Together Go Beyond
CONTENTS
ENVIRONMENTAL
31 Climate Response
01 About This Report
57 Energy Usage
03 Message from the Chairman
60 Usage of Water Resources
05 About C&D Inc.
62 GOVERNANCEPollutant Discharge
07 2024 Sustainable Development Impact
67 Waste Disposal
09 2024 Honors and Awards 125 Risk and Compliance Management
69 Environmental Compliance Management
11 Management of Material Matters 129 Commercial Behaviors
71 Circular Economy
21 Communications with Stakeholders
75 Ecosystem and Biodiversity Protection
23 Sustainability-Related Governance
02
附录
135 Data Overview
142 Guidelines No.14 of Shanghai Stock Exchange
for Self-Regulation of Listed Companies— SOCIAL
Sustainability Report (Trial)
143 SASB Index
79 Rural Revitalization and Social Contributions
144 Reference of ESG Indicators System for ESG
Reports of Listed Chinese Central State-Owned 88 Innovation-driven Development
Enterprises
92 Suppliers and Clients
151 ESRS Index
107 Employees
155 ISDS Index 03
157 Independent Limited Assurance Report 01About This Message About C&D Inc. 2024 Sustainable 2024 Honors and Awards Management of Communications Sustainability- 02
Report from the Development Impact Material Matters with Related
Chairman Stakeholders Governance
About This Report
This is the 2024 Sustainability Report ("this report") released by Xiamen C&D Inc. (referred to as "C&D Inc." or "We"). The purpose of
C&D Real Estate C&D Real Estate Corp. Ltd. subsidiary of C&D Inc.this report is to provide stakeholders with an overview of C&D Inc.'s management efforts in environmental social and governance
aspects in 2024 as well as the initiatives and achievements towards advancing the United Nations Sustainable Development Goals. Lianfa Group Lianfa Group 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.Reference Guidelines C&D Logistics C&D Logistics Group Co. Ltd. wholly-owned subsidiary of C&D Inc.Paper & Pulp Group One of the six major specialized groups of C&D Inc. including Xiamen C&D Paper & Pulp Co. Ltd.This report is prepared in accordance with the Sustainability Disclosure Standards for Enterprise - General Requirements (Trial) jointly
Agricultural Products Group One of the six major specialized groups of C&D Inc. including Xiamen C&D Commodities Limited.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 the Ministry of Ecology and Environment the Ministry Steel & Iron Group One of the six 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.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 the China Securities Regulatory Commission. It also follows the Universal Pulp and Paper Universal Pulp and Paper (Shandong) Co. Ltd.Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies – Sustainability Report (Trial) and the Guide
C&D Clean Energy Nanjing C&D Clean Energy Co.Ltd. wholly-owned subsidiary of C&D Inc.No.4 for Self-Regulatory Supervision on Listed Companies of the SSE - Compilation of Sustainable Development Reports issued by the
Shanghai Stock Exchange the Sustainability Accounting Standards Board (SASB) Standards the Reference of ESG Indicators System MACALLINE Red Star Macalline Group Corporation Ltd. (Stock Code: 601828.SH)
for ESG Reports of Listed Chinese Central State-Owned Enterprises issued by the SASAC Research Center the European Sustainability
C&D Emerging Energy Xiamen C&D Emerging Energy Co. Ltd. wholly-owned subsidiary of C&D Inc.Reporting Standards (ESRS) released by the European Commission and the two IFRS Sustainability Disclosure Standards(ISDS) issued
by the International Sustainability Standards Board (ISSB). Additionally this report incorporates disclosure requirements aligned with C&D Hitek Xiamen C&D Hitek Co. Ltd. wholly-owned subsidiary of C&D Inc.the United Nations Sustainable Development Goals (SDGs).Xiangguang Copper Xiangguang Copper Co. Ltd. subsidiary of C&D Real Estate.C&D Commodities Xiamen C&D Commodities Co. Ltd. wholly-owned subsidiary of C&D Inc.Reporting Scope External Assurance
Green Energy (Shanghai) Technology Red Star Macalline Green Energy (Shanghai) Technology Co. Ltd. Co. Ltd. wholly-owned subsidiary of MACALLINE.The reporting period is between January 1 2024 and December RSM China CPA LLP independently guarantees the IPCC Intergovernmental Panel on Climate Change
31 2024 and some parts of the report may be beyond environmental social and corporate governance
IEA International Energy Agency
the aforementioned scope considering the continuity and performance key indicators in this report.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
Explanatory Note
We released this report in electronic format in both Simplified Chinese and English. In case of any inconsistencies between the
Chinese and English versions the Chinese version 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 our
Abbreviation Full Name
environmental social and corporate governance performance and if you have any comments or suggestions on this report please
C&D Inc. or We Xiamen C&D Inc. get in touch with us at compliance@chinacnd.com.
01 Xiamen C&D Inc. 2024 Sustainability ReportAbout This Message About C&D Inc. 2024 Sustainable 2024 Honors and Awards Management of Communications Sustainability- 04
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Message from the Chairman
In 2024 the combined effects of global commercial business. We have enhanced and "green empowerment" we have and joint responsibility in building a In this year we hae focused on unlocking and only by growing together with its
economic slowdown and the restructuring our professional matrix of "Specialized developed our unique digital platforms better society" and actively fulfilled individual potential to release the employees can a company endure in the
of geopolitical dynamics continue to Groups + Emerging Business Divisions" enabling the efficient integration of our social responsibilities as a state- internal driving force for sustainable long run.unfold with supply chain security energy improved platform-based operations and supply chain resources and forstering new owned enterprise. We have extended the development. We have integrated
transition and climate risks becoming key industry collaboration and built a more quality productive forces for industrial allocation of industrial resources to rural the “people-oriented” philosophy Confronted with a changing external
variables in corporate sustainability. As a resilient and scalable service ecosystem. In development. We have continued to areas implemented practical measures into organizational development and environment we are neither eager for
globally positioned company we adhere real estate operations we have expanded innovate in the development of green in consumer support infrastructure continuously enhanced the flexibility and quick success nor passively waiting. We
to the brand philosophy of "Together Go our value proposition across core building materials and sustainable development and the creation of livable resilience of the organization. We have will keep cultivating in the true industrial
Beyond" in alignment with the domestic business segments including real estate construction products advancing the full eco-friendly environments helping rural refined the full-cycle growth path for environment refine our direction while
and international dual circulation development urban renewal commercial life-cycle management of green and low- areas achieve a profound transformation employees established a training system advancing with the times. Through
strategy. We integrate sustainability into management and property operations carbon buildings. We have proactively from resource aggregation to the activation that bridges expertise management and "Professionalism" we weather changes
business operations to balance economic to create a more comprehensive efficient integrated into the circular economy model of endogenous momentum. We have cross-functional collaboration and drived through "Progress Together" we forge
performance social value and ecological and sustainable urban operational capacity. aiming to enhance resource recycling rates. continued to implement the "C&D Global both individual potential and organizational ahead and through the belief in "Go
sustainability. We are committed to driving We believe that by deeply embedding We have been accelerating the transition to Public Welfare Action" initiative promoting value to new heights. We have prioritized Beyond" we drive relentless innovation of
the continuous creation of social value ourselves in the industry we can outlast clean low-carbon energy alternatives for a the mutual prosperity and coexistence of employees' mental health and safety the company and sustainable growth of
in a more efficient way to fulfill our social market cycles; by honing our expertise we green energy transformation. Additionally enterprises and communities. We have creating an inclusive fair and supportive the industry ecosystem. We work tirelessly
responsibility. are better prepared for future challenges. we have extended our green and low- long practiced the charity initiative of work environment. We have streamlined to develop C&D Inc. into a world-class
carbon industry chain services working "Educational Sponsorships" providing communication channels and cultivated enterprise where employees feel engaged
This year we have solidified our This year we have remained committed with upstream and downstream partners to children with equitable and quality efficient dialogue at all levels to stimulate shareholders maintain confidence
development direction with enhanced to the concept of green and low-carbon establish a low-carbon ecosystem. educational resources allowing hope and organizational consensus and innovation. customers are satisfied and society holds in
professional expertise strengthening development promoting the "greening warmth to accompany their growth. We We deeply understand that the growth of high regard.。
our inherent "core strength" amid and renewal" transformation and This year we have made our firmly believe that the long-term value an organization stems from the sense of Chairman of C&D Inc.transformation. In supply chain upgrading of traditional industries. development more meaningful of a company is not only reflected in its accomplishment of its individuals; truly Lin Mao
operations we have consistently reinforced We issued the "Together to a Net Zero while expanding the reach of our business performance but also in the deep enduring companies must grow alongside
the "LIFT Supply Chain Service" system Future White Paper" and made a formal responsibilities. We have consistently connection it creates shares and advances their employees. We have recognized that
supported by the four key elements pledge to achieve net zero emissions. upheld the goal of "Industrial with society. the vitality of an organization stems from
of logistics information finance and Focusing on "digital empowerment" empowerment for rural revitalization the sense of accomplishment of its people
03 Xiamen C&D Inc. 2024 Sustainability ReportAbout This Message About C&D 2024 Sustainable 2024 Honors and Awards Management of Communications Sustainability- 06
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Chairman Stakeholders Governance
We actively respond to China's "dual circulation" strategy by deepening our "specialization" and "going global" strategies expanding both
About C&D Inc. 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 national market strengthening our presence in East and
South China while expanding into central and western regions. To date we have established 17 platform companies in key cities across the
C&D Inc. is a modern service-oriented enterprise with dual main businesses in supply chain operations and
country.Meanwhile we seize the development opportunities of the Belt and Road Initiative to accelerate international layout and have set
real estate. With the brand philosophy of “Together Go Beyond” we aim to become a leading international
up over 50 overseas companies and offices in RCEP member countries BRICS countries and countries along the Belt and Road Initiative
supply chain operator and a distinguished real estate developer in China. We are dedicated to being an
including Vietnam Malaysia Indonesia Japan South Korea and Brazil. Our overseas workforce includes more than 320 dispatched
exceptional enterprise that fosters employee satisfaction customer delight and societal respect.expatriates and locally employed foreign staff and we have established business relationships with over 170 countries and regions.Set up over
50
overseas companies and offices
More than
320dispatched expatriates
and locally employed foreign staff
Established business
relationships with over
170
countries and regions
05 Xiamen C&D Inc. 2024 Sustainability ReportAbout This Message About C&D Inc. 2024 Sustainable 2024 Honors and Awards Management of Communications Sustainability- 08
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2024 Sustainable Development Impact
Total Asset Operating revenue Operating costs Net profit attributable
76786723 70019104 66009867 to shareholders of the parent company
Ten-thousand RMB Ten-thousand RMB Ten-thousand RMB 294581
Economic
Impact Ten-thousand RMB
Total social contributions Including: ·Total tax payment Total work safety input Number of employees
4060339 1596788 Ten-thousand RMB 3602 47422
·Employee compensation：
Ten-thousand RMB 1088306 Ten-thousand RMB Ten-thousand RMB
·Dividends paid to shareholders：
420802 Ten-thousand RMB Volunteer service hours Employee training hours
Social ·Interests paid to creditors：
Impact 12307 1387623 950368 Ten-thousand RMB
hours hours
·Social donations：4075Ten-thousand RMB
Total environmental GHG emission intensity Energy intensity
protection input
1509021262
tCO2e/hundred-million RMB of operating revenue tce/hundred-million RMB of operating revenue
Ten-thousand RMB
Environmental
Impact
07 Xiamen C&D Inc. 2024 Sustainability ReportAbout This Message About C&D Inc. 2024 Sustainable 2024 Honors and Management of Communications Sustainability- 10
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Chairman Stakeholders Governance
2024 Honors and Awards
Awards Related to Economy Society and Environment
C&D Inc. C&D Inc. C&D Inc. C&D Inc.
555th "20-Year Growth Model Award for Listed "2024 Exemplary Cases of ESG Value among "2024 Top 100 Best ESG Practices of Chinese
Companies" A-share Listed Companies" Listed Companies"
presented by National Business Daily by CHINAFUND recognized by Wind
place on 2024 Forbes Global Top 2000
C&D Inc. C&D Inc. C&D Inc. C&D Inc."China Top 100 Best Management and
Operations Award" "2024 Outstanding ESG Practice Cases of "2024 Best ESG Practices Award for Listed "2024 Excellent Board Practices of Listed
presented by the China Business Top 500 Listed Companies" Companies" Companies"
Forum of China Association for Public recognized by China Association for Public presented by Easy-board recognized by China Association for Public
Companies Companies Companies
C&D Inc. C&D Inc. C&D Inc. C&D Inc."Best Information Disclosure Award" "7th Digital Transformation and Innovation
at the 7th China IR Annual Awards jointly "ESG Pioneer Enterprise Award" The "Best Investor Relations Awards" Awards 2024"
presented by Roadshow China and presented by Cailianpress.com presented by iFinD presented by the Digital Industry Innovation
International Road Show Center Research Center
C&D Inc. C&D Inc."Top 100 ESG Golden Bull Award" "2024 ESG Development Impact Enterprise"
presented by China Securities Journal honored by Hexun.com
09 Xiamen C&D Inc. 2024 Sustainability ReportAbout This Message About C&D Inc. 2024 Sustainable 2024 Honors and Awards Management Communications Sustainability- 12
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Management of Material Matters 1 2 3
Sustainability Disclosure International Initiatives Economic and Macro-Policy Standards Dynamics
As a key step in sustainable development management and information disclosure we The United Nations Sustainable The National carbon peaking and carbon Sustainability Disclosure Standards for
Development Goals (SDGs) the 29th neutrality goals global temperature control
conducted a double materiality assessment of sustainability matters in 2024. Based on Enterprise - General Requirements (Trial) Conference of the Parties of the UNFCCC targets under the Paris Agreement Science
jointly formulated by the Ministry of Finance of
the evaluation methods outlined in the Sustainability Disclosure Standards for Enterprise (COP 29) the Due Diligence Guidance Based Targets initiative (SBTi) the Belt the People’s Republic of China the Ministry of
for Responsible Business Conduct of and Road Initiative digital and intelligent
- General Requirements (Trial) jointly formulated by the Ministry of Finance of the Foreign Affairs the National Development and Organisation for Economic Co-operation and transformation supply chain restructuring
Reform Commission the Ministry of Industry and
People’s Republic of China the Ministry of Foreign Affairs the National Development Development (OECD) etc. and changes in international trade policies Information Technology the Ministry of Ecology
etc.and Reform Commission the Ministry of Industry and Information Technology the and Environment the Ministry of Commerce the
People's Bank of China the State-owned Assets
Ministry of Ecology and Environment the Ministry of Commerce the People's Bank Supervision and Administration Commission
of China the State-owned Assets Supervision and Administration Commission of the of the State Council (SASAC) the National
Financial Regulatory Administration and the
State Council (SASAC) the National Financial Regulatory Administration and the China China Securities Regulatory Commission. It
Securities Regulatory Commission. It also follows the Guidelines No. 14 of Shanghai also follows the Guidelines No. 14 of Shanghai 5 4
Stock Exchange for Self-Regulation of Listed
Stock Exchange for Self-Regulation of Listed Companies – Sustainability Report (Trial) Companies – Sustainability Report (Trial) and Company Strategy and
and the Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE the Guide No.4 for Self-Regulatory Supervision
Market Trends
Development Needs
on Listed Companies of the SSE - Compilation
- Compilation of Sustainable Development Reports issued by the Shanghai Stock of Sustainable Development Reports issued by Highlight the sustainability of growth Characteristics of diversification
Exchange the European Sustainability Reporting Standards (ESRS) released by the the Shanghai Stock Exchange the Sustainability respond to industry regulations and policies customization and rapid response
Accounting Standards Board (SASB) Standards strengthen corporate resilience and risk value chain transparency and the rising
European Commission and the two IFRS Sustainability Disclosure Standards(ISDS) the Reference of ESG Indicators System for ESG management capabilities and drive long-term certification thresholds in international
issued by the International Sustainability Standards Board (ISSB) we carried out the Reports of Listed Chinese Central State-Owned high-quality development. markets for corporate qualifications product
Enterprises issued by the SASAC Research compliance ESG performance and more.double materiality assessment to identify sustainability matters that have material Center the European Sustainability Reporting
Standards (ESRS) released by the European
impact on the stakeholders and on the company's long-term business value.Commission and the two IFRS Sustainability
Disclosure Standards(ISDS) issued by the
International Sustainability Standards Board
In the materiality assessment we follow the principle of "double materiality" to (ISSB).identify whether a matter is expected to have a material impact on our business
model operations and other aspects in the short medium and long term (financial
materiality) and whether our performance on the matter will have a material impact
on the economy society and the environment (impact materiality). We gathered multi-
dimensional opinions from 130 stakeholders through surveys. Based on the survey Thirty Potential Material Matters Identified
results we systematically identified and selected 9 matters with "double materiality"
which are explained in the relevant sections of this report. Dimension Sustainability Matters
Climate Response Pollutant Discharge
Environmental Waste Disposal Ecosystem and Biodiversity Protection
Environmental Compliance Management Energy Usage
Usage of Water Resources Circular Economy
Rural Revitalization Social Contributions
Double Materiality Assessment Process Innovation-driven Development Technology EthicsResponsible Sourcing Supply Chain Security
Equal Treatment to SMEs Safety and Quality of Products
Social Data Security and Customer and Services
Privacy Protection Supporting Industry Development
Step 1 Understanding the Context and Identifying Sustainability Matters Equal Employment Human Rights Protection
Employee Communication Employee Development and Training
Employee Compensation and Benefits Occupational Health and Safety
Due Diligence Communications with Stakeholders
We conducted the context analysis by fully considering the selected sutainability disclosure standards international initiatives global Governance Risk and Compliance Management Anti-Commercial Bribery and Anti-Corruption
economic and macro-policy dynamics market trends and the company's strategy and development needs. As a result we identified 30 Ati-unfair Competition Tax Compliance
sustainability matters relevant to the company.
11 Xiamen C&D Inc. 2024 Sustainability ReportAbout This Message About C&D Inc. 2024 Sustainable 2024 Honors and Awards Management Communications Sustainability- 14
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Step 2-1 Impact Materiality Assessment Step 2-2 Financial Materiality Assessment
We assess the impact materiality and financial materiality of each matter based on two dimensions: the severity and the likelihood of We assess the financial materiality of each matter based on two dimensions: the potential magnitude and the likelihood of occurrence.occurrence.Dimension 1:Potential Magnitude Dimension 2:Likelihood of Occurrence
Dimension 1:Severity of Impact
The extent of direct and indirect positive and negative effects The likelihood of financial effects on the company from
We assessed the "severity of impact" of key sustainability matters
that the opportunities and risks associated with each material the opportunities and risks associated with each material
across economic environmental and social dimensions through
sustainability matter may bring to the company's financial sustainability matter in the short medium and long-term.stakeholder surveys with 130 valid questionnaires returned.performance during the reporting period and in future projections.We used statistical methods such as weighted averages and
variance analysis to quantify the qualitative scores (1-5 scale)
of each matter. The overall severity score was calculated by
Reference Factors
combining the weight distribution to determine the priorities of
sustainability impacts.Costs Considering factors such as market price of resources trend forecasts and the company’s historical costs
Dimension 2:Likelihood of Occurrence Profits Taking into account both costs and revenues assessing the impact on profits
We inferred the risk probability based on the frequency
of similar events in the past and classified and quantified
the probability of risk occurrence based on experience to Financial Materiality Assessment Outcomes
determine the likelihood of occurrence. Low Medium High
Financial Materiality：Low Financial Materiality：Medium Financial Materiality：High
*Pollutant Discharge
Impact Materiality Assessment Outcomes *Waste Disposal
*Data Security and Customer Privacy *Environmental Compliance
Impact Materiality: Low Impact Materiality: Medium Impact Materiality: High Protection Management*Employee Development and Training
*Responsible Sourcing ·Climate Response
*Ati-unfair Competition
*Employee Compensation and Benefits *Due Diligence ·Supply Chain Security*Tax Compliance
*Social Contributions *Innovation-driven Development ·Risk and Compliance Management*Rural Revitalization
*Employee Communication *Environmental Compliance Management *Energy Usage ·Safety and Quality of Products and *Equal Employment
*Rural Revitalization *Occupational Health and Safety *Risk and Compliance Management *Communications with Stakeholders Services*Employee Compensation and Benefits
*Energy Usage *Human Rights Protection *Safety and Quality of Products and Services *Supporting Industry Development ·Social Contributions*Employee Communication
*Usage of Water Resources *Equal Employment *Responsible Sourcing *Equal Treatment to SMEs ·Circular Economy*Technology Ethics
*Communications with Stakeholders *Supporting Industry Development *Climate Response *Occupational Health and Safety Anti-Commercial Bribery and Anti-
*Ati-unfair Competition *Waste Disposal *Circular Economy *Human Rights Protection Corruption
*Tax Compliance *Due Diligence *Supply Chain Security *Usage of Water Resources
*Technology Ethics *Pollutant Discharge *Anti-Commercial Bribery and Anti- *Ecosystem and Biodiversity Protection
*Ecosystem and Biodiversity Protection *Innovation-driven Development Corruption
*Data Security and Customer Privacy *Employee Development and Training
Financial Materiality: "Low" refers to potential impact in the short medium and long term. "Medium" indicates an impact in the short term
Protection
*Equal Treatment to SMEs with potential impact in the medium and long term. "High" signifies a short-term impact with a strong likelihood of material impact in the
medium and long term.
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Step 3 Consolidating Impact and Financial Materiality Outcomes
Based on the assessment outcomes of impact materiality and financial materiality we have developed a materiality matrix and identified 9
Environmental
material matters.Social
Governance
Impact and Financial Materiality Sustainability Matters
27
161
135
8
27 Risk and Compliance Management 16 Safety and Quality of Products and Services 14
2810
1 Climate Response 13 Responsible Sourcing
High 5 Environmental Compliance Management 8 Circular Economy
14 Supply Chain Security 28 Anti-Commercial Bribery and Anti-Corruption 22 20 18
10 Social Contributions 23 3
2119
911
25
18 Supporting Industry Development 3 Waste Disposal 2
24 Occupational Health and Safety 20 Human Rights Protection
12
22 Employee Development and Training 23 Employee Compensation and Benefits 7 17
11 Innovation-driven Development 19 Equal Employment
Medium 29 6
21 Employee Communication 25 Due Diligence
9 Rural Revitalization 2 Pollutant Discharge 26
17 Data Security and Customer Privacy Protection 6 Energy Usage 15
7 Usage of Water Resources 26 Communications with Stakeholders
15 Equal Treatment to SMEs 29 Anti-unfair Competition
12 Technology Ethics
30
Low
30 Tax Compliance Management 4
4 Ecosystem and Biodiversity Protection
Financial Materiality
C&D Inc. Materiality Matrix
15 Xiamen C&D Inc. 2024 Sustainability Report
Impact Material ItyAbout This Message About C&D Inc. 2024 Sustainable 2024 Honors and Awards Management Communications Sustainability- 18
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Step 4 Reporting and Operational Practices
The materiality assessment outcomes are 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
The Chapter of
Material Matter Value Value Com- Affected Stakeholders Risks Opportunities Time Horizon SDGsChain Opera- Chain muni- Management and Action
Up- tions Down- ties
stream stream
·Promote the use of green and clean energy and invest in low-carbon and
environmentally friendly industries to gain early market advantages.·Develop low-carbon and environmentally friendly products and offer
·Employees ·Climate change may increase the frequency of extreme weather green services to meet the growing market demand for sustainable
·Customers events such as floods droughts and typhoons. These events may solutions thereby strengthening our competitiveness in the transition
·Suppliers damage transportation infrastructure disrupt supply chains raise toward a low-carbon economy.·Investors logistics costs and further affect operational efficiency and business ·Formulated a dual-carbon strategy (carbon peaking and carbon Short-term
Climate Response
Climate Response ? ? ? ? ·Banks stability. neutrality) and are actively engaging our supply chain partners in joint Mid-term
Circular Economy
·Media ·Climate change may also constrain the supply of critical raw decarbonization efforts enhancing our overall strengths in green and Long-term
·Government and materials leading to shortages and rising prices. This in turn can low-carbon development while gaining broader market support and
Regulatory Bodies impact production schedules and increase the difficulty of cost social recognition.·NGOs control. ·Financial institutions and investors are increasingly favoring green and
low-carbon projects. Companies that advance low-carbon development
are more likely to gain support from capital markets and benefit from
reduced financing costs.·Committed to building a robust product quality management system
·Failure to meet industry standards or regulatory requirements may
delivering responsible products and services and establishing trust in
result in administrative penalties product recalls or legal actions.the minds of consumers. This enhances our brand image strengthens our
It may also lead to increased maintenance costs higher insurance
market competitiveness and supports long-term and stable development. Short-term
Safety and Quality of ·Customers premiums and potentially significant fines or legal liabilities. Safety and Quality of
????
Products and Services ·Continuously improve our service processes and product quality Mid-term·Suppliers ·Product quality issues or safety incidents could trigger consumer Products and Services
integrating customer rights protection into every stage of our operations. Long-term
complaints and negative media exposure damaging the company’s
By doing so we aim to enhance customer satisfaction and loyalty
brand reputation eroding customer trust and ultimately causing a
injecting momentum into the company’s long-term growth and its
loss of market share.coordinated development with society.·Employees
·Consumer demand for circular products may be affected by
·Customers
economic cycles resulting in market volatility that could impact sales ·Actively respond to national policies by developing green and circular
·Suppliers
performance and market share. economy businesses promoting resource recycling and reducing
·Investors
·End customers are placing increasing emphasis on certification operational costs. Mid-term Climate Response
Circular Economy ? ? ? ? ·Banks
standards for circular materials which may drive up procurement ·Strive to scale up related business operations and enhance our market Long-term Circular Economy
·Media
costs and heighten compliance pressure on the company. competitiveness by advancing the circular economy and leveraging
·Government and Regulatory
·Investments in innovation related to resource recycling and circular supportive sustainability policies and shifting market preferences
Bodies
economy initiatives may increase financial costs in the short term.·NGOs
·Internal control deficiencies may lead to fraudulent activities
·Employees
resulting in financial losses and exposure to legal liabilities.·Customers
·Failure to comply with relevant laws and regulations may result in ·Strengthening risk and compliance management system enhances the
·Suppliers
legal sanctions regulatory penalties or reputational damage. ability to withstand risks and reinforces resilience for long-term
·Investors Short-term
Risk and Compliance ·Inadequate risk and compliance management may weaken the sustainable development. Risk and Compliance
? ? ? ? ·Banks Mid-term
Management Company’s overall ability to respond to risks increasing potential ·Establishing a sound emergency management mechanism enables Management
·Media Long-term
exposure in financial legal compliance and reputational areas. the Company to respond efficiently to unexpected incidents minimize
·Government and Regulatory
·An underdeveloped emergency management system may limit the operational losses and safeguard brand reputation and market trust.Bodies
Company’s responsiveness to unexpected risks potentially
·NGOs
disrupting business operations and harming brand reputation.Impact Duration Description:Short-term generally refers to within one year (inclusive) after the end of the reporting period; mid-term refers to one to five years (inclusive) after the end of the reporting period; long-term refers to more than five years after the end of the reporting period.
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Scope of Impact
The Chapter of
Material Matter Value Value Com- Affected Stakeholders Risks Opportunities Time Horizon SDGsChain Opera- Chain Management and Action
Up- tions Down- muni-
stream stream ties
·Employees
·Customers
·Failure to disclose environmental information as required may result
·Suppliers ·Continuously strengthen our environmental management system which
in penalties from regulatory authorities and damage the Company’s
·Investors sets clear standards for pollutant reduction water resource conservation Short-term
Environmental Compliance reputation. Environmental Compliance
? ? ? ? ·Banks and biodiversity protection. Mid-term
Management ·Environmental policies and regulations may be frequently updated Management
·Media ·Strive to optimize resource utilization reduce waste and lower production Long-term
requiring companies to stay informed and compliant to avoid
·Government and Regulatory costs under the premise of environmental compliance.potential sanctions.Bodies
·NGOs
·If suppliers fail to strictly comply with environmental protection
labor rights or business ethics standards it may lead to legal risks
and reputational damage ultimately affecting our market position
·We integrate ESG-related requirements into supplier onboarding
and customer trust.performance evaluation and capacity building to continuously enhance
Responsible Sourcing ? ? ? ·Supplier failures in fulfilling their responsibilities may cause supply
supply chain resilience and sustainability. This strengthens our ability to
disruptions which can impact production and delivery schedules
manage risks and ensures long-term stable operations.·Customers increase operational uncertainty and negatively affect customer
·Responsible sourcing practices help build our image as a socially
·Suppliers satisfaction and corporate credibility. Medium-term
responsible enterprise earning trust from consumers and investors while Supply Chain Security
·Investors ·Excessive supplier concentration may amplify risks associated with Long-term
further enhancing brand value and market competitiveness.·NGOs individual supply chain links weakening overall supply chain
·Reduce the risk of supply disruptions and lower logistics costs improving
resilience. In extreme cases this may result in supply chain
supply chain flexibility and responsiveness by adopting a diversified
disruptions increased procurement costs or production halts.supplier portfolio and localized sourcing strategies to support sustained
Supply Chain Security ·While sourcing compliant raw materials using clean energy or ? ? ? growth in a dynamic market environment.adopting low-carbon logistics can enhance sustainability
performance such measures may increase procurement costs in the
short term.·Involvement in bribery or corruption scandals may severely
undermine public trust in the company’s integrity and ethical
·Employees standards damaging brand reputation and weakening market ·Adhering to the principles of fair competition helps foster a healthy
Anti-Commercial Bribery ·Customers competitiveness. market environment and enhances the company’s competitiveness. Anti-Commercial Bribery and
? ? ? Long-term
and Anti-Corruption ·Suppliers ·A lack of effective anti-corruption measures may result in internal ·Compliance with anti-corruption regulations can reduce costs associated Anti-Corruption
·Investors control failures increased operational risks and compromised with legal actions and penalties.compliance ultimately threatening the company’s long-term
sustainability.·A lack of social responsibility may lead to declining public trust in the
company’s integrity and ethical standards thereby damaging brand
reputation and weakening market competitiveness.·Employees
·Investors and stakeholders are placing increasing emphasis on ·Enhancing collaboration between the company and local communities
·Banks
companies’ social and environmental performance. Companies in areas such as resource recycling value co-creation and inclusive
·Media
Social Contributions ? ? that fail to actively fulfill their social responsibilities may face greater development helps build a sustainable society based on shared growth. Long-term Social Contributions
·Government and
difficulties in accessing financing or higher financing costs which in This also strengthens the company’s sense of social responsibility and l
Regulatory Bodies
turn can affect capital acquisition and operational efficiency. ong-term societal impact.·NGOs
·Charitable donations and community investments may place
demands on company resources potentially affecting cash flow and
profitability.
19 Xiamen C&D Inc. 2024 Sustainability ReportAbout This Message About C&D Inc. 2024 Sustainable 2024 Honors and Awards Management of Communications Sustainability- 22
Report from the Development Impact Material Matters with Related
Chairman 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.Banks and Other Financial Government and Regulatory Non-governmental
Employees Clients Suppliers Investors Institutions Media Institutions 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 Services and Services Risk Management Stakeholders
Stakeholders Stakeholders Stakeholders
and 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
Benefits Tax Compliance Ati-unfair Competition Ati-unfair Competition Ati-unfair CompetitionTax Compliance Development
Employee Feedback
Public Company Information
Solicitation
Employee Training and Customer Satisfaction Surveys Disclosure
Social Welfare Activities On-site Visits
Activities Customer Service and Supplier Conferences Shareholders' Meetings
Public Company Information Public Company Information Engagement in Policy On-site Visits
Employee Satisfaction Complaint Management Conferences Earnings Conference Call and
Disclosure Disclosure Formulation and Suggestion Community Service
Surveys 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
Company WeChat Public
Interactive Platform
Account
21 Xiamen C&D Inc. 2024 Sustainability Report
Stakeholders Concerned Issues Communication MethodsAbout This Message About C&D Inc. 2024 Sustainable 2024 Honors and Awards Management of Communications Sustainability- 24
Report from the Development Impact Material Matters with Stakeholders Related
Chairman Governance
Sustainability-Related Governance Appointment of Directors and Senior Management
We strictly follow the procedures for the nomination and selection of board members and senior management as outlined in the "Articles
We integrate the concept of sustainable development into corporate governance establishing and continuously improving a just of Association" "Shareholders' Meeting Rules" and "Nominations Committee Work Guidelines." The Nominations Committee established
responsible effective and inclusive governance system. We strive to enhance the scientific basis and transparency of decision-making under the board of directors conducts a qualification review of candidates based on the required criteria for directors and senior
build fair and positive relationships with all stakeholders and provide a solid foundation for the company’s sustainable development and management (including gender age education professional background work experience social roles and other multi-dimensional
long-term value realization. factors) and provides recommendations to the board. Senior management is appointed after being reviewed and approved by the board
while the appointment of directors is subject to approval by the board and election at the shareholders' meeting.Our board of directors currently consists of 9 members 3 of whom are independent directors all holding doctoral degrees accounting for
Governance We are gradually establishing and enhancing a top-down governance structure for sustainable 33.33% of the total board members.development to ensure the effective implementation of sustainability management efforts Our senior management team covers professional fields such as corporate management financial management and risk management
Structure and continuously improving our sustainability management capabilities and promoting the including 2 female senior executives who make up 25% of the total senior management.Mechanisms realization of long-term corporate value.Professionalism Board Committees
Name Occupation Age
Industry Operations Risk Accounting & Strategy and Risk Remuneration
Investment
Control and Sustainability Management and Appraisal and Policy- Audit Nominations Experience Management Compliance Financial Committee Committee Committee making Committee Committee
Committee
Board Level Executive Level Lin Mao（ Male） Chairman 56 ○ ○ ○ ○ ○ ○ ○
Zheng
At the board level we have established several At the executive level we have established a Sustainability Yongda Vice Chairman 53 ○ ○ ○ ○ ○ ○ ○（ Male）
subcommittees: The Strategy and Sustainability Committee Task Force composed of senior management and managers Huang
Wenzhou Director 60 ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
Audit Committee Remuneration and Appraisal Committee from relevant functional departments. Under the guidance （Male）
Nominations Committee Risk Management Committee of the Strategy and Sustainability Committee the task force Ye Yanliu（ Female） Director 52 ○ ○ ○ ○ ○ ○ ○
and Investment and Policy-Making Committee. These is responsible for the specific implementation of ESG-related
Zou
committees provide comprehensive and professional work. Shaorong Director 48 ○ ○ ○ ○ ○ ○（ Male）
consultation and advice to assist the board in guiding and Chen
Dongxu Director& Vice 54 ○ ○ ○ ○ ○ ○
overseeing the management of ESG matters. The Strategy （ Male）
President
and Sustainability Committee is responsible for researching Lin Tao Independent（ Male） Director 53 ○ ○ ○ ○ ○
and offering recommendations on ESG issues of concern Chen
Shoude Independent
to stakeholders including ESG strategy environmental Board Level 48
○○○○○（ Male） Director
management greenhouse gas emissions human rights Wu Yuhui Independent 46 ○ ○ ○ ○ ○
protection and responsible supply chains. The committee Strategy and Sustainability Committee（ Male） Director
Cheng
also reviews the ESG report monitors and checks our ESG- Dongfang CEO 46 ○ ○ ○ ○（ Male）
related work. The Strategy and Sustainability Committee Vice
Jiang Guizhi President&
holds annual meetings to discuss ESG matters and （ Female） Board 53 ○ ○ ○ ○
Secretary
climate-related issues and reports to the board. In 2024
Wang Zhibin Vice President 56 ○ ○ ○ ○
to further improve our governance structure and enhance （Male）
our governance level we established the Nominations Executive Xu Jiana
Level （ Male） Vice President 46 ○ ○ ○ ○
Committee. This committee is responsible for developing the
Lv Rongdian
candidate criteria and selection procedures for our directors Sustainability Task Force （ Male） Vice President 47 ○ ○ ○ ○
and senior management and it provides recommendations Wei Zhuo（ Female） CFO 45 ○ ○ ○ ○
to the board on potential candidates for these positions.
