建发股份:XiamenC&DInc.2025

CONTENTS

Environmental Social Governance

About This Report 01 Climate Response 29 Rural Revitalization and Contributions to the Society 67 Risk and Compliance Management 113

Message from the Chairman 03 Energy Usage 49 Innovation-driven 75 Commercial Behaviors 117

About C&D Inc. 05 Usage of Water Resources 51 Suppliers and Clients 79

2025 Sustainable Development Impact 07 Pollutant Discharge 53 Employees 95

2025 Honors and Awards 08 Waste Disposal 57 Data Overview 125

Management of Material Topics 09 Environmental Compliance Management 59 Guidelines No. 14 of Shanghai Stock Exchange for 132

Self-Regulation of Listed Companies-Sustainability

Communications with Stakeholders 19 Circular Economy 61 Report (Trial) Index

Sustainability-Related Governance 21 Ecosystem and Biodiversity Protection 64 SASB Index 133

Indicators Reference for ESG Reports of Listed 134

Chinese Central State-Owned Enterprises Index

ESRS Index 141

ISSB Index 145

Independent Assurance Statement 147

Together Go BeyondA关bo于u本t T报hi告s M董e事ssa长ge致 fr辞om 关Ab于ou建t C发&D股 In份c. 20242年02可5 S持u续sta发ina展bl影e 响力 220245 H年o可no持rs 续an发d A展w荣ard誉s 重M要an性ag议em题en管t o理f 利Co益m相mu关n方ica沟tio通ns 可持S续us发ta展ina治bi理lity-Related 02

Report the Chairman Development Impact Material Topics with Stakeholders Governance

About This Report

This is the 2025 Sustainability Report ("this report") released by Xiamen C&D Inc. (referred to as "C&D Inc." or "We"). The purpose of Explanatory Note

this report is to provide stakeholders with an overview of C&D Inc.'s management efforts in environmental social and governance

aspects in 2025 as well as the initiatives and achievements towards advancing the United Nations Sustainable Development Goals.Abbreviation Full Name

C&D Inc. or We Xiamen C&D Inc.Reference Guidelines

C&D Group Xiamen C&D Corp. Ltd. controlling shareholder of C&D Inc.This report is compiled in accordance with the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed

C&D Real Estate C&D Real Estate Corp. Ltd. subsidiary of C&D Inc.Companies - Sustainability Report (Trial); the Guide No. 4 for Self-Regulatory Supervision on Listed Companies of the SSE

- Compilation of Sustainable Development Reports (Revised January 2026) issued by the Shanghai Stock Exchange; the Lianfa Group Lianfa Group Co.Ltd. subsidiary of C&D Inc.Sustainability Disclosure Standards for Enterprise - General Requirements (Trial) and the Sustainability Disclosure Standards

C&D Logistics C&D Logistics Group Co. Ltd. wholly-owned subsidiary of C&D Inc.for Enterprises No. 1 - Climate (Trial) jointly formulated by the Ministry of Finance of the People's Republic of China the Ministry

of Foreign Affairs the National Development and Reform Commission the Ministry of Industry and Information Technology Steel & Iron Group One of the seven major specialized groups of C&D Inc. including Xiamen C&D Material Co. Ltd. Xiamen C&D Metals Co.Ltd. C&D (Shanghai) Co. Ltd. and Cheongfuli (Xiamen) Co.Ltd. and Xiamen C&D Mineral Resources Co. Ltd.the Ministry of Ecology and Environment the Ministry of Commerce the People's Bank of China the State-owned Assets

Supervision and Administration Commission of the State Council (SASAC) the National Financial Regulatory Administration and Paper & Pulp Group One of the seven major specialized groups of C&D Inc. including Xiamen C&D Paper & Pulp Group Co. Ltd.the China Securities Regulatory Commission; the Sustainability Accounting Standards Board (SASB) Standards; the Reference

Agricultural Products Group One of the seven major specialized groups of C&D Inc. including Xiamen C&D Commodities Limited. Xiamen

Indicator System for ESG Special Reports of Central State-Owned Enterprise-Controlled Listed Companies issued by the C&D LIANGYUAN Agriculture Co. Ltd. and Xiamen C&D JY Supply Chain Co. Ltd.Research Center of the State-owned Assets Supervision and Administration Commission of the State Council; as well as the two Universal Pulp and Paper Universal Pulp and Paper (Shandong) Co. Ltd.subsidiary of C&D Inc.International Financial Reporting Standards Sustainability Disclosure Standards (IFRS S1 and IFRS S2) issued by the International

C&D Clean Energy Nanjing C&D Clean Energy Co.Ltd. wholly-owned subsidiary of C&D Inc.Sustainability Standards Board (ISSB). Additionally this report incorporates disclosure requirements aligned with the United

Nations Sustainable Development Goals (SDGs). MACALLINE Red Star Macalline Group Corporation Ltd. (Stock Code: 601828.SH) subsidiary of C&D Inc.Zhongli Group Jiangsu Zhongli Group Co. Ltd. (Stock Code: 002309.SZ) subsidiary of C&D Inc.Reporting Scope C&D Emerging Energy Xiamen C&D Emerging Energy Co. Ltd. subsidiary of C&D Inc.C&D Property C&D Property Management Group Co. Ltd. (stock code: 2156.HK)subsidiary of C&D Real Estate Corporation

The reporting period is between January 1 2025 and December 31 2025 and some parts of the report may be beyond the Limited

aforementioned scope considering the continuity and comparability of disclosures. The economic environmental and social

data disclosed in this report includes all enterprises within the scope of the consolidated statement of Xiamen C&D Inc.Report Availability and Feedback

We released this report in electronic format in both Simplified Chinese and English. In case of any inconsistencies between the

External Assurance

Chinese and English versions the Chinese version shall prevail. The electronic version of the report is available on our official

website (www.chinacnd.com) and the Shanghai Stock Exchange website (www.sse.com.cn). We are committed to improving

RSM China CPA LLP independently guarantees the environmental social and corporate governance performance key indicators our environmental social and corporate governance performance and if you have any comments or suggestions on this report

in this report. please get in touch with us at compliance@chinacnd.com.

01 Xiamen C&D Inc. 2025 Sustainability ReportA关b于ou本t T报his告 M董e事ss长ag致e f辞rom 关于Ab建ou发t C股&D份 Inc. 2024 年20可25持 Su续sta发in展ab影le 响力 220245 H年o可no持rs 续an发d A展w荣ard誉s 重M要an性ag议em题en管t o理f 利Co益m相mu关n方ica沟tio通ns 可持S续us发ta展ina治bi理lity-Related 04

Report the Chairman Development Impact Material Topics with Stakeholders Governance

Message from the Chairman

At the historical juncture marking the inaugural year of the accelerating the digital and low-carbon transformation across Foster the warmth of shared progress and build synergy for

15th Five-Year Plan 2025 is not only a foundational year for all sectors on a comprehensive scale: by launching a pulp and inclusive growth.

China as it embarks on a new journey toward high-quality paper carbon footprint accounting platform that covers the entire Talent has always been the primary driving force behind C&D's

development but also a breakthrough year for C&D Inc. to industrial chain we have filled the industry gap in carbon data sustainable growth. We are committed to fostering an equitable

further deepen its sustainable development transformation traceability and secured a voice in shaping international standards; diverse and inclusive workplace ecosystem providing our

and accelerate its progress toward becoming a world-class by deploying distributed photovoltaic systems on a large scale people across the globe with a broad professional platform

operator. We have always upheld the brand philosophy across logistics parks commercial properties and manufacturing through mechanisms such as the "C&D Elite Program" and the

of "Together Go Beyond" and are committed to deeply bases we are steadily increasing the share of clean energy. In our "Global Pioneer Camp." We not only create value through our

integrating the core values of ESG into our dual core real estate business we focus on ultra-low energy consumption business connections but also convey warmth through our

businesses of supply chain operation and real estate. We building technologies reshaping the low-carbon living experience social contributions—from empowering rural revitalization and

address global changes with professional certainty and through systematic energy-efficient design. protecting the Chinese white dolphin to safeguarding the rights

seek answers to sustainable growth amid transformation. and interests of migrant workers and promoting the "Net-Zero

Deepen circular economy development and foster new quality Living Home" consumption scenario. Through these efforts C&D

Uphold high-standard governance and consolidate the productive forces in resource usage Inc. is transforming corporate social responsibility into tangible

foundation of compliant operation By establishing integrated recovery and reuse chains for scrap forces that drive the progress of civilization.With the arrival of the 15th Five-Year Plan period C&D Inc. steel scrap aluminum waste paper and waste oil C&D Inc. is

regards comprehensive governance as the cornerstone committed to becoming a leader in the green circular economy. Cherish enduring vitality to steer steady and far-reaching

for its global expansion and cross-cycle development. By Whether through the nationwide deployment of scrap steel progress.continuously strengthening a risk management framework processing and distribution bases with an annual capacity of Looking ahead to the new journey of the 15th Five-Year Plan

that is professional tiered and process-driven we have millions of tonnes or through the large-scale advancement from period C&D Inc. will continue to connect global resources through

achieved penetrating oversight from the headquarters' industrial-grade mixed oils to biodiesel we leverage our digital and professional services and empower industrial upgrading with its

decision-making level to the front line of operations. We intelligent platform to achieve efficient cross-regional allocation of green foundation. We stand ready to walk side by side with all

firmly believe that only a transparent fair and responsible resources. What we pursue is not merely waste reduction but the stakeholders overcome challenges together and jointly usher in a

governance system can earn the long-term trust of global reshaping of industrial value chains allowing every unit of natural new era of high-quality development.shareholders and partners. resource to unleash its maximum value within a circular system

Chairman of C&D Inc.thereby supporting the national strategy for circular economic

Lin Mao

Leverage digital and green engines to advance development.decarbonization across the entire value chain

Leveraging its "LIFT Supply Chain Service" system we are

03 Xiamen C&D Inc. 2025 Sustainability ReportAbout This Message from About C&D Inc. 2025 Sustainable 2025 Honors and Awards Management of Communications Sustainability-Related 06

Report the Chairman Development Impact Material Topics with Stakeholders Governance

About C&D Inc.C&D Inc. is a modern service-oriented enterprise with

dual main businesses in supply chain operations

and real estate. With the brand philosophy of

" Together Go Beyond" we aim to become a

leading international supply chain operator and a We uphold the brand philosophy of

distinguished real estate developer in China. We are "Together Go Beyond"

dedicated to being an exceptional enterprise that

fosters employee satisfaction customer delight and

societal respect.We actively respond to China's "dual circulation" We continue to deepen the development strategies of

"specialization" and "going global"

strategy by deepening our "specialization" and "going

global" strategies expanding both domestic and

international markets and building a global supply

chain service system to support the development

of an efficient and smooth international circulation

system. We are deeply engaged in the unified We have established domestic platform companies or business operation entities

national market strengthening our presence in East in 29 provinces autonomous regions and municipalities across China

and South China while expanding into central and

western regions. We have established domestic

platform companies or business operation entities in

29 provinces autonomous regions and municipalities We have established over 80+ overseas platform companies

across China. MeanwhileC&D Inc. has established

business relationships with 170+ Countries and

Regions and over 80+ overseas platform companies.In 2025 the scale of the company's overseas business

exceeded 14 Billion USD.Established business relationships with In 2025 the scale of the company's overseas

170+ Countries and Regions business exceeded 14 Billion USD

05 Xiamen C&D Inc. 2025 Sustainability Report 2024 建发股份可持续发展报告A关b于ou本t T报his告董Me事ss长ag致e f辞rom 关于Ab建ou发t C股&D份 Inc. 20242年02可5 持Su续sta发in展ab影le响力 20254 H年o可no持rs续 an发d 展Aw荣ar誉ds 重M要an性ag议em题en管t o理f 利Co益m相mu关n方ica沟tio通ns 可持S续us发ta展ina治bi理lity-Related 08

Report the Chairman Development Impact Material Topics with Stakeholders Governance

2025 Sustainable Development Impact 2025 Honors and Awards

Economic Impact

"2025 Outstanding Sustainable

"2025 Excellent Board Practices of

Development Practice Cases of Listed

Total Asset Operating revenue Listed Companies" "ESG Best Cases" Companies"

73312419 67127043 recognized by China Association for recognized by CCOC and CCPITrecognized by China Association for Public Companies

Public Companies

Ten-thousand CNY Ten-thousand CNY

Net asset Operating costs

1843672863392212

Ten-thousand Ten-thousand CNY Ten-thousand CNY

Top 100 of 2025 A?Share

"China ESG Listed "ESG Pioneer "2025 Best ESG Practices

Listed Companies ESG

SOE Pioneers 100" Enterprise Award" Award for Listed

Social Impact Information Disclosure

recognized by CMG presented by Companies"

recognized by Sino-Securities

Cailianpress.com presented by Valueonline

Total social contributions Including: ·Total tax payment

Index

Total work safety input

1539598 Ten-thousand CNY

3772798 ·Employee compensation： 3600

999060 Ten-thousand CNY

Ten-thousand CNY ·Dividends paid to shareholders： Ten-thousand CNY

368390 Ten-thousand CNY Ranked 69th on the "China Listed

·Interests paid to creditors： "2025 Outstanding Social

862298 Ten-thousand CNY "Best Information Disclosure Award" Companies Brand Value Top 100" Responsibility Award for Listed

·Social donations：3452 Ten-thousand CNY at the 8th China IR Annual Awards jointly released by National Business Companies"

jointly presented by Roadshow China Daily and the China Enterprise

Number of employees Volunteer service hours Employee training hours presented by National Business Daily Research Center of Tsinghua

51318142491639237

and International Road Show Center

University's School of Economics and

hours Managementpersons hours

Environmental Impact "2025 TBB·China Brand

"2025 Exemplary Cases of "Outstanding ESG Practice "2025 ESG Development

Value Top 100" released

ESG Value among A-share Cases" in the 14th " Impact Enterprise"

Total environmental GHG emission intensity Energy intensity Water intensity by the Shanghai Institute

protection input Listed Companies" Golden Wisdom Award" honored by Hexun.com

1570622067879

of Corporate Culture and

by CHINAFUND presented by JRJ.com

Brand Research

tCO e/hundred-million CNY of tce/hundred-million CNY of m

3/hundred-million CNY of

Ten-thousand CNY operating revenue operating revenue operating revenue

07 Xiamen C&D Inc. 2025 Sustainability ReportA关b于ou本t T报his告董Me事ss长ag致e f辞rom 关于Ab建ou发t C股&D份 Inc. 2024 年20可25持 Su续sta发in展ab影le 响力 22002245 年Ho可no持rs续 an发d A展w荣ard誉s 重Ma要na性ge议m题en管t 理of 利Co益m相mu关n方ica沟tio通ns 可持S续us发ta展ina治bi理lity-Related 10

Report the Chairman Development Impact Material Topics with Stakeholders Governance

Management of Material Topics

As a key component of sustainable development management and information disclosure we have systematically conducted our 2025

double materiality assessment of sustainable development topics.In accordance with the assessment methodologies recommended in the 01 Sustainability Disclosure Standards

latest domestic and international sustainable disclosure standards and regulations including the Sustainability Disclosure Standards for

Including the Sustainability Disclosure Standards for Enterprise — General Requirements (Trial) and the Sustainability Disclosure Standards for Enterprises

Enterprise —General Requirements (Trial) and the Sustainability Disclosure Standards for Enterprises No. 1— Climate (Trial) jointly issued No. 1 —Climate (Trial) jointly formulated by the Ministry of Finance of the People's Republic of China the Ministry of Foreign Affairs the National Development

by nine ministries and commissions including the Ministry of Finance the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation and Reform Commission the Ministry of Industry and Information Technology the Ministry of Ecology and Environment the Ministry of Commerce the

of Listed Companies—Sustainability Report (Trial) and its compilation guidelines (revised in January 2026) the European Sustainability People's Bank of China the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) the National Financial Regulatory

Administration and the China Securities Regulatory Commission; the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies

Reporting Standards (ESRS) the Sustainability Accounting Standards Board (SASB) Standards the Reference Indicator System for ESG

—Sustainability Report (Trial) and its compilation guidelines (revised in January 2026) issued by the Shanghai Stock Exchange; the Sustainability Accounting

Special Reports of Central State-Owned Enterprise-Controlled Listed Companies issued by the Research Center of the State-owned Assets Standards Board (SASB) Standards； as well as the two International Financial Reporting Standards Sustainability Disclosure Standards (IFRS S1 and IFRS S2)

Supervision and Administration Commission of the State Council and the IFRS Sustainability Disclosure Standards (IFRS S1 and S2) we issued by the International Sustainability Standards Board (ISSB).identify sustainable development topics that have a material impact on the our long-term value and our stakeholders.We conducted our assessment according to the principle of "double materiality": on one hand from a financial materiality perspective 02 International Initiatives

we analyzed whether each topic has a significant impact on our business model operational development and financial position over the

The United Nations Sustainable Development Goals (SDGs) the 30th Conference of the Parties of the UNFCCC (COP 30) the Due Diligence Guidance for

short medium or long term; on the other hand from an impact materiality perspective we evaluated whether our performance on the

Responsible Business Conduct of Organization for Economic Co-operation and Development (OECD) etc.relevant topics has a significant external impact on the economy society and the environment. In conducting the assessment we also took

into account the findings of materiality analyses from our previous reports. Following systematic identification and screening we ultimately

identified seven topics as "material" and have provided focused discussions on them in the corresponding sections of this report.

03 Economic and Macro-Policy Dynamics

Double Materiality Assessment The National carbon peaking and carbon neutrality goals global temperature controltargetsunder the Paris AgreementScience Based Target initative (S8Ti)

green trade barriers such as the EU's Carbon Border Adjustment Mechanism (CBAM) the Belt and Road Initative digtal and intelligent transtormationsupply

chain restructuring and changes in international trade policiesetc.Step 1 Background Analysis and Topic Identification

04 Market Trends

In identifying sustainability-related topics we comprehensively

The market's continuously rising thresholds for value chain transparency and access certification alongside the demand for diversified customized and

considered the following five categories of key factors: selected green logistics responsiveness.reporting standards international sustainability initiative

priorities global economic and macro policy dynamics industry

and market development trends as well as our own strategic

objectives and development needs. Based on the above we 05 Company Strategy and Development Needs

systematically reviewed and formulate a list of sustainability Anchoring at the new starting point of the 15th Five-Year Plan coordinating the "dual-core business" to cultivate new quality productive forces enhancing

topics closely relevant to our company. resilience for cross-cycle growth strengthening global risk control capabilities and addressing the trend of increasingly stringent industry regulations.

09 Xiamen C&D Inc. 2025 Sustainability ReportA关b于ou本t T报his告董Me事ss长ag致e f辞rom 关于Ab建ou发t C股&D份 Inc. 2024 年20可25持 Su续sta发in展ab影le 响力 22002245 年Ho可no持rs续 an发d A展w荣ard誉s 重Ma要na性ge议m题en管t 理of 利Co益m相mu关n方ica沟tio通ns 可持S续us发ta展ina治bi理lity-Related 12

Report the Chairman Development Impact Material Topics with Stakeholders Governance

List of the Company's Sustainability Topics Step 2-2 Financial Materiality Assessment

Scope of Issues Sustainability Topics We assessed the financial materiality of each topic based on two dimensions including the potential magnitude and the likelihood of

Climate Response Usage of Water Resources occurrence.Waste Disposal Pollutant Discharge Energy Usage

Environmental

Environmental Compliance Ecosystem and Biodiversity Circular Economy ● Dimension 1: Potential Magnitude

Management Protection

Rural Revitalization Equal Employment Safety and Quality of Products and

The extent of direct or indirect positive or negative effects that the opportunities and risks associated with each material sustainability

Innovation-driven Employee Communication Services

topic may bring to the company's financial performance during the reporting period and in future projections.Responsible Sourcing Employee Compensation and Supporting Industry Development

Social Equal Treatment to Small and Benefits Human Rights Protection

Medium-Sized Enterprises Contributions to the Society Employee Development and

Data Security and Customer Technology Ethics Training

Privacy Protection Supply Chain Security Occupational Health and Safety ● Dimension 2: Likelihood of Occurrence

Due Diligence Communications with Stakeholders

The likelihood that opportunities and risks associated with each sustainability topic may impact the company's financial performance

Governance Risk and Compliance Management Anti-Commercial Bribery and Anti- Tax Compliance

Anti-unfair Competition Corruption in the short medium and long term.Reference Factors

*Commodity trading volume in the supply chain pre-sales and recognized revenue from real estate projects and Revenue

incremental growth driven by overseas market expansion

Step 2-1 Impact Materiality Assessment Cost *Considering factors such as market price of resources trend forecasts and the company's historical costs

We assessed the impact materiality of each topic based on two dimensions: the severity and the likelihood of occurrence. Profits *Considering both costs and revenues assessing the impact on profits

Investment *Returns generated from high-quality land bank acquisitions and the construction of supply chain logistics infrastructure.● Dimension 1: Severity of Impact ● Dimension 2: Likelihood of Occurrence

Liabilities *Trends in financing costs and the ongoing optimization of the debt structure

We utilized statistical methods such as weighted averages We inferred the risk probability based on the frequency *Net operating cash flow specifically the capital turnover efficiency in bulk commodity trading and the speed of cash

and variance analysis to quantify the qualitative scores Cash Flowof similar events in the past and classified and quantified recovery from real estate sales

(1-5 scale) of each topic. The overall severity score was the probability of risk occurrence based on experience to Long-term *Globalization and digitalization of the supply chain premium product positioning in real estate anti-cyclical capabilities

calculated by combining the weight distribution to determine the likelihood of occurrence. Value through dual-core business synergy and consistent dividend payouts

determine the priorities of sustainability impacts.Topics identified by the Company in 2025 as having impact materiality Topics identified by the Company in 2025 as having financial materiality

*Risk and Compliance Management *Safety and Quality of Products and Services *Environmental Compliance Management *Climate Response *Risk and Compliance Management *Supply Chain Security

*Climate Response *Responsible Sourcing *Circular Economy

*Safety and Quality of Products and Services *Circular Economy *Responsible Sourcing

*Supply Chain Security

Note: Issues identified as having impact materiality refer to those with an impact materiality score higher than 4.0 in the assessment indicating that the Note: Issues with financial materiality refer to those that may over the short medium or long term have a significant impact on our financial position

company's performance on such issues may have direct extensive and significant actual or potential major impacts on the economy society and the as specifically reflected by a change in the relevant monetary value e.g. an impact on net profft exceeding 5%.environment.

11 Xiamen C&D Inc. 2025 Sustainability ReportAbout This 董Me事ss长ag致e f辞rom 关于Ab建ou发t C股&D份 Inc. 2024 年20可25持 Su续sta发in展ab影le 响力 22002245 年Ho可no持rs续 an发d A展w荣ard誉s 重Ma要na性ge议m题en管t 理of 利Co益m相mu关n方ica沟tio通ns 可持S续us发ta展ina治bi理lity-Related 14

Report the Chairman Development Impact Material Topics with Stakeholders Governance

Step 3 Consolidating Impact and Financial Materiality Outcomes

Environmental

1 Climate Response

2 Pollutant Discharge

3 Waste Disposal

4 Ecosystem and Biodiversity Protection 27 1

5 Environmental Compliance Management 13 165

6 Energy Usage 28 8

2210

7 Usage of Water Resources 14

212419183

8 Circular Economy

Social

9 Rural Revitalization 18 Supporting Industry

10 Contributions to the Society Development

11 Innovation-driven 19 Equal Employment

2926

12 Technology Ethics 20 Human Rights Protection 12

13 Responsible Sourcing 21 Employee Communication

14 Supply Chain Security 22 Employee Development and 9

15 Equal Treatment to Small and Training

Medium-Sized Enterprises 23 Employee Compensation

16 Safety and Quality of Products and Benefits

and Services 24 Occupational Health and

17 Data Security and Customer Safety

Privacy Protection

Governance

25 Due Diligence

26 Communications with Stakeholders

27 Risk and Compliance Management Financial Materiality

28 Anti-Commercial Bribery and Anti-Corruption

29 Anti-unfair Competition ● Environmental

30 Tax Compliance ● Social

● Governance

13 Xiamen C&D Inc. 2025 Sustainability Report

Impact MaterialityA关b于ou本t T报his告董Me事ss长ag致e f辞rom 关于Ab建ou发t C股&D份 Inc. 2024 年20可25持 Su续sta发in展ab影le 响力 22002245 年Ho可no持rs续 an发d A展w荣ard誉s 重Ma要na性ge议m题en管t 理of 利Co益m相mu关n方ica沟tio通ns 可持S续us发ta展ina治bi理lity-Related 16

Report the Chairman Development Impact Material Topics with Stakeholders Governance

Step 4 Reporting and Practice Guidance

The materiality assessment outcomes were reviewed and approved by our Strategy and Sustainability Committee. Detailed management approaches and specific actions are provided in the relevant sections of this report.Scope of Impact

Material Topics Value Value Affected Stakeholders Risks Opportunities Time Horizon1 SDGs The Chapter of

Chain Opera- Chain Com- Related SDGs Management and Action

Up- tions Down- muni-

stream stream ties

·Employees

·Customers ·Extreme weather events induced by climate change are becoming

·Accelerating the transition to a low-carbon operating model enables

·Suppliers increasingly frequent potentially causing direct physical

an enterprise to effectively control medium- to long-term energy

·Investors damage to key logistics hubs and real estate construction

costs and build a cost-competitive advantage. At the same time

·Banks projects resulting in operational disruptions and project delays. Climate Response

Climate Response by developing green supply chains and expanding into emerging Long-term

·Media Meanwhile the progressive refinement of global carbon pricing Circular Economy

businesses such as green buildings an enterprise can proactively

·Government and mechanisms and the continued tightening of low-carbon policies

respond to market demand for low-carbon products and services

Regulatory Bodies will also significantly increase compliance costs and transition

thereby capturing green premium returns.·NGOs pressures for high-emission business operations.·Community

·Employees ·Establishing a resilient and systematic compliance and risk control

·Under the dual pressures of evolving global geopolitical dynamics

·Customers system lays the foundation for a company's long-term and stable

and increasingly stringent regulatory policies the company's

·Suppliers operations. It not only significantly enhances the trust of domestic Short-term

Risk and Compliance management deficiencies in areas such as trade compliance Risk and Compliance

·Investors and international stakeholders but also helps strengthen business Medium-term

Management export controls and cross-border data flows will significantly Management

·Banks reputation ensure business continuity and translate into a Long-term

increase its systemic risk of legal sanctions operational

·Government and sustainable competitive advantage in a complex and volatile global

restrictions and reputational damage.Regulatory Bodies environment.·Adhering to exceptional quality and safety standards can bring

·Quality defects in supply chain delivery processes or safety

significant market advantages to the company: not only can it

Safety and Quality of hazards in real estate projects will directly lead to customer Short-term

·Customers continuously enhance customer satisfaction and loyalty but it can Safety and Quality of Products

Products attrition legal litigation and substantial compensation claims Medium-term

·Suppliers also strengthen the brand moat thereby enabling the company to and Services

and Services and will cause irreparable damage to the company's long- Long-term

gain higher market share and pricing power in intense competition

established brand equity.within a mature market.·Systematically integrating ESG standards into supplier selection

Responsible Sourcing

·If upstream suppliers encounter compliance issues or sudden and management processes not only helps the company build a

·Customers operational disruptions the negative impact can easily propagate more resilient and sustainable supply chain ecosystem ensuring Short-term

·Suppliers along the industrial chain exposing the company to default global supply security and stability but also significantly aligns with Medium-term Supply Chain Security

·NGOs risks at the delivery level and potentially triggering a cascading the growing green procurement requirements of downstream core Long-term

reputational crisis. customers thereby creating a differentiated advantage in value chain

Supply Chain Security

collaboration.

1.Explanation of impact time horizons: short term refers to one year or less (including one year)， medium term refers to one to five years (including five years)， long term refers to more than five years.

15 Xiamen C&D Inc. 2025 Sustainability ReportA关b于ou本t T报his告董Me事ss长ag致e f辞rom 关于Ab建ou发t C股&D份 Inc. 2024 年20可25持 Su续sta发in展ab影le 响力 22002245 年Ho可no持rs续 an发d A展w荣ard誉s 重Ma要na性ge议m题en管t 理of 利Co益m相mu关n方ica沟tio通ns 可持S续us发ta展ina治bi理lity-Related 18

Report the Chairman Development Impact Material Topics with Stakeholders Governance

Scope of Impact

SDGs The Chapter of

Material Topics Value Value Affected Stakeholders Risks Opportunities Time Horizon1

Chain Opera- Chain Com-

muni- Related SDGs Management and ActionUp- tions Down-

stream stream ties

·Under the traditional linear economic model the interplay ·Proactively pursuing a circular economy model can effectively reduce

·Customers

of tightening resource constraints and long-term volatility in the company's resource dependence and procurement costs while

·Media

raw material prices will lead to a sustained increase in rigid also holding the potential to cultivate new business growth areas Medium-term Climate Response

Circular Economy ·Government and

procurement costs in supply chain operations and construction in fields such as recycled resource utilization and green materials Long-term Circular Economy

Regulatory Bodies

activities thereby compressing the company's profit margins and thereby opening up a sustainable second growth curve for the

·Community

weakening its market competitiveness. company.·

Proactively establishing an environmental management system that

As environmental regulations become increasingly stringent if the

goes beyond the baseline of compliance enables the company to

company encounters issues such as illegal pollutant discharge

systematically mitigate potential regulatory and operational risks Short-term

Environmental ecological damage or a lack of necessary environmental permits Environmental Compliance

·Community ensuring the stable execution of its core businesses. Moreover it helps Medium-term

Compliance Management it will face multiple risks including project shutdowns and Management

the company cultivate a responsible leadership image among the public Long-term

production suspensions substantial administrative penalties

investors and other stakeholders thereby transforming environmental

restricted access to financing and even reputational damage.management into a differentiated competitive advantage.

17 Xiamen C&D Inc. 2025 Sustainability ReportAbout This Message from About C&D Inc. 2025 Sustainable 2025 Honors and Awards Management of Communications Sustainability-Related 20

Report the Chairman Development Impact Material Topics with Stakeholders Governance

Communications with Stakeholders We place high importance on the demands and expectations of stakeholders and maintain communication with them through diverse channels. We stay informed about feedback and expectations of stakeholders and integrate them into corporate governance

practices to facilitate the continuous enhancement of ESG management capabilities and performance across various ESG issues.Employees Clients Suppliers Investors Banks and Other

Financial Institutions Media Institutions

Government and Non-governmental

Regulatory Bodies Organizations

● Equal Employment ● Safety and Quality of Products ● Safety and Quality of Products

● Communications with ● Communications with ● Communications with ● Communications with

● Employee Development and and Services and Services ● Risk Management

Stakeholders Stakeholders Stakeholders Stakeholders

Training ● Data Security and Customer ● Data Security and Customer ● Anti-corruption

● Due Diligence ● Due Diligence ● Due Diligence ● Due Diligence

● Employee Compensation and Privacy Protection Privacy Protection ● Consumer Protection

● Innovation-driven ● Anti-unfair Competition ● Anti-unfair Competition ● Anti-unfair Competition

Benefits ● Tax Compliance ● Tax Compliance

● Employee Feedback

● Public Company Information

Solicitation

● Customer Satisfaction Surveys Disclosure

● Employee Training and ● Social Welfare Activities ● On-site Visits

● Customer Service and ● Supplier Conferences ● Shareholders' Meetings

Activities ● Public Company Information ● Public Company Information ● Engagement in Policy ● On-site Visits

Complaint Management ● Conferences ● Earnings Conference Call and

● Employee Satisfaction Surveys Disclosure Disclosure Formulation and Suggestion ● Community Service

● Visits and Research ● Visits and Research Webcast

● Workers' Representative ● Project Cooperation ● Media Communications ● Government Project ● Welfare Activities

● Social Media and Company ● Discussions and Training ● Investor Surveys

Meetings ● Public Opinion Monitoring Cooperation

Publications ● Investor Hotline and Interactive

● Company WeChat Public

Platform

Account

19 Xiamen C&D Inc. 2025 Sustainability Report

Stakeholders Concerned Communication

Issues MethodsAbout This Message from About C&D Inc. 2025 Sustainable 2025 Honors and Awards Management of Communications Sustainability-Related 22

Report the Chairman Development Impact Material Topics with Stakeholders Governance

Sustainability-Related Governance

Institutional Development

We recognize that sustainability governance is a pivotal cornerstone for enterprises to create long-term value and fulfill their The Sustainability Policies

environmental and social responsibilities. Guided by the coordinated creation of economic social and environmental value we

We have developed and continuously refined a comprehensive

have established a governance system that is just accountable effective and inclusive. We integrate the concept of sustainable ● Code of Business Conduct

sustainability policy framework. Through policy statements and

development comprehensively into corporate strategy business decision-making and daily operations continuously enhancing ● Anti-Corruption and Anti-Bribery Policy

value advocacy in the areas of environment society and governance

the efficacy of sustainability governance. We also foster fair trustworthy and mutually beneficial relationships with all stakeholders we have internalized the concept of sustainable development as a ● Environmental Protection Policy

providing a solid foundation for the sustainable development of both our enterprise and the broader economic and social systems. shared code of conduct across the organization providing consistent ● Human Rights Policy

guiding principles for the management and practice of relevant

● Anti-Discrimination and Anti-Harassment Policy

issues.Governance Structure and Mechanisms ● Employee Occupational Health and Safety Policy

● Supplier Code of Conduct

● Information Security Policy

We have established and continuously improved a sustainability governance structure encompassing decision-making execution

● Community Policy

and oversight to ensure the effective implementation of sustainability management initiatives from top to bottom. We systematically

advance the institutionalization and normalization of sustainability management practices continuously enhance governance ● Privacy Policy

efficacy and ensure the effective achievement of our corporate sustainability strategies and objectives.Governance Structure Appointment of Directors and Senior Management

We have established several specialized committees under the Board of Directors: The Strategy and We strictly follow the procedures for the nomination and selection of board members and senior management as outlined in the "Articles

Sustainability Committee Audit Committee Remuneration and Appraisal Committee Nominations of Association" "Shareholders' Meeting Rules" and "Nominations Committee Work Guidelines." The Nominations Committee established

Committee Risk Management Committee Investment and Policy-Making Committee. These committees under the board of directors conducts a qualification review of candidates based on the required criteria for directors and senior

provide comprehensive and professional consultation and advice to assist the Board in guiding and

management (including gender age education professional background work experience social roles and other multi-dimensional

At the overseeing the management of ESG matters. The Board's Strategy and Sustainability Committee is factors) and provides recommendations to the board. Senior management is appointed after being reviewed and approved by the board

board level responsible for researching and offering recommendations on ESG issues of concern to stakeholders

including ESG strategy environmental management greenhouse gas emissions water resource while the appointment of directors is subject to approval by the board and election at the shareholders' meeting.management human rights protection and responsible supply chains. The Committee also reviews the

ESG report monitors and inspects our ESG-related work. The Strategy and Sustainability Committee holds Diversity and Professionalism

annual meetings to discuss ESG matters and climate-related issues and reports to the Board of Directors.The diversification and specialization of the Board of Directors and senior management structure serve as critical safeguards for the

Company's scientific and efficient decision-making.At the We have established a Sustainability Task Force composed of senior management and managers from The Board of Directors currently consists of 8 directors with extensive industry experience whose professional backgrounds cover

executive relevant functional departments. Under the guidance of the Strategy and Sustainability Committee the task

level economics law management accounting and other fields. Among them: 3 are independent directors all holding doctoral degrees

force is responsible for the specific implementation of ESG-related work.accounting for 37.5% of the total board members; 3 are female directors accounting for 37.5% of the total board members.Our senior management team covers professional fields such as corporate management financial management and risk

management including 1 female senior executives who make up 20% of the total senior management.

