercepted over 50,000 network scanning attacks, zombie 14 times high-risk vulnerabilities Protection of Computer Information Systems, the Personal Information
Protection Law, and other applicable laws. This statement clearly defines
host connections, and system vulnerability attacks, effectively
identified and addressed information security risks. We also Intercepted Network the scope of customer information usage and commits to storing customer
Vulnerability scans
information for the period stipulated by relevant regulations, ensuring that
342
commissioned external professional institutions to audit the scanning attacks over
times
50,000
effectiveness of the internal controls of information systems. customer data is not provided to third parties without legal circumstances
times
or explicit consent from relevant stakeholders.
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Main Industry
Associations Involved
Responsible Marketing
We adhere to the "Regulations on the Management of Retail Promotion Activities," "Anti-Unfair Competition Law of the People’s
Republic of China," "Advertising Law of the People’s Republic of China," and other marketing-related laws and regulations in our
country and region. We insist on honest and transparent information dissemination and communication to ensure marketing
activities truly reflect product features and service quality. In formulating marketing strategies, we always prioritize consumer needs
Forest Stewardship International Sustainability Programme for the Endorsement
and welfare, avoid misleading promotions, and actively advocates for environmental protection and social responsibility.
Council and Carbon Certification of Forest Certification
(FSC) (ISCC) (PEFC)
We are committed to honest and transparent communication strategies to ensure customers accurately
understand the value and characteristics of our projects. We have established "Marketing Work Standards,"
"Marketing Inspection and Evaluation Standards," "Marketing and Customer Relations Brand Tendering
Methods," "Regulations on Clarifying Product Output Content (Trial)," and "Notices on Customer Payment
Refunds and Special Marketing Payment Requirements" to ensure the compliance of marketing activities.
Main Industry Associations Involved
In real estate According to the "Marketing Risk warnings are placed in sales Each cluster independently No. Association Name Position
Inspection and Evaluation scenes, display areas, and model introduces third-party
operations 1 China Federation of Logistics & Purchasing Vice President Unit
Standards," the Group's Market rooms, and all projects display institutions to conduct sales
Modern Supply Chain Research Institute of China Federation of
Development Department unfavorable factors inside and service undercover inspections, 2 Vice Director Unit
Logistics & Purchasing
conducts quarterly compliance outside the red lines prominently. based on the "C&D Real
inspections, the results of Estate 2023 Sales Scene
3 Xiamen Modern Supply Chain Association President Unit
which are used in the annual Service Undercover Inspection 4 China Chamber of Commerce for Import and Export of Textiles Executive Director Unit
assessment of marketing Index," adding cluster-specific
China Chamber of Commerce of Metals, Minerals & Chemicals
managers. requirements for execution. 5 Director Unit
Importers & Exporters
China Chamber of Commerce for Import and Export of Machinery
6 Director Unit
and Electronic Products
7 Xiamen Import & Export Chamber of Commerce Vice President Unit
8 Chamber of International Commerce Xiamen Vice President Unit
China Chamber of Commerce for Import and Export of Light
Macalline has established the "Macalline Home Group Unified Marketing Activity Management System," 9 Director Unit
Industrial Products and Arts-Crafts
created a unified public opinion management mechanism, perfected the planning, execution, summary, and Statistical Society for Foreign Economic Relations and Trade of
Macalline 10 Director Unit
evaluation of marketing activity schemes, and continuously conduct compliant marketing training to ensure China
China Chamber of Commerce of I/E of Foodstuffs, Native Produce
orderly and compliant marketing activities across all units. 11 Member Unit
and Animal By-products (CFNA)
12 China Property Management Institute Director Unit
Vice President Unit
13 Fujian Province Estate Management Association
Executive Director Unit
14 Xiamen Property Management Association Vice President Unit
Support Industry Development 15 Integrity Promotion Association of Xiamen Executive Director Unit
16 Xiamen Emergency Management Association Member Unit
We maintain an open cooperation attitude and a commitment to sustainable development, actively participate in international China Association of Highway and Waterway Engineering
17 Executive Director Unit
environmental cooperation frameworks and initiatives, strengthen close cooperation with industry partners, share corporate and Consultants (CAHWEC)
industry experiences and achievements, and jointly promote high-quality development in the industry. 18 The Civil Engineering and Architecture Association of Fujian Chair of Supervisors Unit
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Highlight
People
In September 2023, the "2023 4th China Supply Chain Management Annual
We firmly believe that talent is the key force driving sustainable development. Thus, we adhere to a people-oriented philosophy,
Conference" and the "2023 National Supply Chain Management Excellent
focus on the growth of every employee and strive to create a fair, just, and inclusive work environment. This ensures employees have
Achievements Exhibition," guided by the Ministry of Commerce, co-hosted by
the China Federation of Logistics & Purchasing and the People's Government of access to decent, dignified work opportunities, making talent a ceaseless driver of our sustainable growth.
Xiamen, were held in Xiamen. We showcased its professional operations, global
layout, and dual empowerment and support experiences and achievements to
the attending leaders and guests in a scenario-based, immersive multimedia
format. We were awarded the "5A-level Supply Chain Service Enterprise"
certificate during the Supply Chain Innovation and Development Conference held
simultaneously by CFLP.
Human Rights Protection
Highlight We respect the “International Bill of Human Rights”, follow the “United Nations Guiding Principles on Business and Human Rights”,
the “Universal Declaration of Human Rights”, and the International Labour Organization's “Declaration on Fundamental Principles
and Rights at Work”, among other internationally recognized human rights standards and guidelines. We strictly comply with
national laws and regulations to protect and support employee rights. To promote the implementation of human rights protection,
In April 2023, the "China Steel Overseas Development Forum," co-hosted by we have established a "Human Rights Policy" and an "Anti-Discrimination and Anti-Harassment Policy," respect and protect the
Changfuli (Xiamen) Company and Shanghai Ganglian E-commerce Company, rights of employees, suppliers, community residents, and others potentially impacted by our operations. For potential human rights
was held in Xiamen. The forum provided in-depth interpretations of topics impacts and risk areas in its operations, value chain, and new business relationships, we establish communication mechanisms with
related to the Chinese steel industry's "Overseas Steel Capacity Layout," local communities, employees, government agencies, investors, and other stakeholders to regularly identify potential human rights
"Overseas Mineral Resource Development," "Overseas Infrastructure Steel risks, and focus on vulnerable groups. We conduct training on human rights protection for employees and contractors to ensure the
Demand," and "Steel International Trade Hotspots," collectively anticipating implementation of human rights policies and prevent related risks. In 2023, there were no incidents of child labor, forced labor, or
the opportunities for China's steel industry's overseas development. human trafficking in violation of human rights policies across the company's global operations.
Highlight Equal Employment
We comply with “the Labor Law of the People's Republic of China”, “the Labor Contract Law of the People's Republic of
China”, and employment laws and regulations in other countries and regions where we operate. We insist on compliant
In April 2023, the 2023 China Pulp Summit (7th Edition), organized by
employment, fair employment, equal pay for equal work, and commit to a minimum wage standard not lower than legal
the China Paper Association and hosted by Xiamen C&D Pulp & Paper
Group, was successfully held, attracting more than 600 industry leaders, requirements. We strictly prohibit and resist all forms of forced labor, child labor, slavery, and human trafficking, creating
entrepreneurs, economists, and academic scholars. The summit facilitated an equal, inclusive, and diverse work environment. In various employment activities such as recruitment, placement,
industry exchanges, consolidated development consensus, and over six years assessment, and promotion, we do not discriminate based on race, religion, gender, age, sexual orientation, disability,
has gained recognition and praise from all sides of the industry, becoming an
nationality, cultural background, etc., ensure equal pay, benefits, and employment opportunities for female employees
important summit for promoting industry exchange.
and qualified disabled employees, oppose any potential employment discrimination.
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Employee Composition by Nationality Management Composition by Gender
● Recruitment Management
We have established human resource management regulations 28.56%
like the "Human Resource Management Regulations,” to insist
on compliant recruitment and set policies for avoiding conflicts
of interest to eliminate recruitment violations. We respect 0.12%
the dignity of every candidate, clearly defining interview,
71.44%
assessment, background check, and hire approval processes for
various positions, make hiring decisions based on professional
99.88%
qualifications, personal skills, and overall quality to ensure a
fair and consistent recruitment process for all candidates and
■ China ■ Others ■ Male ■ Female
encourage mutual selection.
Employee Composition by Gender Employee Composition by Age
7.05%
● Exit Management
38.02% 30.01% We have established exit management processes in strict accordance with legal requirements. Upon an employee's
61.98% expression of intent to resign, we arrange for the employee's department head, direct supervisor, and HR personnel to
conduct exit interviews to understand the reasons and demands for resignation. For high-potential talent, core business
62.94% personnel, or management staff, we actively coordinate internal communications for retention. Monthly employee
turnover statistics and analyses are conducted to monitor employee stability.
■ Male ■ Female ■ Under 30 ■ 30-50 ■ Over 50
Employee Composition by Function
4.80% 3.21%
6.19% Anti-Harassment and Anti-Bullying
We are dedicated to fostering a diverse and inclusive work environment, eradicate any form of harassment and bullying.
18.66% We prohibit any kind of violence, insult, defamation, or behavior that disrupts social order, including but not limited
to actions, speech, or practices that infringe upon others' dignity and freedom. Misuse of authority or interference in
67.14% employees' affairs through improper means is forbidden, with a stance against bullying and harassment, ensuring every
employee respects individual rights and freedom while fostering a sense of belonging within the collective, enjoying a
dignified workplace.
■ Management ■ Business ■ Technical ■ Financial ■ Administrative
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Employee Complaints and Protection Employee Development
For behaviors suspected of violating the "Anti-Discrimination and Anti-Harassment Policy," we outline channels for public
2023
We have implemented the "Compensation and Benefits Management Regulations," and
complaints or appeal in the "Human Resource Management Regulations." Employees are encouraged to submit complaints or commit to provide employees with competitive compensation and benefits. We value
the total duration of
appeals to the HR department, the company union, or escalate them directly to related functional departments or even top training and personal development, adhere to the principle of appointing the virtuous
employee training in our company
management, with the responsible department organizing an investigation and providing a response within five working days. and providing ample career development opportunities and learning resources. For
amounted to
individual development, we have established "professional + management" dual career
2,138,972
We assure that all victims or complainants' information will be protected to avoid retaliation. We safeguard the implementation
paths, adhering to the principle of promoting the capable, rewarding the excellent, hours
of the anti-discrimination and anti-harassment policy through strengthening internal management, establish oversight bodies,
demoting the mediocre, and dismissing the incompetent, to fully stimulate organizational
publicize complaint and appeal channels, conduct effective training, and guide and standardize employee behavior to maintain
vitality and provide a platform for employees to realize their personal value.
a positive corporate culture and work atmosphere.
If you suffer from File a complaint through our The person in charge will If the investigation Employee Compensation and Benefits
discrimination or union or HR department, immediately initiate an results confirm suspected
harassment, or witness or report to our complaint investigation and provide discrimination or
We strictly follow laws and regulations such as the Labor Law of the People's Republic of China and the Labor Contract Law, and
someone else being acceptance email, providing necessary reassurance to harassment, necessary
establish "Human Resources Management Regulations," "Compensation and Benefits Management Regulations," and "Rewards
disciplinary measures will be
discriminated against or relevant evidence. the victim and their family. and Penalties Management Regulations" to ensure employees' working hours, including special periods for female employees
taken against the involved
harassed. (breastfeeding, pregnancy, and maternity), and work environment meet legal requirements, with salary levels not lower than the
employee, inaccordance
minimum wage standards mandated by laws and regulations.
with our internal policies
and relevant laws and
regulations.
● Compensation Performance
We have established a compensation structure centered on salary, supplemented
Management personnel
by allowances, bonuses, and benefits. We regularly monitor and evaluate market
Performance is assessed through
Democracy and Freedom trends and industry levels to review the reasonableness of compensation settings,
ensuring employees are offered competitive and fair compensation and benefits. A business evaluations, personal
scientific and diverse performance evaluation system helps employees understand reporting, democratic evaluations,
We emphasize communication with employees, respect the democratic rights and freedom granted to employees by the work targets and expectations, evaluating their performance, capability, and and interviews.
constitution and laws, and clarify the related basic rights employees enjoy in the "Human Resource Management Regulations." attitude during the assessment period, identifying weaknesses, and providing
We encourage employees to express diverse opinions and ideas, contribute their wisdom to our sustainable development. guidance and support. This aids in planned work improvement and serves as
We actively implement collective bargaining and mediation mechanisms, legally establish unions, regularly convene employee an objective basis for decisions on rewards, promotions, and appointments. Other employees
representative assemblies, and formulate the "C&D Union Federation Management Regulations" to regulate the union's Performance assessment indicators related to sustainable development topics
Performance is assessed through
daily operations, ensuring employees' rights to information, participation, management, and supervision. In 2023, our union like innovation, risk management, safety production, and quality improvement are objective management, setting
representatives reviewed and signed three collective contracts covering a range of employment agreements on salary systems, integrated into departmental and employee performance assessments, motivating work targets and metrics, and
minimum wage, social insurance, working hours, safety production, occupational environment, and the protection of women employees while ensuring effective implementation of sustainable development evaluating and providing feedback
employees' rights, extending the collective contract's coverage to 100% of our employees. policies. on outcomes.
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● Equity Incentive Highlight
Equity Incentive Grant Ratio
Lactation Rooms
Through equity incentive plans, we have established
medium- and long-term incentive mechanisms for directors, We provide a lactation
senior management , middle management , and key
personnel to attract and retain talent, motivating them to 4 %
room for female
96
employees, equipped
align shareholder, company, and individual interests towards
% with water dispensers,
high-quality, long-term development. By the end of 2023,
refrigerators, sofas, etc.
1,359 incentivized individuals held a total of 168,769,300
restricted shares, with middle management and key
personnel (1,349 individuals in total) holding 161,669,300
■ Middle Management and Key Personnel
shares, accounting for 96% of the incentive shares.
■ Directors and Senior Management
Highlight
1,359 incentivized individuals held a total of Middle management and key personnel held
Economic Assistance
168.7693 million restricted shares
161.6693 million restricted shares We have established a group aid fund to provide necessary economic assistance to employees (or their
spouses, children, parents, parents-in-law, etc.) and retired employees facing family difficulties due to
severe illnesses, major accidents, or severe disabilities, helping them cope with the financial stress caused
by sudden events or major diseases.
● Employee Benefits
We care for employees' basic needs in aspects such as physical and mental health,
serious illness medical care, working conditions, family care, and breastfeeding and
2023
parenting, and have established a long-term welfare plan. In addition to the statutory Talent Quality Cultivation
benefits of the "Five Insurances and One Fund," we have also set up a corporate The total duration of paid
annuity system, purchased group commercial insurance for employees (including parental leave taken by
We continuously enhance and enrich our talent cultivation system and create a proactive learning
overseas insurance), and provided various subsidies such as official travel, housing, employees amounted to
organization. We have established an employee training system comprised of capability frameworks,
4,787
remote work, communication, professional title/certification, lecturing, part-time
work, management trainee, high temperature/cold weather, missed meal, holiday, and days course systems, instructor systems, operation systems, and learning platforms. Training content includes
special position allowances (e.g., night shift). Additionally, diverse welfare benefits like basic business training, specialized training, risk prevention series training, new employee boot camps,
health management and union team-building activities are offered. Beyond statutory business backbone series training, and mid-to-senior-level management training. A specialized training
holidays, we provide employees with annual leave, marriage leave, maternity/paternity center is set up at our headquarters, with numerous training plans formulated to provide employees with
leave, accompanying leave, parenting leave, breastfeeding leave, bereavement leave,
various training opportunities, and enhance their professional skills, international perspectives, and risk
sick leave, personal leave, etc. The duration of these leaves is adjusted based on the
control awareness. Additionally, we organize internal competitions annually based on talent needs in
employee's tenure at the company and national laws and regulations to accommodate
different needs. Employees are encouraged to take their annual leave as per critical positions and new units, and offer new career development opportunities for employees. For those
regulations, and salaries for annual leave, marriage leave, paternity leave, bereavement who are unsuitable for their current positions but display good performance and quality, HR departments
leave, breastfeeding leave, etc., are paid at the regular working salary rate. In 2023, the at all levels actively seek other internal development opportunities, to ensure the right fit for both position
total duration of paid parental leave taken by employees amounted to 4,787 days. and person and provide a platform for continuous learning and improvement.