23 Xiamen C&D Inc. 2024 Sustainability ReportAbout This Message About C&D Inc. 2024 Sustainable 2024 Honors and Awards Management of Communications Sustainability- 26
Report from the Development Impact Material Matters with Stakeholders Related
Chairman Governance
The diversification and specialization of the structure of directors and senior management 2024 Shareholding Table of Directors and Senior Management
are critical to the company’s decision-making. We attach great importance to the
continuous improvement of the professional capabilities of our directors supervisors we organized training for directors
supervisors and senior management Number of
and senior management. Every year we regularly organize training sessions on their No. Name Position Shares Held
on topics such as the "Independent
duties and sustainable development which helps enhance our corporate governance and
Director Management Measures" and
ensures the compliance and efficiency of our operations. In 2024 we organized training 1 Lin Mao Chairman 641080
the new "Company Law."
for directors supervisors and senior management on topics such as the "Independent
Director Management Measures" and the new "Company Law." 2 Zheng Yongda Vice Chairman 647840
3 Huang Wenzhou Director 225621
Compensation of Director and Senior Management
4 Ye Yanliu Director 451760
We have established a Remuneration and Appraisal Committee under the board of directors which performs its duties in accordance 5 Zou Shaorong Director 13518
with the "Remuneration and Appraisal Committee Work Guidelines." The committee is responsible for providing recommendations on
the remuneration of directors formulating the remuneration and performance evaluation plans for senior management and conducting 6 Chen Dongxu Director and Vice President 564840
performance assessments for senior management. The Chairman of the Board and senior management receive compensation based
on an annual salary system which consists of a base salary and a performance-based salary. The performance-based salary is linked to 7 Cheng Dongfang CEO 510200
the company’s economic performance and individual achievements in addition to receiving benefits as outlined by the company. The
Chairman's remuneration scheme is drafted by the Remuneration and Appraisal Committee and submitted to the Board of Directors for 8 Wang Zhibin Vice President 662547
review. After being approved by the Board of Directors it is implemented upon approval by the shareholders' meeting. The remuneration
scheme for senior management is drafted by the Remuneration and Appraisal Committee and submitted to the Board of Directors for 9 Jiang Guizhi Vice President and Board Secretary 661000
approval before implementation. The remuneration or allowances of independent directors are decided by the shareholders' meeting.
10 Xu Jiana Vice President 501000
11 Lv Rongdian Vice President 509800
Clawback The Shareholding of Directors
Mechanism and Senior Management 12 Wei Zhuo CFO 266500
For the compensation of the directors and senior management We have implemented a restricted stock incentive
personnel holding specific positions within the company we plan granting restricted stocks to the company's
reserve a certain proportion of annual performance-based directors and senior executives to establish a medium-
compensation as risk reserve which is paid out at a deferred to long-term incentive and restraint mechanism. As Related Party Transaction
schedule. In the event of losses incurred due to improper of December 31 2024 the company's directors and
management or other personal reasons or violations of laws senior executives collectively hold 5655706 shares of
To ensure that the company's related-party transactions adhere to the principles of fairness justice and transparency we strictly comply
and regulations the corresponding compensation amount the company accounting for 0.19% of the total share
with relevant laws and regulations. Based on our operational practices we have formulated the "Related-Party Transaction Management
will be deducted from the risk reserve aiming to prevent short- capital.System" which clearly outlines the review and disclosure procedures for related-party transactions as well as the pricing principles.term behavior in management and salary risks. Additionally
We follow the legal and regulatory procedures for reviewing related-party transactions and transactions that require disclosure must
we have formulated "Regulations on the Management of
be submitted to the board for approval after being agreed upon by a majority of the independent directors. The board of directors and
Rewards and Punishments" linking sustainable performance
the shareholders' meeting review related-party matters within their authority and we strictly implement the related-party abstention
in human capital safety management integrity in operation
mechanism ensuring that related directors and shareholders abstain from voting. In addition our "Financial Management Regulations" and
clean construction information security etc. with the
"Funds Management Regulations" also address the management of related-party transactions. In 2024 we further revised and improved
compensation performance of management and relevant
the "Related-Party Transaction Management System" and all related-party transactions have been carried out in accordance with relevant
responsible personnel.laws regulations and internal management systems following the appropriate decision-making procedures.
25 Xiamen C&D Inc. 2024 Sustainability ReportAbout This Message About C&D Inc. 2024 Sustainable 2024 Honors and Awards Management of Communications Sustainability- 28
Report from the Development Impact Material Matters with Stakeholders Related
Chairman Governance
Conflict of Interest Investor Relations Management
In accordance with the "Articles of Association" directors and senior management personnel are obligated to act in good faith towards the We have established the "Investor Relations Management System" and established an investor relations In 2024
company. Without the consent of the shareholders' meeting they are not allowed to exploit their positions to pursue business opportunities that management mechanism. The Chairman of the Board of Directors serves as the primary person
rightfully belong to the company for themselves or others engage in self-employment or operate businesses similar to those of the company in responsible for investor relations management while the Securities Department under the leadership
we were awarded the
order to ensure fairness and transparency in decision-making. We require directors and senior management personnel to promptly report any of the Board Secretary is responsible for organizing and implementing investor relations management
"Best Investor Relations Award"
significant positions held in other entities to us to avoid potential conflict with the interests of the company. work. We have established diversified channels of communication with investors including the Investor
Relations section on the official website investor hotline investor email Shanghai Stock Exchange by iFinD.E-Interactive Platform shareholder meetings and performance presentations investor visits and surveys
Protection We strictly adhere to the requirements of relevant laws and regulations such as the "Company etc. to maintain effective and positive communication with investors. In 2024 we were awarded the "Best
Law of the People's Republic of China" "Securities Law of the People's Republic of China" and Investor Relations Award" by iFinD.of Minority the "Code of Corporate Governance for Listed Companies" establishing a sound "three-tiered"
Shareholders' corporate governance structure. We continuously improve the governance system based on the "Articles of Association" consisting of internal governance documents such as the "Rules of
Rights and Shareholders Meetings" the "Rules of Procedure for Board Meetings" and "Rules of Procedure
for Board of Supervisors Meetings" clarifying the responsibilities of the power decision-making
Interests supervisory and management bodies to ensure coordinated and standardized operations and
Investor
promote the high-quality development of the company. The Board of Supervisors consists of We maintain a smooth investor hotline and respond promptly to inquiries from
Hotline and
three supervisors including one employee supervisor. The Board of Supervisors strictly follows
Interactive retail investors. We received over 600 calls and responded to 68 questions from retail
Held a total of relevant regulations and internal rules such as the Articles of Association and the Rules of Platform shareholders on the E-Interactive platform.
3 Procedure for Board of Supervisors Meetings conscientiously fulfilling its supervisory duties.
It supervises the legality and compliance of directors and senior management personnel in
shareholders' meetings performing their duties and the company's financial condition and provides opinions on related
significant matters. We strictly follow relevant regulations and internal rules such as the "Articles
Reviewed of Association" and "Rules of Shareholders Meetings" standardizing the convocation holding
Online In 2024 we held multiple online earnings presentations communicating with
26 and voting procedures of shareholders' meetings and safeguarding the rights of all shareholders Earnings investors during key reporting periods and other critical times actively addressing
especially minority shareholders. Presentations
proposals In 2024 we held a total of 3 shareholders' meetings during which 26 proposals were reviewed; investor concerns.
27 board meetings during which 75 proposals were reviewed; and 97 specialized committee
meetings during which 492 proposals were reviewed. We also held 8 supervisory board
meetings during which 21 proposals were reviewed. The attendance rate for all directors and
We actively promote the company's performance and key highlights through
supervisors was 100%.visual content such as "Fast Fact of Annual Report 2023 of C&D Inc." and "Fast Fact
Diversified
of Sustainability Report 2023 of C&D Inc." We also launched an investor relations
Media
Information Disclosure Management Platform video account and combined AI digital characters with earnings briefings and ESG
Promotion: promotion videos to add interest dynamism and a sense of technology. These
efforts vividly showcase the company’s business achievements and sustainable
We strictly adhere to the requirements of relevant regulations such as the "Rules Governing the Listing of Stocks on Shanghai Stock Exchange"
development practices conveying our value and enhancing market influence.and have formulated a series of regulatory documents including the "Information Disclosure Management System" "Debt Financing Instrument
Information Disclosure Management System for the Interbank Bond Market" "Insider Information Holder Registration Management System"
"External Information User Management System" and "Significant Information Internal Reporting System." These documents clarify the scope
time limits procedures and channels for information disclosure standardizing the information disclosure process. Additionally we actively carry
out the registration of insiders and internal reporting of significant information to ensure that information disclosure is conducted truthfully
accurately timely and completely thereby fully safeguarding the right to information of all investors.
27 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental
Environmental Performance Targets in 2024 Completion Status
Organize and complete the annual greenhouse gas (Scope 1 and Scope 2)
1 inventory with the greenhouse gas (Scope 1 and Scope 2) emissions data
verified by a third-party agency
Gradually promote rooftop photovoltaic (PV) installations in company-
2 owned factories to advance clean energy adoption and increase the share of
green energy in production
Actively advance energy transition and upgrades invest in photovoltaic
3 power station projects and promote the development of new energy
vehicle (NEV) business
Improve the coverage of ISO 14001 environmental management system
4 certification ensuring that 100% of subsidiary manufacturing enterprises
obtained the certification
Ensure that all emissions of waste gas wastewater and waste pollutants
5 meet standards throughout the year with no major environmental
pollution incidents or environmental-related penalties
Recycle no less than 1 million tons of scrap steel 40000 tons of recycled
6 aluminum recycled copper and recycled aluminum alloy and 380000 tons
of wastepaper in the year
7 All subsidiary manufacturing enterprises achieve their target for annual water consumption per unit product
Completed In Progress Unfinished
01Environmenttaall Social Governance Appendix 32
Climate Response
Currently climate change brings profound impact on the global ecological environment economic development and social stability. Extreme
weather events such as high temperatures heavy rainfall droughts and hurricanes are increasingly frequent posing a threat to human life and
safety and causing significant damage to agricultural production infrastructure and energy supply. In this context we address the challenges of
climate change adhere to the concept of green and low-carbon development strictly follow the requirements of the Paris Agreement and local
carbon reduction policies and promote the low-carbon transformation of business operations and supply chains.Climate Strategy
As a globally positioned company we uphold the brand philosophy of "Together Go Beyond" and actively respond to China’s carbon peaking transformation of industries through initiatives such as developing green and low-carbon products advancing low-carbon development across
and carbon neutrality strategy and the global temperature control goals under the Paris Agreement. We make the net zero commiment to peak the value chain promoting the use of clean and low-carbon energy facilitating the recycling of resources investing in green low-carbon and
the greenhouse gas emissions by 2030 and achieve net-zero emissions across Scope 1 2 and 3 covering the entire value chain by 2060. eco-friendly industries and implementing green and low-carbon actions. We contribute to the development of a green and low-carbon circular
We are dedicated to implementing the Paris Agreement and the United Nations Sustainable Development Goals. We are driving the green economy system and move towards sustainable development.Carbon Emission Growth Phase Steady Decarbonization Phase Net-Zero Emission Phase
Carbon
Peaking 实现净零排放
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.To peak the greenhouse gas To achieve net-zero emissions
across Scope 1 2 and 3
emissions by 2030 covering the entire value
Baseline Emi
ssions NET
chain by 2060 Carbon Peaking ZERO
Voluntary
973719tCO e Emission 2 Reductions
White Paper Scenario
Offsets
Together Go Beyond
202320302060
B3a1seline Year Near-term Target Long-term Target Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 34
Climate-Related Risks Opportunities Physical Risk Assessment
and Financial Impacts 2030 2050
Climate-related Risks Current Status SSP1-1.9 SSP5-8.5 SSP1-1.9 SSP5-8.5
Climate change presents both challenges and opportunities Typhoons and Floods
for human society. We regularly conduct the identification Typhoons bring strong winds heavy rainfall and storm
surges while floods cause waterlogging disasters which
and analysis of climate change risks based on our business may damage buildings equipment and inventory or even
characteristics while refering to different climate scenarios destroy factories and warehouses affecting production and
storage. These events could lead to injuries or entrapment of
from the IPCC and IEA models. We assess the physical risks employees and surrounding residents and may even trigger
transition risks transition opportunities and the corresponding secondary disasters such as landslides and mudslides.Additionally they may cause traffic congestion road
impacts that the company may face in the short medium and collapses port closures and shipping disruptions leading
long term. We integrate the management of climate-related to interruptions in logistics and supply chains resulting
in insufficient raw material supply or delays in product
risks opportunities and financial impacts into our overall delivery.enterprise risk management system continuously enhancing Sea Level Rise
our ability to address sustainability risks and strengthen the The company’s coastal ports transportation networks
storage facilities and other infrastructure may face risks
resilience of our corporate strategy supporting our journey of seawater erosion or flooding leading to transportation
towards sustainable development. disruptions and logistics blockages increasing the cost
of facility repairs and replacements. Assets or real estate
projects in the company’s coastal regions may be at risk of
value depreciation. Rising sea levels could damage critical
transportation and logistics routes impacting the import of
raw materials and the export of products resulting in supply
chain disruptions or delays.● Physical Risks Loss of Biodiversity and Habitat Displacement
The degradation of marine coastal and terrestrial
ecosystems extinction of species and the reduction or
irreversible loss of ecosystems and their services including
We have selected the very low GHG emissions scenario (SSP1-1.9) and the very high GHG emissions scenario (SSP5-8.5) from
freshwater terrestrial and marine ecosystems.the five scenarios under the IPCC's Shared Socioeconomic Pathways (SSP) to conduct Short term Medium term and Long term
Extreme High and Low Temperatures
identification and assessment of climate-related risks affecting our supply chain operations and real estate business. In high-temperature environments employees face health
risks such as heatstroke or other heat-related issues which
may lead to workplace injuries sick leave or absenteeism
According to the IPCC's sixth assessment report compared to 1850-1900 global surface temperature averaged over 2081-2100 is i m pa ct i n g p ro d u ct i o n a n d w o r k e f f i c i e n c y. H i g h
very likely to be higher by 1.0° C to 1.8° C under the very low GHG emissions scenario considered (SSP1-1.9) by 2.1° C to 3.5° C in the temperatures may cause production equipment to overheat
leading to malfunctions or shutdowns affecting production
intermediate GHG emissions scenario (SSP2-4.5) and by 3.3° C to 5.7° C under the very high GHG emissions scenario (SSP5-8.5).The efficiency and causing delivery delays. Additionally hot
last time global surface temperature was sustained at or above 2.5° C higher than 1850-1900 was over 3 million years ago (medium weather may increase the demand for air conditioning
and cooling equipment raising energy consumption and
confidence). operational costs.Droughts Leading to Water Scarcity
Relative to 1995-2014 the likely global mean sea level rise by 2100 is 0.28-0.55 m under the very low GHG emissions scenario (SSP1- Droughts may result in insufficient water supply for
1.9); 0.32-0.62 m under the low GHG emissions scenario (SSP1-2.6); 0.44-0.76 m under the intermediate GHG emissions scenario production and daily operations. To mitigate the impact
of water scarcity and drought on business operations
(SSP2-4.5); and 0.63-1.01 m under the very high GHG emissions scenario (SSP5-8.5). additional funds may be required to secure water resources
such as building water treatment facilities thereby
increasing operational costs for the company.Extreme Low Impact Low Impact Medium Impact High Impact Extreme High Impact
33 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 36
Physical Risk Management
Physical Risks Impact Period Mitigation Plan
● Transition Risks
Typhoons and Floods
Typhoons bring strong winds heavy rainfall and
Regularly inspect and reinforce facilities at office locations and
storm surges while floods cause waterlogging
projects and ensure adequate property insurance is in place to
disasters which may damage buildings equipment With reference to the IEA’s scenario model we selected the Net Zero Emissions by 2050 (NZE) Scenario where the global energy
address potential disasters. Develop emergency response plans
and inventory or even destroy factories and
strengthen meteorological early warning systems and stockpile related CO2 emissions are expected to reach net zero by 2050 offering the world a chance to limit the global temperature rise
warehouses affecting production and storage.Short-term emergency supplies. Enhance employee disaster prevention training
These events could lead to injuries or entrapment to within 1.5℃ . We also choose the Stated Policies Scenario (STEPS) which considers only specific policies already enacted or
Medium-term and organize emergency drills for typhoon and flood prevention to
of employees and surrounding residents and may
and Long-term ensure a quick response. Prior to the arrival of typhoons or heavy rain
even trigger secondary disasters such as landslides announced by governments and annual CO2 emissions from energy-related and industrial processes are projected to increase from
communicate with suppliers and logistics companies to ensure they
and mudslides. Additionally they may cause traffic
are informed of the situation and are properly prepared. Preemptively 34 gigatons in 2020 to 36 gigatons in 2030 and remain at approximately the same level until 2050. If emissions continue along this
congestion road collapses port closures and
stock necessary production materials and raw materials to mitigate
shipping disruptions leading to interruptions in trajectory and non-energy-related greenhouse gas emissions follow a similar trend the global temperature is estimated to rise by
potential supply chain disruptions.logistics and supply chains resulting in insufficient
raw material supply or delays in product delivery. around 2.7℃ by 2100 (with a 50% probability). By 2050 the share of renewable energy in global electricity generation is projected
to approach 55%. Over the period from 2020 to 2050 global coal consumption is expected to decrease by 15% oil consumption
Sea Level Rise
The company’s coastal ports transportation Conduct a comprehensive assessment of the risks associated with sea to increase by 15% and natural gas consumption to increase by nearly 50%. We conducted short-term medium-term and long-
networks storage facilities and other infrastructure level rise in the regions where we operate and carefully evaluate new
may face risks of seawater erosion or flooding leading investments or constructions in low-lying areas or regions vulnerable to term identification and assessment of the transition risks in our supply chain operations and real estate business and formulated
to transportation disruptions and logistics blockages the impact of sea level rise. For existing facilities implement protective corresponding measures to enhance the company's ability for sustainable development.increasing the cost of facility repairs and replacements. Medium-term measures such as reinforcing embankments building flood gates
Assets or real estate projects in the company’s coastal and Long-term and upgrading drainage systems to enhance their resilience to floods
regions may be at risk of value depreciation. Rising seawater backflow and other disasters. Regularly inspect and maintain
sea levels could damage critical transportation and these facilities to ensure their proper operation. Establish a diversified
logistics routes impacting the import of raw materials supply chain to reduce reliance on a single supplier or transportation
and the export of products resulting in supply chain route thereby mitigating supply chain risks caused by sea level rise. Transition Risks Impact Period Mitigation Plan
disruptions or delays.Loss of Biodiversity and Habitat Displacement
Continuously conduct environmental assessments to
The degradation of marine coastal and terrestrial · Adhere to professional management strategy improve the construction and
comprehensively identify and reduce the negative impact of business
ecosystems extinction of species and the reduction Medium-term management of professional groups and business divisions and promote the specialized
operations on ecosystems. Advocate for biodiversity conservation
or irreversible loss of ecosystems and their services and Long-term development of subsidiary companies. Support the expansion of core businesses through
actions and actively participate in and support ecological and
including freshwater terrestrial and marine resource allocation management mechanisms and industrial investment to consolidate
environmental protection efforts in the regions where we operate.ecosystems. market position enhance industry standing and strengthen core competitiveness.· Accelerate the "go global" strategy leveraging the domestic and international dual-
Extreme High and Low Temperatures circulation development model. Continue to deepen market penetration in dominant
In high-temperature environments employees
Develop emergency plans for extreme weather conditions provide domestic regions such as East China and South China while actively expanding into
face health risks such as heatstroke or other heat-
necessary heatstroke prevention or cold protection supplies and central and western China. Internationally integrate into RCEP signatory countries
related issues which may lead to workplace injuries Short-term Medium-
arrange work schedules reasonably to avoid outdoor work during Geopolitical Conflict establish local teams and channels and build a global supply chain system.sick leave or absenteeism impacting production term and Long-term
Short-term extreme high or low-temperature periods. Regularly maintain and
and work efficiency. High temperatures may cause · Strengthen the empowerment of technology and finance accelerate the application
Medium-term inspect key equipment to ensure it operates normally under extreme
production equipment to overheat leading to of digital technology and achieve online digital mobile and visualized supply chain
and Long-term weather conditions and explore the use of more weather-resistant
malfunctions or shutdowns affecting production operations. Explore various financing channels optimize the financing structure utilize
equipment and technologies. Implement natural ventilation and
efficiency and causing delivery delays. Additionally various financial products and tools hedge exchange rate risks reduce financing costs
shading measures to reduce air conditioning load lowering energy
hot weather may increase the demand for air and improve profitability.consumption and operational costs.conditioning and cooling equipment raising energy · Secure investment support based on professional operations seek cooperation
consumption and operational costs. opportunities with industry-leading companies and extend the core business layout to
upstream and downstream industries. Through resource sharing continuously enhance
Implement efficient water resource management optimize water the competitiveness of core businesses.usage structure and reduce reliance on external water resources.Droughts Leading to Water Scarcity Improve water use efficiency by implementing water-saving
Droughts may result in insufficient water supply for technologies strengthening water recycling and establishing
production and daily operations. To mitigate the rainwater harvesting systems. Regularly assess water resource Macroeconomic
Short-term · Closely monitor the macroeconomic situation and track industry regulatory trends
impact of water scarcity and drought on business risks reserve backup water sources and improve emergency plans. Policy Adjustment
Medium-term align with macro-control policy directions and formulate responsive measures in a timely
operations additional funds may be required to Conduct regular awareness campaigns and training for employees on
and Long-term Short-term Medium- manner based on policy changes. In the land acquisition process carefully consider secure water resources such as building water water conservation to enhance their water-saving awareness. When
treatment facilities thereby increasing operational making project site selections and investment decisions prioritize term and Long-term
policy risks and reserve sufficient safety margins.costs for the company. avoiding water resource protection areas and collaborate with · Progressly improve operational efficiency balance growth speed with development
governments communities and other stakeholders to participate in quality enhance the quality of products and services and establish a diversified real
water resource protection and management efforts. estate-related business portfolio to cope with external uncertainties.
35 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 38
Transition Risks Impact Period Mitigation Plan GHG Emissions Management
· Vigorously research and innovate digital technology applications and continue to In accordance with the ISO 14064-1:2018 standard we conducted the 2024 greenhouse gas (GHG) inventory for entities within our consolidation
develop supply chain digitalization scenarios. Integrate digital solutions with traditional
industry development to empower traditional industries to achieve green transformation scope using the operational control approach. In 2024 our total GHG emissions (Scope 1 and Scope 2) reached 1488601 tCO2e an increase of
and reduce energy and resource consumption. Promote energy-saving cost-reduction 514882 tCO2e compared to 2023. This rise was primarily due to due to the increased production of our manufacturing subsidiaries during the
quality improvement and efficiency enhancement across the entire industry chain and
continuously improve the service competitiveness and sustainable development reporting period.capability of products.·Explore the development and design of green materials through research and innovation GHG Emissions in 2024
in green environmental protection technologies provide environmentally friendly
Energy Technology Short-term Medium-
solutions for footwear and bag products and empower the green development of
Transformation term and Long-term
upstream and downstream enterprises.·The innovatively designed fourth-generation residential buildings integrate green Category 2024 2023 2022
ecological concepts into urban architecture achieving harmonious development
between buildings and the environment.· Expand into the new energy business and market by collaborating to build and operate Scope 1: Direct Emissions（tCO2e） 504071 434139 285727
photovoltaic power stations in multiple regions of China promoting new energy
government vehicle businesses and continuously deepening the photovoltaic energy
storage and new energy vehicle industry chain. Keep exploring overseas markets and Scope 2: Indirect Emissions （tCO2e） 984530 539580 220443
accelerating integration into the global new energy value chain.Total（tCO2e） 1488601 973719 506170
Carbon Emission Intensity (tCO2e/
Implement corresponding management measures for different products and businesses hundred-million RMB of operating 212 128 61
·For agency business and locked-in customer transactions mitigate certain risks during revenue)
the contract stage by selecting high-quality customers and collecting deposits. After
the business commences manage risks through price adjustments and other risk control
measures.Market Price Short-term Medium-
·For self-operated business control unilateral exposure and use floating pricing and index GHG Emissions
Fluctuations term and Long-term
pricing settlement methods. Additionally hedge unilateral exposure price risks through
reasonable futures hedging or options protection. Scope 1（tCO2e） Scope 2（tCO2e) Carbon Emission Intensity (tCO2e/hundred-million RMB of operating revenue)·Closely monitor market prices of relevant products and changes in external conditions
urging the company to accelerate turnover and reduce price risks through real-time price 250
monitoring.
1600000
212
1200000200984530
·Leverage years of experience channel advantages and brand strength to establish a
multi-category supply chain services matrix creating competitive advantages with scale 1000000
and specialization. 150
· Actively respond to national policies accelerate the layout of the Belt and Road Initiative 128
and other international markets explore new models and business areas and continue 800000
to broaden the business scope and market reach. 539580 504071
·Reinforce the development of information technology to improve business operation 434139
Intensification 600000 61 100
Short-term Medium- efficiency.of Industry 285727
term and Long-term ·Enhance the added value of service solutions increase customer loyalty improve industry
Competition 220443
influence and strengthen overall business competitiveness. 400000
·Continue to optimize the real estate project portfolio deepen the presence in key existing 50
regions and steadily expand into high-potential cities. 200000
· Develop distinctive products reinforce brand characteristics and create benchmark
projects in key cities based on local conditions leveraging the value of "real estate+"
and other real estate-related commercial services to enhance differentiated competitive 0
advantages. 2022 2023 2024
37 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 40
● Organizational Boundary of GHG Inventory for 2024 ● GHG Categories ● Emission Factor
Seven types of greenhouse gases incuding carbon dioxide For different emission sources under Scope 1 and Scope 2
Xiamen C&D Inc. (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons we select appropriate emission factors for GHG emissions
(HFCs) perfluorocarbons (PFCs) sulfur hexafluoride (SF6) calculation based on the 2006 IPCC Guidelines for National
and nitrogen trifluoride (NF3). Greenhouse Gas Inventories the General Rules for Calculation
Functional Supply Chain Real Estate of the Comprehensive Energy Consumption (GB/T 2589-
Management Department Operations Segment Operations Segment
2020) and the latest electricity emission factor released by the
Ministry of Ecology and Environment.Seven Major Specialized Groups and C&D Real Lianfa Group
Emerging Business Division Estate Corp. Ltd. Co.Ltd MACALLINE
GHG Emission Reduction
Actions
Through initiatives of developing green and low-carbon products
advancing low-carbon development across the value chain promoting
● Operational Boundary of GHG Inventory for 2024 the use of clean and low-carbon energy facilitating the recycling of
resources investing in green low-carbon and eco-friendly industries
Our GHG inventory consolidation scope for 2024 includes Scope 1 direct emissions and Scope 2 indirect emissions. and implementing green and low-carbon actions we drive the low-
carbon transition of traditional industries while reducing greenhouse gas
GHG Category Definition Primary GHG Emission Sources emissions from our own operations to support the green development
of the industrial value chain.·Natural gas boilers
Direct GHG emissions refer to emissions generated by
·Gasoline-powered company vehicles
the organization itself including those from fossil fuel
·Diesel-powered company vehicles
Scope 1 combustion and industrial processes. These emissions
·Air conditioner
are categorized into stationary combustion mobile
·Fire extinguishers Developing Green and Low-
combustion process emissions and fugitive emissions.carbon Products
Indirect GHG emissions result from the consumption of We are committed to the ongoing exploration of the design and
purchased electricity heat and other energy sources. This ·Purchased electricity
Scope 2
includes emissions associated with externally sourced ·Purchased thermal energy development of green products including green materials and green
power and steam. buildings in our supply chain operations and real estate business
applying green principles to promote the sustainable development of
human living environments.
39 Xiamen C&D Inc. 2024 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 42
● Green Pulp and Paper ● Green Materials
We uphold a pure and eco-friendly philosophy in our "Choice industrial technology development projects.These advanced To address greenhouse gas emissions in traditional textile production we actively explore and utilize green materials such as
of Purity" natural bamboo pulp paper. Made from Bambusa pulping technologies support product quality where our recycled polyester recycled cotton plant-based fibers biodegradable bio-based materials and carbon-negative materials. We aim
emeiensis fiber sourced from Muchuan bamboo forests it flagship products with high-end bamboo pulp boards offer to provide sustainable solutions for the apparel and textile industry.contains no added fluorescents bleaching agents microbial high strength excellent breathability strong absorbency
colonies or harmful additives. The production process and notable antibacterial properties. They are free of toxic We incorporate eco-friendly materials like SORONA CELYS and PrimaLoft Bio into our product designs integrating green
generates only 50% of the COD emissions compared to elements making them suitable for household and premium materials eco-friendly dyeing and sustainable processes to bring our environmental commitment to life. Additionally we rigorously
traditional white paper. The product has obtained international paper production.Compared to wood pulp paper bamboo select suppliers based on four key criteria of product recycling chain of custody social and environmental practices and chemical
food-grade compliance including the certification from the pulp paper saves one ton of steam per ton of production. The restrictions to meet diverse market demands and certification standards. We also offer certification support including GRS GOTS
U.S. FDA and the EU AP. energy consumption per ton of "Choice of Purity" bamboo OEKO-TEX BCI and RCS contributing to the sustainable development of the textile industry.pulp paper is about 300 kg of standard coal approximately
350 kg lower than the national clean production standard.
Additionally bamboo pulp waste is repurposed as fertilizer for
mushroom cultivation contributing to local economic growth
while protecting the environment.Since we started production the bamboo pulp capacity of the
pulp factory we invested in has reached a total of 3.12 million
tons contributing to an increase in the forest coverage rate in
Muchuan County from 13.8% to 78.8% significantly boosting
local economic development and ecological protection.Contributed to an increase in the forest
coverage rate in Muchuan County
From a production process perspective bamboo pulp
technology is more environmentally friendly than traditional % %
chemical pulping methods. The "Choice of Purity" bamboo 13.8 78.8
pulp paper production line adopts advanced international The bamboo pulp capacity of the pulp factory we
technologies such as DDS cooking and enclosed screening. invested in has reached a total of
The deep delignification cooking and related clean
technologies for bamboo pulping have been included in the 3.12 million tons
National Development and Reform Commission’s major
41 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 44
Highlight U.S. LEED-CS Gold Certification Awarded to the Building Project
● Green Buildings
We adhere to national and industry standards for green buildings including In 2024
Assessement Standard for Green Building (GB/T 50378-2019) Thermal Design Code for
Civil Building (GB 50176-2016) Design Standard for Energy Efficiency of Public Buildings The company added 12 newly
(GB 50189-2015) and Code for Green Design of Civil Buildings (JGJ/T 229-2010). We completed green building projects
including 1 two-star green building
implement strict green environmental management throughout the entire lifecycle
project 8 one-star green building
of our buildings from design to operation. We continuously promote green building projects and 3 basic-level green
design sponge city concepts prefabricated construction techniques BIM technology building projects.and ultra-low energy buildings to enhance project quality and construction efficiency.By maximizing resource conservation we strive to create safe comfortable and low-
● U.S. LEED- CS Gold Certification
carbon buildings fostering harmonious coexistence between architecture and nature.The Project of Xiamen Bank Quanzhou Branch Building
·Establand strictly enforce property security provisions.·Optimize the service life of materials and equipment to enhance product quality. developed by Lianfa Group is the first project in Fujian Province
1.LEED short for Leadership in Energy and Environmental Design is a
Safety and Durability to receive a Green Building Label Certification since the "green building rating system" established and promoted by the U.S. Green
implementation of China's new green building regulations. Building Council. It provides third-party certification for buildings and
communities. LEED certification is categorized into four levels: Certified
The project has successfully obtained the U.S. LEED-CS Gold Silver Gold and Platinum with Platinum representing the highest level of
·Prioritize the application of "green products" and "green building materials" as key management indicators. green building achievement.Certification.·Emphasize indoor air quality by monitoring pollutants such as "respirable particulate matter."
·Use soundproof glass to reduce noise and maintain a low-decibel indoor environment for enhanced comfort.Health and Comfort ·Leverage "sponge city" technologies to optimize the use of underground space and improve overall comfort.·Increase the proportion of deciduous trees to enhance "light comfort."