21 Xiamen C&D Inc. 2025 Sustainability ReportAbout This Message from About C&D Inc. 2025 Sustainable 2025 Honors and Awards Management of Communications Sustainability-Related 24

Report the Chairman Development Impact Material Topics with Stakeholders Governance

Professionalism Board Committees Compensation of Director and Senior Management

Name Occupation Age

Investment

Industry Operations Risk Strategy and Risk Remuneration and Policy- Audit Nominations

Experience Management Control and

Accounting &

Financial Sustainability Management

and Appraisal

making Committee Committee

Compliance Committee Committee Committee Committee We have established a Remuneration and Appraisal Committee under the board of directors which performs its duties in accordance with

Lin Mao the "Remuneration and Appraisal Committee Work Guidelines." The committee is responsible for providing recommendations on directors'

Chairman 57（Male） · · · · · · · remuneration conducting regular performance evaluations of the Board formulating remuneration and performance appraisal schemes for the

XuXiaoxi

Director 56 · · · · · · · Chairman of the Board and senior management and carrying out remuneration assessments for the Chairman and senior management.（Male）

Cheng

Dongfang Director 47 · · · · · · · The Chairman of the Board and senior management receive compensation based on an annual salary system according to their respective（Male） remuneration schemes. Their annual salary consists of a base salary and a performance-based salary with the performance-based salary

Ye Yanliu

Director 53 · · · · · · · · · · linked to the Company's economic performance and individual achievements in addition to benefits as stipulated by the Company. The （Female）

Chairman's remuneration scheme is drafted by the Remuneration and Appraisal Committee and submitted to the Board of Directors for

Zou

Shaorong Director 49 · · · · · · · review. Upon approval by the Board it is implemented upon ratification by the shareholders' meeting. The remuneration scheme for（Male）

senior management is drafted by the Remuneration and Appraisal Committee and submitted to the Board of Directors for approval before

Wu Yuhui Independent（Male） Director 47 · · · · · implementation. The remuneration or allowances of independent directors are determined by the shareholders' meeting of the Company.CaiNing Independent

（Female） Director 48 · · · ·

Wang Clawback Mechanism Shareholding Table of Directors and Senior Management

Yanyan Independent

（Female） Director

46····

For the compensation of the directors and senior management

· · · · personnel holding specific positions within the company we Rongdian President 48 Number of（ Male） reserve a certain proportion of annual performance-based

No. Name Position

Shares Held

Chen compensation as risk reserve which is paid out at a deferred

Dongxu Vice President 55 · · · ·（Male） schedule. In the event of losses incurred due to improper 1 Lin Mao Chairman 437080

Wang management or other personal reasons or violations of laws

Zhibin Vice President 57 · · · ·（Male） and regulations the corresponding compensation amount will

Xu Jiana be deducted from the risk reserve aiming to prevent short-term 2 Cheng Dongfang Director 306200（ Male） Vice President 47 · · · · behavior in management and salary risks.Wei Zhuo CFO& Board

（Female） Secretary 46 · · · · 3 Ye Yanliu Director 247760

Additionally we have formulated "Regulations on the Management

of Rewards and Punishments" linking sustainable performance in

In 2025 we held a total of 26 board meetings during which 84 proposals were reviewed; and 76 specialized committee meetings. The human capital safety management integrity in operation clean 4 Zou Shaorong Director 13518

attendance rate for all directors was 100%. construction information security etc. with the compensation

performance of management and relevant responsible personnel.

5 Lv Rongdian President 305800

The Shareholding of Directors and

6 Chen Dongxu Vice President 360840

Enhancement of Professional Capabilities Senior Management

We granted shares to our directors and senior executives through

We attach great importance to the continuous improvement of the professional capabilities of our directors and senior management 7 Wang Zhibin Vice President 458547

the implementation of the 2020 and 2022 Equity Incentive Plans

in fulfilling their duties. Every year we regularly organize training programs for directors and senior management on laws and

with a view to establishing a medium-to-long-term incentive and

regulations policy updates duty fulfillment and sustainable development. These initiatives help enhance our corporate governance

restraint mechanism. To date the Equity Incentive Plans have been 8 Xu Jiana Vice President 297000

standards and ensure the compliance and efficiency of our operations. fully implemented.We actively organize directors and senior management to participate in various specialized training programs hosted by stock 9 Wei Zhuo CFO&Board Secretary 181500As of April 24 2026 the company's directors and senior

exchanges securities regulatory bureaus industry associations and professional institutions covering key areas such as compliant executives collectively hold 2608245 shares of the company

duty fulfillment corporate governance. accounting for 0.09% of the total share capital.

23 Xiamen C&D Inc. 2025 Sustainability ReportAbout This Message from About C&D Inc. 2025 Sustainable 2025 Honors and Awards Management of Communications Sustainability-Related 26

Report the Chairman Development Impact Material Topics with Stakeholders Governance

Related Party Transaction Information Disclosure Management

To ensure that related-party transactions adhere to the principles of fairness justice and We continuously improve our internal disclosure management systems including the "Information Disclosure Management System"

transparency we strictly comply with relevant laws and regulations and have formulated and "Insider Information Holder Registration Management System" "Significant Information Internal Reporting System" and "Information

continuously improved the "Related-Party Transaction Management System." This system Disclosure Deferral and Exemption Business Management System." These systems strictly regulate our information disclosure practices

clearly defines the review and disclosure procedures pricing principles and other matters insider information holder registration and internal reporting of significant information ensuring compliant fulfillment of disclosure

concerning related-party transactions standardizing the management of such transactions. obligations. We are committed to disclosing the Company's operating results financial position and material events to all investors in a

truthful accurate timely and complete manner fully safeguarding all investors' equal right to information.When related-party transactions undergo decision-making procedures they must be submitted

to the Board of Directors for review after obtaining approval from a majority of all independent Investor Relations Management

directors. The Board of Directors and the shareholders' meeting review related matters within

their respective authorities and strictly implement an abstention mechanism whereby

We have formulated and continuously optimized the "Investor Relations Management System" completing its revision in 2025 to further

related directors and shareholders do not participate in voting. In addition the Company

improve our investor relations management mechanism. We are committed to building long-term stable and trust-based interactive

has established specific provisions in the "Financial Management Regulations" and "Funds

relationships with investors while earnestly respecting and protecting their legitimate rights and interests and continuously enhancing our

Management Regulations" governing fund transactions with related parties.corporate governance standards and long-term investment value.Conflict of Interest The Board Secretary serves as the person in charge of investor relations management affairs coordinating and organizing related work

in a comprehensive manner. The Securities Department acts as the executive department implementing various investor relations

In accordance with the "Articles of Association" directors and senior management management activities and daily affairs under the leadership of the Board Secretary.personnel are obligated to act in good faith towards the company. Without the consent

of the shareholders' meeting they are not allowed to exploit their positions to pursue We have established diversified and accessible channels for investor communication including the Investor Relations section on our

business opportunities that rightfully belong to the company for themselves or others official website investor hotline contact email Shanghai Stock Exchange E-Interactive Platform shareholders' meetings performance

engage in self-employment or operate businesses similar to those of the company in presentations investor surveys and reception of investor visits to maintain effective interaction with investors.order to ensure fairness and transparency in decision-making. We require directors

and senior management personnel to promptly report any significant positions held in In 2025 we systematically carried out a series of investor relations management activities including:

other entities to us to avoid potential conflict with the interests of the company.Investor We maintain a smooth investor hotline and respond promptly to inquiries from retail investors.Protection of Shareholders' Rights and Interests Hotline and We received over 480 calls from shareholders ensuring the communication needs of retail Interactive

Platform investors are met.Based on relevant laws and regulations such as the "Company Law of the People's Republic of China" the "Securities Law of the

People's Republic of China" and the "Code of Corporate Governance for Listed Companies" we have established a sound corporate In 2025 we held multiple investor communication events providing targeted responses to

legal governance structure. We continuously improve our governance system which is anchored by the "Articles of Association" and Online concerns raised by retail investors. Following each event we promptly issued announcements

Investor to summarize the proceedings. Each session achieved efficient interaction and yielded positive

comprises internal governance documents including the "Rules of Procedure for Shareholders' Meetings" and the "Rules of Procedure Presentations communication outcomes.for Board of Directors Meetings." These efforts ensure the coordinated and standardized operation of all governance bodies and

promote the high-quality development of the Company.Diversified We actively promoted the Company's performance and key operational highlights through visual

content such as "Fast Fact of Annual Report 2024 of C&D Inc." and "Fast Fact of Sustainability Report

To safeguard the legitimate rights and interests of all shareholders and ensure their full exercise of rights we strictly adhere to relevant Media

Platform 2024 of C&D Inc." Leveraging mainstream financial platforms we publicized the Company's business

regulations and internal rules such as the "Articles of Association" and the "Rules of Procedure for Shareholders' Meetings" standardizing Promotion achievements and sustainable development practices to convey our corporate value.the convening holding and voting procedures of shareholders' meetings. We also provide on-site voting online voting and other methods

to facilitate shareholder participation. In 2025 we held a total of 3 shareholders' meetings during which 22 proposals were reviewed.

25 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 28

Environmental

Environmental Performance Targets in 2025

Continue conducting greenhouse gas inventories and steadily reduce carbon emissions.Increase the share of clean and low-carbon energy to 5% of total electricity consumption and expand the installed capacity

and power generation of rooftop distributed photovoltaic projects across office buildings warehousing facilities and

subsidiaries.Enhance water recycling and reuse rates across all manufacturing enterprises.Ensure full compliance in the discharge of exhaust gas wastewater and other pollutants throughout the year with zero major

environmental incidents.Expand the scale of green circular economy businesses and improve the efficiency of cross-regional resource allocation.Completion Status Completed In Progress Unfinished

27 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 30

Climate Strategy We actively advance sustainable development through systematic green innovation and a low-carbon transition strategy:

Climate Continuously investing in the development of green and low-carbon products and solutions promoting carbon reduction throughout the entire product life cycle.We actively respond to China's carbon peaking and

Building a green value chain working collaboratively with upstream and downstream partners to advance low-carbon practices

carbon neutrality strategy and the global temperature and improve the overall environmental performance of the industry chain.Response control goals under the Paris Agreement. We make the Expanding the application of clean energy exploring renewable energy substitution pathways and continuously reducing the net zero commitment: carbon intensity of operations.Strategically investing in green and environmental protection industries to cultivate new low-carbon growth drivers and foster a

● Peak the greenhouse gas emissions by 2030 positive interaction between industrial development and green transformation.● Achieve net-zero emissions across Scope 1 2 and 3 Promoting green operations driving systematic transformation through production process optimization resource recycling and

covering the entire value chain by 2060. the development of a low-carbon corporate culture while encouraging company-wide participation in green initiatives.Through the coordinated implementation of these measures we are steadily transitioning toward a green low-carbon high-quality

and sustainable development model contributing to global efforts to address climate change.Carbon Emission Growth Phase Steady Decarbonization Phase Net-Zero Emission Phase

·We actively respond to the national green development strategy promote the green transformation of industries

support the construction of a green low-carbon and circular economic system and advance towards net zero.Against the backdrop of accelerating global

industrialization and continuously rising To peak the greenhouse To achieve net-zero

gas emissions emissions across Scope

greenhouse gas emissions climate change 1 2 and 3 covering the

has become a major environmental and 2030 entire value chain by development challenge facing human society. by NET

Rising global temperatures increasingly 2060

sions

frequent extreme weather events glacier Baseline

Emis ZERO

melting and sea-level rise are exerting profound Carbon

impacts on ecosystem stability energy security Peaking

food supply and the functioning of economies

and societies. The international community

continues to deepen cooperation on climate

governance and the transition toward a green 973719tCO e Voluntary 2

and low-carbon energy structure has become a Emission

global consensus. In this context enterprises— Reductions

being key contributors to energy consumption

and carbon emissions—are facing increasingly

stringent policy regulations market constraints

and stakeholder expectations. Actively

addressing climate change has therefore become Sustainability Report Scenario

an essential pathway for companies to achieve

sustainable development.Offsets

202320302060

29 Xiamen C&D Inc. 2025 Sustainability Report Baseline Year Near-term Long-term

Target TargetEnvironmental Social Governance Appendix 32

Physical Risk Assessment

Risk Type Risk Description Mitigation Measures Impact

Impact Scope

Period2 Upstream Operations Downstream

Typhoons and floods may ·Strengthen facility resilience and insurance

damage factories equipment coverage: Regularly inspect and reinforce office

and inventories threaten and project facilities maintain adequate property

employee safety and trigger insurance and enhance disaster risk protection. Short-term Typhoons and

secondary hazards. They can ·Enhance emergency management mechanisms: Medium-term Floods Develop emergency response plans strengthen

also disrupt transportation and Long-meteorological early warning systems and material

ports and logistics affecting termreserves and conduct typhoon and flood preven-

raw material supply and product tion training and drills to improve rapid response

delivery. capabilities.·Optimize production scheduling: Adjust

production operations and process sequences to

Extreme heat may cause avoid periods of extreme heat or cold reducing

equipment overheating equipment load.Extreme High reduced production capacity ·Enhance employee protection: Provide heat- or

and Low and process instability increase

Medium-term

cold-protection supplies arrange working hours

health risks for employees reasonably and prevent employees from working and Long-Temperatures

raise energy consumption and during high-risk periods. term

production costs and disrupt ·Ensure equipment reliability: Regularly maintain

Acute production continuity. critical equipment to ensure normal operation

Physical under extreme weather and adopt more weath-

Risks er-resistant equipment and technologies.Droughts may lead to shortages ·Optimize water use and recycling: Implement of water for production and efficient water resource management adopt wa-

daily use increase treatment ter-saving technologies and rainwater harvesting

Droughts costs disrupt production systems and improve water use efficiency. Long-term

continuity and place pressure ·Reserve and assess risks: Regularly evaluate wa-

on raw material supply and the ter resource risks maintain backup water sources

surrounding ecosystem. and improve emergency response plans.·Risk assessment and site optimization: Conduct geological risk assessments before selecting new

Landslides may damage factory project sites to avoid landslide-prone areas.facilities and roads threaten ·Facility reinforcement and protection: Strength- Short-term

Climate Risks and Opportunities Management Landslides employee safety and trigger en existing factories roads and critical facilities debris flows or floods resulting and construct protective walls or drainage systems Medium-term to reduce landslide risks. and Long-

in production interruptions and ·Emergency management: Develop landslide termsupply chain delays. emergency response plans maintain emergency

supplies and conduct regular drills to ensure rapid

While climate change presents global challenges it also creates significant opportunities for industrial transformation and green response.Coastal ports transportation

development. Based on the characteristics of our business and with reference to climate scenario models developed by the and warehousing facilities ·Reinforce facility protection: Construct levees may be damaged by seawater flood gates and upgraded drainage systems and

Intergovernmental Panel on Climate Change and the International Energy Agency we regularly conduct systematic climate scenario erosion or inundation leading perform regular inspections and maintenance to

Sea Level Rise to transportation and logistics enhance disaster resilience. Long-term

analyses to identify and assess the physical risks transition risks and related development opportunities we may face in the short disruptions and higher repair ·Diversify the supply chain: Spread suppliers and

costs. The value of coastal assets transportation routes to reduce the risk of supply

medium and long term. We fully integrate climate-related risks and opportunities into our risk management system and strategic may decline and supply chains chain disruptions caused by rising sea levels.become more vulnerable.decision-making processes and continuously improve mechanisms for identification assessment response and monitoring.The continued rise in annual ·Optimize energy management: Adjust our energy

use and production processes according to tem-

Through these efforts we enhance our capability to manage climate change adaptation and sustainable development while average temperatures may

lead to increased energy perature variations to improve facility operational

strengthening strategic resilience and long-term value creation. consumption reduced

efficiency and reduce energy consumption per

Rising Average equipment operational unit.·Enhance employee health protection: Provide Long-termTemperaturesChronic efficiency disrupted production heat mitigation facilities in offices production sites

Physical continuity and added pressure and construction areas and arrange working hours

Risks on employee health and raw reasonably to ensure employee safety and health

material supply. in high-temperature environments.Physical Risks Water scarcity may result ·Optimize water usage structure: Implement

in insufficient water for the efficient water use and recycling technologies to

Water Scarcity company's production and reduce reliance on external water sources. Long-term

operations increase costs for ·Training and awareness: Conduct water-saving

external water sources and campaigns and training to enhance employees'

We select the high-emissions pathway SSP5-8.5 from the Intergovernmental Panel on Climate Change as the scenario for assessing affect project timelines. awareness of water resource conservation.physical climate risks. Under this pathway global emissions continue to rise throughout the century with the global average surface Degradation of marine coastal ·Environmental impact management: Continu-

Biodiversity and terrestrial ecosystems ously conduct environmental impact assessments

temperature projected to increase by approximately 3.3° C–5.7° C above pre-industrial levels during 2081–2100. Under this climate Loss and species extinction and the to identify and mitigate the effects of production reduction or irreversible loss of and operations on ecosystems. Long-term

Habitat

scenario regions where we operate are expected to experience a continued rise in average annual temperatures along with an ecosystems and their services ·Biodiversity conservation: Promote and partic-Displacement including freshwater terrestrial ipate in regional ecological protection initiatives

supporting the preservation of biodiversity.increased frequency and intensity of extreme weather and climate events such as extreme heat heavy precipitation and tropical and marine ecosystems.

cyclones (e.g. typhoons) as well as the impacts associated with rising sea levels. The impact duration is categorized into short-term medium-term and long-term. Short-term generally refers to within one year (inclusive) after the end of the sustainability

information reporting period. Medium-term generally refers to one to five years (inclusive) after the end of the sustainability information reporting period. Long-term generally

refers to more than five years after the end of the sustainability information reporting period.

31 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 34

Transition Risks Transition Opportunities

Impact Impact Scope

We adopt the Net Zero Emissions (NZE) scenario from the International Energy Agency as the baseline pathway for analyzing transition risks. Opportunity Type Opportunity Description Actions Period4 Upstream Operations Downstream

Under this scenario the world aims to achieve net-zero greenhouse gas emissions by 2050 keeping the average temperature rise within 1.5° C

Optimizing warehousing and

Promote energy-saving upgrades and

above pre-industrial levels. By 2050 the global population is expected to reach approximately 9.7 billion with growth gradually slowing; the global logistics nodes through digital ·

technologies implementing equipment modernization: Update energy-effi-

cient equipment in warehouses and office facilities

economy is projected to grow at an average annual rate of 2.6% though development across countries and regions remains uneven. Meanwhile energy-saving upgrades for high- Short-term

Resource Efficiency consumption equipment and

to continuously improve energy utilization efficien-

cy. Medium-term

coal and other high-carbon fossil fuels will gradually be phased out of the energy system energy efficiency will improve significantly and solar promoting packaging reduction ·Enhance circular use: Implement packaging and Long-and waste material recycling reduction and reuse initiatives increase recycling term

and wind power are expected to account for approximately 70% of global electricity generation. Global policy coordination will be further within the supply chain can rates and prioritize the use of renewable and improve resource utilization recyclable materials.efficiency.strengthened driving continued declines in clean energy technology costs enhancing the diversity of critical minerals and technology pathways

and building more resilient industrial chains. Under this scenario we may face multiple transition risks arising from tighter policy and regulatory Accelerating the transition of ·Promote renewable energy procurement: Partic-

the energy structure toward ipate in green power trading or purchase renew- Short-term

requirements accelerated technological iteration shifting market demand and increased brand and reputational pressures. renewable sources can create able energy certificates to increase the proportion Energy Source

opportunities for the company to of clean energy usage.Medium-term

Explore self?built distributed energy projects: and Long-

hedge against price volatility and ·Install rooftop solar PV systems on eligible office term

reduce compliance costs. buildings or warehouse facilities.Impact Scope

Risk Type Risk Description Mitigation Measures Impact Period3 Upstream Operations Downstream Developing a portfolio of green

and low-carbon products and ·Provide green supply chain solutions: Collab- Short-term

Against the backdrop of increasingly ·Optimize asset structure and business layout: Products and Services services can provide the company orate with upstream and downstream partners Gradually reduce the proportion of high-energy-con- with opportunities to capture a to implement emission reduction projects and Medium-term stringent climate-related policies and

sumption and high-emission assets increase invest- enhance the overall low-carbon performance of

and Long-

regulations strengthened carbon "green premium" and unlock new term

ment in green and low-carbon sectors and enhance the supply chain.growth avenues.Policy and emission controls carbon trading

Law and green trade rules may expose

the overall asset structure's resilience to policy risks.Enhance energy efficiency and emission reduction Short-term

the company to higher compliance ·capabilities: Implement energy-saving and con- Proactively enter high-end and emerging costs and increased investment in ·sumption-reduction upgrades promote the use of markets: Align with green and low-carbon trends

asset transition potentially affecting clean energy improve energy utilization efficiency Entering green emerging markets by strategically entering growth sectors such

operating costs and profitability. and reduce carbon emission costs. and participating in rule-making as new energy materials and energy-efficient Short-term

can provide the company with products and strengthen market presence in clean The rapid development of green Market Medium-term Promote green supply chain management: energy industries.and low-carbon technologies may opportunities to enhance industry and Long-Establish green supplier evaluation and onboarding ·Enhance market responsiveness: Establish rapid

transform supply chain and logistics · influence and access low-cost mechanisms monitor the development of low-car- market feedback mechanisms to dynamically term

models requiring adjustments to green capital.bon products and technologies and ensure the optimize product portfolios and adjust business

existing procurement warehousing supply chain complies with green trade standards layouts promptly in response to changes in carbon

Technology and transportation practices. At the and customer low-carbon requirements. Short-term policies and green trade regulations.same time significant investment in Advance low-carbon technology adaptation and

green and low-carbon technology R&D ·application: Conduct pilots for low-carbon products without achieving expected results and technologies assess their suitability and return 4The impact duration is categorized into short-term medium-term and long-term. Short-term generally refers to within one year (inclusive) after the end of the sustainability

could affect the company's operational on investment and ensure technology upgrades information reporting period. Medium-term generally refers to one to five years (inclusive) after the end of the sustainability information reporting period. Long-term generally

efficiency and market competitiveness. align with business needs. refers to more than five years after the end of the sustainability information reporting period.The rapidly growing demand from

Transition customers and downstream industries

Risks for low-carbon products and green

supply chains may lead to a decline

in demand for traditional high-carbon

products. At the same time market Expand low?carbon products and services: De-

Market share and pricing for green products velop low-carbon products that meet customer and are subject to fluctuations and ·market green demands and provide green supply Short-term

international carbon tariffs and carbon chain solutions to enhance market competitiveness.border adjustment mechanisms

could affect export competitiveness

thereby increasing uncertainty in the

company's sales profitability and

market expansion.As stakeholders increasingly focus

on corporate low-carbon actions Strengthen green brand building: Promote our

and green commitments failure to practices and achievements in low-carbon trade and

respond promptly to low-carbon ·green supply chains participate in industry green trade trends manage the supply initiatives and certifications and enhance market

Reputation chain effectively or obtain adequate recognition. Short-term

green product certifications may Establish proactive and transparent

damage the company's brand image communication mechanisms: Actively disclose

thereby affecting market recognition ·progress on climate targets and management perfor-

partnership opportunities and long- mance on ESG issues of interest to stakeholders.term competitiveness.

3The impact duration is categorized into short-term medium-term and long-term. Short-term generally refers to within one year (inclusive) after the end of the sustainability

information reporting period. Medium-term generally refers to one to five years (inclusive) after the end of the sustainability information reporting period. Long-term generally

refers to more than five years after the end of the sustainability information reporting period.

33 Xiamen C&D Inc. 2025 Sustainability Report

·影响期限分为短期、中期和长期。短期指未来 1 年以内（含 1 年），中期指未来 1 年至 5 年（含 5 年）；长期指未来 5 年以上。Environmental Social Governance Appendix 36GHG Emissions Management Organizational Boundary of GHG Inventory

In accordance with the ISO 14064-1:2018 standard we conducted the 2025 greenhouse gas (GHG) inventory for entities within our

Xiamen C&D Inc.consolidation scope using the operational control approach. In 2025 our total GHG emissions (Scope 1 and Scope 2) reached 1.48

million tCO2e a decrease of 0.71% compared with 2024 mainly attributable to an increased share of clean energy use and more

refined energy management.Functional Supply Chain Real Estate

Management Department Operations Segment Operations Segment

GHG Emissions in 2025

Category 2022 2023 2024 2025

Seven Major Specialized Groups and C&D Real Lianfa Group

Emerging Business Division Estate Corp. Ltd. Co.Ltd MACALLINE

Scope 1: Direct Emissions

(tCO e) 285727 434139 504071 5490412

Scope 2: Indirect Emissions

e) 220443 539580 984530 929060(tCO2Total Emissions(tCO2e） 506170 973719 1488601 1478101

Carbon Emission Intensity

(tCO2e/hundred-million CNY 61 128 212 220

of operating revenue)

GHG Emissions

Operational Boundary of GHG Inventory

Scope 1（tCO2e） Scope 2（tCO2e) Carbon Emission Intensity (tCO2e/hundred-million CNY of operating revenue)

250 In 2025 our greenhouse gas inventory covered Scope 1 direct emission sources and Scope 2 indirect emissions from energy 1200000

consumption.

212220

1000000984530200

929060 GHG Category Definition Primary GHG Emission Sources

800000 ·Natural gas boilers

150 Direct GHG emissions refer to emissions generated by the organization

128 ·Gasoline-powered company vehicles

itself including those from fossil fuel combustion and industrial processes.

600000 Scope 1 ·Diesel-powered company vehicles

539580 504071 549041 These emissions are categorized into stationary combustion mobile

434139 ·Air conditioner61 100 combustion process emissions and fugitive emissions.

·Fire extinguishers

400000

285727220443

50 Indirect GHG emissions result from the consumption of purchased

200000 ·Purchased electricity

Scope 2 electricity heat and other energy sources. This includes emissions

·Purchased thermal energy

associated with externally sourced power and steam.

2022202320242025

35 Xiamen C&D Inc. 2025 Sustainability Report

Office Vehicles

Owned and Leased

Buildings

Office Vehicles

Owned and Leased

Buildings

Warehouse Operations

Equipment

Office Vehicles

Owned and Leased

Buildings

Office Vehicles

Owned and Leased

Buildings

Organizational Operational

Boundary BoundaryEnvironmental Social Governance Appendix 38

GHG Emission Reduction Actions

We continuously improve our greenhouse gas reduction management system and integrate low-carbon principles into our

operational and investment decisions. Through developing innovative green and low-carbon products promoting low-carbon

practices across the value chain expanding the use of clean and low-carbon energy investing in green and low-carbon environmental

protection industries and actively implementing low-carbon initiatives we systematically advance energy structure optimization

and resource utilization efficiency. These efforts also drive our upstream and downstream partners to enhance their low-carbon

development facilitating the transformation of the entire industrial chain toward greener practices.Developing Green and Low-carbon Products

Against the backdrop of an increasingly deepened green and low-carbon development philosophy we continuously integrate sustainability

concepts into our product innovation and business practices. We actively advance the research and design of products such as green pulp

and paper green materials and green building solutions striving to create resource-efficient environmentally friendly and healthy livable

environments. At the same time we continuously explore circular use low-carbon alternatives and eco-friendly products and solutions to

minimize environmental impacts across the entire lifecycle supporting the promotion of green production and sustainable lifestyles.● Green Materials

To address greenhouse gas emission challenges in traditional textile production we have deeply integrated "low-carbon substitution"

into its R&D system. We widely apply recycled polyester recycled cotton plant-based fibers and biodegradable bio-based materials

while proactively exploring negative-carbon materials to build a diversified green materials portfolio. By introducing industry-leading

eco-friendly fabrics such as SORONA CELYS PRIMALOFTBIO and Coffee Yarn we achieve an organic integration of green dyeing

GHG Categories and innovative processes effectively reducing the carbon footprint of our products from the source.We rigorously select suppliers across four dimensions—product recycling production and sales traceability social and environmental

practices and chemical restrictions—and provide support for certifications such as GRS GOTS OEKO-TEX BCI and RCS. From

Seven types of greenhouse gases including carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs)

raw materials to fabrics to finished garments each stage is issued a T/C transaction certificate achieving full-chain traceability

perfluorocarbons (PFCs) sulfur hexafluoride (SF6) and nitrogen trifluoride (NF3).management from material sourcing to garment manufacturing thereby supporting the sustainable development of the traditional

textile industry.In the 2025 product portfolio we completed the full green transition of core categories such as coats jackets and vests. By implementing

GHG Quantification Methodology Full-Component Eco-Design we centered on post-consumer recycled polyester fibers to achieve comprehensive coverage—from functional

composite shells to 100% recycled linings as well as ancillary materials including thread and pocket fabrics.We follow the ISO 14064-1:2018 standard and apply the calculation method emission factor method and mass balance method for Under the GRS (Global Recycle Standard) certification system our subsidiary C&D Light Industry continuously refines and improves a

full-chain traceability system covering raw material recycling processing and trading. In 2025 thanks to its outstanding performance

carbon emission accounting. Emissions are calculated based on the basic formula:"Activity Data × Emission Factor." For different

in green material R&D and low-carbon process innovation C&D Light Industry was honored with the the ESG Contribution Award at

emission sources calculations comply with the 2006 IPCC Guidelines for National Greenhouse Gas Inventories. Energy-related

the 2025 Forbes China Fashionable 50 Selection.emissions are accounted for in accordance with the General Principles for Comprehensive Energy Consumption Calculation (GB/

T 2589-2020) and the 2023 China regional grid average CO2 emission factors published by the Ministry of Ecology and Environment; In 2025

overseas operations use the grid emission factors applicable to their respective regions. All greenhouse gas emissions are converted

into CO2-equivalents (CO2e) using the Global Warming Potential (GWP) values from the IPCC Sixth Assessment Report (AR6) to ensure C&D Light Industry was honored with the the ESG Contribution Award at

scientific accuracy consistency and comparability. The accounting methodology for 2025 remains consistent with previous years the 2025 Forbes China Fashionable 50 Selection

with no major changes.