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Highlight Highlight
Young Cadres Growth Community "Youth Gathering" – Cheung Kong Graduate School Business Study Class Management Skills Enhancement Series Training Phase III Project
In 2023, we launched 13 training Focused on corporate culture,
sessions totaling 33 hours under the professional integrity, team
"Young Cadres Growth Community management, and role transition
C h e u n g Ko n g G ra d u a t e S c h o o l themes, this project provided 54
Busine ss Study Class" and "Late hours of offline training for 167 newly
Night Knowledge Hall," involving 67 appointed management backbone
employees from the supply chain personnel. It aimed to build a
operation business domain. The aim workforce with a high cultural identity,
was to enhance the comprehensive good professional ethics, efficient
quality and capabilities of young collaboration capabilities, and strong
c a d re s , c u l t i va t i n g o u t s t a n d i n g adaptability, thereby enhancing our
management and leadership talent for overall competitiveness and sustainable
our development. development capability.
Highlight Highlight
Peking University Guanghua School of Management – C&D Management Cadre Learning Project C&D Real Estate Management Trainee "Flagship Employee" Training Project
This training was designed to
In 2023, we initiated a 3-day thematic
accelerate new management trainees'
l e a r n i n g p ro j e c t o n i n ve s t m e n t /
understanding of our overall situation
industry chain/internationalization
and culture, assisting in their transition
for official cadres in the supply chain
from "campus individuals" to "C&D
operation business, with 63 employees
personnel." The project focuses on
participating in learning and industry
corporate culture, product concepts,
visits at Peking University Guanghua
and business fundamentals, the
School of Management. The short-term
curriculum centered on cultural
courses and seminars aimed to help
integration through lectures, executive
employees update their knowledge and
sharing, project visits, team-building,
improve their skills.
knowledge competitions, and more,
guiding trainees to perceive and learn
the company culture.
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Highlight School-Enterprise Collaborative Cooperation
"E-Learning" Online Training Platform
We continue to deepen our relationships with educational institutions, expanding our network of cooperative colleges and universities year
by year, thereby strengthening mutual understanding, connection, and trust among us, universities, and students. We actively explore and
Our "E-Learning" online training platform offers high-quality online
2023
establish new models of school-enterprise collaboration under the perspective of integration of industry and education, creating practical,
educational resources, with courses categorized by themes such as
effective, and feasible new paths for talent development. Currently, we have signed school-enterprise cooperation agreements with multiple
macro trends, financial empowerment, overseas markets, industry
institutions, including Peking University, Xiamen University, Dalian Maritime University, Ocean University of China, Fuzhou University, Jinan
insights, leadership area, international exchange rates, and cutting- "E-Learning" platform had launched
University, Nankai University, Central University of Finance and Economics, and University of International Business and Economics. In 2023,
edge information. Employees can choose appropriate courses
based on job requirements, rank, and personal interests for self-
90 online courses to meet the development needs of key regions such as Southeast Asia, South America, Europe, and Africa, the company strengthened
its overseas recruitment channels through campus, headhunting, and website channels, supporting units at all levels to recruit foreign or
directed learning. By the end of 2023, the "E-Learning" platform With a total of expatriate talents. Simultaneously, we continue to accumulate overseas employment experience, continually research employment policies
had launched 90 online courses, with a total of 306,218 participants,
averaging 3,402 learners per course.
306,218 participants
and talent environments in key areas, perfect the overseas employee commercial insurance system, and safeguard employees' overseas
endeavors.
Highlight
Hong Kong Campus Recruitment
Employees with an international perspective
from campus recruitment are crucial for
supporting our future business innovation
and success. With our high degree of
o p e n n e s s a n d e co n o m i c v i t a l i t y, t h e
Guangdong-Hong Kong-Macao Greater
Bay Area attracts a large pool of young
talents. We chose Hong Kong as our first
overseas recruitment station, where the
recruitment team collected resumes from
nearly 600 students from the University of
Hong Kong, Chinese University of Hong
Kong, City University of Hong Kong, Hong
Kong Polytechnic University, Hong Kong
University of Science and Technology, and
others in 2023.
Hong Kong Campus Recruitment
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Highlight Highlight
"Lift Yourself" Summer Internship Program Integration of Industry and Education
Based on an open, inclusive, and diversified philosophy, we regularly conduct the "Lift Yourself" internship program
We have established long-term cooperative relationships with domestic colleges and vocational schools, such as Fujian
during the summer, open to students worldwide without restrictions on nationality or major. In this program, each
Shipbuilding Industry School, Xiamen Technician College, Fujian Water Conservancy and Electric Power Technical College,
intern is paired with a mentor for one-on-one systematic training and extended activities, including capability practice
jointly advance the construction of "C&D classes," improve the evaluation methods for industrial workers' skills, and
and site visits. We record, evaluate, and assess interns' performance during the internship. Qualified and outstanding
carry out vocational skill level certification for "automobile maintenance workers" with C&D. In 2023, over 150 technical
interns may receive campus recruitment opportunities at the end of their internship, along with the chance to become
position interns were accepted, and more than 50 were employed. The teaching reform case developed in cooperation
campus recruitment ambassadors and internal referral qualifications, plus generous referral bonuses provided by us.
with Fujian Shipbuilding Industry School—"Research and Practice of the '123' Innovative Talent Cultivation Model Based
In 2023, students from Tsinghua University, Fudan University, Renmin University of China, Xiamen University, Central
on School-Enterprise Cooperation"—was selected as a typical case for the "Double Hundred Plan" of school-enterprise
South University, Beijing Foreign Studies University, Central University of Finance and Economics, and other universities
cooperation by the Chinese Society of Higher Education in 2022.
participated in our program.
"Lift Yourself" Summer Internship Program
Integration of Industry and Education
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Occupational Health and Safety Safety Management Institution
We establish a Safety Management Committee as the institution responsible for work safety management. The committee
We adhere to the policy of "safety first, prevention-oriented, and comprehensive management," establish the concept of "safety
is chaired by the CEO, with Deputy General Manager and managers of key safety units serving as vice-directors. A
service operation, and management closely follows the strategy," and prioritize production safety and employee health. Through
three-tier safety management structure is established and tailored to the diverse nature, formats, and primary risks of
discussion, we have formulated the "Occupational Health and Safety Policy", which was approval by the Workers' Congress and the
each unit. Safety responsibilities are divided among key safety units, general safety units, and safety supervisory units,
Chairman of the Board. We have further refined and implemented internal regulations such as the " Regulations on Work Safety
ensuring comprehensive implementation of the "all-staff work safety responsibility system" and hierarchical accountability
Management," " Regulations on Reporting Sudden Events and Major Matters concerning Safety and Stability," " Training System
for safety. The Chairman and senior management are accountable for major accidents, and the compensation of the
for Work Safety Education," " System for Identifying and Treating Hidden Dangers," " Methods for Managing Safety in Large-scale
management is linked to the safety performance of their respective units.
Events," and " Regulations on Security Management of Overseas Institutions and Personnel." We were committed to minimizing
occupational health and safety risks in our operations and ensuring the occupational health and safety of our employees. Meanwhile,
we encouraged suppliers to establish sound systems for occupational health and safety protection through the "Supplier Code of
Conduct," specifying specific preventive measures to reduce the occurrence of occupational diseases or work-related accidents,
and safeguarding the health and safety of our employees to ensure that they enjoy the same rights to occupational health and
Safety Management Committee and
safety as stipulated in the "Regulations on Work Safety Management." In 2023, we revised the " Guidelines for the Construction
Permanent Office
of Work Safety Management System," referring to international standards such as ISO 45001 and OHSAS 18001, continuously Key Safety Units
improving the occupational health and safety management system. By identifying, assessing, and managing occupational health
and safety risks in the process of business development, we established a dual preventive mechanism for graded control of safety
risks and investigation and treatment of hidden dangers, and conducted regular reviews and supervision to continuously improve Units with Primary Responsibility General Safety Units
occupational health and safety management and work standards. In 2023, our production subsidiaries obtained ISO 45001
certification for occupational health and safety management system, and no personnel deaths or major work safety accidents
occurred throughout the year. Safety Supervision Units
Safety Site Units
Safety Management Structure
In 2023, we signed 1,103 safety responsibility agreements
2023
with all safety responsibility units and 284 agreements
with outsourced units (partners, contractors, suppliers,
We signed with all safety responsibility units
tenants, construction contractors, etc.), achieving a
coverage rate of 100%. We set occupational health and 1,103 safety responsibility agreements
safety management objectives in 2023 work safety
plan, conducting quarterly assessments of work safety
Achieved a coverage rate of
objectives for each department and reporting the results
at safety meetings. The results of work safety assessments 100 %
were linked to the compensation and performance of
relevant personnel and management.
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Safety Risk Prevention and Control Highlight
"Smart Firefighting" System
We have formulated the "Work Safety Risk Classification Management and Hidden Danger
Investigation and Control System " determining and implementing graded risk control for major
2023
In the C&D Xi Yue project in Xiamen, C&D Property employs smart firefighting and water supply and drainage systems to ensure the
hazards. To improve workplace safety and reduce injuries and accidents, we have identified gas, Identified a total of
continuous safe and efficient operation of firefighting pipelines, domestic water supply networks, and key equipment. This system
325
elevators, high-rise firefighting, and hazardous operations (such as hot work, confined space
hazards can real-time monitor the operation data of key facilities and equipment in the project, including water tank levels, pump operation
work, work at heights, and temporary electrical work) as core risks. We have established control
status, pipe network pressure, equipment room temperature and humidity, as well as the status of fire alarm hosts. Additionally, through
systems and management guidelines such as the "Elevator Safety Management System," "High-
Formulated the intelligent early warning mechanism of this system, C&D Property can detect abnormal situations in advance and deal with them
rise Building Fire Safety Management System," "Gas Safety Management System," and "Hazardous
864
promptly, ensuring the normal operation of key facilities and equipment while reducing safety risks.
Operations Safety Management System," and urged all units to implement them. Each of the key control measures
safety units, in accordance with their own business characteristics, conducts hazard identification
work. Using the LEC method, they classify risks specific to their respective business types (such
as container risks, warehouse risks, risks in automobile dealerships, etc.) and formulate control
measures, conducting regular training and inspections. In 2023, we hired experts from the
Xiamen Emergency Management Association to assist in hazard identification and control work, Highlight
identifying a total of 325 hazards and formulating 864 control measures, all of which have been
posted on important risk notification cards.
Smart Elevator Management System
The C&D Xi Yue project in Xiamen has implemented a Smart Elevator Management System, which not only reduces energy consumption
but also enhances safety management levels. This system can monitor the temperature of elevator machine rooms and remotely control
ventilation fans and air conditioning as needed. Utilizing the AI capabilities of elevator cabins, it accurately identifies safety hazards
Highlight
such as the entry of electric vehicles into the elevator and prolonged elevator blocking, issuing timely warnings to ensure the safety and
Engineering Emergency Reporting and Handling Mechanism convenience of residents. Furthermore, the system can detect water flooding in the elevator pit and immediately issue warnings upon
detection of anomalies, effectively preventing potential risks.
In the real estate business, regarding engineering emergencies, C&D Property has formulated and continuously revised the "Engineering
Emergency Reporting and Handling Mechanism" to strengthen the management process of engineering emergencies, standardize the
reporting and handling mechanism, ensure the safety of personnel and property, reduce project operating costs, and achieve effective
closed-loop handling of emergencies. After an emergency occurs, each project must strictly follow the emergency response plan template
for handling and continuously monitor the situation's development, upgrading the response as necessary. Furthermore, each project Highlight
must strictly adhere to the reporting mechanism, with any concealment or omission subject to corresponding penalties. To ensure that
Security Management at Macalline Shopping Centers
employees are familiar with and proficient in the reporting process, each business unit leads the organization of systematic training
sessions.
Macalline is committed to improving workplace safety and continuously optimizing security management in its shopping centers. In
2023, it upgraded the inspection system to version 2.0, extending coverage from originally self-operated stores to all shopping centers
nationwide, with monthly regulatory assessments.
Highlight
"Smart Firefighting" Construction
Our logistics subsidiary has selected Changle Logistics Center as a pilot project to achieve automatic alarm for abnormal electricity usage
by monitoring voltage, current, phase line temperature, etc. Additionally, at Yibin Logistics Center, infrared thermometers were used to
assist electricians in conducting special electrical inspections in key areas. Our automotive group has completed "Smart Firefighting"
construction in the Jiemei and Xiang'an districts, strengthening monitoring of water systems and fire systems through the use of IoT
technology.
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Workplace Safety Inspection ● Real Estate Project Inspection
We actively conduct internal and external safety audits. Our safety committee conducts safety system audits every C&D Property adheres to the safety bottom line of projects, strictly implementing the "Red-Yellow Card Supervision
quarter according to the "Safety Assessment Plan" and applies the audit results to safety assessments to achieve
System," and imposing strict fines on personnel responsible for incidents involving red-yellow cards. We are committed
continuous improvement of the safety management system. Two stores under the logistics subsidiary and automotive
group participate in the standardization rating of work safety. The emergency management department conducts safety to achieving the work safety goal of zero incidents related to fire safety, elevator safety, and personal injury.
audits every 3 years in accordance with the " Guideline of China occupational safety and health management system "
(GB/T33000). In 2023, the safety committee inspected a total of 41 on-site units, discovering and rectifying 103 hidden
dangers, with a coverage rate of 100% for inspection formats. The inspection density of each safety key unit significantly Inspection Methods
increased, with a total of 138 on-site units inspected, discovering and rectifying 989 hidden dangers, and achieving an
inspection coverage rate of 86%. In addition, each on-site unit conducts self-inspection monthly, rectifying a total of C&D Property’s Operations Management Center and Cluster Property Departments are responsible for organizing joint inspections once
1,134 hidden dangers. each year in the first and second halves of the year, as well as conducting periodic spot checks. Business units/companies are required
2023 to carry out safety bottom line supervisory inspections once per quarter, while districts/projects are to conduct safety bottom line
supervisory inspections once per month. For newly added external projects (including new construction), business units/companies must
The safety committee Discovered and Each on-site unit
complete a safety bottom line self-inspection within three months from the project's occupancy date. Except for special approvals, newly
inspected a total of rectified With a coverage rate of rectifys a total of
100
added external projects (including new construction) that do not meet the fire access conditions are not allowed to report existing safety
41 on-site units
103 hidden dangers %
1,134 hidden dangers bottom line issues.
Inspection Content
We cover multiple aspects including fire protection systems, elevator systems, public facilities, operational management,
● Flexible Hidden Hazard Inspection ● Specialized Operation Inspection
and past rectification, ensuring that each safety aspect receives sufficient attention and effective control.
Building upon the initial phase of addressing rigid hazards,
A comprehensive inspection of the qualifications of all
we have identified 14 key risks existing in specialized
company employees engaged in specialized operations was
operations, maintenance of special equipment, hazardous
conducted. We inspected 212 forklift operators, 37 high- Additionally, clear regulations have been established for safety rectification
waste management, and occupational health management.
voltage electricians, 219 low-voltage electricians, 63 welders work: management-related issues must be rectified within 7 working days after
We have organized special task forces in each safety-
and hot cutters, and 132 crane operators in total. The dis- discovered by the relevant department, equipment-related safety issues must
focused unit to carry out targeted actions, resulting in
qualified employees were promptly isolated and rectified. be rectified within 1 month, with a maximum extension of 3 months under
the identification and rectification of a total of 22 hidden
special circumstances. Otherwise, it requires hierarchical review and approval
hazards.
of the General Manager. For safety bottom line issues that cannot be rectified
in a timely manner, the relevant departments must promptly and proactively
inform internally and report to relevant internal and external parties. Within 7
working days after reporting, targeted emergency plans must be developed,
● Gas Usage Inspection
and relevant personnel must conduct at least one drill. Additionally, emergency
plans must be evaluated and revised annually, with drills conducted at least
To address gas safety concerns, we carried out a special governance initiative. Following a thorough investigation, we found that five
semi-annually. If safety bottom line issues reported internally are not rectified
4S stores within automotive group and the liquor company were using gas. Our safety committee allocated a special rectification fund
within the specified time frame, corresponding penalties will be imposed
of 56,000 RMB to the automotive group to converse from gas to electricity, thus eliminating gas hazards at once. Due to operational
according to the human resources reward and punishment system, with
restrictions, the liquor company was unable to cease gas usage but we have re-evaluated and ensured its safety.
quarterly notifications issued.