·Incorporate gentle slopes to create barrier-free pathways enhancing accessibility for the elderly children
and individuals with disabilities.Living Convenience ·Thoughtfully arrange public facilities such as fitness areas and children's play spaces.·Adopt sensor-based lighting to extend the lifespan of lighting fixtures conserve energy and reduce emissions.·Enhance building energy efficiency through optimized design the use of clean energy high-performance
insulation materials energy-efficient equipment and energy consumption monitoring systems.·Implement a rainwater recycling system to replace tap water for landscaping irrigation and road sprinkling.Resource Efficiency ·Select industrialized interior components and apply BIM technology to improve construction efficiency and
reduce costs.·Utilize sponge facilities such as sunken green spaces and rain gardens to control site runoff reduce the
burden on stormwater drainage systems block surface pollutant sources and mitigate the urban heat
island effect.·Simulate and analyze outdoor wind environments to optimize the overall site layout and landscape
Enhanced Livability
design enhancing both indoor and outdoor comfort. ● Xiamen Bank Quanzhou Branch Building
43 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 46
Highlight Ultra-low and Nearly Zero-Energy Buildings Highlight The"Habitat Scroll of Honour Award" Granted to the Affordable Housing Project
We promote the construction of ultra-low energy buildings. We effectively reduce In 2024 the Affordable Housing Project in Yangtang Residential District of Xiamen
Affordable Housing Project in
energy consumption by implementing measures such as the application of energy- developed by our subsidiary C&D Real Estate was awarded the "China Habitat Yangtang Residential District of
efficient elevator control systems and energy consumption monitoring systems Scroll of Honour Award" by the Ministry of Housing and Urban-Rural Development Xiamen was
the optimization of lighting layouts the use of energy-saving self-extinguishing becoming the only affordable housing project in the country to receive this honor. As awarded the "China Habitat
switches and the utilization of solar energy. We ensure a comfortable indoor the largest affordable housing project in Fujian Province the project follows the Two- Scroll of Honour Award"
by the Ministry of Housing and
environment and fulfill the basic requirements of green buildings achieving the Star Standard of China Green Buildings. It focuses on water conservation energy saving Urban-Rural Development
construction of ultra-low and nearly zero-energy buildings. and environmental protection utilizes innovative measures such as sponge city design
photovoltaic and light guide systems and smart waste treatment facilities to reduce
In 2024 We launched 8 projects of ultra-low and nearly zero-energy
energy consumption and improve residents' quality of life.buildings in cities such as Beijing and Shanghai. Among them:
·The Beijing Guanyun Project in Beijing has a total energy consumption of
approximately 6329 kWh/(unit·a) with a carbon emission intensity of about 17
kgCO2e/(m2·a) which is more than 60% lower than the current national energy-
saving standards.·The Wangjing Yangyun Project in Beijing is expected to save 2.47 million kWh of
electricity annually and reduce greenhouse gas emissions by approximately 1325
tCO2e per year achieving an energy-saving of about 90% compared to conventional
residential projects.·The Guantangfu Kindergarten Project in Beijing is expected to save 130000 kWh ● The Wangjing Yangyun Project in Beijing
of electricity annually and reduce greenhouse gas emissions by approximately 70
tCO2e per year achieving an energy-saving of about 60% compared to conventional
kindergarten projects.● Affordable Housing Project in Xiamen Yangtang Residential Area
Digital technologies reduce carbon emissions by improving resource utilization efficiency
Advancing lowering pollution emissions and promoting green consumption. These technologies
Low-Carbon are essential clean solutions for achieving carbon peak and carbon neutrality goals and
Development Across for driving sustainable economic and social development. Through active research and
the Value Chain innovation in digital technology applications we continue to deepen the development
and innovation of supply chain digitalization and integrate digital solutions with the
development of traditional industries. We integrate the supply chain resources continuously
drive the "greening and renewal" transformation and upgrading of traditional industries
accelerate the development of new production capacities and jointly promote the green
● The Beijing Guanyun Project in Beijing
low-carbon development of the industrial value chain ecosystem.
45 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 48
Highlight Pulp and Paper Industrial Internet Platform Highlight C&D Esteellink
The pulp and paper industry chain includes upstream international pulp mills In 2024 Based on the high-quality supply chain service demands of upstream and downstream
midstream paper mills and downstream printing and packaging factories with tens ecological partners in the steel industry we developed the "C&D Esteellink" platform
Pulp and paper industry internet platform was
of thousands of enterprises involved. Leveraging our innovative "LIFT Supply Chain selected as one of the by aggregating high-quality resources from various links in the steel industry chain. The
Service" system we have developed a leading internet platform for the pulp and "Outstanding Cases of Data Elements "C&D Esteellink" built on the "LIFT Supply Chain Service" incorporates four service
Application 2024"
paper industry with core products including "E-Pulp" and "PaperSource." Through by the Fujian Provincial Data Administration elements of "logistics" "information" "finance" and "business" to create a full-link supply
technologies such as artificial intelligence blockchain cloud computing and big Bureau chain loop from "production-transportation-warehousing-transaction." The platform
data we offer comprehensive digital solutions centered around information storage provides steel industry clients with online contract services logistics tracking self-service
The "Top 10 Digitalization Benchmark Cases of
and transportation finance and risk control. This has enabled efficient online-offline pick-up intelligent settlement and reconciliation and other supply chain operations
Central State-owned Enterprises 2024"
interaction and resource coordination addressing traditional challenges in the pulp in the 3rd China International Software services. It satisfies the needs under diverse industry business scenarios improves clients'
Development Conference CIO Forum
and paper industry such as high costs storage and transportation difficulties and operational efficiency and experience and helps upstream and downstream clients in the
capital shortages. We have facilitated the transformation and upgrading of both steel industry enhance quality and efficiency.upstream and downstream industries by providing customers with comprehensive Listed among the In 2024
high-quality and customized supply chain services achieving cost reduction and "Top 100 Chinese Industry Digitalization List"
at the 11th Industrial Digitalization Conference The "C&D Esteellink" platform ranked third in the "Top 100 Chinese Industry Digitalization List"
efficiency improvement. and
at the 11th Industrial Digitalization Conference
The "7th Digital Transformation and Innovation
Awards 2024"
In 2025 our "E-Pulp" and "PaperSource" will integrate with the DeepSeek. Leveraging Received the Digital Innovation Examplary Case
DeepSeek’s technological advantages we will introduce a range of AI-driven intelligent Award.services assist customers in the pulp and paper industry in enhancing decision-making
efficiency optimizing procurement processes and breaking down information barriers. This
will inject intelligent power into the pulp and paper industry chain and collaboratively build
Highlight "EasyAgri" Customer Service Platform Highlight "EasyInput"Intelligent Applications
an efficient smart and interconnected new ecosystem for the industry.We independently developed the "EasyAgri" platform leveraging To address the pain points in data and document recognition and
cutting-edge digital technology to establish an online trading bridge review within the supply chain industry we have introduced advanced
that breaks down information barriers and streamlines the transaction AI technologies such as OCR NLP and RPA and independently
process. Its intuitive and transparent interface enhances clarity in developed the intelligent applications such as the "EasyInput"
every transaction step and significantly improves the efficiency of intelligent document entry system and the "EasyReview" intelligent
agricultural product trading. The platform innovatively incorporates document review system. The "EasyInput" replaces manual
cloud-based evidence preservation technology enabling paperless repetitive and rule-based traditional work modes with automation
contract signing as well as fully digitalized processes for pickup and intelligence streamlining the document approval process. It
authorization receipt confirmation and other transaction flows. This significantly improves the efficiency of supply chain document entry
not only enhances efficiency and sustainability but also ensures data and enhances the quality and efficiency of supply chain operations.security and tamper-proof transaction records.● The Business Ecosystem of "E-Pulp" and "PaperSource"
47 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 50
Highlight "E-Settlement" Platform Highlight Deployment of Distributed Solar Power Stations
建发汽车“无忧结算”平台
The "E-Settlement" platform developed by C&D Automobile is a financial settlement platform In 2024 C&D Clean Energy has installed distributed solar power stations on the rooftops of various facilities including the C&D Shanghai Logistics Center
based on innovative financial management concepts. The platform integrates mobile smart C&D Gaoqi Logistics Center Xiamen C&D OnePark Xiamen C&D International Automobile City and the Quanzhou Jaguar Land Rover 4S Store.terminals business systems financial systems and accounting systems realizing full-process This initiative actively promotes the use of clean energy and reduces greenhouse gas emissions.automation from mobile terminals to the generation of accounting vouchers in the financial The "E-Settlement" platform was
selected for
system. It significantly enhances the efficiency and accuracy of financial management. In 2024
The 7th Digital Transformation and
the "E-Settlement" platform was selected for the 7th Digital Transformation and Innovation Innovation Awards
Received the D-Awards for the
Awards and received the D-Awards for the automotive industry as well as being recognized as
automotive industry
a "IDC China Digital Transformation Pioneer 2024." Recognized as a "IDC China Digital
Transformation Pioneer 2024."
● D-AWARDS for Automotive Industry
● Solar Power Station in Xiamen C&D OnePark
● IDC China Digital Transformation Pioneer
The application of clean and low-carbon energy is a key global trend in energy transition which aims to
Promoting reduce greenhouse gas emissions and drive sustainable economic and social development. We promote
the Use of the adoption of clean and low-carbon energy to reduce reliance on fossil fuels and significantly lower
Clean and greenhouse gas emissions.Low-Carbon
As a representative of clean energy source solar power is gaining momentum worldwide due to its
Energy renewable nature zero carbon emissions and low operational costs. With continuous technological
advancements and an increasingly mature industry chain solar power generation is becoming more
efficient while electricity costs continue to decline making it one of the most competitive new energy
sources. Solar energy is widely applied in ground-mounted power stations distributed rooftop systems
agrivoltaics and floating solar farms while also integrating into industries such as manufacturing
transportation and construction playing a crucial role in energy transition. To further expand the use
of clean and low-carbon energy we are actively incorporating solar energy into our operations and
continuously increasing the share of renewable energy in our energy mix. ● Solar Power Station in Xiamen C&D Logistics Center
49 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 52
The Phase I project is The C&D Logistics Industrial Park invested and constructed by our company is located within the China Highlight Photovoltaic Power Station and Charging Pile Project at Xiamen National Accounting Institute
expected to generate
an annual output of (Shanghai) Pilot Free Trade Zone. The Phase I project a 1MW distributed rooftop solar power system adopts
approximately a "self-consumption with surplus power fed into the grid" model. The generated electricity will primarily be
1.11million kWh used to fulfill the daily operational needs of C&D Logistics (Shanghai) Co. Ltd. with a nearly 100% consumption In 2024 the "Photovoltaic Power Station and Charging Pile Integration Project at Xiamen National After commissioning the project is expected to generate an average
rate. After being connected to the 400V distribution system through a 380V low-voltage interface the Phase I Accounting Institute" invested by C&D Emerging Energy was officially connected to the grid. The annual output of
Reducing greenhouse gas project is expected to generate an annual output of approximately 1.11 million kWh saving 136 tons of standard photovoltaic power station consists of 586 high-efficiency monocrystalline silicon modules (580W
emissions by abou kWh
coal and reducing greenhouse gas emissions by about 596 tCO2e annually. The Phase II project utilizes the each) and 3 sets of 125KW inverters connected to the academy's distribution system via a 380V
380000
596tCO2e annually BAPV installation method seamlessly integrating the solar power system with the building's rooftop. Once low-voltage connection. The charging pile is equipped with 4 dual-gun charging piles capable of reducing carbon dioxide emissions
operational Phase II is projected to generate an annual output of approximately 1.89 million kWh equivalent to simultaneously providing charging services for 8 electric vehicles. The photovoltaic power station by about
saving 232 tons of standard coal and reducing greenhouse gas emissions by about 1014 tCO2e per year. operates in a "self-consumption and surplus power fed to the grid" mode with a design life of
The Phase II project is expected
to generate an annual output of 25 years. After commissioning the project is expected to generate an average annual output of 204tCO2e annually
approximately 380000 kWh saving approximately 47 tons of standard coal annually and reducing carbon dioxide
1.89million kWh emissions by about 204 CO2e each year.
Reducing greenhouse gas
emissions by about
1014tCO2e annually
● Phase I Solar Power Station in Shanghai C&D Logistics Center
We strongly support the national "dual carbon" and "dual reduction" policies incorporating ● Photovoltaic Power Station and Charging Pile Project at Xiamen National Accounting Institute
Investing in Green clean technology development into our core strategy. We continue to focus on investment in
Low-Carbon the green low-carbon and environmentally-friendly industries actively connect resources
and Eco-friendly across the upstream and downstream of the industrial chain and provide full-cycle supply chain
service solutions for our industrial clients. We continuously innovate and make changes in areas
Industries such as photovoltaic power station development energy storage business expansion and new
energy vehicle sales explore new models for deeper international supply chain cooperation and
exchange and promote the high-quality and sustainable development of our business.● Positioning in the Photovoltaic Industry ● Investing in Biodiesel Projects
Biodiesel is a "green energy" source with characteristics such as excellent environmental performance good engine start-up
Our subsidiaries C&D Clean Energy C&D Emerging Energy and C&D Hitek operate across three major sectors of global product
capability superior fuel properties wide availability of raw materials and renewability. In 2024 our subsidiary C&D Commodities
marketing project development and investment and clean energy supply chain and industry chain management. These companies
joined in the investment and establishment of a biodiesel joint venture. The joint venture plans to invest in and construct a second-
continue to develop and construct distributed photovoltaic (PV) power stations for industrial and commercial use. As of the end
generation biodiesel processing plant.of 2024 we have invested in PV power station projects (including completed and approved projects) with a total installed capacity
exceeding 50MW and an investment amount of over 190 million RMB.
51 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 54
● Facilitating Green and Smart Transportation ● Green Operations
In 2024 we partnered with Farizon to engage in strategic cooperation across multiple areas including the promotion of new In our operational management we advocate for the use of eco-friendly energy-efficient equipment facilities and
energy commercial vehicles green and low-carbon smart logistics services energy supply automotive supply chain and financing materials to minimize unnecessary resource consumption. We also actively implement green procurement policies to
leasing. Together we are working to construct the demonstration project of "Green and Net Zero Emissions Smart and Digital drive our industry partners toward a collective low-carbon transformation.Transportations." The project focuses on promoting the use of new energy and methanol-hydrogen commercial vehicles in
scenarios such as steel mills power plants mines and medium-to-short-distance transportation supporting the green and low-
carbon transformation of the logistics and transportation industries. Additionallywe will collaborate on energy supply initiatives
including charging and swapping equipment methanol production and refueling working together to drive the research and
application of new energy technologies. Highlight Strengthening Energy Efficiency Management
C&D Property enhances energy efficiency management In 2024
by issuing dedicated energy-saving orders through its
Property Management System (PMS) to track the full
● Promoting Residential Energy Storage Products implementation of energy-saving measures across projects. C&D Property issued a total of Achieved a completion rate of
In 2024 C&D Property issued a total of 248 energy-saving 248energy-saving orders 96%
In 2024 MACALLINE established the Red Star Macalline Green Energy (Shanghai) Technology Co. Ltd. with a business scope orders and achieved a completion rate of 96%. Additionally
covering R&D technologies on low-carbon emission reduction energy storage technology services and battery manufacturing the company integrated energy efficiency targets into the
aiming to promote and popularize residential energy storage products through technological innovation. Green Energy (Shanghai) quarterly assessments of business units to reinforce energy
Technology plans to develop energy storage systems suitable for households aiming to reduce the peak-to-valley difference in performance management and drive the achievement of
household electricity consumption optimize energy utilization efficiency and reduce dependence on the traditional power grid energy-saving and consumption-reduction goals.thereby providing low-carbon transformation solutions for energy management in future smart homes.Implementing Green
and Low-Carbon
Actions
We advocate for a minimalist green low-
carbon and healthy approach to operations and
consumption fostering employee awareness
of resource conservation and environmental
protection. We are committed to implementing
green operations green office practices and
sustainable transport initiatives. ● Energy Consumption Management Platform of C&D Property
53 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 56
Highlight Energy-Efficient Starry Ceiling of Underground Garage
In 2024 C&D Property implemented an energy-efficient retrofit for the
·Posting energy-saving reminders in public areas to encourage employees to turn off power before getting off work.starry ceiling lighting systems in underground parking areas across its
·Installing smart motion-sensing switches in stairwells restrooms and other public areas to automatically turn off lights when
managed projects. The retrofit covered 435 points across 12 projects unoccupied eliminating unnecessary energy use.by optimizing the lighting system with voltage regulators and sensor ·Reducing the number of lights used in office when natural daylight is sufficient to minimize energy consumption.devices achieving an approximate energy-saving rate of 30% per ·Prioritizing the use of fans over air conditioning during weekend overtime and strictly controlling the extension requests for air conditioning.point. This initiative effectively reduces energy consumption while
maintaining lighting quality.In our real estate projects
Achieving an approximate energy-saving rate of In managing energy conservation and emission reduction in our real estate projects we strictly control energy
30% per point consumption and advocate for the use of energy-efficient equipment. Our key energy-saving and consumption-reduction
practices include:
● Energy-Efficient Starry Ceiling of Underground Garage
·Maximizing the use of natural site conditions when designing the layout of temporary office and living facilities to ensure optimal
orientation spacing and window-to-wall ratios. Utilizing insulated composite steel panel walls insulated roofs and well-sealed
Highlight Application of Green Building Materials thermally insulated doors and windows for temporary facilities to minimize energy waste.·Using energy-saving lighting as much as possible in construction sites office areas and living areas with all indoor and outdoor lighting
fixtures being energy-efficient.We select building materials in compliance with national and regional environmental regulations and health safety standards prioritizing the
·Setting specific on and off schedules for tower crane floodlights office and living area lighting and adjusting switch times according to
procurement of locally sourced high-performance recyclable easily recoverable and low-embodied-carbon green building materials. We
seasonal needs to reduce electricity consumption.promote the use of environmentally friendly materials such as bamboo charcoal fiber boards foamed ceramics triple-pane and two-chamber ·Establishing a lighting operation maintenance and management system analyzing electricity usage through power consumption
insulated glass natural gypsum-based self-leveling flooring gypsum plaster mortar and Lafarge window sealing materials. Additionally we records and continuously improving energy-saving rates. The automatic on/off times for light strips and other lighting sources in public
continuously explore the feasibility of replacing traditional high-carbon building materials with low-carbon alternatives. Furthermore we office areas are shortened to minimize energy consumption.continuously refine supplier evaluation standards give preference to suppliers that have obtained green building material product certifications ·Strictly controlling air conditioning usage ensuring that indoor office temperatures are set no lower than 26° C in summer and no higher
and collaborate with our suppliers to build a green value chain creating safe healthy eco-friendly and comfortable living spaces for our users. than 20° C in winter.·Placing visible energy-saving reminders near power sources to encourage employees to develop energy-saving habits.
3. The Green Building Material Product Certification is a nationally implemented classification system for green building materials established in accordance with policy documents such ·Using solar energy as the primary source of hot water for showers in construction site dormitory with electricity as a backup to reduce
as the Implementation Plan for Green Building Material Product Certification and the Notice on Accelerating the Promotion of Green Building Material Product Certification and Production
Application issued by the State Administration for Market Regulation the Ministry of Housing and Urban-Rural Development and the Ministry of Industry and Information Technology. energy consumption.·Establishing maintenance repair and inspection systems for construction machinery and equipment optimizing workflow scheduling
to enhance machine utilization and maximize load efficiency.● Green Office Practices
We fully implement a digital office system providing online services for administrative management human resources
financial management and business applications. We enhance operational efficiency and foster collaboration to create
a paperless smart office environment. ● Sustainable Transport
In our office
We actively promote the video conferencing and remote work for daily communication and collaboration to reduce
We have established the "Xiamen C&D International Building Daily Safety Energy Saving and Environmental Hygiene Management greenhouse gas emissions from business travel. For official trips we encourage employees to carpool and advocate for
Measures" to enhance energy efficiency and sustainability in our office. Our Green Office Task Force conducts daily inspections to low-carbon travel.ensure the effective implementation of energy-saving measures. Our key office energy-saving practices include:
55 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 58
Energy Usage
In 2024 we primarily consumed the energy resource of coal and electricity which accounted for 78% of our total energy ● Energy Management Goals
consumption.The key enterprises for energy management Universal Pulp and Paper and Xiangguang Copper actively conduct energy
Energy Consumption in 2024 assessments and have set the comprehensive energy consumption reduction target for 2024.Total Energy Total Energy Total Energy Energy
Energy Type 2024 2023 2022 Consumption in Consumption in Consumption in Consumption
2024(tons of coal 2023(tons of coal 2022(tons of coal Proportion in Company Name 2024 Reduction Target for Comprehensive Energy Consumption Achievement Status
equivalent) equivalent) equivalent) 2024
Electricity Universal Pulp and Paper
Reduce total energy consumption by 2000 tons of coal equivalent Achieved
(kWh) 1720332433 947373073 259624703 211429 116432 31908.9 48.40
compared to 2023
Xiangguang Copper Reduce the comprehensive energy consumption of the sulfuric acid Coal 181876 166254 137412 129914 118755 98153 29.74 production process in smelting compared to 2023
Achieved
（t）
Natural Gas（m3） 52767011 39117790 105488 70180 52027 140 16.07
Steam
（t） 206977 16889 5861 19601 1599 555 4.49
Diesel
（L） 2143085 446758 494618 2686 560 620 0.61
● Energy Management Structure
Gasoline
（L） 1728416 701654 914023 1857 754 982 0.43
Liquefied
Petroleum Gas 667938 6560 1323280 1145 11 2269 0.26 To ensure effective energy management（kg） Universal Pulp and Paper has established an
Group Leader: General Manager
Energy Management Leadership Team led
Total 436812 290138 134627 100.00 by the company's General Manager as the Energy Management Deputy Group Leader: Manager
Leading Group
team leader with the Environmental Health of the Safety & Environmental Protection Department
and Safety Department Manager serving as
Group Members: Managers
the deputy leader. Department heads and Energy Management
Office and Heads of Various Departments
We recognize that efficient energy usage is a crucial element in managers are also members of the team.achieving our carbon peaking and net zero goals. We are committed The Energy Management Leadership Team Engineering Thermal Power
to implementing energy-saving transformations and optimizing oversees the Energy Management Office which Department Plant·Energy Structure
energy structures across all production and operational processes is located within the General Manager's office
actively advancing energy conservation and consumption and is responsible for organizing supervising Energy Energy Energy Energy
29.74% Management Statistics Management Statistics reduction efforts. In 2024 our subsidiaries Universal Pulp and inspecting and coordinating daily energy Personnel Personnel Personnel Personnel
Electricity
Paper and Xiangguang Copper have a relatively significant energy management activities. Each department and
Steam
consumption. To achieve energy savings and emission reductions workshop (section or office) has appointed Energy Energy
48.40% Natural Gas Metering and Metering and both factories have developed energy management systems an energy management officer. The Finance Data Collection Data Collection
Gasoline Personnel Personnel
0.26% including the "Energy Management System" "Energy Statistical Department has designated a specific person
Diesel
0.61% Analysis Management System" " Management Measures for Energy to handle energy statistics who conducts daily
Liquefied
0.43% Conservation" and "Assessment System for Target Management
energy consumption measurement statistics
16.07% ○ Energy Management Structure of Universal Pulp and Paper Petroleum Gas
of Energy Conservation" and strictly comply with environmental and analysis for each department.Coal laws and regulations in their operations. Currently both of these Xiangguang Copper has established an Energy Efficiency Leadership Team with an Energy Efficiency Office under its authority and
key energy management enterprises have obtained ISO 14001 responsible for executing the decisions of the leadership team and organizing various energy-saving management tasks.
4.49%
Environmental Management System certification and ISO 50001
Energy Management System certification.
57 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 60
Usage of Water Resources
● Energy Management Practices
We prioritize water resource management and strictly abide by the laws and regulations such as the Water Law of the People's
Universal Pulp and Paper places great emphasis on energy management and strives to achieve energy-saving goals
Republic of China the Energy Conservation Law of the People's Republic of China and the Law of the People's Republic of China on
through a comprehensive energy monitoring and management system. The main practices in energy management
Prevention and Control of Water Pollution. We strengthen water resource risk assessment and monitoring establish a water-saving
include:
leadership team and promote detailed water management practices.·Setting energy-saving targets and breaking them down into specific tasks for each workshop.·Signing energy-saving responsibility agreements to ensure the implementation of energy-saving tasks and effectively carry out energy Our water consumption mainly comes from the production activities at factories within our supply chain operations. Xiangguang
management work. Copper a key enterprise in our water resource management prepares an annual water usage plan tracks daily water intake usage
·Conducting daily statistics and monthly summary analyses of internal energy consumption and providing energy consumption and discharge and optimizes the allocation of surface water and reclaimed water to ensure a stable supply and reduce water resource
analysis reports. usage risks. Additionally Xiangguang Copper actively promotes technologies such as reclaimed water reuse magnetic flocculation
·Establishing an energy-saving reward and penalty system using regular inspections and random checks to evaluate the energy wastewater treatment and ultrafiltration concentrate water reuse to reduce fresh water consumption and improve recycling levels.management system. Issues found during inspections are penalized according to the system. A "Rationalized Suggestions" system
The company has established a graded wastewater treatment and reuse system using efficient wastewater treatment equipment to
is in place to reward employees who actively propose energy-saving ideas and plans based on their implementation results. A
recycle treated water for production minimizing water resource consumption.performance bonus system is also established to calculate the actual energy consumption costs of each department monthly
rewarding departments and employees who consume less energy than the company's limits.·Developing an energy management training plan covering energy-saving concepts technologies and statistical techniques.·Professional training is provided for relevant managers and key energy-consuming equipment operators to enhance their expertise.·Conducting energy-saving education through various channels such as meetings bulletin boards and other promotional means to
raise employees' awareness of energy conservation and reduction.
59 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 62
In our real estate business Pollutant Discharge
We actively explore measures for water resource recycling and strive
to reduce water consumption. We strictly implement sponge city
We strictly comply with the "Air Pollution Prevention and Control Law of the People's Republic of China" the "Water Pollution
construction requirements and widely apply green technologies such
Prevention and Control Law of the People’s Republic of China" the "Soil Pollution Prevention and Control Law of the People's
as rainwater harvesting reclaimed water utilization and ecological
Republic of China" the "Law of the People's Republic of China on the Prevention and Control of Noise Pollution" and other relevant
water landscapes in our project developments to improve water
laws and regulations. We continuously strengthen the emission management of exhaust gas wastewater and noise to reduce
resource efficiency and conserve water.pollutant discharge.·Leveraging rainwater collection systems we effectively capture rainwater from
rooftops ground surfaces and pavements which is then purified and used
for landscaping irrigation facility cleaning and other non-potable water Exhaust Gas Emission Management
needs reducing tap water consumption and alleviating urban drainage pressure.·We recycle high-quality mixed wastewater through a reclaimed water system
We generate exhaust gas primarily from construction activities in our real estate operations and pulp and paper production of our
and treate it for reuse to meet daily needs such as toilet flushing landscaping
subsidiaries. The main air pollutants include dust sulfur dioxide and nitrogen oxides.irrigation and fountain operations.·In new projects we incorporate sponge facilities such as sunken green
spaces permeable pavements and rain gardens to store and gradually
In our real estate business
release rainwater thereby reducing irrigation water for plants improving
● Sunken Green Spaces
water resource utilization and capturing suspended solids to optimize the
ecological environment of the community. The exhaust gas and dust produced during construction are common pollutants
that can impact the surrounding environment and human health. We implement a
series of proactive measures to manage and control the emission of construction-
Highlight Water Resource Recycling in Real Estate Projects
related exhaust gases and dust. In 2024 all ongoing projects achieved compliant
emissions and dust levels at construction sites met the requirements of the
The Xiyun Project in Wuxi adheres to the concept of sustainable development and strictly implements the requirements for sponge ● Dust Monitoring Equipment
"Ambient Air Quality Standards (GB3095-2012). " We adopt the following key
city construction. It enhances rainwater collection retention infiltration and recycling in line with the site conditions. The sponge
measures for dust management:
city design area of the project is 55006㎡. The project strengthens the site's rainwater storage and retention capacity by strategically
constructing rain gardens sunken green spaces and permeable pavements. Additionally a rainwater retention pond has been
built with a total storage capacity of 879m3. The project controls approximately 80% of the annual runoff volume with the collected
·Deploying a multi-point sprinkler system to achieve comprehensive dust suppression across
rainwater mainly used for landscaping irrigation and road spraying totaling about 14251m3 annually. This effectively reduces
all areas.rainwater discharge and alleviates pressure on municipal drainage systems. The application of sponge facilities improves site
·Utilizing real-time dust monitoring sensors for PM2.5 detection which automatically trigger
drainage conditions and helps mitigate the urban heat island effect to some extent optimizing the regional ecological environment. ● Green Mesh Coverage for Bare Soil
the sprinkler system to maintain air quality.Implementing an automatic high-pressure vehicle washing system at site exits to reduce
road dust pollution.·Optimizing waste disposal channels with misting systems at discharge points to minimize
dust dispersion.·Conducting mortar mixing in enclosed facilities equipped with overhead sprinklers to control
dust effectively.·Installing dust control signs to categorize pollution levels in advance and enabling targeted
dust control strategies.·Covering exposed soil areas with turf and protective mesh supplemented by water spraying
to ensure comprehensive dust mitigation.● Rain Garden of C&D Xiyun Project in Wuxi ● Permeable Pavement of C&D Xiyun Project in Wuxi ● High-Rise Sprinkler System
61 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 64
During the pulp and paper production process ·Each project sets up a three-stage sedimentation facility on the
construction site where construction wastewater is collected
Air emissions primarily originate from boiler flue gas in power plants and fugitive emissions. The main pollutants include sulfur sedimented and either recycled or discharged after meeting the
dioxide (SO2) nitrogen oxides (NOx) and particulate matter. To standardize the management of air emissions and minimize their
standards.impact on employees and local communities we implement the following air emission control measures: ·Prefabricated construction is applied to reduce wastewater generated
from on-site mixing of concrete.·Rainwater recovery devices are installed at construction sites and
·Establishing strict process operation procedures regulations and emergency response plans and forming a professional team responsible for an efficient discharge system is established to ensure the separation
the operation and management of boiler flue gas desulfurization denitrification dust removal facilities and online monitoring systems. of rainwater and wastewater networks strictly prohibiting the
·Using high-quality coal as fuel and ensuring the sulfur content of coal entering the boiler remains below 1% to reduce pollutant generation. discharge of non-rainwater bodies into the municipal rainwater system.·Implementing ultra-low emission technology in power plants and strengthening maintenance and management of desulfurization ·Special storage rooms are set up and the ground is treated
denitrification and dust removal facilities to improve treatment efficiency. for impermeability along with other measures to strengthen the
·Adopting flue gas treatment technologies such as low-nitrogen combustion selective non-catalytic reduction (SNCR) denitrification baghouse management of oil and chemicals stored on-site preventing oil
dust collection limestone-gypsum wet desulfurization and wet electrostatic precipitators. spillage overflow dripping or leakage. Random disposal of oil ● Sedimentation Tanks for Three Stages of Wastewater Treatment
·Applying a chemical scrubbing and biofiltration purification process to treat exhaust gases generated during the wastewater treatment process. is strictly prohibited to ensure that water and soil resources are no contaminated.·Installing automated monitoring equipment at exhaust outlets which are connected to the environmental authorities and engaging third-
party professional agencies to manage monitoring equipment operations and ensure data accuracy.·Implementing boiler low-load operation retrofitting projects by covering the water-cooled walls and water-cooled screen heating surfaces
modifying the secondary air ports and installing soot blowers on the air preheater to improve air preheater energy efficiency and reduce
nitrogen oxide emissions.Wastewater Discharge Management
The wastewater generated from our operations mainly comes from the construction process of our real estate business and the pulp
and paper production activities of our subsidiaries. The primary pollutants in the wastewater are COD and ammonia nitrogen. We
are actively building a wastewater treatment plant that meets environmental protection standards. Through wastewater treatment
processes we treat and recycle the wastewater to ensure reduction in wastewater and compliance with discharge standards. ● Prefabricated Construction
In our real estate business During the pulp and paper production process
In 2024
In 2024
wastewater primarily comes from domestic sewage and construction wastewater generated Wastewater mainly comes from paper-making wastewater mid-stage pulping wastewater boiler
by workers and on-site construction activities. We pay close attention to wastewater discharge We discharged wastewater discharge domestic sewage and rainwater with main pollutants including COD and ammonia
we proactively carried out
management. In 2024 our ongoing projects including the Quanzhou Green Building E-Valley from our ongoing projects in nitrogen. We have formed a professional team responsible for wastewater treatment and online maintenance and operational
Project (Phase I) and Zhangzhou Intelligent Auto E-Valley Project (Phases I II III) developed accordance with the "Integrated monitoring across the entire plant and established a laboratory to test wastewater parameters. At the management of wastewater
Wastewater Discharge
by Fu]lan Southwos CiyCooperativo Dovelcpmont Group Co. Lt. the Xiamen Zhenhuafu discharge points we have installed automatic monitoring equipment connected to the ecological treatment facilities including
Standard" (GB8978-2002) and clearing and descaling gas-
Project and the Xiamen Zhenyue Project all obtained wastewater discharge permits. During achieved the compliance with environment authority’s network to monitor wastewater quality in real time. Additionally we entrust liquid separators repairing
the construction period of these projects we implemented strict wastewater discharge discharge standards. third-party professional agencies with the operation of monitoring equipment to ensure accurate and anaerobic towers maintaining
water distribution systems and
management measures to ensure efficient treatment and environmentally friendly discharge. reliable data. We also emphasize the management of water recycling through applying a process at replacing damaged pipes to
In 2024 we discharged wastewater from our ongoing projects in accordance with the the wastewater treatment station that combines pretreatment anaerobic treatment biological film ensure the stable operation of
"Integrated Wastewater Discharge Standard" (GB8978-2002) and achieved the compliance aeration tanks and secondary settling tanks. The pre-treated wastewater is then discharged to the wastewater treatment systems.with discharge standards. municipal wastewater treatment plant for further processing to meet discharge standards.