37 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 40

● Green Building Highlight Integration of Technology and Energy Efficiency: Developing Ultra?Low Energy Buildings

We deeply apply Building Information Modeling (BIM) technology during the

In 2025

project design phase integrating active and passive design strategies to select The Shanghai Qingpu Impression Qingcheng project is a flagship demonstration of ultra-low energy Achieving energy savings for

eco-friendly building materials. Our designs are guided by national and local buildings integrating advanced technologies with optimized building performance. Through systematic

the building itself

standards including GB/T 50378-2019 Green Building Evaluation Standard energy-saving design the project significantly enhances the thermal performance and airtightness of the %

the company added 11newly completed green 15

and JGJ/T 229-2010 Code for Green Design of Civil Buildings. We continuously building envelope achieving notable energy efficiency.explore new approaches to green building design enhancing both quality and building projects all of which are 11 two-

environmental performance and providing clients with a more sustainable and For the building envelope the project adopts a high-performance integrated insulation system for the roof Overall energy savings rate

star green building project.eco-friendly living experience. exterior walls and windows. The roof's thermal transmittance is optimized to 0.29 W/(m2·K). The exterior

walls combine external and internal insulation layers maintaining an average thermal transmittance 40

below 0.4 W/(m2·K). The window system uses thermally insulated aluminum profiles and durable warm-

Core Features of the Company's Green Buildings

edge spacers achieving an overall window K-value ≤ 1.4 W/(m2·K) greatly improving insulation and heat

retention.· Use clean energy select high-performance insulation materials install high-efficiency equipment and

implement energy monitoring systems. Additionally the windows' overall performance is systematically enhanced achieving Level 8 airtightness

· Adopt sensor-controlled lighting to extend lamp lifespan save energy and reduce emissions. Level 6 water tightness and Level 3 airborne sound insulation. In terms of optical performance the glazing

Resource · Reasonably select industrialized interior components and apply BIM technology to improve construction provides a solar heat gain coefficient (SHGC) of no less than 0.6 and visible light transmittance (VLT) of at

Efficiency efficiency and reduce costs.· least 0.4 balancing solar heat control with indoor natural lighting comfort.Install rainwater recycling systems to replace tap water for landscaping irrigation and road cleaning.Comprehensive calculations indicate that through this technological integration and meticulous design the

project achieves a 15% energy savings for the building itself and an overall energy savings rate of up to 40%

·Monitor indoor air quality including pollutants such as PM2.5 and other inhalable particles.·Prioritize the use of green products and eco-friendly building materials as key management indicators. offering a replicable technical pathway and engineering benchmark for high-comfort low-energy green

·Use soundproof glass to maintain low indoor noise levels and enhance comfort. residential construction.·Apply sponge city design techniques and optimize underground space utilization to improve overall

Health & comfort.Comfort ·Increase the proportion of deciduous trees to enhance visual comfort through better daylighting.·Simulate outdoor wind conditions to inform building layout and landscape design improving indoor

and outdoor environmental experience.·Employ sponge city facilities such as sunken green spaces and rain gardens to control stormwater

Environmentally runoff reduce pressure on drainage networks prevent surface-source pollution and mitigate urban

Livable

heat island effects.·Strategically arrange public facilities such as children's playgrounds and fitness areas.·Design gentle slopes and barrier-free pathways to improve accessibility for the elderly children

Convenience and people with disabilities.·Establish and strictly enforce safety regulations.·Optimize the combination of materials and equipment lifespan to enhance overall product quality.Safety &

Durability

39 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 42

● Steel Industry Chain

Advancing Low-Carbon Development Across the Value Chain

Digital technologies help reduce carbon emission intensity by improving the efficiency of resource allocation optimizing production

and circulation processes and guiding green consumption. They represent an important technological pathway for achieving carbon

peaking and carbon neutrality goals. We continue to strengthen the research development and application of digital technologies

actively expanding digital supply chain scenarios and integrating intelligent digital solutions into the development of traditional To meet the demand for efficient supply chain services from enterprises across

industries. These efforts promote efficient coordination and optimized allocation of supply chain resources. On this basis we further the steel industry chain we integrate high-quality resources along the value

advance the green and intelligent transformation of traditional industries cultivate new quality productive forces and drive the chain and have independently developed the "C&D Cloud Steel" collaborative

industrial value chain toward a greener lower-carbon and more sustainable direction. platform. Based on the "LIFT Supply Chain Services" system the platform is

supported by four core service elements—logistics information finance and

commerce—and builds an integrated supply chain system covering production

● Pulp and Paper Industry Chain

transportation warehousing and trading.Through this digital platform C&D Cloud Steel provides industrial clients with

The pulp and paper industry chain involves upstream international pulp mills midstream diversified services such as online contract signing visualized logistics tracking

paper manufacturers and downstream printing and packaging enterprises with self-service cargo pickup and intelligent settlement and reconciliation. These

numerous participants and strong collaboration needs. Leveraging our self-developed functions enable the digitalization and coordination of business processes

"LIFT Supply Chain Services" system we have built an industrial internet platform for meet the diverse operational needs of the steel industry and further enhance

the pulp and paper sector forming a dual digital service matrix centered on "E-Pulp" and operational efficiency and service experience for customers. The platform also I Ranked fourth on the "Top 100 Chinese

"PaperSource." Industry Digitalization List"helps enterprises across the industry chain reduce costs improve efficiency

and strengthen collaborative development.In 2025

In 2025

Our industrial internet platforms "E?Pulp" and "PaperSource"

were listed on the "Top 100 Chinese Industry Digitalization List" at

Our C&D Cloud Steel platform ranked fourth on the "Top 100 Chinese Industry Digitalization

the 12th Industrial Digitalization Conference.List" at the 12th Industrial Digitalization Conference.I Top 100 Chinese Industry Digitalization List

41 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 44

Platform Empowerment and Ecosystem Connectivity: Advancing Efficient Collaboration and Empowering Premium Services with Green Energy — C&D Clean Energy & C&D

Highlight Highlight

Digital Transformation Across the Industrial Chain Automobile Distributed Photovoltaic Project

Leveraging our self-developed "E-Jiantong" industrial collaboration platform we have systematically built an open efficient and secure In 2025 C&D Clean Energy partnered with C&D Automobile to launch Phase II of the distributed photovoltaic project achieving a total installed

infrastructure for external system connectivity and data exchange. The platform effectively removes information barriers between enterprises capacity of 2.2 MW. The project spans multiple service centers across Xiamen's Jimei Huli Haicang Districts and the Audi flagship center in

and enables seamless cross-system integration of key business processes such as logistics capital flows finance and customs operations. Xiang'an District installing 4508 high-efficiency photovoltaic panels connected to the local grid via a low-voltage grid-tie system.By continuously expanding the scope of business collaboration the platform significantly enhances the overall coordination efficiency and

operational transparency of the industrial chain. Following commissioning the project is expected to generate approximately 2.65 million kWh in its first year with a total lifecycle (25 years)

generation of 61.13 million kWh. This is equivalent to saving 27735 tonnes of standard coal reducing 63481 tonnes of CO2 and 1879 tonnes of

Currently the E-Jiantong platform has been widely applied across multiple business segments including steel pulp and paper and consumer SO2 emissions. By enabling self-consumption of clean electricity the project significantly lowers operating costs enhances energy resilience and

goods. To date it has completed data connectivity and process integration with 47 external partner systems covering core operational provides substantial support for C&D Automobile's "premium intelligent and green" strategy achieving a synergy between economic benefits

scenarios from procurement warehousing and logistics to settlement gradually forming a cross-industry and cross-enterprise digital and environmental performance.collaboration network. In addition the platform has successfully established direct system connectivity with leading enterprises such as Wens

Foodstuff Group creating an end-to-end digital channel from order placement to delivery and providing upstream and downstream partners In 2025

with real-time reliable and traceable collaboration capabilities.Estimated first?year power Total lifecycle (25 years) Reduce greenhouse gas

generation is approximately generation of emissions by SO2 emissions

The E-Jiantong platform not only promotes deeper integration between our internal operations and the broader external ecosystem but also

provides a replicable and scalable digital platform foundation for the overall digital upgrading of the industrial chain continuously supporting 2.65million kWh 61.13million kWh 63481tonnes 1879tonnes

the development of a secure resilient and efficient modern industrial system.Promoting the Use of Clean and Low-Carbon Energy

Against the backdrop of the accelerating global transition toward a low-carbon energy structure the promotion and application of

clean energy have become an important pathway for reducing greenhouse gas emissions and advancing sustainable economic and

social development. We actively promote the use of clean and low-carbon energy continuously optimize our energy structure and

reduce reliance on traditional fossil fuels thereby effectively lowering greenhouse gas emissions from our operations.In 2025 C&D Clean Energy a subsidiary of our company deployed distributed photovoltaic power stations on the rooftops of

several subsidiaries including C&D Automobile C&D Logistics Industrial Park and MACALLINE. The total installed grid-connected

capacity of these projects reached 23.07 MW generating 25.36 million kWh of electricity annually. These projects are expected to save

approximately 3117 tonnes of standard coal each year and reduce greenhouse gas emissions by about 13456 tCO2e annually.In 2025

Total installed grid-connected Annual power generation Save standard coal Reduce greenhouse gas I C&D Automobile Phase II 2.2 MW Distributed Photovoltaic Project

capacity reached reached each year emissions by

23.07MW 25.36million kWh 3117tonnes 13456tCO2e

43 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 46

Investing in Green Low?Carbon and Eco?friendly Industries Implementing Green and Low-Carbon Actions

In line with the national policies on carbon peaking and carbon neutrality as well as emission reduction and pollution control we have elevated We actively promote a concise low-carbon and healthy approach to production and operations continuously advancing green consumption

the development of clean technologies to a strategic priority and continue to expand our investment in green low-carbon and environmental and sustainable lifestyles. By systematically cultivating employees' awareness of resource conservation and environmental protection we

protection industries. Leveraging our advantage in supply chain resource integration we actively connect upstream and downstream resources integrate low-carbon principles throughout energy-saving technical upgrades green office practices and overall operational processes gradually

across the industry to provide industrial clients with comprehensive full-cycle supply chain service solutions. We continuously drive business establishing a comprehensive self-aware and closed-loop green operational culture.innovation in photovoltaic power station development energy storage deployment and new energy vehicle sales while exploring new

approaches and models for international supply chain operations steadily advancing our business toward high-quality and sustainable growth.● Green Operations

● Positioning in the Photovoltaic Industry Photovoltaics Driving Intelligent Highlight Manufacturing and Enabling Green Industry

We adopt a "full-process and full value chain" framework to systematically advance green operations integrating low-carbon

We through our subsidiaries C&D Clean Energy In Jiading Shanghai we through our subsidiary C&D Clean

development principles into daily management production upgrades and supply chain collaboration. Through these efforts we

C&D Emerging Energy and C&D Hitek operate Energy invested in and constructed the Phase II 1.1 MW distributed

continuously reduce resource consumption and environmental footprint while enhancing the overall sustainability and climate

across three main business areas: domestic photovoltaic power station for Jinzhida Group successfully

resilience of our operations. At the same time we leverage supply chain collaboration mechanisms to encourage upstream and

and international product marketing project connecting it to the grid and expanding the total installed capacity

downstream partners to jointly pursue low-carbon transformation. By doing so we promote the establishment of a closed-loop green

development and investment and clean energy to 1.4 MW building on the success of the Phase I 385 kW project.management system across the entire value chain and foster a more sustainable industrial ecosystem.supply chain and industrial chain operations. We The project utilizes high-efficiency monocrystalline modules

continuously develop and construct distributed and smart inverters delivering over 90% of the electricity needs

photovoltaic power stations for commercial and for the production line of automotive interiors via low-voltage

industrial use. As of the end of 2025 we have grid connection covering core processes such as temperature-

invested in projects (including both completed controlled and hot-melt processing.and approved projects) with a total installed

capacity of 31 MW in commercial and industrial Based on estimates the project is expected to generate 1.14 million Highlight Energy Efficiency Upgrades in Cogeneration and Papermaking Systems

photovoltaic power stations. kWh in its first year. Over its full lifecycle (25 years) the cumulative

electricity generation will exceed 25.89 million kWh equivalent to To further advance energy conservation and carbon reduction in our production processes we through Universal Pulp and Paper implemented

saving approximately 11000 tonnes of standard coal and reducing a series of technical upgrades targeting the energy system and core production processes:

In 2025 13737 tCO2e. This "photovoltaics + intelligent manufacturing"

integration model not only helps Jinzhida Group advance toward Cogeneration system optimization Papermaking line upgrades Overall results

We have invested in projects (including both zero-carbon production but also provides a practical example

completed and approved projects) with a

for building a green supply chain across the industrial chain and We upgraded the steam turbine at We integrated and optimized the Following these upgrades we

total installed capacity of

promoting regional industrial green transformation. the cogeneration plant to improve steam systems across multiple save over 8000 tonnes of standard

31MW efficiency reducing the steam papermaking production lines coal annually corresponding

in commercial and industrial photovoltaic Estimated first?year Total lifecycle (25 years) consumption rate by 4.35kg/kWh reducing steam consumption per to a reduction of approximately

power stations power generation generation of and enhancing overall power tonne of paper by 0.1 tonne. 23782 tCO2e in greenhouse gas

reaches

25.89 generation efficiency. emissions. These improvements 1.14 million kWhmillion kWh deliver environmental benefits

while creating a virtuous cycle of

Save standard coal Reduce greenhouse gas technology advancement energy

approximately emissions by efficiency gains carbon reduction

11000tonnes 13737tonnes and economic value creation.

45 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 48

● Green Consumption

Highlight Giving New Life to Old Items: Building a Better Future Together

We engage external consumers by creating immersive and experiential consumption scenarios centered on green living needs

On World Earth Day 2025 C&D Property launched a themed campaign titled "New Life for Old Items Building a Better Future Together" across promoting the development of home product consumption toward low-carbon and intelligent solutions and enabling the practical

multiple projects and communities. Homeowners were invited to participate in engaging activities such as "Books for Veggies" "Flea Markets" adoption of green and smart lifestyles.and "Eco-classrooms." By swapping old books for fresh vegetables and trading idle belongings the initiative aimed to further enhance residents'

environmental awareness and foster a collective commitment to sustainable development. The campaign received an enthusiastic response with

a total of 67 sessions organized and 659 cumulative participants successfully promoting a new low-carbon lifestyle trend within the community.Highlight Innovating the "Zero?Carbon Living Home" Concept to Foster a New Ecosystem for Green Home Consumption

● Green Office Practices

We have comprehensively advanced a digital office system providing online services across administrative human resources

financial and business management functions. This enables paperless and intelligent office operations improving operational

efficiency and enhancing collaborative value. To further promote energy conservation and emission reduction we have established

Xiamen C&D International Building Daily Safety Energy Saving and Environmental Hygiene Management Measures. Our Green Office

Task Force conducts daily inspections of energy use within the office building to ensure that energy-saving measures are effectively

implemented. Key practices include:

Posting electricity-saving reminders in public areas to encourage employees to switch off power when leaving the office.Installing smart motion-sensor switches in staircases restrooms and other areas to automatically turn off lighting when unoccupied

preventing unnecessary power consumption.Reducing artificial lighting during periods of sufficient daylight and prioritizing the use of natural light to lower energy consumption.Encouraging the use of fans instead of air conditioning during weekend overtime while strictly controlling requests for extended air-

conditioning operation.We also strictly manage energy consumption in real estate development projects prioritizing the use of energy-efficient equipment I "Zero-Carbon Living Home" Green Energy Technology Showroom

and implementing systematic energy-saving management measures. Key initiatives include:

To promote the green transformation of home consumption in 2025 we partnered with Star Charge to launch China's first "Zero-Carbon Living

Home" Green Energy Technology Showroom in Shanghai.Optimizing the layout of temporary office and living facilities on construction sites based on natural conditions including building orientation

spacing and window-to-wall ratios. Temporary structures adopt color steel composite walls insulated roofing and high-performance doors Centered on household energy management and the concept of a zero-carbon lifestyle the showroom features six themed scenarios: outdoor

and windows to reduce energy waste.camping an integrated vehicle–home energy hub zero-carbon mobility zero-carbon coffee bicycle-powered electricity generation and balcony

Using energy-efficient lighting across construction sites and office/living areas with tower crane floodlights and area lighting equipped with

timed switches adjusted seasonally. photovoltaics. By integrating advanced technologies such as solar power generation energy storage systems and vehicle-to-grid (V2G) charging

Establishing a lighting operation management system supported by electricity consumption records to shorten automatic lighting durations and discharging we translate the zero-carbon concept into tangible and experiential daily life scenarios. This approach enables the deep

in public areas and improve energy efficiency. integration of zero-carbon technologies with home environments and provides consumers with a one-stop solution for zero-carbon living.Strictly controlling air-conditioning use in office areas maintaining indoor temperatures no lower than 26° C in summer and no higher than

20° C in winter.

We have established the "Zero-Carbon Living Home" as a standard configuration for the future upgrade of our smart appliance lifestyle stores

Installing energy-saving reminders near power sources to encourage employees to adopt electricity-saving habits.accompanied by a scalable rollout plan. In 2025 we launched five Zero-Carbon Living Home showrooms with plans to expand to 10 locations in

Prioritizing solar energy for hot water supply in living areas supplemented by electricity to reduce energy consumption.Establishing management systems for the maintenance inspection and operation of construction machinery optimizing construction 2026 and 40 to 50 stores by 2027. Through the integration of green lifestyle scenarios with our core business we aim to encourage households

scheduling to improve equipment utilization and load efficiency. to transition from traditional energy consumers to energy creators further strengthening our leadership in sustainable home innovation and

contributing to the development of a green ecosystem within the home living industry.

47 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 50

Energy Consumption in 2025

Energy Usage

Energy Type 2025 2024 2023 Energy Consumption Proportion in 2025

Electricity (kWh) 1851476286 1720332433 947373073 50.47

Coal (t) 205244 181876 166254 32.52

Natural Gas (m3) 51405296 52767011 39117790 15.16

Steam (t) 53708 206977 16889 1.13

Diesel (L) 1961264 2143085 446758 0.55

Gasoline (L) 717283 1728416 701654 0.169

Liquefied Petroleum

Gas (t) 952 668 7 0.001

Total Energy

Consumption (tce) 450839 436812 290138 100

Energy Structure for 2025 Electricity Structure for 2025

32.52%2.56%

4.75%

0.001%

In 2025 our total comprehensive energy consumption amounted to 450839 50.47%

0.55%

tonnes of standard coal equivalent (tce). The primary energy sources

0.169%92.69%

consumed were electricity and coal accounting for 82.99% of total energy

15.16%1.13%

consumption. During the reporting period we actively promoted the use of

photovoltaic and hydropower electricity with clean electricity accounting

for 7.31% of our total electricity consumption.Electricity Steam Natural Gasoline Diesel Liquefied Coal Grid Electricity Solar Power HydropowerGas Petroleum Gas

49 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 52

To systematically advance water resource management

Usage we have established a water-saving leadership team led by Highlight Institutional Guidance for Refined Water Resource Management

management and responsible for setting targets related

to water conservation. Our Sustainability Task Force is

of Water Universal Pulp and Paper continuously improves its water resource management structure by establishing a water-saving office clarifying responsibilities responsible for comprehensively promoting refined water and operating mechanisms and ensuring the orderly advancement of management work. In terms of compliance management it conducts water

use management continuously improving water resource withdrawal and water use management in accordance with laws and regulations and scientifically formulates and strictly implements water withdrawal

utilization efficiency and actively fulfilling our corporate plans in line with water withdrawal permits and water supply contracts thereby ensuring that water withdrawal and water use are legal and compliant. Resources responsibility for water conservation. In terms of monitoring and risk control Universal Pulp and Paper has established a routine mechanism for water resource monitoring risk identification assessment and early warning. It has installed flow meters at all water intake points and implements daily meter readings and monthly water use

analysis to dynamically manage water-related risks. In 2025 Universal Pulp and Paper focused on delivering tangible water-saving results set targets for

In our supply chain operations business water resources

water consumption per tonne of paper for each paper-making workshop and vigorously promoted reclaimed water reuse. During the year it used 1.033

are consumed mainly in factory production activities. To million tonnes of reclaimed water effectively reducing water resource consumption and improving water use efficiency and recycling levels.this end we implement a series of measures throughout

In our real estate business

the production process to improve water-use efficiency

and strengthen water-saving management continuously

we actively explore measures for water resource recycling and strive to reduce water consumption. We strictly implement sponge city

enhancing the utilization efficiency of water resources and

construction requirements and widely apply green technologies such as rainwater harvesting reclaimed water utilization and ecological water

effectively reducing water consumption. landscapes throughout project development and construction to improve water resource utilization efficiency and support the development of

water-saving projects:

Technology-enabled Water

Highlight

Resource Recycling

Leveraging rainwater collection systems we effectively capture rainwater from rooftops ground surfaces

Rainwater

Xiangguang Copper prepares an annual water usage plan and and pavements. The treated rainwater is used for non-potable purposes such as landscaping irrigation

Harvesting and

sets related targets installs flow meters at all water intake facility cleaning and other non-potable water needs reducing tap water consumption while alleviating

Reuse

points and regularly tracks and analyzes daily water intake pressure on urban drainage systems.Water is not only a fundamental resource for water consumption and wastewater discharge. In terms of

business operations but is also closely related to technological application Xiangguang Copper promotes

regional water security ecosystem health and processes such as reclaimed water reuse magnetic flocculation

wastewater treatment and ultrafiltration concentrate water

social well-being. We attach great importance to

reuse to reduce fresh water withdrawal and improve the Reclaimed Water

water resource management and regard water as Through a reclaimed water system we treat wastewater and reuse it for toilet flushing landscaping

recycling rate of water resources. Xiangguang Copper has Recycling and irrigation and replenishment of landscape ponds within projects.a strategic resource for safeguarding ecological established a graded wastewater treatment and reuse system. Reuse

security supporting sustainable development Relying on efficient wastewater treatment facilities it reuses

and enhancing operational resilience. We strictly treated wastewater that meets discharge standards in the

comply with laws and regulations such as the production process thereby conserving water resources and

Water Law of the People's Republic of China improving water use efficiency. In 2025 Xiangguang Copper In new projects we incorporate sponge city facilities such as sunken green spaces permeable pavements

achieved a water recycling rate of 97% thereby achieving highly

the Energy Conservation Law of the People's Sponge-based and rain gardens to enable rainwater retention detention and gradual infiltration. This helps reduce

efficient water recycling and intensive water use. Ecological Water

Republic of China and the Law of the People's water consumption for landscape irrigation and improve water resource utilization efficiency while also

Conservation capturing suspended pollutants and improving the ecological environment of communities.Republic of China on Prevention and Control In 2025

of Water Pollution. We have formulated and

implemented the Environmental Protection Xiangguang Copper achieved a

water recycling rate of

Policy and continue to strengthen mechanisms

for the identification assessment and routine 97%

monitoring of water resource risks.

51 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 54

Exhaust Gas Emission During the construction process in our real estate business the exhaust gas and dust produced during construction are common pollutants

that can impact the surrounding environment. During the project construction stage we implement a series of proactive measures to

Management manage and control the emission of construction-related exhaust gases and dust. During the construction of ongoing projects exhaust gas

Pollutant emissions remain in compliance with local regulatory requirements and dust control at construction sites meets the relevant requirements We generate exhaust gas primarily from production activities of the Ambient Air Quality Standards (GB3095-2012). We implement the following management measures for dust control:

at our factories and construction activities in our real estate

Discharge business. The main air pollutants include dust sulfur dioxide and nitrogen oxides. ·Deploying sprinkler systems in construction areas to cover key operation points and improve dust suppression efficiency.·Installing online dust monitoring equipment to monitor PM2.5 in real time and link it with sprinkler facilities to form a dynamic control

mechanism.During the factory production process air emissions primarily

·Cleaning vehicles entering and leaving construction sites through automatic high-pressure vehicle washing systems to reduce dust carried

originate from boiler flue gas in thermal power plants and onto roads and secondary dust.fugitive emissions. The main air pollutants include sulfur ·Optimizing waste transfer channels and equipping discharge outlets with misting devices to reduce dust dispersion during loading and

dioxide nitrogen oxides and particulate matter. Based on unloading.·Conducting mortar mixing operations in enclosed mixing sheds with sprinkler facilities installed around the sheds.production characteristics we have established control

·Setting up dust management signage refining on-site management requirements and implementing targeted control measures based on

targets for air pollutants and implemented control measures pollution-level classification.in the areas of organizational and operational support ·Covering exposed soil areas with turf or green mesh supplemented by water spraying and sweeping to improve dust-control effectiveness.source control treatment processes online monitoring and

emergency management:

Organizational and Operational Support Wastewater Discharge Management

The Safety and Environmental Protection Department is staffed with

environmental protection professionals for overall management

and thermal power stations are equipped with dedicated personnel The wastewater generated from our operations mainly comes from manufacturing activities at our factories and construction activities in

responsible for the operation and maintenance of environmental our real estate business. The primary pollutants in the wastewater include COD and ammonia nitrogen. We have put in place wastewater

protection facilities. We continue to improve management systems and

operating procedures and implement daily maintenance and upkeep. treatment facilities that meet environmental protection requirements and carry out process management and operation and maintenance

in accordance with reuse and compliant discharge requirements so as to promote wastewater reduction and resource utilization.Source Control

In the factory production process wastewater mainly comes from production wastewater domestic sewage and initial rainwater runoff. We

We continuously improve the management We strictly control the quality of coal fed into boilers and keep its sulfur

content below 1% thereby reducing the generation of pollutants such have established discharge control targets for key pollutants such as COD and ammonia nitrogen and implement control measures in the

of pollutant discharge including exhaust gas as sulfur dioxide.areas of management systems source control treatment processes and online monitoring:

wastewater and noise in accordance with the

Treatment Processes

requirements of laws and regulations such as

Management We have established an environmental management system improved environmental protection management systems contingency plans

the Law of the People's Republic of China on We adopt combined treatment processes such as low-NOx combustion Systems and for environmental emergencies and operating procedures for environmental protection facilities. The Safety and Environmental Protection

SNCR denitrification baghouse dust collection limestone-gypsum wet Operation and

the Prevention and Control of Atmospheric Department coordinates the implementation of environmental management requirements strengthens the operation and maintenance of desulfurization and wet electrostatic precipitators to reduce emissions Maintenance pollution treatment facilities and enhances operational execution through training.Pollution the Water Pollution Prevention and of sulfur dioxide nitrogen oxides and particulate matter and carry out

treatment in line with ultra-low emission requirements.Control Law of the People's Republic of China

Source Control We establish water-consumption targets per unit of product strengthen day-to-day water-use management and promote reclaimed

the Law of the People's Republic of China on Online Monitoring and Reuse water reuse so as to improve water resource utilization efficiency and reduce wastewater discharge.Prevention and Control of Soil Contamination

Automatic online monitoring equipment is installed at exhaust

and the Law of the People's Republic of China gas discharge outlets and connected to the competent authorities'

Multi-stage The plant adopts combined processes such as pretreatment anaerobic treatment biological film aeration tanks and secondary settling tanks

on Prevention and Control of Noise Pollution. monitoring network to achieve continuous monitoring. Treatment for multi-stage treatment. After pretreatment within the plant wastewater is conveyed by pipeline to the municipal wastewater treatment plant

Processes

We strengthen process control and compliance for further treatment and then discharged in compliance with applicable standards thereby maintaining stable and compliant discharge.Risk Prevention

monitoring to reduce the impact of pollutant

We regularly conduct environmental protection training and strictly Automatic monitoring equipment is installed at wastewater discharge outlets and connected to the environmental protection authorities'

discharge on the surrounding environment. implement operating procedures to reduce the risk of excessive emissions Real-time Online monitoring network. Third parties are engaged to carry out equipment operation and maintenance so as to ensure that monitoring data is

caused by facility failures or improper maintenance. At the same time we Monitoring accurate authentic and reliable.continue to improve contingency plans for environmental emergencies

and strengthen response capacity building.

53 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 56

During the construction process in our real estate business wastewater primarily comes from domestic sewage generated by construction Control and Communication in Sensitive Areas

personnel and on-site construction wastewater. We strengthen the management of pollutant discharge permits for projects and wastewater

control during the construction period.Reasonably arranging construction schedules based on the distribution of sensitive receptors such as schools hospitals and residential

areas around projects; obtaining permits for nighttime construction as required and notifying the community accordingly.·Installing three-stage sedimentation facilities at construction sites Before carrying out cutting vibration and other operations in densely populated areas with concentrated residential and institutional

where construction wastewater is collected and sedimented for recycling uses obtaining the required approvals and notifying surrounding parties of the work plan scope of impact and control measures.or discharged after meeting the standards.·Promoting prefabricated construction to reduce on-site wet operations

and lower the volume of wastewater generated.·Installing rainwater recovery devices and improving drainage systems

implementing the separate management of rainwater and wastewater

and strictly prohibiting the discharge of non-rainwater bodies into the

municipal rainwater pipeline network. Highlight Quiet Residences

·Strengthening the storage management of oil and chemicals through

measures such as dedicated storage rooms and impermeable ground

treatment so as to prevent spillage overflow dripping and leakage avoid I Sedimentation Tanks for Three Stages of Wastewater Treatment The C&D Haiyan Project adopts sound insulation materials

random dumping and reduce the risk of pollution to water bodies and soil.such as LOW-E low-radiation ultra-clear argon-filled warm-

edge double-glazed laminated glass PVB high-load-bearing

fully concealed sound-insulating hardware fittings and

patented thermal insulation strips. It also applies technologies

such as locally thickened partition walls between households

double sealing strips floating floor slabs and thermal and

acoustic insulation pads effectively reducing the impact of

environmental noise and creating a quiet living space. Based

Noise Management on the above technologies the C&D Haiyan Project was

awarded the highest-level "Platinum Certification" for Quiet

Residences by the China Society for Urban Studies in 2025. It

The noise generated during our operations mainly comes from construction sites and equipment rooms of real estate development projects. is the first project in Beijing to receive this certification and

We carry out noise control in accordance with local requirements and during the construction of ongoing projects noise emissions comply its outstanding performance in acoustic environment control I Ultra-thermal-insulating Soundproof I "Platinum Certification" for Quiet

System Windows Residences

with the relevant requirements of the Emission Standard of Environment Noise for Boundary of Construction Site (GB12523-2011). was authoritatively recognized.I We implement the following measures for noise control at construction sites and equipment rooms:

Noise Monitoring and Early Warning

Installing noise monitoring equipment to conduct real-time monitoring of noise levels at construction sites and provide early warning for any

exceedances.Optimization of Construction Organization and Operational Management

Selecting low-noise construction machinery and processes reasonably arranging the operating periods of high-noise equipment and avoiding

overlapping high-noise operations.Setting up enclosed soundproof barriers for high-noise equipment and implementing enclosed construction management during the fit-out stage

of commercial complexes and small businesses.Standardizing the management of transport vehicles maintaining them in good technical condition and minimizing unnecessary abnormal noise.

55 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 58

The Company in accordance with the Law of the People's Republic of China on the

Waste Prevention and Control of Environmental Pollution by Solid Wastes the Standard

for Pollution Control on the Non-hazardous Industrial Solid Waste Storage and

Landfill the Standard for Pollution Control on Hazardous Waste Storage and other

Disposal relevant national and local regulations and in line with solid waste management

requirements continuously improves and refines its waste management systems

and operational procedures. We follow the principles of reduction valorization

and harmlessness in our operations promoting source reduction classified

management compliant storage and standardized disposal so as to minimize the

potential environmental impacts of waste.General Waste Hazardous Waste

We generate general waste from our

In factory production We generate hazardous waste from our operations primarily through factory production activities and construction activities in our real

operations mainly through factory estate business mainly including waste mineral oil waste oil drums and similar materials. We implement full-process management of

production activities and construction

we reduce raw material consumption and waste generation by optimizing production hazardous waste covering generation storage transfer and disposal to ensure compliant handling.activities in our real estate business

processes and equipment configurations. We have established a waste classification and

including construction waste industrial recycling system in which fly ash slag and desulfurized gypsum are used as raw materials

waste and domestic waste. We by our building materials company while waste plastics and scrap metals are sold externally In factory production In real estate construction

continuously optimize our management as production inputs in accordance with management requirements achieving resource

measures to improve resource efficiency recovery.we strictly control the generation storage and disposal we transfer toxic and hazardous waste to specialized

and reduce waste generation.of hazardous waste and entrust qualified third-party treatment centers and strictly prohibit activities on-site that

In real estate construction organizations to carry out disposal ensuring that all processes may produce toxic or hazardous substances such as melting

meet regulatory requirements. asphalt or burning waste thereby mitigating environmental

we implement waste classification and on-site management measures for ongoing projects: risks at construction sites.· We set up temporary waste storage areas with classified storage separately manage waste that may cause secondary pollution equip them

with safety measures and clear signage and provide waste handling training to ensure construction personnel understand and comply with

management requirements.· We establish enclosed garbage stations on construction sites equipped with misting dust suppression devices and dust screens and

conduct cleaning and maintenance according to schedule.· Waste is classified as recyclable for external transport non-recyclable for external transport and suitable for on-site treatment. Crushed

bricks and debris can be reused as backfill for basement pits reducing the need for external disposal.