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● Community Safety Inspection ● Mall Safety Inspection
C&D Property attaches great importance to community safety management. Through the formulation of an annual work Every year, Macalline conducts two rounds of safety risk inspections for all opened malls nationwide, covering 13 items
safety plan, organization of work safety inspections, and conducting training on key points of annual safety hazard including building structures, facilities and equipment, operating booths, decoration booths, vacant booths, cross-
identification, we enhance employees' awareness of safety hazards and their ability to handle them, thereby establishing industry dining, emergency response, and non-business hour control. It implements district-based management for
a solid community safety system. We hold monthly safety meetings to thoroughly review the safety situation of the safety personnel, with each responsible for supervising the safety of malls in their respective districts, achieving full
previous month and plan work safety work for the next month. Monthly online hazard inspections are implemented,
coverage within six months. At the regional level, quarterly inspections and mutual inspections between mall general
utilizing the PMS work order system to ensure comprehensive and meticulous inspections of public areas by the order
managers are conducted. At the mall level, weekly and monthly self-inspections and rectification work are carried out to
and customer service teams. Additionally, self-inspection and self-correction activities are conducted before important
comprehensively promote the identification and rectification of safety hazards in the malls.
holidays such as New Year's Day, Spring Festival, Labor’s Day, and National Day, ensuring work safety during the holiday
period.
In addition, C&D Property strictly adheres to the guidelines of the " C&D Real Estate Property Project Safety Hazard
Inspection Manual". It implements corresponding standards in key safety areas such as fire protection, elevators,
swimming pools, water features, fall prevention facilities (including children's recreational facilities), electric vehicles, and
gas, and provides specific explanations of the potential harm of various safety hazards to enhance safety awareness. To
address two major key issues of high-altitude throwing and elevator safety, C&D Property has taken a series of effective
measures:
Throwing objects from height Elevator safety
Detailed inspection plans are formulated to C&D Property strengthens the quality and safety
comprehensively cover all areas within the level of elevators by implementing bi-monthly
community, with a focus on checking public inspections and intercom communication tests
to ensure safe operation. It promotes safety
areas and monitoring facilities where risks
elevator knowledge and rescues skills through
may exist. Inspection and rectification work
elevator car culture construction and centralized
for strengthening protective measures are
publicity activities, guiding residents to take
intensified, and targeted special inspections
elevators safely and courteously. At the same
are conduc ted. Through educational
time, semi-annual emergency rescue drills for
campaigns, residents' awareness and
elevator entrapment are conducted to enhance
understanding of high-altitude throwing the ability of proper ty management and
are raised to enhance safety consciousness. maintenance units to respond to emergencies.
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Emergency Safety Management Highlight
Fire Emergency Drills in Shopping Malls
In managing sudden production safety incidents, we follow the principle of "quick response and hierarchical reporting ". Work Safety
leaders in each unit report incidents step by step, and in cases of special urgency, they may directly report to the leader of our work safety
In 2023, relying on Fire Prevention Day (April 19th) and
working group or the chairman. Once a sudden incident or accident occurs, the work safety working group immediately initiates relevant Firefighting Day (November 9th), Macalline conducted various
emergency plans, actively conducts accident rescue operations, and ensures that unit leaders arrive at the scene promptly. Effective emergency plan drills and specialized assessments. A total of
measures are swiftly taken to organize rescue efforts, prevent the incident from escalating, and minimize casualties, property damage, or 322 malls nationwide participated in the drills, organizing a total
damage to our reputation to the greatest extent possible. of 14,939 emergency drills, with 147,979 participants. Local fire
departments were invited to participate in 705 mall plan drills,
covering scenarios such as emergency evacuation, firefighting,
elevator entrapment, sprinkler burst, counter-terrorism incident
We have formulated the "Emergency Management Regulations for Work Safety Accidents,"
2023 response, and sudden event response, involving 100% of the
which specifies requirements for contingency plan formulation, team building, material
company's employees. Additionally, the company conducted
Based on the emergency plan
allocation, and drill execution. Each key safety unit, considering its own business characteristics,
system,our key safety units emergency plan drills for malls in 62 cities nationwide, totaling
has developed an emergency plan system for high-risk scenarios such as fire evacuation, safety conducted a total of 124 drills throughout the year, comprehensively enhancing the
16,704
accidents, and typhoons. Periodically, safety fire drills and emergency exercises are organized collaborative emergency response capabilities of shopping malls.
emergency drills
for employees to enhance their emergency response capabilities. Currently, we have developed
29 types of emergency plans and 37 operating standards, covering all aspects of business Organized a total of With a total of
operations. In 2023, our key safety units conducted a total of 16,704 emergency drills based on With a total of
14,939 emergency drills
147,979 participants
158,370
the emergency plan system, with 158,370 participants. The drill themes included scenarios such
participants
as typhoon and flood prevention, fire prevention, falls from height, mechanical injuries, chemical
burns, hazardous material leaks, and heatstroke in high-temperature weather, among others.
Highlight
Emergency Drills for Typhoon and Flood Prevention
To address emergencies such as typhoons, heavy rainfall, and flooding, C&D Property has developed a "Typhoon and Flood Prevention
Plan." Prior to the rainy season, the plan generates specialized inspection work orders through the PMS system, which are then carried
out by various departments and projects. Concurrently, on-site drills for typhoon and flood prevention are conducted to enhance
response capabilities. In 2023, one week before the arrival of Super Typhoon "Doksuri" in Quanzhou, C&D Property issued a typhoon
emergency warning and organized departments and projects to conduct specialized inspections and material preparations according to
the requirements of the typhoon and flood prevention emergency plan. During the typhoon, particular attention was paid to key areas
such as garages, rooftops, equipment rooms, and low-lying areas with regular inspections to promptly identify and address potential
hazards. After the typhoon, quick action was taken to clear fallen trees, remove water accumulation, and inspect facilities and equipment
to restore order to the community as quickly as possible. Despite the impact of the typhoon and heavy rainfall, cities such as Quanzhou,
Xiamen, and Fuzhou experienced urban flooding and fallen trees, C&D Property’s managed projects did not experience underground
flooding.
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Safety Training Education Highlight
Real Estate Construction Safety Training
We attached great importance to employee occupational health and
Conducted training sessions To comprehensively enhance employees' safety awareness and improve safety skills, we organize the development of a series of safety-
safety education, strictly following the requirements of the "Work Safety
and drills with a total of themed courses covering office safety, fire safety, and various professional safety training, etc., and upload them to the " Zhangjianshi
Education and Training System" to provide employees with education
and training in work safety. In order to further strengthen the work
safety for overseas institutions and personnel, we have also formulated
31,321 " learning platform for all employees to study. Each level of operating unit formulates annual training plans based on business
characteristics and actual situations. Through safety knowledge quizzes, firefighting practical competitions, thematic lectures, etc.,
the " Regulations on Security Management of Overseas Institutions and work safety, special operations personnel, office safety, driving safety, and other aspects of safety education and training are provided
Personnel", explicitly requiring sending units to organize overseas safety With a total of
to employees. Before the start of the project, operating units coordinate with supervisory units to strictly supervise construction units,
education and training before personnel are dispatched abroad. In 2023,
the we issued the "Safety Training Outline", covering safety management
373,368 participants ensuring that all incoming construction personnel receive appropriate safety technical measures briefing and pre-job training to prevent
potential safety risks. Additionally, we utilize various promotional platforms such as "Weilianfa" and "Lianfa’s windows" to disseminate
qualification training, new employee safety training, emergency
information on current social hot topics or safety knowledge.
fire training, safety management platform training, work safety Coverage rate among employees
standardization thematic training, CPR certification training, online
occupational health training, etc. In 2023, we and various safety key
100 %
Highlight
units conducted safety and occupational health training in accordance
with the safety training outline and job characteristics, with a total New Employee Safety Training
of 31,321 training sessions and drills conducted, involving 373,368 C&D Property places great emphasis on cultivating and enhancing employees' safety awareness. For new employees, tailored induction
participants, and achieving a 100% coverage rate among employees. task lists are formulated according to different positions, and through a systematic training process, new employees are assisted in
gradually mastering core safety knowledge and skills. Meanwhile, diverse safety training courses are actively organized, covering topics
such as correct operation of pressure relief valves, emergency plans for engineering management emergencies and sharing of typical
cases, dissemination of safety bottom lines with red and yellow cards and case sharing, and the use of engineering safety protective
equipment, aiming to comprehensively enhance employees' safety awareness.
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Highlight Occupational Health Management
Mall Safety Training
We attach great importance to occupational health management of employees, strictly adhering to the " Law of the People's Republic
Macalline implements training for its own employees, business clerks, decorators, catering staff, and third-party personnel. The training of China on Prevention and Control of Occupational Diseases," "Provisions on the Administration of Occupational Health at Workplaces,"
content covers safe electricity use, understanding and mastery of the "four understands and four knows" of fire safety, fire extinguisher and "Classification and Catalogue of Occupational Diseases," continuously establishing and improving occupational health management
usage, decoration management standards, national regulatory norms, commercial warning case studies, and various official document systems. We implement reasonable work schedules and flexible work arrangements, providing employees with online occupational health
notification standards. Additionally, Macalline actively conducts safety publicity work through a combination of online and offline methods training, health check-ups, psychological health assessments, and other services, aiming to provide a safe, healthy, and pleasant working
such as mall bulletin boards, propaganda columns, and micro-pushes, with a total of 3,312 safety promotions conducted throughout the environment. We achieved a zero occupational disease incidence rate in 2023.
year. The safety knowledge dissemination, training, and activities carried out in ongoing projects are divided into regular and irregular
categories. Macalline regularly conducts safety education and training for new workers before they enter the construction site, holds
safety special meetings no less than once a week, and conducts education, training, and publicity activities in line with the theme of
National Safe Production Month in June each year for all employees. Furthermore, Macalline organizes special safety knowledge training
and warning education activities irregularly based on the project situation and on-site safety issues. In 2023, Macalline conducted a total ● Employee Assistance Program
of 10,676 training sessions, with a total of 201,573 participants.
We implement an Employee Assistance Program (EAP), providing employees with a comprehensive, long-term professional mental health welfare
and support program. Through professional diagnosis, advice, guidance, training, and counseling (both we and third-party institutions are
committed to strictly protecting the confidentiality and privacy of the counseling), we help to address the psychological and behavioral issues of
employees and their family members.
●
Provide 24-hour psychological counseling services to facilitate problem-solving and stress relief, effectively enhancing employee work
enthusiasm and life satisfaction in the short term.
●
Equip with an outstanding team of professional psychological counselors, with nearly 600 counselors available for selection.
●
Employees can make appointments for psychological counseling via phone, WeChat official account, and enterprise WeChat. Counseling
sessions are available in both online and offline formats.
● Employee Health Management
We mobilize all employees to participate in online occupational health training, organize annual comprehensive health check-ups for all
employees, including physical examinations, routine tests, and specialized examinations, to ensure timely detection and intervention of
employee health conditions. We provide personalized health advice and guidance to help employees focus on and manage their health
comprehensively.
We operate a cafeteria, providing healthy meals for employees with balanced nutrition to improve the health of the workforce through
dietary regulation. We also establish employee fitness groups, offering various classes such as yoga and swimming to provide fitness and
nutrition knowledge, meet the employees' need for physical exercise, improve their mood and mental state, and foster a positive corporate
culture, thereby fully supporting the overall physical and mental health of all employees.
Subsidiary companies carry out free breast and gynecological disease screenings for female employees in difficult circumstances. They
also collaborate with Baodao Optical and China Minsheng Banking Corp., Ltd. to provide on-site eye health check-up services, enhancing
employees' awareness of eye care.
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● Work Schedule Management
We strictly adhere to the requirements of the "Labor Law of the People's Republic of China" and local laws and regulations
regarding working hours, advocating for a balance between work and life. We generally implement a two-day weekend
system, rigorously control unnecessary overtime, and ensure that employees enjoy statutory rest periods and holidays,
thereby guaranteeing that employees do not work overload within prescribed working hours to safeguard their physical
and mental health. For positions implementing flexible or comprehensive working hour systems, we require relevant
management personnel to report according to policy requirements. Through regulating employee attendance, preventing
excessive overtime, promoting work-life balance, and fostering a healthy and safe working environment.
● Employee Recreational Activities
We regularly organize a variety of recreational activities, such as tree planting, collaborative events for festivals, annual
sports meetings, and employee basketball games. We also construct beneficial physical and mental recreational Highlight
facilities, such as gyms and staff reading spaces like "WE Reading Space," enriching employees' leisure lives and
Cooling and Warming Activities
enhancing collective identity and organizational cohesion.
In real estate operations, we organize "Cooling and Warming Activities" for frontline employees. During hot summers,
we provide cold drinks, sù-kó-thong, and other cooling foods to employees, while during cold winters, we offer
hot tangyuan (glutinous rice balls) and dumplings, ensuring the physical health of employees under high summer
temperatures and severe winter conditions.
103 104
GOVERNANCE
We establish and continuously improve a corporate governance system that is just, responsible,
effective, and inclusive. We consistently enhance the scientific nature and transparency of decision-
making, promote the improvement of risk management systems, and adhere to high ethical standards
in business conduct. We establish fair and positive relationships with all stakeholders, thereby ensuring
sustainable development and long-term value creation.
Governance Performance Targets in 2023 Completion Status
Revise and enhance sustainable development policies and systems
1
in conjunction with business operations and development
Zero significant lawsuits or major administrative penalties throughout
2
the year due to unfair competition practices
100% coverage rate of anti-commercial bribery and anti-corruption
3
training for employees during the year
4 Zero number of tax compliance violations
Disclose the 2023 Sustainable Development Report by May 2024,
5
and report the ESG governance effectiveness in 2023 to stakeholders
Completed In Progress Unifinished
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Governance Appointment of Directors and Senior Management
We integrate sustainable development concepts into corporate
governance and gradually establish a top-down sustainable
for Sustainable development management framework. Under the Board of Directors,
there are various committees including the Audit Committee, the
Development Remuneration and Appraisal Committee, the Strategic and Sustainable
Development Committee, the Risk Management Committee, and
We strictly follow the procedures for the nomination and election of
board members in accordance with the Articles of Association, Rules
We strictly adhere to the procedures outlined in the Articles of
Association and other regulations for the appointment of senior
the Investment and Policy-making Committee. These committees of Shareholders Meetings, and other regulations. Board members management personnel. Senior management personnel cover
provide professional consultation and advice to guide and supervise are elected by the shareholders' meeting. Currently, the board of professional fields including corporate management, financial
ESG (Environmental, Social, and Governance) management work, directors consists of 9 members, including 3 independent directors, management, risk management, etc. Among them, there are 2 female
continuously enhancing our level of sustainable development all of whom hold doctoral degrees, accounting for 33.33% of the total senior management personnel, accounting for 25% of the total
management, and promoting the realization of long-term corporate number of board members. number of senior management personnel.
value.
Professionalism Board Committees
Name Occupation Age Investment
Strategy and
Risk Risk Remuneration and Policy-
Industry Operations Accounting Sustainable Audit
Control and Management and Appraisal making
Experience Management & Financial Development Committee
Compliance Committee Committee Committee
Committee
Zheng
Yongda Chairman 52 ⊙ ⊙ ⊙ ⊙ ⊙ ⊙ ⊙
（Male）
Huang
Wenzhou Vice Chairman 59 ⊙ ⊙ ⊙ ⊙ ⊙ ⊙ ⊙ ⊙ ⊙
（Male）
Ye Yanliu
（Female）
Director 51 ⊙ ⊙ ⊙ ⊙ ⊙ ⊙ ⊙
Zhou
Shaorong Director 48 ⊙ ⊙ ⊙ ⊙ ⊙ ⊙
（Male）
Lin Mao
（Male）
Director&CEO 56 ⊙ ⊙ ⊙ ⊙ ⊙ ⊙ ⊙
Sustainable Development Governance Structure
ChenDongxu Director& Vice
（Male） President 53 ⊙ ⊙ ⊙ ⊙ ⊙ ⊙
Lin Tao Independent
（Male） Director 52 ⊙ ⊙ ⊙ ⊙
In 2023, we revised the ""Working Rules of the Board of Directors' Chen Shoude Independent
（Male） Director 48 ⊙ ⊙ ⊙ ⊙ ⊙
Strategic and Sustainable Development Committee", specifying that
the Strategic and Sustainable Development Committee is responsible Wu Yuhui Independent
（Male） Director 45 ⊙ ⊙ ⊙ ⊙
for researching and making recommendations on ESG strategies,
Jiang Guizhi Vice President&
as well as ESG issues of stakeholder concern such as environmental （Female） Board Secretary 52 ⊙ ⊙ ⊙ ⊙
Strategic and Sustainable
management, greenhouse gas emissions, human rights protection, Board of Directors Level
Development Committee Wang Zhibin
and responsible supply chains. The committee also reviews ESG （Male）
Vice President 55 ⊙ ⊙ ⊙ ⊙
reports and guides and supervises ESG-related work. The committee
Xu Jiana
holds meetings annually to discuss climate-related issues and reports （Male）
Vice President 45 ⊙ ⊙ ⊙ ⊙
to the Board of Directors. At the executive level, we have established Cheng
Dongfang Vice President 45 ⊙ ⊙ ⊙ ⊙
a Sustainable Development Working Group composed of senior （Male）
management and managers from relevant functional departments. Sustainable Development
Lv Rongdian
Executive Level Working Group Vice President 46 ⊙ ⊙ ⊙ ⊙
Under the guidance of the Strategic and Sustainable Development （Male）
Committee, this group is responsible for implementing specific ESG- Wei Zhuo
（Female）
CFO 44 ⊙ ⊙ ⊙ ⊙
related tasks.