63 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 66
Noise Management Highlight Quiet Residences of C&D Real Estate
The noise generated during our operations mainly comes from equipment rooms and construction sites of real estate development. C&D Real Estate adopts a comprehensive noise control solution covering partition walls floor slabs exterior windows entrance
We attach great importance to noise control at construction sites and actively take corresponding measures to manage the noise doors interior doors drainage air conditioning and more. The multi-layered all-encompassing soundproofing system creates quiet
generated during construction activities ensuring that noise management complies with national and regional standards. In 2024 residences providing homeowners with a peaceful and comfortable living environment. The noise control measures for the quiet
during the construction of ongoing projects we strictly adhered to the requirements of the "Emission Standard of Environment Noise residences include:
for Boundary of Construction Site" (GB12523-2011) achieving compliance with the emission standards.Partition ·Replacing traditional partitions and lightweight walls with fully cast-in-place concrete effectively reducing sound penetration
Walls
and isolating noise from neighbors.The main measures we take for noise management at
construction sites and equipment rooms include:
Floor Slabs · Adding polyurethane rubber vibration pads to the floor slab to reduce impact noise from the ground.*Installing noise monitoring equipment at construction sites to continuously
monitor noise levels ensuring that construction activities comply with
relevant noise emission standards.*Choosing low-noise construction machinery and processes avoiding the
Exter ·Using triple-glazed insulated laminated glass which offers better soundproofing compared to standard double-glazed io
simultaneous use of high-noise equipment to reduce localized sound level r Windows glass effectively blocking external noise and vehicle sounds.● Noise Monitoring Equipment
exceedance.*Setting up enclosed soundproof barriers around mixing machines with
high-noise and implementing fully enclosed construction during the
interior decoration phase of commercial complexes and small businesses. Entrance ·Equipped with an depression seal bar to door's bottom sealing keeping corridor noise outside.*Strictly managing the random moving noise sources from vehicles Doors
transporting materials ensuring that transportation vehicles are in good
technical condition with securely fastened parts to prevent unnecessary
noises such as brake squeals.*Arranging construction time periods reasonably based on the specific Interior ·Adding bridge-hole mechanical boards silent locks depression sealing strips and double sealing strips ensuring four levels
Doors
conditions of nearby schools hospitals residential areas etc. and of protection for door sealing.prohibiting nighttime construction. In exceptional cases a nighttime
construction permit must be obtained and nearby community residents ● Fireproof Wrapping and ● Flexible Vibration Isolation
Soundproofing Setup for the Static Pads for Fan Units
should be notified. Pressure Box in the Fan Room ·Wrapping the drainage pipes with sound-absorbing cotton and soundproofing mats to effectively reduce the noise of water Drainage
*Before performing cutting vibration or other construction operations in flowing through the pipes.areas with concentrated residents or organizations in addition to obtaining
approval as required the operation plans impact scope and mitigation
measures must be communicated to nearby residents and organizations. ·Choosing high-end brands and using advanced installation methods with canvas soft connections between the indoor
Air
*Using fireproof wrapping with soundproofing functions for the fan room's Conditioning unit and the air vent as well as elastic vibration damping hangers to reduce air conditioning operational noise.static pressure box and installing specialized flexible vibration damping
pads underneath the fan units to reduce the noise generated from
equipment rooms during the operation of residential projects.*Installing high-performance soundproof panels around the pump room and
providing high-performance vibration damping pads for the pump units
● Installation of Soundproof Panels in Pump Room
inside the pump room.
65 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 68
Waste Disposal During the pulp and paper production process
We use advanced production techniques and equipment to reduce raw material consumption and waste generation. Additionally we
have established a waste classification and recycling system. We utilize general solid waste such as fly ash slag and desulfurization
We strictly observe the "Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid gypsum as raw materials for the company operating in building materials. Paper waste is reused in the projects of comprehensive
Wastes" the "Standard for Pollution Control on the Non-hazardous Industrial Solid Waste Storage and Landfill" "Standard for utilization of paper waste while waste plastics waste paper pulp and waste metals are sold as raw materials achieving resource
Pollution Control on Hazardous Waste Storage" and other national and local laws and regulations related to solid waste continuously utilization of waste and reducing resource consumption and environmental pollution.improving and enhancing our waste management system. We follow the principles of reduction valorization and harmlessness and
Moreover for the domestic waste generated during operations we implement the following management measures:
strive to minimize the generation of various types of waste during our business operations.·Strictly implementing waste classification at the source (including paperless office practices and prohibition on the use of disposable products
etc.). Waste classification bins are set up in the office building's tea rooms and freight elevator lobbies with regular staff training to promote waste
classification.General Waste ·Advocating for paperless office practices to reduce the circulation and printing of paper documents thus lowering the generation of office waste.·Setting up designated waste collection points within the communities we manage equipped with clearly labeled and color-coded waste classification
containers. Hazardous waste collection bins are treated to prevent leakage avoiding secondary pollution. The property management team coordinates
The general waste produced during the company's operations primarily comes from construction activities in real estate and from and manages the collection transportation and disposal of community household waste.the paper and pulp production of our subsidiaries. The main types of general waste include construction waste industrial waste
and domestic waste. We adhere to the principle of resource utilization for waste and take a series of measures to reduce resource
consumption and waste generation.In our real estate business Hazardous Waste
Our construction waste management measures for
ongoing projects mainly include:
We generate hazardous waste primarily from the construction activities in our real estate business and the production processes at
our subsidiary factories. The main hazardous wastes include waste mineral oils used oil drums etc.·Establishing dedicated temporary storage areas for waste
classifying and storing waste separately with potentially In our real estate business During the pulp and paper production process
hazardous waste stored independently and secured with safety
measures and clear signage. Training sessions on waste disposal We transport toxic and harmful waste to specialized We strictly implement internal management systems
are organized to help site personnel understand the company's
● Collection Pit for Construction Waste hazardous waste treatment centers and prohibit the such as the "Responsibility System for Hazardous Waste
waste disposal regulations and improve environmental
melting of asphalt or the burning of waste on construction Pollution Prevention and Control" overseeing all stages
awareness.·Setting up closed waste stations at construction sites equipped sites. of hazardous waste generation storage utilization and
with misting dust suppression devices and dust barriers that are disposal. Hazardous waste is entrusted to qualified
regularly cleaned. companies for disposal. For the sludge produced during
·Managing waste by categories such as recyclable and non- production we co-incinerate it with coal as fuel for
recyclable for transportation and locally treatable waste. For the boiler. For residual sludge and bottom ash that are
example broken bricks and brick debris are crushed on-site and
difficult to utilize we entrust qualified third-party agencies
used for basement foundation backfilling.for incineration disposal.● Closed Storage in Construction Waste Collection Station
67 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 70
Environmental Compliance Environmental Emergency Management
Management We implement the provisions of the "Emergency Response Law of the People's Republic of China" Our key safety-focused
subsidiaries conducted
the "Contingency Plan for Environmental Emergencies" the "Measures for the Administration
In 2024
of Contingency Plan for Environmental Emergencies" and other relevant laws regulations 31
We strictly comply with the "Environmental Protection Law of the People's and guidelines. We have developed comprehensive emergency response plans such as the environmental emergency drills
Republic of China" the "Environmental Impact Assessment Law of the "Comprehensive Contingency Plan for Environmental Emergencies" and the "Special Contingency we did not experience any major
People's Republic of China" and other relevant laws and regulations of Plan for Hazardous Waste Environmental Emergencies" as well as an annual environmental environmental incidents or receive any
the locations where we operate. We have established and strictly adhere to emergency drill plan. Through active drills for environmental incidents we aim to prevent and environmental-related administrative
policies such as the "Environmental Protection Policy " which sets regulatory minimize the environmental harm caused by such events enhance our emergency response and penalties.handling capabilities and effectively ensure public health and environmental safety.requirements for our operations and those of our subsidiaries in areas such
as pollutant discharge reduction water resource protection and biodiversity
In 2024 our key safety-focused subsidiaries conducted 31 environmental emergency drills
conservation. We continue to advance the development of our environmental
covering scenarios such as natural gas leaks hazardous chemical spills underground oil tank
management system and all our manufacturing enterprises have now been
leaks environmental facility failures or shutdowns sudden ozone leaks wastewater pipeline
certified with the ISO 14001 Environmental Management System.leaks and solid waste spills.Highlight Hazardous Chemical Spill Drills
Environmental Risk Control Due to the explosive flammable toxic corrosive and radioactive
properties hazardous chemicals pose significant safety risks during
transportation handling usage storage and management. In 2024
We follow the risk management system and process to identify and assess the environmental risks that our operations may face. Xiangguang Copper and Universal Pulp and Paper subsidiaries of
Additionally we periodically conduct specific project-based risk identification and assessments to determine the risk levels and the company conducted hazardous chemical spill drills to assess
implement corresponding control measures to mitigate potential environmental risks. the adequacy and effectiveness of existing emergency response
plans and to enhance employees' ability to handle environmental
Our critical environmental management subsidiaries Universal Pulp and Paper has established a comprehensive
emergencies and coordinate response efforts. During the drills all
environmental risk management framework which clearly defines the responsibilities at each level:
participating units responded swiftly and acted in an organized
manner in strict accordance with the emergency response plans.·The general manager reviews environmental risks and opportunities from a strategic perspective. Following the exercises training and educational activities were
·The management team organizes departments to conduct specific risk and opportunity assessments according to the established review cycle. ● Hazardous Chemical Spill Drill
conducted to reinforce employees’ understanding of emergency
·The General Administration Department is responsible for establishing control procedures for addressing risks and opportunities tracks the
effectiveness of measures and compiles risk and opportunity evaluation reports risk handling forms and other relevant documents. response measures ensuring they master the correct and scientific
·Each relevant department is responsible for assessing the risks and opportunities within their scope as well as formulates and implements approaches to prevent secondary hazards.corresponding measures.Environmental Protection Culture
We actively organize environmental training sessions lectures and themed activities to enhance employees' awareness of
environmental protection. In 2024 we conducted multiple environmental training programs including hazardous waste awareness
education promotion of cleaner production audit and advocacy activities in World Environment Day.
69 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 72
Circular Economy
● Recycling and Utilization of Non-Ferrous Metals
Developing a circular economy is a major national strategy for China's economic and social development. It plays a vital role in The recycling of non-ferrous metals and other energy-intensive materials can significantly reduce carbon emissions
ensuring national resource security accelerating the transformation of economic development models and promoting ecological generated across the value chain including raw material extraction transportation and production. Leveraging our
civilization and high-level environmental protection. In 2024 the CPC Central Committee and the State Council issued the "Opinions professional strengths in international trade we have actively expanded into the non-ferrous metal recycling business
on Accelerating the Comprehensive Green Transformation of Economic and Social Development" which called for the vigorous aiming to reduce waste and greenhouse gas emissions while promoting the development of a circular economy. In 2024
development of the resource recycling industry. As a leading supply chain and real estate operator in China we actively engage in our non-ferrous metal recycling business including recycled aluminum recycled aluminum alloys and recycled copper
circular economy initiatives promote resource recycling and contribute to building a green low-carbon and circular economic achieved a revenue of 760 million RMB. We recovered approximately 47000 tons of secondary metals in total with about
system. 35000 tons imported into China.Achieved a revenue of Recovered secondary metals approximately Imported into China with about
760million RMB 47000tons in total 35000tons
Developing Green Businesses
We actively develop green businesses aiming to enhance resource efficiency and minimize carbon emissions across the full life cycle ● Waste Paper Recycling
of materials and products. Through these efforts we contribute to climate change mitigation and to the building of a green low-
carbon and circular society. We actively engage in waste paper recycling and use the collected paper to The total volume of recycled waste paper reached
produce coated paper kraft board and various other paper products. This
tons
initiative is aimed at reducing the consumption of natural resources such as 380000
timber. Additionally we recycle waste pulp generated during production processes
Estimated to have saved approximately
to substitute virgin materials thereby minimizing resource waste. In 2024 the total
volume of recycled waste paper reached 380000 tons which is estimated to have 6million mu of forest land from deforestation
saved approximately 6 million mu of forest land from deforestation.● Scrap Steel Recycling
We have extended our operations along the upstream and downstream segments of the
In 2024
steel industry chain by engaging in scrap steel recycling and processing. These efforts
help our partner steel mills improve their scrap utilization efficiency and advance the ● Waste Oil Recyclingthe total volume of scrap steel
industry's transition toward green and low-carbon development. Around key partner contracts filed by the company
exceeded
steel mills we have planned and established multiple integrated scrap steel industry
Through the high-quality services of the LIFT supply chain we have established long- Exported industrial-grade mixed oil
bases across China. These bases combine functions such as storage processing 1million tons term strategic partnerships with multiple biodiesel and waste oil refining enterprises
distribution and settlement. We have become a strategic partner to several major steel tons
across China. Together we carry out the comprehensive recycling and utilization of waste 500000
enterprises including Baogang Group Shougang Group and Anben Steel Group. Our
oil resources such as gutter oil and kitchen waste oil. Waste oil recycling helps prevent
million-ton demonstration bases located in Benxi Baotou Tangshan and Tianjin have
gutter oil from re-entering the food supply chain thereby protecting public health. The
all obtained certification under the Ministry of Industry and Information Technology's First-generation biodiesel
recycled oil is repurposed into biodiesel industrial lubricants soap and other products
"Access Requirements for Scrap Steel Processing Industry." These bases are capable of
contributing to resource circulation and environmental protection. In 2024 we exported 150000tons
meeting the scrap steel demand of steel mills within a 100-kilometer radius. In 2024 the
500000 tons of industrial-grade mixed oil and 150000 tons of first-generation biodiesel.
total volume of scrap steel contracts filed by the company exceeded 1 million tons.
71 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 74
Resource Recycling and Utilization Highlight Green Marketing
● Recycling of Office Resources
The Lianfa Cloud Store designated as the
official online marketing platform of Lianfa
We actively promote green office practices by integrating low-
Group enables a systematic digital marketing
carbon principles into daily operations and encouraging the
● Recycling of Construction Materials approach. By leveraging its comprehensive recycling of office resources:
platform functions it significantly reduces
To reduce resource consumption we have adopted multiple measures to promote the recycling and efficient use of ·Promote paperless office systems to reduce the consumption of paper or replaces the use of traditional offline
construction materials: and ink while streamlining workflows and improving efficiency. promotional materials such as printed posters
·Encourage black-and-white and double-sided printing and set up project brochures and floor plans thereby
·Maintain a centralized materials ledger managed by project departments with strict quota-based distribution controls. dedicated bins for reusable paper to prioritize the use of recycled
·Establish dedicated recycling teams responsible for collecting and sorting scattered materials on construction sites ensuring their minimizing paper consumption and supporting sheets.effective reuse. ·Implement a “trade-in” policy for printer cartridges and other more sustainable marketing practices.·Conduct joint reviews for specialized plans related to scaffolding and formwork to optimize construction schedules increase turnover consumables to reduce resource waste.rates of reusable materials and reduce the use and waste of non-permanent materials. ·Allocate at least 30% of procurement for items such as printer paper
·During the later stages of interior finishing follow the principle of "use long pieces for long purposes and avoid cutting long pieces for and pencils to products made from recycled materials.short needs" to control material usage and promote rational consumption. ·Task property management teams with daily inspections of office areas
·Encourage the reuse of standardized facilities and modular site accommodations within project departments to further enhance the meeting rooms and other common spaces to collect and redistribute
efficiency of material recycling. reusable office supplies to departments in need.·Conduct regular warehouse inventories to repair and repackage old or
damaged items that are still usable allowing them to be put back into
use. Items with low utilization or that remain idle are donated to public
welfare programs or repurposed for employee activities to maximize
their value.● Paper Recycle
● Reuse of Standardized Facilities and Modular Site Accommodations within Project Departments
● Online Marketing Stream
73 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 76
Ecosystem and Biodiversity Protection Highlight Tree Planting Campaign
We place great importance on ecological and biodiversity protection and strictly comply with relevant environmental laws and
regulations including the "Environmental Protection Law of the People's Republic of China" the "Law of the People's Republic of
China on the Protection of Wildlife" and the "Regulations of the People's Republic of China on Wild Plants Protection." We have
strengthened our ecological risk management to ensure that all business activities meet ecological and environmental protection
requirements and do not cause damage to natural ecosystems. We actively promote the development of ecological management
systems and encourage our subsidiaries and stakeholders to strictly implement ecological protection standards. We strictly prohibit
the use of rare or endangered plants and animals as raw materials as well as the use of endangered animals for experimental
purposes to ensure that our production and operations align with the principles of ecological sustainability. As we expand our
business we continue to optimize ecological management measures promote green and low-carbon operations minimize impacts
on ecosystems and biodiversity and support the long-term stability and resilience of natural ecosystems.Highlight Protection of an Ancient Banyan Tree
At the Longyan C&D Manyun Project site an ancient banyan tree
over 400 years old was preserved in place through a light-touch
renovation approach. An elevated wooden platform was built
around the tree pool to protect the tree on-site. The project uses
the ancient banyan as a central ecological element. By adopting a
terraced landscape design that connects various functional zones
● Tree Planting Activity in Renhe Village
of the residential community the banyan tree has become both the
visual and ecological focal point of the area. This design enriches
the local biodiversity and creates a space where nature and culture
● Protection of an Ancient Banyan Tree
coexist offering residents a peaceful place for rest and interaction.In March 2024 C&D Property launched
a tree planting campaign themed
"As Spring Thaws Hope Blooms"
promoting ecological and environmental
protection. Property service staff led
residents through a hands-on gardening
workshop where participants learned
basic horticultural knowledge planted
saplings and adopted green plants. The
activity effectively raised residents’
awareness of ecological conservation
and encouraged greater community
engagement in environmental
protection. ● "As Spring Thaws Hope Blooms" Tree Planting Activity
75 Xiamen C&D Inc. 2024 Sustainability ReportSocial
Social Performance Targets in 2024 Completion
Status
1 Actively conduct community engagement with 100% of operational sites organizing annual communication with local communities
2 Organize no fewer than 250 volunteer activities throughout the year with a minimum of 5000 volunteer service hours
3 No litigation cases resulting from infringement of intellectual property rights
4 Gradually incorporate CSR/ESG requirements into supplier entry criteria
5 Establish a supply chain risk management system to identify assess and respond to potential risks
6 No incidents of customer privacy infringement during the year
7 Zero penalties related to health and safety impacts of products and services
8 Provide an average of no less than 10 training hours per employee annually
9 Ensure 100% of employees are covered by safety training programs throughout the year
10 Ensure 100% of affiliated manufacturing enterprises are certified under the ISO 45001 Occupational Health and Safety Management System
11 Zero major or extremely severe accidents during the year
Completed In Progress Unfinished
02Environmental Social Governance Appendix 80
Rural Revitalization and
Social Contributions
We uphold the brand philosophy of "Together Go Beyond" by integrating the United Nations Sustainable Development Goals
(SDGs) into our corporate development strategy and actively supporting China’s national policies on agriculture rural areas and
farmers. We have established a "Community Policy" that outlines a systematic three-pronged collaborative mechanism built on
needs feedback risk management and outcome sharing. Centered around four key pillars of industrial chain extension education
empowerment child welfare and livelihood support our efforts aim to foster deep collaboration between the company and the
communities we serve. By promoting circular use of resources co-creation of value and mutual development we work together with
communities to build a more sustainable society.Industrial Revitalization and Rural Development
Rural revitalization is a key pathway to achieving common prosperity and a necessary step toward the modernization of agriculture
and rural areas. Leveraging our industrial strengths we actively support consumption-driven assistance and the national rural reception capacity and optimizing the tourism experience to support the
revitalization strategy. We promote the development of rural industries and the improvement of rural infrastructure while enhancing growth of Renhe Village's cultural and tourism sector. We also organized
activities involving nearly 300 employees including training sessions team-
local governance capabilities. By supporting the growth of distinctive rural industries and fostering livable and business-friendly rural
building events annual meetings and tree-planting activities. In addition
communities we drive high-quality rural development from a strategic long-term perspective and inject sustained momentum into we helped boost rural consumption and employment by purchasing over
the comprehensive advancement of rural revitalization. 5500 kilograms of locally produced rice thereby supporting stable sales
channels for agricultural products and promoting the development of rural
service industries. Beyond material support we conducted home visits
Highlight Exploring Win-Win SOE-Village Enterprise Collaboration in Agri-Cultural-Tourism Integration and care programs for disadvantaged villagers providing both physical
supplies and emotional support to enhance community well-being.Renhe Village located in Tingxi Town of Tong'an District is We also led assistance coordination meetings and joint Party lectures
recognized as one of Xiamen's Ten Most Beautiful Villages and engaging in on-site visits field research discussions and public welfare
boasts rich cultural and tourism resources. In alignment with campaigns to support local agriculture. These efforts enabled us to gain in-
the national rural revitalization strategy we have established depth understanding of the village's needs precisely align resources and ● Rural Revitalization Plan in Renhe Village
a partnership with Renhe Village to provide targeted collaboratively develop a phased strategy for rural revitalization tailored to
assistance. Leveraging the village's distinctive local resources local conditions and grounded in practical actions.we have adopted a tripartite support model of "industrial
assistance consumption-driven assistance and charitable
assistance"to explore an integrated development path that Highlight Advancing Industrial Development and Consumption-Driven Assistance in Ningxia Tibet and Xinjiang
combines agriculture culture and tourism fostering a win-
win cooperation between state-owned and village enterprises.This approach aims to stimulate endogenous rural vitality and Since 2021 C&D Hengrong a subsidiary of the Company has participated in In 2024
build a sustainable rural economic ecosystem. East-West industrial collaboration initiatives to support industrial development
In 2024 based on the village's specific context we launched a and consumption-driven assistance in Ningxia Tibet and Xinjiang. In 2024 Selected in the "2023 National Compilation of
series of targeted initiatives. We donated 2 sightseeing vehicles the consumption assistance program for Tibet in which C&D Hengrong was Typical Cases on Consumption-Driven Support for
to improve local tourism infrastructure enhancing visitor involved was selected in the "2023 National Compilation of Typical Cases Rural Revitalization" published by the National
on Consumption-Driven Support for Rural Revitalization" published by the Development and Reform Commission (NDRC)
● Rural Revitalization Plan in Renhe Village National Development and Reform Commission (NDRC).
79 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 82
Leveraging its strengths in supply chain operations C&D
Hengrong has been deeply involved in the development Rooted in Communities Committed to Cultural Heritage
of specialty agricultural and sideline products such as
wild plateau pecan oil from Zuogong County and products
from Jimusaer. The company has established systems We are committed to building mutually beneficial relationships with the communities in which we operate promoting the integration
for product assembly warehousing and distribution;
of our business operations with community sustainable development. At each of our operating locations we have established
assigned a dedicated logistics team to review and track
orders; and developed a service supervision mechanism. dedicated departments and comprehensive information feedback platforms. These platforms provide convenient channels for ● Wild Pecan Oil from Zuogong County ● Agricultural Specialties from Jimusaer
Comprehensive services have been provided across stakeholders to make inquiries submit complaints and share their opinions ensuring that all suggestions and grievances are
packaging design brand development logistics and accurately recorded and addressed in a timely manner. As we expand our business we consistently conduct community risk
sales enabling the local agricultural industry to scale and
In 2024 assessments. We incorporate key issues such as respecting and protecting the rights of local indigenous populations preserving build recognizable brands. These efforts have increased
the added value of rural specialty products and helped cultural traditions and safeguarding cultural heritage and the ecological environment into our corporate strategy. Upholding a
them reach broader markets. In addition C&D Hengrong C&D Hengrong's assisted localized development philosophy we prioritize hiring local talent and offer business opportunities to local enterprises. This includes
has launched the "Wanfu Qianjia" online platform and products have reached over access to raw material procurement technical support and subcontracting services. Through these efforts we aim to reduce
offline exhibition center integrating agricultural specialty
300000 operational risks mitigate potential negative impacts of our business activities on local communities and promote the coordinated products from supported regions into Xiamen's labor
union welfare system while expanding into market- development of regional economies and community governance.consumers
based sales channels. By promoting the philosophy of
"purchasing instead of donating buying instead of giving"
Generating a total sales
the company is helping shift industrial assistance from volume exceeding
"dependency support" to "self-sustained regeneration."
In 2024 through an omnichannel online and offline sales 100million RMB Highlight Preservation of Historic Residences
network C&D Hengrong's assisted products have reached ● "Wanfu Qianjia" Online Platform
over 300000 consumers generating a total sales volume
exceeding RMB 100 million. Zhongzhai Historic Residences located in Huli District surveys and measurements were conducted on each historic
of Xiamen are a traditional architectural complex rich in structure prior to any repair work. We remained committed
Minnan cultural heritage. These buildings hold significant to preserving the original condition authenticity integrity
historical and cultural value. We have actively participated reversibility and recognizability of the buildings in line with
Highlight Supporting the Development of Local Industries Through Agricultural Specialty Product Assistance in the restoration and preservation of the Zhongzhai Historic the principles of cultural heritage protection. Traditional
Residences with a commitment to carrying forward and techniques and materials were used to carefully restore and
promoting traditional culture. reinforce the original components. Emphasis was placed on
Handmade noodles are a traditional industry in Yunyang Village Lianhua protecting historical traces and preserving as much historical
Town Tong'an District Xiamen. At its peak the village was home to more
During the restoration process we strictly adhered to the information as possible. Through these efforts we aim to
than a dozen small workshops engaged in noodle making with hundreds
principle of "restoring the old as it was." Comprehensive safeguard the cultural "roots" and "spirit" of Zhongzhai.of people working in the industry. After more than 200 years and nine
generations of inheritance Yunyang noodles have remained true to traditional
handmade techniques. However as the artisan noodle makers have grown
older Yunyang handmade noodles have faced the risk of "breaking the line"
meaning a potential halt in transmission and production.C&D Real Estate has actively contributed to supporting Yunyang Village's
agricultural specialty industry. Through charity markets and targeted
procurement activities we have built diversified sales channels. These include ● Supporting the Sale of Yunyang Handmade Noodles in Charity Market
employee benefit programs corporate canteens and customer engagement In 2024
events. These efforts have effectively expanded market access for handmade
noodles promoted the sale of local specialty agricultural products and
contributed to rural revitalization. By leveraging our resource advantages we Yunyang Village sold more than Over
have increased awareness of local agricultural products expanded noodle
sales volume and helped raise farmers' incomes. This support has fueled 6000 2300
the industrial revitalization and economic development of Yunyang Village. units of handmade noodles units of handmade
In 2024 with our assistance Yunyang Village sold more than 6000 units of noodle gift boxes
handmade noodles and over 2300 units of handmade noodle gift boxes. ● Restoration of Zhongzhai Historic Residences
81 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 84
Caring for Children Lifting Their Dreams Highlight "C&D Real Estate Education Charity Fund" Program
Guided by a people-oriented development philosophy we have built a long-term public welfare brand for youth under the theme Upholding the belief that "where there is love there is a way" C&D Real
"Love Has a Future" Through ongoing initiatives such as "Nourishing the Youth" and "Lifting Your Dreams" we have gradually Estate established the "C&D Real Estate Education Charity Fund" in 2007 to Has donated over
developed a systematic and long-term strategy for educational sponsorship. These efforts reflect our commitment to narrowing the provide dedicated financial support to outstanding high school graduates
million RMB
gap in educational resources between urban and rural areas and to supporting the healthy growth and development of children and from underprivileged families. Over the years it has launched a number 100
adolescents across the country. of signature initiatives including "Lifting Your Dreams" "Warmhearted
Assistance" and "Nourishing the Youth." These programs have supported Supported more than
a wide range of charitable causes including student aid poverty relief and
support for orphans. To date the company has donated over 100 million RMB 8400students in need
through the Charity Fund and supported more than 8400 students in need. It
Highlight Collaborative Program with Ding'an Primary School has been recognized with several honors including the "National Outstanding
Contribution to Philanthropy Award" the "Charity Star of Fujian" and the
title of "Philanthropic Contributor of Xiamen." In 2016 it was designated a
2024 marks the twelfth year of our long-term partnership with Ding'an Primary School in Xiamen. In 2024 "Permanent Honorary President Unit" by the Xiamen Charity Federation.
Guided by the core concept of "warm-hearted education" we have continuously carried out "Permanent Honorary
volunteer programs to support students at the school.At the beginning of the partnership Ding'an "National Outstanding "Philanthropic President Unit"
"Charity Star of Fujian"
Primary School located on Zhongshan Road in Xiamen had only 12 classes with children of migrant The program has engaged Contribution to Philanthropy Contributor of Xiamen" by the Xiamen Charity
workers accounting for 95% of the student population. Over the past twelve years we have organized Award" Federation"
around 100 educational support events benefiting more than 1800 students. In total the program 300participants
has engaged 300 participants and accumulated 150 volunteer hours.·"Nourishing the Youth" Charity Program for Orphaned and Vulnerable Children
In 2024 we held 12 student support activities at Ding'an Primary School involving approximately
75 participants. Key activities included:
Orphaned and vulnerable children often endure hardships beyond the
·A New Year’s themed cultural fair titled "Exploring the Diversity of Our Nation Unifying the Dreams of People" Accumulated
imagination of their peers. To support this special group the "C&D Real Estate
which introduced students to China’s long history and the vibrant cultures of various ethnic groups.
150volunteer hours Education Charity Fund" launched the "Nourishing the Youth" program in ·A series of safety education sessions covering five major topics: fire safety traffic safety food safety internet 2012 with a focus on children under the age of 16. The program aims to help
safety and mental well-being. Through interactive presentations and activities we helped students understand
them grow up healthy and happy under the same blue sky. As of the end of
the importance of everyday safety and enhance their self-protection awareness and skills.
2024 the "Nourishing the Youth" program has provided support to more than
·Various themed class meetings and experiential activities such as New Year and Dragon Boat Festival
5000 orphaned and vulnerable children.