57 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 60

Environmental We strictly comply with the Environmental Protection Law of the People's Republic of China the Environmental Impact Assessment Law of the People's Republic of China and other relevant laws and regulations of the locations where we operate.We clearly define operational requirements for the Company and its subsidiaries regarding pollutant emission control water

Compliance resource protection and other aspects through internal policies such as the Environmental Protection Policy. We continue to advance the development of our environmental management system and all our manufacturing enterprises have now been

certified with the ISO 14001 Environmental Management System. In 2025 we did not experience any major environmental

Management incidents.Environmental Risk Control Highlight Emergency Drill for Waste Ink Leakage

We conduct identification and assessment of environmental risks that may arise from our business activities in accordance with risk In 2025 Zhongli Group a subsidiary of the Company carried out a scenario-based drill focusing on leakage risks during the handling and

management systems and procedures. Based on specific projects we carry out targeted risk identification and assessment determine risk temporary storage of waste ink. The drill focused on key management requirements such as personal protection on-site isolation leakage

levels and implement corresponding control measures to mitigate potential environmental risks. control adsorption and collection hazardous waste drum labeling and temporary storage and record-keeping and tested the consistency

of post execution the suitability of emergency materials and the efficiency of information reporting. Based on the drill review we improved

relevant operating procedures and training priorities checked and supplemented the allocation of emergency materials and further clarified

responsibilities for on-site handling and collection management thereby enhancing the capability for standardized response to sudden leakage

incidents and reducing potential impacts on personnel safety environmental compliance and on-site order.Environmental Emergency Management

We implement the provisions of the Emergency Response Law of the People's Republic of China the Contingency Plan for Environmental

Emergencies the Measures for the Administration of Contingency Plan for Environmental Emergencies and other relevant laws Environmental Protection Culture

regulations and guidelines. We have developed comprehensive emergency response plans such as the Comprehensive Contingency

Plan for Environmental Emergencies and the Special Contingency Plan for Hazardous Waste Environmental Emergencies as well as an

We organize environmental training and thematic awareness activities in line with environmental management requirements to enhance

annual environmental emergency drill plan. We organize environmental emergency drills to strengthen our emergency response and

employees' environmental awareness and strengthen daily behavioral standards. In 2025 we conducted multiple environmental training

handling capabilities thereby reducing the potential environmental impacts of unexpected incidents and safeguarding public health and

and awareness activities focusing on topics such as World Environment Day campaigns and hazardous waste awareness training.environmental safety.

59 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 62

Circular ● Scrap Steel Recycling ● Scrap Aluminum Recycling

We have established several million-tonne-level The recycling and utilization of high-energy-consuming products such as non-ferrous metals can effectively reduce carbon emissions

Economy "National Recycled Steel Processing and Distribution across the value chain including raw material extraction transportation and production. We expand our non-ferrous metal recycling and Demonstration Bases" in Tianjin Tangshan Baotou processing business to reduce energy consumption extend resource lifecycles and promote the development of a circular economy.and Benxi forming a nationwide recycled resource

circulation network. In 2025 our annual contracted We have deeply developed our recycled aluminum resource business establishing a joint venture with Lanxi Boyuan Metal Co.volume of scrap steel exceeded 1000000 tonnes Ltd. in Thailand for overseas raw material procurement sorting and smelting. We have also built in-transit supply chain financing

effectively breaking regional barriers and improving partnerships with numerous overseas recycling companies and begun establishing feedstock processing operations with some

the cross-regional allocation efficiency and market- domestic enterprises contributing global solutions for aluminum resource reduction and reuse.based pricing of scrap steel resources.In 2025 the company recycled a total of 54000 tonnes of recycled metals (including recycled aluminum aluminum alloys and

Leveraging our self-developed industry collaboration copper) with the business scale reaching CNY 940 million.platform "C&D Esteellink" the "E-Scrap Steel" mini

program and an unattended intelligent weighing In 2025

system we have achieved a fully digitalized closed-

loop management of scrap steel from collection and the company recycled recycled metals (including recycled with the business

aluminum aluminum alloys and copper) a total of scale reaching

processing to distribution.

54000 tonnes 940 million CNY

In 2025 Shanghai C&D Materials Co. Ltd. a subsidiary

of the Company was elected as a Vice President Unit

of the China Scrap Steel Application Association.Developing a circular economy is a key Its scrap steel operation unit was recognized by

●

Shanghai Steel Union as a "Benchmark Enterprise in Waste Paper Recyclingstrategic initiative for China to promote green

and high-quality development and it plays an Resource Recycling" and became a lifetime member

of the Mysteel Inner Mongolia Urban Mining Core We guided by the core concept of "Developing a Circular Economy and Building a Green Paper Industry" actively engages in waste

important role in ensuring national resource

Enterprise Club. paper recycling and uses waste paper to produce various paper types including coated paper and kraftboard aiming to reduce the

security optimizing the economic structure consumption of natural resources such as wood. We actively implement the following measures to deepen resource conservation and

protecting the ecological environment circular utilization practices:

at a high level and advancing ecological In 2025 Promote the recycling and reuse of waste paper pulp residue coal slag and fly ash achieving circular use of solid waste

civilization. In 2025 the country issued the throughout the production process.Shanghai C&D Materials Co. Ltd.

15th Five-Year Plan Outline and the Action Plan a subsidiary of the Company was Reduce steam consumption and energy intensity through technological upgrades and process improvements in the turbine

for the Application and Promotion of Recycled elected as a systems of thermal power plants and paper production lines.Vice President Unit of the China Scrap

Materials which emphasize enhancing the Steel Application Association Advance energy-saving and consumption-reduction management in production decrease standard coal consumption and

supply capacity of recycled steel improving achieve synergistic improvements in energy efficiency emission reduction and product quality.Its scrap steel operation unit was

the supply of recycled non-ferrous metals recognized by Shanghai Steel In 2025 our total recycled waste paper reached 500000 tonnes including 65800 tonnes of pulp residue from production and 87000

Union as a

and strengthening the supply of recycled "Benchmark Enterprise in tonnes of coal slag and fly ash all of which were reused as solid waste resources.paper and other materials to promote the Resource Recycling"

development of a circular circular economy. In 2025

became a lifetime member of the

We actively practice the concept of a green Mysteel Inner Mongolia Urban Mining our total recycled waste paper including pulp residue coal slag and

circular economy promote the efficient Core Enterprise Club. reached from production fly ash

recycling of resources and are committed to 500000 tonnes 65800 tonnes 87000 tonnes

building a green low-carbon and sustainable

economic system.

61 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 64

Ecosystem and Biodiversity

Protection

● Waste Oil Recycling Our business activities are highly dependent on the ecosystem services provided by biodiversity. Therefore maintaining natural ecosystems and

promoting the conservation and restoration of biodiversity have become an important part of our sustainable development agenda. We actively

respond to global initiatives and international conventions including the 2030 Agenda for Sustainable Development the Kunming-Montreal Global

We leveraging our specialized supply chain LIFT services have established long-

In 2025 Biodiversity Framework the Convention on Biological Diversity and the Convention on Wetlands. We strictly comply with environmental protection laws

term strategic partnerships with multiple biodiesel and waste oil refining plants and regulations such as the Environmental Protection Law of the People's Republic of China the Law of the People's Republic of China on the Protection

integrating the "waste oil–processing–energy" industrial chain. This facilitates

we exported and sold industrial- of Wildlife and the Regulations of the People's Republic of China on Wild Plants Protection comprehensively strengthening ecological risk management

the comprehensive recycling and utilization of waste resources such as gutter grade mixed waste oil to ensure that all business activities meet ecological protection requirements and avoid damage to natural ecosystems.oil and kitchen waste oil providing environmentally friendly and effective

alternatives to depleting fossil fuels and reducing exhaust emissions. 300000 tonnes

We have incorporated biodiversity conservation into our Environmental Protection Policy with management responsible for overseeing and promoting

In 2025 we exported and sold 300000 tonnes of industrial-grade mixed waste reducing carbon emissions by over the implementation of ecological protection measures across all subsidiaries and stakeholders. We carry out land restoration to minimize negative

oil reducing carbon emissions by over 1000000 tonnes. 1000000 tonnes impacts and maximize benefits strictly prohibit the use of rare wild flora and fauna as production materials and forbid experimental activities involving

rare wild animals. Measures are taken to address or avoid significant environmental or landscape impacts ensuring that the entire production and

operation process complies with ecological sustainability requirements. In business development we continuously optimize ecological management

practices deepen green and low-carbon operations and effectively reduce the impact of our business activities on the ecological environment and

biodiversity providing a solid foundation for the long-term stable and healthy development of ecosystems.Highlight Circular Use of Conference Materials Highlight Protecting the Blue Through Science—Chinese White Dolphin Conservation Initiative

In 2025 we together with the Commodity Pulp

To further expand the social impact of the "Chinese White Dolphin Conservation Initiative"

Working Committee of the China Paper Association

and promote joint efforts between industry and public participation in safeguarding marine

hosted the China Pulp & Paper Conference. The

ecosystems and biodiversity we through our subsidiary Paper & Pulp Group organized over 30

conference themed "Openness Development

students from Donghui Primary School in Jimei District Xiamen to visit three cetacean exhibition

Integration and Win-Win Cooperation" brought

halls and a coral conservation center. The students participated in a marine science activity

together industry leaders experts scholars and

focused on the Chinese white dolphin. Guided by professional volunteers the students closely

company representatives from China and abroad

observed cetaceans and specimens of rare marine species gaining a deeper understanding of

to discuss the current status and future trends of

the Chinese white dolphin's behavior habitat and the ecological challenges it faces while also

the global pulp and paper industry.learning about the important role of coral reef ecosystems in maintaining marine biodiversity.The conference implemented resource

Through immersive visits and interactive science education the children developed a strong

conservation and circular utilization in material

interest in marine ecological protection and gained a clearer understanding of the importance

use and catering arrangements fully adopting eco-

of protecting the Chinese white dolphin and its habitat. This activity not only enhanced

friendly tableware using 100% recyclable signage

environmental awareness among youth but also extended our biodiversity conservation efforts

and giving priority to locally sourced food. These

to public education using knowledge dissemination and value guidance to pass on ecological

measures reduced the consumption of disposable materials and transportation resource waste promoting resource reduction and recycling in

protection concepts to the next generation and jointly safeguard a sustainable marine ecosystem.conference operations and continuously practicing the concept of a "zero-carbon conference."

63 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 66

Social

Social Performance Targets for 2025

Achieve full coverage of community communication mechanisms across operating sites and continue community dialogue and

stakeholder engagement

Carry out no fewer than 150 volunteer service activities throughout the year with volunteer service hours of no less than 5000

No litigation cases arising from intellectual property infringement occurred throughout the year

Advance the integration of sustainability requirements into supplier access and evaluation mechanisms

Establish and continuously improve supply chain risk identification assessment and response mechanisms

No material penalties related to the health and safety of products and services occurred throughout the year

Continue employee training to ensure that the average training hours per employee reach no less than 20 hours

Achieve 100% employee coverage of safety training

Promote full certification coverage of the Occupational Health and Safety Management System (ISO 45001) among subsidiary

manufacturing enterprises

No major or more severe safety accidents occurred throughout the year

Completion Status Completed In Progress Unfinished

65 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 68

Rural Revitalization "Together Go Beyond" has long been the brand philosophy we uphold. To promote the sustainable development of community relations we have formulated a Community Policy integrated the relevant requirements of the

United Nations Sustainable Development Goals (SDGs) into our operations established working mechanisms

and Contributions to for needs feedback risk assessment and community co-development and continuously improved our communication and collaboration with communities. In practice we focus on areas such as rural revitalization

education support community development and public welfare and charity promote alignment between our

the Society operations and community needs and gradually build long-term and stable partnerships.under the "Moments Photo Studio" initiative so as to continuously respond to the practical needs of elderly groups and disadvantaged families

Revitalizing Rural Areas Advancing Together and strengthen villagers' emotional connection with the community. In our long-term practice we have gradually introduced a youth participation

through Assistance mechanism organized special research under the "Rural Ambassador" initiative and mobilized young cadres from various business segments to

conduct field visits and research in Renshe Village thereby forming recommendations for sustainable rural development.Rural revitalization is an important pathway for promoting coordinated urban-rural development and achieving common prosperity. In 2025 we continued to carry out the "Caring Rice" subscription campaign with cumulative subscriptions exceeding 4800 kg of rice thereby

Leveraging our industrial chain resources and business layout we integrate rural revitalization into our daily operations and value boosting agricultural product sales and promoting income growth for farmers.creation process. Through consumption-driven assistance support for the development of distinctive industries and participation in

the improvement of basic rural conditions we continue to expand the space for rural development and help foster rural environments

that are livable and business-friendly.Exploring an Integrated Development Path for Agriculture Culture and Tourism through

Highlight

"Village Enterprise + SOE" Collaboration

Renshe Village is located in Tingxi Town Tong'an District Xiamen. Relying on its ecological landscape

and rural cultural resources it has a sound foundation for developing an integrated cultural and In 2025

tourism industry. We have established a paired assistance partnership with Renshe Village in Xiamen

I Thematic Research Visit to the Village I Assistance Discussion Meeting

and continue to explore a coordinated development path of "SOE + village enterprise" collaboration. with cumulative

By organically integrating industrial support consumption-driven assistance and public welfare care subscriptions exceeding

we are gradually developing a sustainable model for rural development. 4800 kg of rice

Through co-development agreements thematic research and exchange seminars we identified

and analyzed the development needs of Renshe Village while exploring a path for the integrated

development of agriculture culture and tourism. To improve the quality of the rural environment

we organized volunteer service activities in connection with occasions such as Arbor Day carried out

environmental clean-up and greening maintenance and continuously maintained areas such as "C&D

Sunshine Road" thereby helping improve the village appearance and enhance the quality of the living

environment. At the same time we paid close attention to rural public services and community care

by organizing health awareness lectures holiday care visits and public welfare photography activities

I Delivering Care to Elderly Villagers I Health Awareness Lecture for the Elderly

67 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 70

Supporting Education Building Dreams for the Future

Highlight "Second Classroom" Expands Development Opportunities for Rural Students

Centered on support for youth education we continue to build the youth public welfare brand "Love Has a Future" and promote the Guided by the core concept of "warm-hearted education" we have maintained a long-term partnership with Ding'an Primary School in Xiamen

and 2025 marks the thirteenth year of this collaboration. Over the past thirteen years we have mobilized more than 15 youth organizations and

regular operation of programs such as "Nourishing the Youth" and "Lifting Your Dreams." We place particular focus on areas with

carried out over 100 campus activities gradually forming a regular education support mechanism.relatively limited educational resources and through sustained investment and program-based operations improve educational

conditions for local youth and promote educational equity. In 2025 leveraging our industrial and international resources we developed a series of "Second Classroom" courses and practical activities.Through sessions on trade and cross-cultural exchange scientific experiments and hands-on practice and financial fraud prevention we

broadened students' horizons and strengthened their basic competencies. In addition we organized campus science outreach activities in

connection with occasions such as the New Year so as to enhance participation in learning and make the learning experience more engaging.Highlight Support Provided by the "C&D Real Estate Education Charity Fund"

Upholding the belief that "where there is love there is a way" C&D Real Estate established the "C&D Real Estate Education Charity Fund"

in 2007. Over the years the company has continuously developed signature programs centered on care for children in need and education

support and has actively participated in charitable and public welfare initiatives such as student aid poverty relief and support for orphans."Nourishing the Youth" Paired Assistance Program for "Lifting Your Dreams" Charity Program

Orphaned and Vulnerable Children

Children in difficult circumstances often face inadequate "Lifting Your Dreams" is an education assistance

support in education and daily life as they grow up. program implemented by the C&D Real Estate Education I "Car Transformation" Hands-on Racing Car Assembly Activity

I "Science Lights Up the New Year Young Hearts Bring Joy to Campus" New Year

Carnival

In 2025 through the Charity Fund we participated in Charity Fund. Through financial aid and other forms of

the "Nourishing the Youth" paired assistance program education support it provides continuous assistance to

for orphaned and vulnerable children. Through paired graduating candidates and enrolled students helping

assistance home visits and the provision of assistance them complete their studies successfully. In 2025 Highlight Study Tour Activities Promote the Integration of Ecological and Traditional Cultural Education

funds and daily necessities we provided targeted relying on the Charity Fund we participated in the "First

support to children and their families. The program Back-to-School Gift" education assistance activity in

covered 130 orphaned and vulnerable students across Fengxiang Subdistrict. Together with the subdistrict and In 2025 Lianfa Group organized 50 students

the city and household visits were carried out in relevant departments we conducted home visits and from Donghui Primary School to visit the herbal

places such as Xinxu Town Fengxiang Subdistrict and targeted assistance for five newly admitted university medicine science education base in Zhonglun

Yunyang Village in Tong'an District extending support students from financially disadvantaged families within Park and participate in a study tour themed on

resources further to the family level. the area providing enrollment support and necessary traditional Chinese medicine culture. Combining

material assistance while also paying attention to on-site visits with interactive experiences the

students' practical needs and study conditions through activity guided students to understand the

visits and communication. characteristics and applications of common

Chinese herbal medicines learn the fundamentals

of traditional Chinese medicine culture and

deepen their understanding of ecological I Leading Children to Explore the World of

protection and green living concepts. At the same Herbal Medicine

time the activity incorporated teamwork and

engaging extension elements thereby enhancing

students' engagement and overall capabilities. I Fun Activities at the "Chinese-style Garden Carnival"

69 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 72

Rooted in Communities Growing through Mutual Benefit

Highlight Building an Integrated Ecosystem of "Culture + Community + Commerce"

Communities provide an important foundation for corporate operations while corporate development also affects the community

During the summer of 2025 focusing on community life and customer service we integrated resources from

environment and public resources. Establishing sound and mutually beneficial relationships helps support the long-term and stable In 2025multiple business segments including real estate development commercial management property services

development of both sides. To promote the coordinated development of our business operations and sustainable communities we and the membership system and carried out a series of activities themed around the inheritance of intangible carried out intangible cultural

integrate community relations management into our daily operations. cultural heritage thereby expanding cultural experiences in community and commercial spaces. heritage experiences and

related activities more than

· Community Communication and Feedback · Community Risk Assessment · Supporting Local Development C&D Real Estate's "Chinese-style Youth" brand campaign reached more than 70 cities and nearly 300 500

projects nationwide and carried out more than 500 intangible cultural heritage experiences and related

We have established dedicated During business expansion and Through measures such as giving priority activities in total. The intangible cultural heritage experience activities organized under the 9th "Summer

communication channels at each operating project implementation we carry out to local employment and expanding Transformation Program" of C&D Commercial Management attracted more than 4100 families. Under its attracted more than

site and set up information feedback community risk identification and local procurement and cooperation

mechanisms to provide community assessment incorporating factors such opportunities we strengthen connections "Yuexin Community" initiative C&D Property organized activities such as the "Summer Transformation 4100 families

residents and other stakeholders with as the protection of residents' rights and between the Company and communities Camp" and the "Parent-Child Fun Run" and carried out intangible cultural heritage experiences physical

channels for consultation feedback and interests respect for cultural customs and promote regional economic development fitness training and parent-child interaction activities attracting thousands of property owners.complaints. We also record follow up ecological and environmental impacts into and foster positive community relations.on and handle related requests thereby early-stage consideration so as to reduce

improving the timeliness and effectiveness the potential impact of our operations on Through multi-business coordination and scenario-based operations we integrate cultural inheritance

of communication. surrounding communities. into community services and continue to enrich residents' diverse living experiences.Highlight Building a Sustainable Community Service Model through Community Partnerships

We have maintained a paired community partnership with Jinjiting Community Lianqian Subdistrict Xiamen

since 2018. Since the start of this collaboration through mechanisms such as the "dual reporting" system for In 2025

Party members we have organized volunteer service teams to participate in community services on a regular

we had carried out more than

basis gradually forming a stable model of community co-development. As of the end of 2025 we had carried

out more than 80 community activities of various kinds contributed nearly 3000 hours of volunteer service 80

and served more than 3000 community residents in total. community activities of various

kinds

In 2025 focusing on the actual needs of the community we placed particular emphasis on services for the elderly

and carried out the "Silver Care" series of activities. We organized nearly 10 events including chess and card I Walking with Intangible Cultural Heritage: Children's Edition Xiamen C&D I Family Fun Run Nanjing Station

contributed nearly Wan Yue Cheng

competitions for the elderly birthday gatherings for senior residents and cultural activities for older people

serving approximately 500 elderly participants in total. At the same time in connection with occasions such as the 3000

Spring Festival and the Double Ninth Festival we carried out care visits to the elderly free medical consultation hours of volunteer service

services and holiday activities thereby enhancing the coverage and participation of community services.I Summer Transformation: Intangible Cultural Heritage Inheritance Xiamen I Summer Transformation: Intangible Cultural Heritage Inheritance Hangzhou Station

I Art Performance at the Elderly School I Free Medical Consultation Service I Free Haircut Service Station

71 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 74

Care to Share Aware through Public Welfare

The "C&D Inc. Global Public Welfare Initiative" is a global volunteer public welfare project launched by the company in 2023. At

present the number of registered volunteers under this initiative has exceeded 3400. In 2025 we organized employees to carry out

volunteer service activities in areas such as major event support ecological and environmental protection public welfare care and

community services while continuously expanding opportunities for participation in volunteer service. Throughout the year we

carried out nearly 200 activities engaged more than 5000 participants and contributed 14249 volunteer service hours.In 2025 I Cheerleading Volunteers for Sports Events I Arbor Day Volunteer Service

Carried out nearly Engaged more than Contributed

200activities 5000participants 14249volunteer service hours

Event and We organized employees to participate in volunteer services for the C&D Marathon and provided volunteer services

Competition and cheerleading support for sports events such as the "Three Major Ball Games League" and the "Industrial Bank Cup

Support Basketball Tournament" thereby helping ensure the smooth running of these events.Ecological and

Environmental We carried out volunteer service activities for Arbor Day and organized employees in Xiamen to participate in tree-planting I "Love and Charity Month" Charity Bazaar I Delivering Water to Front-line Cleaners

Protection activities at the Software Institute thereby enhancing awareness of ecological protection.Activities

We organized charity bazaars and collected more than 800 donated items with all proceeds to be donated to a relief

Social Care and program for children with epilepsy. Through the "Thousands Showing Love" public welfare donation campaign we

Relief raised nearly RMB 410000 in charitable funds. Under the "Quenching Thirst Program – Caring for Front-line Cleaners"

initiative we provided care and support for front-line workers.We organized volunteer service activities such as "Clean Home" and the "Tidiness Plan" in Xucuo Community

Maintenance of

Public Areas participating in environmental clean-up and the maintenance of public order thereby improving the community

environment.I "Clean Home" Volunteer Service Activity

I C&D Marathon Volunteers I Public Area Cleaning under the "Tidiness Plan"

73 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 76

Innovation- R&D and Innovation Intelligent Technologies and AI Applications

With a focus on the integrated application of "AI + Supply Chain" we developed the "C&D Cloud Intelligence" AI Integrated Service Platform and

integrated multi-channel access points such as WeCom and Feishu promoting the application of AI capabilities throughout the entire supply chain

driven Guided by the five-year plan for "technology empowerment" business process. Centering on key links such as risk control and compliance operations management and customer services we continuously we continue to advance the R&D and application of digital and expanded the application of AI technologies across business scenarios and improved operating efficiency and risk management capabilities. In 2025

intelligent technologies in the supply chain field. Focusing on the relevant platforms launched multiple AI functions in total and processed more than 2.7 million business documents of various types.key areas such as global expansion supply chain operations

logistics management compliance and risk control data

governance and business coordination we continuously

strengthen the supporting role of technology for our core

businesses and promote the deep integration of R&D and

innovation with business development.Platform and Customer Services

Against the backdrop of the continued deepening

of a new round of technological transformation We advanced the development of online supply chain

technology systems centered on data are evolving service platforms and launched the "C&D Cloud Business"

at an accelerated pace. Technologies such as cloud online customer service platform connecting key upstream

computing artificial intelligence the Internet and downstream business links and enabling core

functions such as online pickup signed-document return

of Things blockchain and 5G are continuously

and business inquiries. At the same time in response to the I "C&D Cloud Business" Online Customer Service Platform I "C&D Cloud Intelligence" AI Integrated Service Platform

expanding their application boundaries and are development needs of overseas business we improved the

gradually penetrating from the consumer sector system's localization and adaptation capabilities built a

across all stages of the industrial chain driving the functional architecture supporting multiple languages time

transformation of supply chain operating models zones and currencies and advanced the development of

toward digitalization networking and intelligence. We overseas financial systems gradually realizing functions

such as accounting reporting receipt and payment

continuously improve the institutional framework for

management and tax administration under multiple

digitalization and innovation management and have accounting standards.formulated and implemented the Digital Management

Regulations Quality Manual Project Management

Production and Operations Management

Process Intellectual Property Management Process Highlight "EasyAgri" Smart Supply Chain Platform

and other policies and procedures to provide

We continued to advance the support provided by

standardized support and institutional safeguards information systems for the restructuring and integration of We took the lead in building the "EasyAgri" smart supply chain

for technology application and innovation activities. Zhongli Group and the integration of business and finance platform integrating artificial intelligence big data and Internet

At the same time we regard the development of completed network deployment across multiple regions of Things technologies to cover the entire process of agricultural

digital technology capabilities as an important and initially established an integrated system featuring products from production forecasting and assessment to trading

direction for growth continuously advance the "group-level centralized control and efficient localized and through to logistics execution. By building meteorological

operation and maintenance." At the same time we

integrated application of digital technologies and models and applying machine learning algorithms the platform

unified the collaborative office service platform improved

supply chain business explore the establishment of analyzes crop growth conditions and on that basis combines the mechanisms for fund and expense control and

a digital service system across multiple application yield estimation with changes in supply and demand to forecast strengthened collaboration between business and finance.scenarios and promote the deep integration of digital price trends. At the same time with functions such as opportunity

identification and logistics scheduling it enables market analysis

technologies and green development facilitating their

operational optimization and risk management across the

application in green manufacturing and supply chain

agricultural product supply chain.management and supporting the transformation and

upgrading of traditional industries.

75 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 78

Digital and Intelligent Empowerment Lean Operations — The Logistics Control Tower In 2025 several of our digital products received multiple honors in the field of technological innovation:

Highlight

Achieves a Leap from System Development to Business Efficiency Improvement

AI-empowered Supply Chain Case "EasyAgri" Smart Supply Chain Platform

We continued to advance the development of the Logistics Control Tower project. After three years of implementation the related systems have gradually

Class A Certificate in the Supply Chain Track of the 6th Silver Award in the "CFLP 2025 Artificial Intelligence

shifted from the system development stage to the business empowerment stage continuously enhancing the integration and collaborative management China Artificial Intelligence Competition Application Competition" among other honors

capabilities of supply chain logistics resources. Focusing on key links such as transportation management warehouse-distribution coordination and

risk control we promoted the online management of transportation operations and gradually realized the system-based management of quotation

inquiry order entrustment execution and settlement processes thereby improving compliance in logistics procurement and optimizing transportation "C&D Esteellink" – Digital Collaborative Service Platform for "Artificial Intelligence + Better Homes" Application

the Steel Industry Chain

costs. At the same time we optimized warehouse-distribution models for business scenarios such as agricultural products improved key processes Innovation Solution

Selected as a National E-commerce Technology

including transportation entrustment and inventory picking and allocation and enhanced logistics operating efficiency. In terms of risk management we Selected as a Fujian Province Information Technology Innovation Application Case of the Ministry of

Application Innovation Solution

established a logistics credit limit management system promoted the online and standardized management of supplier credit limits and strengthened Commerce (Industrial E?commerce Category)

credit management and risk prevention and control capabilities in supply chain business."Artificial Intelligence + Better Communities" Practical Artificial Intelligence Enhances Both Community Safety

Innovation Application Management and Service Standards

Selected as a Typical Artificial Intelligence Application Selected as an Innovation Case in the 7th Smart

Data?Driven Intelligent Decision?Making — The "Insight Compass" System Empowers Scenario of Fujian Province Enterprise Development Program

Highlight

Digital Governance and Business Innovation

Diamond Club: Building an Industry Ecosystem Customer Data and

Service Platform to Empower New Consumption Upgrading

We continue to optimize the "Insight Compass" product series advance the development of the data

In Selected as a 2025 Achievement in Digital Xiamen Development

governance system and promote the application of data in areas such as business decision-making industry 2025

research and risk early warning. Leveraging platforms such as "Insight Compass BI" and "Insight Cloud Ladder" The platforms produced

we continuously improve our capabilities in data analysis and decision support and enhance data application more than

across management departments and business segments. On this basis we strengthen data governance and 2800

data quality management advance the development of the master data system improve key data standards

industry research reports

and models and enhance data consistency and usability. At the same time in response to the needs of industry Intellectual Property Rights Protection

research and risk management we expand functions for market monitoring and early warning and improve data

responsiveness and analytical capabilities. In 2025 the platforms produced more than 2800 industry research

reports in total and their data-driven decision-support capabilities continued to strengthen. To effectively support R&D and innovation and promote the commercialization of technological

achievements we strictly comply with the Patent Law of the People's Republic of China and the Trademark 2025

Law of the People's Republic of China as well as other relevant laws and regulations. We continuously Newly authorized patents

improve the full-process framework covering the creation management utilization and protection of

intellectual property and steadily enhance our capabilities in intellectual property compliance management 22

and strategic application.Industry?Education Integration Collaborative Innovation — An Enterprise?University Joint

Highlight

R&D Cooperation Mechanism for Artificial Intelligence and Data Security Newly registered copyrights

For different categories of intellectual property including trademarks patents copyrights and trade secrets

We have established a long-term industry-university-research cooperation mechanism with the School of Information Science and Engineering at 28we have established a category-based management mechanism and dedicated protection system. Relevant

Xiamen University. Centering on "joint R&D complementary resources and shared achievements" we carry out collaborative innovation and advance

departments coordinate the application and registration standardized use risk monitoring and rights

R&D cooperation in key technological fields such as artificial intelligence and cross-border data security. In the field of artificial intelligence both parties

protection of intellectual property. At the same time we organize special training sessions and awareness Newly registered trademarks

conduct joint R&D on technologies such as multilingual recognition public opinion analysis and legal and compliance risk control models while

activities on intellectual property from time to time to strengthen employees' awareness of intellectual

also exploring the application of these technologies in supply chain operations. In the field of cross-border data security the cooperation advances

property protection and compliant use of intellectual property and to actively foster a sound culture of 60

the R&D and practical application of technical solutions such as zero-trust access and encrypted data transmission thereby enhancing data security

and compliance assurance capabilities in cross-border business. During the cooperation process we provide business use cases data resources and respecting innovation and protecting achievements.computing support while the university contributes algorithm models and technological R&D capabilities. The resulting achievements are shared

in accordance with agreed arrangements and their application is gradually advanced through technical evaluation and business validation thereby In 2025 we continued to advance intellectual property creation and management adding 22 newly

promoting the coordinated development of technological innovation and business needs. authorized patents 28 newly registered copyrights and 60 newly registered trademarks. No litigation cases

arising from intellectual property disputes occurred throughout the year and overall intellectual property

management remained stable and sound.