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The diversity and professionalism of the Board of Directors and senior O rg a n i ze d t ra i n i n g s e s s i o n s fo r
management team are important safeguards for corporate decision- directors, supervisors, and senior The Shareholding of Directors and Senior Management
management personnel with a total of
making. We highly value the continuous improvement of the professional
competence of directors, supervisors, and senior management personnel.
3 We Implement a Restricted Stock Incentive Plan, granting restricted stocks to directors and senior executives to
establish a medium- to long-term incentive constraint mechanism. As of December 31, 2023, directors and senior
Every year, we regularly organize various training sessions related to
duties and sustainable development for directors, supervisors, and senior With a total of management personnel collectively held 8,003,006 shares of company stock, accounting for 0.27% of the total share
management personnel. In 2023, we organized a total of three training
sessions for directors, supervisors, and senior management personnel,
15 participants
capital.
with a total of 15 participants.
Table of Shares Held by Directors and Senior Management
Number Name Occupation No. of持有股份数（股）
Compensation of Director and Senior Management
1 Zheng Yong da Chairman 913,840
Our Board of Directors has established a Remuneration and Appraisal Committee, which operates in accordance with the "Working
Rules of the Board of Directors' Remuneration and Appraisal Committee". It is responsible for providing recommendations on director
2 Huang Wenzhou Vice Chairman 225,621
compensation, formulating compensation and performance assessment plans for senior management personnel, and conducting
salary assessments for senior management personnel. Directors and senior management personnel employed by the company
receive their compensation on an annual salary basis, determined according to their specific roles. Their annual salary comprises 3 Ye Yanliu Director 649,760
both a basic salary and a performance-based component, which is tied to the company's financial performance and individual
performance assessments. They are also entitled to benefits stipulated by the company. Directors no longer receive additional 4 Zhou Shaorong Director 13,518
director remuneration for their roles in the company. Compensation or allowances for independent directors of the company are
determined by the shareholders' general meeting, while the compensation for senior management personnel is proposed by the
5 Lin Mao Director & CEO 907,080
Remuneration and Appraisal Committee and implemented after approval by the board of directors.
6 Chen Dongxu Director & Vice President 813,840
Clawback Mechanism 7 Wang Zhibin Vice President 901,347
For the compensation of the directors and senior management personnel holding specific positions within the company, 8 Jiang Guizhi Vice President& Board Secretary 910,000
we reserve a certain proportion of annual performance-based compensation as risk reserve, which is paid out at a
9 Xu Jiana Vice President 750,000
deferred schedule. In the event of losses incurred due to improper management or other personal reasons, or violations
of laws and regulations, the corresponding compensation amount will be deducted from the risk reserve, aiming to
10 Cheng Dongfang Vice President 759,200
prevent short-term behavior in management and salary risks. Additionally, we have formulated " Regulations on the
Management of Rewards and Punishments," linking sustainable performance in human capital, safety management,
11 Lv rongdian Vice President 758,800
integrity in operation, clean construction, information security, etc., with the compensation performance of management
and relevant responsible personnel. 12 Wei Zhuo CFO 400,000
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Related Party Transaction
In 2023, we convened a total of 6 shareholders' meetings, The attendance rate of all
Convened a total of directors and supervisors was
deliberating on 62 agenda items; held a total of 41 board
To ensure that our related party transactions adhere to the principles of fairness, impartiality, and transparency, we strictly comply
with relevant laws and regulations. In line with our operational practices, we have established the "Related Party Transaction
meetings, discussing 110 agenda items, with independent 6 shareholders' meetings
100 %
directors expressing independent opinions on significant
Management System," which provides clear regulations on the review and disclosure procedures, pricing principles, and other
matters 13 times; convened a total of 85 specialized committee
aspects related to related party transactions. We strictly implement a mechanism for related party avoidance. During the
meetings, discussing 461 agenda items; held and a total of 9
deliberation of related party transactions, related directors and shareholders must abstain from voting. Independent directors
Board of Supervisors meetings, discussing 36 agenda items. The
express independent opinions on related party transactions requiring disclosure, and they provide pre-approval opinions for related
attendance rate of all directors and supervisors was 100%.
party transactions requiring shareholder approval before board deliberation, fully exercising their supervisory role. Additionally,
our "Financial Management Regulations" and "Capital Management Regulations" also stipulate related matters concerning the
management of funds involving related parties. In 2023, all related party transactions were conducted in accordance with relevant
laws, regulations, and internal management systems.
Information Disclosure Management
Conflict of Interest We strictly adhere to the requirements of relevant regulations such as the Rules Governing the Listing of Stocks on Shanghai Stock
Exchange and have formulated a series of regulatory documents including the "Information Disclosure Management System," "Debt
In accordance with the Articles of Association, directors and senior management personnel are obligated to act in good faith Financing Instrument Information Disclosure Management System for the Interbank Bond Market," "Insider Information Holder
towards the company. Without the consent of the shareholders' meeting, they are not allowed to exploit their positions to pursue Registration Management System," "External Information User Management System," and "Significant Information Internal Reporting
business opportunities that rightfully belong to the company for themselves or others, engage in self-employment or operate System." These documents clarify the scope, time limits, procedures, and channels for information disclosure, standardizing the
businesses similar to those of the company, in order to ensure fairness and transparency in decision-making. We require directors information disclosure process. Additionally, we actively carry out the registration of insiders and internal reporting of significant
and senior management personnel to promptly report any significant positions held in other entities to us to avoid potential conflict information to ensure that information disclosure is conducted truthfully, accurately, timely, and completely, thereby fully safeguarding
with the interests of the company. the right to information of all investors.
Protection of Minority Shareholders'
Rights and Interests
Investor Relations Management
We strictly adhere to the requirements of relevant laws and regulations such as the Company Law of the People's Republic of
We have established the "Investor Relations Management System" and
China, Securities Law of the People's Republic of China, and the Code of Corporate Governance for Listed Companies, establishing
established an investor relations management mechanism. The Chairman
a sound "three-tiered" corporate governance structure. We continuously improve the governance system based on the Articles of
Association, consisting of internal governance documents such as the Rules of Shareholders Meetings, and other regulations, Rules
of the Board of Directors serves as the primary person responsible for
investor relations management, while the Securities Department, under
2023
of Procedure for Board Meetings, and Rules of Procedure for Board of Supervisors Meetings, clarifying the responsibilities of the the leadership of the Board Secretary, is responsible for organizing and
power, decision-making, supervisory, and management bodies to ensure coordinated and standardized operations and promote implementing investor relations management work. We have established The Fourteenth
the high-quality development of the company. The Board of Supervisors consists of three supervisors, including one employee "China Listed Company Investor
diversified channels of communication with investors, including the Investor
Relations Tianma Award"
supervisor. The Board of Supervisors strictly follows relevant regulations and internal rules such as the Articles of Association and Relations section on the official website, investor hotline, investor email,
the Rules of Procedure for Board of Supervisors Meetings, conscientiously fulfilling its supervisory duties. It supervises the legality Shanghai Stock Exchange Interactive Platform, shareholder meetings and "2022 Outstanding Digital
and compliance of directors and senior management personnel in performing their duties and the company's financial condition, performance briefings, investor visits and surveys, etc., to maintain effective Transformation Case Gold Award"
and provides opinions on related significant matters. We strictly follow relevant regulations and internal rules such as the Articles and positive communication with investors. In 2023, we were honored with
the Fourteenth "China Listed Company Investor Relations Tianma Award"
of Association and Rules of Shareholders Meetings, standardizing the convocation, holding, and voting procedures of shareholders'
and the "2022 Outstanding Digital Transformation Case Gold Award."
meetings, and safeguarding the rights of all shareholders, especially minority shareholders.
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Stakeholders Communication Material Issue Assessment
We place high importance on the demands and expectations of stakeholders, and maintain communication with them through
diverse channels. By engaging in regular dialogue with stakeholders, we stay informed about their feedback and expectations, In 2023, we invited both our management team
integrating them into corporate governance practices. This approach facilitates the continuous enhancement of ESG management and stakeholders to participate in material issue
capabilities and performance across various ESG issues. assessments. This process aimed to identify
material sustainability issues for us. Following the
Stakeholders Concerning Topics Communication Methods
principle of double materiality, we established
Employees Environment Compliance Employee Feedback Solicitation a sustainability issue matrix, which will be
Human Rights Protection Employee Training and Activities elaborated upon in this report.
Equal Employment Company WeChat Public Account
Clients Responsible Supply Chain Customer Satisfaction Surveys
Tax Compliance Customer Service and Complaint Handling
Customer Rights Protection Social Media and Company Publications
Suppliers Supplier Conferences
Responsible Supply Chain ESG issue
Conferences We reviewed and analyzed the material issue assessment results in 2022. Based on the requirements of frameworks
Whistleblower Protection identification
Visits and Research such as GRI and SASB, we combined with the characteristics of our business, and referenced excellent ESG practices of
Anti-corruption and update
Discussions and Training peer companies in the same industry to identify and confirm 27 ESG issues.
Investors Public Company Information Disclosure
Risk Management Shareholders' Meetings
Anti-corruption Performance Briefings
Internal and
Customer Rights Protection Investor Surveys We sent the 2023 material issue survey questionnaires to the management team and stakeholders separately, and
external
Investor Hotline/Interactive Easy Platform
research comprehensively collected and analyzed the priorities of various stakeholders through internal and external research
assessment assessments.
Banks Operations Compliance
Public Company Information Disclosure
Risk Management
Project Cooperation
Information Security
Media Social Welfare Activities Material
Based on the results of internal and external research, we followed the double materiality principle to conduct
Institutions Customer Rights Protection issue
Public Company Information Disclosure comprehensive analysis and prioritize sorting from two dimensions: the importance of the issue to our financial impact
Risk Management analysis
Social Media and Media Communications
Anti-corruption and the importance of the issue on stakeholders, forming a material issues matrix.
Public Opinion Monitoring
Government and Community Investment Visits
Regulatory
Bodies
Environment Compliance Participation in Policy Making Suggestions
Anti-corruption Government Project Cooperation Evaluation
The results of the assessment were reviewed and confirmed by the Board of Directors Strategic and Sustainable
results
Development Committee. Addressing the top three issues in terms of their significance, namely risk management,
Non-governmental Community Investment Visits review
Organizations operation compliance, and anti-corruption, identified in this assessment, the report focused on addressing
Environment Compliance Community Service
Human Rights Protection Welfare Activities stakeholders' concerns under relevant issue categories to strengthen the ESG issue management.
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Environment Issues
High
1 Environment Compliance 5 Exhaust Air Management
2 GHG Emission 6 Waste Management 21
20
3 Energy Management 7 Biodiversity 22 11 19
13 9 10
4 Water Protection and 8 Resource Recycling
Wastewater Management 14
12
25
27 18
1 2 26
17
8
Society Issues 16 24
Importance to C&D Inc.
23
3
9 Equal Employment 14 Employee Communication
10 Human Rights Protection 15 Community Investment 4
5
11 Occupational Health and Safety 16 Responsible Supply Chain
6
7
12 Training and Education 17 Customer Rights Protection 15
13 Compensation and Welfare 18 Responsible Marketing
Governance Issues
19 Operations Compliance 24 Intellectual Property Rights
20 Risk Management Protection
21 Anti-corruption 25 Information Security
Medium
22 Anti-unfair Competition 26 Tax Compliance
23 Research and Development Innovation 27 Whistleblower Protection
Importance to Stakeholders High
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Risk and Compliance Management Taking the two categories of credit risk and project management risk that we have already identified as examples:
Business
Risks Types Description of Risks Category Coping Mechanism
We have elevated risk management to the strategic level by adopting a "professionalized" operational strategy. We have established
Segments
We establish a trading counterpart admission system that matches the
corresponding business management frameworks tailored to different industries, integrating risk management deeply into characteristics of goods and transaction features of each business sector,
business, market, and industry dynamics. This integration ensured that risk management was incorporated throughout all stages of Losses incurred due to the conducting comprehensive evaluations of customer qualifications and
counterpar ty (supplier or credit risks. We have developed comprehensive credit management
operations, from conceptualization to execution and monitoring. We continuously refined the risk management system, covering all Supply
c u s t o m e r ) fa i l i n g t o f u l f i l l Mid-Level methods, strictly implementing centralized credit approval managed by
Chain Credit Risk
business processes and the entire lifecycle, to construct a "professionalized, hierarchical, and process-oriented" risk management contractual obligations (such as Risk the headquarters. We dynamically adjust customer credit strategies and
Operations
framework, thereby ensuring our stable operation. delivery, receipt, payment, etc.) control plans by tracking industry changes and customer information
on time. through internal and external channels. Additionally, we utilize various
measures such as export credit insurance and domestic credit insurance to
Risk Management Structure
strictly control credit risks.
The development of real estate
projects is characterized by
We will further enhance the management capabilities of our operational
l a rg e u p f ro n t i n v e s t m e n t ,
We have established a three-tier risk management framework consisting of the Board of Directors, the headquarters management, and team in project operation, continuously refining internal controls.
long development cycles,
functional departments, as well as subsidiary management and related functional departments. We have formulated and continuously Starting from investment decisions, cost control, process monitoring, and
involvement of multiple
refined internal business management systems such as the "Internal Control Management Manual," "Supply Chain Operations responsibility assessment, we will strengthen financial management and
Management partners, among other industry- Low Level
Real Estate engineering control to improve the quality of project management in our
Management Regulations," "Logistics Management Regulations," and "Credit Management Regulations." Additionally, we have Risk specific features. Real estate Risk
subsidiaries and reduce operational risks. While ensuring project quality,
developed a comprehensive risk control matrix to standardize the management processes of key operational and business segments. companie s face significant
we will optimize the development and operation processes, shorten the
We continuously strengthen and optimize process controls and key risk point controls to enhance the prevention of various risks during management pressure in areas
development and operation cycles, strengthen cash flow management,
such as project development
operations, ensuring stable operation. improve operational efficiency, and ensure safe and steady growth.
cycles, project sales progress,
and engineering quality.
Three-tier Risk Management Structure
In the risk control process, we continuously adjust key risk indicators quarterly
The Risk Management Committee established under the Board of Directors fulfills the responsibility of risk based on market conditions and actual operational situations. We promptly
Board of Directors take measures and report potential or likely risk or dispute events discovered
management, controlling and making decisions on significant business matters, major anomalies, or risk situations,
Risk Management Committee guiding the overall risk management. during business operations in accordance with regulations. Additionally, we
& Audit Committee The Audit Committee established under the Board of Directors fulfills the responsibility of risk oversight, reviewing incorporate various risk control processes into its enterprise management system,
and supervising the company's risk control, internal control, and compliance. clarify the responsibilities of each department and approval decision authority,
standardize hierarchical reporting, and strengthen post-process tracking by
Headquarter’s management and multiple functional departments fulfill the responsibility of risk control as follows:
departments to ensure the effective execution of risk control processes, monitor,
Implementing a system of managerial responsibility, where the general manager is authorized by the Risk Management
and prevent potential risks. By implementing regulations such as the " Regulations
Headquarter’s Management Team Committee, and further delegation is made at each level, clarifying the division of authority and establishing hierarchical risk control.
on the Management of Rewards and Punishments " and the " Measures on
Operations Management Dept., Credit
Various functional management departments such as Operations Management, Credit Management, Logistics Management,
Legal Affairs, Compliance Inspection, and Futures Management undertake risk management responsibilities within their
the Management of Risk Funds," we link key risk indicators to management
Management Dept., Legal Affairs Dept.,
respective functional areas. The Operations Management department coordinates and supervises various functional management personnel's compensation, thereby enforcing risk management responsibilities.