celebrations tree planting mental health education traditional handicraft classes in bamboo weaving fan
techniques and gender bias awareness sessions. These engaging programs aimed to nurture students'
In May 2024 the Charity Fund co-hosted the "Nourishing the Youth" paired
curiosity imagination and dreams.assistance event with the Xiamen Charity Federation and the Xiang’an
District Charity Federation. The event provided financial aid and care
packages to students in need. Over the course of the year the program
supported a total of 100 students.As of the end of 2024 In 2024
The "Nourishing the Youth" program has provided Supported a total of
support to more than
100students 5000orphaned and vulnerable children ● "Nourishing the Youth" Charity Program for Orphaned and
Vulnerable Children
● Education Assistance Activities at Ding'an Primary School
83 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 86
·"Lifting Your Dreams" Charity Program Care to Share Aware through Public Welfare
"Lifting Your Dreams" is a charitable education assistance program
The "C&D Inc. Global Public Welfare Initiative" is a global volunteer public In 2024
initiated by the Xiamen Charity Federation and implemented by the
welfare project launched by the company in 2023. The project thoroughly follows
C&D Real Estate Education Charity Fund. The program aims to provide
General-Secretary Xi Jinping's instructions on promoting the spirit of Lei Feng and
financial support for students encouraging graduating high school
advancing the volunteer service movement sparking a wave of public welfare
students and those already in school to overcome financial hardship and Held over
enthusiasm around the world. Currently the number of registered volunteers
complete their studies successfully. By extending care and promoting a
under this initiative has exceeded 3000. public welfare events
spirit of giving back the program strives to create long-term social value. 200
As of the end of 2024 the "Lifting Your Dreams" program has supported
In 2024 under the annual volunteer service theme "Sparks Become Torches and Engaging more than
more than 3400 students from disadvantaged backgrounds.the Flame Lives On" we continued to advance the "C&D Inc. Global Public Welfare
Initiative." Our efforts focused on four key areas: elderly and disability care poverty participants
In August 2024 the C&D Real Estate Education Charity Fund in 3000
alleviation civic advocacy and environmental protection. Throughout the year
collaboration with the Xiamen Charity Federation launched the
we organized a wide range of community-focused volunteer programs including
"Where there is love there is a way- lifting your dreams" education Contributing approximately
Double Ninth Festival visits to seniors birthday celebrations for the elderly charity
assistance campaign. The initiative provided approximately 500000
donations traffic guidance campaigns and environmental protection activities.RMB in financial aid to 42 graduating high school students and 50 volunteer service hours● "Where there is love there is a way- lifting your dreams" 10000In total we held over 200 public welfare events in 2024 engaging more than 3000
college students all from economically disadvantaged families. Charity Education Program participants and contributing approximately 10000 volunteer service hours.As of the end of 2024 In 2024
The "Lifting Your Dreams" program has
The initiative provided approximately 500000 RMB in financial aid to supported more than
3400 42 graduating high school students and 50 college students
students from disadvantaged all from economically disadvantaged families
backgrounds
● "Where there is love there is a way- lifting your dreams" Charity Education Program ● Community Public Welfare Activities
85 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 88
Highlight Community Elderly Care Outreach Program Innovation-driven Development
During the Double Ninth Festival in 2024 we organized volunteer activities and hosted birthday celebrations for elderly residents in
the community. These events provided care packages and heartfelt holiday greetings to seniors bringing warmth and joy to their
lives. With the growing maturity of advanced technologies such as big data cloud computing artificial intelligence the Internet of Things
blockchain and 5G a new wave of technological revolution driven by digitalization networking and intelligence has become an
unstoppable trend. It is accelerating the penetration from the consumer market to various segments of the supply chain driving deep
transformation in the supply chain industry. We have positioned technology empowerment as a core strategy actively exploring and
developing innovative digital technology applications. We aim to create a supply chain service system that is digital multi-scenario
and uniquely tailored to our company’s needs. We promote the widespread application of green technological innovation and
advanced technologies by deeply integrating digital and intelligent solutions with the development of traditional industries. We are
committed to building green factories and green supply chains continuously driving the transformation and upgrading of traditional
industries towards greener and more innovative practices and accelerating the development of new production capabilities.R&D and Innovation
● Community Elderly Care Outreach Program
·Digital and Intelligent Integration of Supply Chain Resources
We are continuously developing supply chain collaboration platforms to connect industry chain partners enhancing the quality of
Highlight Volunteer Activities for Community Development supply chain services and coordination efficiency. This drives the seamless connection of the entire supply chain process and the
efficient integration and precise allocation of supply chain resources offering customers more personalized and highly efficient
supply chain operations services.In 2024 our Party member volunteer service team conducted a series of themed activities in the Jinjiting Community. These included
over ten events such as health education lectures charity visits and educational workshops. In total approximately 500 participants
We have digitized our business processes and data to effectively integrate industry information commodity indices corporate credit
took part in these activities.data and other relevant data into our supply chain service system tailored to the characteristics and needs of different industries.·We have launched platforms such as the "E-Inspection" remote inventory inspection
Digitalization
of Business and management platform and the "C&D Pricing APP" online futures spot pricing
Processes trading platform promoting efficient digital and visualized business operations.·The internal business data integration has been largely completed with connectivity
established to futures market banking industrial & commercial and customs data
Digitalization systems progressively advancing the digitalization and integration of supply chain
of Data transactions and customer/vendor data. By integrating data from internal operations
upstream and downstream partners logistics warehousing finance and credit we are
actively building an integrated big data ecosystem that fosters industry collaboration.● Co-Building Activities in Jinjiting Community
87 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 90
We have launched digital and intelligent service platforms in multiple industries providing more efficient and comprehensive Highlight Digital Employee "Xiao T"
services to clients across various sectors.·Pulp and Paper Industry ·Iron and Steel Industry We have been actively exploring risk control logistics digitalization
operations management industry research brand marketing and AI-
powered office solutions. By integrating advanced AI technologies
such as OCR NLP RPA and CV we successfully developed the digital
employee “Xiao T.” “Xiao T” combines intelligent order entry
automated approvals and RPA robotics enabling automation
and intelligent processing of repetitive and rule-based tasks. This
breakthrough overcomes efficiency bottlenecks in traditional workflows
helping to reduce costs and enhance efficiency. Currently “Xiao T” has
been deployed in over 30 subsidiaries processing more than 2.8 million
documents in the past year alone saving over 22000 workdays and
reducing labor and material costs by approximately 55.4 million RMB.● 数字员工小 T
● The Business Ecosystem of "E-Pulp" and "PaperSource" ● C&D Esteellink Platform
·Digital Innovation Awards
·Agricultural Products Industry ·Consumer Goods Industry
In 2024 several of our digital products received multiple honors in the field of technological innovation.Project Name Awards Honored
The 7th "Digital Transformation and Innovation Awards 2024" presented by the Digital Industry Innovation
"EasyInput" and "EasyReview" Intelligent Research Center
Systems "Excellent Digital Transformation and Innovation Cases 2024" recognized by the Digital Industry Innovation
Research Center
"C&D Esteellink" Platform 3rd place on the "Top 100 Chinese Enterprises of Industry Digitalization 2024" ranked at the China Industrial Digitalization Conference
● "EasyAgri" ● "EasyOrder" 25th place on the "Top 100 Chinese Enterprises of Industry Digitalization 2024" ranked at the China Industrial
Digitalization Conference
"PaperSource" and "E-Pulp" Industrial "Top 10 Digitalization Benchmark Cases of Central State-owned Enterprises 2024" recognized by the China
Internet Platforms Software Industry Association
·Automotive Industry ·Digital and Intelligent Operations
"Excellent Digital Transformation and Innovation Cases 2024" recognized by the Digital Industry Innovation
Research Center
We continue to advance the informatization digitalization "E-Settlement" Platform "Excellent Digital Transformation and Innovation Cases for Automotive Industry 2024" recognized by the Digital Industry Innovation Research Center
automation and intelligent transformation of enterprise
operations and management. Through the use of the latest digital "E-Partner" Platform "IDC China Digital Transformation Pioneer 2024" recognized by the IDC China
products such as electronic signing and RPA robots we have
built internal intelligent management platforms which enable
"EasyService" Platform "Digital Innovation Application Scenario of Chinese Enterprises 2024 " recognized by the China Software
online and visualized supply chain operations and digitalized Industry Association's CIO (Chief Information Officer) Branch
management further strengthen business risk control and
"E-Insight" Smart Decision-Making
improve operational efficiency. Platform "ADMIC Golden Excellence Award for Outstanding AI Platforms 2024" presented by iDigital China
● "EasyService" "Pulp and Paper ERP" System "Invotative Digital Solutions of Chinese Enterprises 2024" recognized by the China Software Industry Association
89 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 92
Intellectual Property Rights Protection Suppliers and Clients
We strictly comply with the "Patent Law of the People's Republic of China" the In 2024
"Trademark Law of the People's Republic of China" and other relevant laws and We are committed to innovation-driven and collaborative development. Guided by professionalism we continue to deepen
regulations continuously improving our intellectual property management system
Obtained cooperation along the industrial chain and enhance the quality and efficiency of supply chain operations. Upholding the principle
and strengthening IPR protection efforts. Our intellectual property covers trademarks
of "win-win cooperation" we continuously optimize supply chain management to improve sustainable operational capabilities. At
patents copyrights and trade secrets which are managed and protected by the relevant 100
departments. In 2024 we revised the "Trademark and Corporate Name Management the same time we empower industry partners through technological innovation supporting green transformation and high-quality
newly authorized patents
Measures" to enhance trademark standardization ensure the proper implementation development across the sector.of trademark strategies and maximize brand value. Throughout the year we obtained
100 newly authorized patents 27 newly registered copyrights and 39 newly registered
trademarks with no litigation cases arising from intellectual property disputes. 27
newly registered copyrights
Additionally we regularly conduct training and education programs to enhance
employees' understanding of intellectual property protection. In 2024 we hosted
a specialized training course "Enterprise Intellectual Property Rights Protection: 39
Trademarks and Copyrights" to strengthen the knowledge and practical skills of relevant Supply Chain Securitynewly registered
personnel from management departments and business units in handling corporate trademarks
names trademarks and copyrights providing professional guidance for our IPR
management efforts. Supply chain security is integral to the full life cycle of high-quality corporate development. We actively implement national strategies
for supply chain security by establishing a comprehensive risk management system. While ensuring regulatory compliance and
stable supply we embed ESG-related requirements into supplier onboarding performance evaluation and capacity building. These
measures continuously enhance the supply chain’s resilience and sustainability laying a solid foundation for long-term high-
quality growth.Supplier Management
We regard responsible sourcing as a key approach to enhancing overall supply chain management. To this end we continuously
improve our supply chain management system and have formulated a “Supplier Code of Conduct” which sets out expectations
for all suppliers and contractors of us and our subsidiaries. These expectations cover business ethics human rights environmental
protection and occupational health and safety. Our management is responsible for overseeing and guiding the implementation of
responsible supply chain practices. All procurement contracts include clauses requiring partners to comply with laws and regulations
related to business ethics environmental protection and internationally recognized human rights standards. These requirements
extend to issues such as working hours living conditions minimum wages and the prohibition of corporal punishment or disciplinary
abuse of supplier employees. We attach great importance to integrity in supplier management and advocate for long-term stable and
honest cooperative relationships. Prior to the commencement of business activities all suppliers are required to sign the "Integrity
Agreement" and the "Commitment to Integrity and Legal Compliance" pledging to comply with all applicable laws and regulations.Suppliers must not solicit or offer any property kickbacks commissions or benefits of any kind to any entity or individual. Through
these practices we aim to ensure that all supply chain activities are conducted in an environmentally sustainable and ethically
responsible manner.
91 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 94
We implement a rigorous supplier onboarding and evaluation process to ensure that all Macalline In 2024
Supplier Entry suppliers comply with ESG-related requirements outlined in our responsible sourcing policy
Evaluation including business ethics and environmental protection. Macalline is committed to working with domestic and international merchants that meet high Macalline clarified the
supply standards. The company has established a strict merchant admission review mechanism responsibilities of the
that includes comprehensive evaluations across multiple dimensions such as brand image service Project Tender Management
Committee and the Bid
quality pricing product quality business integrity and blacklist history. All merchants intending to Evaluation Team and
enter Macalline must submit true valid and complete qualification documents (such as successful optimized the online
In supply chain operations project cases and financial statements) and must have no record of legal violations dishonesty contract approval workflow
inclusion on any blacklist or significant issues relating to product quality or business integrity. to enhance management
Merchants are required to comply with all national laws regulations and relevant policies meet efficiency. All new suppliers
We strictly enforce supply chain control procedures and conduct thorough due diligence during the supplier onboarding process. are required to sign the latest
industry standards and commit to ensuring their business activities comply with trade regulations version of the "Supplier
We identify and select high-quality suppliers giving priority to those with strong performance in environmental qualifications under applicable United Nations conventions. Integrity Commitment
occupational health business ethics and green and low-carbon practices. A supplier's ESG performance sustainability risk exposure Letter." Existing suppliers
Additionally Macalline has established a professional inspection and pricing review function must update this document and business relevance are key factors considered during selection. We also evaluate the maturity of suppliers' environmental and
unique to the home furnishing industry. This function conducts rigorous checks on factory based on their ongoing
quality management systems. This includes consideration of the supplier's brand reputation quality standards production capacity business engagements.qualifications merchant credentials and product standards to ensure consistent and effective Suppliers found in violation
green factory certifications and energy efficiency credentials. For suppliers participating in environmentally supported projects such implementation of relevant requirements. For suppliers interested in participating in bidding of the commitment
as aluminum recycling we apply additional scoring during the admission assessment. Macalline organizes site visits by dedicated evaluation teams. These visits include in-person failing quality or service
assessments of factory facilities equipment production capacity personnel and office spaces. assessments without
The frequency of communication is adjusted based on project needs to ensure that supplier effective rectification
engaging in behavior that
capabilities align with project requirements. For suppliers under annual framework agreements harms our interests or
group-level and regional-level negotiated suppliers top-ranked suppliers and those with potential committing illegal acts will
risks third-party institutions or internal departments conduct regular or ad hoc evaluations. have their cooperation
These evaluations cover on-site assessments and comprehensive service quality reviews to terminated and will be
ensure compliance with standards for product quality service delivery timeliness and after-sales placed on a blacklist.support. Supplier entry evaluation focuses on business compatibility company scale industry
ranking and potential risk. Suppliers that do not meet the criteria are disqualified.Business Declaration Market Primary Selection Overall Rating Supplier Confirmation We conduct regular and ad hoc online and on-site audits and evaluations to continuously monitor
Supplier supplier performance and ensure their compliance with our "Supplier Code of Conduct." These
·Report through ERP system · Conduct credit investigation · Comprehensive assessment · Confirmation and
Assessment efforts help safeguard supply chain compliance and promote sustainable development. We have and closely track changes based on credit management admission assessment
and report any abnormalities creditworthiness of the results of the and established a tiered and categorized supplier management system and implement dynamic reviews
in a timely manner performance capability comprehensive evaluation based on the characteristics of each business sector. We and our subsidiaries have developed
business qualification and of suppliers Evaluation corresponding qualification review and evaluation standards tailored to their specific industries.other related risks
These standards are used to select suppliers with strong potential for sustainable collaboration and
to enhance responsible and refined supplier management. A regular communication mechanism
has been established to facilitate ongoing engagement with suppliers. This includes periodic
evaluation meetings and on-site inspections to assess supplier performance.In real estate business
In supply chain operations
We adhere strictly to all applicable national provincial municipal and industry-specific regulations and standards. We We conduct annual supplier evaluations based on quality qualifications pricing cooperation performance and internal control risk ratings.implement the "Supplier Code of Conduct" and have established internal systems including the "Implementation Measures for These assessments determine whether to renew rectify or phase out supplier relationships. We also utilize the "E-Zhangxin" digital platform
Tender Management." These policies guide our efforts to promote supplier responsibility in areas such as safety environmental to implement real-time supplier monitoring. The platform tracks and pushes external negative information on suppliers daily with a focus on
identifying operational and legal risks. These may include dishonesty records consumption restrictions lawsuits and environmental penalties
management and employee welfare. We ensure that all procurement activities are conducted fairly and transparently and that
among others. For suppliers identified as high-risk or abnormal we conduct further investigations. Based on our control requirements we
selected suppliers possess the necessary qualifications and capacity to provide stable and high-quality services. assess the supplier's actual situation promptly provide verification feedback and issue warnings or terminate cooperation as appropriate.
93 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 96
In real estate business We attach great importance to supplier capacity building and continuously organize training
Supplier and engagement activities to enhance our partners’ awareness of sustainability and their
We have established internal systems such as the "Cost Management Standards" which define the processes and requirements for supplier Training and management capabilities. Through multiple channels such as the E-commerce system supply
evaluation tiered management and disqualification. A standardized full-lifecycle supplier management process has been implemented chain management software and regular meetings we support suppliers in strengthening
across the board. During the contract fulfillment phase we conduct tiered evaluations of suppliers and dynamically adjust management Engagement compliance optimizing operational models and improving ESG practices. These efforts ensure
strategies based on performance scores. We also conduct comprehensive assessments across multiple dimensions including operational
status workforce quality construction practices product quality service quality professional capabilities and overall collaboration. If a that suppliers align with our advocated standards as outlined in the "Code of Business Conduct"
supplier is found to be involved in commercial bribery major quality issues occupational health and safety violations or withholding of throughout the cooperation process.migrant workers' wages it will be classified as non-compliant in performance. Such suppliers will not be considered for contract renewals or
new engagements and will be barred from participating in any procurement or bidding activities for a period of two years from the date of Supply Chain Risk Management
public listing.In the face of frequent supply chain disruptions and unexpected events building an effective risk management system has become a key
priority for maintaining operational stability and competitive advantage. We have established and continuously refined our supply chain risk
Key supplier management management framework. By regularly identifying and assessing supply chain risks and developing effective response strategies we aim to
measures in the real estate Engineering Quality and Safety Assurance
ensure the stability and sustainability of our supply chain.business include:
·Contracts specify detailed requirements related to quality timelines We have formulated the "Regulations on the Composition Responsibilities and Authorization Compliance of the Risk Management
Committee" which entrusts our Board of Directors’ Risk Management Committee with the responsibility to guide and oversee supply chain
materials safety and management. Suppliers must deliver products that
risk management. The Chair of the Risk Management Committee convenes and presides over regular quarterly meetings and ad hoc sessions
meet national technical and environmental standards and must provide
Blacklist Mechanism and is responsible for the approval of bulk commodity and high-value supply chain transactions. In 2024 we established a centralized
certificates of conformity test reports and factory credentials for approval Risk Control Center at our headquarters. This center brings together core risk management functions including operations management
before goods are admitted on-site. Before construction begins suppliers logistics credit control legal affairs futures and audit. By strengthening internal collaboration among these functions we have built a unified
· In accordance with the "Engineering approach to risk prevention and control enabling us to better support the healthy development of our subsidiaries' businesses. We have also
Tender Implementation Measures" are required to provide insurance coverage for life and property safety for set up specialized group-level management centers and accelerated the delegation of approval authority. By pushing risk control measures
suppliers involved in breach of all personnel (including third parties) within the construction site. We also closer to the front lines and combining authorization with oversight we have improved management efficiency and enhanced our ability to
contract repeated safety incidents require Contractors' All Risks Insurance to enhance overall project protection.respond to supply chain risks in a timely and effective manner.poor internal audit results or violations For worker safety in addition to routine inspections by project teams third- In 2024 we continued to enhance our supply chain risk management practices through the following key initiatives:
of business ethics will be suspended party audits are conducted on active construction sites. These inspections
from qualification lists. Suppliers are follow a model of "surprise checks plus expert-assisted inspections" by a Formulated and released the "Regulations on Contract Seal Management"
evaluated monthly with feedback pool of Company-appointed specialists. Inspection standards are in line with
·We conducted a comprehensive review of contract seal management in the supply chain segment. For seals that were previously held by non-
provided based on engineering or stricter than national benchmarks with weekly and monthly inspection operational personnel we reassessed authorization procedures to ensure that seal storage and usage are standardized and strictly controlled.performance (quality safety site routines rigorous material spot-checks and immediate corrective actions.management progress) warranty Results are ranked and publicly reported. Improved compliance with international sanctions
services (response times rectification
·We developed internal trade compliance policies and launched an ERP-based international sanctions compliance control system to enable
rate satisfaction) cooperation (on-
comprehensive monitoring and ensure that our international trade activities remain fully compliant.site coordination cost support design
support) and other special matters. Wage Payment Monitoring Mechanism Strengthened compliance in relation to state-owned assets
Suppliers found to engage in bid
·At the project level we have established coordination and monitoring collusion false documentation or ·By leveraging technology we enabled intelligent detection of potentially non-compliant business transactions.mechanisms to safeguard migrant worker wage payments. General contractors
fraud will be subject to legal liability.are urged to strengthen labor management and resolve wage-related disputes Enhanced controls over new customers and new products
Responsible internal personnel will
effectively. Special accounts are created for wage payments with project funds
also be held accountable. Suppliers
allocated according to contractual terms. Labor payments are to be transferred ·We require that all new customers and new products have a clear business rationale transparent product circulation paths and fair pricing
responsible for major quality accidents mechanisms. For transactions involving clients with weak credentials unclear business origins unfamiliar products limited fulfillment
promptly and in full to the designated wage accounts. Oversight is in place to
or group complaints will be blacklisted. capabilities or high financial exposure we conduct in-depth background investigations. We apply stricter approval procedures for transactions
ensure contractors pay workers on time and in full. These measures help protect where both upstream and downstream parties are traders. Each of these cases is subject to review and sign-off by the Risk Control Director to
workers' rights and prevent wage arrears by suppliers. ensure robust risk management at the entry stage.
95 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 98
Reinforced customer risk evaluation Product Quality Management
·Our Credit Management Department and other authorized departments assess risk information collected through the "E-Zhangxin" platform
and other online sources. For clients identified with significant risks we issue a "Major Risk Alert Notice." Subsidiaries are required to assign We have always regarded product quality management as central to our business
dedicated personnel to implement the recommendations and instructions from these notices in a timely manner and report on follow-up development and are committed to building a comprehensive quality management
actions.system to deliver responsible products and services. Through the establishment of
stringent quality control procedures we ensure that our products and services meet
Strengthened joint monitoring and supervision
the highest industry standards and fulfill customer expectations for excellence. By
·For projects with early signs of risk we issue alerts to members of the Risk Management Committee and ensure strict oversight of mitigation leveraging product quality as a key driver we aim to create added value and cultivate
actions. For high-value or long-cycle projects we work closely with the headquarters Risk Control Center to provide dedicated hands-on follow- new competitive advantages in the market.up. This approach breaks down information silos and forms a strong control alliance to support project execution and risk mitigation.In supply chain operations
Enhanced market tracking
·We regularly review industry and market research reports to monitor supply-demand dynamics and track commodity price fluctuations. we adhere to the principles of professionalism efficiency quality and integrity with quality
Commodities experiencing significant price volatility or sustained downward trends are placed under focused monitoring. For selected product management at the core of our practices. Our import and export trade services have obtained
categories we conduct business reviews and encourage subsidiaries to actively clear overdue inventories within a short timeframe to improve ISO 9001 Quality Management System certification ensuring that every step from procurement to ● ISO 9001 Quality Management System Certification
turnover rates and mitigate risks. delivery meets high-quality standards.Promoted big data auditing
In real estate business
·We rolled out big data-based audit methods to overcome the limitations of traditional sampling techniques. This allows for full-scope real-time audits
and helps recover long-outstanding receivables unlock idle funds and effectively achieve our cost-reduction and efficiency-improvement goals. we strictly comply with relevant laws and regulations including the "Construction Law of the People's Republic of China" the "Regulations on the
Quality Management of Construction Projects" and the "Provisions on the Supervision and Administration of Housing and Municipal Infrastructure
Enhanced professional training Projects." We have also established and implemented a series of internal management systems such as the "Project Operation System" "Design and
Technical Specifications" "Specialized Technical Standards" "Engineering Technical Standards" "Quality and Safety Standards" "Property Handover
·We organized various supply chain risk management training and awareness initiatives. These included online risk prevention quizzes Standards" and the "Inspection and Evaluation Standards for Project Operations." These systems provide standardized guidance for critical tasks
specialized business risk training methodology workshops risk control center salons and external learning exchanges. Through these efforts
across all phases including design construction and pre- and post-delivery processes while also clarifying roles and responsibilities at all levels and
we have significantly improved our employees’ awareness and capabilities in supply chain risk prevention.defining quality control requirements for key procedures and milestones. We have built a quality evaluation system composed of two main components:
process evaluation and delivery evaluation. Third-party assessment agencies conduct systematic inspections of various stages in our ongoing and for-
sale projects forming a comprehensive framework for quality supervision evaluation and performance review throughout the entire project lifecycle.This ensures that we consistently deliver high-quality products that meet and exceed customer expectations. In addition we are embracing digital
Equal Treatment to Safety and Quality of transformation by implementing four major digital systems of the "Engineering Collaboration System" "Smart Engineering System" "Intelligent
Small and Medium-Sized Products and Services Inspection System" and "After-Sales Service System" to enable refined data-driven quality management across the entire project lifecycle.Enterprises
Consumer Protection
We strictly comply with relevant laws and regulations including Safety and quality of products and services are fundamental to
the "Law of the People's Republic of China Against Unfair sustainable business development. We attach equal importance
Providing high-quality customer service is not only a key expression of our corporate social responsibility but also a vital link in
Competition" the "Regulations on Ensuring Payments to Small to quality management and customer rights protection. By
building long-term trust. Guided by the principle of co-creating value we have developed a transparent and efficient customer
and Medium-Sized Enterprises" and the "Interim Regulations on continuously improving our control systems we ensure that
service system dedicated to delivering timely and comprehensive services to our clients. We actively respond to customer needs and
Enterprise Information Disclosure." We actively fulfill our social our products and services meet industry standards. At the same
feedback continuously improving service processes and product quality. By embedding consumer rights protection into every stage
responsibilities and strive to protect the legitimate rights and time we optimize our customer service mechanisms to ensure
interests of small and medium-sized enterprises (SMEs). that every interaction reflects our commitment to quality and of our operations we contribute to the long-term synergy between business growth and social development.builds lasting trust in our brand.
97 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 100
We place great importance on customer satisfaction and actively conduct regular visits to In real estate business
Customer key clients as well as ongoing customer satisfaction surveys. We are gradually advancing
Satisfaction the classification and tiered management of customers across our subsidiaries and tailoring We place customer needs at the core of our service philosophy and decision-making process. We have built a comprehensive customer-centered
Management services accordingly. By proactively collecting service cases optimizing service procedures service system and actively listen to customer feedback through satisfaction surveys to ensure their rights and interests are fully protected.and refining the customer service chain we ensure that customer needs are addressed
promptly and effectively.In 2024 our customer satisfaction management efforts included the following initiatives
·We formulated the "Customer Relationship Management Policy" and the "Customer Satisfaction Evaluation Scoring Weight Table" which clearly
In supply chain operations define work standards for customer surveys risk identification complaint handling property delivery and ongoing relationship management.·We released the "Guidelines for Enhancing Sales Center Management" which require sales centers to approach all services from the customer's
perspective improve service quality and client experience and establish specific requirements for environmental and client-facing services.We continuously carry out upstream and downstream customer satisfaction surveys focusing on gathering authentic feedback regarding service needs
·We operated the "Building Good House" mini program as our official one-stop online home-buying platform and the "C&D Diamond Club" mini
process experiences and management mechanisms. The survey content covers trends in customer service demands satisfaction with business process
program as a unified member service platform. These tools connect the full customer journey from lead generation to site visit transaction and after-
efficiency and expectations for the professionalization and systemization of supply chain services. The scope of our surveys spans major business sales service.segments including domestic trade import and export and re-export trade. We employ a mixed methodology of qualitative interviews and quantitative ·We enhanced the home-viewing experience through the use of digital tools such as electronic sand tables virtual reality tours promotional videos
questionnaires engaging multiple strategic partners. The questionnaires are directed toward key personnel in supply chain-related departments such as and digital brochures.procurement sales finance logistics and documentation. Based on the results of these surveys we continue to strengthen our internal management ·We incorporated customer satisfaction scores into the performance evaluation of relevant departments.·We provided training for sales personnel with a requirement that only certified individuals who pass assessments are allowed to interact with
and service capabilities across four core areas of customer service management: service monitoring demand management standard management and
customers. We also refined third-party sales risk screening and mystery shopper inspection standards and conducted random inspections and risk
service assurance with the goal of continuously improving customer satisfaction.assessments of projects within our management scope. Rectification actions were promptly followed up to continuously improve customer
experience and satisfaction.In 2024 our customer satisfaction management initiatives included the following
·Our Steel Group’s logistics division conducted a satisfaction survey on the "self- In 2024
managed warehouse" service focusing on cargo ownership risk control operational We have established a comprehensive customer complaint management system to ensure that all
efficiency service attitude and pricing standards. A total of 136 valid questionnaires were Customer
customer concerns receive timely and effective responses. This system is supported by diversified
collected and analyzed to provide data support for future service improvements. Pulp and Paper Group collected Complaint
·Our Pulp and Paper Group collected 514 valid questionnaires through the "E-Pulp" and complaint channels and standardized handling procedures. To improve efficiency and satisfaction valid questionnaires
"PaperSource" platforms. Based on customer feedback we continuously optimized the 514 Management in complaint resolution we have also implemented a regular training mechanism for complaint
online transaction process enhanced the help center functions and improved customer through the "E-Pulp" and
"PaperSource" platforms handling. These training sessions aim to strengthen the skills of relevant personnel in identifying
service response times to achieve a better match between customer needs and service
issues communicating effectively and providing timely solutions.delivery.·Our Automotive Group launched a new Customer Operations Center structure in January Automotive Group collected a total of
2024 adding roles such as Customer Manager and Customer Experience Specialist. Using In our real estate business we have built a systematic customer complaint handling process.
digital dashboards exception handling mechanisms and a satisfaction tracking system 7480valid responses Customers can file complaints through both online and offline channels including our national
we achieved real-time monitoring and rapid response. In 2024 we distributed targeted
service hotline the "Diamond Club APP" and WeChat-based channels such as the customer
customer satisfaction surveys through our tracking system and collected a total of 7480
valid responses by year-end with a response rate of approximately 52%. relations hotline "Customer Ambassador" account and "Property Consultant" account. Once a with a response rate of approximately
·Our Consumer Products Group’s liquor company conducted a survey as part of the complaint is received we contact the customer within 2 hours and provide a resolution plan (within
"Social Media Empowerment: A New Banquet with Friends" campaign. In response to 52% 24 hours for major complaints). All complaints are resolved within 3 days and a satisfaction follow-
feedback from distributors regarding challenges in content creation and video
up call is made within 48 hours after resolution. Every month we analyze the volume of complaints
production we provided AI-based creative training and access to a media asset library to
enhance brand communication effectiveness. by category identify trends in recurring issues and track resolution outcomes. A detailed report is
generated and shared with relevant departments who are required to implement improvements.This process ensures that every piece of customer feedback is handled promptly and effectively.
99 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 102
Data Security and Customer Privacy Protection
● Information Security Emergency Management
We place great importance on information security and 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
We have formulated the "Cybersecurity Incident Emergency Response Policy" to establish a scientific effective and rapid-response emergency
Information Protection Law of the People's Republic of China." By continuously enhancing our information security management
mechanism. This policy clearly defines the procedures for responding to information security incidents. In the event of an incident that may
system and implementing a range of control measures we strengthen our internal information security management and elevate our cause significant or serious harm to the Company it must be immediately reported to the Cybersecurity Leadership Group. Prompt and effective
overall capability to safeguard corporate data and protect customer privacy. technical measures are then taken to handle the situation. After the incident is resolved we conduct a comprehensive analysis and prepare a
report detailing the cause resolution process and corrective measures ensuring that necessary improvements are implemented. We regularly
organize emergency drills to enhance our incident response capabilities. For information systems classified under Level II or Level III of the
graded protection system we conduct at least one data recovery verification and emergency response drill each year to ensure our ongoing
Information Security Management preparedness.We have established internal policies such as the "Information Security Policy" the "Cybersecurity Management System" and the
"Information Technology Management Guidelines" to guide and regulate our information security practices. These policies cover all In 2024 our information security emergency management initiatives included the following
major areas including system security content security endpoint protection routine network maintenance emergency response to
security incidents and company-wide security awareness training. To safeguard the security and controllability of our data code · We engaged third-party cybersecurity experts to conduct penetration testing and red-blue team exercises. By simulating real-world
and server operations we have implemented a range of technical safeguards. These include the deployment of ACL firewalls and attack and defense scenarios we carried out in-depth security testing of our information systems identified vulnerabilities within our
web application firewalls at the network layer secure operation and maintenance auditing systems and the adoption of cloud-based cybersecurity framework and promptly addressed and remediated the discovered risks. These efforts helped us optimize our network
development environments. These measures help us mitigate risks of malicious cyberattacks and data breaches. defense systems and improve our ability to respond to cybersecurity emergencies.· Our subsidiary C&D Real Estate conducted data backup recovery drills every six months to ensure the integrity and effectiveness of
In 2024 we revised the content of our "Cybersecurity Management System" to better reflect practical needs in information security backup data. In addition unscheduled cybersecurity drills were organized to identify issues in real time improve emergency response
management. The revised policy further clarifies responsibilities for IT personnel requirements for cybersecurity training protocols plans and continuously enhance our emergency management capabilities.for personal information collection and use as well as standards for data deletion and media disposal. We also completed a series of
technical upgrades to enhance our cybersecurity capabilities. These include the implementation of a data backup and ransomware
prevention system upgrading the VPN perimeter firewall expanding our network situational awareness system increasing capacity
for secure cloud desktop environments deploying endpoint access control and antivirus software upgrading server security
defenses and scaling our privileged access management systems. As a result of these efforts we have significantly strengthened
the resilience of our information systems. Several of our systems have already achieved Level II and Level III certifications under the
national graded protection system. ● Information Security Risk Assessment and Supervision
We continuously strengthen the management of information security risks and potential vulnerabilities by conducting inspections assessments
and analyses. Risks are classified according to their scope and severity so that corresponding prevention measures can be developed and
● Information Security Management Structure implemented. We enhance our supervisory mechanisms through regular cybersecurity inspections and IT audits conducted by third-party
agencies. These efforts effectively reduce our exposure to information security risks and ensure the ongoing security and stability of our systems.Our Cybersecurity Leadership Group is responsible for coordinating guiding and supervising our information security management efforts.The group is chaired by our Deputy General Manager with the General Manager of the Digitalization Center serving as Deputy Chair. The group In 2024 our information security risk assessment activities included the following
is tasked with formulating the basic information security management policies improving the security protection system making key decisions
Information Security Risk Assessment
on information security matters ensuring network security protection and early warning monitoring and organizing security audits and the Third-Party IT Audit
follow-up of corrective actions. At the subsidiary level the designated heads of IT or IT specialists serve as cybersecurity liaisons. They are · We conducted comprehensive Information Security Inspections
responsible for implementing information security policies and measures identifying and reporting potential cybersecurity risks executing · We commissioned independent audits penetration testing on 15 key business
· We identified nearly 40 security
corrective actions and raising employee awareness and capabilities in cybersecurity. Each year we set annual information security targets and covering our core business systems. systems. In addition we performed
vulnerabilities and submitted 555
objectives. We assess the performance of relevant departments and personnel through self-evaluations and reviews conducted by higher-level All identified risks have been addressed monthly vulnerability scans
security-related work orders. Of
units. Subsidiaries also establish their own security goals based on business needs and incorporate these targets into the annual performance and mitigated significantly improving focusing on system vulnerabilities
these 416 have been successfully
evaluations of responsible personnel. To further reinforce our management system we have established clear and accessible channels for the security and stability of our web application flaws and weak
rectified.employees to report or escalate any information security issues. We actively encourage staff to raise concerns directly with their supervisors or information systems. password issues.the appropriate departments ensuring early detection and resolution of security risks.