77 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 80

Supply Chain Security daily collaboration management. Partners are required to commit to complying with business ethics and environmental protection regulations Suppliers as well as internationally recognized human rights standards. We focus on matters such as employee working hours living conditions minimum wage guarantees and corporal punishment and disciplinary measures encouraging partners to continuously improve their compliance and

responsible management levels. Concurrently the Company places significant emphasis on integrity management with suppliers advocating for

and Clients Supply chain security serves as the core foundation for the establishment of long-term stable and trustworthy relationships. Before commencing business suppliers must sign an Integrity Agreement supporting high-quality corporate development. We and a Commitment Letter for Integrity and Lawful Conduct promising to comply with applicable laws and regulations and not to solicit or offer

thoroughly implement national strategies aimed at enhancing

any form of money kickbacks or fees thereby collectively fostering a fair transparent and lawful cooperation environment. To reinforce the

the resilience and security of industrial and supply chains.effectiveness of system implementation we continuously align procurement practices with the Supplier Code of Conduct avoiding sole focus

Across our diverse business scenarios—including supply chain

on price timelines or delivery pressure that might compromise the implementation of responsibility requirements. This promotes the effective

operations real estate development and home consumption

integration of responsible procurement principles throughout the entire cooperation process.services—we continuously refine a risk management system

covering the entire chain. While ensuring business compliance

and supply stability we systematically integrate ESG

requirements into supplier access performance evaluation Supplier Entry

capacity building and dynamic management. This approach

consistently strengthens the supply chain's risk resilience and

sustainable development capabilities building a solid security

barrier for the Company's high-quality development. We implements a rigorous supplier access and evaluation process to ensure partners meet our requirements regarding qualifications

performance capabilities business ethics environmental protection and occupational health and safety. ESG performance sustainable

development risk impact and business relevance are incorporated as key considerations in supplier selection shifting responsible

procurement requirements forward to the start of the partnership. During the access process we consistently focus on identifying

Supplier Management key and high-risk suppliers. By considering factors such as procurement value business criticality country or regional risk industry

risk commodity risk and historical performance we conduct stratified and categorized identification and risk screening of suppliers

enhancing the relevance and effectiveness of access evaluations.We view responsible procurement as a key lever for

improving overall supply chain management. We

We understand that responsible partnerships continuously enhance our supplier management system In supply chain operations In real estate business

are critical not only to product and service promoting more standardized transparent and sustainable

quality customer experience and operational operations throughout the upstream and downstream

We rigorously apply supply chain control procedures. Due We conduct supplier management strictly in accordance

efficiency but also to the security and cooperation chain. The Company has established a Supplier

diligence access investigations are conducted for potential with national provincial municipal and industry regulations

stability of the industrial chain orderly Code of Conduct which sets forth clear requirements partners to identify and select high-quality suppliers. Priority and standards. We implement the Supplier Code of Conduct

market practices and long-term value for the Company its subsidiaries and partners such as is given to partners with strong performance in areas like and standardize the recruitment and review processes using

creation. Guided by the principle of "win- suppliers and contractors in areas covering business ethics environmental qualifications occupational health business internal systems like the Tendering Management System and

win cooperation" we continue to improve human rights environment and occupational health and ethics and green and low-carbon practices. The establishment Implementing Measures for Tendering Management ensuring

mechanisms for supply chain management safety. To further enhance the effectiveness of supplier of environmental and quality management systems is also fairness openness and uniformity in the recruitment process.product and service quality management ESG management we strengthen coordination among

incorporated into the comprehensive evaluation. We also During the access phase we focus on auditing supplier

relevant functional departments extending responsibility monitor indicators such as the physical factory's brand qualifications performance capabilities and social responsibility

and customer rights protection. We promote

requirements into institutional execution procurement recognition quality standards production capacity green performance actively guiding partners to fulfill responsibilities

the principles of integrity compliance shared

decisions and daily contract management. This gradually factory construction status and energy consumption related to safety environmental protection and employee rights

responsibility and collaborative progress qualifications. Projects aligning with national industrial policies protection ensuring they can consistently provide stable high-

forms a supplier management mechanism characterized by

throughout the cooperation process striving and environmental directions receive more attention and quality products and services.clear responsibilities controllable processes and dynamic

to build a partnership ecosystem based support enhancing the sustainability and security of the supply optimization.chain.on mutual trust mutual benefit stability

efficiency and sustainable development. During the cooperation management process we incorporate

responsibility requirements into procurement contracts and

79 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 82

Supplier Assessment and Evaluation Moreover we place high importance on protecting the legitimate rights and interests of migrant workers. We establish coordination mechanisms

for migrant worker wage payment and prevention mechanisms for wage arrears on a project-by-project basis. We supervise general construction

contracting units to strengthen labor management and properly handle disputes related to wage payments. By establishing dedicated accounts for

We continuously improve our supplier assessment and evaluation mechanism. Through regular or ad-hoc online and offline audits migrant worker wages making timely project fund allocations and enhancing supervision we consistently promote the timely and full payment of

and evaluations we continuously monitor supplier performance to ensure adherence to the Company's Supplier Code of Conduct migrant worker wages mitigating social risks arising from inadequate supplier management.and related management requirements. The Company has established a supplier tiered classification management system. Combined

with the industry characteristics of different business areas we implement dynamic reviews to consistently select partners offering

sustainable cooperation advantages steering supplier management towards greater refinement and systematization. For identified

key and risk suppliers we reinforce tracking and evaluation forming a closed-loop management path and continuously enhancing the Supplier Training and Engagement

penetration of supply chain responsibility management.We place great importance on supplier capacity building continuously conducting training and exchange activities to help partners

In supply chain operations enhance their sustainable development awareness and management levels. We maintain regular communication with suppliers through

various channels including the e-commerce system supply chain management software thematic meetings and on-site visits. This

We conduct annual supplier evaluations based on dimensions including quality qualifications price cooperation performance and internal control helps partners strengthen compliance management optimize operational models and guides them in understanding and implementing

risk ratings. The evaluation results serve as a crucial basis for contract renewal corrective action or termination. Utilizing the "E Trust" platform the Company's business conduct guidelines and responsibility requirements propelling supply chain cooperation towards higher quality

we implement dynamic supplier monitoring continuously tracking their operational risks legal risks and external negative information including and standards.instances of credit default high-consumption restrictions litigation and environmental penalties. For suppliers showing anomalies we conduct

further special investigations and verifications evaluating their actual risk status against internal control requirements and take measures ranging

from warnings and corrective guidance to cooperation termination as appropriate. Supply Chain Risk Management

Facing multiple uncertainties such as changes in the global We have established a robust governance structure for supply chain risk

In real estate business trade environment market price fluctuations logistics forming a three-tier risk management mechanism involving the Board's

disruptions and demand shifts we continuously enhance Risk Control Committee the Company's senior management and head

our supply chain risk management system. We treat supply office functional departments and the operational management and

In real estate business we have established a standardized supplier lifecycle management system based on systems like the Cost Work Standards.chain security as a crucial foundation for ensuring stable related functional departments of subsidiaries:

Tiered assessments are conducted during performance alongside comprehensive investigations covering operational status personnel

operations and high-quality development. Focusing

operations product quality service quality professional capabilities and partnership quality. Suppliers involved in commercial bribery significant on key steps including risk identification assessment The Risk Control Committee under the Board of

quality issues occupational health and safety incidents or arrears of migrant workers' wages will be directly deemed non-compliant; contracts Tier 1prioritization monitoring early warning response and Directors performs risk management and control

will not be renewed new cooperation will not be initiated and their participation in the Company's bidding and procurement activities will be responsibilities.review we continuously enhance the stability resilience

restricted for a specified period. and sustainable development level of the supply chain. In

risk management we consider operational risks arising from The Company's senior management and multiple

Tier 2 head office functional departments perform risk

Additionally we consistently enforce a "blacklist" system for its real estate business. Suppliers engaged in contract violations frequent safety factors like trade policy changes concentrated resource management and control responsibilities.incidents consistently poor inspection results business ethics issues collusive bidding bid-rigging fraudulent practices or similar behaviors will origins blocked logistics nodes and fluctuating customer

have their pre-qualification suspended or revoked and relevant responsibilities will be pursued according to laws and regulations. The Company credit. Simultaneously we also recognize development

The operational management and relevant

also conducts monthly evaluations and collects feedback on suppliers based on dimensions including project quality safety production civilized opportunities presented by global resource optimization

diverse market expansion digital and intelligent upgrades functional departments of each subsidiary perform

construction construction progress warranty timeliness rectification completion rate repair satisfaction and coordination with on-site cost and Tier 3 specific responsibilities for risk identification

and improved logistics networks. This fosters a mutually

design teams. This facilitates timely issue identification resolution and optimization. monitoring response and feedback.reinforcing relationship between supply chain security

management and high-quality business development.Regarding project quality and safety assurance we specify project quality timeline materials safety and management requirements through contract

clauses. We review supplier-provided product certificates test reports and manufacturer qualifications. Through methods such as material sampling and Through tiered management we balance risk prevention with operational flexibility appropriateness and management efficiency. Regarding

acceptance inspections third-party assessment checks "unannounced inspections + accompanying expert systems" and monthly/weekly inspections system development we have established and continuously refine policy documents such as the Internal Control Manual Supply Chain

we continuously strengthen supervision of project construction quality and safety management levels ensuring project delivery quality meets relevant Business Operation Management Regulations Supply Chain Business Process Management Regulations Logistics Management Regulations

national technical regulations and environmental standards. For construction projects we require suppliers to arrange relevant insurances for projects and Credit Management Regulations and Futures Business Management Provisions. This continuously strengthens process control and

management of key risk points deepening supply chain risk management towards systematization process orientation and standardization.personnel in accordance with regulations further safeguarding personnel and property safety during project implementation.Concurrently we have established a Head Office Risk Control Center integrating multiple risk management functions including operations

management logistics management credit management legal affairs futures and auditing. This strengthens internal coordination and

information sharing better supporting the stable operation of various business units.

81 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 84

Risk Response and Enhancement

We adhere to specialized operations global layout and digital and intelligent upgrades to enhance supply chain resilience. We

continuously optimize resource allocation refine the global business network and improve logistics organization capabilities and

key resource assurance capabilities consistently strengthening the supply chain's stability and resilience against external changes.We continue advancing the logistics control tower project accelerating the deployment of key logistics nodes. By establishing strong

partnerships with major global logistics companies we continuously enhance our ability to integrate domestic and international logistics

resources manage transportation and handle emergency deployment ensuring stable and efficient circulation through lean and

globalized operations.Facing major changes in the external trade environment we continuously strengthen strategic analysis and forward-looking deployment.For example in response to external changes like tariff policy adjustments we promptly conduct special assessments to analyze their

Risk Identification and Monitoring impact on business operations market layout and cost structure rapidly formulating response measures. Concurrently we deepen

the "going global" development strategy accelerating the international business layout. By expanding into diverse overseas markets

building a global business network and diversifying sources for key resources we mitigate risks associated with single markets and

fluctuations in the external environment ensuring the stability and sustainability of core resource supply.We continuously improve a comprehensive risk management mechanism covering pre-access due diligence in-process monitoring and

post-event review. Considering factors such as business category commodity attributes customer qualifications price fluctuations logistics At the level of resource supply and business models we continuously strengthen flexible allocation and alternative capability

nodes policy changes and the international environment we dynamically identify assess prioritize and monitor the impacts risks and development. Through multi-regional resource development expansion of domestic pulp sources enlargement of overseas warehouse

opportunities related to supply chain security implementing stratified and categorized management. We dynamically adjust key risk indicators networks retention of flexible capacity and backup production lines optimization of product mix and innovation in consumption

linking some of them to compensation assessments to continuously enhance the risk prevention awareness and proactive management scenarios our relevant business units continuously increase backup options for key materials and the resilience of logistics nodes

capabilities of business units. enhancing the supply chain's responsiveness and recovery capabilities in unexpected situations.In specific controls we continuously advance refined identification and monitoring of key business scenarios:

Emergency Response and Improvement

· For new customers new commodities and new businesses we require a reasonable business background clear commodity flow paths

and fair pricing mechanisms.· Transactions involving customers with weaker qualifications unclear business sources unfamiliar commodities lack of performance

To effectively prevent and properly

and disposal capabilities or possessing strong financial attributes are subject to more in-depth background investigations and stricter We continuously enhance our supply chain emergency response capabilities through

handle various sudden risks such as backup resource allocation alternative route development logistics network

approval and review mechanisms.changes in trade policies supply chain optimization and market structure adjustments:

disruptions and sudden demand

shifts considering our business · C&D Pulp & Paper enhances the resilience of key material supply We strengthen customer risk assessment leveraging the "E Trust" platform and multi-channel information to issue risk alerts for customers

characteristics and global layout

or suppliers with significant anomalies prompting relevant units to respond and provide feedback promptly. Concurrently we strengthen and logistics nodes through multi-regional resource development

realities we continuously strengthen

technology enablement utilizing data mining and machine learning techniques to build an intelligent risk control model system centered on domestic pulp source expansion and enlargement of overseas

resource integration capabilities model

"E Risk Control" providing data support for risk early warning business analysis and operational decision-making. warehouse networks.innovation capabilities and product

· C&D International Trade maintains flexible capacity and backup

innovation capabilities. We enhance

We promote the development of an integrated management system for business finance and risk control upgrading supply chain operations production lines in multiple global regions enabling rapid

the flexibility and redundancy of key

towards online digital and visualized processes. We also actively explore the application of artificial intelligence in supply chain scenarios to

links minimizing the adverse impact of assumption of production tasks in the short term.enhance risk identification timeliness control precision and operational coordination efficiency.unexpected events on business activities.Focusing on key risk areas we continuously improve specialized control mechanisms including standardizing contract and seal management

refining the international sanctions compliance system strengthening state-owned asset supervision compliance tracking market supply/ Simultaneously we emphasize combining risk resolution with experience review. For key risk events and typical business scenarios we

demand and price fluctuations conducting big data audits and promoting the collection of overdue receivables and inventory optimization. promptly summarize causes resolution processes and improvement measures continuously optimizing management systems approval

We implement focused monitoring for commodities experiencing severe price fluctuations or downward trends. For projects showing signs of procedures early warning mechanisms and collaboration methods steadily enhancing supply chain risk management capabilities.risk we promptly initiate joint tracking and special early warnings enhancing response speed and resolution effectiveness for critical risks.

83 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 86

Equal Treatment to Small and Medium-Sized Enterprises In real estate business

We strictly comply with laws and regulations such as the Construction Law of the People's Republic of China Regulations on the Administration

We strictly comply with relevant laws regulations and regulatory requirements including the Anti-Unfair Competition Law of the of Construction Project Quality and Provisions on Quality Supervision and Administration of Housing Construction and Municipal Infrastructure

People's Republic of China the Regulations on Ensuring Payment of Sums Owed to Small and Medium-sized Enterprises and the Projects. We have formulated and implemented internal systems including the Project Operation System Design Technical Provisions

Interim Regulations on Enterprise Information Publicity. We actively fulfill our social responsibilities and protect the legitimate rights Special Technical Standards Engineering Technical Standards Engineering Quality and Safety Work Standards Handover Work Standards

and interests of small and medium-sized enterprises. and Project Operation Inspection and Evaluation Standards. These systems standardize management requirements for key stages such as

product design project construction and pre- and post-delivery activities clarifying responsibilities at all levels and acceptance requirements

for critical process nodes. We have established a quality assessment system comprising process evaluations and delivery evaluations. Third-

party evaluation agencies are engaged to conduct systematic inspections on projects under construction and for sale forming a supervision

Safety and Quality of Products and Services assessment and evaluation mechanism covering the entire project lifecycle. Aligning with digital transformation trends we also utilize digital

tools like engineering collaboration systems smart engineering systems smart inspection systems and after-sales service systems to enhance

the refinement and traceability of whole-process quality control.Product and service safety and quality represent fundamental requirements for sustainable corporate development and are crucial

for winning customer trust and maintaining market competitiveness. We emphasize both product quality management and customer

rights protection. Across different business scenarios—including supply chain operations real estate and home consumption

services—we continuously refine mechanisms for quality control customer service complaint response and information protection.We strive to upgrade products and services from merely meeting standard requirements to fulfilling high-quality customer demands.Consumer Protection

Guided by the principle of value co-creation we continuously refine our service mechanisms and safeguards based on customer

Product Quality Management needs striving to deliver timely transparent professional and caring service experiences. We integrate customer rights protection

throughout the entire process including product delivery service response information communication and issue resolution.We consistently regard product quality management as the core foundation of our business operations dedicated to building

a quality management system covering procurement delivery service and improvement to provide responsible products and

Customer Satisfaction Management

services. We continuously enhance quality control processes embedding quality management requirements into key business

stages to improve the stability reliability and consistency of products and services. By integrating institutional development process

supervision digital management and responsibility implementation we solidify the foundation of quality management. We place significant importance on customer satisfaction. We proactively conduct visits with key clients and regular customer satisfaction

surveys progressively implementing tiered classification and customized service management across subsidiaries. We actively collect

service case studies continuously optimize service processes and enhance the service chain effectively translating customer feedback

In supply chain operations into concrete actions for management refinement and service improvement.Guided by the principles of "professionalism efficiency high quality and integrity" we focus on product quality management continuously In supply chain operations

strengthening quality control throughout the process from procurement to delivery. Our import and export trade services have obtained

ISO 9001 quality management system certification demonstrating a solid foundation for systematic and standardized quality management.Building on this foundation we continuously enhance quality risk identification process inspections anomaly correction and pre-delivery We continuously conduct satisfaction surveys and client visits focused on the needs of upstream and downstream customers. Key areas

verification for key commodities critical processes and major customer needs. This facilitates identifying and addressing issues earlier of focus include genuine feedback on service requirements process experience management mechanisms professional capabilities and

minimizing the delivery of defective products or substandard services thereby enhancing performance quality and customer experience. collaboration efficiency. Based on different business scenarios we continuously optimize critical aspects such as service monitoring demand

management standard management and assurance management.

85 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 88

In real estate business Information Security Management

We take customer needs as our fundamental starting point and ultimate focus building a comprehensive service system around the customer.Through customer satisfaction surveys customer retention mechanisms and diverse service touch points we earnestly listen to customer We continuously improve our information security management system establishing policy documents such as the Information Security

voices and effectively protect their rights and interests. As disclosed in the Company's practices real estate business has established customer Policy Network Security Management System and Information Management Regulations to guide and regulate information security

relationship management systems and mechanisms for applying satisfaction check results. Digital tools such as official mini-programs management. These documents address work requirements including information system security assurance information content security

member service platforms electronic sand tables VR tours videos and digital brochures are utilized to enhance customer experience during assurance terminal host security assurance daily network security maintenance security incident emergency response and company-wide

property viewing purchasing delivery and subsequent service stages. security awareness training. By deploying protection mechanisms such as access controls firewalls security operations and maintenance

audits and secure development cloud desktops at the network layer we continuously enhance the security and controllability of data

code systems and the operational environment mitigating risks like malicious attacks unauthorized access and data leaks. Building

on this foundation we continuously extend information security management from "technical protection" to encompass "governance

process and responsibility coordination." We progressively strengthen the lifecycle management of information assets refining

management requirements—including classification and grading minimal necessity segregation of duties and audited trails—around key

Customer Complaint Management stages such as information collection transmission storage access use sharing archiving and disposal. This systematically enhances the

comprehensiveness and penetration of information security management.During the reporting period the Company experienced no information security incidents.In the real estate industry customer complaints serve not only as a key indicator of service quality but also as a crucial entry point for

companies to identify product flaws optimize management processes safeguard brand reputation and enhance customer loyalty.Effective complaint management helps resolve issues early reduces the escalation of disputes and translates into internal motivation Information Security Governance Mechanism

for product iteration and service improvement.We have established a systematic customer complaint management system. Through diversified complaint channels and standardized

handling procedures we ensure customer issues receive timely responses and efficient resolution. In real estate business customers We have established a clear information security governance structure promoting information security governance in a tiered and orderly manner:

can provide feedback through multiple channels including the national unified service hotline online service platforms dedicated

customer relations lines "Customer Ambassadors" and WeChat accounts of "Property Consultants." Upon receiving a complaint we Cybersecurity Governance Structure: The Company has established a "Cybersecurity Leading Group" creating a management

engage with the customer promptly based on a tiered response mechanism develop a targeted resolution plan conduct follow-up calls framework of "coordination by the Leading Group and execution by individual units." The Leading Group holds core responsibilities

post-resolution and form a management closed-loop. Concurrently we conduct monthly analyses of complaints examining complaint including formulating basic cybersecurity management policies making decisions on major matters coordinating security protection

and monitoring/early warning systems optimizing the protection framework and organizing cross-unit cybersecurity inspections and

types trends in common issues and closure status. This analysis drives relevant departments towards continuous improvement and

follow-up rectifications.complaint data is integrated into the product and service optimization system achieving a virtuous cycle from complaint handling to

Operational Execution: Individual units are responsible for implementing relevant policies and decisions enhancing employee

management enhancement.cybersecurity awareness and skills identifying and reporting potential risks and executing remediation measures.Mechanisms for Reporting Supervision and Assessment: Regarding information reporting all units are required to provide timely

feedback on security risks to the Leading Group. The supervision process is led by the Leading Group through cross-unit security

inspections. For accountability policy compliance and risk remediation are integrated into unit performance evaluations to ensure the

effective implementation of cybersecurity management responsibilities.Data Security and Customer Privacy Protection

To strengthen accountability in information security management we establish annual information security indicators and targets.Performance of relevant departmental personnel is assessed through annual self-assessments and evaluations by superiors. Subsidiaries

Against the backdrop of deepening digitalization data security is not only the foundation of corporate compliance but also a critical formulate their own information security indicators and targets based on their specific business realities incorporating information

safeguard for maintaining customer trust and ensuring business continuity. We place high importance on information security and security performance into the annual assessments of relevant responsible personnel. Additionally we provide employees with accessible

channels encouraging them to report any information security concerns to their direct supervisors or relevant departments.customer privacy protection. We strictly comply with relevant laws and regulations including the Cybersecurity Law of the People's

Republic of China the Data Security Law of the People's Republic of China and the Personal Information Protection Law of the During the reporting period we continuously optimized system management mechanisms to ensure the secure operation of information

People's Republic of China. The Company has formulated a Privacy Policy integrated the privacy policy system into the Company's systems. We completed security upgrades for three information systems and conducted a special review of account permissions cleaning

risk management framework and tasked management with continuously improving the information security management system up 1038 redundant accounts further enhancing the standardization and refinement of account management. In terms of technical

protection we deployed two new security devices and upgraded the data leakage prevention system to achieve full lifecycle monitoring

and customer privacy protection mechanisms. We embed information security requirements into various aspects including system

of sensitive data further enhancing data security management. Concurrently we conducted regular vulnerability scans performing

development system operation business management and employee conduct standards continuously enhancing corporate data 23 scans on information systems and remediating 37 high-risk vulnerabilities and 18 medium-risk vulnerabilities continuously

information security and customer privacy protection levels. strengthening the security protection capabilities and risk resilience of information systems.

87 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 90

Information Security Emergency Management employees. Concurrently we published 12 information security awareness articles through channels like Enterprise WeChat and

E-Jianxue continuously fostering a positive atmosphere where "everyone pays attention to security everyone maintains security."

The Company has formulated the Measures for the Management of Network Security Incident Emergency Response establishing a

scientific effective and rapidly responsive information security emergency mechanism. These measures define the classification Customer Privacy Protection

reporting procedures handling processes and review requirements for information security incidents. When an information security

incident occurs that may cause significant or major harm to the Company immediate reporting is required and rapid technical and

management measures must be taken for response and resolution. After incident handling a thorough analysis of the cause handling In accordance with laws and regulations such as the Cybersecurity Law of the People's Republic of China the Regulations on the Security

process and improvement measures is conducted to ensure corrective actions are implemented and closed. For information systems Protection of Computer Information Systems and the Personal Information Protection Law the Company has formulated a Privacy Policy

certified at Level 2 or Level 3 of the Multi-Level Protection Scheme we regularly organize data recovery verification and emergency drills and Business Conduct Guidelines. We continuously strengthen the lifecycle management of customer information clarifying the scope of

continuously enhancing emergency response and business continuity assurance capabilities. information use retention periods and the rights customers hold regarding their personal information.To further enhance the ability to respond to sudden information security incidents we conducted a data security emergency drill during the We adhere to the principle of minimal necessity when collecting and using information. Strict access controls and approval management

reporting period. The drill covered key scenarios such as data leakage emergency response and system intrusion incident response. Through

are applied to the access invocation transfer and sharing of customer data. Measures such as log trail retention regular cleanup and

practical exercises we further optimized emergency response procedures and enhanced cross-departmental coordination and rapid response

secure deletion upon expiration are implemented to mitigate risks of unauthorized access excessive use and information leakage. For

capabilities providing strong support for the efficient handling of information security incidents and stable business operations.third-party partners involved in processing customer information we consistently reinforce compliance constraints and confidentiality

requirements ensuring accountability for customer privacy protection within external collaborations.Information Security Risk Assessment and Supervision In supply chain operations In real estate business

We protect the information of stakeholders—including We use internal online systems to collect and aggregate

We continuously strengthen the management of information security risks and hidden dangers. We conduct identification inspection employees customers and suppliers—through measures customer information minimizing the risk of leakage

assessment and analysis of information security risks grading them based on scope and severity and formulate corresponding such as information asset management and information associated with storing paper documents. Access to customer

prevention and corrective measures. Through regular network security inspections vulnerability scans penetration tests and security inspections preventing unauthorized access data is strictly restricted stipulating that unauthorized access

commissioning third-party organizations for IT audits we continuously enhance information security supervision and inspection leakage loss and damage. New hires receive information invocation or transfer of customer information is prohibited.promoting timely identification rectification and review of risks and hidden dangers. confidentiality training and sign confidentiality agreements Personnel are required to delete or destroy customer

reinforcing their sense of responsibility in protecting customer confidential information promptly after use reducing the risk

During the reporting period we strengthened information security risk identification and assessment completing one comprehensive privacy. of information leakage.risk assessment. Twenty-five risk points were identified with corrective measures developed for each achieving a 100% rectification

completion rate. For one high-risk information system we implemented a dedicated security reinforcement project further enhancing

the protection capabilities and operational stability of key systems promoting early identification early resolution and early closure of

risks and hidden dangers.Responsible Marketing

Information Security Education and Training

We strictly adhere to marketing-related laws and regulations including the Advertising Law of the People's Republic of China the

Anti-Unfair Competition Law of the People's Republic of China and the Measures for the Administration of Retailer Promotional

Through multi-channel and multi-format publicity and training we continuously disseminate information security knowledge Activities. We adhere to the principles of integrity fairness and transparency in marketing continuously improving marketing

to all employees enhancing their risk prevention awareness and sense of responsibility and ensuring deep understanding and management systems and review mechanisms. We standardize marketing communications sales presentations and customer

implementation of the Company's information security policies. We share cybersecurity information including real-life cases of phishing

interactions striving to ensure all marketing activities are truthful accurate and compliant without misleading consumers or

emails and scams through platforms like Enterprise WeChat and E-Jianxue continuously raising employees' daily security awareness.Additionally we organize specialized security technology training sessions for specific roles such as development project leaders harming the legitimate rights and interests of customers and the public. We emphasize integrating responsible marketing principles

covering topics like cybersecurity architecture evolution analysis of security code defects common exploit methods and the use of throughout the entire process including brand communication product promotion sales service and customer engagement.security testing tools. C&D Real Estate also provides information confidentiality and data security training for new hires. We ensure alignment between marketing activities product quality service capabilities and delivery commitments consistently

fostering a healthy and orderly market environment. Through mechanisms covering marketing content review sales conduct

We utilize diverse methods to enhance employee information security awareness and protection capabilities. During the reporting standardization customer risk disclosure complaint acceptance and handling and process supervision with corrective feedback

period we conducted two information security training sessions using an "online + offline"approach focusing on topics such as

we are gradually forming a management mechanism that encompasses pre-event review in-event control and post-event review of

data security laws and regulations data leakage prevention knowledge and emergency response procedures reaching a total of 80

marketing activities striving to enhance the standardization professionalism and responsibility level of our marketing efforts.

89 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 92

In supply chain operations In real estate business Supporting Industry Development

We consistently uphold the concept of responsible marketing We formulate and implement internal systems and inspection

Leveraging our core business and key strengths we actively participate in industry dialogue and collaboration promoting the sharing of

focusing on content compliance professional expression and standards including the Real Estate Development and

professional knowledge optimization of management models and synergistic resource innovation. We continuously contribute to the

value orientation continuously improving the standardization Sales Management System Brand Management System

of brand communication and content creation. Regarding Marketing Customer Relationship Brand Tendering Guidance industry's advancement towards standardization specialization greening and high-quality development. Simultaneously we deeply

content creation management in the context of new Manual and Marketing Inspection and Evaluation Standards. integrate the concept of sustainable development into industry practices focusing on key directions such as joint standard-setting

technology development we emphasize strengthening the These systems clarify fundamental principles baseline capability enhancement industrial collaboration and responsible leadership. We are dedicated to working with industry chain partners

understanding of relevant personnel regarding legal and requirements and responsibilities for compliant marketing industry organizations and various sectors of society to jointly build an open healthy and sustainable industry development ecosystem.compliant communication truthful and accurate expression and honest sales. We continuously strengthen the whole-

and the boundaries of brand responsibility. We ensure process management of marketing activities promoting Main Industry Associations Involved

marketing and communication activities align with the consistency between marketing communications sales

Company's business ethics requirements brand positioning scripts delivery commitments and contract terms effectively

and customer value delivery. safeguarding customers'right to know and fair trade. Participating Entity Association Name Position

China Federation of Logistics & Purchasing Vice President

We have established systematic management measures for marketing activities. Firstly in terms of system and process management we China Chamber of Commerce for Import and Export of Textiles Executive Director

formulate and implement the Marketing Inspection and Evaluation Standards establishing a "three reviews and three proofreads" process China Chamber of Commerce of Metals Minerals & Chemicals Importers &

Director

to strictly ensure the accuracy truthfulness and compliance of promotional and marketing content. The "Brand Implementation Promotion Exporters

Approval System" is used to strengthen the review of frontline promotional content with unified annual audits for social media accounts China Chamber of Commerce for Import and Export of Machinery and

Director

of subsidiaries continuously enhancing the standardization of marketing content management. Secondly regarding sales conduct Electronic Products

standardization we explicitly require sales personnel not to exaggerate in promotions or make casual promises. Property consultants must China Chamber of Commerce for Import and Export of Light Industrial

Products and Arts-Crafts Director

regularly complete a Confirmation Form for Behavioral Bottom Line Risk Screening of Property Consultants reviewed and confirmed by the

China Chamber of Commerce of I/E of Foodstuffs Native Produce and

project marketing leader promoting more prudent and standardized sales conduct. Animal By-products (CFNA) Member

China Foreign Trade and Economic Cooperation Enterprise Association Vice President

Simultaneously we continuously strengthen on-site marketing risk management and customer risk disclosure mechanisms. Focusing

C&D Inc.on key areas such as consistency among sales contract text sales materials sales presentations sales scripts service standards and

Statistical Society for Foreign Economic Relations and Trade of China Director

delivery commitments we conduct regular inspections and spot checks at head office cluster and business unit levels implementing

special investigations for key risk items. Risk disclosure signs are placed in sales venues display areas model homes and other Xiamen Import & Export Chamber of Commerce Vice President

locations to disclose factors that may lead to disputes. In negotiation areas customers are explicitly informed that oral commitments

from sales personnel are not legally binding and that written contracts shall prevail striving to protect customers' right to information Chamber of International Commerce Xiamen Vice President

and prudent judgment during the purchase decision process.Special Supervision Area Association of Xiamen Customs District Permanent Vice President

Regarding supervision and feedback mechanisms we maintain an accessible whistleblowing hotline to receive public reports of

Xiamen Modern Supply Chain Federation President

violations during marketing activities. Received reports are handled promptly and fairly according to internal policies. We conduct

quarterly marketing compliance inspections incorporating results into the performance evaluations of marketing leaders and Xiamen Association for the Promotion of Multinational Corporations

Development President

conduct regular special audits. Additionally third-party companies are engaged to conduct monthly unannounced inspections of

properties for sale focusing on reception etiquette consistency of sales scripts and compliance of promotional materials. Feedback Xiamen Economic and Trade Information Center Member

and recommendations for correction are promptly provided forming a closed-loop management mechanism of "inspection—

feedback—rectification—review."

91 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 94

Highlight Leveraging the Canton Fair to Deepen International Market Expansion Highlight Deepening Green Supply Chain Cooperation through the CISCE

We actively participate in major industry exchange platforms to We actively participate in major exchange platforms in the supply

continuously strengthen communication and cooperation with chain field such as the China International Supply Chain Expo

global customers and industry chain partners promote product (CISCE) to showcase our latest achievements in specialized

display market expansion and resource matching and inject operations global layout digital and intelligent transformation

vitality into the open development and international collaboration and green supply chain development. We continuously strengthen

of the industry. At the 133rd China Import and Export Fair (Canton communication and cooperation with industrial chain partners

Fair) we brought together several of our business units to exhibit promoting collaborative innovation and sustainable development

products and service solutions across categories including apparel in the supply chain. In 2025 at the 2nd CISCE we expanded our

footwear textile fabrics bags and suitcases kitchenware and exhibition scale presenting our business layout and service

auto parts. We actively engaged in discussions and negotiations capabilities across supply chain services new energy and new

with global merchants continuously expanding our international consumption sectors. Through innovative formats such as digital

I C&D Inc. Booth at the Canton Fair cooperation "circle of friends." Among them our business units employee guides 3D modeling digital twins and industrial I C&D Living Materials co-exhibiting with strategic partner Fonterra

including Jianyu Industrial C&D Light Industrial Products and sand tables we demonstrated our practical achievements in

C&D International Trade showcased diversified product solutions digital and intelligent supply chain operations and specialized

based on their respective product strengths and market positioning further enhancing our market influence and international cooperation expertise. During the Expo our subsidiary C&D Living Materials also co-exhibited with strategic partner Fonterra showcasing the results of their

opportunities. collaboration around the sustainable development ecosystem "from pasture to plate" and reached a consensus on continuing to promote green

supply chain cooperation.By actively participating in key platforms such as the Canton Fair we continuously strengthen our connection with global markets stay

abreast of industry trends and changes in customer needs and promote product innovation business collaboration and international market By actively participating in specialized platforms such as the CISCE we continuously deepen exchanges and mutual learning with domestic and

expansion. This has also contributed positively to promoting exchange and cooperation in the foreign trade industry and driving the coordinated international partners expand the scope of green supply chain cooperation enhance our supply chain collaborative innovation capabilities and

development of the industrial chain. contribute positively to promoting open cooperation in the industrial chain and sustainable development.Highlight Deepening International Supply Chain Cooperation through the CIIE

Highlight Hosting the China Pulp & Paper Conference to Build Industry Consensus

We actively participate in national-level platforms for open cooperation continuously deepening exchanges and collaboration with global

partners to promote resource sharing mutual complementarity of strengths and win-win outcomes while expanding the breadth and depth We actively participate in and host key industry conferences and events continuously building open and cooperative exchange platforms to

of our industrial chain cooperation. In 2025 as a consecutive exhibitor at the 8th China International Import Expo (CIIE) we once again joined facilitate industry experience sharing trend analysis and collaborative development. In 2025 the Pulp & Paper Division of C&D Inc. together with

hands with our partners to showcase at the event leveraging this platform to enhance communication with international customers and industry the Commercial Pulp Working Committee of the China Paper Association hosted the China Pulp & Paper Conference. The event attracted over

peers. During the Expo we signed a strategic agricultural cooperation agreement with Louis Dreyfus. The two parties will continue to deepen 600 industry leaders experts scholars and corporate representatives from both domestic and international markets who engaged in in-depth

collaboration across the entire agricultural industrial chain improve industrial efficiency and optimize global resource allocation jointly building discussions on topics such as global pulp and paper industry trends supply chain resilience green transformation and digital development.a secure and stable global supply chain network for agricultural products. At the same time we also visited the booths of key partners engaging

in in-depth discussions on business layouts and future cooperation directions continuously expanding our industrial "circle of friends" and During the conference we shared our practical achievements in the digital and green transformation of the pulp and paper industry including

cooperation ecosystem. the development of a digital industrial chain ecosystem through platforms such as Jiangyitong and Zhiyuanwang. We also launched a carbon

footprint accounting platform covering the entire value chain of pulp paper and paper products actively exploring pathways for green

By actively participating in high-level open platforms such as the CIIE we continuously strengthen our linkage with international markets and development in the industry. By hosting this conference we further played a bridging role promoting exchanges and mutual learning between

global partners enhance our global resource integration capabilities and industrial synergy levels and contribute positively to promoting open upstream and downstream industry players and contributed positively to advancing high-quality development and sustainable transformation

cooperation in the industry and the stable development of global supply chains. in the pulp and paper industry.