Risk And Compliance Inspection Dept.,
departments, reporting to the Risk Management Committee or the general manager within their authorized scope. We also appoint In 2023, we revised the "Composition, Duties, and Approval Control Measures of
Futures Management Dept. etc.
a Chief Risk Officer responsible for overseeing risk-related work and reporting to the chairman of the Board. the Risk Management Committee," optimized the authorization items for the Risk
The Compliance Inspection department serves as the supervisory body for risk control, fulfilling its oversight responsibilities Management Committee 's approval, and improved weak links in risk management.
through inspections, audits, and regular communication, and providing regular reports to the Audit Committee.
Furthermore, leveraging data mining, machine learning, and other big data
Management Teams Of Subsidiaries technologies, we continuously optimize the "Intelligent Risk Control System
Functional management departments
The subsidiaries’ management teams and relevant functional departments carry out daily risk management
Model," represented by the E-risk control series products, to provide technical
responsibilities within the scope of each subsidiary's business, conducting risk management activities.
of subsidiaries
support for the company's risk management and operational decision-making.
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Risk and Compliance Inspection Education on Risk Control
We actively promote various types of risk management and compliance training, Organized risk management
The Audit Committee established under the Board of Directors is responsible for reviewing and supervising risk management and
a n d c o m p l i a n c e t ra i n i n g
disseminating risk and compliance knowledge to employees through various forms,
internal control compliance. The Risk and Compliance Inspection Department is responsible for conducting risk and compliance sessions with a total of
advocating for business management and risk control policy requirements, enhancing
inspections, internal control audits, and evaluations on various functional management departments and operating units. It strengthens
the supervision of risk and compliance, promptly identifies issues and deficiencies in risk control, internal control system processes, and
employees' awareness of compliance operation and risk prevention, and strengthening 92 sessions
their risk management capabilities. Additionally, we encourage employees to promptly
execution, and provides relevant improvement suggestions, urging implementation. Continuously enhancing the level of risk management report potential risks, establish corresponding preventive or responsive measures, and
and control to effectively prevent risks. We regularly entrust external professional institutions to audit the execution and effectiveness of provide certain rewards to employees who timely prevent events harmful to our interests in With a cumulative total of
internal control processes at the company level, including development strategies, social responsibilities, supply chain operations, real
estate development and operations, engineering projects, fund activities, asset management, and other important business aspects.
accordance with internal regulations. In 2023, our supply chain operations business organized
a total of 92 risk management and compliance training sessions, with a cumulative total of
6,283 participants
6,283 participants attending the training.
Conducted a series of training sessions on risk prevention for supply chain operations
in 2023, the Risk and Compliance Inspection Department conducted comprehensive monitoring of
In the
378 risk control projects, inspected the business execution of joint ventures and holding companies; Provided personalized training for 12 secondary operations management personnel
supply chain
organized various functional departments and operating units to conduct self-assessment of Organized 5 secondary operations management exchange meetings
operations
internal controls, streamlined business management processes, and revised 6 business management
business Arranged training on international business operations management
processes and corresponding internal control measures.
Hosted a business risk control audit salon
C&D Real Estate conducted special audits on the management of engineering, design, marketing,
and other business lines, based on the actual operational management of its various clusters. This
aimed to strengthen frontline internal audits and the prevention and control of operational risks.
Focusing on key risk control issues such as sales management, marketing expense management,
In the real
and marketing tender management, random inspections were conducted quarterly on typical
estate
projects to ensure coverage of all business units throughout the year. Each cluster under C&D Real
business
Estate conducted internal inspections of key projects in its subordinate business units quarterly.
External third-party agencies were commissioned to conduct sales risk assessments. Special
compliance marketing audits were conducted for unsold inventory of completed properties within
specific timeframes.
Lianfa Group focuses on key control points in risk areas such as engineering bidding,
project management, marketing business, asset leasing, investment, and fund
management. It strengthens daily risk supervision and investigation, audits, and
oversight, promptly follows up on identified issues, implements corrective actions, and
enhances risk prevention and control.
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Prevent Commercial Bribery and Unfair Competition Supplier Business Ethics Management
Our "Supplier Code of Conduct" sets forth clear anti-corruption and anti-bribery requirements for suppliers, strictly prohibiting any form
We adhere to the corporate spirit of " Solidarity, Devotedness, Integrity, Enterprisingness," strictly comply with relevant domestic
of corruption, extortion, or bribery. It requires suppliers to conduct their business activities in a legal, compliant, and ethical manner. To
laws and regulations in the countries or regions where we operate, support and respect the requirements of relevant international
address integrity risks associated with potential business partners such as suppliers, we conduct due diligence through qualification
conventions and norms, and conduct business with high ethical standards to maintain a free and fair market environment. We have
verification, on-site inspections, background checks, and risk assessments. This is aimed at examining and preventing supplier integrity
established and continuously improved the " Business Code of Conduct," providing clear behavioral standards and guidance for us
risks. Prior to entering into cooperation with suppliers, relevant compliance departments are involved in the contract approval process to
and our subsidiaries worldwide in areas such as business ethics and compliance, conflict of interest, anti-monopoly and anti-unfair
review supplier qualifications and integrity risks. Suppliers are required to sign integrity agreements or pledges of compliance, explicitly
competition, insider trading prohibition, anti-money laundering, compliance with international trade rules, protection of property
informing them of the principles of integrity and compliance, as well as the consequences of violating these principles, to constrain their
rights and interests, complaint mechanisms and protection of complainants, and lawful tax payment, establishing a trustworthy
behavior and prevent integrity risks. Throughout the business cooperation process, we continuously monitor and track the business
corporate image.
activities of suppliers and any external negative information, such as litigation involvement or dishonesty. In the event of corruption
or bribery by a supplier, we will terminate business cooperation, seek compensation, or take other appropriate measures to hold the
supplier accountable for their actions.
Anti-Corruption and Anti-Commercial Bribery
We attach great importance to the construction of corporate integrity and actively prevent corruption. By formulating the
"Anti-Corruption and Anti-Bribery Policy," we clearly define various corrupt and bribery behaviors prohibited and take effective
measures to prevent corruption risks. We have established internal management systems such as the " Employee Honest Operation Integrity Supervision and Inspection
Management Regulations (Trial)" to regulate the integrity behavior of employees, ensuring a high degree of consistency between
employees' knowledge, speech, and actions, and creating a trustworthy and fair business environment. Additionally, we integrate
integrity requirements into daily employee management through internal management systems such as the " Human Resources Our disciplinary inspection commission (hereinafter referred to as the "Commission ") continuously strengthens routine supervision and
Management Regulations," " Regulations on the Management of Rewards and Punishments," and "Supply Chain Operations inspection, conducts special inspections, and conducts supervision and inspection around key areas and important time points. It promptly
Management Regulations." We impose corresponding penalties on employees who violate business ethics and explicitly define identifies problems and deficiencies, rigorously urges rectification and implementation to prevent integrity risks, to ensure the effective
integrity-related assessment requirements in the annual performance appraisal for management. implementation of integrity systems, and to ensure that integrity building is effectively implemented. For violations related to business
operations, audits and investigations are conducted by the Integrity and Compliance Inspection Group and the Business Compliance
Management Group. According to internal regulations such as the "Interim Measures for Holding Accountable for Violations of Business
Conduct" and the " Employee Honest Operation Management Regulations," and the "Employee Integrity and Self-Discipline Regulations,"
relevant business units and personnel involved in corrupt practices are punished.
Business Ethics Risk Control
2023 Integrity Special Inspection:
We implement integrity policies such as the "Anti-Corruption and Anti-Bribery Policy," " Employee Integrity and Self-Discipline Regulations" and Organized units to conduct self-examination and self-correction in a timely manner around issues such as receiving
the"1 +X Special Inspection and Linkage Work System" to identify integrity risks in critical business areas and key positions and incorporate them gifts, unauthorized banquets, and dereliction of duty, and conducted spot checks on key units.
into internal controls. Continuous efforts are made to strengthen supervision and inspection mechanisms to promote the integrity and high-quality
development. To enhance integrity risk control, we have established an Integrity and Compliance Inspection Group responsible for monitoring Issued discipline requirements and notification documents before important holidays, and organized units to
the adherence to integrity and compliance principles. Led by the Risk Control Director, the Integrity and Compliance Inspection Group comprises conduct self-discipline and self-examination work on integrity after the holidays.
department heads from departments such as Risk Control Inspection, Operations Management, Credit Management, and Legal Affairs. Additionally,
a Business Compliance Management Group has vbeen formed to review various business compliance matters and strengthen integrity and business Conducted special supervision on the use of leased assets management to effectively improve the compliance of
compliance risk management. Both the Integrity and Compliance Inspection Group and the Business Compliance Management Group regularly asset management.
report the status of integrity risk control to the management, who oversee and guide the integrity risk control objectives.
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Business Ethics Training and Education Anti-Monopoly and Anti-Unfair Competition
We place great importance on building a culture of integrity, leveraging the synergy of Enterprise WeChat, the We have consistently advocated for freedom and fair competition, strictly adhering to national
intranet, and E-learning platforms to create an integrity culture brand. In 2023, we conducted various forms of and regional regulations concerning anti-monopoly and anti-unfair competition laws in areas of
business development, committed to upholding integrity, fairness, and freedom in market order In 2023, the company was not
regular integrity education and training activities, covering 100% of employees, aiming to enhance the integrity
and commercial environments. Through the "Business Code of Conduct," we set forth regulatory involved in any cases related to
awareness of all staff members.
requirements regarding anti-unfair competition and anti-monopoly practices for us and our unfair competition or monopolies.
subsidiaries. It strictly prohibits the use of illegal or unethical means to obtain information about
competitors or partners and prohibits the creation and dissemination of false information about
Organized activities such as the Integrity Film Week, Carnival, and solicitation of integrity-themed works during the competitors. The Integrity and Law Enforcement Supervision Working Group is responsible for
Integrity Education Month. These activities presented the spirit of integrity in interactive formats, aiming to educate through supervising and reviewing compliance with the " Business Code of Conduct," ensuring that business
entertainment and promote integrity through interaction. The cumulative participation exceeded 9,000 people, with over 100 activities are conducted in a legal and compliant manner, and making every effort to prevent and
pieces of integrity-themed works collected. avoid risks related to unfair competition and monopolies.
Leveraged the " Clean C&D " as the main platform for integrity propaganda, utilizing popular formats such as comics and
videos for regular propaganda. This approach closely aligned with the psychological characteristics of employees, enriching the
strategies for integrity education.
Conducted integrity-themed lectures for over 2,000 young cadres, key business personnel, and young employees. This included
recording integrity-themed training videos, conducting integrity education for employees who joined us in the past two years
through the E-learning platform, and conducting exams to evaluate their understanding; provided specialized integrity training Complaint Mechanism and Whistleblower Protection System
for young business backbones to help them clearly understand the bottom line and principles of integrity for state-owned
enterprise business backbones; Conducted integrity education lectures for all employees of subsidiaries such as Xiamen C&D
Financial Leasing Co., Ltd., strengthening their awareness of integrity and self-discipline. We strictly adhere to relevant regulations such as the "Rules for Handling Complaints and
Stakeholders can lodge complaints or reports
C&D Real Estate released WeChat promotional articles titled "Integrity Book Recommendation - Nourishing the Heart with Accusations by Disciplinary Inspection and Supervision Departments " and internal policy
anonymously or report with their identity
Clean Spirit" and organized an integrity book recommendation activity. Using assessments as a learning tool, we utilized requirements such as the "Business Code of Conduct" and "Anti-Corruption and Anti-Bribery
disclosed through the following public channels:
platforms such as zhangjianshi, Executive System, and Lexiangla.com to organize nearly 3,000 party members and cadres Policy", establishing a sound complaint and reporting mechanism. We provide employees, suppliers,
for the online activity "Walking with Clean Spirit - C&D Real Estate Integrity and Self-discipline Knowledge Quiz," fostering a customers, and other stakeholders with convenient internal and external channels for lodging Complaint and reporting email：
positive atmosphere for clean governance and entrepreneurship. complaints and reports, encouraging them to promptly and actively provide feedback, complaints, compliance@chinacnd.com
Under the theme "Clear and United Hearts," Lianfa Group conducted the Integrity Culture Promotion and Education Month: and reports to us when they discover any behavior that may violate business conduct norms,
18 special sessions on integrity education were held; 1,964 individuals attended screenings of educational documentaries; 39 policies, or laws, jointly creating a trustworthy and transparent business environment.
integrity-themed party classes were conducted through forms like party lectures and online learning via Party Building E-Home;
integrity knowledge tests were administered to all staff, with a pass rate of 100%; and a themed collection activity titled "Show
Family Rules, Tell Family Stories" was organized.
We attach great importance to whistleblower protection In internal policy documents such as the "Business Code of Conduct" and "Anti-Corruption
and Anti-Bribery Policy", we clearly states our attitude towards and measures taken to protect whistleblowers' legitimate rights and interests:
allowing anonymous or named reports, strictly implementing confidentiality mechanisms to prohibit the disclosure of whistleblowers' information
we conducted various forms ofregular integrity education and training activities, covering and report contents; prohibiting any retaliation or reprisal against whistleblowers. Anyone found leaking information or engaging in retaliatory
100 % employees
actions against whistleblowers will be dealt with seriously according to relevant regulations and held accountable.
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Intellectual Property Rights Protection Tax Compliance Training
4 19
We strictly adhere to relevant laws and regulations such as the "Patent Law of the People's
We conduct regular internal and
Republic of China" and the " Trademark Law of the People's Republic of China," continuously
external tax compliance training
improve our intellectual property rights management system, and strengthen our intellectual new authorized patents new software copyrights
to enhance the awareness of
property rights protection efforts. Our intellectual property rights include trademarks, patents,
tax compliance among relevant
copyrights, and trade secrets, which are managed and protected by relevant departments.
tax personnel and improve their
We have formulated the " Trademark and Naming Management Measures" to standardize
trademark management practices and utilize trademark strategies effectively to enhance
90 professional capabilities in taxation,
ensuring tax compliance. In 2023, we
brand benefits. In 2023, we obtained 4 new authorized patents, registered 19 new software new trademark registrations
organized internal training sessions
copyrights, and secured 90 new trademark registrations.
with themes such as "Supply Chain
Risk Prevention System Training - Tax
Risk Prevention" and "Promotion the
launch of Baiwang Digital Electronic
Tax Compliance Management Invoice System". Additionally, external
institutions and experts were invited
to conduct seminars on topics like
We strictly adhere to the national tax laws such as the " Enterprise Income Tax Law of the People's Republic of China" and all relevant tax
"Construction of Enterprise Tax
regulations applicable in various business regions, fulfilling our tax obligations in accordance with the law to ensure tax compliance and
Risk Compliance with Golden Tax Phase IV" and "Risk Alert for Chinese Enterprises' Outbound Investment", providing guidance and
transparency. Tax-related matters are specified in the "Financial Management Regulations," and personnel from relevant departments are
recommendations for tax risk management and tax-related work. These efforts aimed to enhance the awareness of risk prevention among
responsible for daily tax-related work, including regular tax declaration. We continuously monitor changes in tax-related regulations and
relevant personnel and to continually improve our level of tax compliance management.
policies in various regions and adjust our tax-related processing accordingly. Adhering to the principles of lawful and honest taxation, we
contribute back to society through tax payment and are recognized as one of the top 100 taxpayers in Fujian Province for multiple consecutive
years. In 2023, our total tax payment amounted to 1,674,762 Ten-thousand RMB, and no tax-related violations occurred.
Tax Risk Management
We incorporate tax risk management into our overall risk control process and establish a full-chain mechanism of "pre-risk reduction,
mid-response emphasis, and post-promotion improvement" to effectively manage tax risks. Through proactive dissemination of tax
policies and regulations, we enhance the sensitivity of all levels of the organization and related personnel to tax risks, identify potential
tax risks in business operations and regulatory policies, and implement corresponding control measures. Additionally, we strengthen
risk inspections of various platform companies, conduct timely analysis and summarization of inspection results, implement corrective
actions, and share experiences comprehensively. To ensure the effectiveness of tax management in subsidiaries, we establish a tax
liaison mechanism to promptly disseminate various tax policies and requirements downward and report tax work and inspection
situations upward. Furthermore, we implement a system for tax inspections of off-site platforms, with annual assignments of task forces
to audit tax management practices of various platform companies and ensure corrective actions are taken. Additionally, we maintain
regular communication and interaction with tax authorities, implementing a centralized commissioner management mechanism for
communication and consultation on tax matters, thereby enhancing the efficiency of tax-enterprise communication.