101 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 104
Responsible Marketing
● Information Security Education and Training We strictly adhere to the relevant marketing laws and regulations of the country and region such as the "Regulations on the Management
of Retail Promotion Activities" the "Anti-Unfair Competition Law of the People’s Republic of China" and the "Advertising Law of the
People’s Republic of China." We uphold the principles of integrity fairness and transparency ensuring that marketing activities not
We promote information security awareness across the organization through diversified communication channels and training formats. Our goal only promote brand development but also protect consumer rights and the public interest aiming to create a healthy and orderly market
is to help all employees better understand cybersecurity principles and ensure full compliance with our internal security policies. environment.In 2024 our information security training initiatives included the following In supply chain operations
· We used platforms such as "WeCom" and "E-Jianxue" to share cybersecurity news phishing scam prevention tips and real-life fraud We always uphold a responsible marketing philosophy focusing on content compliance and value orientation while continuously
case studies. These efforts helped raise employees’ awareness of cybersecurity threats and preventive measures. improving the professionalism and standardization of content communication.· We organized specialized technical training sessions for project development leaders covering topics such as the evolution of security In 2024 we organized a professional training on "The Application of AIGC Technology in Content and Value Creation" inviting
architecture analysis of insecure coding practices common vulnerability exploitation techniques and the use of security testing tools. industry experts and internal trainers to explain the application norms and practical experiences of AIGC technology to more than 100
· At C&D Real Estate we provided comprehensive information confidentiality and data security training to all new employees to ensure a brand and related personnel. This training strengthened the brand team's understanding of content production and legally compliant
solid foundation in security awareness from the outset. communication under emerging technologies ensuring that content creation meets the responsible marketing requirements.Additionally we organized an employee visit to Tencent's ESG office to exchange ideas on the integration of corporate social
responsibility and brand communication further expanding the vision and practical pathways of responsible marketing.In real estate business
We have developed and implemented internal systems and inspection standards such as the "Real Estate Development and Sales
Customer Privacy Protection Management System" "Brand Management System" "Marketing Customer Relationship Brand Tendering Guidelines" and "Marketing
Inspection and Evaluation Standards." These define the basic principles minimum requirements and responsibilities for compliant
marketing and honest sales while also taking multiple measures to practice responsible marketing. At the same time we maintain an
We strictly adhere to the "Cybersecurity Law of the People's Republic of China" the "Measures for the Administration of Security Protection accessible whistleblower hotline to accept public reports on illegal or non-compliant behavior in the marketing process and handle
of Computer Information Networks" the "Personal Information Protection Law of the People's Republic of China" and other relevant these reports in a timely and fair manner in accordance with our internal systems.laws and policies. Based on these we have developed our "Privacy Statement" and "Code of Business Conduct" which clearly define the
scope of customer information use retention periods and the rights customers have regarding their personal information throughout We have established strict management measures for marketing activities
the business process. We collect use and retain only the personal information of employees customers and other stakeholders that is
necessary for legitimate business purposes. We disclose such information to third-party partners only when legally required with the clear Improved ·We have formulated and implemented the "Marketing Inspection and Evaluation Standards" and established a "Three
consent of the stakeholder or when necessary to provide services to the stakeholder. Throughout the information collection and usage systems and Rounds of Review and Proofreading" process to rigorously control the accuracy authenticity and compliance of
process customers have the right to explicitly consent or refuse and may request to access correct delete or transfer their personal data. management promotional and marketing content. We enhance content review through the "Approval System for Brand Implementation
processes
We also commit to retaining customer information only for a reasonable period in accordance with applicable laws and business needs and Promotion" and conduct annual audits of subsidiary companies' new media accounts.and we implement a series of strict measures to ensure the security and confidentiality of all customer data.Regulating ·Sales personnel are prohibited from exaggerating or making arbitrary promises. Property consultants must fill out the
sales "Behavior Risk Checklist for Property Consultant" at the end of each month which is reviewed and confirmed by the
In supply chain operations behavior project marketing manager.We protect the information of employees customers and suppliers through measures such as information asset management Strengthening
·We regularly conduct inspections at the headquarters clusters and business units focusing on key areas such as sales
and information security inspections preventing unauthorized access data leakage loss or damage. All new employees receive on-site
contracts sales materials and sales displays and carry out spot checks as needed. We also conduct special risk
mandatory training on confidentiality and are required to sign a confidentiality agreement reinforcing their awareness of marketing risk
control investigations on sales language service standards and consistency of delivery promises.responsibilities related to customer privacy protection.Providing ·We set up risk alert signs at sales offices exhibition areas model rooms and other locations. Each project publicly
In real estate business customer risk displays potential adverse factors in prominent areas and clearly reminds customers in negotiation areas that verbal
alerts promises made by sales personnel are not legally binding. The official agreement is always subject to the written contract.We collect and consolidate customer information through internal digital systems to reduce reliance on paper documents and avoid
Implementing
data leakage due to poor physical file management. Access to customer data is strictly restricted. We have established clear rules ·We conduct quarterly marketing compliance checks and include the results in the performance evaluation of marketing process
prohibiting anyone from accessing retrieving or transferring customer information across business units without prior authorization. managers. Special audits are carried out regularly. Additionally we commission third-party companies to conduct supervision
undercover visits to ongoing projects each month to check on reception etiquette consistency of statements and material
Relevant personnel must promptly destroy or delete customer confidential information after use thereby reducing the risk of privacy and evaluation
compliance and provide feedback for corrective actions.breaches. feedback
103 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 106
Supporting Industry Development Highlight Highlight
In November 2024 the second China International Supply In November 2024 the "2024 Xiamen International
We adhere to the principles of openness collaboration and sustainable development. We actively participate in the drafting and
Chain Expo hosted by the China Council for the Promotion Coffee Fair" was held in Xiamen. During the event our
formulation of national and industry standards strengthen cooperation within the industry chain share our corporate industry
of International Trade was held in Beijing. We showcased subsidiaries C&D Light Industry and C&D Merchandise
experience and achievements promote technological innovation and knowledge exchange and contribute to the high-quality
our latest developments in specialized international showcased cutting-edge coffee production processes
development of the industry.new energy and new consumption sectors at the "Supply high-quality raw materials and advanced equipment.Main Industry Associations Involved Chain Services Exhibition Area." Our subsidiary C&D This comprehensive presentation highlighted our latest
Merchandise partnered with strategic ally Fonterra to achievements in product research and development
present at the "Green Agriculture Chain Exhibition Area." technological upgrades and service innovations.No. Association Name Position Through this collaboration we actively demonstrate our Additionally we collaborated with upstream and
commitment to sustainable development and engage downstream partners in the coffee industry as well as
1 China Federation of Logistics & Purchasing Vice President in in-depth discussions with industry peers exploring leading beverage companies to establish an industry
new cooperation opportunities to jointly build a greener collaboration platform. Through technical exchanges and
2 Xiamen Modern Supply Chain Association President future. resource integration we aim to promote collaborative
upgrades across the entire industry chain.
3 China Chamber of Commerce for Import and Export of Textiles Executive Director
4 China Chamber of Commerce of Metals Minerals & Chemicals Highlight Highlight
Importers & Exporters Director
5 China Chamber of Commerce for Import and Export of Machinery
and Electronic Products Director
In September 2024 the "2024 National Supply Chain In September 2024 the "2024 Go-Global Summit" hosted
6 China Chamber of Commerce for Import and Export of Light
Industrial Products and Arts-Crafts Director Innovation Exhibition" was held in Xiamen organized by C&D Group and organized by C&D Inc Bajiuling Cultural
Statistical Society for Foreign Economic Relations and Trade of by the China Federation of Logistics & Purchasing. The Creativity and C&D Exhibition was held in Xiamen. The 7
China Director company showcased its services and value across various forum attracted over a thousand participants including
stages of the industrial supply chain under the theme of experts scholars business representatives chamber
8 Xiamen Import & Export Chamber of Commerce Vice President "New Quality Productive Forces." Using AI large models associations and media representatives. Focusing on the
industry sandboxes digital cloud spaces and digital theme of "Supply Chain + Going Global" the forum aimed
9 Chamber of International Commerce Xiamen Vice President
employees like "Yiling" for guided tours the company to enhance the security and stability of the supply chain
10 Special Supervision Area Association of Xiamen Customs District Permanent Vice President engaged with attendees to discuss new trends in global promote the positive voice of "Chinese investment"
supply chain development and explore collaborative and inject new momentum into accelerating Chinese
11 China Chamber of Commerce of I/E of Foodstuffs Native Produce Member innovations in supply chain and industrial chain companies' embrace of globalization.
and Animal By-products (CFNA) cooperation.
105 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 108
We have established management systems such as the "Human Resource Management Regulations"
Employees Recruitment to ensure compliance and fairness throughout the recruitment process. To prevent potential risks of
Management non-compliance during recruitment we implement a "relative clause avoidance" mechanism and
strictly follow management procedures for each step including interviews assessments background
We have always regarded employees as the core of the company's sustainable development adhering to a people-oriented checks and recruitment approvals. We respect the personality and dignity of every candidate and
management philosophy. We continuously optimize the employee development system focusing on the growth and well-being of our recruitment decisions are based on professional qualifications personal skills and overall qualities
staff. We are committed to providing equal employment opportunities and ample development space for employees promoting the ensuring that the interview evaluation and hiring process are fair and consistent. We encourage a two-
organic integration of personal value and corporate goals thus laying a solid foundation for the company's sustainable development. way selection process promoting the best match between talent and job roles.As of December 31 2024 we have a total of 47422 employees with the following employee structure:
7.78%
··
Human Rights Protection 27.29%37.20%
■ Under 30 years old
We respect the "International Bill of Human Rights" and follow internationally recognized human rights standards and guidelines 62.80% ■ 30 to 50 years old ■ Male
including the "UN Guiding Principles on Business and Human Rights" the "Universal Declaration of Human Rights" the "UN 64.93% ■ Over 50 years old■ Female
·
Convention on the Rights of the Child" the "ILO Declaration on Fundamental Principles and Rights at Work" and the "UNICEF
·
Children’s Rights and Business Principles." We strictly comply with relevant national laws and regulations to protect and support
the rights of our employees. To promote the implementation of human rights protection we have developed policies such as the
"Human Rights Policy" and the "Anti-Discrimination and Anti-Harassment Policy" respecting and protecting the basic rights of all ■ Management 3.65% 0.20%
· 4.07% Personnel ·
groups including employees suppliers local community residents children and other parties who may be affected by our business
■ Business
operations. We have established a communication mechanism with local communities employees government agencies investors 5.78% Personnel
and other stakeholders to identify potential human rights risks regularly. We focus on the rights of vulnerable groups and provide ■ Technical
Personnel
human rights protection training for employees and contractors to ensure the implementation of our human rights policies and 18.97%
■ Financial
mitigate related risks. In 2024 there have been no incidents of child labor forced labor or human trafficking that violated our human ■ China Personnel
■ Others
rights policies in our global business operations. ■ Administrative
67.52% Personnel 99.80%
·
·
Equal Employment
·
We comply with the "Labor Law of the People's Republic of China" the "Labor Contract Law of the People's Republic of China" and
other employment laws and regulations of the countries and regions where we operate. We are committed to lawful employment
fair employment practices and equal pay for equal work ensuring that wages meet or exceed the minimum legal standards. We 26.99%
strictly prohibit and resist all forms of forced labor child labor slavery and human trafficking and are dedicated to creating an
equal inclusive and diverse working environment. In the recruitment placement compensation performance evaluation and
■ Male Management
promotion processes we do not discriminate against candidates or employees based on their race religion gender age sexual
73.01% ■ Female Management
orientation disability nationality cultural background or other personal characteristics. We ensure that female employees and
·
qualified employees with disabilities have equal pay benefits and employment opportunities. We oppose any form of discriminatory
employment practices and provide equal opportunities for work and advancement.
107 Xiamen C&D Inc. 2024 Sustainability Report
Employee Age Distribution Employee Nationality Distribution
Employee Gender Distribution Employee Professionism Distribution Management Gender DistributionEnvironmental Social Governance Appendix 110
We strictly adhere to relevant laws and regulations and have established a standardized
Exit Democracy and Freedomresignation management process. When an employee expresses an intention to resign we
Management arrange exit interviews with their direct supervisor department head and human resources
We prioritize open communication with our employees respecting their democratic
personnel to gain a comprehensive understanding of their reasons and concerns. For talent In 2024
rights and freedom of association as granted by the Constitution and legal regulations.with high-potential key business personnel or management staff we actively implement Our "Human Resources Management Regulations" clearly define the fundamental rights
Our trade union representatives
retention measures through internal coordination and communication. Additionally we of employees encouraging them to express diverse opinions and ideas to contribute to
reviewed and signed a collective
conduct monthly analysis of employee turnover to closely monitor workforce stability. the company’s sustainable growth. We actively promote collective consultation and agreement covering various
mediation mechanisms establish trade unions in accordance with the law and hold
employment terms including
regular employee representative meetings. To regulate daily union operations we have
remuneration systems minimum
formulated the "C&D Inc. Trade Union Federation Management Regulations" ensuring
wages social insurance working
Anti-Harassment and Anti-Bullying employees' rights to information participation management and supervision. By hours workplace safety occupational
leveraging online surveys we gather employee feedback extensively and maintain a
environment and protections for
structured communication mechanism with our subsidiaries. This not only facilitates the
female employees. This agreement
We are committed to fostering a diverse and inclusive work environment ensuring zero tolerance for any form of harassment or dissemination of strategic and corporate cultural values but also helps us understand applies to all employees across the
employees' concerns and frontline needs providing valuable insights for optimizing
bullying. We strictly prohibit violence insults defamation or any actions that disrupt social order including but not limited to speech company.management decisions. In 2024 our trade union representatives reviewed and signed
gestures or behaviors that infringe on the dignity and freedom of others. Abuse of authority or any improper interference with a collective agreement covering various employment terms including remuneration
employees is strictly forbidden. We stand firmly against bullying and harassment safeguarding every employee’s right to respect systems minimum wages social insurance working hours workplace safety
and personal freedom. occupational environment and protections for female employees. This agreement
applies to all employees across the company.Employee Complaints and Protection Employee Development
We have established clear complaint and appeal channels in our "Human Resources Management Regulations" to address any We have established management policies such as the "Human Resources Management Regulations" "Compensation and Benefits
suspected violations of our "Anti-Discrimination and Anti-Harassment Policy." Employees who experience such behavior can report Management Regulations" and "Regulations on the Management of Rewards and Punishments" to ensure fair recruitment
their concerns to the Human Resources Department the company’s labor union or escalate their complaint to the relevant promotion compensation benefits and occupational health protection. We place great importance on employee training and
functional departments or senior management. The responsible department must initiate an investigation and provide feedback personal development adhering to the principle of meritocracy and providing ample career development opportunities and learning
within five working days. We are committed to protecting the confidentiality of all victims and complainants ensuring that no resources. For personal career growth we implement a multi-tiered job classification system that covers various levels from entry-
retaliatory actions occur. To reinforce the implementation of our anti-discrimination and anti-harassment policy we take proactive level to senior management to meet the needs of different positions and employees' career development paths. We have also
measures such as strengthening internal management establishing oversight mechanisms maintaining transparent complaint and established a dual career development pathway "Professional + Management" and adhere to a performance-driven approach of
appeal channels conducting effective training programs and guiding employees toward appropriate workplace conduct. Through "promoting the capable rewarding the excellent adjusting the underperforming and eliminating the unfit." This approach fosters
these efforts we strive to foster a positive and healthy corporate culture and work environment. organizational vitality and provides a platform for employees to realize their full potential.If the investigation confirms
Suffer from Submit a complaint that discrimination or
The person handling the
discrimination or through the company's harassment has occurred
union or human resources case will immediately
Employee Compensation and Benefits
harassment or witness appropriate disciplinary
others suffering from department or report to
conduct an investigation
actions will be taken against
discrimination or the company's complaint
and provide necessary
the involved employee
handling email providing support and reassurance
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
harassment. in accordance with the
relevant evidence. to the victim and their company's internal policies and other relevant laws and regulations. We have established management policies such as the "Human Resources Management
family.and relevant laws and Regulations" "Compensation and Benefits Management Regulations" and "Regulations on the Management of Rewards and
regulations.Punishments" to ensure that employees' working hours including those of female employees during breastfeeding pregnancy and
maternity leave as well as their working environment fully meet legal requirements. We provide employees with competitive salaries
and benefits ensuring that wage levels are not lower than the minimum standards set by law.
109 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 112
We have established a compensation structure centered on salary supplemented by allowances Highlight Lactation Room Highlight Employee Financial Assistance
Performance- bonuses and benefits. We regularly monitor and evaluate market trends and industry levels to
based review the reasonableness of compensation settings ensuring employees are offered competitive
and fair compensation and benefits. A scientific and diverse performance evaluation system We provide a lactation room for female employees We have established a corporate relief fund to provide Compensation
helps employees understand work targets and expectations evaluating their performance equipped with water dispensers refrigerators sofas etc. necessary financial assistance to active employees (or
capability and attitude during the assessment period identifying weaknesses and providing their spouses children parents parents-in-law and other
guidance and support. This aids in planned work improvement and serves as an objective basis family members) and retired employees who face financial
for decisions on rewards promotions and appointments. Performance assessment indicators difficulties due to a diagnosed critical illness major
related to sustainable development topics like innovation risk management work safety and unexpected events or severe physical disabilities. This
quality improvement are integrated into departmental and employee performance assessments initiative aims to support them in overcoming challenges
motivating employees while ensuring effective implementation of sustainable development caused by unforeseen circumstances or serious illnesses.policies. In 2024 we strictly adhered to national laws and regulations as well as our internal
compensation management system to ensure the timely and fair payment of employees' wages
fully safeguarding their labor remuneration rights.Management personnel Other personnel
● Lactation Room
·Performance evaluations are conducted ·Performance evaluations are conducted
through multiple dimensions including through objective management where
business performance assessments work goals and key indicators are set
personal debriefing democratic and results are assessed and feedback is
evaluations and interviews. provided.Highlight Women's Care Month
Every March C&D Real Estate organizes a series of activities for Women's Care Month celebrating the contributions of female employees.Through the "She-Power" campaign we highlight the personal achievements and professional excellence of women across different
We care about our employees’ fundamental needs in physical and mental well-being critical illness business sectors and positions recognizing their vital role in the company's growth. Local trade unions arrange activities such as spring
Employee medical care working conditions family caregiving breastfeeding and childcare and have established outings handicraft workshops flower arranging and fitness sessions to help female employees relax and enhance their well-being. On
Benefits a long-term benefits plan. In addition to statutory benefits such as social insurance and housing International Women's Day the company cafeteria also offers specially curated meals for female employees promoting health and well-
funds we have implemented a corporate annuity system and provide group commercial insurance being through thoughtful dietary choices.(including overseas insurance). We also offer various allowances including business travel housing
relocation communication professional title/certification teaching part-time work management
trainee high-temperature/cold-weather meal holiday and special position allowances (such as night
shift). Additionally we provide health management services and employee engagement activities
through our labor union. Beyond statutory holidays we grant employees annual leave marriage leave
maternity/paternity leave caregiver leave parental leave breastfeeding leave bereavement leave
sick leave and personal leave. The duration of these leaves is adjusted based on employees’ tenure
and national regulations to accommodate different needs helping employees balance work and life
while enhancing job satisfaction and well-being. We encourage employees to take their entitled leave
and salaries for annual leave marriage leave paternity leave bereavement leave and breastfeeding ● Women's Care Month Activities
leave are paid as normal working wages. In 2024 the total paid parental leave taken by our employees
amounted to 7799days.
111 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 114
Talent Cultivation Highlight青年Th干em部a成tic 长Lea社rn群ing“ P青roj年ect荟s ”项目
We continuously promote the improvement and enrichment of our talent development system In 2024 In 2024 we organized 70 senior executives from the supply chain operations business line to attend thematic learning sessions and industry
fostering a progressive learning-oriented organization. We have established an employee visits at Tsinghua University PBC School of Finance. The courses focused on topics such as artificial intelligence global trade patterns
training system composed of a competency framework curriculum system instructor system and the RMB internationalization. The training combined short-term courses with specialized seminars aiming to broaden the strategic
We conducted a total of
operational system and learning platform. Our training programs cover fundamental business perspectives of our executives learn from advanced practical experiences and enhance their overall decision-making capabilities.training specialized training risk prevention series training new employee induction camps 25048training sessions
key personnel training programs and mid-to-senior management training. A dedicated training
Highlight青年干部成长社群“青年荟”项目
center has been set up at our headquarters along with multiple training plans to provide Management Skills Enhancement Training
employees with diverse learning opportunities enhancing their professional expertise global Accumulating
perspective and risk awareness. In 2024 we conducted a total of 25048 training sessions 1387623 We provided offline training for 167 employees newly appointed to management positions covering topics such as corporate culture
accumulating 1387623 training hours benefiting 531822 participants. training hours integrity in professional conduct team management and role transition. This training helps the new managers adapt to their role changes
establish a management mindset and acquire essential management skills. The aim is to build a workforce with strong cultural alignment
In addition we regularly conduct internal recruitment activities each year based on the excellent professional ethics effective collaboration and high adaptability.Benefiting
talent needs of key positions and newly established departments. For employees who are
not well-suited to their current positions but demonstrate strong performance and excellent 531822participants
qualifications our HR departments at all levels actively assist in finding other internal Highlight青年"F干lag部sh成ip 长Em社pl群oye“e"青 Tr年ain荟in”g P项ro目gram for Management Trainee
development opportunities. This ensures a better alignment of talent with the right roles and
provides employees with continuous learning and career advancement platforms. While meeting
The "Flagship Employee" training program focuses on corporate culture product concepts and business fundamentals. Centered around
the talent needs of critical positions and newly established units we also offer employees new
the theme of cultural integration the program uses a variety of methods including lectures executive sharing sessions project visits team-
opportunities for career development. In recent years our internal recruitment activities have
building activities knowledge competitions and discussion forums. The goal is to help newly hired management trainees deepen their
attracted approximately 100 participants.understanding of the company’s overall situation and cultural values assisting them in quickly transitioning from "campus individuals" to
"C&D people" within the company.Highlight青年"Y干ou部th 成Ga长the社rin群g"“ Pr青og年ram荟 o”f Y项ou目th Cadre Development Community
Highlight青年"B干la部cks成to长ne 社Pla群n"“ Tr青ain年in荟g P”rog项ra目m
In 2024 we launched the "Youth Gathering" program for young cadres in the supply chain operations business field. Throughout the year
we held 12 internal sharing sessions called "Late-Night Knowledge Hall" and 5 expert-led "Big Names at Noon" courses. These activities The "Blackstone Plan" training program includes two major modules: "Blackstone Plan- Advanced Marketing Bootcamp" and "Blackstone
promoted understanding and communication between business and functional departments expanded the horizons of young cadres Plan - Project Management Enhancement Class." Through the organic integration of customized courses and practical activities the
and enhanced their overall skills and capabilities. The program aims to cultivate young talent with management potential and leadership program aims to systematically improve employees' professional abilities and practical skills in the fields of marketing and project
qualities for the company. management.Highlight青年干部成长社群“青年荟”项目 Highlight青年"S干te部llar成 Sp长rin社t B群oo“tc青am年荟”项目"Team Building" Training for Key Business Talents p" Program
The "Stellar Sprint Bootcamp" program with the theme "Fearless and Purposeful" focuses on the recruitment and systematic
In 2024 we organized a 4-day "Team Building" training for 117 key business talents. The training utilized internal sharing discussion
development of outstanding graduates. It aims to optimize the company's talent structure and reserve youthful strength for the industry.sessions team-building exercises and external expert lectures to help participants gain a deep understanding of the value of teamwork
The program builds a specialized curriculum system around industry background company culture job responsibilities and career
improve organizational awareness and overall skills and cultivate a reserve cadre team with development potential.development paths and helps participants acquire industry knowledge and accumulate practical experience through professional
instructor guidance and systematic course arrangements.
113 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 116
Highlight青年"E干-L部ear成nin长g"社 O群nlin“e 青Tra年ini荟ng” Pl项atf目orm Highlight青年"L干ift部 Yo成urs长elf社" S群um“m青er年 Int荟er”nsh项ip目 Program
We have built the "E-Learning" online training platform to provide employees with high-quality online educational resources. The platform Based on the principles of openness inclusivity and diversity we regularly hold the "Lift Yourself" internship program every summer. This
offers courses in various themes including "TOEIC English" "Big Trends" "Financial Empowerment" "Overseas Markets" "Industry Insights" program is open to students from universities around the world with no restrictions on nationality or major. In this program each intern is paired
"Leadership Zone" "International Exchange Rates" and "Frontline Information." Employees can select courses based on their job requirements with a mentor who provides one-on-one systematic training and extension activities. We also organize practical tasks field visits and other
position level and personal interests and participate in self-directed learning. By December 2024 we had launched 1303 online courses on the internship activities. The interns' work performance during their time with us is recorded assessed and evaluated. Upon completion eligible and
"E-Learning" platform with an average learning time of 62.5 hours per person and an average of 1910 learners per course. high-performing interns may be offered opportunities for full-time employment through campus recruitment and they can become campus
In 2024 we launched the "TOEIC English" learning and exam preparation section on the "E-Learning" platform strengthening the language ambassadors and receive internal referral qualifications along with generous referral bonuses. In 2024 59 students from universities such as
foundation for the international development of our employee workforce. A total of 25 TOEIC exams were organized throughout the year Tsinghua University Peking University Fudan University Renmin University of China Huazhong University of Science and Technology Xiamen
with 988 participants. The excellence rate (800 points and above) reached 31%. University Central South University and Beijing Foreign Studies University participated in the "Lift Yourself" summer internship program.In 2024
We had launched We had organized a total of The excellence rate (800 points and above) reached
1303 25TOEIC exams 31% Occupational Health and Safety
online courses on the "E-Learning" platform
We prioritize work safety and employee health adhering to the principles of "safety-driven services strategy-guided management" and the
policy of "safety first prevention-oriented and comprehensive management." We have developed the "Occupational Health and Safety
School-Enterprise Collaboration Policy" which was discussed and approved by the Employee Representative Congress and endorsed by the Chairman. We continuously
optimize internal systems such as the "Regulations on Work Safety Management" "Guidelines for the Construction of Work Safety
We continue to deepen our relationships with universities with the scale of our partner institutions expanding year by year. We are Management System" "Work Safety Regulations of Party and Government Joint Responsibility Dual Responsibility for Each Post Joint
committed to enhancing the communication connectivity and trust between the enterprise universities and students. We actively Effort for Management and Accountability for Negligence" "Regulations on Reporting Major Safety and Stability Issues and Emergencies"
explore and build a new model of collaboration between industry and education opening up practical effective and feasible new paths "Work Safety Education and Training System" "Hazard Identification and Control System" " Safety Management Measures for Large-Scale
for talent development. We have signed cooperation agreements with many institutions including Peking University Xiamen University Event" and "Overseas Institutions and Personnel Safety Management Regulations." These efforts aim to enhance our occupational health
Dalian Maritime University Ocean University of China Fuzhou University Jinan University Nankai University Central University of Finance and safety management system and reduce various health and safety risks to the minimum ensuring the occupational health and safety of
and Economics and the University of International Business and Economics. In 2024 to meet the development needs of key regions such our employees. Additionally through the "Supplier Code of Conduct" we encourage suppliers to establish and improve their occupational
as Southeast Asia South America Europe and Africa we strengthened our overseas recruitment channels primarily through campus health and safety protection systems strengthen safety management responsibilities and clarify specific preventive measures to effectively
recruitment headhunter channels and websites supporting units at all levels in recruiting foreign or expatriate talent. At the same time we reduce the risk of occupational diseases and work-related injuries. This ensures that the health and safety of their employees are protected
continue to accumulate experience in overseas employment conduct ongoing research into labor policies and talent environments in key in line with our "Regulations on Work Safety Management." In 2024 we revised and improved the "Guidelines for the Construction of
regions and improve our overseas employee commercial insurance system to safeguard our employees' international careers. Work Safety Management System" in alignment with international standards such as ISO 45001 and OHSAS 18001 further improving our
occupational health and safety management system and enhancing the overall level of safety management.Highlight青年Re干cr部uit成me长nt社 at群 Ho“ng青 Ko年ng荟 Ca”m项pu目s
Campus recruits with an international perspective are a key force in supporting our future innovative development and success. The
Guangdong-Hong Kong-Macau Greater Bay Area with its high degree of openness and strong economic vitality has attracted a large
number of young talents. We have made Hong Kong our first destination for overseas recruitment marking the “starting whistle” for the
introduction of international talent. In 2024 our recruitment team went to Hong Kong for on-site recruitment and exchanges successfully
hiring 12 graduates from universities such as the University of Hong Kong Chinese University of Hong Kong City University of Hong Kong
Hong Kong Polytechnic University and Hong Kong University of Science and Technology.
115 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 118
Wok Safety Management Organization Risk Management for Work Safety
We strictly adhere to the "Work Safety Law of the People's Republic of China" and have established a Work Safety Management Committee We strictly implement and continuously optimize the "Work Safety Management System on Risk Classification and Hazard Inspection" to
as the core body responsible for work safety management. The committee is chaired by the General Manager with the Deputy General systematically identify major hazard sources and enforce corresponding risk classification control measures. To enhance workplace safety
and reduce injuries and accidents we have designated gas systems elevators high-rise fire safety and hazardous operations (hot work
Manager and the General Managers of key safety units serving as vice-chairs. Additionally we have established a three-tier safety
confined spaces working at heights and temporary electrical use) as company-level core risks. For each risk category we have established
management structure. In accordance with the different characteristics of subsidiaries including the nature of the company business specialized control regulations such as the "Elevator Safety Management System" "High-Rise Building Fire Safety Management System"
types and primary risks the safety responsibility units are classified into three categories: key safety units general safety units and safety "Gas Safety Management System" and "Hazardous Operations Safety Management System" ensuring standardized and institutionalized
supervision units. This classification ensures that safety management measures are tailored to local conditions and efficiently applied. safety management while requiring subsidiaries to strictly comply with relevant risk prevention measures.We have established a dual prevention mechanism for safety risk classification control and hazard inspection and management. Each key
safety unit identifies hazards based on its specific operational characteristics and applies the LEC method to classify risks such as container
Work Safety Management risks warehouse risks and 4S shop risks while implementing corresponding control measures. Additionally we continuously enhance
Committee and Standing Office safety training and routine inspections to ensure the effective execution of risk prevention measures.Key Safety Units
In 2024 we developed the "Key Hazard Source Management" module within our safety management platform to enhance the management
of four key hazard sources of gas systems elevators high-rise fire safety and hazardous operations. Pilot units have successfully
Work Safety Responsible Units General Safety Units implemented online approval for hazardous operations and periodic inspections of key hazard sources. Additionally we have strengthened
the application of intelligent monitoring technologies by introducing digital safety management tools enabling real-time monitoring and
data analysis of high-risk operations further improving safety early warning and emergency response capabilities.Safety Supervisory Units
Work Safety Site Units
Highlight青年Up干da部te成s a长nd社 Ap群pli“ca青tio年ns 荟of t”he项 Sm目art Engineering System
● Work Safety Management Structure
C&D Real Estate continuously advances the update and application of its smart engineering systems leveraging digital tools to enhance
personnel management and safety hazard inspections at construction sites. The system ensures that safety management requirements
such as "personnel information registration pre-job training violation education and hazard Closed-Loop Management" are effectively
We allocate qualified safety management professionals to ensure compliance with In 2024 implemented and it enables comprehensive tracking and rectification of safety incidents. In 2024 the company took the lead in pilot
regulatory requirements. Units with more than 100 employees establish dedicated
testing a range of intelligent construction tools including measurement robots plastering robots facade measurement robots floor
safety management departments or appoint full-time safety personnel while those We signed
leveling robots smart construction elevators pile foundation managers and smart rulers. Among these the smart construction elevator
with fewer than 100 employees assign either full-time or part-time safety personnel. For 182 can replace manual ladder operations and automatically detects the number of passengers overload conditions and whether safety
operations involving metal smelting and hazardous chemicals we strictly enforce high- safety responsibility agreements helmets are worn using infrared cameras and sensors. If violations are detected the smart elevator will activate an automatic power cut and
standard safety management requirements ensuring that the proportion of certified with all safety responsibility units
ensure that it only operates when the lift cage is fully closed significantly improving the safety performance of the equipment.safety engineers is no less than 15%. Currently we have 22 certified safety engineers
And an additional
with both the number and expertise meeting national legal and regulatory requirements.In accordance with the "Incidents and Major Matters Reporting Regulations" we have 287 Highlight青年Bu干ild部in成g S长afe社ty群 Pr“ote青cti年on荟 Ne”tw项or目k for Community
defined the scope and procedures for reporting safety incidents ensuring timely and agreements
with external entities including
accurate information transmission to enhance our emergency response capabilities. partners outsourcing parties
suppliers tenants and engineering C&D Property has established a "Five-layer defense system" for home security and a "Nine Layers of Prevention" safety framework for the
contractors
communities under its management. It creates a multi-tiered fully-covered safety protection network within the community. Additionally
In 2024 we signed 182 safety responsibility agreements with all safety responsibility units
Achieving a coverage rate of C&D Property regularly organizes community safety awareness campaigns focusing on key areas such as electric vehicle safety and and an additional 287 agreements with external entities including partners outsourcing
100 household electrical safety. These efforts aim to enhance residents' awareness and capability in identifying and preventing safety risks.parties suppliers tenants and engineering contractors achieving a coverage rate of %
100%.
117 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 120
Work Safety Inspection Training and Education on Work Safety
We conduct quarterly evaluations of our safety management system in strict accordance In 2024 We place great importance on the occupational health and safety education of our employees and strictly adhere to the "Work Safety
with the "Safety Evaluation Plan" and incorporate the results into the safety assessments Education and Training System" to provide safety training and education. To further enhance the safety protection of our overseas
of key safety units driving continuous optimization of our safety management process. To institutions and personnel we have revised the "Safety Management Regulations for Overseas Institutions and Personnel" which clearly
ensure that the work safety management systems of our stores meet national standards our We completed on-site checks at require the sending units to organize safety education and training for personnel before they are dispatched abroad. We have also refined
logistics and automobile subsidiary actively participate in work safety standardization ratings. 29key safety units the safety management standards for overseas institutions and personnel. In 2024 we revised the "Safety Training Outline" to improve the
Government emergency management departments conduct safety audits every three years in relevance and effectiveness of our safety training. The updated training content includes safety management qualification training new
compliance with the "Guideline of China occupational safety and health management system" employee safety training emergency firefighting skills training safety management platform operation training work safety standardization
(GB/T33000). In 2024 we intensified safety inspections completing on-site checks at 29 key Resulting in the rectification of training CPR certification training and occupational health online training.safety units and identifying and rectifying 149 safety hazards. Additionally each safety key unit 2439safety hazards In 2024
conducts regular self-inspections and self-corrections monthly resulting in the rectification of
2439 safety hazards throughout the year significantly improving our safety management level.
We and our key safety units collectively conducted With a total of The employee safety training coverage rate reached
1289safety training sessions and drills 26955participants 100%
Emergency Management for Work Safety
We have developed the "Emergency Management Regulations for Work Safety Accidents" which In 2024
clearly outline requirements for contingency planning team building material preparedness and
drills. We have established a three-level emergency plan system consisting of 6 comprehensive
emergency plans 7 special emergency plans and 24 on-site response plans. In line with the Our key safety units collectively Occupational Health Management
conducted
"rapid response hierarchical reporting" principle the work safety leaders of subsidiaries report
any emergency matters up the chain of command. In cases of urgent emergencies reports can 497emergency drills
We place a high priority on employee occupational health management strictly adhering to relevant laws and regulations such as the "Law
be directly made to the head of the company's work safety working group or the chairman of the
of the People's Republic of China on Prevention and Control of Occupational Diseases" "Provisions on the Administration of Occupational
board. Once an emergency incident or accident occurs the company's work safety working group
immediately activates the relevant emergency plans and quickly organizes accident rescue efforts. Health at Workplaces" and "Classification and Catalogue of Occupational Diseases" We continuously improve our occupational health With a total of
The unit head arrives at the scene as soon as possible takes effective measures organizes rescue management system by implementing reasonable working hours flexible work arrangements and providing services such as online
participants
operations prevents the incident from escalating and minimizes casualties property damage or 5863 occupational health training health check-ups and psychological health assessments. These efforts are aimed at providing employees
damage to the company's reputation. with a safe healthy and comfortable working environment. In 2024 we achieved a zero incidence rate of occupational diseases.We have developed the "Emergency Management Regulations for Work Safety Accidents"
which clearly define requirements for plan development team building material
preparedness and drills. Each of our key safety units has created emergency plans for high- Employee We place great importance on the mental health of our employees and have introduced the Employee
risk scenarios considering their specific business operations. These plans address potential Assistance Program (EAP) – the "Employee Mental Health Care Plan" which provides systematic
emergencies such as fire escape safety accidents and typhoons. The units regularly organize Assistance long-term professional psychological support and services. Through the EAP professional staff offer
fire safety drills and emergency response exercises to improve the emergency handling Program diagnostic advice psychological counseling and related training for employees and their family
capabilities of all employees. In 2024 in line with the company's emergency plan system our
members (with a strict commitment from both our company and third-party institutions to protect the
key safety units collectively conducted 497 emergency drills with a total of 5863 participants.privacy and confidentiality of those seeking counseling). This program is designed to help employees
The drill topics covered various scenarios including typhoon and flood prevention fire safety
high-altitude falls mechanical injuries chemical burns hazardous materials leaks and address psychological concerns and reduce health risks associated with mental health issues and
heatstroke in high-temperature weather. work-related stress.