93 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 96

Employees Equal Employment Recruitment Management

We strictly comply with the Labor Law of the People's To ensure compliance and fairness in all stages of recruitment we have established internal management systems such as the Human

Republic of China the Labor Contract Law of the Resources Management Regulations which clearly define recruitment processes including position interviews assessments background

People's Republic of China and applicable employment checks and hiring approvals. We implement a "relative clause avoidance" mechanism to prevent potential risks during the recruitment

process. During the hiring stage we fully consider candidates' professional qualifications personal skills and overall competencies to

laws and regulations in the countries and regions where

ensure that interview evaluations and selection processes are fair and consistent avoiding undue human influence. At the same time we

we operate. We adhere to principles of compliant hiring

encourage mutual selection to promote precise alignment between talent and positions.fair employment and equal pay for equal work strictly As of December 31 2025 we have a total of 51318 employees with the following employee structure:

prohibiting all forms of forced labor child labor slavery

or servitude and human trafficking and are committed

to creating an equal inclusive and diverse work Employee Gender Distribution Employee Age Distribution

environment.

8.56%

24.56%

In recruitment job assignment and compensation

35.76%

performance evaluation and promotion processes ● Under 30 years old

we ensure that no candidate or employee is treated ● Male

● 30 to 50 years old

differently based on race religion gender age ● Female

● Over 50 years old

sexual orientation disability nationality or cultural 64.24% 66.88%

background. We guarantee that female employees and

eligible employees with disabilities enjoy equal pay

Employee Professionism Distribution Employee Nationality Distribution

benefits and development opportunities oppose any

potential employment discrimination and continuously ● Production Personnel

improve our employment management and 9.0162%.03% ● Technical Personnel

supervision mechanisms to provide every employee ● Financial Personnel

32.26%11.43%

Employee growth and corporate development with equal development opportunities in a fair and just ● Management Personnel 4.81% 0.41%

are mutually reinforcing. We uphold a people- environment. ● Business Personnel 2.62%

oriented management philosophy adhere ● Business Support

16.37% 20.48% Personnel ● China

to compliant employment practices and 99.59%

● Property Service ● Others

fully protect employees' lawful rights and Personnel

interests. By continuously improving career

Management Gender Distribution

development paths and training systems we

provide a platform for employees to showcase

20.25%

their talents stimulate their energy and

creativity and transform employee growth

● Male Management

and vitality into sustainable momentum for

● Female Management

corporate development.

79.75%

95 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 98

Exit Management Anti-Discrimination and Anti-Harassment

We have established a standardized employee resignation management process. When an employee submits a resignation notice To foster a diverse and inclusive work environment we have established an Anti-Discrimination and Anti-Harassment Policy maintaining

their unit head direct supervisor and HR personnel conduct an exit interview to fully understand the reasons for leaving and any a zero-tolerance approach toward any form of harassment bullying or behavior that infringes on the dignity and freedom of others. The

related concerns. For high-potential talent key business personnel and management staff we actively take retention measures policy explicitly prohibits all forms of violence insult defamation or acts that disrupt social order and firmly opposes abuse of power or any

other improper interference with employees ensuring that every employee can work in an environment of equality and respect. We also

through internal communication and coordination. We also perform monthly statistical analysis of employee turnover closely

maintain a positive and healthy corporate culture and work environment through strengthened internal management the establishment of

monitoring workforce stability and providing reference for management optimization.supervision mechanisms accessible complaint and grievance channels effective training and guidance to regulate employee behavior.To implement the Anti-Discrimination and Anti-Harassment Policy we have established a complaint handling mechanism providing

employees with clear channels for reporting. If employees experience or observe inappropriate behavior they may report it to the HR

department or labor union or escalate complaints to relevant functional departments or senior management. Upon receiving a complaint

Human Rights Protection the responsible department initiates an investigation within five working days and provides feedback to the complainant on the progress.In addition we strictly protect the information of all victims complainants and related parties preventing any form of retaliation.We adhere to internationally recognized human rights standards including the International Bill of Human Rights and the Universal

Declaration of Human Rights and strictly comply with relevant laws and regulations in the countries and regions where we operate Suffer from discrimination Submit a complaint The person handling the If the investigation confirms that

respecting and protecting employees' fundamental rights. To implement human rights protection requirements we have established or harassment or through the company's case will immediately discrimination or harassment has

the Human Rights Policy and the Anti-Discrimination and Anti-Harassment Policy clearly defining the respect and protection of the witness others suffering union or human resources conduct an investigation occurred appropriate disciplinary

from discrimination or department or report to and provide necessary actions will be taken against the

basic rights of all groups including employees suppliers local community residents children and others who may be affected by

harassment. the company's complaint support and reassurance to involved employee in accordance

our business operations. handling email providing the victim and their family. with the company's internal policies

relevant evidence. and relevant laws and regulations.In terms of risk identification and management we have established regular communication mechanisms with local communities

employees governments and investors to periodically assess potential human rights impacts and risks within our operations and value

chain with particular focus on protecting the rights of vulnerable groups. We also provide ongoing human rights training for employees and

contractors to ensure the effective implementation of our human rights policies and prevent human rights-related risks. In 2025 there have Democracy and Freedom

been no incidents of child labor forced labor or human trafficking that violated our human rights policies in our global business operations.We fully respect the democratic rights and freedom of association granted to employees under the Constitution and legal regulations. The

relevant basic rights of employees are clearly defined in our Human Resources Management Regulations. We have also established regular

communication mechanisms with all our operating units to collect employee feedback and suggestions through diversified channels such

as online surveys and grassroots meetings promptly convey company strategies and corporate culture and provide a basis for optimizing

management decisions actively fostering an open transparent and harmonious labor relationship.In terms of organizational support we strictly comply with the Trade Union Law of the People's Republic of China to establish labor union

organizations and have formulated the C&D Inc. Trade Union Federation Management Regulations to ensure the unions operate in a

standardized and orderly manner. By building a well-structured and effectively operating union system we aim to safeguard employees'

basic rights provide institutional care for employees' work and life and fully leverage the union's role as a bridge in coordinating labor-

management relations.To further promote democratic management we hold regular staff representative meetings. Major matters affecting employees'

vital interests such as salary adjustments and welfare programs are submitted to these meetings for democratic discussion before

implementation ensuring employees' rights to be informed participate manage and supervise. In April 2025 we convened a staff

representative meeting to review and approve the Collective Wage Agreement of Xiamen C&D Corporation providing democratic support

for the protection of employee compensation rights.

97 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 100

Career Development and Training Performance-based Compensation

Talent is the core driving force for the sustainable development of the company. We adhere to the principle of appointing people We have established a compensation structure centered on salaries

based on merit and are committed to providing employees with broad career development opportunities and learning resources by supplemented by allowances bonuses and benefits. We regularly We apply differentiated performance assessments for different

monitor and evaluate market trends and peer benchmarks

establishing a systematic training mechanism and diversified growth paths. This approach helps employees achieve professional employee categories:

continuously reviewing the rationality of our compensation settings

advancement through continuous learning injecting a steady stream of internal momentum into the company's development. to ensure employees receive remuneration and benefits that are

internally fair and externally competitive.In terms of performance management we have built a scientific Management

personnel

and diversified performance evaluation system. By setting clear

Employee Career Development work objectives and expectations we comprehensively assess Performance is evaluated through multiple

employees' work outcomes capabilities and professional attitudes dimensions including business results personal

within the evaluation period. At the same time we incorporate

Regarding individual employee development we have established a multi-level job grade system ranging from entry-level positions to reporting democratic appraisal and interviews.sustainable development-related requirements—such as R&D

senior management. This system not only meets the personnel requirements of different positions but also provides employees with a clear innovation risk management occupational safety and quality and

career growth path. Based on this framework we implement a dual-track career development model of "Professional + Management." efficiency improvement—into relevant departments' and employees'

The professional track supports employees in deepening expertise within specific fields enabling them to become domain specialists performance indicators motivating employees while promoting

while the management track assists employees in advancing toward operational and managerial roles. This approach effectively removes effective implementation of the company's sustainability policies.Other

career development barriers offering broad and equal growth opportunities for different types of talent. In terms of talent management personnel

Performance evaluation results serve as an objective basis for

we adhere to the principle of "promoting the capable rewarding the excellent adjusting the underperforming and eliminating the unfit"

decisions regarding rewards and penalties promotions and Performance is assessed using a goal management

continuously stimulating organizational vitality through a fair selection mechanism and dynamic promotion channels. This approach helps appointments and are also used to identify gaps and provide approach setting work objectives and indicators to

activate internal talent potential and provides solid human capital support for the sustainable development of the company. targeted guidance to help employees track and improve their work evaluate and provide feedback on achieved results.systematically. In 2025 the company strictly adhered to national laws

Additionally we maintain smooth internal talent mobility channels. Each year we conduct internal recruitment activities to address talent regulations and internal compensation management systems to pay

employees' salaries effectively safeguarding their labor remuneration

needs for critical challenging positions and newly established units providing employees with new career development opportunities.rights.For employees whose current roles may not fit their profile but who demonstrate strong performance and comprehensive capabilities HR

departments at all levels proactively identify and match suitable internal opportunities. This ensures optimal alignment of roles and talent

offering employees a diverse platform for career growth.Employee Compensation and Benefits

We strictly comply with the Labor Law of the People's Republic of China the Labor Contract Law of the People's Republic of China and

other applicable laws and regulations. We have established internal management systems including the Human Resources Management

Regulations Compensation and Benefits Management Regulations and Regulations on the Management of Rewards and Punishments

to ensure that employees'working hours and working conditions meet statutory requirements. We fully safeguard the lawful rights and

interests of female employees during pregnancy maternity and breastfeeding periods and provide employees with market-competitive

compensation and benefits ensuring that salaries are not lower than the legally mandated minimum wage.

99 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 102

Employee and Benefits Talent Cultivation

Building on the full implementation of statutory benefits the company has established and continuously improved long-term welfare In terms of talent development the company has built a systematic employee training framework centered around five key modules:

plans. Through diversified and employee-centric care initiatives the company actively addresses employees' needs in physical and competency models course resources instructor teams operational mechanisms and online learning platforms. Training content includes

mental health support medical and caregiving protection and work-life balance enhancing employees' sense of belonging and foundational business courses specialized training and risk prevention programs with targeted development projects designed for new

organizational cohesion:

employees key personnel and middle-to-senior management. The company has also established a training center at its headquarters to

coordinate and implement various training plans providing employees with diversified learning opportunities empowering their skills and

· Statutory benefits and supplementary coverage: On top of the statutory social insurance and housing fund the company has established an career development and strengthening the foundation for corporate talent growth.enterprise annuity system and purchased group commercial insurance (including overseas insurance) for employees.In 2025 we conducted a total of 13171 training sessions accumulating 1639237 training hours averaging 32 hours per person.· Economic subsidies and allowances: Based on job characteristics and actual employee needs the company provides a variety of

allowances including business travel subsidy housing allowance relocation allowance communication allowance professional title/

certification subsidy teaching allowance part-time work allowance management trainee allowance high-temperature/cold-weather

allowance meal allowance festival allowance and special-position allowances (e.g. night shift allowance). Highlight "Business Management" Training of the Qingtenghui Program

· Leave management: In addition to statutory holidays employees are entitled to annual leave marriage leave maternity/protection leave

caregiving leave parental leave breastfeeding leave bereavement leave sick leave and personal leave. Leave duration is adjusted based In 2025 we continued to promote the development and

on employees' years of service and relevant national laws and regulations helping employees balance work and life and improving their operation of the core talent community " Qingtenghui"

well-being. During annual leave marriage leave maternity/protection leave bereavement leave and breastfeeding leave salary is paid organizing training with a focus on business management.according to normal work standards. In 2025 employees applied for a total of 5518 days of paid parental leave. The training was structured around three core modules:

· Health management: Regular health management activities and union team-building events are organized to monitor employees' physical external courses to enhance participants' industry chain

health and integrate wellness concepts into daily management and corporate culture. analysis capabilities; internal knowledge transfer with

experienced business leaders sharing practical insights;

· Care for female employees: New mothers are provided with childcare subsidies and lactation rooms are equipped with drinking water and executive roundtable discussions fostering consensus

refrigerators sofas and other facilities to meet their needs during special periods. on management through in-depth dialogue. Through

· Support for employees in difficulty: A group assistance fund is established to provide necessary financial support to employees (or their systematic empowerment the program provides solid talent

spouses children parents or parents-in-law) and retired employees facing major illnesses sudden serious incidents severe disabilities or support for the company's stable operations and business

other family hardships helping them cope with unexpected difficulties. innovation.Highlight Women Employee Care Month

Highlight Campus Recruitment New Employee Training Camp

C&D Real Estate organizes a series of Women Employee Care Month activities every

March. During the event C&D Real Estate Estate launches the " She-Power" special In 2025 we conducted a two-stage systematic training program for new employees recruited through campus hiring. The first stage the training

campaign to showcase the personal style and professional achievements of female camp focused on cultural integration and general business knowledge helping new employees quickly gain an overall understanding of the

employees across various business units paying tribute to their active contributions company's operations through internal and external courses. For international management trainees the company launched a dedicated

to the company's development. At the same time the company's local labor unions "International Pioneer Program" introducing courses on international market insights cross-cultural communication and expatriate practices to

organize spring outings handicraft workshops flower arrangement sessions enhance their global perspective and local adaptability supporting the company's international talent strategy. Meanwhile English onboarding

fitness activities and other events to help female employees relax and enhance manuals were provided for foreign employees to meet their work and learning needs and strengthen their alignment with the corporate culture.their sense of well-being. On International Women's Day C&D Real Estate also The second stage of the training camp focused on risk awareness and professional competence. Through a systematic explanation of the

offers customized meals for female employees in the company cafeteria providing company's risk control system and business processes practical courses on problem analysis and solving effective communication and client

thoughtful services such as healthy dietary combinations to convey care and I Women's Care Month Activities relationship management were offered to comprehensively improve new employees' job adaptation and professional maturity.attention for female staff.

101 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 104

Highlight "E?Learning" Online Training Platform School-Enterprise Collaboration

In 2025 we continued to optimize the operation of the "E-Learning" online training platform by systematically organizing course resources We have systematically integrated "sustainable talent development" into its ESG strategic framework continuously innovating school-

updating and redesigning the interface and enhancing user experience and learning convenience. Centered on employee growth needs the enterprise collaboration models and expanding its recruitment network on a global scale. In 2025 we proactively "went out" by organizing 10

platform launched specialized sections including "Youth Hub Qingtenghui Hub Business Titans' Value Competition Top Ten Industry Insights career planning courses and competitions holding 20 in-depth university-enterprise seminars and participating in campus events such as the

ERP Practical Applications English and AI Hub" and organized 19 operational activities to foster an environment of self-directed learning and Xiamen Promotion Conference in Sichuan universities and the International Culture Festival of Central South University. At the same time we

continuous development. actively "brought in" talent by opening its corporate reception center and hosting visits from faculty and students of five leading universities

including Harbin Institute of Technology creating a three-dimensional interactive loop integrating exhibition experience alumni engagement

By the end of 2025 the "E-Learning" online training platform had offered a total of 10639 courses with 8027 registered users an average daily and business understanding. Through this two-way empowerment approach we not only build a forward-looking pipeline of high-potential

login of 1173 a daily active rate of 16.61% and an average learning time of 54.2 hours per user making it an important channel for employees' talent but also supports partner universities in improving employment outcomes and international education standards fostering effective

routine self-learning and professional skills enhancement. alignment between educational resources and corporate needs and achieving a win-win outcome for both academia and industry while

promoting a sustainable talent ecosystem.In 2025 In 2025 leveraging resources from the Chinese Service Center for Scholarly Exchange (CSCSE) the Xiamen Municipal Human Resources and

Social Security Bureau and partner universities the company actively participated in six recruitment fairs for international talent connecting

A total of A total of Daily active rate of Average learning time of with outstanding overseas students from around the world studying in China. During the year the company recruited 34 international

10639 8027 16.61% 54.2hours per user graduates covering 14 countries across Asia Africa Europe and South America and representing 16 languages. Through diversified

recruitment channels the company continues to optimize its talent structure promote the development of international teams and enhance

courses on "E-Learning" registered users

online training platform cross-cultural communication and collaboration capabilities. This initiative not only strengthens the company's competitiveness in the global

talent market but also demonstrates its commitment to inclusivity diversity and equal employment opportunities further reinforcing the

foundation for sustainable development.Occupational Health and Safety

We adhere to the principle of "safety first prevention-oriented and comprehensive management" and upholds the philosophy of "safety-

driven services strategy-guided management." It has formulated the Occupational Health and Safety Policy which was reviewed and

approved by the Employee Representative Congress and endorsed by the Chairman of the Board. By continuously improving a series of

internal systems including the Regulations on Work Safety Management Guidelines for the Construction of Work Safety Management

System and the Work Safety Regulations of Party and Government Joint Responsibility Dual Responsibility for Each Post Joint Effort for

Management and Accountability for Negligence we have established a robust safety defense framework. We actively benchmark against

international standards with several core subsidiaries having obtained ISO 45001 Occupational Health and Safety Management System

certification. In addition the company has innovatively implemented a "classified and graded management + Safety Amoeba Teams"

control model supported by the Measures for Classified and Graded Safety Management enabling differentiated and precise governance

from macro-level systems to micro-level units. Through full life-cycle risk identification and hazard investigation we strive to minimize all

types of safety risks and build a strong occupational health and safety safeguard for its employees.

103 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 106

Work Safety Management Organization

Highlight Exploration of Intelligent Early-Warning and Monitoring Technologies

We strictly adhere to the Work Safety Law of the People's Republic of China and other applicable regulations and continuously improves its

work safety management system. A Work Safety Committee has been established as the central leadership body for safety management In the risk assessment of logistics warehouses the company has explored the application of intelligent technologies to enhance risk prevention

chaired by the General Manager with Deputy General Managers and heads of key safety units serving as Deputy Directors. An office under the and control. To address electrical fire risks in storage areas a combined electrical fire detection system has been deployed to monitor current

Committee is responsible for daily operations including implementing directives formulating safety policies reinforcing accountability and voltage leakage and temperature in real time. This system is integrated with the smart firefighting platform to provide early warnings of

overseeing hazard rectification. We have established a three-tier work safety management structure at the company operating unit and site potential fire hazards. Networked smoke detectors have also been installed in temporary office areas. In terms of video surveillance in

levels. In accordance with the Measures for Classified and Graded Safety Management control measures are refined at each level to ensure accordance with the Regulations on Work Safety Management monitoring systems have been deployed at critical points such as major hazard

clear accountability and progressively strengthened supervision. Considering the diversity of its subsidiaries the company adopts a classified sources and confined space entrances enabling real-time monitoring and image retention. Through these intelligent solutions the company

management approach categorizing units into three types based on ownership structure and risk level: Category A (key supervision) Category is gradually building a "real-time monitoring—intelligent early warning—rapid response" technical defense system promoting a shift in safety

B (standard supervision) and Category C (prudent supervision) with dynamic adjustments and differentiated oversight to ensure targeted management from reactive handling to proactive prevention.safety management. At the grassroots level key safety units have established Work Safety Committees with clearly defined responsibilities

formalized through official documentation. Other units depending on workforce size have either set up safety committees or assigned full-

time or part-time safety management personnel to ensure adequate and compliant staffing.In addition we have extended its safety management system to cover overseas operations off-site entities and newly acquired or restructured

businesses incorporating them into a unified framework to ensure seamless integration and eliminate regulatory blind spots. To strengthen

professional capacity the company actively encourages safety management personnel to obtain Certified Safety Engineer qualifications and

is building a professional team centered on such certified experts. For high-risk sectors such as metal smelting and hazardous chemicals the

company strictly enforces staffing requirements for Certified Safety Engineers providing strong professional support for safety management.In 2025 we achieved a 100% execution rate of safety responsibility agreements across all internal units and relevant external parties. Work Safety Inspection

In accordance with the 2025 Safety Evaluation Plan and the Hazard

In 2025

Risk Management for Work Safety Identification and Remediation System our Safety Committee continuously

strengthens the evaluation of the safety management system and on-site Conducting a total of Identifying

inspections integrating inspection results directly into the annual safety

assessments of all units. The company actively promotes its production 46on-site unit inspections 401hazards

We strictly implement and continuously optimize the Regulations on Work Safety Management Safety Production Classification and

and manufacturing subsidiaries to improve management systems based

Grading Management Measures and Hazard Identification and Rectification System establishing a dual-prevention mechanism combining

on the Guideline of China occupational safety and health management

risk classification control and hazard identification and remediation. By conducting comprehensive hazard identification and safety risk Ensuring

system (GB/T 33000-2016) and encourages eligible units to participate in

assessments all units widely apply the Likelihood-Exposure-Consequence (LEC) method to classify operational risks establish risk registers

external standardization ratings subject to regular audits by government

and publicly display them on-site ensuring clear responsibilities and effective controls. 100% remediation of hazards

emergency management authorities using external standards to drive

internal management improvement. In 2025 the Safety Committee further

In key risk management the company maintains strict oversight of traditional high-risk activities such as hot work confined space operations

intensified penetration-style inspections conducting a total of 46 on-

working at heights temporary electrical installations special equipment and high-rise fire safety. Based on annual risk assessments and

site unit inspections and identifying 401 hazards. Persistent and recurring

inspection reports additional critical areas have been incorporated including storage facility risks (e.g. fire explosion and toxic hazards in

safety issues were given targeted follow-up to ensure 100% remediation.warehouses and tank areas) electrical fire risks special equipment and vehicle hazards confined space operation risks and location-specific

The company also encourages company-wide participation in hazard

risks at overseas or remote sites (e.g. public security public health) achieving comprehensive coverage and precise mitigation measures.identification through tools such as "Everyone Checks Hazards " strictly

adhering to the "Five Implementations" and "Five In-Place" principles.To enhance risk prevention effectiveness the company actively promotes the application of intelligent and digital management tools.The focus is on nine key areas including fire safety electricity and gas use

Building on the ongoing implementation of the Critical Hazard Management module on the safety management platform which enables

and hazardous operations with inspections benchmarked against major

online approval and periodic inspection of hazardous operations in 2025 the company further strengthened video surveillance coverage

accident hazard standards. Through precise identification and remediation

implementing real-time monitoring of major hazards confined space entries and high-risk work areas. The company is also actively exploring

the company ensures closed-loop hazard management and effectively

smart fire-fighting systems and electrical fire monitoring for early warning thereby improving safety alert capabilities and emergency response

enhances overall safety management performance.efficiency.

105 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 108

Emergency Management for Work Safety Contractor Safety Management

In accordance with the Emergency Management Regulations for Work Safety Accidents and the Regulations We have established a systematic management framework to oversee and mitigate safety risks associated with suppliers contractors

on Work Safety Management we continuously improve our emergency management system establishing a In 2025 outsourced units and other third-party entities through institutional controls and process supervision. According to the Regulations on Work

three-tiered plan framework that includes comprehensive emergency plans specialized contingency plans Safety Management each unit is required to sign a Safety Management Agreement concurrently when entering into contracts with contractors

A total of

and on-site response procedures to ensure coverage of major risks. We strictly implements the principle of or lessees. This agreement clearly delineates the safety management responsibilities of both parties and ensures that the company exercises

"rapid response and hierarchical reporting" for emergency information. In the event of a production safety 886emergency drills unified coordination and supervision over the contractor's safety performance. Furthermore the Guidelines for the Construction of Work Safety

incident on-site personnel must immediately report to the site supervisor and follow hierarchical reporting Management System require that all partners be incorporated into the company's unified safety management system ensuring comprehensive

to headquarters with escalation allowed under special emergency circumstances. Once an incident is coverage of responsibilities with no gaps. Through this approach the company systematically strengthens oversight enforces safety standards

confirmed the responsible unit must immediately activate the relevant emergency plan and the unit leader and mitigates potential safety risks across all third-party operations.A cumulative total of

must promptly arrive on-site to organize rescue operations control hazards secure the scene prevent

escalation and secondary disasters and minimize casualties and property loss. 15420

participants. Occupational Health Management

Regarding emergency drills our regulations require each unit to conduct at least one drill annually with

units handling hazardous chemicals metal smelting or high-occupancy areas conducting drills at least

twice a year. In 2025 key safety units carried out a total of 886 emergency drills covering scenarios such as We continuously strengthen the management of employees' occupational health strictly complying with the Law of the Law of the People's Republic

typhoon and flood prevention fire safety high-altitude falls mechanical injuries chemical burns hazardous of China on Prevention and Control of Occupational Diseases the Provisions on the Administration of Occupational Health at Workplaces and the

substance leaks and heatstroke with 15420 participants in total. For units found during supervision Classification and Catalogue of Occupational Diseases. A comprehensive occupational health management system has been established and is

inspections not to have conducted drills as required we promptly instructed corrective action using continuously improved to safeguard employees' health. The company implements reasonable working hours and based on job characteristics

inspections to enforce compliance ensuring drill effectiveness and continuously enhancing all employees' adopts flexible work arrangements. In addition employees have access to online occupational health training and psychological health assessments

emergency response capabilities. fostering a safe healthy and comfortable working environment. In 2025 our occupational disease incidence rate was XX.Employee Assistance Program

Training and Education on Work Safety

We place great emphasis on employees' mental health and has continuously implemented the Employee Assistance Program (EAP) –

We place great emphasis on employee occupational health and safety education and conducts systematic the "Employee Mental Health Care Plan" a systematic and long-term mental health support initiative for employees and their family

tiered safety training in strict accordance with the Work Safety Education and Training System and the 2025 members. Collaborating with third-party professional institutions the company ensures strict confidentiality of all counseling processes

Regulations on Work Safety Management. The system clearly designates the primary responsible person A total of helping employees effectively manage psychological stress and work-related challenges while mitigating health risks associated with

of each unit as the first-line accountable party and stipulates that employees who have not passed training mental well-being.are not permitted to work on-site. A comprehensive training record management system is established to 3210 The EAP program includes the following services:

accurately document training dates content participants and assessment results ensuring traceability and offline safety training

organized by company-wide

evaluability of the training process. and unit-level initiatives Multi-channel Professional Mental Crisis Intervention and Mental Health Awareness · Psychological Counseling · Health Resources · Emergency Assistance · and Training

Services

To enhance the relevance and effectiveness of training each unit implements the Safety Training Outline

24/7 counseling support is Leveraging a dedicated team In cases of sudden incidents The company organizes

based on actual conditions. Training content covers the latest national safety policies laws and regulations Reaching available and employees of qualified counselors the family crises or significant targeted training sessions

and fire safety requirements with tiered and categorized training delivered according to employee roles. 50012 can schedule consultations program offers personalized psychological stress the and awareness campaigns to In 2025 the company reinforced training and assessment for the"three key employee categories"and via phone online platforms guidance behavioral company activates special strengthen employees' mental

developed special training programs for new employees temporary staff and outsourced personnel. training participations. (WeChat Official Account improvement advice and intervention mechanisms to health literacy and enhance

Company-wide and unit-level initiatives included a total of 3210 offline safety training sessions and 130 Enterprise WeChat) or face- stress management support. provide timely counseling and self-adjustment abilities.online courses reaching 50012 training participations. A total of 8522 employees received safety training to-face meetings to receive support helping employees

Achieving a coverage rate of

achieving a coverage rate of 81% effectively enhancing the emergency response capability and overall guidance from professional navigate challenging

safety competence of all staff. 81% psychologists. situations.

107 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 110

Employee Health Management Work Schedule Management

We have established a comprehensive occupational health management system implementing legally required pre-employment on- We strictly adhere to the Labor Law of the People's Republic of China and local regulations regarding working hours arranging employee

the-job and post-employment health check-ups. On-the-job employees undergo annual health examinations achieving 100% coverage. schedules reasonably and promoting work-life balance. A standard two-day weekend is generally implemented ensuring employees'

The health check-ups include both general and specialized assessments. Following the examinations personalized health guidance and rights to rest and statutory leave and preventing excessive or overloaded work to safeguard physical and mental health. For positions

recommendations are provided to help employees systematically manage their well-being. operating under flexible working hours or comprehensive working hour systems We fulfills the required reporting procedures in

accordance with regulations strengthens attendance management and working hour supervision and standardizes overtime approval

processes. These measures prevent excessive overtime and create a healthy safe and compliant working environment for employees.To further promote employee health we implement multiple initiatives

· Provide an on-site canteen that offers well-balanced and nutritious Highlight Holiday Visits to Frontline Employees

meals to ensure employees' daily dietary health.· Set up employee fitness groups and offer a variety of exercise

programs such as yoga swimming and aerobics along with

professional guidance to help employees improve their physical

fitness.· Organize diverse cultural and recreational activities to enrich

employees'after-work life and promote their physical and mental

well-being.· Regularly conduct occupational health lectures and awareness

campaigns to disseminate health management knowledge

strengthen employees'health awareness and support their

self-health management.I Occupational Health Lectures

In collaboration with multiple trade unions the company's

subsidiary C&D Real Estate conducts holiday visits and welfare

activities for frontline employees. Leadership teams from various

units engage directly with employees on-site delivering festive

greetings and care to those who remain committed to their posts. The

Administrative Department provides logistical support and organizes

warm-hearted events such as Mid-Autumn Festival reunion dinners

allowing employees to feel the warmth of the company family beyond

their daily work. These initiatives further enhance team cohesion and

employee sense of belonging motivating staff to engage in their work

with renewed enthusiasm.