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Data Overview
Environmental Household waste recycled volume / 0
Ton
Indicators Unit 2022 2023 Construction waste volume / 421
Environmental investment Energy Consumption
Annual total environmental investment Ten-thousand RMB 2,086 3,789 Electricity 4 kWh 259,624,703 947,373,073
Emissions and Discharge Including: Green electricity kWh 392,010 10,834,236
GHG Green electricity ratio % 0.10 1.16
Scope 1 – Direct GHG emissions 285,727 434,139 Coal Ton 137,412 166,254
Scope 2 – Indirect GHG emissions 220,443 539,580 Natural gas 5 m3 105,488 39,117,790
tCO2e
Scope 3: Other Indirect Emissions- Leased Assets for
/ 335,525 Thermal 6 GJ 16,482 27,266
Household Business
1
Total GHG emissions (Scope 1+ Scope 2) 506,170 973,719 Steam Ton / 7,193
tCO2e/ hundred-million RMB of
Total GHG emissions intensity 61 128 Liquefied petroleum gas 914,023 701,654
operating revenue
Air Pollutants Diesel（mobile） Litre 127,930 421,668
NOx emissions 44 49 Diesel（stationary） 366,688 25,091
SOx emissions Ton 4 8 Liquefied petroleum gas KG 1,323,280 6,560
PM emissions 2 2 Water Resources
Wastewater and Related Pollutants Water withdrawal m3 / 11,923,256
Total wastewater discharges 2 m3 3,149,769 8,641,873 Water consumption m3 / 3,281,383
COD discharge 347 377 m3/ hundred-million RMB of
Water consumption density / 430
operating revenue
Ammonia Nitrogen discharge Ton 3 2 Recirculating water usage m3 / 69,500
Total Nitrogen discharge / 49 Recirculating water usage percentage % / 0.58
Waste Packaging Materials
Hazardous waste generation / 78 Packaging materials 96 1,000
Transfer and disposal volume of hazardous waste 23 63 Including: Recyclable packaging materials Ton / 200
3
General waste transfer and disposal volume 101,949 337,378 Non-recyclable packaging materials / 800
Including: Industrial waste generation volume / 130,772 Green Building
Ton
Household waste generation volume / 49,608 Area of green building renovation m2 / 74,580
Construction waste generation volume / 156,998 Basic level of green building / 9
General waste recycling volume 30 113,500 One-star green building / 2
/
Including: Industrial waste recycled volume / 113,079 Two-star green building / 1
Note1: The increase in our GHG emissions in 2023 compared to 2022 is mainly due to the acquisition of Macalline during the reporting period. If the GHG emissions data from Macalline during the reporting period are excluded and the data for
2022 and 2023 are compared on the same basis, the total GHG emissions (Scope 1 + Scope 2) in 2023 decreased by 15,628 tCO2e compared to 2022, a year-on-year decrease of 3.1%. Three-star green building / 0
Note2: The increase in wastewater discharge in 2023 compared to 2022 is mainly due to the acquisition of Macalline and the higher production output of Yuantong Paper during the reporting period..
Note4: The increase in electricity consumption in 2023 compared to 2022 is mainly due to the acquisition of Macalline during the reporting period. If the electricity consumption data from Macalline during the reporting period are
Note3.The increase ingeneral waste transfer and disposal volume in 2023 compared to 2022 is mainly due to the acquisition of Macalline and the higher production output of Yuantong Paper during the reporting period.
excluded and the data for 2022 and 2023 are compared on the same basis, the electricity consumption in 2023 decreased by 30,207,071 kilowatt-hours compared to 2022, a year-on-year decrease of 11.6%.
Note5: The increase in natural gas consumption in 2023 compared to 2022 is primarily attributed to the acquisition of Macalline and the commencement of production at Shandong Jianke Steel during the reporting period.
Note6: The increase in heat consumption in 2023 compared to 2022 is mainly due to the acquisition of Macalline during the reporting period. If the heat consumption data from Macalline during the reporting period are excluded
and the data for 2022 and 2023 are compared on the same basis, the heat consumption in 2023 is 0, a year-on-year decrease of 100%.
127 128
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Employment Female management (Mid-level and above) Person / 349
Indicators Unit 2022 2023 Proportion of female management (Mid-level and
% / 23
above)
7
Total employees Person 32,847 49,752
Include: Senior management / 8
Person
Employee Composition Female senior management / 2
Employee Composition by Gender Proportion of female senior management % / 25
Male 20,411 30,837
Local senior management Person / 6
Person
Female 12,436 18,915
Proportion of local senior management % / 75
Employee Composition by Age Management Composition by Nationality
Under 30 / 14,928
China Person / 5,050
30-50 Person / 31,316
Other regions Person / 2
Over 50 / 3,508
Labor contracts
Employee Composition by Education Ratio of signed labor contracts % 100 100
Masters and above 1,715 2,177
Freedom of Association and Collective Bargaining
Bachelors 12,295 19,262 Number of employees covered by the collective
Person / 100
Person agreement
College 9,604 13,575
Employment of Disabled Individuals
Other 9,233 14,738
Number of disabled employees hired Person 5 26
Employee Composition by Function Percentage of disabled employees hired % 0.01 0.05
Management 1,262 1,596
Employee Training (Supply Chain Operations Business)
Technical 7,501 9,282
Total annual investment in employee training Ten-thousand RMB 970 3,008
Business 22,090 33,404 Total employee training participants Participant / 209,641
Financial 1,078 3,082 Total training hours Hour 6,354,357 2,138,972
Administrative 916 2,388 Parental Leave
Person
Female Management / 395 Total paid parental leave requested by Employees Day / 4,787
Female Technical / 1,439
Note 7: The increase in the total number of employees in 2023 compared to 2022 is mainly due to the acquisition of Macalline during the reporting period. If the employee data from Macalline during the reporting period are
excluded and the data for 2022 and 2023 are compared on the same basis, the total number of employees in 2023 increased by 2,444 people compared to 2022, a year-on-year growth of 7.44%.
Female Business / 13,065
Market
Female Financial / 2,239
Female Administrative / 1,777
Marlet
Management Team Composition
Indicators Unit 2022 2023
Junior management / 3, 535
R&D Investment in Science and Technology
Person
Female junior management / 1,094 Total R&D investment amount in science and
Ten-thousand RMB 19,062 23,651
technology
Proportion of female junior management % / 31
Intellectual Property Rights
Management (Mid-level and above) Person / 1,517
Number of newly registered patent Item 181 4
129 130
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Number of newly registered software copyrights / 19 Number of shutdowns Time 0 0
Item
Number of newly registered trademarks / 90 Hours of shutdowns Day 0 0
Complaint Resolution Occupational Health
Total number of complaints 22,221 5,476 Occupational fatalities Person 0 0
Case
Total number of complaints resolved 22,220 5,476
Complaint resolution rate % 99.99 100
Supplier Management
Total number of suppliers 41,397 126,728
Mainland China / 96,415 Social Contribution
Unit
Other regions / 30,313
Indicators Unit 2022 2023
Social Contribution
Number of new suppliers admitted this year / 12,357
Donations to external organizations 3,612 2,633
Ten-thousand RMB
Investment in supporting rural revitalization and
/ 96
regional coordinated development
Total trade volume among countries along the Belt
Ten-thousand USD / 1,696,078
and Road Initiative
Occupational Health & Safety Number of public welfare activities held Time 121 348
Indicators Unit 2022 2023 Total volunteer service participants Participant 13,092 16,204
Work Safety Input Total volunteer service hours Hour 5,013 9,984
Total annual investment in occupational health and
work safety
Ten-thousand RMB 2,388 436
Safety Training
Total participants in occupational safety training Participant 69,356 373,368
Total participant time in occupational safety training Hour 25,691 77,558
Governance
Ratio of attendees for safety training % 58 100
Indicators Unit 2022 2023
Number of safety emergency drills Time 1,531 16,704
Business Ethics
Number of attendees for safety emergency drills Participant 5,594 158,370
Anti-corruption Advocacy and Training (Supply Chain Operations Business)
Number of safety offline training session Time 961 31,321 Proportion of employees briefed on anti-corruption
/ 100
policies and procedures
%
Number of safety online training session Course 65 159 Proportion of employees received anti-corruption
/ 100
training
Work Safety Accident
Extraordinary major accident 0 0
Major accident 0 0
Case
Serious accident 0 0
General accident 0 0
131 132
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GRI Standards Index
GRI Standards Disclosures Location Omission GRI Standards Disclosures Location Omission
General Disclosures General Disclosures
2-1 Organizational details About C&D Inc 2-22 Statement on sustainable development Message from the Chairman
strategy
2-2 Entities included in the organization's About This Report
sustainability reporting Addressing Climate Change
Pollution Prevention and Ecosystem
2-3 Reporting period, frequency and contact point About This Report Protection
Resource Utilization and Circular
This report does not involve Economy
2-4 Restatements of information Not Covered In This Report Rural Revitalization and Public
restatements of information
2-23 Policy commitments Service
About This Report Innovation-Driven, Suppliers, and
2-5 External assurance Independent Limited Assurance Customers
Report Human Rights Protection
Occupational Health and Safety
About C&D Inc.
Prevent Commercial Bribery and
2-6 Activities, value chain and other business Message from the Chairman Unfair Competition
relationships Innovation-Driven, Suppliers, and
Customers Addressing Climate
ChangePollution Prevention and
2-7 Employees Human Rights Protection Ecosystem Protection
Data Overview Resource Utilization and Circular
Economy
The Company does not collect Rural Revitalization and Public
2-8 Workers who are not employees Not Covered In This Report relevant data during this 2-24 Embedding policy commitments Service
report period Innovation-Driven, Suppliers, and
Customers
Sustainable Development Human Rights Protection
Governance Structure Occupational Health and Safety
2-9 Governance structure and composition Prevent Commercial Bribery and
Appointment of Directors and
Senior Management Unfair Competition
2-10 Nomination and selection of the highest Appointment of Directors and Addressing Climate
governance body Senior Management ChangePollution Prevention and
Ecosystem Protection
GRI 2: General Appointment of Directors and GRI 2: General Resource Utilization and Circular
2-11 Chair of the highest governance body Disclosures 2021
Disclosures 2021 Senior Management Economy
Rural Revitalization and Public
Governance for Sustainable Service
2-25 Processes to remediate negative
2-12 Role of the highest governance body in Development Innovation-Driven, Suppliers, and
overseeing the management of impacts Material Issue Assessment impacts Customers
Risk and Compliance Management Human Rights Protection
Occupational Health and Safety
2-13 Delegation of responsibility for managing Sustainable Development Investor Relations Management
impacts Governance Structure Risk and Compliance Management
Risk and Compliance Management Prevent Commercial Bribery and
Unfair Competition
Sustainable Development
2-14 Role of the highest governance body in Governance Structure
sustainability reporting Material Issue Assessment Engage in Community and Preserve
Cultural Heritage
Innovation-Driven, Suppliers, and
2-15 Conflicts of interest Conflict of Interest 2-26 Mechanisms for seeking advice and Customers
raising concerns Human Rights Protection
2-16 Communication of critical concerns Stakeholders Communication Complaint Mechanism and
Whistleblower Protection System
2-17 Collective knowledge of the highest governance Appointment of Directors and
Stakeholders Communication
body Senior Management
Pollution Prevention and Ecosystem
The Company does not collect Protection
2-18 Evaluation of the performance of the highest Responsible Procurement
Not Covered In This Report relevant data during this
governance body report period Product Quality Management
Information Security Protection
Compensation of Director and Responsible Marketing
2-19 Remuneration policies Human Rights Protection
Senior Management 2-27 Compliance with laws and regulations Occupational Health and Safety
Compensation of Director and Related Party Transaction
2-20 Process to determine remuneration Protection of Minority Shareholders'
Senior Management
Rights and Interests
Risk and Compliance Management
The Company does not collect Prevent Commercial Bribery and
2-21 Annual total compensation ratio Not Covered In This Report relevant data during this
report period Unfair Competition
133 134
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GRI Standards Disclosures Location Omission GRI Standards Disclosures Location Omission
Support Industry GRI 204: The Company does not
2-28 Membership associations Procurement 204-1 Proportion of spending on local Not Covered In This Report collect relevant data
Development suppliers
Practices 2016 during this report period
GRI 2: General
Disclosures 2021 2-29 Approach to stakeholder engagement Stakeholders Communication Anti-corruption
GRI 3: Material Anti-Corruption and Anti-
2-30 Collective bargaining agreements Human Rights Protection 3-3 Management of material topics Commercial Bribery
Topics 2021
Material topics 205-1 Operations assessed for risks related Anti-Corruption and Anti-
to corruption Commercial Bribery
Stakeholders Communication 205-2 Communication and training about Anti-Corruption and Anti-
3-1 Management of material topics Material Issue Assessment GRI 205: Anti- Commercial Bribery
GRI 3: Material anti-corruption policies and procedures Data Overview
corruption 2016
Topics 2021
3-2 List of material topics Material Issue Assessment 205-3 Confirmed incidents of corruption Anti-Corruption and Anti-
and actions taken Commercial Bribery
Data Overview
Economic performance
Anti-competitive behavior
Sustainable Development
GRI 3: Material Governance Structure GRI 3: Material Anti-Monopoly and Anti-
3-3 Management of material topics Risk and Compliance 3-3 Management of material topics
Topics 2021 Topics 2021 Unfair Competition
Management
GRI 206: Anti- Anti-Monopoly and Anti-
201-1 Direct economic value generated and Sustainable Development competitive 206-1 Legal actions for anti-competitive Unfair Competition
distributed Impact behavior, anti-trust, and monopoly practices Data Overview
Behavior 2016
201-2 Financial implications and other risks Sustainable Development Tax
and opportunities due to climate change Risk Management
GRI 201: Economic
Performance 2016 GRI 3: Material 3-3 Management of material topics Tax Compliance Management
201-3 Defined benefit plan obligations and Topics 2021
other retirement plans Employee Development
207-1 Approach to tax Tax Compliance Management
201-4 Financial assistance received from Employee Development
government 207-2 Tax governance, control, and risk
management Tax Compliance Management
Market presence GRI 207: Tax 2019
207-3 Stakeholder engagement and Tax Compliance Management
management of concerns related to tax
GRI 3: Material Employee Development
3-3 Management of material topics Rural Revitalization and Public
Topics 2021 Service The Company does not
207-4 Country-by-country reporting Not Covered In This Report collect relevant data
during this report period
202-1 Ratios of standard entry level wage The Company does not
by gender compared to local minimum wage Not Covered In This Report collect relevant data
GRI 202: Market during this report period Materials
Presence 2016
202-2 Proportion of senior management Data Overview Addressing Climate
hired from the local community ChangePollution Prevention
GRI 3: Material 3-3 Management of material topics and Ecosystem Protection
Topics 2021 Resource Utilization and
Indirect economic impact Circular Economy
GRI 3: Material Rural Revitalization and Public GHG Emissions Reduction
3-3 Management of material topics Service Schemes
Topics 2021
301-1 Materials used by weight or volume Implementation of Circular
Economy Practices
203-1 Infrastructure investments and Rural Revitalization and Public Data Overview
GRI 203: Indirect services supported Service
Economic Impacts GHG Emissions Reduction
2016 Rural Revitalization and Public GRI 301: Materials Schemes
203-2 Significant indirect economic impacts Service 301-2 Recycled input materials used Implementation of Circular
2016 Economy Practices
Data Overview
Procurement practices
GHG Emissions Reduction
301-3 Reclaimed products and their Schemes
GRI 3: Material Responsible Procurement packaging materials Implementation of Circular
3-3 Management of material topics Promote Virtuous Deeds and Economy Practices
Topics 2021 Revitalize Rural Areas Data Overview
135 136
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GRI Standards Disclosures Location Omission GRI Standards Disclosures Location Omission
Energy The company's business
304-4 IUCN Red List species and national operations sites and
GRI 304: conservation list species with habitats in Not Covered In This Report surrounding regions
Addressing Climate Change Biodiversity 2016 areas affected by operations do not involve affected
Pollution Prevention and habitats
GRI 3: Material 3-3 Management of material topics Ecosystem Protection
Topics 2021 Resource Utilization and
Circular Economy Emissions
Addressing Climate Change Addressing Climate Change
302-1 Energy consumption GRI 3: Material Pollution Prevention and
Data Overview 3-3 Management of material topics
Topics 2021 Ecosystem Protection
Data Overview
302-2 Energy consumption outside of the Addressing Climate Change
organization Data Overview
GHG Emissions Management
305-1 Direct (Scope 1) GHG emissions Data Overview
302-3 Energy consumption outside of the Addressing Climate Change
organization Data Overview
305-2 Energy indirect (Scope 2) GHG GHG Emissions Management
GRI 302: Energy emissions Data Overview
2016 Addressing Climate Change
302-3 Energy intensity Data Overview
305-3 Other indirect (Scope 3) GHG GHG Emissions Management
GHG Emissions Reduction emissions Data Overview
Schemes
302-4 Reduction of energy consumption Resource Utilization and GRI 305: Emissions GHG Emissions Management
Circular Economy 305-4 GHG emissions intensity
2016 Data Overview
302-5 Reductions in energy requirements of GHG Emissions Reduction GHG Emissions Reduction
products and services Schemes 305-5 Reduction of GHG emissions Schemes
Water and effluents 305-6 Emissions of ozone-depleting Not Covered In This Report Not involved in related
substances (ODS) emissions
Pollutants Emissions Control
GRI 3: Material 305-7 Nitrogen oxides (NOx), sulfur oxides