119 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 122
The EAP program includes the following services We strictly adhere to the "Labor Law of the People's Republic of China" and relevant local
Work Schedule regulations regarding working hours. We advocate for a work-life balance by implementing a
Psychological Counseling and Support Management standard weekend off policy (two days off per week) and rigorously controlling unnecessary
overtime. We ensure that employees are entitled to their legal rest periods and holidays and we
·We provide employees with convenient access to psychological counseling and support. Employees can connect with professional
psychologists through various channels including phone online chat or face-to-face consultations. These sessions offer a platform to discuss maintain their workload within reasonable limits to protect their physical and mental health.and resolve a wide range of work and life challenges enhancing employees' mental health and strengthening their ability to cope with stress. For positions that require flexible working hours or the comprehensive calculation of working
time we ensure compliance with relevant policies by reporting to management as required. By
Crisis Intervention and Emergency Assistance
standardizing attendance and preventing excessive overtime we promote a healthy work-life
·In the event of accidents family crises or other emergencies we will activate our crisis intervention mechanism to provide employees with balance and create a safe healthy working environment for our employees.immediate support. This helps employees navigate through difficult times and regain stability.Highlight青年Vi干sits部 an成d 长Ca社re 群for“ Fro青nt年lin荟e E”m项plo目yee
We organize an annual health check-up for all employees which includes routine physical exams and
Employee specialized screenings. After the check-up we provide personalized health advice and guidance based We regularly organize "Cool Relief" and "Warm Care" initiatives to support our employees in extreme weather conditions. During the
Health on each employee's specific results helping them manage their health more effectively. scorching summer we provide cooling refreshments such as cold drinks and Four-Ingredient Soup to help employees stay hydrated and
Management refreshed. In the chilly winter we distribute hot dumplings and glutinous rice balls to offer warmth and comfort. These efforts ensure that
In addition we strengthen employee health management through the following measures our employees work under suitable conditions safeguarding their occupational health and well-being.· We offer an employee canteen that provides scientifically balanced healthy work meals to optimize nutrition
intake.· We have established fitness groups and organize courses such as yoga swimming and aerobics along with
providing sports nutrition guidance to help improve employees' physical fitness.· We regularly organize a variety of cultural and sports activities such as hiking challenges holiday events
annual sports meets and staff basketball games as well as providing facilities that promote physical
and mental well-being such as a gym and the "WE Reading Space" employee library. These activities enrich
employees' leisure time and contribute to their overall health.● Employee Canteen with Special Features ● Fitness Classes
121 Xiamen C&D Inc. 2024 Sustainability ReportGovernance
Governance Performance Targets in 2024 Completion Status
1 Establish a Nomination Committee to continuously improve the sustainability governance framework
2 Revise and enhance sustainable development policies and systems in conjunction with business operations and development
3 No lawsuits occurred during the year due to commercial bribery or corruption-related actions
4 No significant losses arise from conflicts of interest
5 No cases of money laundering or insider trading
6 No major lawsuits or administrative penalties result from unfair competition
7 A sustainability report is disclosed annually to update stakeholders on the company’s sustainability governance achievements
Completed In Progress Unfinished
03Environmental Social Governance Appendix 126
Taking the two categories of credit risk and exchange rate risk that we have already identified as examples
Risk and Compliance Management Likelihood Severity of
Risks Types Description of Risks Risk Level of Impact Response Measures
Occurrence
We establish a trading counterpart admission system
that matches the characteristics of goods and
We have elevated risk management to a strategic level integrating it into our "professionalized" operational strategy. By tailoring business
Losses incurred due transaction features of each business sector conducting
management frameworks for different industries we deeply embed risk management into our business market and industry operations to the counterparty comprehensive evaluations of customer qualifications
(supplier or and credit risks. We have developed comprehensive
ensuring that risk management was incorporated throughout all stages of operations. From risk management philosophy governance
customer) failing to credit management methods strictly implementing
Credit Mid-Level
structure and procedural systems to execution and supervision we continuously refine a risk control framework that spans the entire fulfill contractual Low Low centralized credit approval managed by the headquarters.Risk Risk
obligations (such We dynamically adjust customer credit strategies and
business process and lifecycle. This structured approach characterized by specialization tiered management and streamlined processes
as delivery receipt control plans by tracking industry changes and customer
ensures the company's stable and sustainable operations. payment etc.) on information through internal and external channels.time. Additionally we utilize various measures such as export
credit insurance and domestic credit insurance to strictly
control credit risks.We manage exchange rate risks through centralized
Risk Management Structure With the control at our headquarters with relevant management
advancement of our regulations and implementation details in place.internationalization Based on factors such as risk tolerance overall financial
strategy the scale of status and exchange rate trends we set overall limits
We have established a three-tier risk management framework comprising the Board of Directors headquarters' management and functional business settled in for various foreign exchange transactions involving
departments as well as subsidiaries'management teams and relevant departments. To enhance risk oversight we have formulated and Exchange foreign currencies Mid-Level exchange rate risks. Each business unit's foreign exchange Medium Low
Rate risk such as USD has Risk transactions are individually approved by the Treasury
continuously refined the "Internal Control Management Manual"along with internal regulations such as the "Management Guidelines of Supply been continuously Department at the headquarters based on specific
Chain Operations Process" "Logistics Management Regulations" and "Credit Management Regulations." By identifying and assessing potential increasing. As a result circumstances.we face exchange rate Our exchange rate management team and Treasury
operational risks we have developed a comprehensive risk control matrix to standardize key business processes strengthen process controls and fluctuation risks in our Department prudently utilize derivative financial
manage critical risk points. This structured approach ensures robust risk prevention across all business operations. daily operations. instruments under the principle of hedging risks in order
to mitigate exchange rate fluctuation risks.Three-tier Risk Management Structure
In the risk management process we continuously adjust key risk indicators on a quarterly basis taking into account market
conditions and actual business operations. For potential or likely risks or disputes identified during business development we take
·The Risk Management Commitee established under the Board of Directors fulfills the responsibility of
Board of Directors risk management.controlling and making decisions on significant business matters major anomalies timely measures as required and report them accordingly. We incorporate all risk control processes into the company's management
Risk Management Committee and or risk situations guiding the overall rislmnanagement;
Audit ·The Audit Committee established under the Board of Directors fulfills the responsibility of risk
system clearly defining the responsibilities of each department and the approval decision-making authority. We standardize
Committee oversight reviewing andsupervising the company's risk control. internal control. and compliance. hierarchical reporting and strengthen follow-up tracking of the execution of these processes by relevant departments ensuring that
risk control processes are effectively implemented to monitor and prevent potential risks.In 2024 we revised the "Member Composition Responsibilities and Authorization Compliance of Risk Management Committee" to
The company's headquarters management team and multiple functional management departments form the Risk
Headquarters Management Team Control Centerwhich is responsible for risk management: optimize special authorizations and management rules regarding client operational resource allocation limits further improving the
The Headquarters Risk Control ·A General Manager Responsibility System is implemented where the General Manager is authorized by the
Centerconsists of functional management management mechanism of the Risk Management Committee. We conducted a comprehensive review of key business processes Risk ManagementCommittee and further delegates authority at different levels.establishing a hierarchical risk
departmentsincluding the Operations control structure. assessed current internal management systems and made timely revisions to regulations such as the "Finance Management
Management Department Credit ·The Headquarters Risk Control Center is composed of functional management departments including the
Management Department Logistics OperationsManagement Department Credit Management Depatment Logistics Management Department Legal Regulations" "Fund Management Regulations" "Futures Business Management Regulations" "Legal Practice Management
Management Department Legal Department Risk Controland Audit Department and Futures Management Department. Each department assumes risk
Department Risk Control and Audit Regulations" "Tender Management Regulations" and "Contract Seal Management Regulations" based on adjustments to management responsibilities withinits respective functional scope enhancing coordination and collaboration among
Department and Futures Management departments. The Operations Management Department oversees and coordinates the functions of these departments management processes and measures. This ensures the timeliness and effectiveness of the regulations while strengthening the
Department reporting to the Risk lVanagement Committee or theGeneral Mlanager as per the designated authority A dedicated Risk
Control Director is appointed to manage risk-related mattersand report directly to the Chairman. construction of the risk management system.·The Risk Control and Audit Department serving as the risk supervision unit performs oversight duties through
variousinspections and audits conducts routine communications and submits periodic reports to the Audit Committee.We have established systems such as the "Regulations on the Management of Rewards and Punishments" "Risk Fund Management
Measures" and the "Interim Measures for Accountability of Violations in Business Operations and Investments" to link key risk indicators
Management Teams Of Subsidiaries
Functional Management Departments ·The subsidiaries' management teams and relevant functional departments carry out daily risk management with the compensation of management personnel ensuring the implementation of risk management responsibilities. In addition when
of Subsidiaries responsibilities within the scope of each subsidiary's business conducting risk management activities. evaluating employee performance and compensation we incorporate factors such as whether performance targets are achieved within the
controllable risk range and whether effective risk prevention measures have been taken into the evaluation criteria.
125 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 128
Risk Control and Compliance Inspection Education on Risk Control
The Audit Committee under the company's Board of Directors is responsible for reviewing and supervising risk management and internal control We actively promote various risk management and compliance training programs using multiple formats to communicate risk control and
compliance. Our Risk Control and Inspection Department is tasked with conducting risk control compliance checks internal control audits and compliance knowledge to employees while promoting the policies and regulatory requirements for business management and risk control. This
evaluations for various functional departments and subsidiaries. This strengthens the supervision of risk control compliance ensuring timely and helps enhance employees' awareness of compliance and risk prevention and strengthens their ability to manage risks. Additionally we encourage
effective risk management. It also facilitates the identification of issues related to the construction and execution of internal control systems and employees to report potential risks in a timely manner and implement corresponding preventive or responsive measures. Employees who
processes provides relevant recommendations for improvements and ensures the implementation of corrective actions continually enhancing contribute to preventing events that may harm the company's interests will be rewarded according to internal regulations.our risk control capabilities and effectively preventing risks.In 2024 we conducted the following risk control and compliance education and training
In 2024 we carried out the following internal compliance checks
Online and Offline Learning
·Through our internal online learning platform as well as offline group training sessions case studies and
·Monitored the entire process of 405 risk control projects involving 1240 related contracts issuing early warnings for identified risks and
discussion exchanges we held 6 training sessions on topics such as supply chain risk management and
following up to ensure proper handling and resolution.compliance risk management for all employees with over 5000 participants in total.·Organized and completed the annual internal control self-assessment thoroughly examining the effectiveness of our internal control
system in accordance with our Internal Control Manual promptly identifying deficiencies implementing corrective actions and ensuring the
effectiveness and compliance of the risk management processes. Specialized Training
·Completed 29 special audits covering critical risk areas such as cost reduction operational management human resources management
project tendering claims business and post-investment management. These audits evaluated management effectiveness strengthened ·We invited external experts to organize specialized training on topics such as "International Letter of Credit
supervision of joint venture projects and urged subsidiaries to implement corrective actions for identified issues continuously improving Risk Control" and "International Letter of Credit Settlement Practices" enhancing the professional
business processes and internal control mechanisms. capabilities of relevant staff. We also conducted specialized supply chain risk management training for risk
·For C&D Real Estate focused on key risk management issues in sales management marketing expense management and marketing tender management personnel in subordinate companies with 650 participants.management conducting quarterly spot checks on typical projects to ensure full coverage across all business units and carrying out internal
checks on key projects within each cluster each quarter.Learning Seminars
·Each cluster of C&D Real Estate conducted special audits on business lines such as engineering design and marketing based on operational
management practices enhancing front-line internal audits and risk prevention.·For Lianfa Group focused on high-risk areas such as project bidding and tendering project management marketing asset leasing ·We held management requirement seminars and discussions on topics such as "Revised Risk Control Meeting
investment funds management and procurement of goods and services. Strengthened daily risk monitoring auditing and supervision and Management Guidelines and High-Risk Business Management Requirements" where we analyzed high-risk and
ensured timely follow-up and corrective actions for identified issues. non-compliant business cases strengthening risk awareness among relevant departmental staff.Risk Control Salon
·We hosted the first Risk Control Center Salon where we shared typical risk control management cases and
We regularly engage external professional organizations to audit the implementation and effectiveness of our internal control processes at the
practical experiences helping to improve the professional capabilities of key risk management personnel
corporate level including development strategies social responsibility and key business areas such as supply chain operations real estate and further improve our risk control and compliance system.development and operations engineering projects financial activities and asset management. In 2024 we entrusted an external audit firm to
assess the effectiveness of our internal controls.Pre-Job Training
·We provided personalized pre-job training for new hires and personnel transitioning into operations
management roles and organized exchanges for operations management leaders to learn about digitalization
and international compliance management.
127 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 130
Commercial Behaviors
● Supplier Integrity Management
We adhere to the corporate spirit of "Solidarity Devotedness Integrity Enterprisingness" strictly comply with the relevant laws and regulations We have issued the "Supplier Code of Conduct" which outlines clear anti-corruption and anti-bribery requirements for our suppliers.of the countries or regions where we operate support and respect the requirements of international conventions and standards and conduct It strictly prohibits any form of corruption extortion or bribery and demands that suppliers' business practices be legal compliant
business with high ethical standards to maintain a free and fair market environment. We have formulated and continuously improved the Code and aligned with commercial ethics. For potential business partners including suppliers we conduct due diligence through
of Business Conduct which provides clear behavioral guidelines for our global business development in areas such as integrity and compliance qualifications checks on-site inspections background investigations and risk assessments to examine and mitigate integrity
conflicts of interest antitrust and fair competition prohibition of insider trading anti-money laundering adherence to international trade rules risks. During the pre-cooperation phase relevant compliance departments are involved in the contract approval process to assess
protection of property rights complaint mechanisms and protection of whistleblowers and lawful taxation. These efforts contribute to building a the supplier's qualifications and integrity risks. Suppliers are required to sign integrity agreements or law-abiding commitments
trustworthy corporate image for our company and its subsidiaries. and in significant contracts we include anti-bribery clauses. These measures ensure that suppliers understand our principles of
integrity and lawfulness and the consequences of any violations thereby constraining their actions and preventing integrity risks.Throughout the business cooperation process we continuously monitor and track suppliers' business activities and external
Anti-Commercial Bribery and Anti-Corruption negative information such as litigation or instances of dishonesty. If a supplier is found to be involved in corruption or bribery we
will terminate the business relationship seek compensation or take other appropriate actions to hold the supplier accountable. In
2024 we organized integrity promotion activities with our subsidiaries working together with partners to create an environment of
We attach great importance to corporate integrity construction. By establishing the "Anti-Corruption and Anti-Bribery Policy" we clearly define
integrity trustworthiness and mutually beneficial cooperation.the various corrupt and bribery behaviors that are prohibited and take effective measures to prevent corruption risks. We have developed internal
management systems such as the "Employee Integrity Management Regulations (Trial)" to regulate employee integrity behavior ensuring a high
degree of alignment between employees' actions and words and fostering an environment of integrity and fairness in business. Additionally
through the establishment of internal management systems such as the "Human Resources Management Regulations" "Regulations on the
Management of Rewards and Punishments" and "Supply Chain Operations Management Regulations" we integrate integrity requirements into
daily employee management. We take appropriate disciplinary actions for employees who violate business ethics and clearly set integrity-related ● Integrity Supervision and Inspection
evaluation criteria in the year-end performance assessments for the company's management.Our Discipline Inspection Committee (hereinafter referred to as the "Disciplinary Committee") continuously strengthens daily
supervision special inspections and supervision around key areas and important time points. This ensures timely identification
of issues and shortcomings and strict enforcement of corrective actions to prevent integrity risks safeguard the effective
implementation of integrity systems and ensure that clean governance is fully implemented. For violations related to business
operations the Integrity and Law Compliance Oversight Team and the Business Compliance Management Team will review and
● Integrity Risk Management investigate. In accordance with internal regulations such as the "Interim Measures for Accountability of Violations in Business
Operations and Investments" "Employee Integrity Management Regulations" and "Employee Integrity Self-Discipline Regulations"
We implement policies such as the "Anti-Corruption and Anti-Bribery Policy" "Employee Integrity Self-Discipline Regulations" and we will impose penalties on the business units and personnel involved in corruption or violations.the "1+X Special Supervision and Coordination Working System" to identify integrity risks that may be involved in critical business
In 2024 the integrity-specific audits and inspections we conducted include
processes and key positions incorporating them into internal controls. We continuously strengthen our supervision and inspection
mechanisms to promote the company's integrity and high-quality development. To enhance corporate integrity risk management
In supply chain operations
we have established the Integrity and Compliance Supervision Group led by the Chief Risk Officer with members from key In the real estate business
departments such as the Risk Control Audit Department Operations Management Department Credit Management Department ·we conducted in-depth integrity inspections focusing on ·C&D Real Estate organized and urged its subsidiaries to
and Legal Department. This group is responsible for overseeing the company's integrity and law-abiding operations. Additionally business compliance and other aspects strictly conduct timely self-inspection and self-discipline work.we have formed a Business Compliance Management Group to review matters related to business compliance strengthening implementing various disciplinary requirements. Lianfa Group carried out 12 special supervision inspections
risk management in ethical operations and business compliance. Both the Integrity and Compliance Supervision Group and the and organized subsidiaries to conduct self-inspection and
correction in a timely manner with spot checks conducted
Business Compliance Management Group regularly report their integrity risk management activities to the company's management
on key subsidiaries.team which supervises and provides guidance on the company's integrity risk management goals.
129 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 132
● Integrity Training and Education
We place great emphasis on fostering a culture of integrity. By leveraging our corporate WeChat internal network and E-Jianxue
platforms we have developed a business-specific integrity culture brand. We conduct diverse and regular integrity education
awareness campaigns and training programs to enhance the integrity awareness of our directors supervisors senior management
and all employees. Our goal is to cultivate an organizational culture that values learning about integrity reflecting on integrity
upholding integrity and practicing integrity. In 2024 our integrity training and education initiatives included:
·Regular Integrity Education
-Utilizing the "Clean C&D" integrity promotion platform as the main channel we conduct continuous integrity education through
comics videos and other formats.-Organizing integrity knowledge quizzes for all employees covering topics such as party discipline regulations corporate culture and
company policies with a total of 2430 participants.-Conducting integrity discussions with all employees through one-on-one conversations work meetings and group training sessions
as part of our employee engagement system reaching over 10000 employees.-Providing specialized integrity training for newly recruited employees and organizing integrity compliance learning sessions for all
appointed managers.-Establishing the "Qingfeng Platform" column on the internal network of C&D Real Estate publishing 18 visual interpretations related
to disciplinary development.·Integrity Education for Party Members and Cadres
-C&D Real Estate organized newly appointed cadres and grassroots Party members to visit the "Love Lotus Respect Integrity" special
exhibition at Xiamen Museum.-Lianfa Group arranged for Party members and cadres to attend court hearings visit integrity education bases and conduct 34 integrity
warning education sessions.● Integrity Awareness Month Activities
·Thematic Integrity Education Activities
-Organized various activities during the Integrity Culture Promotion and Education Month including Integrity Film Week carnivals
and integrity-themed work collections integrating education with entertainment and fostering interactive integrity promotion. Anti-unfair Competition
Nearly 20 integrity education activities were held collecting 205 integrity-themed works with approximately 2000 participants.-C&D Real Estate launched the "Clean and Upright 345 Action" engaging 22000 employees in integrity self-discipline commitments We consistently advocate for free and fair competition strictly adhering to national and regional anti-monopoly and anti-unfair competition
and conflict-of-interest disclosures strengthening integrity discussions and supervision for key cadres and critical positions. Integrity
regulations. We are committed to maintaining an honest fair and open market environment. We establish anti-unfair competition and anti-
compliance was also promoted through work meetings and monthly meetings covering over 7000 employees.-Lianfa Group carried out the "Clean and Upright 345 Initiative" organizing integrity discussions and commitment signings for key monopoly compliance requirements for our company and subsidiaries through the Code of Business Conduct strictly prohibiting the use of
personnel. A total of 762 integrity commitment letters were signed covering 539 participants. illegal or unethical means to obtain information about competitors or partners and the fabrication or dissemination of false information about
competitors. The Integrity and Compliance Oversight Task Force is responsible for monitoring and reviewing compliance with the Code of
Business Conduct to ensure legal and regulatory compliance in business activities and to prevent and mitigate risks related to unfair competition
and monopolistic practices.In 2024 we did not have any major lawsuits or significant administrative penalties due to unfair competition.
131 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 134
Complaint Mechanism and Whistleblower Protection
● Tax Risk Management
We strictly comply with relevant regulations such as the Rules for
Handling Complaints and Accusations by Disciplinary Inspection Stakeholders can lodge complaints or reports anonymously
or report with their identity disclosed through the following We incorporate tax risk into our overall risk management process and have established a "pre-risk reduction in-process response and Supervision Departments as well as internal policies including
public channels: and post-improvement" full-chain mechanism to effectively manage tax risks. We promote tax policies and regulations in advance
the Code of Business Conduct and the Anti-Corruption and Anti-
to raise the awareness of our subsidiaries and relevant personnel regarding tax risks. We identify potential tax risks in existing and
Bribery Policy. We have established and continuously improved
Complaint and reporting email: new business operations and keep a close eye on updates and changes in relevant laws and regulations that may have an impact.our complaint and reporting mechanism providing employees
compliance@chinacnd.com Appropriate control measures and responses are taken and we strengthen risk inspections of our subsidiaries. After inspections we suppliers customers and other stakeholders with accessible and
analyze and summarize the results implement corrective actions and actively share experiences. To ensure the effectiveness of tax
convenient internal and external channels for reporting (including Complaint and reporting address:
management in subsidiaries we have established a tax liaison mechanism to communicate various tax policies and requirements
mail telephone WeChat public platform mobile client platform C&D International Building 1699 Huandao East
promptly while subsidiaries report their tax work and inspection status. Additionally we have implemented an inter-regional
or in-person reporting). We encourage stakeholders to promptly
Road Xiamen China platform tax inspection system where an annual audit team is assigned to audit tax management in subsidiaries and urge corrective
and proactively report any potential violations of business conduct
actions to ensure tax compliance.standards policies or laws and regulations working together to
foster an honest and transparent business environment. 利 益 相
We highly value the protection of whistleblowers and have explicitly outlined our stance and measures for whistleblower protection in internal
policies such as the "Code of Business Conduct" and the "Anti-Corruption and Anti-Bribery Policy" ensuring the legitimate rights and interests of
whistleblowers are safeguarded. We allow both anonymous and real-name reporting strictly implement confidentiality mechanisms to prevent
the disclosure of whistleblower information and report details and prohibit any form of retaliation against whistleblowers. Any individual found
disclosing whistleblower information or engaging in retaliatory actions will be subject to strict disciplinary measures and held accountable in ● Tax Compliance Training and Communication
accordance with relevant regulations.We organize periodic internal and external tax compliance training to strengthen the awareness of tax compliance among relevant
tax personnel and enhance their professional tax-related skills. Additionally we have established a regular communication and
Tax Compliance Management interaction mechanism with tax authorities implementing a centralized management system for tax matters to effectively improve
the efficiency of communication between the company and tax authorities.We strictly adhere to the "Enterprise Income Tax Law of the People's Republic of China" and In 2024
In 2024 to address changes in the tax environment and assist subsidiary companies in effectively managing and responding to tax
all applicable tax laws and regulations in the regions where we operate fulfilling our tax
risks and handling complex tax matters we invited external experts to conduct a special training session on "Tax Dispute Resolution
obligations in accordance with the law ensuring tax compliance and transparency. We have
We paid a total tax amount of and Risk Prevention of False Invoices." The training focused on analyzing and sharing ways to resolve tax disputes as well as
established provisions for tax-related matters in our "Financial Management Regulations"
identifying and preventing risks related to false invoicing aiming to enhance the tax risk response and tax management capabilities
and relevant department personnel are responsible for daily tax-related tasks such as 1596788
Ten-thousand RMB of relevant personnel in the company.regular tax declarations. We continuously monitor changes in local tax laws and regulations
promptly adjusting the handling of tax matters as needed. We insist on paying taxes honestly
and lawfully to give back to society and have been recognized as one of the top 100 taxpayers
in Fujian Province for several consecutive years. In 2024 we paid a total tax amount of
1596788 Ten-thousand RMB.
133 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 136
Data Overview
Metrics Unit 2022 2023 2024
Environmental Transfer and disposal volume of general waste 101949 337378 982974
Metrics Unit 2022 2023 2024 General Waste Recycled / 113500 144806
Ton
Environmental Investment Industrial Waste Recycled / 113500 144806
Annual total environmental investment Ten-thousand RMB 2086 3789 15090 Domestic Waste Recycled / 0 0
Emissions and Discharge Energy Consumption
7
GHG Emissions Electricity Consumption kWh 259624703 947373073 1720332433
Scope 1 – Direct GHG emissions 285727 434139 504071 Including: Green electricity consumption kWh 392010 10834236 18176772
Scope 2 – Indirect GHG emissions from purchased Green electricity ratio % 0.10 1.16 1.06
energy tCO2e 220443 539580 984530
Coal consumption Ton 137412 166254 181876
Total GHG emissions (Scope 1+ Scope 2)1 506170 973719 1488601
3
tCO2e / hundred- Natural gas consumption m 105488 39117790 52767011
Emission intensity million RMB of 61 128 212
8
operating revenue Steam consumption Ton 5861 16889 206977
Air Pollutants2 Gasoline Consumption9 914023 701654 1728416
Litre
NOx emissions 44 49 115 Diesel consumption10 494618 446758 2143085
SOx emissions Ton 4 8 92 Liquefied petroleum gas consumption11 Kg 1323280 6560 667938
PM emissions 2 8 Water Resources
Wastewater and Related Pollutants3 Water withdrawal12 / 11923256 14542494
m3
Total wastewater discharges m3 3149769 8641873 7822311 Water consumption / 3281383 6720183
3
COD discharge 347 377 528 m /hundred-
Water consumption density million RMB of / 430 958
Ammonia Nitrogen discharge Ton 3 2 5 operating revenue
Circulating water usage m3 / 69500 9792
Total Nitrogen discharge 49 39
Circulating water usage ratio % / 0.58 0.07
Waste
Green Building
Hazardous waste generated4 / 78 47887
Newly Added Green Building Area m3 / / 388956
Transfer and disposal volume of hazardous waste5 23 63 48059
Basic-level green building / 9 3
General Waste Generation / 180380 1257105
Ton One-star green building / 2 8
Including: Industrial Waste Generated6 / 130772 1132030 Count
Two-star green building / 1 3
Domestic Waste Generated / 49608 32769
Three-star green building / 0 0
Construction Waste Generated / 156998 92306
Note 1: The increase in the Company's total greenhouse gas emissions in 2024 compared to 2023 was mainly due to the acquisition of Xiangguang Copper Co. Ltd. during the reporting period the full commissioning Note 7: The increase in the Company's electricity consumption in 2024 compared to 2023 was mainly due to the acquisition of Xiangguang Copper Co. Ltd. during the reporting period the full commissioning of Shandong
of Shandong Jianke Steel Plate Co. Ltd. and the increased production of Universal Pulp and Paper (Shandong) Co. Ltd. Jianke Steel Plate Co. Ltd. and the increased production of Universal Pulp and Paper (Shandong) Co. Ltd.Note 2: The increase in the Company's air pollutant emissions in 2024 compared to 2023 was mainly due to the acquisition of Xiangguang Copper Co. Ltd. during the reporting period the full commissioning of Note 8: The increase in the Company's steam consumption in 2024 compared to 2023 was mainly due to the full commissioning of Shandong Jianke Steel Plate Co. Ltd. and the increased steam consumption by Red Star
Shandong Jianke Steel Plate Co. Ltd. and the increased production of Universal Pulp and Paper (Shandong) Co. Ltd. Macalline Group Corporation Ltd. during the reporting period.Note 3: The increase in the Company's wastewater pollutant emissions in 2024 compared to 2023 was mainly due to the acquisition of Xiangguang Copper Co. Ltd. during the reporting period the full Note 9: The increase in the Company's gasoline consumption in 2024 compared to 2023 was mainly due to the business growth during the reporting period.commissioning of Shandong Jianke Steel Plate Co. Ltd. and the increased production of Universal Pulp and Paper (Shandong) Co. Ltd. Note 10: The increase in the Company's diesel consumption in 2024 compared to 2023 was mainly due to the acquisition of Xiangguang Copper Co. Ltd. during the reporting period the full commissioning of Shandong
Note 4: The increase in the Company's hazardous waste generation in 2024 compared to 2023 was mainly due to the acquisition of Xiangguang Copper Co. Ltd. during the reporting period the full commissioning of Jianke Steel Plate Co. Ltd. and the increased production of Universal Pulp and Paper (Shandong) Co. Ltd.Shandong Jianke Steel Plate Co. Ltd. and the increased production of Universal Pulp and Paper (Shandong) Co. Ltd. Note 11: The increase in the Company's liquefied petroleum gas (LPG) consumption in 2024 compared to 2023 was mainly due to the acquisition of Xiangguang Copper Co. Ltd. during the reporting period.Note 5: The increase in the Company's hazardous waste transfer and disposal volume in 2024 compared to 2023 was mainly due to the acquisition of Xiangguang Copper Co. Ltd. during the reporting period the full Note 12: The increase in the Company's water withdrawal in 2024 compared to 2023 was mainly due to the acquisition of Xiangguang Copper Co. Ltd. during the reporting period the full commissioning of Shandong Jianke
commissioning of Shandong Jianke Steel Plate Co. Ltd. and the increased production of Universal Pulp and Paper (Shandong) Co. Ltd. Steel Plate Co. Ltd. and the increased production of Universal Pulp and Paper (Shandong) Co. Ltd.Note 6: The increase in the Company's industrial waste generation in 2024 compared to 2023 was mainly due to the acquisition of Xiangguang Copper Co. Ltd. during the reporting period the full commissioning of Shandong
Jianke Steel Plate Co. Ltd. and the increased production of Universal Pulp and Paper (Shandong) Co. Ltd.
135 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 138
Employment Metrics Unit 2022 2023 2024
Metrics Unit 2022 2023 2024 Management Composition by Gender
Total employees Person 32847 49752 47422 Junior management personnel / 3535 4659
Person
Employee Composition Female junior management personnel / 1094 1473
Employee Composition by Gender Proportion of female junior management
personnel % / 31 32
Male 20411 30837 29781 Management personnel (Mid-level and above) / 1517 2238
Person Person
Female 12436 18915 17641 Female management personnel (Mid-level and
above) / 349 604
Employee Composition by Age Proportion of female management personnel
(Mid-level and above) % / 23 27
Under 30 / 14928 12942 Including: Senior management personnel / 8 7
Person
Between 30-50 Person / 31316 30792 Female senior management personnel / 2 2
Over 50 / 3508 3688 Proportion of female senior management
personnel % / 25 29
Employee Composition by Education Local senior management personnel Person / 6 6
Masters degree and above 1715 2177 2225 Proportion of local senior management personnel % / 75 86
Bachelors degree 12295 19262 18888 Management Composition by Nationality
Person China / 5050 2236
College degree 9604 13575 12560 Person
Other / 2 2
Other degrees 9233 14738 13749 Labor Contract Signing
Employee Composition by Nationality Labor Contract Signing Rate % 100 100 100
China / / 47325 Freedom of Association and Collective Bargaining
/
Others / / 97 Proportion of employees covered by collective
agreements % / 100 100
Employee Composition by Function Employment of Disabled Individuals
Management personnel 1262 1596 1587 Number of disabled employees hired Person 5 26 24
Propotion of disabled employees hired % 0.01 0.05 0.05
Technical personnel 7501 9282 9104
Employee Training
Business personnel 22090 33404 32034 Total training participants 209641 531822
Financial personnel 1078 3082 2757 Including: Total training participants in the supply
Participant /
chain operations segment / 174294
Administrative personnel 916 2388 1940 Total training hours 6354357 2138972 1387623
Person Including: Total training hours in the supply chain Hour
Female management personnel / 395 372 operations segment / / 503884
Female technical personnel / 1439 1155 Total training sessions / / 25048
Including: Total training sessions in the supply Session
Female business personnel / 13065 12611 chain operations segment
//3834
Female financial personnel / 2239 2011 Employee Welfare and Benefits
Total paid parental leave / 4787 5967
Female administrative personnel / 1777 1492 Day
Paid family or caregiver leave (non-maternity) / / 3530
137 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 140
Market Metrics Unit 2022 2023 2024
Metrics Unit 2022 2023 2024 Number of suppliers in other regions / 30313 33343
Technology Research and Development Including: Number of suppliers in other regions in the supply chain operations segment / / 33342
Count
Total R&D investment amount in technology Ten-thousand RMB 19062 23651 28544 Number of new suppliers admitted in the year 12357 12047
Ratio of R&D investment to revenue from core %
businesses 0.02 0.03 0.04
Including: Number of new suppliers admitted in
the supply chain operations segment in the year / / 11664
Intellectual Property
Number of new patent applications / / 31
Including: Number of new patent applications in
the supply chain operations segment / / 0
Number of new patents granted 181 4 100 Occupational Health and Safety
Including: Number of new patents granted in the Metrics Unit 2022 2023 2024
supply chain operations segment / / 1
Number of new copyright applications / / 1 Work Safety Input
Including: Number of new copyright applications Total annual input in occupational health and
/ / 1 work safety Ten-thousand RMB 2388 436 3602in the supply chain operations segment
Number of new copyright registrations Item / 19 27 Safety Training
Including: Number of new copyright registrations Total participants in occupational health and
in the supply chain operations segment / / 9 safety training
Particpant 69356 373368 70623
Number of new trademark applications / / 122 Total occupational health and safety training hours Hour 25691 77558 239271
Including: Number of new trademark applications Proportion of employees who have received safety
in the supply chain operations segment / / 121
training % 58 100 100
Number of safety emergency drills Time 1531 16704 16452
Number of new trademark registrations / 90 39
Including: Number of new trademark registrations Number of attendees for safety emergency drills Particpant 5594 158370 233510
in the supply chain operations segment / / 23
Number of offline safety training sessions Session 961 31321 16538
Number of new intellectual property rights / / 166
Lawsuits resulting from intellectual property Number of online safety training courses Course 65 159 239
disputes Case / / 0
Work Safety Accident
Complaint Resolution
Extra-major accident 0 0 0
Total number of complaints 22221 5476 4126
Case Major accident 0 0 0
Total number of resolved complaints 22220 5476 4126 Case
Serious accident 0 0 0
Complaint resolution rate % 99.99 100 100
General accident 0 0 0
Supplier Management
Number of work stoppages Time 0 0 0
Total number of suppliers 41397 126728 137557
13
Including: Number of suppliers in the supply chain Duration of work stoppages Day 0 0 45
operations segment / / 135273
Count Occupational Health and Safety Performance
Number of suppliers in Mainland China / 96415 104214
14
Including: Number of suppliers in Mainland China Occupational fatalities Person 0 0 2
in the supply chain operations segment / / 101931
13：Xiangguang Copper a subsidiary of the company suspended operations for maintenance and overhaul as part of its production plan.