109 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 112

Governance

Governance Performance Targets in 2025

No significant losses arise from conflicts of interest

No cases of money laundering or insider trading

No major lawsuits or administrative penalties result from unfair competition

Integrity and ethics training covered 100% of employees.A sustainability report is disclosed annually to update stakeholders on the company's sustainability governance achievements

Completion Status Completed In Progress Unfinished

111 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 114

We regard risk management capability as one of the core competencies for maintaining healthy corporate development

elevating risk control to the strategic level of the Company. With the "specialization" operational strategy as the foundational

basis we have established differentiated business management structures and control processes tailored to different

Risk and Compliance industries. By deeply integrating risk management with business operations market dynamics and industry characteristics

we ensure genuine "industry immersion and sector engagement." From risk management philosophy and organizational

structure to process frameworks implementation and oversight we continuously refine a comprehensive risk control

Management system that covers the entire business process and full lifecycle. This has enabled us to build a "specialized tiered and

process-oriented" risk management system that safeguards the Company's stable operations.Risk Management Structure Taking the two categories of credit risk and exchange rate risk that we have already identified as examples:

Likelihood

Risks Types Description of Risks Risk Level of Severity of Response Measures

We have established a sound three-tier risk management structure with clearly defined responsibilities from top to bottom and Occurrence Impact

have formulated and continuously improved the "Internal Control Management Manual" as well as internal management systems

including the " Management Guidelines of Supply Chain Operations Process" " Logistics Management Regulations" "Credit We establish a trading counterpart admission system

Management Regulations" and "Futures Business Management Regulations." We identify and assess various risks that may arise that matches the characteristics of goods and

Losses incurred due transaction features of each business sector conducting

in the course of business operations standardize and continuously optimize management processes for major business segments to the counterparty comprehensive evaluations of customer qualifications

strengthen control over critical business processes and key risk points and effectively prevent risks. (supplier or and credit risks. We have developed comprehensive

Credit customer) failing to Mid-Level credit management methods strictly implementing

fulfill contractual Low Low centralized credit approval managed by the headquarters.The Company's risk management structure comprises the Board of Directors headquarters executive management and functional Risk obligations (such Risk We dynamically adjust customer credit strategies and

management departments as well as subsidiary executive management and relevant functional departments. Through tiered and as delivery receipt control plans by tracking industry changes and customer

payment etc.) on information through internal and external channels.multi-level management we achieve flexible appropriate and efficient risk control. time. Additionally we utilize various measures such as export

credit insurance and domestic credit insurance to strictly

Three-tier Risk Management Structure control credit risks.· The Risk Management Commitee established under the Board of Directors fulfills the responsibility of risk We manage exchange rate risks through centralized

Board of Directors management.controlling and making decisions on significant business matters major anomalies or risk situations

With the

control at our headquarters with relevant management

Risk Management Committee guiding the overall rislmnanagement; advancement of our regulations and implementation details in place.and Audit Committee · The Audit Committee established under the Board of Directors fulfills the responsibility of risk oversight reviewing internationalization

andsupervising the company's risk control. internal control. and compliance. Based on factors such as risk tolerance overall financial strategy the scale of

status and exchange rate trends we set overall limits

business settled in

Exchange Mid-Level for various foreign exchange transactions involving

The company's headquarters management team and multiple functional management departments form the Risk Control foreign currencies Medium Low exchange rate risks. Each business unit's foreign exchange

Centerwhich is responsible for risk management: Rate risk such as USD has Risk

Headquarters Management Team · transactions are individually approved by the Treasury A General Manager Responsibility System is implemented where the General Manager is authorized by the Risk been continuously The Headquarters Risk Control ManagementCommittee and further delegates authority at different levels.establishing a hierarchical risk control structure. Department at the headquarters based on specific

Centerconsists of functional increasing. As a result · The Headquarters Risk Control Center is composed of functional management departments including the circumstances.management OperationsManagement Department Credit Management Depatment Logistics Management Department Legal we face exchange rate

departmentsincluding the Operations Our Treasury Department prudently utilize derivative Department Risk Controland Audit Department and Futures Management Department. Each department assumes risk fluctuation risks in our

Management Department Credit financial instruments under the principle of hedging risks management responsibilities withinits respective functional scope enhancing coordination and collaboration among daily operations.Management Department Logistics departments. The Operations Management Department oversees and coordinates the functions of these departments in order to mitigate exchange rate fluctuation risks.Management Department Legal reporting to the Risk lVanagement Committee or theGeneral Mlanager as per the designated authority A dedicated Risk

Department Risk Control and Audit Control Director is appointed to manage risk-related mattersand report directly to the Chairman.Department and Futures Management The Risk Control and Audit Department serving as the risk supervision unit performs oversight duties through variousinspections

Department · and audits conducts routine communications and submits periodic reports to the Audit Committee. We have established a dynamic risk monitoring mechanism conducting quarterly reviews and dynamic adjustments of key risk

indicators in light of external market conditions and actual business operations. For potential or emerging risks and disputes

Management Teams Of identified in the course of business development we strictly implement immediate reporting and rapid response procedures in

Subsidiaries · The subsidiaries' management teams and relevant functional departments carry out daily risk management responsibilities

within the scope of each subsidiary's business conducting risk management activities. accordance with internal regulations to ensure risks remain controllable. To enhance the effectiveness of risk prevention and control Functional Management Departments

of Subsidiaries and effectively mitigate potential risks we have integrated various risk control processes into our enterprise management systems. By

113 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 116

clarifying departmental responsibilities strictly controlling hierarchical approval authorities standardizing reporting pathways and

strengthening post-implementation tracking we ensure the effective execution of risk control processes. The Company annually engages external professional institutions to audit the implementation and effectiveness of internal control

processes at the corporate level including development strategy and social responsibility as well as at the business level for

We have formulated systems including the " Regulations on the Management of Rewards and Punishments" " Risk Fund Management important operations such as supply chain operations real estate development and operations engineering projects fund activities

Measures" and "Interim Measures for Accountability of Violations in Business Operations and Investments" linking key risk indicators and asset management. In 2025 we engaged an external audit institution to audit the effectiveness of our internal controls.related to standardized operations and safe operations to the performance-based compensation of management personnel thereby

implementing risk management responsibilities. When assessing employee performance and compensation we consider not only

individual contributions and achievements but also incorporate factors such as whether performance targets were achieved within

controllable risk parameters and whether effective risk prevention measures were taken. Furthermore if employees fail to fulfill

their duties or engage in violations that lead to risk incidents we will impose penalties including but not limited to public criticism Education on Risk Control

administrative warnings and deduction of performance-based compensation depending on the severity of their violations and the

circumstances of the risk incidents. To deepen the risk culture the Company actively promotes tiered and categorized risk control and compliance education and

training activities that combine online and offline approaches. We disseminate risk control and compliance knowledge as well as risk

management system and process standards to all employees directors and non-executive directors strengthening the awareness

Risk Control and Compliance Inspection of compliant operations and risk prevention across the organization enhancing the risk management professional capabilities

of personnel in relevant positions and promoting the integration of risk philosophy and compliance consciousness throughout

The Audit Committee established under the Company's Board of Directors is responsible for reviewing and supervising risk the entire business chain. In addition we encourage employees to promptly report potential risks and formulate corresponding

management and internal control compliance. The Company's Audit and Supervision Department strengthens oversight by preventive or responsive measures. Employees who timely prevent events detrimental to the Company's interests will be rewarded in

conducting risk inspections internal control audits and internal control evaluations of various functional management departments accordance with internal regulations.and subsidiaries. Through these risk control and compliance reviews the Company identifies issues in the development and

implementation of risk management and internal control systems and processes proposes relevant rectification recommendations

and urges relevant units to implement corrective actions. This enables continuous improvement of risk management capabilities and In 2025 we mainly carried out the following risk control and compliance education and training activities

achieves closed-loop management of "inspection-feedback-rectification-enhancement" ensuring risks are detected promptly and

effectively controlled. ·Organized specialized training on supply chain risk prevention including:

-Produced 6 series totaling 36 training courses on supply chain risk prevention conducting training and examinations for employees in

business marketing auxiliary administrative and reserve series who joined since 2020;

In 2025 the Company mainly carried out the following risk control and compliance review work -Conducted systematic training on supply chain risk prevention for employees with 1-3 years of tenure and ensured employees' familiarity

and mastery of key risk training knowledge points through examinations;

· Organized and completed the annual internal control self-assessment work. In accordance with the risk management procedures in the ·Conducted online systematic training on "Supply Chain Risk Prevention" and specialized training on "Distinguishing Truth from Falsehood

Company's "Internal Control Manual" we conducted comprehensive and in-depth inspections of the effectiveness of the Company's internal Preventing Compliance Risks" covering all employees to strengthen internal staff awareness of business compliance;

control system operation promptly identified deficiencies and implemented rectifications ensuring the effectiveness and compliance of risk ·Conducted 13 business compliance training sessions at various regional offices nationwide covering nearly 2000 employees strengthening

management processes; communication with regional offices and fostering a compliant business operation philosophy among their staff;

· Completed 11 special audits covering important risk areas including cost reduction and efficiency improvement business management ·Lianfa Group's engineering marketing investment and other relevant business departments organized on-site and video conference

fund management engineering project bidding policy impact assessment post-investment management and risk assessment of merger sessions to explain newly added and revised risk management systems and risk prevention requirements with examinations and other

and acquisition targets. Through audit findings we promoted the implementation of rectifications by audited units and optimized business methods to reinforce training effectiveness.processes and systems;

· Conducted quarterly periodic self-inspections on supply chain business compliance to examine whether business operations involve

financing trade and false trade compliance risks covering all operating units and commodities within the supply chain operations business;

· C&D Real Estate carried out normalized audit supervision conducting special audits on business lines such as engineering design and

marketing to strengthen frontline internal auditing and operational risk prevention and control; conducted irregular inspections and spot

checks at the group level cluster level and business division level regarding risk points in sales management including sales contracts and

marketing expenses;

· Lianfa Group focused on risk-prone areas and key control links such as engineering bidding marketing management asset leasing

investment business and fund management strengthening daily supervision and inspection as well as special audit oversight. The Group

promptly followed up on the rectification and implementation of identified issues effectively preventing operational risks and enhancing

internal control effectiveness.

115 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 118

Commercial Anti-Commercial Integrity Risk ManagementBribery and Anti?

Corruption The Company implements internal integrity systems including the "Anti-Corruption and Anti-Bribery Policy" "Employee Integrity Self-

Behaviors Discipline Regulations" and the "1+X Special Supervision and Coordination Working System." The Company's Discipline Inspection Committee (hereinafter referred to as the "Disciplinary Committee") is responsible for coordinating and leading integrity construction and integrity risk

The Company attaches great importance to corporate control related work. Under the guidance of the Disciplinary Committee the Company's Audit and Supervision Department is responsible for

carrying out integrity risk assessments integrity supervision and inspection integrity education and petition investigation to continuously

integrity and firmly opposes any form of commercial

strengthen integrity risk control. At the same time we have established an Integrity and Compliance Supervision Group headed by the Chief

bribery and corruption. Through the formulation of the Risk Officer with members including heads of the Risk Control Audit Department Operations Management Department Credit Management

"Anti-Corruption and Anti-Bribery Policy" we clarify the Department and Legal Department and other relevant departments to collaboratively carry out supervision of the Company's integrity and

Company's stance on anti-corruption and anti-bribery law-abiding operations. We have also established a Business Compliance Management Group to review various matters involving business

compliance and strengthen risk management for integrity in business operations and business compliance. The Integrity and Compliance

matters the code of conduct that all employees should

Supervision Group and the Business Compliance Management Group regularly report on integrity risk control work to the Company's

adhere to and provide guidance on how to identify management which supervises and guides the Company's integrity risk control objectives.prevent and respond to corruption risks in business

activities. We have formulated internal management Focusing on critical business processes key risk areas and pivotal positions the Company has established a normalized and systematic

integrity risk identification and assessment procedure to comprehensively identify and investigate integrity risk points continuously

systems such as the "Employee Integrity Self-Discipline

strengthening supervision and monitoring mechanisms to ensure the healthy and high-quality development of the Company. The major

Regulations" and the " Employee Integrity Management integrity risk types identified and prioritized by the Company mainly include conflict of interest risks commercial bribery risks among others.Regulations(Trial)" to regulate employees' integrity in In 2025 the Company organized self-inspection and self-correction as well as conflict of interest declarations for appointed cadres including

professional practice and honest business conduct. members of the management teams of the Company headquarters and its specialized groups in accordance with the "Several Provisions on

Integrity in Professional Practice for Leaders of State-Owned Enterprises" and requirements regarding investment recusal business recusal

Through systems including the "Human Resource

and employment recusal. We also organized 3122 logistics-related practitioners to complete self-inspections focusing on key matters such as

Management Regulations" "Regulations on the exercise of authority and prohibition of concurrent positions with all personnel signing the "Commitment Letter on Integrity in Professional

We uphold the corporate spirit of "Unity

Management of Rewards and Punishments" and " Practice for Logistics-Related Personnel."

Dedication Integrity and Progress" and

Supply Chain Operations Management Regulations"

adhere to high standards of business ethics

we incorporate integrity requirements into daily Supplier Integrity Management

and moral principles to guide our business

employee management and impose corresponding

activities worldwide. Through the formulation

disciplinary measures for employees' violations of

of the "Code of Business Conduct" we provide The Company actively promotes the extension of integrity requirements to the supply chain continuously strengthening supply chain integrity

business ethics to ensure compliance with integrity supervision through proactive advocacy due diligence contractual constraints and collaborative oversight committed to jointly fostering a

unified and clear behavioral standards and

and self-discipline requirements. In addition we have clean honest and mutually beneficial business environment with suppliers and other business partners.value orientation for the Company and its

incorporated relevant integrity requirements into the

subsidiaries in key areas including integrity We clearly set forth anti-corruption and anti-bribery requirements for suppliers through the "Supplier Code of Conduct" strictly prohibiting

year-end performance assessments of the Company's

and compliant operations conflict of interest suppliers from engaging in any form of embezzlement extortion or bribery and requiring their business conduct to be lawful compliant and

management to reinforce integrity responsibilities. in accordance with business ethics. For third parties such as suppliers with whom we intend to establish business cooperation the Company

prevention anti-monopoly and anti-unfair conducts due diligence in the form of qualification verification on-site inspections background investigations and risk assessments to examine

competition and anti-money laundering. We and prevent supplier integrity risks. Prior to cooperation with suppliers relevant compliance departments are involved in the contract approval

are committed to integrating awareness of process to review supplier qualifications and integrity risks. We also require suppliers to sign integrity agreements or letters of commitment to

integrity and compliance into every aspect integrity and law-abiding conduct and incorporate anti-corruption clauses into business contracts explicitly stating integrity and self-discipline

requirements and penalties for violations to constrain supplier behavior and prevent integrity risks. During the course of business cooperation

of corporate operations and the upstream we continuously monitor and track suppliers' business activities and external negative information such as litigation or dishonesty. If a supplier

and downstream of the value chain. Through engages in corruption or bribery the Company will take measures including termination of business cooperation claims for compensation or

standardized transparent and responsible other actions and hold the supplier accountable for relevant responsibilities.business practices we build transparent and

In 2025 as part of the "Qingfeng C&D 345" initiative the Company sent bilingual Chinese and English versions of the "Joining Hands to Build an

trust-based long-term relationships with all Integrity Defense Line — Integrity Notification Letter to Partners" to 1839 domestic and international logistics suppliers clearly communicating

parties in the value chain jointly forging a integrity requirements in professional practice and emphasizing the prohibition of commercial bribery improper benefits transfer and other

sustainable business ecosystem. violations.

1177 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 120

Integrity Supervision and Inspection Integrity Training and Education

The Company continuously strengthens daily supervision and inspection special supervision and targeted inspections around key areas The Company continuously deepens the cultivation of integrity culture innovates forms of integrity education and relies on business-

and critical periods to promptly identify problems and deficiencies strictly supervise and urge rectification and implementation prevent characteristic integrity culture brands combined with online and offline approaches to conduct comprehensive multi-level and

integrity risks ensure effective execution of integrity systems and guarantee the practical implementation of integrity construction. For diversified integrity education advocacy and training activities. These efforts enhance the integrity awareness of directors senior

violations in business operations the Integrity and Law Compliance Oversight Team and the Business Compliance Management Team management and all employees foster a strong atmosphere of integrity culture and build a solid ideological defense line for integrity

conduct review and investigation and impose penalties on relevant business units and personnel involved in corruption and violations across the entire workforce.in accordance with internal rules and regulations including the "Interim Measures for Accountability of Violations in Business Operations

and Investment" "Employee Integrity Management Regulations" and "Employee Integrity Self-Discipline Regulations."

In 2025 we carried out the following integrity education and training activities

- Utilizing the "Clean C&D" integrity promotion platform as the main channel we conduct continuous integrity

education through comics videos and other formats communicating business ethics and integrity policy

requirements to all employees.In 2025 we mainly carried out the following integrity supervision and inspection work

- Through quarterly and semi-annual meetings of key operating units we delivered integrity and compliance

presentations to all employees covering more than 400 participants.In supply chain operations - We conducted integrity discussions in a hierarchical and full-coverage manner reaching over 3000 employees.On the one hand following the principle of "each level talks to the next" we provided one-on-one reminder

Focusing on areas and business processes prone to integrity risks such as business entertainment official vehicle management and expense education to managers focusing on job-specific integrity risk points. On the other hand we highlighted

reimbursement we conducted normalized supervision and unscheduled specialized inspections inspections covering operating entities Regular role-specific characteristics and in light of business features issued warnings on integrity risks in relevant

including various specialized groups regional and overseas platform companies. Adhering to a problem-oriented approach we urged Integrity processes.rectification and implementation of identified issues through issuing disciplinary notices supervising system improvements and conducting Education - For Party members who have newly joined or transferred into the Party in the past two years we organized

criticism and education. We also incorporated common problems identified through inspections into integrity risk early warnings and integrity education activities focusing on the Code of Integrity and Self-Discipline of the Communist Party

education and training content achieving a virtuous cycle of inspection rectification and enhancement. of China and the Regulations of the Communist Party of China on Disciplinary Punishments clarifying the

integrity and self-discipline requirements for Party members.- Lianfa Group used its OA integrity education column to distribute anti-corruption and integrity-related

learning materials to all employees on a monthly basis.In real estate business - MACALLINE organized five integrity and ethical conduct promotion activities centered on its integrity self-

discipline policies. Through policy interpretation and analysis of typical cases it strengthened the integrity

C&D Real Estate organized and urged subsidiaries to promptly conduct self-inspections on integrity and self-discipline. Lianfa Group awareness of all employees with 10392 participants.focused on key risk control links such as engineering bidding marketing leasing investment and funds organizing various supervision and

inspection activities and urging subsidiaries to promptly carry out self-inspection and self-correction with spot checks conducted on key

subsidiaries.In line with operational realities

MACALLINE conducted supervision and inspection work covering fraud risks on operationally critical centers and shopping malls and urged

relevant units to promptly implement rectifications.

119 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 122

Anti-unfair Competition

- Based on the actual development of our international supply chain business we innovatively launched a

distinctive integrity promotion and education campaign at home and abroad under the theme of "Clean C&D The company always adheres to the principles of freedom fairness and integrity in its business activities taking antitrust and anti-unfair

Global Season". A professional promotional team was formed to deliver a series of presentations to platform competition as the bottom-line requirements of its corporate business conduct. We strictly comply with relevant antitrust and anti-unfair

companies in various domestic and overseas locations reaching nearly 5000 employees. Key initiatives competition laws and regulations of the country and the regions where we operate and are committed to working with upstream and

included: 13 integrity presentations focusing on topics such as integrity in professional conduct compliance downstream partners in the value chain to maintain a fair free and orderly healthy business ecosystem.and honesty followed by examinations to assess learning outcomes; the launch of an interactive integrity-

themed activity called the "Clean C&D Guardian Plan" which uses immersive and experiential educational In terms of policies and systems through our Code of Business Conduct we set forth anti-unfair competition and anti-monopoly compliance

methods to guide employees in enhancing their integrity culture literacy; and three specialized presentations requirements for the business activities of the company and its subsidiaries strictly prohibiting any form of unfair competition including

for key personnel in logistics operations providing in-depth explanations of integrity risk points in logistics misappropriation of trade secrets market manipulation concealment of facts and abuse of privileges. In key business processes such as

business and procurement management standards.Thematic procurement and sales we follow internal control systems and procedures to identify and manage unfair competition risks. In terms of

Integrity - C&D Real Estate organized a knowledge competition on the spirit of the Central Committee's Eight-Point supervision mechanisms the company's Integrity and Compliance Oversight Task Force is responsible for conducting regular monitoring and

Education Regulation Party discipline and corporate culture attracting nearly 15000 managers and employees from review of the implementation and compliance with the Code of Business Conduct ensuring that business activities are legal and compliant

Activities

various units. In addition it organically combined healthy sports with integrity education by organizing a "First and taking precautions to prevent and avoid unfair competition risks to the greatest extent possible.Run of the New Year" activity for over 400 managers and employees which included a session of integrity

knowledge competition enabling participants to learn and master integrity-related knowledge in a relaxed In 2025 the company did not have any major lawsuits or significant administrative penalties due to unfair competition.atmosphere.- Lianfa Group organized its subsidiaries to jointly hold the "Compliance Garden Party for In-depth Learning

and Education on the Spirit of the Central Committee's Eight-Point Regulation" featuring interactive sessions Complaint Mechanism and Whistleblower Protection

such as "Check-in and Joint Advocacy for Compliance" "Integrity in Mind Never Stray" "Know the Red Lines

Oppose the 'Four Forms of Decadence'" and "Stay on the Right Track Spread the Breeze of Integrity". Through

The company strictly complies with the relevant provisions of the Rules for

this edutainment approach the Group advanced the promotion of Party conduct and integrity education to the

Handling Complaints and Accusations by Disciplinary Inspection and Supervision

grassroots level and to employees in different regions. Stakeholders can lodge complaints or reports

Departments as well as internal policies such as the Code of Business Conduct and

anonymously or report with their identity disclosed

the Anti-Corruption and Anti-Bribery Policy. We have established and continuously through the following public channels:

improved a complaint and reporting mechanism encouraging stakeholders to

promptly and proactively report any potential violations of business conduct Complaint and reporting email:

standards policies or laws and regulations thereby working together with

compliance@chinacnd.com

stakeholders to foster an honest and transparent business environment. We

provide employees suppliers customers and other stakeholders with accessible Complaint and reporting address:

and convenient internal and external reporting channels (including via letter C&D International Building 1699 Huandao

telephone email WeChat public platform mobile client platform or in-person East Road Xiamen China

reporting) and actively communicate these reporting channels to employees and

business partners through various integrity education and training activities.The Company's Audit and Supervision Department receives and handles all complaints and reports and conducts investigation procedures

in accordance with relevant regulations and disciplines. If any illegal non-compliant or disciplinary violation is verified the Company will take

corrective actions such as criticism and education organizational measures and disciplinary actions depending on the circumstances and

severity of the violation.I "In-depth Learning and Education on the Spirit of the Central Committee's Eight-Point Regulation · Compliance Garden Party"

The company firmly safeguards the legitimate rights and interests of whistleblowers and complainants by establishing and implementing

a whistleblower protection mechanism through policies such as the Code of Business Conduct and the Anti-Corruption and Anti-Bribery

In addition the company also provides multi-level and regular communication and feedback channels for all employees to encourage

Policy. We allow both named and anonymous reports and strictly enforce confidentiality requirements prohibiting the disclosure of the

them to consult and report on matters or issues related to business ethics and integrity. For example employees may directly report

whistleblower's identity and the content of the report. We maintain a zero-tolerance policy towards any form of retaliation. Any verified act of

to their respective units or the disciplinary inspection and supervision departments or consult and make suggestions through regular

retaliation will be seriously dealt with and accountabilities pursued in accordance with applicable regulations thereby effectively creating a

hierarchical "one-on-one" integrity discussions.safe and trustworthy environment for oversight for all stakeholders.

121 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 124

Tax Compliance Management

The company strictly complies with national tax laws and regulations

including the Enterprise Income Tax Law of the People's Republic

of China as well as all applicable tax laws and regulations in the

regions where it operates. We uphold the principles of integrity

transparency and compliance in our tax management and fulfill our

tax payment and information disclosure obligations in accordance

with the law. Tax-related matters are specified in our Financial

Management Regulations with designated personnel responsible for

daily tax-related tasks such as regular tax filings. We continuously

monitor changes in tax laws and policies across different regions and

promptly adjust the handling of tax matters accordingly. In 2025 the

company paid a total tax amount of 15396 million CNY.In 2025

the company paid a total tax amount of

15396 million CNY

● Tax Risk Management ● Tax Compliance Training and Communication

The company integrates tax risks into its corporate risk management framework and control processes and has established a full- We place great emphasis on continuously improving our tax risk management capabilities. By organizing internal and external tax

chain mechanism of "reducing risks upfront focusing on response during the process and promoting improvement afterwards" to compliance training and exchange sessions on an ad hoc basis we strengthen the compliance and risk prevention awareness of

ensure that tax risks are identified in a timely manner and effectively controlled. We continuously track developments in tax laws relevant tax personnel enhance their professional competence and ensure that the company's tax management adapts to changes

regulations and policies and through regular advocacy and interpretation of tax policies we enhance the sensitivity of relevant in laws regulations policies and business directions. The company also promptly communicates external training resources and

personnel to tax risks identify potential tax risks in existing operations and new business expansion and promptly formulate and policy information to its subsidiaries promotes the internal sharing of tax management experience and fosters a positive atmosphere

implement control and response measures. We have established a tax liaison mechanism to create smooth channels for information for learning and exchange.dissemination and reporting between the company's headquarters and its subsidiaries. The headquarters communicates various

tax policies and management requirements to subsidiaries to ensure that they implement such requirements in a timely and In addition the company has established a regular communication and interaction mechanism with tax authorities and

effective manner. Subsidiaries are required to promptly report their tax work progress and tax inspection status upwards thereby implemented a centralized specialist management mechanism for tax-related communications effectively improving the efficiency

strengthening dynamic tracking and process control over the effectiveness of tax management at the subsidiary level. In addition the of tax authority-enterprise communication.company has established an inter-regional platform tax inspection system under which a task force is dispatched each year to audit

the tax management of subsidiaries and to supervise the implementation of corrective actions for any identified issues.

123 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 126

Data Overview

Environmental Metrics Unit 2022 2023 2024 2025

Metrics Unit 2022 2023 2024 2025 Transfer and disposal volume of hazardous waste 23 63 48059 36167

Environmental Investment General Waste Generation / 337378 1257105 1690240

Annual total environmental investment Ten-thousand CNY 2086 3789 15090 15706 Including: Industrial Waste Generated / 130772 1132030 1565367

Emissions and Discharge Domestic Waste Generated / 49608 32769 37217

GHG Emissions Construction Waste Generated / 156998 92306 87656

Transfer and disposal volume of general Tonne

Scope 1: Direct GHG emissions1 285727 434139 504071 549041 waste 101949 337378 982974 1690240

Scope 2: Energy indirect greenhouse gas

emissions (market-based)2 220443 539580 984530 929060

General Waste Recycled / 113500 144806 1564219

Scope 2: Energy indirect greenhouse gas

emissions (location-based) tCO2e 220667 546093 994284 1000857

Industrial Waste Recycled / 113500 144806 1564219

Total GHG emissions (Scope 1+ Scope 2) Construction Waste Recycled / / 0 0

(market-based) 506170 973719 1488601 1478101

Total GHG emissions (Scope 1+ Scope 2) Domestic Waste Recycled / 0 0 0

(location-based) 506394 980232 1498355 1549898

Energy Consumption5

tCO2e / hundred-

Emission intensity million CNY of 61 128 212 220 Electricity Consumption kWh 259624703 947373073 1720332433 1851476286

operating revenue

Air Pollutants Including: Clean electricity consumption kWh 392010 10834236 18176772 135312878

NOx emissions 44 49 115 113 Clean electricity ratio % 0.15 1.14 1.06 7.31

SOx emissions 4 8 92 104 Coal consumption Tonne 137412 166254 181876 205244

Tonne

PM emissions 2 2 8 14 Natural gas consumption m

3105488391177905276701151405296

VOCs emissions / / / 6 Steam consumption Tonne 5861 16889 206977 53708

Wastewater and Related Pollutants Gasoline Consumption 914023 701654 1728416 717283

Total wastewater discharges m3 3149769 8641873 10134989 9975845 Diesel consumption 494618 446758 2143085 1961264

COD emissions 347 377 528 499 Liquefied petroleum gas consumption Tonne 1323 7 668 952

BOD emissions / / / 77 Total energy consumption tce 132360 290127 435666 450839

Ammonia nitrogen emissions Tonne 3 2 5 3 Water Resources

Total nitrogen emissions / 49 39 40 Water withdrawal / 11923256 15886685 15875527

Total phosphorus emissions / / / 2 Water consumption / 3281383 5751696 5899682

m3/ hundred-

Waste Water consumption intensity million CNY of / 430 820 879

3 operating revenueHazardous waste generated Tonne / 78 47887 36167

Circulating water usage m3 / / 1353983 1104950

·Note

1.The Company's Scope 1 greenhouse gas emissions increased in 2025 from the previous year primarily driven by higher coal consumption resulting from increased output in the papermaking segments. 5.The Company's total energy consumption increased in 2025 from the previous year primarily due to increased output in the copper smelting and papermaking segments. At the same time the Company continued to

2.The Company's Scope 2 greenhouse gas emissions and total greenhouse gas emissions (market-based) decreased in 2025 from the previous year mainly reflecting the Company's continued optimization of its optimize its energy mix by gradually reducing the reliance of its self-operated businesses on traditional energy sources such as steam gasoline and diesel while steadily increasing the share of green electricity used and

energy mix and active promotion of clean electricity. advancing its green and low-carbon transition.

3.The Company's hazardous waste mainly arose from the steel plate business. Hazardous waste generated in 2025 decreased from the previous year primarily due to lower output in the steel plate business.

4.The amount of general waste generated and disposed of by the Company increased in 2025 from the previous year mainly due to increased output in the copper smelting and papermaking segments.

125 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 128

Metrics Unit 2022 2023 2024 2025 Metrics Unit 2022 2023 2024 2025

Circulating water usage ratio % / / 8.52 6.96 Business personnel / / / 10511

Green Building Business support personnel / / / 8402

Basic-level green building / 9 3 0 Property services personnel / / / 16554

One-star green building / 2 8 0 Female production personnel / / / 670

Count

Two-star green building / 1 3 11 Female technical personnel / / / 836

Person

Three-star green building / 0 0 0 Female financial personnel / / / 1751

Female management personnel / / / 274

Employment Female business personnel / / / 4489

Metrics Unit 2022 2023 2024 2025 Female business support personnel / / / 3939

Total employees Person 32847 49752 47422 51318 Female property services personnel / / / 6390

Employee Composition Management Composition by Gender

Employee Composition by Gender Junior management personnel / / / 2968

Person

Male 20411 30837 29781 32969 Female junior management personnel / / / 893

Person Proportion of female junior management

Female 12436 18915 17641 18349 personnel % / / / 30

Employee Composition by Age Management personnel (Mid-level and above) / / / 1338

Under 30 / 14928 12942 12606 Female management personnel (Mid-level and

Person

above) / / / 271

Between 30-50 Person / 31316 30792 34321 Proportion of female management personnel

(Mid-level and above) % / / / 20

Over 50 / 3508 3688 4391 Including: Senior management personnel / / / 7

Person

Employee Composition by Education Female senior management personnel / / / 2

Masters degree and above 1715 2177 2225 2355 Proportion of female senior % / / / 29

management personnel

Bachelors degree 12295 19262 18888 19894

Person Local senior management personnel Person / / / 5

College degree 9604 13575 12560 13348 Proportion of local senior management % / / / 71

personnel

Other degrees 9233 14738 13749 15721

Management Composition by Nationality

Employee Composition by Nationality

China / / / 1337

China / / 47325 51107 Person

Person Other / / / 1

Others / / 97 211

Labor Contract Signing

Employee Composition by Function6

Labor Contract Signing Rate % 100 100 100 100

Production personnel / / / 6177

Freedom of Association and Collective Bargaining

Technical personnel / / / 5864 Proportion of employees covered by collective

Person agreements % / 100 100 100

Financial personnel / / / 2466

Employment of Disabled Individuals

Management personnel / / / 1344

Number of disabled employees hired Person 5 26 24 53

6 and 7: In 2025 the Company conducted a systematic review of employee job functions and reclassified functional categories based on the actual responsibilities of each role. Under the revised classification certain positions

are no longer categorized as management positions for reporting purposes.

127 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 130

Metrics Unit 2022 2023 2024 2025 Metrics Unit 2022 2023 2024 2025

Propotion of disabled employees hired % 0.01 0.05 0.05 0.10 Number of new intellectual property rights in the

year Item / / 166 110

Employee Training8 Lawsuits arising from intellectual property disputes Case / / 0 0

Total training participants / 209641 531822 300356 Complaint Resolution

Including: Total training participants in the supply Participant

chain operations segment / / 174294 55324 Total number of complaints 22221 5476 4126 3872

Case

Total training hours 6354357 2138972 1387623 1639237 Total number of complaints resolved 22220 5476 4126 3872

Including: Total training hours in the supply chain Hour / / 503884 583716 Complaint resolution rate % 99.99 100 100 100operations segment

Total training sessions / / 25048 13171 Supplier Management

Including: Total training sessions in the supply Session

chain operations segment / / 3834 2397

Total number of suppliers 41397 126728 137557 158919

Including: Number of suppliers in the supply

Employee Welfare and Benefits chain operations business / / 135273 149300

Total paid parental leave / 4787 5967 5518 Number of suppliers in Mainland China / 96415 104214 121723

Day Including: Number of suppliers in Mainland China

Paid family or caregiver leave (non-maternity) / / 3530 5299 in the supply chain operations business / / 101931 112107

Number of suppliers in other regions Count / 30313 33343 37196

Market Including: Number of suppliers in other regions in the supply chain operations business / / 33342 37193

Metrics Unit 2022 2023 2024 2025 Number of new suppliers admitted during the year / 12357 12047 13704

Technology Research and Development Including: Number of new suppliers admitted

during the year in the supply chain operations / / 11664 12320

Total R&D investment9 Ten-thousand CNY 19062 23651 28544 41357 business

R&D investment as a percentage of revenue from

principal operations % / / 0.04 0.06

Occupational Health and Safety

Intellectual Property

Metrics Unit 2022 2023 2024 2025

Number of new patent applications / / 31 27

Including: Number of new patent applications in Work Safety Investment

the supply chain operations business / / 0 0 Total annual investment in occupational health Ten-thousand CNY 2388 436 3602 3600

Number of new patents granted 181 4 100 22 and work safe

Including: Number of new patents granted in the Safety Training

supply chain operations business / / 1 0

Total occupational safety training hours Hour 25691 77558 239271 702822

Number of new copyright applications / / 1 7

Work Safety Accident

Including: Number of new copyright applications

in the supply chain operations business / / 1 7

Item Extra-major accident 0 0 0 0

Number of new copyright registrations / 19 27 28

Major accident 0 0 0 0

Including: Number of new copyright registrations Case

in the supply chain operations business / / 9 8 Serious accident 0 0 0 0

Number of new trademark applications / / 122 94

General accident 0 0 0 0

Including: Number of new trademark applications

in the supply chain operations business / / 121 39 Number of work stoppages Time 0 0 1 0

Number of new trademark registrations / 90 39 60 Duration of work stoppages Day 0 0 45 0

Including: Number of new trademark registrations

in the supply chain operations business / / 23 58 Occupational Health and Safety Performance

8.In 2025 the Company focused resources on deepening and refining its employee training system with an emphasis on longer and more targeted specialized training programs. This increased both average training hours Occupational fatalities Person 0 0 2 0

per employee and the depth of training content while strengthening the professional capabilities and business expertise of core talent.