3-3 Management of material topics Water Resources Data Overview
Topics 2021 (SOx), and other significant air emissions
Management
Pollutants Emissions Control Waste
303-1 Management of water discharge- Water Resources
related impacts Management
GRI 3: Material 3-3 Management of material topics Pollutants Emissions Control
Topics 2021
Pollutants Emissions Control
303-2 Management of water discharge- Water Resources 306-1 Waste generation and significant
related impacts Pollutants Emissions Control
Management waste-related impacts
GRI 303: Water and
Effluents 2018
303-3 Water withdrawal Data Overview Pollutants Emissions Control
306-2 Management of significant waste- Implementation of Circular
related impacts Economy Practices
303-4 Water discharge Data Overview Resource Recycling
303-5 Water consumption Data Overview Pollutants Emissions Control
GRI 306: Waste 306-3 Waste generated Data Overview
2020
Biodiversity Pollutants Emissions Control
Implementation of Circular
GRI 3: Material 306-4 Waste diverted from disposal Economy Practices
3-3 Management of material topics Biodiversity Conservation
Topics 2021 Resource Recycling
Data Overview
The company's business
operation sites are
304-1 Operational sites owned, leased, Pollutants Emissions Control
neither within nor 306-5 Waste directed to disposal
managed in, or adjacent to, protected areas Data Overview
Not Covered In This Report adjacent to protected
and areas of high biodiversity value outside areas and areas of high
protected areas biodiversity value outside
protected areas Supplier environmental assessment
GRI 304:
Biodiversity 2016 304-2 Significant impacts of activities, Biodiversity Conservation
products and services on biodiversity
GRI 3: Material 3-3 Management of material topics Responsible Procurement
The company's business Topics 2021
operation sites are not
304-3 Habitats protected or restored Not Covered In This Report located within protected or
restored habitats
137 138
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GRI Standards Disclosures Location Omission GRI Standards Disclosures Location Omission
308-1 New suppliers that were screened 403-8 Workers covered by an occupational Occupational Health and
Responsible Procurement health and safety management system Safety
GRI 308: Supplier using environmental criteria
Environmental
Assessment 2016 308-2 Negative environmental impacts in GRI 403: Occupational Health
Responsible Procurement Occupational Health 403-9 Work-related injuries Management
the supply chain and actions taken
and Safety 2018 Data Overview
Employee Occupational Health
403-10 Work-related ill health Management
GRI 3: Material 3-3 Management of material topics Human Rights Protection
Topics 2021
Training and education
401-1 New employee hires and employee Human Rights Protection
turnover Data Overview GRI 3: Material 3-3 Management of material topics Employee Development
Topics 2021
401-2 Benefits provided to full-time
GRI 401: 404-1 Average hours of training per year per Employee Development
employees that are not provided to Employee Development
Employment 2016 employee Data Overview
temporary or part-time employees
Employee Development 404-2 Programs for upgrading employee
401-3 Parental leave GRI 404: Training Employee Development
Data Overview and Education 2016 skills and transition assistance programs
404-3 Percentage of employees
Labor management relations receiving regular performance and career Employee Development
development reviews
GRI 3: Material 3-3 Management of material topics Human Rights Protection
Topics 2021
Diversity and equal opportunity
GRI 402: Labor/ 402-1 Minimum notice periods regarding GRI 3: Material
Management Not Covered In This Report Not Applicable 3-3 Management of material topics Human Rights Protection
operational changes Topics 2021
Relations 2016
405-1 Diversity of governance bodies and
Occupational Health and Safety employees Human Rights Protection
GRI 405: Diversity
GRI 3: Material Occupational Health and and Equal
3-3 Management of material topics The Company does not
Topics 2021 Safety Opportunity 2016
405-2 Ratio of basic salary and remuneration co l l e c t re l e va n t d a t a
Not Covered In This Report
of women to men during this report period
403-1 Occupational health and safety Occupational Health and
management system Safety
Safety Risk Prevention and Non-discrimination
Control
403-2 Hazard identification, risk assessment, GRI 3: Material
Workplace Safety Inspection 3-3 Management of material topics Human Rights Protection
and incident investigation Topics 2021
Emergency Safety
Management
GRI 406: Non- 406-1 Incidents of discrimination and
Human Rights Protection
discrimination 2016 corrective actions taken
Employee Benefits
Occupational Health
403-3 Occupational health services Freedom of association and collective bargaining
Management
Safety Training Education
GRI 3: Material Human Rights Protection
3-3 Management of material topics
403-4 Worker participation, consultation, Topics 2021 Responsible Procurement
Occupational Health and
and communication on occupational health
GRI 403: and safety Safety GRI 407: Freedom
Occupational Health 407-1 Operations and suppliers in which
of Association Human Rights Protection
and Safety 2018 the right to freedom of association and
and Collective Responsible Procurement
403-5 Worker training on occupational collective bargaining may be at risk
Safety Training Education Bargaining 2016
health and safety
Child labor
Employee Benefits
Occupational Health GRI 3: Material Human Rights Protection
403-6 Promotion of worker health 3-3 Management of material topics
Management Topics 2021 Responsible Procurement
Safety Training Education
GRI 408: Child 408-1 Operations and suppliers at Human Rights Protection
Safety Risk Prevention and Labor 2016 significant risk for incidents of child labor Responsible Procurement
Control
Workplace Safety Inspection
403-7 Prevention and mitigation of Forced or compulsory labor
Emergency Safety
occupational health and safety impacts Management
directly linked by business relationships Safety Training Education
Occupational Health GRI 3: Material Human Rights Protection
3-3 Management of material topics
Management Topics 2021 Responsible Procurement
139 140
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GRI Standards Disclosures Location Omission GRI Standards Disclosures Location Omission
GRI 409: Forced or 409-1 Operations and suppliers at
Compulsory Labor significant risk for incidents of forced or Human Rights Protection Marketing and labeling
Responsible Procurement
2016 compulsory labor
GRI 3: Material 3-3 Management of material topics Responsible Marketing
Topics 2021
Security practices
417-1 Requirements for product and service
GRI 3: Material Responsible Marketing
3-3 Management of material topics Human Rights Protection information and labeling
Topics 2021
417-2 Incidents of non-compliance
The Company does not GRI 417: Marketing
GRI 410: Security 410-1 Security personnel trained in human concerning product and service information Responsible Marketing
Not Covered In This Report collect relevant data and Labeling 2016
Practices 2016 rights policies or procedures and labeling
during this report period
417-3 Incidents of non-compliance Responsible Marketing
Right of indigenous peoples concerning marketing communications
GRI 3: Material 3-3 Management of material topics Rural Revitalization and Public Customer privacy
Topics 2021 Service
GRI 411: Rights of Customer Rights Protection
411-1 Incidents of violations involving rights Engage in Community and GRI 3: Material
Indigenous Peoples 3-3 Management of material topics Information Security
of indigenous peoples Preserve Cultural Heritage Topics 2021
2016 Protection
Local communities GRI 418: Customer 418-1 Substantiated complaints concerning Information Security
breaches of customer privacy and losses of Protection
Privacy 2016 customer data Data Overview
GRI 3: Material Rural Revitalization and Public
3-3 Management of material topics
Topics 2021 Service
413-1 Operations with local community Rural Revitalization and Public
engagement, impact assessments, and Service
development programs
GRI 413: Local
Communities 2016
413-2 Operations with significant actual
and potential negative impacts on local Not Covered In This Report Not Applicable
communities
Supplier social assessment
Responsible Procurement
GRI 3:Material 3-3 Management of material topics Supply Chain Risk
Topics 2021 Management
414-1 New suppliers that were screened Responsible Procurement
GRI 414: Supplier using social criteria Data Overview
Social Assessment
2016 414-2 Negative social impacts in the supply Responsible Procurement
chain and actions taken
Public policy
GRI 3: Material 3-3 Management of material topics Not Covered In This Report Not Applicable
Topics 2021
GRI 415: Public 415-1 Political contributions Not Covered In This Report Not Applicable
Policy 2016
Customer health and safety
GRI 3: Material Product Quality Management
3-3 Management of material topics
Topics 2021 Customer Rights Protection
416-1 Assessment of the health and safety Product Quality Management
impacts of product and service categories Customer Rights Protection
GRI 416: Customer
Health and Safety
2016 416-2 Incidents of non-compliance Product Quality Management
concerning the health and safety impacts of Customer Rights Protection
products and services
141 142
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ISDS Index
IFRS S1
Core Core
Disclosure Recommendations Disclosure Placement Disclosure Recommendations Disclosure Placement
Elements Elements
Sustainable Development Governance a) The processes and related policies the
a) The governance body(s) (which can include aboard,
Structure entity uses to identify, assess, prioritize and
committee or equivalent body charged with governance)
Appointment of Directors and Senior monitor sustainability-related risks, including
or individual(s) responsible for oversight of sustainability-
Management information about: the inputs and parameters
related risks and opportunities.
Risk and Compliance Management the entity uses, whether and how the entity uses Sustainable Development Risk Management
Governance scenario analysis to inform its identification of Risk and Compliance Management
Sustainable Development Governance sustainability-related risks, whether and how the
b) Management’s role in the governance processes, Structure entity prioritizes sustainability-related risks, how
controls and procedures used to monitor, manage and Appointment of Directors and Senior the entity assesses the nature, likelihood and
oversee sustainability-related risks and opportunities. Management magnitude of the effects of those risks.
Risk and Compliance Management
a) The sustainability-related risks and opportunities b) The processes the entity uses to identify,
that could reasonably be expected to affect the entity’s Sustainable Development Risk assess, prioritize and monitor sustainability-
prospects within the time horizons—short, medium or long Management Risk Management related opportunities, including: whether and
Sustainable Development Risk Management
term. how the entity uses scenario analysis to inform
its identification of sustainability-related
opportunities.
b) The current and anticipated effects of sustainability-
related risks and opportunities on the entity’s business
Sustainable Development Risk
model and value chain, and where in the entity’s business
Management
model and value chain sustainability-related risks and
opportunities are concentrated. c) The extent to which, and how, the processes
the entity uses to identify, assess, prioritize
Sustainable Development Risk Management
and monitor sustainability-related risks and
c) How the entity has responded to, and plans to respond Risk and Compliance Management
opportunities are integrated into and inform the
to, sustainability-related risks and opportunities in its
entity’s overall risk management process.
strategy and decision-making, and the progress against
Sustainable Development Risk
plans the entity has disclosed in previous reporting
Management
periods, including quantitative and qualitative information,
and trade-offs between sustainability-related risks and
Strategy opportunities that the entity considered.
Environmental
a) Metrics required by an applicable IFRS
d) The quantitative and qualitative effects of sustainability- Social
Sustainability Disclosure Standard.
related risks and opportunities on the entity’s financial Governance
position, financial performance and cash flows for the
reporting period, and the sustainability-related risks and
opportunities identified for which there is a significant risk
of a material adjustment within the next annual reporting b) Metrics the entity uses to measure and monitor
Not Applicable Environmental
period to the carrying amounts of assets and liabilities Metrics and sustainability-related risks or opportunities and
Social
reported in the related financial statements, and how the targets its performance in relation to that sustainability-
Governance
entity expects its financial position, financial performance related risk or opportunity.
and cash flows to change over the short, medium and long
term, given its strategy to manage sustainability-related
risks and opportunities.
Environmental
c) Any targets the entity has set it is required to
Social
e) The resilience of the entity’s strategy and its business Sustainable Development Risk meet by law or regulation.
Governance
model to those sustainability-related risks. Management
143 144
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IFRS S2
Core Core
Disclosure Recommendations Disclosure Placement Disclosure Recommendations Disclosure Placement
Elements Elements
Sustainable Development Governance d) The processes and related policies the entity
a) The governance body(s) (which can include a board, Structure uses to identify, assess, prioritize and monitor
committee or equivalent body charged with governance) Appointment of Directors and Senior
or individual(s) responsible for oversight of climate- climate-related risks, including information
Management
related risks and opportunities. about: the inputs and parameters the entity uses,
Risk and Compliance Management
Governance whether and how the entity uses climate-related Sustainable Development Risk Management
Sustainable Development Governance scenario analysis to inform its identification of Risk and Compliance Management
b) Management’s role in the governance processes, Structure climate-related risks, whether and how the entity
controls and procedures used to monitor, manage and Appointment of Directors and Senior
oversee climate-related risks and opportunities. Management prioritizes climate-related risks, how the entity
Risk and Compliance Management assesses the nature, likelihood and magnitude of
the effects of those risks.
a) The climate-related risks and opportunities that could
reasonably be expected to affect the entity’s prospects e) The processes the entity uses to identify,
Sustainable Development Risk Risk Management
within time horizons—short, medium or long term, assess, prioritize and monitor climate-related
Management
whether the entity considers the risk to be a climate-
related physical risk or climate-related transition risk. opportunities, including information about
Sustainable Development Risk Management
whether and how the entity uses climate-related
scenario analysis to inform its identification of
b) The current and anticipated effects of climate-related climate-related opportunities.
risks and opportunities on the entity’s business model Sustainable Development Risk
and value chain, and where in the entity’s business model Management
and value chain climate-related risks and opportunities f) The extent to which, and how, the processes for
are concentrated.
identifying, assessing, prioritizing and monitoring
Sustainable Development Risk Management
climate-related risks and opportunities are
c) Information about how the entity has responded Risk and Compliance Management
integrated into and inform the entity’s overall risk
to, and plans to respond to, climate-related risks and
opportunities in its strategy and decision-making, Sustainable Development Risk management process.
including how the entity sets targets, how the entity is Management
resourcing and quantitative and qualitative information
about the disclosed progress of plans. a) The cross-industry metric categories of
greenhouse gas emissions, internal carbon
prices, the percentage of executive management
d) The quantitative and qualitative effects of those GHG Emissions Management
climate-related risks and opportunities on the entity’s remuneration recognized in the current period
GHG Emissions Reduction Schemes
Strategy financial position, financial performance and cash flows that is linked to climate-related considerations,
for the reporting period, the climate-related risks and Sustainable Development Risk Management
opportunities identified in paragraph 16(a) for which capital deployment towards climate-related risks
Sustainable Development Governance Structure
there is a significant risk of a material adjustment within and opportunities, the amount and percentage
Not Applicable
the next annual reporting period to the carrying amounts of assets or business activities vulnerable to
of assets and liabilities reported in the related financial
statements, and how the entity expects its financial climate-related risks and opportunities.
position, financial performance and cash flows to change
over the short, medium and long term, given its strategy
to manage climate-related risks and opportunities.
Metrics and b) Industry-based metrics that are associated
targets with one or more particular business models,
GHG Emissions Management
activities or other common features that
e) The entity’s assessment of its climate resilience, characterize participation in an industry.
including the entity’s assessment for its strategy and
business model, the significant areas of uncertainty
considered in the entity’s assessment of its climate
resilience and the entity’s capacity to adjust or adapt its
strategy and business model to climate change over the Sustainable Development Risk
short, medium and long term. The entity shall use climate- c) The quantitative and qualitative climate-related
Management
related scenario analysis to assess its climate resilience targets the entity has set or it is required to meet Environmental
and disclose how and when the climate-related scenario
analysis was carried out, including information about the by law or regulation, progress towards reaching Social
inputs the entity used, the key assumptions the entity the target, information about its performance, Governance
made in the analysis and the reporting period in which
the climate-related scenario analysis was carried out. and each greenhouse gas emissions target.