14：Employee fatalities due to work-related incidents occurred at our subsidiaries MACALLINE and Xiangguang Copper.
139 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 142
Social Contributions Guidelines No. 14 of Shanghai Stock Exchange for Self-
Metrics Unit 2022 2023 2024 Regulation of Listed Companies—Sustainability Report
Social Contributions (Trial)
Social donations Ten-thousand RMB 3612 2633 4075
Total trade volume with countries alongsied the Ten-thousand US
Belt and Road Initiative Dollar / 1696078 1446825 Topic Article Location
Number of public welfare activities Time 121 348 286
Chapter III Environmental Disclosure
Total number of volunteer service participants 13092 16204 4628
Climate Change Tackling Article 21-28 Climate Response
Including: Total number of volunteer service Participant
participants in the supply chain operations / / 3192 Pollutant Discharge Article 30 Pollutant Discharge
segment Waste Disposal Article 31 Waste Disposal
Total volunteer service hours 5013 9984 12307
Hour Ecosystem and Biodiversity Protection Article 32 Ecosystem and Biodiversity Protection
Including: Total volunteer service hours in the
supply chain operations segment Hour / 8240 Environmental Compliance Management Article 33 Environmental Compliance Management
Energy Usage Article 35 Energy Usage
Usage of Water Resources Article 36 Usage of Water Resources
Circular Economy Article 37 Circular Economy
Governance Chapter IV Social Disclosure
Rural Revitalization Article 39 Industrial Revitalization and Rural Metrics Unit 2022 2023 2024 Development
Rooted in Communities Committed to
Business Ethics
Contributions to the Society Article 40 Cultural Heritage
Caring for Children Lifting Their Dreams
Anti-corruption Advocacy and Training (Supply Chain Operations Business) Care to Share Aware through Public Welfare
Proportion of employees briefed on anti- / 100 100 Innovation-driven Article 42 Innovation-driven Development
corruption policies and procedures
%
Proportion of employees received anti-corruption Ethics of Science and Technology Article 43 Not Applicable
training / 100 100
Supply Chain Security Article 45 Supply Chain Security
Business Ethics Violations Equal Treatment to Small and Medium-
Article 46 Equal Treatment to Small and Medium-
Lawsuits resulting from commercial bribery and sized Enterprises Sized Enterprises
corruption / / 0 Safety and Quality of Products and Services Article 47 Safety and Quality of Products and Services
Conflict of interest incidents / / 0 Data Security and Customer Privacy
Case Protection Article 48
Data Security and Customer Privacy
Protection
Money laundering or insider trading incidents / / 0
Employees Article 50 Employees
Lawsuits or administrative penalties resulting from
unfair competition incidents / / 0 Chapter V Corporate Governance Information Related to Sustainable Development Disclosure
Management of Material Matters
Due Diligence Article 52 Climate-Related Risks Opportunities and Financial Impacts
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
141 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 144
SASB Index Reference of ESG Indicators System for ESG Reports of
Listed Chinese Central State-Owned Enterprises
SASB Topics Accounting Metrics Location
Environmental
CG-MR-130a.1：
Energy Management in Retail (1)Total energy consumed Energy Usage Primary Secondary
& Distribution (2)Percentage grid electricity Data Overview
(3)Percentage renewable energy Indicators Indicators
Tertiary Indicators Location
E.1.1.1 Fresh-water consumption Data Overview
CG-MR-230a.1： Data Security and Customer
Discussion of management approach to identifying and Privacy Protection
addressing data security risks E.1.1.2 Circulating water usage Data OverviewE.1.1
Data Security CG-MR-230a.2： Water resources E.1.1.3 The proportion of circulating
(1)Number of data security breaches water usage Data Overview
(2)Percentage involving customers’personally identifiable infor- Not available in this report
mation (PII) E.1.1.4 Water resource consumption
intensity Data Overview(3)Number of customers affected
CG-MR-310a.1： E.1.2.1 Consumption of non-renewable
materials Data Overview(1)Average hourly wage
(2)Percentage of in-store employees earning minimum wage by Not Applicable
E.1.2 Materials E.1.2.2 Consumption of toxic and haz-region ardous materials Not Applicable
CG-MR-310a.2：
Fair Labor Practices Employee turnover rate for in-store employees E.1.2.3 Material consumption intensity Not ApplicableE.1 Resource
(1) Voluntary Not Applicable Consumption GHG Emissions Management
(2)Involuntary E.1.3.1 Fossil energy consumption Data Overview
Amount of legal and regulatory fines and settlements associated E.1.3.2 Non-fossil energy consumption GHG Emissions Management
with labor law violations Not Applicable Data Overview
E.1.3 Energy E.1.3.3 The proportion of non-fossil en-ergy consumption Data OverviewCG-MR-330a.1：
Percentage of gender and racial/ethnic group representation for Human Rights Protection E.1.3.4 The total energy consumption GHG Emissions Management
(1)Management Data Overview Data Overview
Workforce Diversity & Inclusion (2)All other employees E.1.3.5 The energy consumption inten-
sity Data Overview
Amount of legal and regulatory fines and settlementsassociated
Not Applicable E.1.4.1 The amount of packaging Resource Recycling and Utilizationwith employment discrimination E.1.4 Packaging materials used Data Overview
materials E.1.4.2 Light-weighting and reduction
CG-MR-410a.1： of packaging materials Resource Recycling and Utilization
Revenue from products third-party certified to environmental Not Applicable E.2.1.1 Wastewater discharge
and/or social sustainability standards compliance Pollutant Discharge
CG-MR-410a.2： E.2.1.2 Wastewater management and Pollutant Discharge
Description of processes to assess and manage risks and/or Not Applicable emission reduction measures
hazards associated with chemicals in products
E.2.1 Wastewater E.2.1.3 Volume of wastewater discharge Data Overview
Product sourcing Packaging CG-MR-410a.3： E.2.1.4 Volume of pollutants discharged
and Marketing Description of strategies to reduce the environmental impact of Circular Economy
E.2 Pollution in wastewater Data Overview
packaging Prevention and
Control E.2.1.5 Concentration of pollutants
discharged in wastewater Not Applicable
CG-MR-000.A：
(1)Number of retail locations Not Applicable E.2.2.1 Compliance of exhaust gas Pollutant Discharge
(2)Number of distribution centers emissions
CG-MR-000.B： E.2.2 Exhaust air E.2.2.2 Volume of air pollutants emitted Data Overview
Total area of (m2):
(1)Retail space Not Applicable E.2.2.3 Concentration of air pollutants Not Applicable
(2)Distribution centers emitted
143 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 146
Primary Secondary Primary Secondary Tertiary Indicators Location
Indicators Indicators
Tertiary Indicators Location Indicators Indicators
E.2.3.1 Compliance of legal regulations
on solid waste disposal Waste Disposal
E.5.4.1 Clean production Pollutant Discharge
E.2.3.2 Management of general indus- E.5.4.2 Green technology upgrading Pollutant Discharge
trial solid waste Waste Disposal and recycling Circular Economy
E.2 Pollution
Prevention and E.2.3 Solid waste E.2.3.3 Disposal volume of general industrial solid waste Data Overview
E.5.4.3 Green building renovation GHG Emission Reduction Actions
Control E.5.4 Green
E.2.3.4 Management of hazardous environmental GHG Emission Reduction Actions
waste Waste Disposal actions and
E.5.4.4 Green office and operations Circular Economy
measures
E.2.3.5 Volume of hazardous waste E.5.4.5 Green procurement and green
disposed Data Overview supply chain management
Supplier Management
E.5 Measures for
E.3.1.1 Sources and types of GHG GHG Emission Reduction Actions
emissions GHG Emissions Management
Resource and
Environmental E.5.4.6 Environmental conservation Environmental Compliance
Management public activities Management
E.3.1.2 GHG emissions management GHG Emissions Management Systems Ecosystem and Biodiversity Protection
E.5.5.1 Environmental management Environmental Compliance
E.3.1.3 Scope 1 emission GHG Emissions Management system certification ManagementData Overview E.5.5 Green and
E.3.1 GHG emissions low-carbon certifi- E.5.5.2 Green and low-carbon enter-
E.3.1.4 Scope 2 emission GHG Emissions Management cation prise certification
Not Applicable
Data Overview
E.5.5.3 Green and low-carbon product
E.3.1.5 Scope 3 emission Not Applicable and service certification
GHG Emission Reduction Actions
E.5.6.1 Emergency response plan for Environmental Compliance
GHG Emissions Management E.5.6 Legal com-E.3.1.6 GHG emission intensity environmental incidents ManagementData Overview pliance in environ-
E.3 Climate mental matters E.5.6.2 Environmental violations and Environmental Compliance
Change E.3.2.1GHG emission reduction man- non-compliance incidents Management
E.3.2 Emission agement GHG Emission Reduction Actions
reduction
management E.3.2.2 GHG emission reduction GHG Emission Reduction Actions
E.3.3.1 Participation in the carbon
emission trading market Not Applicable
E.3.3 Environmen- E.3.3.2 Participation in the energy
tal rights trading rights water rights and pollution rights Not Applicabletrading markets Social
E.3.3.3 Participation in green electricity
trading Not Applicable
E.3.4Climate risk
management E.3.4.1 Climate risk management
Climate-Related Risks Opportunities
and Financial Impacts Primary Secondary Tertiary Indicators Location
E.4.1Impact Indicators Indicators
of production Rooted in Communities Committed to
E.4 Biodiversity services and E.4.1.1 Impacts of production services and products on biodiversity Ecosystem and Biodiversity Protection S1.1.1 Corporate recruitment policy and Cultural Heritageproducts on implementation Human Rights Protection
biodiversity S1.1 Employee Employee Development
E.5.1Setting recruitment and Human Rights Protection
low-carbon E.5.1.1 Setting low-carbon employment S1.1.2 Employee structure Data Overview
development development goals and strategic Climate Strategy
goals and strategic measures S1.1.3 Prohibition of child labor and Supply Chain Security
measures forced labor Human Rights Protection
E.5.2.1 Water resource management Usage of Water Resources S1.2.1 Compensation philosophy and Human Rights ProtectionS1 Employee policy Employee Development
E.5 Measures for
Resource and E.5.2Resource
Rights
management mea- E.5.2.2 Material use management
GHG Emission Reduction Actions Supply Chain Security
Environmental Circular Economysures S1.2.2 Working hours and rest and
Human Rights Protection
Management Employee DevelopmentE.5.2.3 Energy use and energy efficiency GHG Emissions Management S1.2 Employee leave
Systems management GHG Emission Reduction Actions compensation and
Occupational Health and Safety
Energy Usage benefits Data Overview
E.5.3 Monitoring
statistical reporting S1.2.3 Compensation and benefits Employee Development
and assessment E.5.3.1 Monitoring statistical reporting
system for energy- and assessment system for energy-
GHG Emission Reduction Actions
saving and carbon reduction Energy Usage
S1.2.4 Democratic management of
employees Human Rights Protectionsaving and carbon
reduction
145 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 148
Primary Secondary Tertiary Indicators Location Primary Secondary Indicators Indicators Tertiary Indicators LocationIndicators Indicators
S1.3.1 Employee occupational health
and safety management Occupational Health and Safety
S3.2.1 Supply chain management
policies and measures Supply Chain Security
S1.3.2 Occupational safety risk S3 Supply Chain Occupational Health and Safety Safety and Man- S3.2 Supply chain S3.2.2 Supply chain security assurance
S1.3 Employee management agement management and emergency plan
Supply Chain Security
health and safety S1.3.3 Response to safety incidents Occupational Health and Safety S3.2.3 Major risks and impacts of sup-and work-related injuries ply chain Supply Chain Security
S1.3.4 Employee support and assis- Occupational Health and Safety
tance Employee Development S4.1 Tax payment S4.1.1 Tax payment 2024 Sustainable Development Impact
S1.4.1Employee motivation and pro- Human Rights Protection S4.2.1 Policies and measures for
motion policy Employee Development participating in local community
Rural Revitalization and Social
S4.2 Community
Supply Chain Security construction
Contributions
S1 Employee co-building
Rights S1.4 Employee Responsible Marketing S4.2.2 Contribution and impact on the Rural Revitalization and Social
development and S1.4.2 Employee education and Human Rights Protection local community Contributions
training training Employee Development
Occupational Health and Safety S4.3.1 Policies and measures for partic-
Caring for Children Lifting Their Dreams
ipating in social welfare activities Care to Share Aware through Public
S1.4.3 Employee career planning and Welfare
job change support Employee Development Caring for Children Lifting Their Dreams
S1.5.1 Employee satisfaction survey Not available in this report S4.3 Social welfare
S4.3.2 Investment and effectiveness in Care to Share Aware through Public
activities participating in social welfare activities WelfareData Overview
S1.5 Employee Rooted in Communities Committed to
satisfaction S1.5.2 Labor disputes Not available in this report S4 Social
Contributions S4.3.3 Development of barrier-free Cultural Heritage
living environment Care to Share Aware through Public
S1.5.3 Employee turnover Human Rights Protection Welfare
S2.1.1 Production standard manage- Suppliers and Clients Industrial Revitalization and Rural
ment policies and measures Occupational Health and Safety S4.4.1 Industrial transformation Development
Supporting Industry Development
S2.1.2 Quality management Safety and Quality of Products and Industrial Revitalization and Rural
S2.1 Product safe- Services S4.4.2 Rural revitalization and Developmentty and quality regional collaborative development Rooted in Communities Committed to S2.1.3 Product recall and withdrawal Not available in this report S4.4 National strat- Cultural Heritage
egy response Data OverviewS2.1.4Adverse events related to prod-
ucts or services Social S4.4.3 Belt and Road Initiative and Supporting Industry Development
overseas responsibility performance Data Overview
S2.2.1 Customer satisfaction Safety and Quality of Products and Services Suppliers and ClientsS4.4.4 Industry-specific features and Industrial Revitalization and Rural
S2.2.2 Customer complaints and Safety and Quality of Products and other social responsibility performance DevelopmentS2 Product And Services Data Overview
Service Man- S2.2 Customer handling
agement service and rights
Data Overview
Safety and Quality of Products and
S2.2.3 Customer information and priva- Services
cy protection Data Security and Customer Privacy
Protection Governance
S2.3.1R&D and innovation manage-
ment system R&D and Innovation
S2.3.2 R&D investment R&D and Innovation Primary Secondary
S2.3 Innovation Indicators Indicators Tertiary Indicators Locationdevelopment
S2.3.3 Innovation achievements R&D and Innovation G1.1.1 Governance strategy formula-
Governance Structure and Mechanisms
S2.3.4 Intellectual property protec- tion
tion Intellectual Property Rights Protection G1 Governance G1.1.2 Governance strategy supervi-
G1.1Governance Governance Structure and Mechanisms
S3.1.1 Supplier selection and manage- Strategy and sion process
S3 Supply Chain ment Supply Chain SecurityS3.1 Supplier man- Organizational
strategy and pro-
cesses G1.1.3 Governance strategy approval Safety and Man- Structure Governance Structure and Mechanisms
agement agement S3.1.2 Number and distribution of
and review process
suppliers Data Overview G1.1.4 Leadership through
Party-building Not Applicable
147 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 150
Primary Secondary Primary Secondary
Indicators Indicators
Tertiary Indicators Location
Indicators Tertiary Indicators LocationIndicators
G1.2.1 Ownership responsibilities Governance Structure and Mechanisms
Risk and Compliance Management
Risk and Compliance Management G5.1.1 Compliant operation system Anti-Commercial Bribery and Anti-
G1.2Organizational G1.2.2Board of directors supervisory
Corruption
composition and board and management Governance Structure and Mechanisms
Risk and Compliance Management
G5.1 Compliant G5.1.2 Development of the compliance
functions organizational structure and functions
Anti-Commercial Bribery and Anti-
operation system
G1.2.3Appointment procedures and CorruptionG1 Governance
Strategy and composition of the board of directors Governance Structure and Mechanisms Risk and Compliance ManagementG5.1.3 Specific process of compliance
Organizational supervisory board and management G5 Compliant Anti-Commercial Bribery and Anti-review
Structure G1.3.1 Compensation plan for Operation Corruption
directors and supervisors Governance Structure and Mechanisms and Risk G5.2.1 Risk identification and
early warning Risk and Compliance Management
G1.3 Compensation G1.3.2 Transparency of the board's Management
management compensation Governance Structure and Mechanisms G5.2.2 Risk control and tracking Risk and Compliance Management
G1.3.3 Reasonableness of manage- G5.2 Risk
ment compensation Governance Structure and Mechanisms management Risk and Compliance Management
G5.2.3 Risk reporting and Anti-Commercial Bribery and Anti-
G2.1.1 Internal audit Risk and Compliance Management management Corruption
G2.1 Internal Anti-unfair Competition
control G2.1.2 Internal control structure Risk and Compliance Management Data Overview
mechanisms and processes Complaint Mechanism and
Whistleblower Protection
Anti-Commercial Bribery and Anti-
G2.2.1 Integrity construction system Corruption
G2 Standardized G2.2 standards Complaint Mechanism and
Governance Business integrity Whistleblower Protection
G2.2.2 Effectiveness of integrity con- Anti-Commercial Bribery and Anti-
struction measures Corruption
G2.3.1Fair competition system stan- Anti-unfair Competition
dards Complaint Mechanism and G2.3 Fair Whistleblower Protection
competition
G2.3.2 Effectiveness of fair competition
measures Anti-unfair Competition
G3.1.1 Investor relations management
strategy Investor Relations Management
G3.1 Investor rela- G3.1.2 Investor communication Investor Relations Management
tions management
G3.1.3 Establishment of the investor
relations department Investor Relations Management
G3 Investor G3.2.1 Shareholders' meetings Protection of Minority Shareholders'
Relations Rights and Interests
Management
and Shareholder G3.2 Shareholder
G3.2.2 Communications with Investor Relations Management
rights shareholders Communications with StakeholdersRights
G3.2.3 Shareholders’ right to Protection of Minority Shareholders'
information and decision-making
participation Rights and Interests
G3.3.1 Credit evaluation Not Applicable
G3.3 Creditor
rights
G3.3.2 Bond market compliance Not Applicable
G4.1.1 Financial information Information Disclosure Management
G4.1 Information disclosure
G4 Informa- disclosure system G4.1.2 Non-financial information
tion Disclosure Information Disclosure Managementdisclosure
Transparency G4.2 Quality of
information disclo- G4.2.1 Regular monitoring auditing Disclosed in 2024 annual report
sure and evaluation of disclosures
149 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 152
ESRS Index
European sustainability reporting standards (ESRS) Location/omission European sustainability reporting standards (ESRS) Location/omission
ESRS 2 General Disclosures ESRS E2 Pollution
Pollutant Discharge
BP-1 General basis for the preparation of sustainability statements About This Report E2-1 Policies related to pollution Waste Disposal
Environmental Compliance Management
BP-2 Disclosures in relation to specific circumstances Not Applicable Pollutant Discharge
E2-2 Actions and resources related to pollution Waste Disposal
GOV-1 The role of the administrative management and supervisory bodies Governance Structure and Mechanisms Environmental Compliance Management
GOV-2 Information provided to and sustainability matters addressed by the Governance Structure and Mechanisms
E2-3 Targets related to pollution Environmental
undertaking’s administrative management and supervisory bodies Risk and Compliance Management GHG Emissions Management
GOV-3 Integration of sustainability-related performance in incentive schemes Governance Structure and MechanismsOccupational Health and Safety E2-4 Pollution of air water and soil
Pollutant Discharge
Waste Disposal
Management of Material Matters Data Overview
GOV-4 Statement on due diligence Climate-Related Risks Opportunities and Financial GHG Emissions ManagementImpacts Pollutant Discharge
Supply Chain Security E2-5 Substances of concern and substances of very high concern Waste Disposal
Risk and Compliance Management Data Overview
GOV-5 Risk management and internal controls over sustainability reporting Climate-Related Risks Opportunities and Financial
E2-6 Anticipated financial effects from pollution-related impacts risks and Impacts opportunities Not Applicable
About C&D Inc.SBM-1 Strategy business model and value chain Climate Strategy ESRS E3 Water and Marine ResourcesSupply Chain Security
Safety and Quality of Products and Services
E3-1 Policies related to water and marine resources Usage of Water Resources
SBM-2 Interests and views of stakeholders Communications with Stakeholders
E3-2 Actions and resources related to water and marine resources Usage of Water Resources
Management of Material Matters
SBM-3 Material impacts risks and opportunities and their interaction with strategy Risk and Compliance Managementand business model Climate-Related Risks Opportunities and Financial E3-3 Targets related to water and marine resources Not Applicable
Impacts
Description of the processes to identify and assess material impacts risks E3-4 Water consumption
Usage of Water Resources
IRO-1 Data Overviewand opportunities Management of Material Matters
E3-5 Anticipated financial effects from water and marine resources-related Not Applicable
IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability
About This Report impacts risks and opportunities
Management of Material Matters
statement Appendix ESRS E4 Biodiversity and Ecosystems
ESRS E1 Climate Change
E4-1 Transition plan and consideration of biodiversity and ecosystems in strategy and business model Not Applicable
E1-1 Transition plan for climate change mitigation Climate Strategy
E4-2 Policies related to biodiversity and ecosystems Ecosystem and Biodiversity Protection
E1-2 Policies related to climate change mitigation and adaptation Climate Strategy
E4-3 Actions and resources related to biodiversity and ecosystems Ecosystem and Biodiversity Protection
E1-3 Actions and resources in relation to climate change policies Climate ResponseCircular Economy E4-4 Targets related to biodiversity and ecosystems Not Applicable
E1-4 Targets related to climate change mitigation and adaptation Environmental
E4-5 Impact metrics related to biodiversity and ecosystems change Not Applicable
E1-5 Energy consumption and mix Energy UsageData Overview E4-6 Anticipated financial effects from biodiversity and ecosystem-related risks and opportunities Not Applicable
E1-6 Gross Scopes 1 2 3 and Total GHG emissions GHG Emissions ManagementData Overview ESRS E5 Resource Use and Circular Economy
E1-7 GHG removals and GHG mitigation projects financed through carbon credits Not Applicable
GHG Emission Reduction Actions
E1-8 Internal carbon pricing Not Applicable E5-1 Policies related to resource use and circular economy
Energy Usage
Usage of Water Resources
Circular Economy
E1-9 Anticipated financial effects from material physical and transition
Management of Material Matters
risks and potential climate-related opportunities Climate-Related Risks Opportunities and Financial Impacts
151 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 154
European sustainability reporting standards (ESRS) Location/omission European sustainability reporting standards (ESRS) Location/omission
GHG Emission Reduction Actions Processes to remediate negative impacts and channels for value chain S2-3 Supply Chain Security
Energy Usage workers to raise concernsE5-2 Actions and resources related to resource use and circular economy
Usage of Water Resources Taking action on material impacts on value chain workers and approaches to
Circular Economy S2-4 managing material risks and pursuing material opportunities related to value Supply Chain Security
chain workers and effectiveness of those action
E5-3 Targets related to resource use and circular economy Environmental
Targets related to managing material negative impacts advancing positive
S2-5 Social
GHG Emission Reduction Actions impacts and managing material risks and opportunities
E5-4 Resource inflows Energy Usage
Usage of Water Resources ESRS S3 Affected Communities
Circular Economy
GHG Emission Reduction Actions S3-1 Policies related to affected communities Rural Revitalization and Social Contributions
E5-5 Resource outflows Energy Usage
Usage of Water Resources S3-2 Processes for engaging with affected communities about impacts Rooted in Communities Committed to Cultural Heritage
Circular Economy
S3-3 Processes to remediate negative impacts and channels for affected Anticipated financial effects from resource use and circular economy-related communities to raise concerns Rooted in Communities Committed to Cultural HeritageE5-6 impacts risks and opportunities Not Applicable Taking action on material impacts on affected communities and approaches
S3-4 to managing material risks and pursuing material opportunities related to Rural Revitalization and Social Contributions
ESRS S1 Own Workforce affected communities and effectiveness of those actions
S3-5 Targets related to managing material negative impacts advancing positive Social
S1-1 Policies related to own workforce Employees impacts and managing material risks and opportunitie
S1-2 Processes for engaging with own workforce and workers'representatives about impacts Human Rights Protection
ESRS S4 Consumers and End-users
S1-3 Processes to remediate negative impacts and channels for own workforce to Human Rights Protection S4-1 Policies related to consumers and end-users
Safety and Quality of Products and Services
raise concerns Data Security and Customer Privacy Protection
Taking action on material impacts on own workforce and approaches to S4-2 Processes for engaging with consumers and end-users about impacts
Safety and Quality of Products and Services
Data Security and Customer Privacy Protection
S1-4 managing material risks and pursuing material opportunities related to own Employees
workforce and effectiveness of those actions S4-3 Processes to remediate negative impacts and channels for consumers and Safety and Quality of Products and Servicesend-users to raise concerns Data Security and Customer Privacy Protection
S1-5 Targets related to managing material negative impacts advancing positive impacts and managing material risks and opportunities Social Taking action on material impacts on consumers and end-users and
S4-4 approaches to managing material risks and pursuing material opportunities Safety and Quality of Products and Services
S1-6 Characteristics of the undertaking's employees Human Rights Protection related to consumers and end-users and effectiveness of those actions
Data Security and Customer Privacy Protection
Data Overview
Human Rights Protection S4-5
Targets related to managing material negative impacts advancing positive
S1-7 Characteristics of non-employees in the undertaking's own workforce impacts and managing material risks and opportunities
Social
Data Overview
S1-8 Collective bargaining coverage and social dialogue Human Rights Protection
ESRS G1 Business Conduct
Data Overview
Human Rights Protection G1-1 Business conduct policies and corporate culture Business ConductS1-9 Diversity metrics Data Overview
G1-2 Management of relationships with suppliers Supply Chain SecurityEqual Treatment to Small and Medium-Sized Enterprises
S1-10 Adequate Wages Employee Development
G1-3 Prevention and detection of corruption and bribery Anti-Commercial Bribery and Anti-CorruptionComplaint Mechanism and Whistleblower Protection
S1-11 Social protection Employee Development
G1-4 Incidents of corruption or bribery Anti-Commercial Bribery and Anti-CorruptionData Overview
S1-12 Persons with disabilities Data Overview G1-5 Political influence and lobbying activities Not Applicable
S1-13 Training and skills development metrics Employee DevelopmentData Overview G1-6 Payment practices Equal Treatment to Small and Medium-Sized Enterprises
S1-14 Health and safety metrics Data Overview
S1-15 Work-life balance metrics Employee DevelopmentData Overview
S1-16 Remuneration metrics (pay gap and total remuneration) Not Applicable
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
S2-2 Processes for engaging with value chain workers about impacts Supply Chain Security
153 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 156
ISDS Index IFRS S2
IFRS S1 Core Elements Disclosure Recommendations Disclosure Placement
a)The governance body(s) (which can include a board committee or equivalent Governance Structure and Mechanisms
body charged with governance) or individual(s) responsible for oversight of
Core Elements Disclosure Recommendations Disclosure Placement Risk and Compliance Managementclimate-related risks and opportunities.Governance
a)The governance body(s) (which can include aboard committee or equivalent b)Management's role in the governance processes controls and procedures used Governance Structure and MechanismsGovernance Structure and Mechanisms
body charged with governance) or individual(s) responsible for oversight of to monitor manage and oversee climate-related risks and opportunities Risk and Compliance ManagementRisk and Compliance Management
sustainability-related risks and opportunities. a)The climate-related risks and opportunities that could reasonably be expected
Governance Management of Material Mattersto affect the entity's prospects within time horizons—short medium or long Climate-Related Risks Opportunities and
term whether the entity considers the risk to be a climate-related physical risk or
b) Management's role in the governance processes controls and procedures used Governance Structure and Mechanisms Financial Impactsclimate-related transition risk
to monitor manage and oversee sustainability-related risks and opportunities. Risk and Compliance Management
b)The current and anticipated effects of climate-related risks and opportunities Management of Material Matters
on the entity's business model and value chain and where in the entity's business Climate-Related Risks Opportunities and
a)The sustainability-related risks and opportunities that could reasonably be Management of Material Matters model and value chain climate-related risks and opportunities are concentrated Financial Impacts
expected to affect the entity's prospects within the time horizons—short medium Climate-Related Risks Opportunities and
or long term. Financial Impacts c)Information about how the entity has responded to and plans to respond Management of Material Matters
to climate-related risks and opportunities in its strategy and decision-making Climate-Related Risks Opportunities and
b)The current and anticipated effects of sustainability-related risks and including how the entity sets targets how the entity is resourcing and quantitative Management of Material Matters Financial Impacts
opportunities on the entity's business model and value chain and where in and qualitative information about the disclosed progress of plans.Climate-Related Risks Opportunities and
the entity's business model and value chain sustainability-related risks and Financial Impacts d)The quantitative and qualitative effects of those climate-related risks and
opportunities are concentrated opportunities on the entity's financial position financial performance and
c)How the entity has responded to and plans to respond to sustainability-related Strategy cash flows for the reporting period the climate-related risks and opportunities
risks and opportunities in its strategy and decision-making and the progress Management of Material Matters identified in paragraph 16(a) for which there is a significant risk of a material
against plans the entity has disclosed in previous reporting periods including Climate-Related Risks Opportunities and adjustment within the next annual reporting period to the carrying amounts Management of Material Matters
quantitative and qualitative information and trade-offs between sustainability- Financial Impacts of assets and liabilities reported in the related financial statements and how
Strategy related risks and opportunities that the entity considered. the entity expects its financial position financial performance and cash flows
d)The quantitative and qualitative effects of sustainability-related risks and to change over the short medium and long term given its strategy to manage
opportunities on the entity's financial position financial performance and climate-related risks and opportunities.cash flows for the reporting period and the sustainability-related risks and e)The entity's assessment of its climate resilience including the entity's assessment
opportunities identified for which there is a significant risk of a material for its strategy and business model the significant areas of uncertainty considered
adjustment within the next annual reporting period to the carrying amounts Management of Material Matters in the entity's assessment of its climate resilience and the entity's capacity to adjust
of assets and liabilities reported in the related financial statements and how or adapt its strategy and business model to climate change over the short medium Management of Material Matters
the entity expects its financial position financial performance and cash flows and long term. The entity shall use climate-related scenario analysis to assess its Climate-Related Risks Opportunities and
to change over the short medium and long term given its strategy to manage climate resilience and disclose how and when the climate-related scenario analysis Financial Impacts
sustainability-related risks and opportunities. was carried out including information about the inputs the entity used the key
assumptions the entity made in the analysis and the reporting period in which the
Management of Material Matters
e)The resilience of the entity's strategy and its business model to those climate-related scenario analysis was carried out.Climate-Related Risks Opportunities and
sustainability-related risks Financial Impacts a)The processes and related policies the entity uses to identify assess prioritize
and monitor climate-related risks including information about: the inputs and Management of Material Matters
a)The processes and related policies the entity uses to identify assess prioritize parameters the entity uses whether and how the entity uses climate-related Climate-Related Risks Opportunities and
and monitor sustainability-related risks including information about: the inputs Management of Material Matters scenario analysis to inform its identification of climate-related risks whether and Financial Impacts
and parameters the entity uses，whether and how the entity uses scenario Climate-Related Risks Opportunities and how the entity prioritizes climate-related risks how the entity assesses the nature Risk and Compliance Managementanalysis to inform its identification of sustainability-related risks whether and Financial Impacts likelihood and magnitude of the effects of those risks
how the entity prioritizes sustainability-related risks how the entity assesses the Risk and Compliance Management
Risk Management b)The processes the entity uses to identify assess prioritize and monitor climate-nature likelihood and magnitude of the effects of those risks. related opportunities including information about whether and how the entity Management of Material MattersClimate-Related Risks Opportunities and
b)The processes the entity uses to identify assess prioritize and monitor uses climate-related scenario analysis to inform its identification of climate-
Risk Management Financial Impactssustainability-related opportunities including: whether and how the entity Management of Material Matters related opportunities.uses scenario analysis to inform its identification of sustainability-related Climate-Related Risks Opportunities and
opportunities. Financial Impacts c)The extent to which and how the processes for identifying assessing Climate-Related Risks Opportunities and
prioritizing and monitoring climate-related risks and opportunities are integrated Financial Impacts
c)The extent to which and how the processes the entity uses to identify assess Climate-Related Risks Opportunities and into and inform the entity's overall risk management process. Risk and Compliance Management
prioritize and monitor sustainability-related risks and opportunities are integrated Financial Impacts a)The cross-industry metric categories of greenhouse gas emissions internal
into and inform the entity's overall risk management process. Risk and Compliance Management carbon prices the percentage of executive management remuneration recognized
in the current period that is linked to climate-related considerations capital
Environmental deployment towards climate-related risks and opportunities the amount and
GHG Emissions Management
a)Metrics required by an applicable IFRS Sustainability Disclosure Standard. Social percentage of assets or business activities vulnerable to climate-related risks and
Governance opportunities.b)Industry-based metrics that are associated with one or more particular business
b)Metrics the entity uses to measure and monitor sustainability-related risks or Environmental Metrics and Targets models activities or other common features that characterize participation in an GHG Emissions Management
Metrics and Targets opportunities and its performance in relation to that sustainability-related risk or Social industry
opportunity. Governance
Environmental c)The quantitative and qualitative climate-related targets the entity has set or it Environmental
c)Any targets the entity has set it is required to meet by law or regulation. Social is required to meet by law or regulation progress towards reaching the target Social
Governance information about its performance and each greenhouse gas emissions target. Governance
155 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 158
Independent Limited Assurance Report
157 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 160
159 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 162
161 Xiamen C&D Inc. 2024 Sustainability ReportEnvironmental Social Governance Appendix 164
163 Xiamen C&D Inc. 2024 Sustainability Report
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