9.The Company continued to increase investment in digital and intelligent platforms and related technologies. 10.Total occupational safety training hours increased significantly in 2025 from the previous year mainly because the Company continued to increase both the frequency and duration of training sessions.

129 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 132

Social Contributions Guidelines No. 14 of Shanghai Stock Exchange for Self-

Metrics Unit 2022 2023 2024 2025 Regulation of Listed Companies—Sustainability Report

Social Contributions (Trial) Index

Social donations Ten-thousand CNY 3612 2633 4075 3452

Total trade volume with countries along the Belt Ten-thousand US

and Road Initiative Dollar / 1696078 1446825 1729627 Topic Article Location

Number of public welfare activities Time 121 348 286 285

Chapter III Environmental Disclosure

Total number of volunteer service participants Participant 13092 16204 4628 14250

Climate Change Tackling Article 21-28 Climate Response

Including: Total number of volunteer service

participants in the supply chain operations Participant / / 3192 1660 Pollutant Discharge Article 30 Pollutant Discharge

segment

Waste Disposal Article 31 Waste Disposal

Total volunteer service hours 5013 9984 12307 14249

Including: Total volunteer service hours in the Hour Ecosystem and Biodiversity Protection Article 32 Ecosystem and Biodiversity Protection

supply chain operations segment / / 8240 3050 Environmental Compliance Management Article 33 Ecosystem and Biodiversity Protection

Energy Usage Article 35 Energy Usage

Usage of Water Resources Article 36 Usage of Water Resources

Governance Circular Economy Article 37 Circular Economy

Metrics Unit 2022 2023 2024 2025 Chapter IV Social Disclosure

Business Ethics Revitalizing Rural Areas Advancing Together

Rural Revitalization Article 39 through Assistance

Anti-corruption Advocacy and Training (Supply Chain Operations Business) Supporting Education Building Dreams for

the Future

Proportion of employees briefed on anti- / 100 100 100 Rooted in Communities Growing through

corruption policies and procedures

% Contributions to the Society Article 40 Mutual Benefit

Proportion of employees received anti-corruption Care to Share Aware through Public Welfare

training / 100 100 100

Innovation-driven Article 42 Innovation-driven

Business Ethics Violations

Ethics of Science and Technology Article 43 Not Applicable

Incidents of material loss to the Company caused

by conflicts of interest / / 0 0 Supply Chain Security Article 45 Supply Chain Security

Incidents of money laundering or insider trading Case / / 0 0 Equal Treatment to Small and Medium- Article 46 Equal Treatment to Small and Medium-

Incidents of litigation or administrative penalties sized Enterprises Sized Enterprises

arising from unfair competition practices / / 0 0 Safety and Quality of Products and Services Article 47 Safety and Quality of Products and Services

Data Security and Customer Privacy Data Security and Customer Privacy

Protection Article 48 Protection

Employees Article 50 Employees

Chapter V Corporate Governance Information Related to Sustainable Development Disclosure

Management of Material Topics

Climate Risks and Opportunities

Due Diligence Article 52 Management

Supply Chain Security

Communications with Stakeholders Article 53 Communications with Stakeholders

Anti-Commercial Bribery and Anti- Anti-Commercial Bribery and Anti-

Corruption Article 55 Corruption

Anti-unfair Competition Article 56 Anti-unfair Competition

131 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 134

SASB Index Indicators Reference for ESG Reports of Listed Chinese

Central State-Owned Enterprises Index

SASB Topics Accounting Metrics Location

CG-MR-130a.1： Envirnomental

Energy Management in Retail (1) Total energy consumed Energy Usage

& Distribution (2) Percentage grid electricity Data Overview

(3) Percentage renewable energy Primary Secondary Tertiary Indicators Location

CG-MR-230a.1： Indicators IndicatorsData Security and Customer

Discussion of management approach to identifying and Privacy Protection

addressing data security risks E.1.1.1 Fresh-water consumption Data Overview

Data Security CG-MR-230a.2：

(1) Number of data security breaches

(2) Percentage involving customers'personally identifiable infor- Not available in this report E.1.1.2 Circulating water usage Data Overview

mation (PII) E.1.1

(3) Number of customers affected Water resources E.1.1.3 The proportion of circulating

CG-MR-310a.1： water usage

Data Overview

(1) Average hourly wage

(2) Percentage of in-store employees earning minimum wage by Not Applicable E.1.1.4 Water resource consumption

intensity Data Overviewregion

CG-MR-310a.2： E.1.2.1 Consumption of non-renewable

Fair Labor Practices Employee turnover rate for in-store employees Data Overview

(1) Voluntary Not Applicable

materials

(2) Involuntary

E.1.2 Materials E.1.2.2 Consumption of toxic and

hazardous materials Not Applicable

Amount of legal and regulatory fines and settlements associated

with labor law violations Not Applicable

E.1.2.3 Material consumption intensity Not Applicable

E.1 Resource

CG-MR-330a.1： Consumption Climate Response

Percentage of gender and racial/ethnic group representation for Equal Employment E.1.3.1 Fossil energy consumption Data Overview

(1) Management Data Overview

Workforce Diversity (2) All other employees

& Inclusion E.1.3.2 Non-fossil energy consumption Climate Response

Data Overview

CG-MR-330a.2：

Amount of legal and regulatory fines and settlementsassociated Not Applicable

E.1.3 Energy E.1.3.3 The proportion of non-fossil with employment discrimination Data Overviewenergy consumption

CG-MR-410a.1： Climate Response

Revenue from products third-party certified to environmental Not Applicable E.1.3.4 The total energy consumption Data Overview

and/or social sustainability standards

CG-MR-410a.2： E.1.3.5 The energy consumption intensity Data Overview

Description of processes to assess and manage risks and/or Not Applicable

hazards associated with chemicals in products E.1.4.1 The amount of packaging Circular Economy

E.1.4 materials used Data Overview

Product sourcing Packaging CG-MR-410a.3：

and Marketing Description of strategies to reduce the environmental impact of Circular Economy

Packaging materials E.1.4.2 Light-weighting and reduction of

packaging materials Circular Economypackaging

CG-MR-000.A： E.2.1.1 Wastewater discharge compliance Pollutant Discharge

(1) Number of retail locations Not Applicable

(2) Number of distribution centers

E.2 Pollution Preven-

CG-MR-000.B： tion and Control E.2.1 Wastewater

E.2.1.2 Wastewater management and

emission reduction measures Pollutant Discharge

Total area of (m2): Not Applicable

(1) Retail space

(2) Distribution centers E.2.1.3 Volume of wastewater discharge Data Overview

133 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 136

Primary Secondary Primary Secondary

Indicators Indicators Tertiary Indicators Location Indicators Indicators Tertiary Indicators Location

E.2.1.4 Volume of pollutants discharged in

wastewater Data Overview

E.3 E.3.4 Climate risk

Climate Change management E.3.4.1 Climate risk management Climate Response

E.2.1 Wastewater

E.2.1.5 Concentration of pollutants E.4.1 Impact

discharged in wastewater Not Applicable of production E.4.1.1 Impacts of production services

E.4 Biodiversity services and and products on biodiversity Ecosystem and Biodiversity Protection

E.2.2.1 Compliance of exhaust gas products on

emissions Pollutant Discharge biodiversity

E.5.1 Setting

low-carbon

E.2.2 Exhaust air E.2.2.2 Volume of air pollutants emitted Data Overview E.5.1.1 Setting low-carbon development development goals and strategic measures Climate Response

goals and strategic

E.2.2.3 Concentration of air pollutants measures

E.2 Pollution Preven- emitted

Not Applicable

E.5.2.1 Water resource management Usage of Water Resources

tion and Control E.2.3.1 Compliance of legal regulations on

solid waste disposal Waste Disposal E.5.2 Resource man- E.5.2.2 Material use management Climate Response

agement measures Circular Economy

E.2.3.2 Management of general industrial

solid waste Waste Disposal E.5.2.3 Energy use and energy efficiency Climate Response

management Energy Usage

E.2.3 Solid waste E.2.3.3 Disposal volume of general

industrial solid waste Data Overview E.5.3 Monitoring

statistical reporting

and assessment E.5.3.1 Monitoring statistical reporting and E.2.3.4 Management of hazardous waste Waste Disposal

system for energy- assessment system for energy-saving and

Climate Response

saving and carbon carbon reduction

Energy Usage

E.2.3.5 Volume of hazardous waste reduction

disposed Data Overview

E.5.4.1 Clean production Pollutant Discharge

E.3.1.1 Sources and types of GHG

emissions Climate Response

E.5 Measures for E.5.4.2 Green technology upgrading and Pollutant Discharge

Resource and recycling Circular EconomyE.3.1.2 GHG emissions management Climate Response

Environmental

Management E.5.4 Green E.5.4.3 Green building renovation Climate Response

E.3.1.3 Scope 1 emission Climate Response Systems environmental

Data Overview actions and

E.3.1 GHG emissions measures E.5.4.4 Green office and operations

Climate Response

Climate Response Circular EconomyE.3.1.4 Scope 2 emission

Data Overview

E.5.4.5 Green procurement and green Suppliers and Clients

supply chain management

E.3.1.5 Scope 3 emission Not Applicable

E.5.4.6 Environmental conservation public Climate ResponseEnvironmental Compliance Management

E.3 E.3.1.6 GHG emission intensity Climate Response

activities Ecosystem and Biodiversity Protection

Climate Change Data Overview

E.5.5.1Environmental management system Environmental Compliance Management

E.3.2.1 GHG emission reduction certification

E.3.2 Emission Climate Responsemanagement E.5.5 Green and

reduction E.5.5.2 Green and low-carbon enterprise low-carbon certifica- certification Not Applicablemanagement E.3.2.2 GHG emission reduction Climate Response tion

E.5.5.3 Green and low-carbon product and Climate Response

E.3.3.1 Participation in the carbon emission service certification

trading market Not Applicable

E.5.6.1 Emergency response plan for

E.3.3.2 Participation in the energy rights E.5.6 Legal compli- environmental incidents Environmental Compliance ManagementE.3.3 Environmental water rights and pollution rights trading Not Applicable

rights trading ance in environmen-markets tal matters E.5.6.2 Environmental violations and non- Environmental Compliance Management

E.3.3.3 Participation in green electricity compliance incidents

trading Not Applicable

135 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 138

Social Primary Secondary

Indicators Indicators Tertiary Indicators Location

Safety and Quality of Products and

Primary Secondary S2.2 Customer S2.2.3 Customer information and privacy Services

Indicators Indicators Tertiary Indicators Location

service and rights protection Data Security and Customer Privacy

Protection

S1.1.1 Corporate recruitment policy and Equal Employment S2 Product And

implementation Human Rights Protection S2.3.1 R&D and innovation management Service system R&D and InnovationS1.1 Employee Equal Employment Management

recruitment and S1.1.2 Employee structure Data Overview

employment S2.3 S2 Product And S2.3.2 R&D investment R&D and Innovation

S1.1.3 Prohibition of child labor and Supply Chain Security Service

forced labor Human Rights Protection Management S2.3.3 Innovation achievements R&D and Innovation

S1.2.1 Compensation philosophy and Human Rights Protection

policy Employee Compensation and Benefits S2.3.4 Intellectual property protection Intellectual Property Rights Protection

Supply Chain Security

Human Rights Protection

S1.2 Employee S1.2.2 Working hours and rest and leave Employee Compensation and Benefits S3.1.1 Supplier selection and management Supply Chain Security

compensation and S3.1 Supplier Data Overview

benefits management S3.1.2 Number and distribution of suppliers Data Overview

S1.2.3 Compensation and benefits Employee Compensation and Benefits

S3 Supply Chain

S1.2.4 Democratic management of Safety and Manage-

S3.2.1 Supply chain management policies

Human Rights Protection ment and measures

Supply Chain Security

employees

S3.2 Supply chain S3.2.2 Supply chain security assurance and

S1.3.1 Employee occupational health and

Occupational Health and Safety management emergency plan

Supply Chain Security

safety management

S1 Employee Rights S1.3.2 Occupational safety risk S3.2.3 Major risks and impacts of supply chain Supply Chain Security

management Occupational Health and SafetyS1.3 Employee

health and safety S1.3.3 Response to safety incidents and Occupational Health and Safety S4.1 Tax payment S4.1.1 Tax payment 2025 Sustainable Development Impact

work-related injuries Data Overview S4.2.1 Policies and measures for

Career Development and Training participating in local community Rural Revitalization and Contributions to S1.3.4 Employee support and assistance

Employee Compensation and Benefits S4.2 Community construction the Society

co-building

S1.4.1 Employee motivation and promo- Human Rights Protection S4.2.2 Contribution and impact on the Rural Revitalization and Contributions to

tion policy Career Development and Training local community the Society

S1.4 Employee

development and S1.4.2 Employee education and training Supply Chain Security

Rooted in Communities Growing through

Career Development and Training S4.3.1 Policies and measures for participat- Mutual Benefittraining

S1.4.3 Employee career planning and ing in social welfare activities Care to Share Aware through Public

job change support Career Development and Training Welfare

Rooted in Communities Growing through

S1.5.1 Employee satisfaction survey Not available in this report S4.3 Social welfare S4.3.2 Investment and effectiveness in Mutual Benefit

activities participating in social welfare activities Care to Share Aware through Public

S1.5 Employee Welfare

satisfaction S1.5.2 Labor disputes Not available in this report S4 Social Data Overview

Contributions Rooted in Communities Growing through

S1.5.3 Employee turnover Data Overview S4.3.3 Development of barrier-free living Mutual Benefit

environment Care to Share Aware through Public

S2.1.1 Production standard management

policies and measures Safety and Quality of Products and Services

Welfare

Revitalizing Rural Areas Advancing

S2.1.2 Quality management Safety and Quality of Products and S4.4.1 Industrial transformation Together through Assistance

S2.1 Product safety Services Supporting Industry Development

and quality Revitalizing Rural Areas Advancing

S2.1.3 Product recall and withdrawal Not available in this report S4.4.2 Rural revitalization and regional

S2 Product And collaborative development Together through Assistance

Service Data OverviewS2.1.4 Adverse events related to products S4.4 National strate-

Management or services Not available in this report gy response S4.4.3 Belt and Road Initiative and over- Supporting Industry Development

seas responsibility performance Data Overview

S2.2.1 Customer satisfaction Safety and Quality of Products and Services Suppliers and Clients

S2.2 Customer ser- S4.4.4 Industry-specific features and other Revitalizing Rural Areas Advancing

vice and rights Safety and Quality of Products and social responsibility performance Together through Assistance

S2.2.2 Customer complaints and handling Services Data Overview

Data Overview

137 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 140

Governance

Primary Secondary

Indicators Indicators Tertiary Indicators Location

Primary Secondary

Indicators Indicators Tertiary Indicators Location

G3.1.1 Investor relations management

G1.1.1 Governance strategy formulation Governance Structure and Mechanisms strategy Investor Relations Management

G1.1.2 Governance strategy supervision G3.1 Investor rela-

G1.1 Governance Governance Structure and Mechanisms G3.1.2 Investor communication Investor Relations Managementprocess tions management

strategy and pro-

cesses G1.1.3 Governance strategy approval and G3.1.3 Establishment of the investor Investor Relations Management

review process Governance Structure and Mechanisms relations department

Protection of Shareholders' Rights and

G1.1.4 Leadership through Party-building Not covered in this report G3 Investor G3.2.1 Shareholders' meetings

Relations Interests

Governance Structure and Mechanisms Management and G3.2 Shareholder Investor Relations Management

G1 Governance G1.2.1 Ownership responsibilities G3.2.2 Communications with shareholdersRisk and Compliance Management Shareholder Rights rights Communications with Stakeholders

Strategy and

G1.2 Organizational G1.2.2 Board of directors supervisory G3.2.3 Shareholders' right to information Protection of Shareholders' Rights and Organizational

composition and board and management organizational Governance Structure and Mechanisms and decision-making participation InterestsStructure

functions structure and functions

G1.2.3 Appointment procedures and G3.3.1 Credit evaluation Not covered in this report

composition of the board of directors Governance Structure and Mechanisms G3.3 Creditor

supervisory board and management rights G3.3.2 Bond market compliance Not covered in this report

G1.3.1 Compensation plan for directors

and supervisors Governance Structure and Mechanisms G4.1.1 Financial information disclosure Information Disclosure Management

G1.3 Compensation G1.3.2 Transparency of the board's com- G4.1 Information G4 Information

management pensation Governance Structure and Mechanisms disclosure systemDisclosure Transpar- G4.1.2 Non-financial information disclo-

sure Information Disclosure Management

G1.3.3 Reasonableness of management ency

compensation Governance Structure and Mechanisms G4.2 Quality of infor- G4.2.1 Regular monitoring auditing and

mation disclosure evaluation of disclosures Disclosed in 2025 annual report

G2.1.1 Internal audit Risk and Compliance Management Risk and Compliance Management

G2.1 Internal con- G5.1.1 Compliant operation system Anti-Commercial Bribery and Anti-

trol G2.1.2 Internal control structure Risk and Compliance Management Corruption

mechanisms and processes Complaint Mechanism and Whistleblower

Protection G5.1 Compliant G5.1.2 Development of the compliance Risk and Compliance Management

Anti-Commercial Bribery and Anti-

Anti-Commercial Bribery and Anti- operation system Corruption

G2.2.1 Integrity construction system stan- Corruption

G2 Standardized G2.2 Business integ- dards Complaint Mechanism and Whistleblower G5.1.3 Specific process of compliance

Risk and Compliance Management

Protection review Anti-Commercial Bribery and Anti-Governance rity G5 Compliant Corruption

G2.2.2 Effectiveness of integrity construc- Anti-Commercial Bribery and Anti- Operation and Risk

tion measures Corruption G5.2.1 Risk identification and early warn-Management ing Risk and Compliance Management

Anti-unfair Competition

G2.3.1 Fair competition system standards Complaint Mechanism and Whistleblower G5.2.2 Risk control and tracking Risk and Compliance Management

G2.3 Fair competition Protection G5.2 Risk manage-

G2.3.2 Effectiveness of fair competition ment Risk and Compliance Management

measures Anti-unfair Competition Anti-Commercial Bribery and Anti-

G5.2.3 Risk reporting and management Corruption

Anti-unfair Competition

Data Overview

139 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 142

ESRS Index

European sustainability reporting standards (ESRS) Location/omission European sustainability reporting standards (ESRS) Location/omission

ESRS 2 General Disclosures ESRS E2 Pollution

BP-1 General basis for the preparation of sustainability statements About This Report Pollutant Discharge

E2-1 Policies related to pollution Waste Disposal

Environmental Compliance Management

BP-2 Disclosures in relation to specific circumstances Not covered in this report

Pollutant Discharge

GOV-1 The role of the administrative management and supervisory bodies Governance Structure and Mechanisms E2-2 Actions and resources related to pollution Waste Disposal

Environmental Compliance Management

GOV-2 Information provided to and sustainability matters addressed by the Governance Structure and Mechanismsundertaking's administrative management and supervisory bodies Risk and Compliance Management E2-3 Targets related to pollution Environmental

GOV-3 Integration of sustainability-related performance in incentive Governance Structure and Mechanisms

Climate Response

schemes Employees E2-4 Pollution of air water and soil Pollutant Discharge

Management of Material Topics Waste Disposal

GOV-4 Statement on due diligence Climate Response Data Overview

Supply Chain Security Climate Response

Pollutant Discharge

GOV-5 Risk management and internal controls over sustainability reporting Risk and Compliance Management E2-5 Substances of concern and substances of very high concern

Climate Response Waste Disposal

About C&D Inc. Data Overview

SBM-1 Strategy business model and value chain Climate Response E2-6

Anticipated financial effects from pollution-related impacts risks

Not covered in this report

Supply Chain Security and opportunities

Safety and Quality of Products and Services ESRS E3 Water and Marine Resources

SBM-2 Interests and views of stakeholders Communications with Stakeholders

E3-1 Policies related to water and marine resources Usage of Water Resources

Management of Material Topics

SBM-3 Material impacts risks and opportunities and their interaction with

strategy and business model Risk and Compliance Management E3-2 Actions and resources related to water and marine resources Usage of Water Resources

Climate Response

IRO-1 Description of the processes to identify and assess material impacts Management of Material Topics E3-3 Targets related to water and marine resources Not covered in this report

risks and opportunities Risk and Compliance Management

Usage of Water Resources

IRO-2 Disclosure requirements in ESRS covered by the undertaking's

About This Report E3-4 Water consumption

sustainability statement Management of Material Topics

Data Overview

Appendix E3-5 Anticipated financial effects from water and marine resources- Not covered in this report

related impacts risks and opportunities

ESRS E1 Climate Change

ESRS E4 Biodiversity and Ecosystems

E1-1 Transition plan for climate change mitigation Climate Response

E4-1 Transition plan and consideration of biodiversity and ecosystems in

strategy and business model Not covered in this report

E1-2 Policies related to climate change mitigation and adaptation Climate Response

E4-2 Policies related to biodiversity and ecosystems Ecosystem and Biodiversity Protection

E1-3 Actions and resources in relation to climate change policies Climate ResponseCircular Economy E4-3 Actions and resources related to biodiversity and ecosystems Ecosystem and Biodiversity Protection

E1-4 Targets related to climate change mitigation and adaptation EnvironmentalClimate Response E4-4 Targets related to biodiversity and ecosystems Not covered in this report

E1-5 Energy consumption and mix Energy UsageData Overview E4-5 Impact metrics related to biodiversity and ecosystems change Not covered in this report

E1-6 Gross Scopes 1 2 3 and Total GHG emissions Climate ResponseData Overview E4-6 Anticipated financial effects from biodiversity and ecosystem-related Not covered in this report

E1-7 GHG removals and GHG mitigation projects financed through carbon

risks and opportunities

credits Not covered in this report ESRS E5 Resource Use and Circular Economy

E1-8 Internal carbon pricing Not covered in this report Climate Response

E1-9 Anticipated financial effects from material physical and transition Management of Material Topics E5-1 Policies related to resource use and circular economy

Energy Usage

risks and potential climate-related opportunities Climate Response Usage of Water Resources

Circular Economy

141 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 144

European sustainability reporting standards (ESRS) Location/omission European sustainability reporting standards (ESRS) Location/omission

Climate Response S2-2 Processes for engaging with value chain workers about impacts Supply Chain Security

Energy Usage

E5-2 Actions and resources related to resource use and circular economy Usage of Water Resources

S2-3 Processes to remediate negative impacts and channels for value Circular Economy chain workers to raise concerns Supply Chain Security

E5-3 Targets related to resource use and circular economy Environmental Taking action on material impacts on value chain workers and

approaches to managing material risks and pursuing material

S2-4 Supply Chain SecurityClimate Response opportunities related to value chain workers and effectiveness of

Energy Usage those action

E5-4 Resource inflows Usage of Water Resources

S2-5 Targets related to managing material negative impacts advancing Circular Economy positive impacts and managing material risks and opportunities Social

Climate Response

Energy Usage ESRS S3 Affected Communities

E5-5 Resource outflows Usage of Water Resources

S3-1 Policies related to affected communities Rural Revitalization and Contributions to the Circular Economy Society

E5-6 Anticipated financial effects from resource use and circular Not covered in this report S3-2 Processes for engaging with affected communities about impacts Rooted in Communities Growing through Mutual economy-related impacts risks and opportunities Benefit

ESRS S1 Own Workforce S3-3 Processes to remediate negative impacts and channels for affected Rooted in Communities Growing through Mutual

communities to raise concerns Benefit

S1-1 Policies related to own workforce Equal Employment Taking action on material impacts on affected communities and

S3-4 approaches to managing material risks and pursuing material Rural Revitalization and Contributions to the

S1-2 Processes for engaging with own workforce and workers' Human Rights Protection opportunities related to affected communities and effectiveness of Societyrepresentatives about impacts those actions

S1-3 Processes to remediate negative impacts and channels for own Human Rights Protection S3-5 Targets related to managing material negative impacts advancing workforce to raise concerns positive impacts and managing material risks and opportunitie Social

Taking action on material impacts on own workforce and

approaches to managing material risks and pursuing material ESRS S4 Consumers and End-usersS1-4

opportunities related to own workforce and effectiveness of those Employees

actions S4-1 Policies related to consumers and end-users

Safety and Quality of Products and Services

Data Security and Customer Privacy Protection

S1-5 Targets related to managing material negative impacts advancing Social S4-2 Processes for engaging with consumers and end-users about Safety and Quality of Products and Servicespositive impacts and managing material risks and opportunities impacts Data Security and Customer Privacy Protection

S1-6 Characteristics of the undertaking's employees Equal Employment S4-3 Processes to remediate negative impacts and channels for Safety and Quality of Products and ServicesData Overview consumers and end-users to raise concerns Data Security and Customer Privacy Protection

S1-7 Characteristics of non-employees in the undertaking's own Equal Employment Taking action on material impacts on consumers and end-users

workforce Data Overview

S4-4 and approaches to managing material risks and pursuing material Safety and Quality of Products and Services

S1-8 Collective bargaining coverage and social dialogue Human Rights Protection opportunities related to consumers and end-users and effectiveness Data Security and Customer Privacy Protection

Data Overview of those actions

Human Rights Protection

S1-9 Diversity metrics S4-5 Targets related to managing material negative impacts advancing Data Overview Socialpositive impacts and managing material risks and oppotunities

S1-10 Adequate Wages Career Development and Training ESRS G1 Business Conduct

S1-11 Social protection Career Development and Training G1-1 Business conduct policies and corporate culture Commercial Behaviors

S1-12 Persons with disabilities Data Overview Supply Chain Security

G1-2 Management of relationships with suppliers Equal Treatment to Small and Medium-Sized

S1-13 Training and skills development metrics Career Development and Training EnterprisesData Overview

Occupational Health and Safety G1-3 Prevention and detection of corruption and bribery Anti-Commercial Bribery and Anti-CorruptionS1-14 Health and safety metrics Data Overview

G1-4 Incidents of corruption or bribery Anti-Commercial Bribery and Anti-Corruption

S1-15 Work-life balance metrics Career Development and TrainingData Overview

G1-5 Political influence and lobbying activities Not covered in this report

S1-16 Remuneration metrics (pay gap and total remuneration) Not covered in this report

G1-6 Payment practices Equal Treatment to Small and Medium-Sized Enterprises

S1-17 Incidents complaints and severe human rights impacts Human Rights Protection

ESRS S2 Workers in the Value Chain

S2-1 Policies related to value chain workers Supply Chain Security

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ISSB Index

● IFRS S1 ● IFRS S2

Core Elements Disclosure Recommendations Disclosure Placement Core Elements Disclosure Recommendations Disclosure Placement

a)The governance body(s) (which can include aboard committee or equivalent body a)The governance body(s) (which can include a board committee or equivalent body Governance Structure and Mechanisms Governance Structure and Mechanisms

charged with governance) or individual(s) responsible for oversight of sustainability- charged with governance) or individual(s) responsible for oversight of climate-related Risk and Compliance Management Risk and Compliance Management

related risks and opportunities. risks and opportunities.Governance Governance

b) Management's role in the governance processes controls and procedures used to Governance Structure and Mechanisms b)Management's role in the governance processes controls and procedures used to Governance Structure and Mechanisms

monitor manage and oversee sustainability-related risks and opportunities. Risk and Compliance Management monitor manage and oversee climate-related risks and opportunities Risk and Compliance Management

Management of Material Matters a)The climate-related risks and opportunities that could reasonably be expected to affect Management of Material Topics

a)The sustainability-related risks and opportunities that could reasonably be expected Climate Risks and Opportunities the entity's prospects within time horizons—short medium or long term whether the entity Climate Risks and Opportunities

to affect the entity's prospects within the time horizons—short medium or long term. Management considers the risk to be a climate-related physical risk or climate-related transition risk Management

b)The current and anticipated effects of sustainability-related risks and opportunities Management of Material Matters b)The current and anticipated effects of climate-related risks and opportunities on the Management of Material Topics

on the entity's business model and value chain and where in the entity's business Climate Risks and Opportunities entity's business model and value chain and where in the entity's business model and Climate Risks and Opportunities

model and value chain sustainability-related risks and opportunities are concentrated Management value chain climate-related risks and opportunities are concentrated Management

c)How the entity has responded to and plans to respond to sustainability-related c)Information about how the entity has responded to and plans to respond to Management of Material Topics

risks and opportunities in its strategy and decision-making and the progress against Management of Material Matters climate-related risks and opportunities in its strategy and decision-making including

how the entity sets targets how the entity is resourcing and quantitative and Climate Risks and Opportunities plans the entity has disclosed in previous reporting periods including quantitative Climate Risks and Opportunities Management

and qualitative information and trade-offs between sustainability-related risks and Management qualitative information about the disclosed progress of plans.opportunities that the entity considered.Strategy d)The quantitative and qualitative effects of those climate-related risks and

d)The quantitative and qualitative effects of sustainability-related risks and opportunities on the entity's financial position financial performance and cash flows Strategy

opportunities on the entity's financial position financial performance and cash for the reporting period the climate-related risks and opportunities identified in

paragraph 16(a) for which there is a significant risk of a material adjustment within the Management of Material Topicsflows 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 Management of Material Matters next annual reporting period to the carrying amounts of assets and liabilities reported

Climate Risks and Opportunities

annual reporting period to the carrying amounts of assets and liabilities reported in Climate Risks and Opportunities in the related financial statements and how the entity expects its financial position

Management

the related financial statements and how the entity expects its financial position Management financial performance and cash flows to change over the short medium and long

financial performance and cash flows to change over the short medium and long term given its strategy to manage climate-related risks and opportunities.term given its strategy to manage sustainability-related risks and opportunities.e)The entity's assessment of its climate resilience including the entity's assessment

Management of Material Matters for its strategy and business model the significant areas of uncertainty considered e)The resilience of the entity's strategy and its business model to those sustainability-

Climate Risks and Opportunities in the entity's assessment of its climate resilience and the entity's capacity to adjust related risks

Management or adapt its strategy and business model to climate change over the short medium Management of Material Topics

and long term. The entity shall use climate-related scenario analysis to assess its Climate Risks and Opportunities

climate resilience and disclose how and when the climate-related scenario analysis Management

a)The processes and related policies the entity uses to identify assess prioritize and was carried out including information about the inputs the entity used the key

monitor sustainability-related risks including information about: the inputs and Management of Material Matters assumptions the entity made in the analysis and the reporting period in which the

parameters the entity uses，whether and how the entity uses scenario analysis to Climate Risks and Opportunities climate-related scenario analysis was carried out.inform its identification of sustainability-related risks whether and how the entity Management

prioritizes sustainability-related risks how the entity assesses the nature likelihood Risk and Compliance Management

and magnitude of the effects of those risks. a)The processes and related policies the entity uses to identify assess prioritize and monitor

climate-related risks including information about: the inputs and parameters the entity uses Management of Material Topics

Risk Management whether and how the entity uses climate-related scenario analysis to inform its identification

Climate Risks and Opportunities

b)The processes the entity uses to identify assess prioritize and monitor Management of Material Matters of climate-related risks whether and how the entity prioritizes climate-related risks how the Management

sustainability-related opportunities including: whether and how the entity uses Climate Risks and Opportunities entity assesses the nature likelihood and magnitude of the effects of those risks. Risk and Compliance Management

scenario analysis to inform its identification of sustainability-related opportunities. Management

Risk Management b)The processes the entity uses to identify assess prioritize and monitor climate-related Management of Material Topics

c)The extent to which and how the processes the entity uses to identify assess Climate Risks and Opportunities opportunities including information about whether and how the entity uses climate- Climate Risks and Opportunities

prioritize and monitor sustainability-related risks and opportunities are integrated into Management related scenario analysis to inform its identification of climate-related opportunities. Management

and inform the entity's overall risk management process. Risk and Compliance Management

c)The extent to which and how the processes for identifying assessing prioritizing Management of Material Topics

Environmental and monitoring climate-related risks and opportunities are integrated into and inform Climate Risks and Opportunities

a)Metrics required by an applicable IFRS Sustainability Disclosure Standard. Social the entity's overall risk management process. Management

Governance

a) The cross-industry metric categories of greenhouse gas emissions internal carbon

b)Metrics the entity uses to measure and monitor sustainability-related risks or Environmental prices the percentage of executive management remuneration recognized in the

Metrics and Targets opportunities and its performance in relation to that sustainability-related risk or Social current period that is linked to climate-related considerations capital deployment Climate Response

opportunity. Governance towards climate-related risks and opportunities the amount and percentage of assets

or business activities vulnerable to climate-related risks and opportunities.Environmental

c)Any targets the entity has set it is required to meet by law or regulation. Social Metrics and Targets b)Industry-based metrics that are associated with one or more particular business

Governance models activities or other common features that characterize participation in an industry Climate Response

c)The quantitative and qualitative climate-related targets the entity has set or it

is required to meet by law or regulation progress towards reaching the target Climate Response

information about its performance and each greenhouse gas emissions target.

145 Xiamen C&D Inc. 2025 Sustainability ReportEnvironmental Social Governance Appendix 148

Independent Assurance Statement

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155 Xiamen C&D Inc. 2025 Sustainability Report

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