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SASB Index
SASB Topics Accounting Metrics Location SASB Topics Accounting Metrics Location
CG-MR-130a.1: CG-MR-410a.3:
Energy Management in (1)Total energy consumed Description of strategies to reduce the Emissions Reduction Schemes
Data Overview
Retail & Distribution (2)Percentage grid electricity environmental impact of packaging
(3)Percentage renewable energy
CG-MR-230a.1: Product sourcing, CG-MR-000.A:
Discussion of management approach to Information Security Protection Packaging, and (1)Number of retail locations Not Applicable
identifying and addressing data security risks Marketing (2)Number of distribution centers
Data Security
CG-MR-230a.2: CG-MR-000.B:
(1)Number of data security breaches Total area of (m2):
The Company does not collect Not Applicable
(2)Percentage involving customers’personally (1)Retail space
relevant data during this report period
identifiable information (PII) (2)Distribution centers
(3)Number of customers affected
CG-MR-310a.1:
(1)Average hourly wage
Not Covered In This Report
(2)Percentage of in-store employees earning
minimum wage, by region
CG-MR-310a.2:
Employee turnover rate for in-store employees
Fair Labor Practices Not Covered In This Report
(1)Voluntary
(2)Involuntary
Amount of legal and regulatory fines and
Human Rights Protection
settlements associated with labor law violations
CG-MR-330a.1:
Percentage of gender and racial/ethnic group
Human Rights Protection
representation for
Data Overview
(1)Management
Workforce Diversity & (2)All other employees
Inclusion
CG-MR-330a.2:
Amount of legal and regulatory fines and
Human Rights Protection
settlementsassociated with employment
discrimination
CG-MR-410a.1:
Revenue from products third-party certified The Company does not collect
to environmental and/or social sustainability relevant data during this report period
Product sourcing, standards
Packaging, and
Marketing CG-MR-410a.2:
Description of processes to assess and manage Pollution Prevention and Ecosystem
risks and/or hazards associated with chemicals in Protection
products
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Indicators Reference for ESG Reports of Listed Primary Indicators Secondary Indicators Tertiary Indicators Location
Chinese Central State-Owned Enterprises E.2.1.3 The compliance status of
Data Overview
wastewater dischargez
Environment
E.2.1.4 Volume of pollutants
E.2.1 Wastewater Data Overview
discharged in wastewater
Primary Indicators Secondary Indicators Tertiary Indicators Location
E.2.1.5 Concentration of pollutants
Data Overview
discharged in wastewater
E.1.1.1 Fresh-water consumption Data Overview
E.2.2.1 Compliance status of Pollutants Emissions
exhaust gas emissions Control
E.1.1.2 Circulating water usage Data Overview
E.1.1 Water Resource E.2.2.2 Volume of air pollutants
E.2.2 Exhaust Air Data Overview
E.1.1.3 The proportion of emitted
circulating water usage Data Overview
E.2 Pollution prevention and E.2.2.3 Concentration of air Pollutants Emissions
E.1.1.4 Water resource Data Overview control pollutants emitted Control
consumption intensity
E.2.3.1 Compliance with legal Pollutants Emissions
E.1.2.1 Consumption of non- Data Overview regulations on solid waste disposal Control
renewable materials
E.2.3.2 Management of general Pollutants Emissions
E.1.2 Materials E.1.2.2 Consumption of toxic and Not Covered In This industrial solid waste Control
hazardous materials Report
E.1.2.3 Material consumption E.2.3.3 Disposal volume of general Pollutants Emissions
Data Overview E.2.3 Solid waste
intensity industrial solid waste Control
E.1 Resource Consumption GHG Emissions E.2.3.4 Management of hazardous Pollutants Emissions
E.1.3.1 Fossil energy consumption ManagementData waste Control
Overview
E.2.3.5 Volume of hazardous waste
GHG Emissions Data Overview
E.1.3.2 Non-fossil energy disposed
consumption ManagementData
Overview
E.3.1.1 Sources and types of GHG GHG Emissions
E.1.3 Energy E.1.3.3 The proportion of non- emissions Management
fossil energy consumption Data Overview
E.3.1.2 GHG Emissions
GHG Emissions
GHG Emissions Management Management of
E.1.3.4 The total energy Management
consumption ManagementData greenhouse gas emissions
Overview
GHG Emissions
E.1.3.5 The energy consumption Data Overview E.3.1.3 Scope 1 emission Management
intensity Data Overview
E.3 Climate change E.3.1 GHG emissions
E.1.4.1 The amount of packaging Resource Recycling GHG Emissions
materials used Data Overview
E.3.1.4 Scope 2 emission Management
E.1.4 Packaging materials Data Overview
E.1.4.2 Light-weighting and Resource Recycling
reduction of packaging materials
E.3.1.5 Scope 3 emission Data Overview
E.2.1.1 The compliance status of Pollutants Emissions
wastewater discharge Control
E.2 Pollution prevention and E.2.1 Wastewater GHG Emissions
control E.3.1.6 GHG emission intensity Management
E.2.1.2 Wastewater management Pollutants Emissions Data Overview
and emission reduction measures Control
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Primary Indicators Secondary Indicators Tertiary Indicators Location Primary Indicators Secondary Indicators Tertiary Indicators Location
E.3.2.1 Sources and types of GHG GHG Emissions E.5.4.5 Green procurement and
emissions Management Supplier Management
green supply chain management
E.3.2 GHG emissions
E.3.2.2 GHG Emissions Management E.5.4 Green environmental Biodiversity
GHG Emissions
Management of greenhouse gas
emissions Management actions and measures Conservation
E.5.4.6 Environmental Implementation of
conservation public activities Circular Economy
E.3.3.1 Participation in the carbon Not Covered In This Practices
emissions trading market Report Resource Recycling
E.3 Climate change
E.3.3.2 Participation in the energy E.5.5.1 Environmental
E.3.3 Environmental rights Not Covered In This Pollution Prevention and
rights, water rights, and pollution Management System
trading rights trading markets Report Ecosystem Protection
E.5 Measures for resource Certification
and environmental
management systems
E.3.3.3 Participation in green Not Covered In This E.5.5 Green Low-Carbon E.5.5.2 Green and Low-Carbon Not Covered In This
electricity trading Report Certification Enterprise Certification Report
Sustainable Development
E.3.4 Climate risk management E.3.4.1 Climate risk management Risk Management E.5.5.3 Green and Low-Carbon Not Covered In This
Product and Service Certification Report
E.4.1 Impact of production, E.4.1.1 Impacts of production, E.5.6.1 Emergency Response Plan Emergency Safety
E.4 Biodiversity services, and products on Biodiversity Conservation
services, and products on biodiversity for Environmental Incidents Management
biodiversity
E.5.6 Legal compliance in
environmental matters
E.5.1 Setting Low-Carbon E.5.1.1 Setting low-carbon Sustainable Development Environmental
Development Goals and development goals and strategic E.5.6.2 Environmental violations
Framework Performance
Strategic Measures measures
Water Resources
E.5.2.1 Water resource management Management
Green Products Design
and R&D
E.5.2 Resource management E.5.2.2 Material use management Implementation of Circular
measures Economy Practices
Resource Recycling
Social
GHG Emissions
E.5.2.3 Energy use and energy Management
efficiency management GHG Emissions Reduction Primary Indicators Secondary Indicators Tertiary Indicators Location
Schemes
E.5.3 Energy-saving and carbon Human Rights
E.5.3.1 Energy-saving and carbon Energy-saving and S1.1.1 Corporate recruitment Protection
E.5 Measures for resource and reduction monitoring, statistical reduction monitoring, statistical Emission-reduction
environmental management reporting, and assessment reporting, and assessment system Actions policy and implementation Employee
systems system Development
Green Products Design S1.1 Employee recruitment Human Rights
and R&D and employment
E.5.4.1 Clean production Pollutants Emissions
S1.1.2 Employee structure Protection
Control Data Overview
Pollutants Emissions S1.1.3 Avoiding child labor and Human Rights
Control S1 Employee rights forced labor Protection
E.5.4.2 Green technology upgrading Implementation of Circular
and recycling Economy Practices
E.5.4 Green environmental Resource Recycling
actions and measures Human Rights
S1.2.1 Compensation philosophy Protection
and policy Employee
Green Products Design Development
E.5.4.3 Green building renovation and R&D
S1.2 Employee
compensation and benefits
Energy-saving and Employee
Emission-reduction S1.2.2 Working hours and rest Development
E.5.4.4 Green office and operations and leave Occupational Health
Actions
Resource Recycling and Safety
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Primary Indicators Secondary Indicators Tertiary Indicators Location Primary Indicators Secondary Indicators Tertiary Indicators Location
S1.2.3 Compensation and benefits Employee Development
security S2.1.3 Product recall and withdrawal Not Covered In this Report
S1.2 Employee compensation
and benefits S2.1 Product safety and
S1.2.4 Employee democratic Human Rights quality Product Quality
management Protection S2.1.4 Negative incidents related to Management
products or services Customer Rights
Protection
S1.3.1 Employee occupational health Occupational Health
and safety management and Safety
S2.2.1 Customer satisfaction Customer Rights
Occupational Health Protection
S1.3.2 Employee safety risk prevention and Safety
S1.3 Employee health and
safety S2.2.2 Customer complaints and Customer Rights
S1.3.3 Response to safety incidents Occupational Health S2.2 Customer service and Protection
and work-related injuries and Safety handling Data Overview
rights
Occupational Health Customer Rights
S1.3.4 Employee care and assistance and Safety S2 Product and service
management S2.2.3 Customer information and Protection
Employee Development privacy protection Information Security
Protection
S1.4.1 Employee motivation and Human Rights
promotion policy Protection
S1 Employee rights Employee Development S2.3.1 R&D and innovation Product Development
management system and Innovation
Supply Chain Risk
Management
Information Security S2.3.2 R&D investment Product Development
Protection and Innovation
S1.4 Employee development S1.4.2 Employee education and Responsible Marketing
and training training Human Rights S2.3 Innovation development
Protection
Employee Development S2.3.3 Innovation achievements Product Development
Occupational Health and Innovation
and Safety
S1.4.3 Employee career planning and Employee Development S2.3.4 Intellectual property Intellectual Property
job change support Data Overview protection Rights Protection
S1.5.1 Employee satisfaction survey Not Covered In this Report S3.1.1 Supplier selection and Responsible
management Procurement
S1.5.2 Labor disputes Human Rights S3.1 Supplier Management
S1.5 Employee satisfaction Protection
S3.1.2 Number and distribution of Data Overview
suppliers
Human Rights
S1.5.3 Employee turnover situation Protection
Data Overview
S3 Supply Chain Safety and S3.2.1 Supply chain management Supply Chain Risk
Management policies and measures Management
Innovation-Driven,
S2.1.1 Production standard Suppliers, and Customers
management policies and measures Occupational Health and
Safety S3.2 Supply Chain Responsible
S2 Product and service Management S3.2.2 Supply chain security Procurement
management S2.1 Product safety and quality assurance and emergency plan Supply Chain Risk
Management
S2.1.2 Quality management Product Quality
Management
S3.2.3 Major risks and impacts Supply Chain Risk
(supply chain) Management
S4 Social contribution S4.1 Tax payment situation S4.1.1 Tax payment situation Tax Compliance
Management
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Primary Indicators Secondary Indicators Tertiary Indicators Location
Governance
Primary Indicators Secondary Indicators Tertiary Indicators Location
S4.2.1 Policies and measures for Rural Revitalization
participating in local community and Public Service
construction Sustainable
S4.2 Community co-building Development
G1.1.1 Governance strategy Governance Structure
S4.2.2 Contribution and impact on Rural Revitalization formulation Shareholders' Rights and
the local community and Public Service Interests
Sustainable
Development Framework
C&D Warmth
S4.3.1 Policies and measures for Conveying to Sustainable Development
participating in social welfare Children Governance Structure
activities Go Beyond in Social G1.1 Governance strategy and G1.1.2 Governance strategy Stakeholders
Welfare processes supervision process Communication
Risk and Compliance
Management
C&D Warmth
S4.3.2 Investment and Conveying to Protection of Minority
effectiveness in participating in Children G1.1.3 Governance strategy Shareholders' Rights and
social welfare activities Go Beyond in Social approval and review process Interests
Welfare
S4.3 Social welfare activities Data Overview
G1.1.4 Party-building leadership Not Covered In This Report
Engage in
Community and
Preserve Cultural Protection of Minority
S4.3.3 Construction of an Heritage Shareholders' Rights and
accessible environment C&D Warmth G1.2.1 Ownership responsibilities Interests
Conveying to Risk and Compliance
Children Management
Go Beyond in Social G1 Governance strategy and
Welfare organizational structure
Sustainable Development
G1.2.2 Board of directors, Governance Structure
G1.2 Organizational supervisory board, and Appointment of Directors
Support Livelihoods composition and functions management organizational and Senior Management
S4 Social contribution with Stabilized structure and functions Protection of Minority
Supply Shareholders' Rights and
S4.4.1 Industrial transformation Product Development Interests
and Innovation
Support Industry
Development G1.2.3 Appointment procedures
and composition of the board of Appointment of Directors
directors, supervisory board, and and Senior Management
management
Promote Virtuous
Deeds and Revitalize
Rural Areas Compensation of
Support Livelihoods G1.3.1 Compensation plan for Director and Senior
S4.4.2 Rural revitalization and with Stabilized directors and supervisors Management
regional collaborative development Supply
Engage in
Community and
Preserve Cultural G1.3.2 Transparency of the board's Compensation of Director
Heritage compensation and Senior Management
Data Overview G1.3 Compensation
S4.4 National strategy management
response
Support Livelihoods Compensation of
with Stabilized G1.3.3 Reasonableness of Director and Senior
Supply management compensation Management
S4.4.3 Belt and Road initiative and Employee
overseas responsibility fulfillment Development
Support Industry
Development
Data Overview
G2.1.1 Internal audit Risk and Compliance
Management
Innovation-Driven,
Suppliers, and G2 Standardized governance G2.1 Internal control
Customers
S4.4.4 Industry characteristics Promote Virtuous Deeds G2.1.2 Internal control structure, Risk and Compliance
and other social responsibility and Revitalize Rural mechanisms, and processes Management
fulfillment situations Areas
Support Livelihoods
with Stabilized Supply
Data Overview
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Primary Indicators Secondary Indicators Tertiary Indicators Location Primary Indicators Secondary Indicators Tertiary Indicators Location
G5.1.2 Construction status of the Risk and Compliance
G2.2.1 Integrity construction system Anti-Corruption and Anti- compliance system Management
standards Commercial Bribery
G5.1 Compliant operation
G2.2 Integrity construction
G5.1.3 Specific process of Risk and Compliance
compliance review Management
G2.2.2 Effectiveness of integrity Anti-Corruption and Anti-
construction measures Commercial Bribery
Risk and Compliance
Management
G2 Standardized governance G5.2.1 Risk identification and
Anti-Monopoly and Anti- Sustainable
early warning
Unfair Competition Development Risk
G2.3.1 Fair competition system standards Complaint Mechanism and Management
Whistleblower Protection G5 Compliant operation and
System risk management
G2.3 Fair competition
Risk and Compliance
Anti-Monopoly and Anti- Management
G2.3.2 Effectiveness of fair competition Unfair Competition G5.2 Risk management G5.2.2 Risk control and tracking Sustainable
measures Anti-Corruption and Anti- Development Risk
Commercial Bribery Management
G3.1.1 Investor relations management Protection of Minority Sustainable
Shareholders' Rights and Development Risk
strategy G5.2.3 Risk reporting and
Interests Management
management Risk and Compliance
Management
Protection of Minority
G3.1 Investor relations management G3.1.2 Investor communication Shareholders' Rights and
Interests
Protection of Minority
G3.1.3 Construction of investor relations Shareholders' Rights and
management department Interests
Protection of Minority
G3.2.1 Shareholder (general) meeting Shareholders' Rights and
G3 Investor relations management situation Interests
and shareholder rights
Protection of Minority
G3.2.2 Shareholder communication Shareholders' Rights and
G3.2 Shareholder rights situation Interests
Stakeholders Communication
Protection of Minority
G3.2.3 Shareholder's right to know and Shareholders' Rights and
participate in decision-making Interests
G3.3.1 Credit situation Not Covered In This Report
G3.3 Creditor rights
G3.3.2 Bond market performance situation Not Covered In this Report
Protection of Minority
G4.1.1 Financial information disclosure Shareholders' Rights and
Interests
G4.1 Information disclosure system
G4 Information disclosure G4.1.2 Non-financial information Protection of Minority
transparency disclosure Shareholders' Rights and
Interests
G4.2 Quality of information G4.2.1 Regular supervision, audit, and Not Covered In This Report
disclosure evaluation of all disclosed information
Risk and Compliance
G5 Compliant operation and risk Management
G5.1 Compliant operation G5.1.1 Compliant operation system
management Anti-Corruption and Anti-
Commercial Bribery
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Independent Limited Assurance Report
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Address: 29th Floor, jianfa linternational Building, No.1699 Huandao East Road, siming District, Xiamen, fujian Province, China
Post code:361008
Fax:0592-2592459
Tel: 0592-2132319
website:http://www.chinacnd.com